2001

GUARANTY LAW

Guaranty Law of the People’s Republic of China




(Adopted at the 14th Meeting of the Standing Committee of the Eighth National People’s Congress on June 30, 1995
and promulgated by Order No. 50 of the President of the People’s Republic of China on June 30, 1995) 

Contents 

Chapter I    General Provisions 

Chapter II   Suretyship 

  Section 1  Suretyship and Surety 

  Section 2  Suretyship Contract and Modes of Suretyship 

  Section 3  Suretyship Liability 

Chapter III  Mortgage 

  Section 1  Mortgage and Mortgaged Property 

  Section 2  Mortgage Contract and Registration of Mortgaged Property 

  Section 3  Effect of Mortgage 

  Section 4  Enforcement of Mortgage Right  

  Section 5  Mortgage of Maximum Amount 

Chapter IV   Pledge 

  Section 1  Pledge of Movables  

  Section 2  Pledge of Rights 

Chapter V    Lien 

Chapter VI   Deposit 

Chapter VII  Supplementary Provisions 

Chapter I 

General Provisions 

Article 1 This Law is enacted with a view to promoting the accommodation of funds and the circulation of commodities, ensuring the
enforcement of creditor’s rights and developing the socialist market economy. 

Article 2 If creditors need to have their claims honoured by means of guaranty in such economic activities as loans, purchase and
sale of commodities, transportation of goods, and  contract for processing materials, they may establish guaranty according
to the provisions of this Law. 

The modes of guaranty as provided by this Law are suretyship, mortgage, pledge, lien and deposit. 

Article 3 In guaranty activities, the principles of equality, voluntariness, fairness, honesty and credibility shall be observed. 

Article 4 Where a third party provides a guaranty to creditor for a debtor, the third party may require the debtor to provide him
with a counter-guaranty. 

The provisions on guaranty in this Law shall apply to the counter-guaranty. 

Article 5 A guaranty contract is an ancillary contract of the principal contract. If the principal contract is null and void, the
guaranty contract shall be null and void, accordingly. Where it is otherwise agreed in the guaranty contract, such agreement shall
prevail. 

If a guaranty contract is determined to be null and void, the debtor, the guarantor or the creditor who is in default shall bear
civil liability according to their respective fault. 

Chapter II 

Suretyship 

Section 1 

Suretyship and Surety 

Article 6 Suretyship as used in this Law means an agreement pursuant to which a surety and a creditor agree that the surety shall
perform the obligation or bear the liability according to the agreement, when the debtor fails to perform his obligation. 

Article 7 A legal person, other organization or a citizen capable of assuming debts may act as a surety. 

Article 8 No State organ may act as a surety, except in the case of securing loans, for onlending, from a foreign government or an
international economic organization as is approved by the State Council. 

Article 9 Institutions such as schools, kindergartens and hospitals established for purposes of public welfare, and public organizations
may not act as a surety. 

Article 10 Branches and functioning departments of an enterprise as a legal person may not act as a surety. 

If a branch of an enterprise as a legal person has a power of attorney from the legal person, it may provide a suretyship within
the scope of authority. 

Article 11 No organization or individual may compel a bank or another financial institution or an enterprise to provide a suretyship
for another; a bank or another financial institution or an enterprise shall have the right to refuse to provide suretyship for another. 

Article 12 Where there are two or more sureties for one obligation, the sureties shall undertake suretyship liability according to
their proportion of suretyship agreed in the suretyship contract. In the absence of an agreement on the proportion of suretyship,
the sureties shall be jointly and severally liable. The creditor may demand any one of the sureties to undertake all suretyship liability,
and every surety shall have the obligation to ensure all of the creditor’s rights. The surety who has undertaken the suretyship liability
shall have the right of recourse against the debtor, or have the right to demand other sureties who are jointly and severally liable
to discharge the proportion of obligations which they should respectively assume. 

Section 2 

Suretyship Contract and Modes of Suretyship 

Article 13 A surety and a creditor shall conclude a suretyship contract in writing. 

Article 14 A surety and a creditor may conclude separate suretyship contracts for a single principal contract, or may reach an agreement
to conclude, to the extent of the maximum amount of claim, a single suretyship contract for loan contracts or for certain commodities
transaction contracts which successively occur in a given period of time. 

Article 15 A suretyship contract shall contain the following particulars: 

(1) the kind and amount of the principal claim guaranteed; 

(2) the time limit for the debtor to perform the obligation; 

(3) the modes of suretyship; 

(4) the scope of the suretyship guaranty; 

(5) the term of the suretyship; and 

(6) other matters the parties deem appropriate. 

If a suretyship contract does not contain all the particulars specified in the preceding paragraph, the particulars omitted 
may be added by amendment. 

Article 16 The modes of suretyship include: 

(1) general suretyship; 

(2) suretyship of joint and several liability. 

Article 17 A general suretyship refers to a suretyship contract wherein the parties agree that the surety shall undertake suretyship
liability in case the debtor defaults. 

A general suretyship allows the surety to refuse to undertake suretyship liability towards the creditor before a dispute over the
principal contract is tried or arbitrated and the obligations are not enforceable even after the debtor’s assets have been seized
according to law. 

A surety may not exercise the right provided in the preceding paragraph in any of the following circumstances: 

(1) The change of the debtor’s domicile makes it extremely difficult for the creditor to have the debtor’s obligation enforced; 

(2) A People’s Court suspends the enforcement proceedings due to its acceptance of the debtor’s bankruptcy case; or 

(3) The surety waives in writing the right provided in the preceding paragraph. 

Article 18 A suretyship of joint and several liability refers to a suretyship contract wherein the parties agree that the surety
and the debtor shall be jointly and severally liable. 

Where the debtor of a suretyship of joint and several liability defaults when the time limit for his performance of the obligation
provided in the principal contract expires, the creditor may demand that the debtor perform his obligation, or demand that the surety
undertake the suretyship liability within the scope of the suretyship agreement. 

Article 19 In the absence of an agreed or explicitly agreed mode of suretyship, the parties shall bear the suretyship liability following
the mode of a suretyship of joint and several liability. 

Article 20 The surety of a general suretyship or a suretyship of joint and several liability shall enjoy the debtor’s right of defense.
Where a debtor waives his right of defense against the obligation, the surety shall still enjoy a right of defense. 

The right of defense means a debtor’s right to exercise his right of claim on legal basis against the creditor when the creditor
seeks to enforce his rights. 

Section 3 

Suretyship Liability 

Article 21 The scope of the suretyship guaranty includes the principal claim and the interest thereof, default fine, compensation
for damage and expenses for enforcing the claim, unless the suretyship contract provides otherwise. 

In the absence of an agreed or explicitly agreed scope of the suretyship guaranty, the surety shall be liable for payment of all
the above costs. 

Article 22 If a creditor transfers, in accordance with law, his principal claim to a third party during the period of the suretyship,
the surety shall continue to be bound by the suretyship contract within the scope of the original suretyship guaranty, unless the
suretyship contract provides otherwise. 

Article 23 Where a creditor permits a debtor to transfer his debts to a third party during the period of the suretyship, a consent
in writing shall need to be obtained from the surety; the surety shall no longer be liable if the debts are transferred without his
prior consent in writing. 

Article 24 When a creditor and a debtor agree to alter the principal contract, they shall have to obtain the surety’s consent in
writing; the surety shall no longer be liable if the contract is altered without his prior consent in writing, unless the suretyship
contract provides otherwise. 

Article 25 If the surety of a general suretyship and the creditor have no agreement on the term of suretyship, the term of suretyship
shall be six months from the date of maturity of the principal debts. 

Where the creditor neither files a lawsuit against the debtor nor applies for arbitration during the term of suretyship agreed in
the contract or provided in the preceding paragraph, the surety shall be relieved of the suretyship liability; where the creditor
has filed a lawsuit or applied for arbitration, the provisions on the interruption of prescription shall apply to the term of suretyship. 

Article 26 Where the surety of a suretyship of joint and several liability and the creditor have no agreement on the term of suretyship,
the creditor shall, within six months from the date of maturity of the principal debts, have the right to demand that the surety
undertake suretyship liability. 

If the creditor does not demand that the surety undertake suretyship liability during the term of suretyship agreed in the contract
or provided by the preceding paragraph, the surety shall be relieved of the suretyship liability. 

Article 27 Where in accordance with the provisions of Article 14 of this Law, a surety provides a suretyship to a creditor’s claims
which successively occur but there is no agreement on the term of the suretyship, the surety may at any time notify in writing the
creditor of termination of the suretyship contract, nevertheless, the surety shall be liable for the creditor’s claims which vested
before the creditor receives the notice. 

Article 28 Where there are both suretyship and property security for the same claim, the surety shall be liable for the creditor’s
claim unsecured by the property security. 

If the creditor waives the property security, the surety shall be relieved of his suretyship liability to the extent of the creditor’s
waiver. 

Article 29 If a branch of an enterprise as a legal person concludes a suretyship contract with a creditor without the written authorization
of the enterprise or beyond the scope of the authorization, the suretyship contract shall be null and void or the part of the contract
that is beyond the scope of the authorization shall be null and void. If the creditor and the enterprise as a legal person are both
at fault, they shall bear their respective civil liabilities commensurate with their own fault; if the creditor is not at fault,
the enterprise as a legal person shall be civilly liable. 

Article 30 The surety shall not be civilly liable under any of the following circumstances: 

(1) the parties to the principal contract conspire to defraud the surety of a suretyship; and 

(2) the creditor to the principal contract resorts to deception or coercion to induce or cause the surety to provide a suretyship
against its will. 

Article 31 The surety, after his assumption of the suretyship liability, shall be enpost_titled to recourse against the debtor. 

Article 32 If the creditor does not seek to enforce his claim after a People’s Court’s acceptance of the debtor’s bankruptcy case,
the surety may participate in the distribution of the bankruptcy property and exercise his right of recourse in advance. 

Chapter III 

Mortgage 

Section 1 

Mortgage and Mortgaged Property 

Article 33 Mortgage as used in this Law means that the debtor or a third party secures the creditor’s rights with property listed
in Article 34 of this Law without transference of its possession. If the debtor defaults, the creditor shall be enpost_titled to convert
the property into money to offset the debts or have priority in satisfying his claim from the proceeds of auction or sale of the
property in accordance with the provisions of this Law. 

The debtor or the third party specified in the preceding paragraph is the mortgagor, the creditor is the mortgagee, and the property
provided as security is the mortgaged property. 

Article 34 The following property may be mortgaged: 

(1) houses and other things firmly fixed on the land which are owned by the mortgagor; 

(2) machines, means of transport and other property owned by the mortgagor; 

(3) the land-use right to the State-owned land, State-owned houses and other things firmly fixed on the land which the mortgagor
is enpost_titled to dispose of according to law; 

(4) State-owned machines, means of transport and other property which the mortgagor is enpost_titled to dispose of according to law; 

(5) the land-use right to barren hills, barren gullies, barren hillocks, waste flood land and other unreclaimed land contracted by
the mortgagor according to law and consent for the mortgage of such right is obtained from the party granting the contract; and 

(6) other property that may be mortgaged according to law. 

A mortgagor may at the same time mortgage all the property listed in the preceding paragraph. 

Article 35 The amount of a claim secured by a mortgagor shall not exceed the value of his mortgaged property. 

If the value of the mortgaged property exceeds that of the claim secured, the surplus may be mortgaged again, but not in excess of
the surplus. 

Article 36 Where houses on State-owned land acquired in accordance with law are mortgaged, the land-use right to the State-owned
land occupied by the houses shall be mortgaged at the same time. 

Where the land-use right to State-owned land acquired by means of granting is mortgaged, the houses on the State-owned land shall
be mortgaged at the same time. 

The land-use right to the land used by a township (town) or village enterprise may not be mortgaged separately. Where factories and
other buildings of township (town) or village enterprises are mortgaged, the land-use right to the land occupied by such buildings
shall be mortgaged at the same time. 

Article 37 The following property may not be mortgaged: 

(1) ownership of the land; 

(2) the land-use right to the land owned by the collectives such as cultivated land, house sites, private plots and private hills,
with the exception of those provided in sub-paragraph (5) of Article 34 and sub-paragraph (3) of Article 36 of this Law; 

(3) educational facilities, medical and health facilities of schools, kindergartens, hospitals and other institutions or public organizations
established in the interest of the public and other facilities in the service of public welfare; 

(4) property in relation to which the ownership or the right of use is unknown or disputed; 

(5) property sealed up, distrained or placed under surveillance in accordance with law; or 

(6) other property which may not be mortgaged as prescribed by law. 

Section 2 

Mortgage Contract and Registration of Mortgaged Property 

Article 38 A mortgagor and a mortgagee shall conclude a mortgage contract in writing. 

Article 39 A mortgage contract shall include the following particulars: 

(1) the kind and amount of the principal claim secured; 

(2) the term in which the debtor performs his obligation; 

(3) the name, quantity, quality, condition, location, ownership or ownership of the right to the use of the mortgaged property; 

(4) the scope of the guaranty of mortgage; and 

(5) other matters the parties deem necessary to include in the contract. 

If a mortgage contract does not include all the particulars specified in the preceding paragraph, the omissions may be added by amendment. 

Article 40 In concluding a mortgage contract, the mortgagor and the mortgagee may not stipulate that the ownership of the mortgaged
property shall be transferred to the creditor in case the mortgagee’s claim is not satisfied after maturity of the debt. 

Article 41 Where a party mortgages property provided for in Article 42 of this Law, he shall register the mortgaged property, and
the mortgage contract shall become effective as of the date of registration. 

Article 42 The departments responsible for the registration of mortgaged property are as follows: 

(1) the land administration departments which verify and issue certificates evidencing the land-use right if the land-use right to
the land to which nothing is firmly attached is mortgaged; 

(2) the departments designated by local people’s governments at or above the county level, if urban real estates or factories and
other buildings of township (town) or village enterprises are mortgaged; 

(3) the forestry administration departments at or above the county level, if forest trees are mortgaged; 

(4) the registration departments for means of transport, if aircraft, ships and vehicles are mortgaged; or 

(5) the administrative departments of industry and commerce in the place where the property  is located,  if the equipment
and other movables of enterprises are mortgaged. 

Article 43 Where a party mortgages other property, he may, of his own will, register the mortgaged property, and the mortgage contract
shall become effective as of the date of execution. 

If a party does not register the mortgaged property, he may not defend against the claims of third party. If a party intends to register
the mortgaged property, the notary department in the place where the mortgagor resides shall be the registration department. 

Article 44 To register the mortgaged property, a party shall submit to the registration department the following documents or their
duplicates: 

(1) the principal contract and the mortgage contract; and 

(2) the certificates evidencing the ownership of or the use right to the mortgaged property. 

Article 45 Consulting, transcribing or duplicating the materials registered with the registration departments shall be permitted. 

Section 3 

Effect of Mortgage 

Article 46 The scope of guaranty of mortgage includes the principal debt and the interest thereof, default fine, compensation for
damage and expenses for enforcing the mortgage, unless otherwise provided in the mortgage contract. 

Article 47 If the mortgaged property is seized by a People’s Court because of the debtor’s failure to perform his obligation prior
to the maturity of the debt, the mortgagee shall, from the date of seizure, be enpost_titled to collect the natural fruits severed from
the mortgaged property and the legal fruits which the mortgagor may collect from the mortgaged property. If the mortgagee fails to
notify the person who has the obligation to pay legal fruits of the fact that the mortgaged property is seized, the mortgagee’s right
shall not extend to such fruits. 

The fruits provided for in the preceding paragraph shall first be used to offset the expenses for collecting the fruits. 

Article 48 If a mortgagor mortgages leased property, he shall notify the lessee of the fact in writing, and the original contract
of lease continues in effect. 

Article 49 If a mortgagor transfers mortgaged property already registered during the period of mortgage, he shall notify the mortgagee
and inform the transferee that the transferred property is mortgaged; if the mortgagor fails to notify the mortgagee or inform the
transferee of the fact, the transfer shall be null and void. 

If the proceeds expected from the transfer of the mortgaged property are evidently less than its value, the mortgagee may demand
that the mortgagor provide an additional guaranty; if the mortgagor fails to provide the additional guaranty, then he may not transfer
the mortgaged property. 

The proceeds which the mortgagor obtains from the transfer of the mortgaged property shall first be used to liquidate the claim secured
by the mortgage or it shall be deposited with a third party agreed upon by the mortgagor and the mortgagee. If the proceeds exceed
the claim, the balance shall belong to the mortgagor; if the proceeds do not cover the claim, the difference shall be paid by the
debtor. 

Article 50 The right of mortgage may not be separated from the creditor’s rights and transferred singly, nor used to secure other
creditors’ rights. 

Article 51 Where a mortgagor’s acts are likely to cause the value of the mortgaged property to decline, the mortgagee shall be enpost_titled
to demand that the mortgagor cease and deist from such acts. Where the value of the mortgaged property has declined, the mortgagee
shall be enpost_titled to demand that the mortgagor restore the original value of the mortgaged property or provide security corresponding
to the amount of the lost value. 

If the mortgagor is not responsible for the decline in the value of the mortgaged property, the mortgagee may only demand that the
mortgagor provide security to cover the loss resulting from the decline in value. The part of the mortgaged property whose value
has not declined shall continue to serve as guaranty for the creditor’s right. 

Article 52 The right of mortgage shall co-exist with the creditor’s right secured. If the creditor’s right lapses, the right of mortgage
shall also lapse. 

Section 4 

Enforcement of Right of Mortgage 

Article 53 The mortgagee, who is not paid at the maturity of the obligation, may, through agreement with the mortgagor, be paid out
of the proceeds from the conversion of the mortgaged property or from the auction or sale of the mortgaged property; if they fail
to reach an agreement, the mortgagee may bring a lawsuit in a People’s Court. 

If the proceeds from the conversion of the mortgaged property or the proceeds from the auction or sale thereof exceed the claim,
the balance shall be returned to the mortgagor; if the proceeds do not cover the claim, the difference shall be paid by the debtor. 

Article 54 Where the same property is mortgaged to two or more creditors, the proceeds from the auction or sale of the mortgaged
property shall be used for liquidation according to the following provisions: 

(1) Where a mortgage contract takes effect with its registration, the liquidation shall be made in the order of the time of registration
of the mortgaged property; if the registration is in the same order, the liquidation shall be made according to the respective proportions
of the claims; 

(2) Where a mortgage contract takes effect on the date of its execution and the mortgaged property is registered, the liquidation
shall be made according to the provisions of sub-paragraph (1) of this Article; if the mortgaged property is not registered, the
liquidation shall be made in the order of the effective dates of the contracts; if the order of the effective dates is the same,
the liquidation shall be made according to the respective proportions of the claims. The claim secured by registered mortgage shall
be satisfied prior to the claim secured by unregistered mortgage. 

Article 55 After the execution of a contract in which urban real estate is mortgaged , the newly-built houses on the land shall not
be included in the mortgaged property. Where it is necessary to auction the mortgaged real estate, the newly-built houses on the
land may be auctioned, according to law, together with the mortgaged property, but the mortgagee shall have no right to enjoy the
priority of having his claim satisfied with  the proceeds from auction of the newly-built houses. 

Where the land-use right to contracted barren hills is mortgaged or the land-use right to the land occupied by the factories and
other buildings of a township (town) or  village enterprise is mortgaged in accordance with the provisions of this Law, the
collective ownership and the uses of the land may not be altered without following the legal procedure after enforcement of the right
of  mortgage . 

Article 56 The mortgagee shall be enpost_titled to the priority of having his claim satisfied with the proceeds from auction of the land-use
right to the allocated State-owned land after payment of the granting fees for the land-use right. 

Article 57 The third party who provides guaranty of mortgage for the debtor shall have the right of recourse against the debtor after
enforcement of the right of mortgage by the mortgagee. 

Article 58 The right of mortgage shall lapse due to loss or destruction of the mortgaged property. The compensation obtained for
the loss or destruction shall be used as the mortgaged property. 

Section 5 

Mortgage of Maximum Amount 

Article 59 A mortgage of maximum amount as used in this Law means that the mortgaged property shall be used to secure the creditor’s
claims which occur successively during a given period of time and to the extent of the total amount of the claims, as agreed upon
between a mortgagor and a mortgagee. 

Article 60 A loan contract may be accompanied by a contract of mortgage of maximum amount. 

The contract executed by a creditor and a debtor for the continuous transaction of a specific commodity in a given period of time
may be accompanied by a contract of mortgage of maximum amount. 

Article 61 The creditor’s right to the principal contract secured by a mortgage of maximum amount may not be transferred. 

Article 62 The provisions of this section plus other provisions of this Chapter shall apply to mortgage of maximum amount. 

Chapter IV 

Pledge 

Section 1 

Pledge of Movables 

Article 63 Pledge of movables as used in this Law means that the debtor or a third party transfers the possession of his movables
to the creditor as a security for debt. If the debtor defaults, the creditor shall, in accordance with the provisions of this Law,
be enpost_titled to convert the property into money as payment of the debt or enjoy priority of having his claim satisfied with the proceeds
of auction or sale of the pledged property. 

The debtor or the third party mentioned in the preceding paragraph shall be the pledgor, the creditor shall be the pledgee, and the
movables transferred shall be the pledged property. 

Article 64 A pledgor and a pledgee shall conclude a pledge contract in writing. 

A pledge contract shall become effective upon the delivery of the pledged property to the possession of the pledgee. 

Article 65 A pledge contract shall include the following particulars: 

(1) the kind and amount of the principal debt secured; 

(2) the time limit for the debtor to perform his obligation; 

(3) the name, quantity, quality and condition of the pledged property; 

(4) the scope of the guaranty of pledge; 

(5) the time for delivering the pledged property; and 

(6) other matters the parties deem necessary to include in the contract. 

If a pledge contract does not contain all the particulars specified in the preceding paragraph, the omissions may be added by amendment. 

Article 66 A pledgor and a pledgee may not stipulate in the contract that ownership of the pledged property shall be transferred
to the pledgee if the obligation is not discharged at its maturity. 

Article 67 The scope of guaranty of pledge includes the principal claim  and the interest thereof, default fine, the compensation
for damage, the storage charges and the cost of enforcing the right of the pledge. If otherwise provided for in the pledge contract,
the provisions there shall apply. 

Article 68 The pledgee shall be enpost_titled to collect the fruits derived from the pledged property. If otherwise provided for in the
pledge contract, the provisions there shall apply. 

The fruits mentioned in the preceding paragraph shall first be used to pay the expenses for collecting the fruits. 

Article 69 The pledgee shall have the obligation to maintain the pledged property in good condition. The pledgee shall be civilly
liable for the loss or destruction of or damage to the pledged property resulting from his negligence in storage. 

Where the pledgee is unable to maintain the pledged property in good condition and may thus cause loss or destruction of or damage
to the pledged property, the pledgor may demand that the pledgee have the pledged property deposited, or demand that his obligation
be discharged in advance and the pledged property returned. 

Article 70 Where there is a possibility for the pledged property to perish or for its value to obviously decline to a point sufficient
to impair the rights of the pledgee, the pledgee may demand that the pledgor provide additional security in like amount. If the pledgor
refuses to provide the additional security, the pledgee may auction or sell the pledged property, and conclude an agreement with
the pledgor that the proceeds from the auction or sale shall be used to pay in advance the debt secured or be deposited with a third
party as agreed upon with the pledgor. 

Article 71 Where the debtor performs his obligation at its maturity, or where the pledgor pay

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON PROBLEMS CONCERNING PRECEDING NAMES OF COMPANIES WITH THE WORD “CHINA” OR THE LIKE

Category  ADMINISTRATION FOR INDUSTRY AND COMMERCE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-05-29 Effective Date  1995-05-29  


Circular of the General Office of the State Council on Problems Concerning Preceding Names of Companies With the Word “China” or
the Like

(May 29, 1995)

    In order to standardize and strengthen the administration of names of
companies, according to decision of the State Council, the present Circular
is hereby issued as follows:

    From now on, names of companies (including other various economic
entities) to be set up, except those established according to the decision
of the State Council, shall not be preceded by the words of “China”,
“Chinese”, “All-China”, “National” or the like.






PEOPLE’S POLICE LAW

People’s Police Law of the People’s Republic of China

(Adopted at the 12th Meeting of the Standing Committee of the Eighth National People’s Congress on February 28, 1995
and promulgated by Order No. 40 of the President of the People’s Republic of China on February 28, 1995) 

Contents 

Chapter I     General Provisions 

Chapter II    Functions and Powers 

Chapter III   Obligations and Discipline 

Chapter IV    Organization and Administration 

Chapter V     Guarantee for Performance of Police Duties 

Chapter VI    Supervision over Law Enforcement 

Chapter VII   Legal Responsibility 

Chapter VIII  Supplementary Provisions 

Chapter I 

General Provisions 

Article 1 The present Law is enacted in accordance with the Constitution for the purpose of safeguarding State security, maintaining
public order, protecting the lawful rights and interests of citizens, strengthening the building of the contingent of the people’s
police, strictly administering the police, enhancing the quality of the people’s police, ensuring the people’s police’s exercise
of their functions and powers according to law, and ensuring the smooth progress of reform, opening up and the socialist modernization
drive. 

Article 2 Tasks of the people’s police are to safeguard State security, maintain public order, protect citizens’ personal safety
and freedom and their legal property, protect public property, and prevent, stop and punish illegal and criminal activities. 

The people’s police consist of policemen working in public security organs, State security organs, prisons and organs in charge of
reeducation through labor, as well as judicial policemen working in the People’s Courts and the People’s Procuratorates. 

Article 3 People’s policemen must rely on the support of the masses, keep close ties with them, listen attentively to their comments
and suggestions, accept their supervision, safeguard their interests, and serve them whole-heartedly. 

Article 4 People’s policemen must take the Constitution and laws as the guiding principles for their activities, be devoted to their
duties, be honest and upright and highly disciplined, obey orders, and enforce  laws strictly. 

Article 5 People’s policemen, when carrying out their duties according to law, shall be protected by law. 

Chapter II 

Functions and Powers 

Article 6 The people’s policemen of public security organs shall, in accordance with the division of responsibilities, perform the
following duties according to law: 

(1) to prevent, stop and investigate illegal and criminal activities; 

(2) to maintain public order and stop acts that endanger public order; 

(3) to ensure traffic safety, maintain traffic order and deal with traffic accidents; 

(4) to organize and carry out fire prevention and control and supervise routine fire protection; 

(5) to control firearms and ammunition, and keep under surveillance  knives, inflammables, explosives, deadly poisons, radioactive
materials and other dangerous articles; 

(6) to administer special trades and professions as provided by laws and regulations; 

(7) to serve as bodyguards for persons specially designated by the State and protect important places and installations; 

(8) to keep under control assemblies, processions and demonstrations; 

(9) to administer affairs of household registration, citizens’ nationality, and entry into and exit from the territory, and handle 
matters concerning aliens’ residence and travel within the territory of China; 

(10) to maintain public order along the border (frontier) areas; 

(11) to execute criminal punishment with respect to criminals sentenced to public surveillance, criminal detention, or deprived of
political rights and criminals serving sentences outside prison, and to exercise supervision over and inspection of  criminals
who are granted suspension of execution or parole; 

(12) to supervise and administer the work of protecting the computer information system; 

(13) to guide and supervise the work of security in State organs, public organizations, enterprises, institutions, and major construction
projects; and guide mass organizations such as public security committees in their work of maintaining public order and preventing
crime; and 

(14) other duties as stipulated by laws and regulations. 

Article 7 The people’s policemen of public security organs may, according to law, impose compulsory administrative measures or administrative
punishments against an individual or organization that violates the laws or regulations on the maintenance of public order or on
the administration of public security. 

Article 8 If a person seriously endangers public order or constitutes a threat to public security, the people’s policemen of public
security organs may forcibly take him away from the scene, detain him in accordance with law, or take other measures as provided
by law. 

Article 9 In order to maintain public order, the people’s policemen of  public security organs may, upon producing an appropriate
certificate, interrogate and inspect the person suspected of having violated  law or committed a crime. After interrogation
and inspection, the person may be taken to a public security organ for further interrogation upon approval of this public security
organ, if he or she is under any of the following circumstances: 

(1) being accused of a criminal offense; 

(2) being suspected of committing an offense on the scene; 

(3) being suspected of committing an offense and being of unknown identity; 

(4) carrying articles that are probably obtained illegally. 

The period of time for holding up the interrogated person shall be not more than 24 hours, counting  from the moment he or she
is taken into the public security organ. In special cases, it may be extended to 48 hours upon approval by the public security organ
at or above the county level, and the interrogation record shall be kept on file. If further interrogation of the person is approved,
his or her family or the organization in which he or she works shall be notified without delay. If further interrogation of the person
is not approved, he or she shall be released immediately. 

If, through further interrogation, a public security organ considers it necessary to detain the  interrogated person or adopt 
other compulsory measures against him or her according to law, a decision shall be made within the period of time as provided in
the preceding paragraph. If the decision cannot be made within the period of time as provided in the preceding paragraph, the interrogated
person shall be released immediately.   

Article 10 The people’s policemen of  public security organs may, in accordance with the relevant regulations of the State,
use weapons in case of  emergencies such as resisting arrest, rebellion, escaping from prison, grabbing firearms or other acts
of violence. 

Article 11 In order to stop serious illegal and criminal activities, the people’s policemen of  public security organs may 
use police implements in accordance with the relevant regulations of the State. 

Article 12 In order to investigate criminal activities, the people’s policemen of  public security organs may, according to
law, execute detention, search,  arrest or other compulsory measures. 

Article 13 The people’s policemen of  public security organs may, as required by  the urgent need of performing duties,
have priority in taking the means of public transport upon producing an appropriate certificate, and have the right of way in case
of a traffic block. 

As necessitated by investigation of a crime, a public security organ may, when necessary and in accordance with the relevant regulations
of the State, have priority in using the means of transport or communications, places or buildings belonging to a State organ, organization,
enterprise,  institution, or individual, and shall return them to the owner immediately after use and pay an appropriate fee,
and shall compensate for the loss, if there is any. 

Article 14 The people’s policemen of public security organs may take protective measures to restrain a mental patient who seriously
endangers public security or other people’s personal safety. If it is necessary to send the patient to a designated institution or
place for guardianship, the matter shall be reported for approval to the public security organ of a people’s government at or above
the county level, and his or her guardian shall be notified without delay. 

Article 15 The public security organs of the people’s governments at or above the county level may, for the purpose of preventing
and checking acts that seriously endanger public order,  restrict the passage or parking of people or vehicles  in certain
areas and within certain period of time, and may even exercise traffic control when necessary. 

The people’s policemen of public security organs may, in accordance with the provisions of the preceding paragraph, take appropriate
measures for traffic control. 

Article 16 As necessitated by investigation of a crime, public security organs may, in accordance with relevant regulations of the
State, take technical reconnaissance measures after strictly following approval formalities. 

Article 17 The public security organs of the people’s governments at or above the county level may, with the approval of the public
security organs at  higher levels and the people’s governments at the corresponding levels and in light of  the specific
circumstances, exercise on-the-spot control over emergent events that seriously endanger public order. 

The people’s policemen of  public security organs may, in accordance with the provisions of the preceding paragraph, take necessary
measures to disperse the crowds and forcibly take away from the scene or immediately detain the persons who refuse to obey. 

Article 18 The people’s policemen of State security organs, prisons and organs in charge of reeducation through labor and the judicial
policemen of the People’s Courts and the People’s Procuratorates shall exercise their functions and powers respectively in accordance
with the provisions of relevant laws and administrative rules and regulations. 

Article 19 People’s policemen shall, when in spare time running into emergencies that fall into the scope of their official duties,
perform their duties. 

Chapter III 

Obligations and Discipline 

Article 20 People’s policemen must fulfill the following obligations: 

(1) enforcing law and handling matters impartially;  

(2) playing an exemplary role in observing social ethics; 

(3) being courteous and polite in performing duties; and 

(4) showing respect for the customs and habits of the masses. 

Article 21 People’s policemen shall immediately come to the rescue when a citizen’s safety of the person or property is encroached
upon or is in other dangerous situations; they shall, upon request, help citizens in  settling their disputes; they shall handle
without delay cases reported by citizens. 

People’s policemen shall take an active part in rescue and relief work as well as in social welfare services. 

Article 22 People’s policemen may not commit any of the following acts: 

(1) to spread statements that damage the prestige of the State; to join illegal organizations; to take part in such activities as
assembly, procession  and demonstration; and to take part in strikes; 

(2) to divulge State secrets or secrets of police work;  

(3) to practise fraud, conceal facts of a case, cover up or connive at illegal and criminal activities; 

(4) to extort confession by torture or subject criminals to corporal punishment or maltreat them; 

(5) to unlawfully deprive other people  of, or restrict, their freedom of the person, or illegally search a person, his or her
belongings, residence or place. 

(6) to extort and racketeer, or to demand or accept bribes; 

(7) to beat up another or instigate him to do so; 

(8) to illegally impose punishment or collect charges; 

(9) to attend dinners or accept presents given by the party concerned or his or her agent; 

(10) to engage in profit-making activities or to be employed by any individual or organization; 

(11)to neglect his or her duty and fail to perform statutory obligations; or 

(12) other acts in violation of law and discipline. 

Article 23 People’s policemen  must be dressed according to relevant regulations, must wear the insignia of the people’s police,
or hold the certificate of the people’s police,  maintain serious and neat appearance and bearing and carry themselves with
dignity. 

Chapter IV 

Organization and Administration 

Article 24 The State, according to the nature, tasks and characteristics of the work of  the people’s police, prescribes its
organizational structure and post order. 

Article 25 The people’s police shall practise the system of police ranks according to law. 

Article 26 To be a people’s policeman, one must meet the following requirements: 

(1) to be a citizen who has reached  the age of 18; 

(2) to endorse the Constitution of the People’s Republic of China; 

(3) to have fine political and professional quality and good conduct; 

(4) to be in good health; 

(5) to have an educational background of senior middle school or above; 

(6) to become a people’s policeman out of his or her own volition. 

A person who is found in either of the following circumstances may not serve as a people’s policeman: 

(1) having been subjected to criminal punishment for commission of a crime or; 

(2) having been discharged from public employment. 

Article 27 People’s policemen must, as prescribed by the State, be recruited according to qualifications from among those who have
passed public examination and strict verification. 

Article 28 Persons who hold leading posts of the people’s police shall meet the following requirements: 

(1) possessing professional knowledge of law; 

(2) being experienced in political and judicial work and having the necessary capability of organization, administration and command; 

(3) having an educational background of  3-year college education or above; 

(4) having been trained in police schools or academies and having passed the examinations. 

Article 29 The State  promotes education for the people’s police, and carries out in a planned way among the people’s policemen
education and training in political ideology, the legal system, and police work. 

Article 30 The State, according to the nature, tasks and characteristics of the work of the people’s police, prescribes the term
of service for different jobs and the age limits for holding different posts. 

Article 31 Individuals or groups of the people’s policemen who have achieved outstanding successes or made significant contributions
in work shall be awarded. The awards include: Citation for Meritorious Deeds, Merit Citation Class III, Merit Citation Class II,
Merit Citation Class I, and a post_title of honour. 

The people’s policemen who have  received awards may, according to relevant regulations of the State, be promoted ahead of time
in police ranks and may also be given material rewards. 

Chapter V 

Guarantee for Performance of Police Duties 

Article 32 People’s policemen must execute the decisions and orders of their superior authorities. 

If a people’s policeman believes that a decision or an order is wrong, he may make comments or suggestions in accordance with relevant
regulations, but he may not suspend or alter the implementation of the decision or order;  if his suggestions are not adopted,
he must obey the decision or order; the superior authorities that made the decision or order shall be responsible for the consequences
of execution of such a decision or order. 

Article 33 A people’s policeman shall have the right to refuse to carry out the orders which go beyond the scope of duty of the people’s
police as provided by laws and regulations and shall, at the same time, report the matter to the organ at higher levels. 

Article 34 When people’s policemen perform their duties according to law, citizens and organizations shall give them support and
assistance. Acts of citizens and organizations to assist people’s policemen in performing their duties according to law shall be
protected by law. Whoever makes outstanding achievements in assisting people’s policemen to perform their duties shall be commended
and awarded. 

If a citizen or an organization suffers injuries, death or property losses in assisting people’s policemen to perform their duties,
compensations shall be made or pensions provided in accordance with the relevant regulations of the State. 

Article 35 Whoever refuses or obstructs  people’s policemen’s performance of  duties according to law by committing any
of the following acts shall be punished for violation of administration of public security: 

(1) to openly insult the people’s policemen who are performing duties; 

(2) to obstruct people’s policemen from investigating a case and obtaining evidence; 

(3) to refuse  the people’s policemen who are carrying out pursuit and capture, search, rescue or other tasks to enter the relevant
residences or places or obstruct them from doing so;  

(4) to put up obstacles deliberately for the police cars that are  carrying out urgent tasks such as providing rescue to people,
dealing with emergencies, pursuit and capture or guard duty; or 

(5) to commit other acts to refuse or obstruct people’s policemen’s performance of duties. 

Whoever commits any of the above-mentioned acts by resorting to violence or intimidation, if such act  constitutes a crime,
shall be investigated for criminal responsibility in accordance with  law. 

Article 36 The police insignia, uniforms and implements of the people’s police shall be manufactured under the unified supervision
of the department of public security under the State Council, and controlled by the said department jointly with other relevant State
organs. No other individual or organization may illegally manufacture or deal in them. 

The police insignia, uniforms, implements and certificates are  for the exclusive use of the people’s police, no other individual
or organization may possess or use them. 

If a person violates the provisions of the preceding two paragraphs, the police insignia, uniforms, implements and certificates 
illegally manufactured, dealt in, possessed or used shall be confiscated and the person shall be detained for a maximum of fifteen
days or given a disciplinary warning by a public security organ or may concurrently be given a penalty of not more than five times
the illegal gains; if a crime is constituted, the person shall be investigated for criminal responsibility in accordance with law. 

Article 37 The State  ensures the supply of funds needed by the people’s police. The funds shall be incorporated respectively
into the central and local financial budgets according to the principle of division of powers. 

Article 38 The facilities for telecommunications and training and the construction of infrastructures such as  traffic, fire
control,  police stations as well as prisons and organs in charge of  reeducation through labour shall be incorporated
into the plans of the people’s governments at various levels for capital construction and the overall planning for urban and rural
construction. 

Article 39 The State  strengthens the modernization of the people’s police equipment, and strive to popularize and apply the
advanced achievements in science and technology. 

Article 40 The people’s police shall practise the wage system of the State public servants, enjoy the police-rank allowances and
other allowances and subsidies, as well as the insurance and welfare benefits as prescribed by the State. 

Article 41 A people’s policeman who is disabled while on duty shall enjoy the same pension and preferential treatment of the State
as that of a serviceman who is disabled while on duty. 

If a people’s policeman dies at his post or dies of an illness, his family members shall enjoy the same pension and preferential
treatment of the State as that of a serviceman who dies at his post or dies of an illness. 

Chapter VI 

Supervision over Law Enforcement 

Article 42 The people’s policemen in performing their duties shall accept supervision by the People’s Procuratorates and administrative
supervisory organs in accordance with law. 

Article 43 The people’s police organs at higher levels shall exercise supervision over law enforcement by the police organs at lower
levels, and, if the former discovers that the dispositions or decisions made by the latter are wrong, the former shall annul or alter
them. 

Article 44 The people’s policemen in performing duties must conscientiously subject themselves to the supervision of the society
and citizens. The rules and regulations formulated by the people’s police organs that have a direct bearing on the interests of the
public shall be made known to the public. 

Article 45 In handling cases of public security, a people’s policeman shall withdraw if he is found in  any of the following
circumstances. The parties concerned and their statutory agents shall also have the right to demand his withdrawal. 

(1) being a party  or a close relative of a party in the case; 

(2) he himself or his close relatives have an interest in the case; 

(3) having other relationship with a party in the case,  which may  affect the impartial settlement of the case. 

The withdrawal as stipulated in the preceding paragraph shall be decided by  the public security organs concerned. 

The withdrawal of a people’s policeman in handling a criminal case shall be  governed by the Criminal Procedure Law. 

Article 46 A citizen or an organization shall have the right to make exposure of or accusation against a people’s policeman’s violation
of law or discipline to a people’s police organ, a People’s Procuratorate or an administrative supervisory organ. The organ that
accepts the exposure or accusation shall investigate and deal with the case without delay and notify the person or organization that
made the exposure or accusation of the conclusion of the case. 

No person may suppress or retaliate against the citizen or organization that makes an exposure  or accusation  according
to law. 

Article 47  Public security organs shall establish a supervisory system to supervise the enforcement of  laws and regulations
and observance of discipline by the people’s policemen of  public security organs. 

Chapter VII 

Legal Responsibility 

Article 48 A people’s policeman who commits any of the acts specified in Article 22 of this Law shall be given an administrative
sanction; if a crime is constituted, he shall be investigated for criminal responsibility according to law. 

The administrative sanctions  include: a disciplinary warning; a demerit recorded, a grave demerit recorded, demotion, dismissal
from the post and discharge from public employment. The people’s policeman who has been given an administrative sanction may be demoted
to a lower police rank or deprived of his police  rank in accordance with the relevant regulations of the State. 

With respect to a people’s policeman who violates discipline, when necessary, measures of suspending his performance of duties or
placing him in confinement may be taken. 

Article 49 If a people’s policeman who, in violation of the regulations, uses a weapon or police implements, thus constituting a
crime, he shall be investigated for criminal responsibility according to law; if  the case does not  constitute a crime,
he shall be given an administrative sanction in accordance with the law. 

Article 50 If a people’s policeman in performing duties infringes upon the lawful rights and interests of a citizen or an organization,
thus causing damage thereto, he shall pay damages in accordance with the Law of the People’s Republic of China on State Compensation
and the provisions of other relevant laws and regulations. 

Chapter VIII 

Supplementary Provisions 

Article 51 The Chinese People’s Armed Police Forces shall carry out the public security tasks given by the State. 

Article 52 This Law shall go into effect as of the date of promulgation. The Regulations of the People’s Republic of China on the
People’s Police promulgated on June 25, 1957 shall be annulled at the same time.

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




PROCEDURES GOVERNING THE DECLARATION AND STATISTICS ON INTERNATIONAL RECEIPTS AND PAYMENTS

Category  STATISTICS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-09-14 Effective Date  1996-01-01  


Procedures Governing the Declaration and Statistics on International Receipts and Payments



(Approved by the State Council on August 30, 1995, promulgated

by the People’s Bank of China on September 14, 1995)

    Article 1  These Procedures are formulated in accordance with the
Statistics Law of the the People’s Republic of China to improve
statistics on international receipts and payments.

    Article 2  The coverage of declaration and statistics on
international receipts and payments includes all economic
exchanges which occur between Chinese and non-Chinese residents.

    Article 3  The term “Chinese residents” as referred to in
these Procedures includes:

    (1) all natural persons who have resided within China over
one year except students and patients from foreign countries or
from the regions of Hong Kong, Macau and Taiwan and foreign staff
of foreign embassies or consulates in China and their families;

    (2) Chinese citizens staying abroad for a short duration
(less than one year), Chinese students studying abroad, Chinese
patients seeking medical treatment abroad and staff of Chinese
embassies or consulates and their families;

    (3) enterprises or institutions (including foreign investment
enterprises and foreign-capital financial institutions) with legal
person status established within China according to law and foreign
offices quartered in China by bodies corporate abroad (not including
offices quartered in China by international organizations nor
foreign embassies or consulates situated in China); and

    (4) Chinese governmental organs (including Chinese embassies
or consulates situated abroad), public organizations and army units.

    Article 4  These Procedures shall be applicable in all regions
within China, including bonded areas and bonded warehouses set up
within China.

    Article 5  The State Administration of Foreign Exchange Control
shall, pursuant to the procedures prescribed by the Statistics
Law of the People’s Republic of China, be responsible for
organizing the declaration and statistics on international
receipts and payments, exercising supervision and conducting
inspections, gathering, compiling and publishing statistics on
the status of international receipts and payments and
international investments, formulating and revising detailed
rules for the implementation of these Procedures and formulating
and issuing declaration and statistics forms of international
receipts and payments. Various relevant government departments
shall assist in the work concerning the declaration and statistics
on international receipts and payments.

    Article 6  The declaration and statistics on international
receipts and payments shall follow the principle of declaration
by those involved in the transaction and procedures shall be
adopted combining direct declaration with indirect declaration
and allowing for both declaration on a deal-after-deal basis and
declaration at regular intervals.

    Article 7  Chinese residents shall timely, accurately and
completely declare their international receipts and payments.

    Article 8  Chinese residents who engage in business transactions
with non-Chinese residents through a financial organization
situated in China shall, through the same financial organization,
declare the content of the transaction to the State
Administration of Foreign Exchange Control or to its branches.

    Article 9  Securities exchanges and securities registration
agencies that engage in external securities transactions for
themselves or as agents of clients shall declare to the State
Administration of Foreign Exchange Control or its branches the
receipts, payments, dividends and interest distribution of
such transactions.

    Article 10  Traders within China who conduct transactions in
futures or futures properties for themselves or as agents of
clients shall declare to the State Administration of Foreign
Exchange Control or its branches the receipts and payments
of such transactions.

    Article 11  Various financial organizations within China shall
declare directly to the State Administration of Foreign Exchange
Control or its branches the details of external transactions,
including external assets and liabilities, changes in assets and
liabilities, receipts and payments of relevant profits and interest,
receipts and payments of the external financial service and other
kinds of receipts and payments. The institutions shall also be
obligated to handle matters related to declarations through them
on international receipts and payments by Chinese residents.

    Article 12  Non-financial Chinese institutions who have opened
an account outside of China shall declare directly to the State
Administration of Foreign Exchange Control or its branches any
transactions they have made with non-Chinese residents through their
foreign account and shall report the balance of the account.

    Article 13  Foreign investment enterprises within China,
enterprises with direct investment abroad and other non-financial
organizations with external assets or liabilities shall declare
directly to the State Administration of Foreign Exchange Control
or its branches external assets or liabilities, changes in assets or
liabilities and receipts and payments for related profits, dividends
and interest.

    Article 14  The State Administration of Foreign Exchange Control
or its branches may conduct sample or general surveys of the state of
international receipts and payments.

    Article 15  The State Administration of Foreign Exchange Control
or its branches shall have the authority to examine and check the
contents of reports by Chinese residents. The declarer or relevant
agency or individual shall supply all data and convenience necessary
for such examinations and checks.

    Article 16  The State Administration of Foreign Exchange Control
and its branches shall rigorously maintain the confidence
of specific data declared and shall only utilize data for  
statistics on international receipts and payments. Statistical
staff for international receipts and payments may not supply any
agency or individual with any data in any form declared by the
declarer except that otherwise provided for by law.

    Article 17  Violation of these Procedures by Chinese residents
may be punished by the State Administration of Foreign Control or
its branches by a warning, notice of criticism or fine in light of
the seriousness of the offense.

    Article 18  If these Procedures are violated by various kinds of
financial institutions, the State Administration of Foreign
Exchange Control or its branches may, in light of the seriousness of
the offense, issue a warning, circulate a notice of criticism, impose
a fine or revoke the institution’s license for foreign exchange
business.

    Article 19  Any statistical staff for international receipts and
payments who violate the provisions of Article 16 of these
Procedures shall be punished by the State Administration of
Foreign Exchange Control or its branches with administrative
disciplinary measures.

    Article 20  The State Administration of Foreign Exchange Control
shall draw up detailed rules and regulations for the
implementation of the procedures governing declaration and
statistics on international receipts and payments in accordance
with these Procedures.

    Article 21  These Procedures shall come into effect as of the
date of January 1, 1996.






CIRCULAR OF THE STATE COUNCIL REGARDING THE REFORM AND READJUSTMENT OF IMPORT DUTY POLICIES (SUMMARY)

Category  CUSTOMS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-12-26 Effective Date  1995-12-26  


Circular of the State Council Regarding the Reform and Readjustment of Import Duty Policies (Summary)



(December 26, 1995)

    Since the Third Plenary Session of the Eleventh Central
Committee of the Chinese Communist Party, China has formulated a
series of preferential import duty policies in order to promote
the development of the national economy. Said policies have
played an important role in extending foreign trade, attracting
foreign capital and importing advanced technology. Along with the
continuous deepening of reform and opening up and the
progressive establishment of the socialist market economic
structure, contradictions between those policies and
international practices and the principle of fair competition in
a market economy have become more and more conspicuous. In recent
years, the State Council has verified and readjusted some
provisions concerning the exemption and reduction of import
duties, and has lowered the general level of import duties from
42 percent to 35.9 percent. However, the problems of high duties,
too many exemptions and reductions and a low tax base are still
prominent. Exemptions and reductions in duties and taxes for a
multitude of things have resulted in unfair competition between
different areas and enterprises, and are of no advantage in
assisting the transformation of the operating mechanisms of
state-owned enterprises or in helping the coordinated economic
development of different regions. The reform and readjustment of
import duty policies must be quickened by further lowering the
general level of import duties, canceling excessive and unfair
import duty exemptions and reductions, and formulating unified,
standard, fair and reasonable import duty policies according to
the needs of the socialist market economic structure and
international practices, in order that we can participate in
international competition and economic cooperation with a more
open attitude, and promote the development of the national
economy. Related problems are as follows:

    1. Lowering the General Level of Import Duties by a
Relatively Large Margin

    In accordance with the needs of China’s national economic
development and market demand, and in consideration of the
influence on central finance administration and the standing
production capacity of domestic industry, China’s general level
of import duties shall be lowered progressively to the average
level of developing countries on the premise of being
advantageous to the readjustment of industrial structure and the
rationalization of the customs duty structure. For that purpose,
China’s general level of import duties shall be lowered to 23
percent on April 1, 1996. The detailed program for lowering the
duties shall be put forward by the Tariff Policy Commission of
the State Council, and shall be promulgated and implemented by
the General Administration of Customs after being submitted to
and approved by the State Council.

    2. Customs Duties and Import-Related Taxes Shall Be Levied at
the Statutory Rates on All Imported Equipment and Raw and
Processed Materials

    (1) Starting from April 1, 1996, customs duties and import-
related taxes shall be levied at the statutory rates on all
equipment and raw and processed materials imported within the
total investment amount of newly approved and established
foreign-invested enterprises (including Chinese-foreign equity
joint ventures, Chinese-foreign contractual joint ventures and
foreign-capital enterprises). Foreign-invested enterprises
approved for establishment before April 1, 1996 may, within a
specified grace period, continue to enjoy the preferential
treatment of exemption from and reduction of customs duties and
import-related taxes, namely for equipment and raw and processed
materials imported for projects with a total investment of US$
30,000,000 or more (excluding any investment added after the
issue of this Circular) shall be handled in accordance with
existing provisions until December 31, 1997; equipment and raw
and processed materials imported for projects with a total
investment of less than US$ 30,000,000 shall be handled in
accordance with existing provisions until December 31, 1996. In
the event of failure to complete the implementation within the
specified grace period, an application for an extension may be
submitted through the Ministry of Foreign Trade and Economic
Cooperation. The Ministry of Finance shall, in conjunction with
the Ministry of Foreign Trade and Economic Cooperation, the
Tariff Policy Commission of the State Council, the State Planning
Commission, the State Economic and Trade Commission, the State
Administration of Taxation and the General Administration of
Customs, offer an opinion after consideration of the application,
and submit them to the State Council for approval. The grace
period may be extended with the approval of the State Council.

    (2) Starting from April 1, 1996, customs duties and import-
related taxes shall be levied at the statutory rates on all
equipment imported for newly approved technological
transformation projects. Imported equipment for technological
transformation projects which have been incorporated in a start-
up plan at the national or provincial level before April 1, 1996
may, within a specified grace period, continue to enjoy the
preferential treatment of exemption from and reduction of customs
duties and import-related taxes, namely that equipment imported
before December 31, 1996 for energy, communication or metallurgy
projects with a total investment of 50,000,000 yuan or more
(excluding investment added after the issue of this Circular) or
for light industry, textile or electronics projects with a total
investment of 30,000,000 yuan or more (excluding the investment
added after the issue of this Circular) shall be allowed a 50
percent reduction in duties and taxes; equipment imported before
December 31, 1996 for projects in the above two categories for
which total investment is less than 50,000,000 or 30,000,000 yuan
shall be allowed a 50 percent reduction in duties and taxes. In
the event of failure to finish the implementation within the
specified grace period, an application for an extension may be
submitted to the State Economic and Trade Commission. The Ministry
of Finance shall, in conjunction with the State Economic and Trade
Commission, the State Planning Commission, the Tariff Policy
Commission of the State Council, the State Administration of
Taxation and the General Administration of Customs, offer their
opinions after consideration of the application and submit them
to the State Council for approval. The grace period may be
extended with the approval of the State Council.

    (3) Starting from April 1, 1996, customs duties and import-
related taxes shall be levied at the statutory rates on all
equipment imported for major construction projects newly approved
by the State Council. Imported equipment for major construction
projects approved before April 1, 1996 shall be handled in
accordance with existing provisions.

    (4) Starting from April 1, 1996, customs duties and import-
related taxes shall be levied at the statutory rates on all goods
and materials imported by various special zones and areas
(including special economic zones, economic and technology
development areas, new and high technology development areas,
open coastal cities, coastal economic development zones, frontier
open cities, frontier economic cooperation zones, open riparian
cities and open inland cities which enjoy the same policies for
open coastal cities, state tourist and holiday zones, the
Shanghai Pudong New Zone and other various development zones).
With regard to goods and materials imported by special economic
zones and the Shanghai Pudong New Zone (both excluding foreign-
investment enterprises therein) for their own use, customs duties
and import-related taxes shall, according to the quotas approved
by the state, be handled in a manner of “collection first,
refunds after”, decreasing year by year for five years (from 1996
to 2000) of transition. Detailed measures shall be put forward
by the Ministry of Finance in conjunction with the Tariff Policy
Commission of the State Council, the State Planning Commission,
the State Economic and Trade Commission, the Special Economic
Zones Administrative Office of the State Council, the State
Administration of Taxation, the General Administration of Customs
and other relevant departments, and be implemented after being
approved by the State Council. With regard to the Suzhou
Industrial Township established under the agreement reached
between the governments of China and Singapore, related affairs
shall be handled in accordance with the provisions for special
economic zones and the Shanghai Pudong New Zone. As for the
Yangpu Economic Development Zone of Hainan Province, the tax
administration policies approved by the State Council concerning
bonded areas shall remain in force.

    (5) Starting from April 1, 1996, the provisions concerning
the exemption from and reduction of customs duties and import-
related taxes for goods imported in barter trade with neighboring
countries or for economic and technological projects in
cooperation with neighboring countries shall be canceled.
Preferential tax policies for frontier trade between inhabitants
on either side of the border and petty trade in the border areas
shall be formulated separately.

    (6) Starting from April 1, 1996, the provisions concerning
the exemption from and reduction of customs duties and import-
related taxes for processing equipment imported for processing
or compensation trade projects shall be canceled.

    3. Readjusting and Retaining Some Duty and Tax Exemption and
Reduction Provisions in Accordance with International Practices
and China’s Actual Situation

    (1) In accordance with the provisions of relevant
international conventions and in light of international
practices, provisions concerning the exemption or reduction of
customs duties and import-related taxes for imported scientific
and educational articles, special articles for disabled persons,
articles needed by foreign diplomatic missions and relevant
international organizations in China or by their personnel and
articles presented gratis by foreign governments or international
organizations shall be retained and readjusted appropriately.

    (2) Provisions already approved by the State Council
concerning the relationship between the domestic proportion of
cars or video camera recorders and the differential tax rates
shall be retained during the Ninth Five-Year Plan period.

    (3) Provisions concerning the exemption from and reduction of
customs duties and import-related taxes for equipment and
materials imported under projects for exploration and
exploitation of off-shore petroleum or natural gas shall be
retained during the Ninth Five-Year Plan period with appropriate
readjustments. With regard to the exploration and exploitation of
on-shore petroleum or natural gas in special areas with the
approval of the State Council, any necessary equipment or
materials which cannot be produced by domestic industry or cannot
be satisfied by a domestic equivalent, may be imported with an
exemption from customs duties and import-related taxes during the
Ninth Five-Year Plan period.

    (4) Provisions concerning the reduction of import-related
taxes for aircraft imported for civil aviation shall remain in
force during the Ninth Five-Year Plan period.

    (5) Provisions concerning the exemption from duties for
articles imported by Chinese foreign-residence personnel of
diplomatic establishments, students studying abroad, visiting
scholars, contract workers sent abroad, personnel aiding foreign
countries and crews of ocean-going ships for personal use shall
remain in force temporarily; personal articles imported by other
persons shall be handled in accordance with the unitary
provisions of the Customs starting from April 1, 1996.

    (6) Duty-free stores at ports of exit shall be retained.
Duty-free stores at ports of entry shall be retained until the
Measures of the Customs of the People’s Republic of China
Concerning the Supervision and Administration of Postal Articles
Entering or Leaving the Country and the Provisions of the Customs
of the People’s Republic of China Concerning the Administration
of Luggage and Articles Carried by Travelers Entering or Leaving
the Country are amended.

    (7) Provisions concerning the import duty exemption and
reduction in Articles 27, 28, 29 and 30 of the Regulations of the
People’s Republic of China on Import and Export Duties shall
remain in force.

    4. Provisions concerning the reduction of or exemption from
customs duties and import-related taxes other than those provided
in this circular shall all be canceled on April 1, 1996.

    The current reform and readjustment of import duty policies
are another significant move in the deepening of reform and
broadening of opening up. The State Council shall continue to
adopt positive measures to progressively bring about national
treatment to foreign-invested enterprises. The various localities
and departments must do their best with every aspect of related
work to ensure the strict implementation of this Circular.






CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE STRICT CONTROL ON TRANSFERENCE OF FOREIGN WASTE TO CHINA (SUMMARY)

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-11-07 Effective Date  1995-11-07  


Circular of the General Office of the State Council on the Strict Control on Transference of Foreign Waste to China (Summary)



(November 7, 1995)

    In recent years, some countries and regions, out of their own interests,
have been transferring pollution by exporting large quantities of waste by
various means and channels. In order to protect the environment, the Party
Central Committee and the State Council have repeatedly warned that it is
forbidden to consider China as a storehouse where foreign waste may be dumped
or piled. In spite of this ban, some units, in pursuit of profit, have
illegally imported harmful waste from abroad and have thus seriously
jeopardized the environment of China and impaired the health of the Chinese
people. Therefore, firm measures shall be adopted to stop such actions. A
circular is hereby issued on the basis of the decision of the State Council:

    1. The protection of the environment is one of the basic state polices of
the Chinese government. Governments at all levels and relevant departments
shall attach great importance to this policy, firmly implement the
instructions of the Party Central Committee and the State Council, strictly
enforce the law, strengthen practical administration over the import of
foreign waste, and forbid China to be considered as a storehouse where harmful
waste may be dumped or piled.

    2. Practical administration concerning the import of foreign waste shall
be strengthened. The import of foreign waste shall be administered in two
categories: first, waste that is forbidden to be imported; and second, waste
that can be used as a raw material but the import of which shall be under
strict control.

    (1) For waste that is forbidden to be imported, no unit or individual
shall be permitted to engage in the import or other business activities
involving such waste. All departments concerned shall strictly check on and
resolutely forbid the import of such waste.

    (2) Imports of waste that can be used as a raw material but the import of
which is under strict control shall be examined and approved exclusively by
the State Bureau of Environmental Protection; no other department or local
people’s government shall have this authority. The State Bureau of
Environmental Protection shall make strict inspections. The departments in
charge and the industrial and commercial administrations shall not permit the
enterprises concerned to deal in such imports or go through the registration
formalities without documents approved by the State Bureau of Environmental
Protection. Customs shall not permit such imports without approved documents.

    (3) For waste that can be used as a raw material but the import of which
is under strict control, The State Commodity Inspection Institution shall
include it in the directory of commodities requiring mandatory inspection and
shall conduct mandatory inspections. The State Administration for the
Inspection of Import and Export Commodities shall, in conjunction with the
State Bureau of Environmental Protection, work out the standards for mandatory
inspection as soon as possible (before the standards for inspection are issued
and implemented, the commodity inspection departments shall strengthen their
examinations and shall, in the event any problem is found, without delay
notify and transfer the case to the environmental protection departments and
customs for disposal).

    The provisional directory for the classification administration over the
import of waste shall be worked out and issued immediately by the State Bureau
of Environmental Protection in conjunction with the Ministry of Foreign
Economic Relations and Trade and the General Administration of Customs.

    3. For countries or regions that illegally transfer waste to China, the
departments concerned under the State Council shall act in close coordination
and make full use of domestic and international laws and regulations to
solemnly negotiate with said countries or regions in order to stop their
actions and demand the immediate transport of the waste back to the place of
origin.

    4. Units and individuals that illegally import waste shall be severely
punished in accordance with the respective duties of customs and the
departments of environmental protection, industry and commerce, foreign
economic relations and trade, and commodity inspection; those cases which
constitute crimes shall be transferred to judicial organs and prosecuted for
any criminal liability. Organs and concerned personnel that illegally approve
and permit the import of waste shall be subject to serious investigation and
handling.

    5. Units and individuals that evade taxes or gain export refunds by
cheating, once discovered, shall be severely punished in conformity with legal
provisions.

    6. Enterprises that have been engaged in importing, dealing in, or using
foreign waste shall be immediately cleaned up and rectified. Units that have
been illegally engaged in importing, dealing in, or using foreign waste that
has been prohibited to be imported shall be firmly banned by the industrial
and commercial administrations; units that have been engaged in importing,
dealing in, or using waste that can be used as a raw material but the import
of which shall be under strict control shall retroactively go through the
formalities of inspection and approval with the State Bureau of Environmental
Protection before the end of 1995; those who do not complete the formalities
by the deadline shall be forbidden by customs to import waste, shall be
deprived of the authority to import by the department of foreign economic
cooperation and trade, and shall have their business licenses revoked by the
industrial and commercial administration.

    7. The State Bureau of Environmental Protection shall take the lead in
organizing an allied investigative group with participation of the departments
concerned in order to strictly investigate and handle the illegal import of
waste and punish the law-breakers in conformity with legal provisions.
Vigorous propaganda and education shall be conducted, powerful public opinion
shall be aroused, and all social strength shall be relied on for supervision.

    8. The State Bureau of Environmental Protection shall, in conjunction with
the Ministry of Foreign Economic Cooperation and Trade and the General Office
of Customs, work out, issue, and implement as soon as possible specific
managerial methods for the import of waste.






INTERIM REGULATIONS CONCERNING THE PREVENTION AND CONTROL OF WATER POLLUTION WITHIN THE TERRITORY OF THE HUAIHE RIVER VALLEY

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-08-08 Effective Date  1995-08-08  


Interim Regulations Concerning the Prevention and Control of Water Pollution Within the Territory of the Huaihe River Valley



(Promulgated by Decree No.183 of the State Council of the

People’s Republic of China on August 8, 1995)

    Article 1  These Regulations are enacted for the purpose of
strengthening the prevention and control of water pollution
within the territory of the Huaihe River Valley, protecting and
improving water quality, safeguarding human health and ensuring
a water supply for people’s daily life and for production.

    Article 2  These Regulations shall apply to the prevention
and control of pollution of rivers, lakes, reservoirs, canals and
other surface water bodies within the territory of the Huaihe
River Valley.

    Article 3  The aim of the prevention and control of water
pollution within the territory of the Huaihe River Valley is: the
discharge of pollutants from industrial pollution sources within
the whole territory shall meet the discharge standards by 1997,
and by 2000 the quality of water in the major part of rivers,
lakes or reservoirs shall meet the demands stipulated in the
program for prevention and control of water pollution within the
territory of the Huaihe River Valley so as to clear the water in
Huaihe River.

    Article 4  The Leading Group for Protecting Water Resources
within the Territory of the Huaihe River Valley (hereinafter
referred to as “the Leading Group”) shall be responsible for
coordinating and settling any significant affairs concerning the
protection of water resources and the prevention and control of
water pollution within the territory of the Huaihe River Valley,
and for supervising and inspecting the work of prevention and
control of water pollution within the territory of the Huaihe
River Valley, and also for exercising other functions and powers
as the State Council may assign to it.

    The Office of the Leading Group shall be established in
Bureau of Protection of Water Resources within the Territory of
the Huaihe River Valley.

    Article 5  The people’s governments of Henan Province, Anhui
Province, Jiangsu Province and Shandong Province (hereinafter
referred to as “the four provinces”) shall be responsible, in
their respective regions, for the water environment quality
within the territory of the Huaihe River Valley, and must take
measures to realize their respective aims of prevention and
control of water pollution within the territory of the Huaihe
River Valley.

    The people’s governments of the four provinces shall resolve
and assign the task of harnessing the water pollution within the
territory of the Huaihe River Valley to related cities
(prefectures) or counties, sign goal-related responsibility
documents of prevention and control with related cities
(prefectures) or counties and ask them to fulfill assigned tasks
in a given time, and shall consider this job as an important part
in examining the achievements in related cadres’ official
careers.

    Article 6  The local people’s governments at or above the
county level within the territory of the Huaihe River Valley
shall regularly report to the standing committees of the people’s
congresses at the corresponding levels concerning the development
in prevention and control of water pollution in their
administrative areas within the territory of the Huaihe River
Valley.

    Article 7  The State shall carry out preferential and support
policies for the prevention and control of water pollution within
the territory of the Huaihe River Valley.

    Article 8  The people’s governments of the four provinces
shall make appropriate arrangements for workers and staff members
in closed down or suspended enterprises.

    Article 9  The State shall practice a system of controlling
the total amount of discharged water pollutants (hereinafter
referred to as “the total amount of discharged pollutants”)
within the territory of the Huaihe River Valley.

    Article 10  In accordance with the aim of prevention and
control of water pollution within the territory of the Huaihe
River Valley, the competent department of environmental
protection administration under the State Council, in concert
with the planning department and the competent department of
water administration under the State Council, shall consult with
the people’s governments of the four provinces, map out a program
for preventing and controlling water pollution and a plan for
controlling the total amount of discharged pollutants within the
territory of the Huaihe River Valley, which shall be submitted by
the Leading Group to the State Council and shall be exercised
after its approval.

    Article 11  In accordance with the program for prevention and
control of water pollution and the plan for controlling the total
amount of discharged pollutants that are enacted by local
people’s governments at higher levels, the people’s governments
at or above the county level within the territory of the Huaihe
River Valley shall organize to enact programs for the prevention
and control of water pollution and plans for controlling the
total amount of discharged pollutants in their administrative
areas within the territory of the Huaihe River Valley, and also
shall incorporate the aforesaid programs and plans into a middle-
term or long-term program and an annual plan for national
economic and social development in their administrative areas.

    Article 12  The plan for controlling the total amount of
discharged pollutants within the territory of the Huaihe River
Valley shall include such contents as the exact area in which the
total amount of discharged pollutants shall be controlled, the
total amount of discharged pollutants, the amount of reduction of
discharged pollutants and the time limit for such reduction, and
shall also include the areas in which the control of discharged
pollutants shall be centered on, lists of key units discharging
pollutants out of the aforesaid areas and other contents.

    Article 13  For enterprises, institutions and individual
businesses discharging pollutants into a water body within the
territory of the Huaihe River Valley (hereinafter referred to as
“the units discharging pollutants”) which are incorporated into
plans for controlling the total amount of discharged pollutants,
the control index of the total amount of discharged pollutants
shall be decided on the basis of plans for controlling the total
amount of discharged pollutants, environmental impact statements
for construction projects and declared amounts of discharged
pollutants, by competent departments of environmental protection
administration in consultation with other related competent
departments at the corresponding levels.

    The amount of the reduction and the time limit required for
such reduction of the control index of the total amount of
discharged pollutants shall, in accordance with provisions
stipulated by the people’s governments at respective levels and
in consultation with other related competent departments at the
corresponding levels, be appraised and decided by the competent
departments of environmental protection administration that issue
the aforesaid control index to lower levels.

    If a unit discharging pollutants exceeds the limits of the
control index of the total amount of discharged pollutants, it
shall be ordered by the local people’s governments at or above
the county level to eliminate and control the pollution within a
certain period.

    Article 14  The unit discharging pollutants within the major
controlling area of discharging pollutants or the key unit
discharging pollutants out of the major controlling area of
discharging pollutants, which are defined in plans for
controlling the total amount of discharged pollutants within the
territory of the Huaihe River Valley, must file an application in
accordance with related State-stipulated provisions for license
for discharging pollutants, and also shall install measuring
instruments of discharged sewage at sewage outfalls.

    Article 15  The competent department of environmental
protection administration under the State Council, in
consultation with the competent department of water
administration under the State Council, shall establish water
quality standards for the provincial boundaries within the
territory of the Huaihe River Valley in accordance with the plans
for controlling the total amount of discharged pollutants within
the territory of the Huaihe River Valley and with the four
provinces’ economic and technological conditions. The aforesaid
water quality standards shall go into effect after being approved
by the State Council.

    Article 16  The Bureau of Protection of Water Resources within
the Territory of the Huaihe River Valley shall be responsible for
monitoring the water quality of the provincial boundaries of the
four provinces, and shall report without delay the monitoring
results to the Leading Group.

    Article 17  If the discharge of water pollutants by a key
unit discharging pollutants within the territory of the Huaihe
River Valley exceeds the prescribed standards, it shall be
ordered to eliminate and control the pollution within a certain
period.

    For enterprises and institutions under the jurisdiction of a
people’s government at or below the city or county level, a
deadline for the elimination and control of pollution shall be
determined by the relevant people’s governments at the city or
county level. For enterprises and institutions directly under the
jurisdiction of the central government or the people’s government
at the provincial level, such deadline shall be determined by the
people’s government at the provincial level.

    A list of key units discharging pollutants that have been
ordered to eliminate and control the pollution within a certain
period shall be drafted, in consultation with the people’s
governments of the four provinces, by the competent department  
of environmental protection administration under the State
Council. The list shall be promulgated after the verification and
consent of the Leading Group.

    Article 18  The excess discharge of water pollutants into a
water body within the Huaihe River Valley by any industrial
enterprise shall be prohibited as of Jan. 1, 1998.

    Article 19  Any pollutant discharging unit within the
territory of the Huaihe River Valley must take measures to
accomplish the elimination and control of pollution within the
specified period and to ensure that the discharge of water
pollutants shall conform to the limits set by national or local
standards. Any pollutant discharging unit with a license for
discharging pollutants shall ensure that its total amount of
discharged pollutants does not exceed the control index of the
total amount of discharged pollutants as stipulated by the
license for discharging pollutants.

    Any pollutant discharging unit that has not completed the
elimination and control of pollution within the specified period
shall centralize its funds to accomplish the elimination and
control of pollution as soon as possible; before the elimination
and control of pollution has been completed, new construction
projects aimed at enlarging the production scale are prohibited.

    Article 20  All discharge fees, which are to be collected by
the competent departments of environmental protection
administration under the local people’s governments at or above
the county level, must be spent as provided by the state on the
elimination and control of pollution and may not be appropriated
for other purposes.

    The auditing bodies shall supervise through auditing, in
accordance with the law, the usage of discharge fees, and the
auditing results shall be reported to the Leading Group by the
auditing bodies of the people’s governments of the four
provinces.

    Article 21  The installation or enlargement of a sewage
outfall within administrative areas such as rivers, lakes,
reservoirs, canals, etc., which are located in the territory of
the Huaihe River Valley, must be reported, in accordance with the
law, to the competent department of water administration for
approval.

    Article 22  No new chemical pulp paper making enterprises
shall be established within the territory of the Huaihe River
Valley.

    No new small-scale enterprises engaging in hide processing,
chemical industry, printing and dyeing, electroplating, brewing,
or other activities which may cause severe pollution shall be
established within the territory of the Huaihe River Valley.

    Construction of new large- or medium-scale projects listed in
the preceding paragraph or other projects which may cause severe
pollution is to be strictly controlled; new construction of such
projects must be subject to the approval of the competent
department of environmental protection administration under the
related people’s governments at the provincial level, and shall
be reported to the competent department of environmental
protection administration under the State Council for the record.

    A list of prohibited or strictly controlled industries or
products shall be drafted, in consultation with other related
competent departments under the State Council, by the competent
department of environmental protection administration under the
State Council. Such list, after being examined and ratified by
the Leading Group and reported to the State Council for approval,
shall come into effect after the approval of the State Council.

    Article 23  A competent department of environmental
protection administration under the people’s governments at or
above the county level within the territory of the Huaihe River
Valley shall not, in the process of examining and approving the
environmental impact statement on a construction project’s
discharge of pollutants into a water body, surpass the limit of
the control index of the total amount of discharged pollutants
set for its administrative area.

    Article 24  The local people’s governments at or above the
county level within the territory of the Huaihe River Valley
shall, in accordance with the requirements in the program for
prevention and control of water pollution within the territory of
the Huaihe River Valley, construct sewage treatment facilities in
cities or towns.

    Article 25  Sluices within the territory of the Huaihe River
Valley shall, presupposing the ensuring of flood control or
drought relief, give consideration to the quality of water in
both the upper and lower reaches of a river. An adjustment and
control program for preventing pollution shall be enacted to
avoid the discharge of sewage stored in a sluice-controlled river
course.

    For a sluice deemed as important by the Leading Group, the
adjustment and control program for preventing pollution shall be
enacted by the Water Conservancy Committee of the Huaihe River in
concert with the competent department of water administration
under the people’s government of the relevant province. The
aforesaid program shall be reported to the Leading Group and
shall go into effect after its approval.

    Article 26  The office of the Leading Group shall, by
organizing the competent departments of environmental protection
administration and the competent departments of water
administration or other relevant departments under the people’s
governments of the four provinces, take the following measures to
carry out the combined work of prevention and control of water
pollution in the dry season:

    (1) Strengthen the dynamic monitoring of the quality or
situation of the water in major river courses, lakes or
reservoirs, and circulate a notice of the monitoring results
without delay;

    (2) In accordance with the maximum capacity of the water
environment and in consultation with the competent departments of
environmental protection administration under the people’s
governments of the four provinces, establish for each province
the maximum amount of pollutants discharged from pollution
sources during the dry season. Said amount shall be allotted by
levels to pollutant discharging units by the competent departments
of environmental protection administration under the people’s
governments of the four provinces, and the pollutant discharging
units shall discharge pollutants within the quantitative limits
in accordance with the program for the control of pollutants
discharged from pollution sources during the dry season; and

    (3) Manage sluices as described in the adjustment and control
program for preventing pollution.

    Article 27  Water pollution accidents within the territory of
the Huaihe River Valley shall be promptly reported to the
competent department of environmental protection administration.
The competent department of environmental protection
administration shall, within 24 hours of receiving the aforesaid
accident report, report the pollution accident to the people’s
government at the corresponding level, the competent department
of environmental protection administration at a higher level and
the office of the Leading Group, and shall also circulate the
aforesaid pollution accident to the competent department of
environmental protection administration and the competent
department of water administration within the neighboring
territories of the upper or lower reaches of a river. The local
people’s governments shall take emergency measures to remove or
alleviate the pollution hazards.

    Article 28  Inter-provincial water pollution disputes within
the territory of the Huaihe River Valley shall be investigated
and monitored by the office of the Leading Group so as to put
forward a resolution program, and shall be reported to the
Leading Group for its settlement.

    Article 29  The office of the Leading Group may, in
accordance with the authorization of the Leading Group, organize
the competent departments of environmental protection
administration and the competent departments of water
administration or other departments under the people’s
governments of the four provinces to inspect the work of
prevention or control of water pollution. The units being
inspected shall truthfully report on their situations and provide
any necessary information.

    Article 30  Under any one of the following circumstances, any
unit discharging pollutants shall be ordered to close down or
suspend its operations by the relevant people’s government at or
above the county level:

    (1) Causing severe pollution and not worth the cost of
elimination and control; or

    (2) Discharge of pollutants by an industrial enterprise which
still exceeds the limits after Jan. 1, 1998.  

    Article 31  Any unit that has failed to complete elimination
and control by the required deadline shall be ordered by the
competent department of environmental protection administration
under the local people’s governments at or above the county level
to discharge pollutants in a limited amount, and may also be
subject to a fine of up to 100,000 yuan; if the circumstances
are serious, the aforesaid unit shall be ordered by the relevant
people’s governments at or above the county level to close down
or suspend its operations.

    Article 32  Any unauthorized establishment or enlargement of
a sewage outfall within the administrative areas of rivers,
lakes, reservoirs or canals shall be ordered to be dismantled by
the competent department of environmental protection
administration or the competent department of water
administration under the local people’s government at or above
the county level, and may also be subject to a fine of up to
50,000 yuan.

    Article 33  Newly constructed chemical pulp paper making
enterprises, small enterprises engaged in hide processing,
chemical industry, printing and dyeing, electroplating, brewing
or other activities which may cause severe pollution, or strictly
limited projects which are constructed without approval, shall be
ordered by the relevant people’s government at or above the
county level to suspend construction or close down, and the
competent department of environmental protection administration
may impose a fine of up to 200,000 yuan.

    Article 34  Where the competent department of environmental
protection administration exceeds the control index of the total
amount of discharged pollutants set for its administrative area
to approve an environmental impact statement for a construction
project, disciplinary sanctions shall be imposed on leading
members and other personnel bearing direct responsibilities as
described in laws or regulations. If any action constitutes a
crime, criminal responsibility shall be investigated according
to law.

    Article 35  Where pollutants are excessively discharged in
violation of the program for controlling the discharge of
pollutants from pollution sources in the dry season, the
competent department of environmental protection administration
under the people’s government at or above the county level shall
order the unit discharging pollutants to make amends, and may
also impose a fine of up to 100,000 yuan; if the circumstances
are serious, the relevant people’s government at or above the
county level shall order the unit discharging pollutants to
suspend its operations or close down, and disciplinary
sanctions shall be imposed on leading members and other personnel
bearing direct responsibilities as described in laws or
regulations.

    Article 36  An order for the suspension of construction or
operation or the shut-down of an enterprise or institution, as
described in these Regulations, shall be issued by the people’s
government which set the deadline for the elimination and
control of pollution. An order for the suspension of construction
or operation or the shut-down of an enterprise or institution
directly under the jurisdiction of the central government shall
be submitted to and approved by the State Council.

    Article 37  The maximum fine which may be imposed by the
competent department of environmental protection administration
or the competent department of water administration under the
people’s government at the county level shall not exceed 10,000
yuan; the imposition of a fine of more than 10,000 yuan shall be
reported to and approved by the competent department of
environmental protection administration or the competent
department of water administration at the next higher level .

    The maximum fine which may be imposed by the competent
department of environmental protection administration under the
people’s government of a districted city shall not exceed 50,000
yuan; the imposition of a fine of more than 50,000 yuan shall be
reported to and approved by the competent department of
environmental protection administration at the next higher level.

    Article 38  Management of a sluice which violates the
adjustment and control program for preventing pollution shall be
ordered to be corrected by the competent department of water
administration under the people’s government at or above the
county level; disciplinary sanctions shall be imposed on
leading members and other personnel bearing direct
responsibilities as described in laws or regulations.

    Article 39  Should a water pollution accident occur that
leads to heavy economic losses or personal injuries or deaths,
the leading member and other personnel bearing direct
responsibilities for such an accident, whose acts constitute a
crime, shall be investigated for criminal responsibility
according to law.

    Article 40  Those who, in violation of the public order,
refuse or obstruct state functionaries bearing the
responsibilities prescribed in these Regulations from performing
their legal duties shall be punished pursuant to the provisions
of the Regulations of the People’s Republic of China Concerning
Administrative Penalties for Public Security; if their acts
constitute a crime, criminal responsibility shall be investigated
according to law.

    Article 41  Any state functionary bearing the
responsibilities prescribed in theses Regulation who abuses his
authority, plays favouritism and commits irregularities, or is
negligent of his duties or who refuses to perform his duties,
if the act constitutes a crime, shall be investigated for criminal
responsibility according to law; if such act does not constitute a
crime, the state functionary in question shall be subject to
disciplinary sanctions.

    Article 42  The people’s governments of the four provinces
may respectively formulate their own implementation measures
based on these Regulations.

    Article 43  These Regulations shall come into force as of
August 8, 1995.






CIRCULAR OF THE STATE COUNCIL CONCERNING THE STRICT CONTROL ON THE HIGH GRADE REAL ESTATE DEVELOPMENT PROJECTS

Category  URBAN AND RURAL CONSTRUCTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1995-05-26 Effective Date  1995-05-26  


Circular of the State Council Concerning the Strict Control on the High Grade Real Estate Development Projects



(May 26,1995)

    China’s real estate sector is a newly emerging industry, and its continued
growth bears great significance in terms
of expediting the urban construction
and renovation and promoting economic development. The real estate sector is
currently in the initial stage with rather weak macro-control over its
development and construction in addition to incomplete and imperfect policies
and regulations, and consequently, various questions meriting prompt solutions
have surfaced in the course of ongoing development. One question is related to
the relatively large scale of real estate construction. In 1993, the nation’s
investments accomplished in real estate development and construction soared to
113.8 billion Renminbi(RMB) yuan, representing an increase of 63.2 billion RMB
yuan or a 124.9% rise on 1992, and again with a relatively high rise in 1994
to 160.8 billion RMB yuan, or up 41.3% on 1993. The second question centers on
the irrational structure of real estate investments. With regard to some
regions and cities, the construction and development of deluxe office
buildings, garden villas, holiday villages and deluxe apartment complexes have
exceeded real market demand and in turn have occupied substantial funding,
while inadequate funding has been allocated to residential housing
construction, with supply failing to satisfy market demand. Social problems
have surfaced in some cities due to the excessive demolition of housing and
relocation and the failure to properly arrange for the resettlement of
displaced residents.

    In line with the spirit of the Conference on Central Economic Work held in
November 1994, the current scale of investments in fixed property should be
further controlled, rational adjustments should be made to the investment
structure, the real estate industry should be promoted in a healthy and
orderly manner, and deluxe real estate development projects should be strictly
controlled. Therefore, the following notice is hereby issued:

    1. The examination and approval of deluxe real estate development projects
shall be strictly controlled. Therefore, no approval shall be granted in 1995
for the registrations and the start-ups of construction of the following types
of deluxe real estate development projects, and thereafter all examinations
and approvals shall be strictly controlled: (1) deluxe villa-like residential
housing and holiday villages; (2) projects involving apartment complexes,
office buildings with projected construction costs per unit space one time
higher than ordinary local residential housing and office buildings; (3) the
construction of guest houses, hotels rated at or above four star (or an
equivalent) level.

    In addition, new golf courses, buildings replicating ancient cities,
amusement palaces and etc. shall be strictly prohibited.

    2. Deluxe real estate development projects shall be examined and approved
in accordance with procedures for capital construction and the limits of
specified authority. The State Planning Commission shall be responsible for
the examination and approval of registrations and the start-ups of
construction of deluxe real estate development construction projects covering
100,000 or more square meters or with projected total investments of 200
million or more RMB yuan, for the registrations and the start-ups of the
construction of real estate development projects of units under central and
state departments in Beijing. The planning committees of provinces, autonomous
regions, municipalities directly under the Central Government and cities
listed under separate plans shall be responsible for the examination and
approval of the registration and implementation of the construction of deluxe
real estate development construction projects covering 20,000 or more square
meters but less than 100,000 square meters, or having projected total
investments of 30,000,000 RMB yuan, but less than 200 million RMB yuan, and
shall submit them to the State Planning Commission for the record. The
aforementioned scales and limits of constructions represent the scale and
limits of development projects on single tracts of land, and no approvals
shall be granted beyond the limitations of authority by subdividing tracts or
subdividing over a specified period of time.

    Banks shall refuse to arrange loans for projects which have not been
examined and approved for registration and the start-ups of construction in
accordance with relevant provisions. Projects having received approval for the
start-ups of construction shall have immediate access to self-raised funds and
bank loans; and if self-raised funds are withheld, banks shall not grant
loans, and administration departments shall refuse to complete land-use
formalities, and urban construction departments shall not issue licences
for the planned use of land for construction and related construction
licences.

    3. Funds for deluxe real estate development projects shall be strictly
administered, and investment funds included in the national budget shall not
be used for such projects. All the existing bank loans for real eatate shall
be administered as loans for investments in fixed assets, and shall be
included in the national plan for investments in fixed assets and no loans
shall be granted outside the plan. It shall be strictly prohibited to grant
loans for real estate development projects in the forms of circulating funds
and mortgage loans, or using the call money for borrowing.

    4. Administration of the use of land for real estate construction shall
be strengthened by strictly implementing provisions of the “Land
Administration Law of the People’s Republic of China” and the “Law of the
People’s Republic of China on Administration of Urban Real Estate”. The
requisition, appropriation or transfer of rights to use state-owned lands by
people’s governments of cities and counties must be submitted for approval in
accordance with application procedures and limits of authority for approval
specified by the “Land Administration Law of the People’s Republic of China”
and by the State Council, and no examination and approval beyond limits of
authority for subdivided tracts of land shall be allowed. The scale of urban
construction shall be strictly controlled and the use of land shall be
carried out economically. Land set aside for growing vegetables and land in
protected areas of basic farmland shall not be used for developing deluxe
real estate projects. With regard to land transfers, the transferee shall
carry out development and construction in strict accordance with specified
time limits provided in contracts, and failure to begin development within
the time limit specified by law will result in non-compensated withdrawal.
Administration of land prices for transferred land shall be strengthened,
and land used for deluxe real estate development projects shall all be
supplied by tender or by auctions.

    5. Administration of the collection and use of proceeds from land
transfers shall be standardized. Proceeds from land transfers are considered
as special funds and shall be included in the financial budgets by financial
administration departments at various levels. Such funds shall be administered
in a planned manner with the receipts and expenditures separated and the
principle of special funds for special use. 50% percent of the proceeds from
land transfers in medium and large cities in coastal areas, and 30% of the
proceeds from land transfers in other areas must be included in local finances
and shall be mainly used by provinces, autonomous regions or municipalities
directly under the Central Government for agricultural and key construction
projects, with the remaining funds used for the construction of urban
infrastructure. Such funds shall not be used for financial running expenses.

    6. Administration of development and construction of real estate projects
using foreign investments shall be strengthened. Foreign investments shall be
actively directed to projects related to renovation of older cities and
ordinary residential housing projects. Enterprises and projects related to the
development and management of real estate using foreign investments shall be
examined and approved in accordance with relevant state provisions and within
the limits of authority for examination and approval. The Chinese party shall
not raise funds for the foreign party, nor provide guarantees for loans the
foreign party has outside the territory.

    Deluxe real estate projects using foreign investments of and over
US$30,000,000 shall be examined and approved by the State Planning Commission,
(with limits of authority for the administration of other projects using
foreign investments remaining unchanged). Projects related to tourist hotels
shall be handled in accordance with relevant existing provisions. Deluxe real
estate projects involving investments of one-hundred million U.S. dollars and
over shall be reported by the State Planning Commission to the State Council
for examination and approval.

    7. Imported materials required for various types of real estate
development and construction projects shall, without exception, be subject to
import duties, and the value-added and consumption taxes in accordance with
provisions outlined in the “Circular of the State Council on Questions
Concerning Levying Taxes on Imported Materials Used for Real Estate
Construction”.

    8. Relevant planning, city construction, programming, land administration
and auditing departments, and people’s banks, state-owned commercial banks and
other financial institutions shall perform their respective functions, and
shall assume responsibility for exercising strict supervision and
administration of deluxe real estate development projects. Auditing
departments at various levels shall strengthen auditing supervision over
deluxe real estate development projects in terms of sources of funding,
procedures for examination and approval and construction conditions, and shall
insist on conducting an in-depth audit prior to the start-up of construction.

    9. This Circular shall take precedence over relevant provisions previously
issued by the State Council and relevant departments which fail to conform
with the aforementioned Circular regarding real estate development and
construction.






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON REVISING THE THE ADMINISTRATION OF TAX COLLECTION (APPENDIX: THE FIRST REVISION OF THE LAW)

Category  TAXATION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1995-02-28 Effective Date  1995-02-28  


Decision of the Standing Committee of the National People’s Congress on Revising the Law of the People’s Republic of China on the
Administration of Tax Collection (Appendix: the First Revision of the Law)


Appendix: LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE ADMINISTRATION OF
Contents            
Chapter I  General Provisions
Chapter II  Tax Administration
Chapter III  Tax Collection
Chapter IV  Tax Inspection
Chapter V  Legal Responsibilities
Chapter VI  Supplementary Provisions

(Adopted at the 12nd Meeting of the Standing Committee of the Eighth

National People’s Congress on February 28, 1995, promulgated by Order No.42 of
the President of the People’s Republic of China on February 28, 1995, and
effective as of the date of promulgation)

    Having deliberated on the proposal submitted by the State Council for the
Amendment to the Law of the People’s Republic of China on the Administration
of Tax Collection (Draft) and with a view to suiting the need of the taxation
system reform and keeping abreast of the change in the system of tax
collection, the 12th Meeting of the Standing Committee of the Eighth National
People’s Congress decided to amend the Law of the People’s Republic of China
on the Administration of Tax Collection as follows:

    The first paragraph of Article 14 shall be amended to read as follows:
“The special invoices for Value-Added Tax shall be printed by enterprises
designated by the competent tax department under the State Council; other
invoices shall be printed by enterprises designated respectively by state tax
bureaux or local tax bureaux of the provinces, autonomous regions or
municipalities directly under the Central Government according to the
stipulations by the competent tax department under the State Council.

    No enterprises shall print invoices without designation by the tax
authorities as provided in the preceding paragraph.”

    The second paragraph of Article 14 shall be changed into the third
paragraph.

    This Decision shall enter into force as of the date of promulgation. The
Law of the People’s Republic of China on the Administration of Tax Collection
shall be republished after corresponding amendment according to this Decision.
Appendix: LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE ADMINISTRATION OF
TAX COLLECTION (The First Revision)

    (Adopted at the 27th Meeting of the Standing Committee of the Seventh
National People’s Congress on September 4, 1992, and revised in accordance
with the Decision on Revising the Law of the People’s Republic of China on
Administration of Tax Collection adopted at the 12th Meeting of the Standing
Committee of the Eighth National People’s Congress on February 28, 1995)
Contents            

    Chapter I      General Provisions

    Chapter II     Tax Administration

        Section 1  Tax Registration

        Section 2  Administration of Accounting Books and Vouchers

        Section 3  Tax Declaration

    Chapter III    Tax Collection

    Chapter IV     Tax Inspection

    Chapter V      Legal Responsibilities

    Chapter VI     Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is formulated with a view to strengthening the
administration of tax collection, ensuring the tax revenue of the State and
protecting the legitimate rights and interests of taxpayers.

    Article 2  The administration of tax collection in respect of all taxes to
be collected by the tax authorities in accordance with law shall be governed
by this Law.

    Article 3  The imposition of tax or the cessation thereof, tax reduction,
tax exemption and refund of tax as well as payment of tax unpaid shall be
governed by the provisions of relevant laws; where the State Council is
authorized by law to formulate relevant regulations, the provisions of
relevant administrative rules and regulations formulated by the State Council
shall apply.

    No units including governmental organs or individuals may, in violation of
law or administrative rules and regulations, make decisions regarding the
imposition of tax or the cessation thereof, tax reduction, tax exemption or
refund of tax, or payment of tax unpaid.

    Article 4  Units and individuals that are obligated to pay tax as
prescribed by law or administrative rules and regulations are taxpayers.

    Units and individuals that are obligated to withhold and remit tax or
collect and remit tax as prescribed by law or administrative rules and
regulations are withholding agents.

    Taxpayers and withholding agents must pay tax or withhold and remit tax or
collect and remit tax in accordance with the provisions of relevant laws or
administrative rules and regulations.

    Article 5  The competent department of taxation under the State Council
shall be in charge of the administration of tax collection throughout the
country.

    The local people’s governments at various levels shall strengthen their
leadership in the administration of tax collection within their respective
administrative regions and support the tax authorities in carrying out their
duties according to law and accomplishing their tasks of tax collection.

    Departments and units concerned shall support and assist the tax
authorities in carrying out their duties according to law.

    No units or individuals shall obstruct the tax authorities from carrying
out their duties according to law.

    Article 6  Tax officials must implement the law impartially and devote
themselves to their duties. They shall not extort or take bribes, practise
favouritism and commit malpractice, neglect their duties, or fail to collect,
or undercollect the amount of tax payable; nor shall they abuse their powers
to overcollect tax or deliberately create difficulties for taxpayers or
withholding agents.

    Article 7  Every unit or individual shall have the right to report any
acts contravening the law or the administrative rules or regulations relating
to taxation. The tax authorities shall maintain confidentiality in respect of
the informants and grant them rewards in accordance with relevant regulations.

    Article 8  “The tax authorities” referred to in this Law means the tax
bureaux at various levels and their sub-bureaux and tax stations.
Chapter II  Tax Administration

    Section 1  Tax Registration

    Article 9  Enterprises, branches and sites engaged in production or
business operations established in other places by enterprises, individual
businesses as well as institutions engaged in production or business
operations (hereinafter collectively referred to as taxpayers engaged in
production or business operations) shall, within 30 days from receipt of the
business licence, apply to the tax authorities for tax registration on
presentation of the relevant documents. Upon examination and verification of
such documents, the tax authorities shall issue the tax registration
certificate.

    The scope and methods for tax registration for taxpayers other than those
specified in the preceding paragraph shall be laid down by the State Council.  

    Article 10  Any taxpayer engaged in production or business operations
shall, where any change occurs in the contents of tax registration, within 30
days from the date of completing the formalities for such change in the
business registration with the administrative department of industry and
commerce or prior to the submission of an application for cancellation of the
business registration to the administrative department of industry and
commerce, apply to the tax authorities for the change or cancellation of tax
registration on presentation of the relevant documents.

    Article 11  Use of tax registration certificates by taxpayers shall be
governed by the relevant regulations formulated by the competent department of
taxation under the State Council. The tax registration certificates shall not
be lent, altered, damaged, traded or forged.

    Section 2  Administration of Accounting Books and Vouchers

    Article 12  Taxpayers engaged in production or business operations or
withholding agents shall, in pursuance of the relevant regulations of the
competent departments of finance and taxation under the State Council,
establish accounting books, keep accounts based on legitimate and valid
vouchers and conduct accounting. Individual businesses that are truly unable
to keep accounting books may keep no accounting books upon examination and
approval by the tax authorities.

    Article 13  The financial and accounting systems or financial and
accounting procedures of a taxpayer engaged in production or business
operations shall be submitted to the tax authorities for the record.

    Where the financial and accounting systems or financial and accounting
procedures of a taxpayer engaged in production or business operations
contravene the relevant tax rules of the State Council or the competent
departments of finance and taxation under the State Council, the calculation
and payment of tax shall be made in accordance with the relevant tax rules of
the State Council or the competent departments of finance and taxation under
the State Council.

    Article 14  The special invoices for Value-Added Tax shall be printed by
enterprises designated by the competent tax department under the State
Council; other invoices shall be printed by enterprises designated
respectively by state tax bureaux or local tax bureaux of the provinces,
autonomous regions or municipalities directly under the Central Government
according to the stipulations by the competent tax department under the State
Council.

    No enterprises shall print invoices without designation by the tax
authorities as provided in the preceding paragraph.”

    Measures for the administration of invoices shall be worked out by the
State Council.

    Article 15  Taxpayers engaged in production or business operations and
withholding agents must take care of accounting books, vouchers for the
accounts, tax payment receipts and other relevant information in conformity
with the period for such care prescribed by the competent departments of
finance and taxation under the State Council.

    Accounting books, vouchers for the accounts, tax payment receipts and
other relevant information shall not be forged, altered or destroyed without
due approval.

    Section 3  Tax Declaration

    Article 16  Taxpayers must, within the time limit for tax declaration as
prescribed by law or administrative rules and regulations, or as determined by
the tax authorities in accordance with law or administrative rules and
regulations, complete formalities for tax declaration, submit tax returns,
financial and accounting statements as well as other relevant information on
tax payments required of taxpayers by the tax authorities in light of the
actual needs.

    Withholding agents must, within the time limit for tax declaration as
prescribed by law or administrative rules and regulations, or as determined by
the tax authorities in accordance with law or administrative rules and
regulations, submit statements on taxes withheld and remitted or collected and
remitted as well as other relevant information required of withholding agents
by the tax authorities in light of the actual needs.

    Article 17  Where a taxpayer or withholding agent is unable to complete
formalities for tax declaration or to submit statements on the tax withheld
and remitted or collected and remitted within the prescribed time limit, upon
examination and approval by the tax authorities, the time limit may be
extended.
Chapter III  Tax Collection

    Article 18  The tax authorities shall collect tax in accordance with law
or administrative rules and regulations. They shall not impose, cease to
collect, overcollect or undercollect tax in violation of law or administrative
rules and regulations.

    Article 19  Withholding agents shall perform their obligations of
withholding or collecting tax in accordance with law or administrative rules
and regulations. With respect to units or individuals that are not obligated
to withhold or collect tax as prescribed by law or administrative rules and
regulations, the tax authorities shall not request them to perform any
obligations of withholding or collecting tax.

    When a withholding agent performs its obligations of withholding or
collecting tax in accordance with law, the taxpayer shall have no right to
refuse. Should a taxpayer refuse, the withholding agent shall promptly report
the case to the tax authorities for disposition.

    The tax authorities shall in accordance with the relevant regulations pay
to withholding agents handling fees for withholding or collecting tax.

    Article 20  A taxpayer or withholding agent shall pay or remit tax in
compliance with the time limit as prescribed by law or administrative rules
and regulations, or as determined by the tax authorities in accordance with
law or administrative rules and regulations. Where a taxpayer is unable to pay
tax within the prescribed period on account of special difficulties, it may,
upon approval by a tax bureau (or sub-bureau) at or above the county level,
defer the payment of tax for a maximum period of three months.

    Where a taxpayer fails to pay tax within the time limit as prescribed in
the preceding paragraph or a withholding agent fails to remit tax within the
time limit as prescribed in the preceding paragraph, the tax authorities
shall, in addition to ordering the taxpayer or withholding agent to pay or
remit the tax within a fixed period of time, impose a surcharge on a daily
basis at the rate of 0.2% of the amount of tax in arrears, commencing on the
day the tax payment is in default.

    Article 21  A taxpayer may submit to the tax authorities a written
application for tax reduction or tax exemption in accordance with law or
administrative rules and regulations.

    Applications for tax reduction or tax exemption shall be subject to the
examination and approval by the examination and approval authorities for tax
reduction or tax exemption prescribed by law or administrative rules and
regulations. Any decisions on tax reduction or tax exemption made in violation
of law or administrative rules and regulations by the local people’s
governments at various levels, the competent departments under the people’s
governments at various levels, or by units or individuals shall be null and
void.

    Article 22  When the tax authorities collect tax and withholding agents
withhold or collect tax, they must issue tax payment receipts to the
taxpayers.

    Article 23  If a taxpayer is under one of the following circumstances, the
tax authorities shall have the power to assess the amount of tax payable by
the taxpayer:

    (1) Establishment of accounting books is not necessary under this Law;

    (2) Accounting books are required to be established by this Law, but they
are not established;

    (3) Accounting books are established, but the accounts are not in order or
the information on costs, receipt vouchers and expense vouchers are incomplete
and difficult to check;

    (4) Where an obligation to pay tax arises, the taxpayer fails to complete
the formalities for tax declaration within the prescribed time limit, and,
after having been ordered by the tax authorities to make tax declaration
within a fixed period of time, still fails to do so upon expiration of the
period.

    Article 24  The payment or receipt of prices or charges in business
transactions between an enterprise or an establishment or a site set up in
China by a foreign enterprise engaged in production or business operations,
and its associated enterprises, shall be made in the same manner as the
payment or receipt of prices or charges in business transactions between
independent enterprises. Where the payment or receipt of prices or charges is
not made in the same manner as in business transactions between independent
enterprises and results in a reduction of the taxable revenue or income, the
tax authorities shall have the right to make reasonable adjustments.

    Article 25  With respect to a unit or an individual engaged in business
operations without a business licence, the case shall be dealt with by the
administrative department of industry and commerce in accordance with law. In
addition, the tax authorities shall assess the amount of tax payable by such
unit or individual and order it or him to make the tax payment. Should such
unit or individual fail to make the tax payment, the tax authorities may
distrain the commodities or goods of a value corresponding to the amount of
tax payable. If the amount of tax payable is paid after the distraint, the tax
authorities must immediately remove the distraint and return the commodities
or goods distrained. If the amount of tax payable is still not paid after the
distraint, the commodities or goods which have been distrained shall, upon
approval of the commissioner of a tax bureau (or sub-bureau) at or above the
county level, be sold by auction and the proceeds therefrom shall be used to
offset the amount of tax payable.

    Article 26  Where the tax authorities have grounds to believe that a
taxpayer engaged in production or business operations has committed any act of
tax evasion, the tax authorities may order the taxpayer to pay the tax payable
within a time limit prior to the prescribed date of tax payment. If within
such time limit the tax authorities discover that there are obvious signs that
the taxpayer has transferred or concealed its taxable commodities, goods or
other property, or taxable income, the tax authorities may order the taxpayer
to provide a guaranty for tax payment. If the taxpayer is unable to provide a
guaranty for tax payment, the tax authorities may, upon approval of the
commissioner of a tax bureau (or sub-bureau) at or above the county level,
adopt the following tax preservative measures:

    (1) To notify in writing the bank or any other financial institution with
which the taxpayer has opened an account to stop payment on a temporary basis
from the taxpayer’s deposits of an amount corresponding to the amount of tax
payable;

    (2) To distrain or seal up the taxpayer’s commodities, goods or other
property of a value corresponding to the amount of tax payable.

    In the event that the taxpayer makes the tax payment within the time limit
prescribed in the preceding paragraph, the tax authorities must immediately
lift the tax preservative measures. Should the taxpayer fail to make the tax
payment on expiration of the time limit, the tax authorities may, upon
approval of the commissioner of a tax bureau (or sub-bureau) at or above the
county level, notify in writing the bank or any other financial institution
with which the taxpayer has opened an account to withhold and remit the amount
of tax payable from the taxpayer’s deposits from which payment has been
stopped on a temporary basis, or sell by auction the commodities, goods or
property which has been distrained or realed up and use the proceeds therefrom
to offset the amount of tax payable.

    Where the legitimate interests of a taxpayer are jeopardised due to the
inappropriate adoption of tax preservative measures or the failure of the tax
authorities to immediately lift such measures after the taxpayer has made the
tax payment within the prescribed time limit, the tax authorities shall be
liable for compensation.

    Article 27  Where a taxpayer engaged in production or business operations
or a withholding agent fails to pay or remit tax within the prescribed time
limit, or a tax payment guarantor fails to pay the guaranteed amount of tax
within the prescribed time limit, the tax authorities shall order the same to
pay the tax within a fixed period of time. In case of failure to pay the tax
within such period, the tax authorities may, upon approval of the commissioner
of a tax bureau (or sub-bureau) at or above the county level, adopt the
following compulsory enforcement measures:

    (1) To notify in writing the bank or any other financial institution with
which the taxpayer, withholding agent or tax payment guarantor has opened an
account to withhold and remit the amount of tax from its deposits;

    (2) To distrain, seal up or sell by auction the commodities, goods, or
other property of the taxpayer, withholding agent or tax payment guarantor, of
a value corresponding to the amount of tax payable, and to use the proceeds
therefrom to offset the amount of tax payable.

    The tax authorities shall, while adopting the compulsory enforcement
measures, carry out compulsory enforcement with regard to the surcharge on tax
in arrears which has not been paid by the above-mentioned taxpayer,
withholding agent or tax payment guarantor.

    Article 28  Should a taxpayer who has not paid or has underpaid the amount
of tax payable need to leave China, it shall settle the amount of tax payable
with, or provide a guaranty to, the tax authorities, before leaving the
country. If the taxpayer neither settles the amount of tax payable nor
provides a guaranty, the tax authorities may notify the exit administration
authorities to prevent the taxpayer from leaving the country.

    Article 29  The tax authorities must issue a receipt when distraining
commodities, goods or other property, and issue a detailed list when sealing
up commodities, goods or other property.

    Article 30  After discovering that a taxpayer has paid an amount of tax in
excess of the tax payable, the tax authorities must immediately refund the
excess amount; where a taxpayer discovers its excess payment within three
years from the date of the tax payment, it may claim a refund of the excess
amount of tax from the tax authorities, which shall immediately refund it
after examination and verification of the case.

    Article 31  In case that a taxpayer or withholding agent fails to pay tax,
or underpays tax, due to the responsibility of the tax authorities, the tax
authorities may within three years require the taxpayer or withholding agent
to pay the tax in arrears, without, however, the imposition of any surcharge
thereon.

    In case that a taxpayer or withholding agent fails to pay tax, or
underpays tax, through its own faults, such as miscalculation, the tax
authorities may within three years pursue the collection of the tax in
arrears. Under special circumstances, the period for pursuing the collection
of the tax in arrears may be extended to ten years.
Chapter IV  Tax Inspection

    Article 32  The tax authorities shall have the power to conduct the
following tax inspections:

    (1) To inspect a taxpayer’s accounting books, vouchers for the accounts,
statements and relevant information; to inspect a withholding agent’s
accounting books, vouchers for the accounts and relevant information in
respect of the amount of tax withheld and remitted or collected and remitted;

    (2) To inspect a taxpayer’s taxable commodities, goods or other property
at the taxpayer’s sites where production or business operations are conducted
and places where goods are stored; to inspect a withholding agent’s
operational conditions relating to the withholding and remittance of tax or
the collection and remittance of tax;

    (3) To order a taxpayer or withholding agent to furnish documents,
evidentiary materials and information pertaining to the payment of tax or the
amount of tax withheld and remitted or collected and remitted;

    (4) To make inquiries of a taxpayer or withholding agent regarding issues
and particulars relevant to the payment of tax or the amount of tax withheld
and remitted or collected and remitted;

    (5) To inspect, at railway stations, docks, airports, postal enterprises
and their branches, supporting documents, vouchers and information pertaining
to the taxable commodities, goods or other property which a taxpayer has
delivered for carriage or sent by post;

    (6) Upon approval of the commissioner of a tax bureau (or sub-bureau) at
or above the county level, to examine and verify the deposit accounts that a
taxpayer engaged in production or business operations or a withholding agent
has opened with a bank or any other financial institution, on the strength of
a permit, which is of a nationally unified form, for the inspection of deposit
accounts. The examination and verification of the savings deposits of a
taxpayer engaged in production or business operations shall be subject to the
review by a county sub-branch or a municipal (at the county level) sub-branch
of a bank or a district office of a municipal branch of a bank, which shall
designate a subordinate savings office to provide the relevant information.

    Article 33  A taxpayer or withholding agent must subject itself to tax
inspections conducted by the tax authorities in accordance with law, report
the particulars truthfully and provide relevant information, and shall not
refuse to be inspected or conceal any facts.

    Article 34  When the tax authorities conduct tax inspections in accordance
with law, the departments and units concerned shall give support and
assistance, truthfully report the particulars of taxpayers, withholding agents
and other parties concerned in respect of the payment of tax and the amount of
tax withheld and remitted or collected and remitted, and furnish the relevant
information and evidentiary materials to the tax authorities.

    Article 35  The tax authorities may, when investigating a case concerning
violation of any tax laws or regulations, make notes, tape-recordings,
video-recordings, photographings and duplications of the relevant particulars
and information pertaining to the case.

    Article 36  When conducting tax inspections, the officials sent by the tax
authorities shall produce tax inspection certificates and shall have the duty
to keep confidentiality for the persons under inspection.
Chapter V  Legal Responsibilities

    Article 37  Where a taxpayer has committed any of the following acts, the
tax authorities shall order it to rectify within a fixed period of time. Those
failing to rectify upon expiration of the period may be punished by the tax
authorities with a fine of not more than 2,000 yuan, if the circumstances are
serious, with a fine of not less than 2,000 yuan but not more than 10,000
yuan.

    (1) Failure to apply for tax registration, change or cancellation of tax
registration within the prescribed time limit;

    (2) Failure to establish and take care of the accounting books, or to take
care of the vouchers for the accounts and the relevant information in
accordance with relevant regulations;

    (3) Failure to furnish reports on the financial and accounting systems or
the financial and accounting procedures to the tax

PREVENTION OF ENVIROMENTAL POLLUTION CAUSED BY SOLID WASTE

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1995-10-30 Effective Date  1996-04-01  


Law of the People’s Republic of China on Prevention of Enviromental Pollution Caused by Solid Waste

Contents
Chapter I  General Principles
Chapter II  Supervision and Administration of Prevention of Environmental
Chapter III  Prevention of Environmental Pollution Caused by Solid Waste
Chapter IV  Special Stipulations on the Prevention of Environmental
Chapter V  Legal Responsibilities
Chapter VI  Supplementary Articles
Appendix  Related Articles in the Criminal Law

(Adopted by the 16th Meeting of the Standing Committee of the Eighth

National People’s Congress on October 30, 1995, promulgated by Order No.58
of the President of the People’s Republic of China on October 30, 1995,
to be effective as of April 1, 1996)
Contents

    Chapter I  General Principles

    Chapter II  Supervision and Control over Prevention of Environmental

                Pollution Caused by Solid Waste

    Chapter III  Prevention of Environmental Pollution Caused by Solid Waste

      Section 1  General Stipulations

      Section 2  Prevention of Environmental Pollution Caused by Industrial

                 Solid Waste

      Section 3  Prevention of Environmental Pollution Caused by Urban

                 Residential Refuse

    Chapter IV  Special Stipulations on the Prevention of Environmental

                Pollution Caused by Dangerous Waste

    Chapter V  Legal Responsibilities

    Chapter VI  Supplementary Articles
Chapter I  General Principles

    Article 1  To prevent the pollution of the environment by solid waste,
ensure the good health of the public, and promote the development of socialist
modernization, the following law is hereby established.

    Article 2  This law applies to the prevention of environmental pollution
caused by solid waste within the boundaries of the People’s Republic of China.

    It does not apply to the prevention of marine environmental pollution
caused by solid waste or of environmental pollution caused by radioactive
solid waste.

    Article 3  To prevent pollution of the environment by solid waste, the
state shall carry out a principle of reducing the production of solid waste,
making full and rational use of solid waste, and safely disposing of solid
waste.

    Article 4  The state shall encourage and support clean production to
reduce the creation of solid waste.

    The state shall encourage and support the comprehensive utilization of
resources, the full recovery and rational usage of solid waste, and the
adoption of economic and technological policies and measures conducive to
making comprehensive use of solid waste.

    Article 5  The state shall encourage and support measures for the
centralized disposal of solid waste that are conducive to environmental
protection.

    Article 6  The people’s governments at the county level or above shall
coordinate the prevention of environmental pollution caused by solid waste
with environmental protection plans and shall adopt economic and technological
policies and measures conducive to the prevention of environmental pollution
caused by solid waste.

    Article 7  The state shall encourage and support scientific research and
technological development for the prevention of environmental pollution caused
by solid waste, the promotion of advanced technologies for prevention, as well
as the popularization of scientific knowledge for the prevention of
environmental pollution caused by solid waste.

    Article 8  The people’s governments at different levels shall give awards
to those units or individuals that make remarkable contributions to the
prevention of environmental pollution caused by solid waste as well as in the
related activities of making comprehensive use of solid waste.

    Article 9  Every unit or individual has an obligation to protect the
environment and has the right to report or bring charges against those units
or individuals that are responsible for environmental pollution caused by
solid waste.

    Article 10  The administrative department under the State Council in
charge of environmental protection shall exercise unified supervision and
administration throughout the whole country over the prevention of
environmental pollution caused by solid waste. The relevant departments under
the State Council shall be in charge of the supervision and administration of
the prevention of environmental pollution caused by solid waste within the
limits of their own responsibilities.

    The administrative departments under the local people’s governments at the
county level or above shall exercise unified supervision and administration
over the prevention of environmental pollution caused by solid waste within
the boundaries of the corresponding administrative division. The departments
concerned under the people’s governments at the county level or above shall be
in charge of the supervision and administration of the prevention of
environmental pollution caused by solid waste within the limits of their own
responsibilities.

    The administrative department under the State Council in charge of
construction and the administrative departments in charge of the environment
and public health under the local people’s governments at the county level or
above shall be in charge of the supervision and administration of the
cleaning, collection, storage, transportation, and disposal of urban
residential refuse.
Chapter II  Supervision and Administration of Prevention of Environmental
Pollution Caused by Solid Waste

    Article 11  The administrative department under the State Council in
charge of environmental protection shall establish a monitoring system for
environmental pollution caused by solid waste, formulate unified monitoring
standards, and organize a monitoring network in conjunction with other
relevant departments.

    Article 12  In constructing those projects that may produce industrial
solid waste as well as those for storage and disposal of solid waste, the
state administrative regulations for environmental protection in construction
projects must be abided by.

    Reports on the effects of a construction project on the environment shall
include an estimation of the pollution and other effects on the environment
caused by the solid waste that is produced by the construction project, as
well as the stipulation of measures for the prevention of environmental
pollution, and shall be submitted to the administrative department in charge
of environmental protection for approval in accordance with the procedures
that are stipulated by the state. After the report on the environmental
effects is ratified, the department in charge of examining and approving
construction projects shall approve a feasibility study report or a design
responsibility report for the project.

    Article 13  A report on the effects of a construction project on the
environment shall stipulate that the necessary facilities for the prevention
of environmental pollution caused by solid waste must be designed,
constructed, and put into operation in coordination with the principal part of
the project. A construction project shall begin operation or use only after
the facilities for the prevention of environmental pollution caused by solid
waste are inspected and approved by the same department that examined and
approved the report on the environmental effects. The facilities for the
prevention of environmental pollution caused by solid waste shall be inspected
and approved together with the principal part of the project.

    Article 14  The administrative departments under the people’s governments
at the county level or above in charge of environmental protection and other
supervisory and administrative departments in charge of the prevention of
environmental pollution caused by solid waste shall have the right to conduct
on-the-spot inspections of the units concerned with the prevention of
environmental pollution caused by solid waste within their jurisdiction in
accordance with their own responsibilities. The inspected units shall report
the situation accurately and shall provide any necessary materials. The
inspecting institutions shall maintain the technological and operational
secrecy of the inspected units.

    The inspecting personnel shall show their credentials while conducting
on-the-spot inspections.
Chapter III  Prevention of Environmental Pollution Caused by Solid Waste

    Section 1  General Stipulations

    Article 15  The units and individuals that produce solid waste shall take
measures to prevent or reduce the environmental pollution caused by solid
waste.

    Article 16  The units and individuals that collect, store, transport,
utilize, or dispose of solid waste shall take precautions against the spread,
loss, and leakage of the solid waste as well as other measures for preventing
the solid waste from polluting the environment.

    The abandonment or spread of solid waste during transportation is
forbidden.

    Article 17  Products shall use packing materials which are easily
recycled, disposed of, or assimilated by the environment.

    The product manufacturer, retailer, or consumer shall recycle those
product packages and containers that can be recycled in accordance with the
relative regulations of the state.

    Article 18  The state shall encourage scientific research institutions and
production units to study and produce thin films for agricultural use that are
easily recycled, disposed of, or assimilated by the environment.

    Those units and individuals that utilize thin films for agricultural use
shall take measures such as recycling to prevent or reduce environmental
pollution caused by the thin films.

    Article 19  The administration and maintenance of the facilities,
equipment, and sites for the collection, storage, transportation and disposal
of solid waste shall be strengthened in order to guarantee their normal
operation and use.

    Article 20  It is forbidden to close, disuse, or dismantle without
authorization the facilities and sites for preventing environmental pollution
caused by industrial solid waste. Those facilities and sites that require
closure, disuse, or dismantling must be examined and approved by the
administrative departments in charge of environmental protection under the
local people’s governments at the county level or above, and measures shall be
taken to prevent environmental pollution.

    Article 21  Those enterprises and institutions that produce solid waste
which causes serious environmental pollution shall be ordered to bring their
pollution under control within a specified period of time. Those subject to
such an order shall accomplish the task on schedule. The order shall be made
by the people’s government at the county level or above according to the
authority granted them by the State Council.

    Article 22  It shall be forbidden to construct facilities or sites for the
centralized storage and disposal of industrial solid waste or burial sites for
residential refuse in nature preserves, scenic spots, historic sites, drinking
water sources, and other places of special protection designated by the State
Council and the people’s governments at the provincial, municipal, or
autonomous regional levels.

    Article 23  In the event that solid waste is transferred to other
provinces, municipalities, or autonomous regions for storage or disposal, a
report must be submitted to the administrative department in charge of
environmental protection under the people’s government of the province from
which the solid waste will be transferred, and approval must be granted by the
administrative department in charge of environmental protection under the
people’s government of the province to which the solid waste will be
transferred.

    Article 24  Within the territory of the People’s Republic of China, it is
forbidden to dump, pile, or dispose of solid waste from outside the People’s
Republic of China.

    Article 25  The state shall forbid the import of solid waste which cannot
be used as a raw material and shall restrict the import of solid waste that
can be used as raw material.

    The administrative department in charge of environmental protection,
together with the department in charge of foreign trade and economic
cooperation under the State Council shall stipulate, adjust, and announce the
list of solid wastes which can be imported for use as raw materials; the
import of those kinds of solid waste that are not listed shall be forbidden.

    Those that require the import of solid wastes listed in the list
stipulated in the preceding paragraph for use as raw materials must acquire
approval through examination by the administrative department in charge of
environmental protection and the department in charge of foreign trade and
economic cooperation under the State Council.

    Specific measures shall be formulated by the State Council.

    Section 2  Prevention of Environmental Pollution Caused by Industrial
Solid Waste

    Article 26  The administrative department in charge of environmental
protection together with the department in charge of comprehensive economic
affairs under the State Council and other departments concerned shall
designate the environmental pollution caused by industrial solid waste,
formulate policies on technologies for the prevention of environmental
pollution caused by industrial solid waste, and organize the spread of
advanced production technologies and equipment for the prevention of
environmental pollution caused by industrial solid waste.

    Article 27  The department in charge of comprehensive economic affairs
together with other departments concerned under the State Council shall
organize the research, development, and popularization of production
technologies and equipment for reducing the amount of industrial solid waste,
and shall promulgate a catalogue of backward production technologies and
equipment that are responsible for industrial solid waste resulting in serious
environmental pollution and that are to be eliminated within a specified time.

    The manufacturer, retailer, importer, or consumer must stop respectively
producing, marketing, importing, or utilizing the equipment listed in the
catalogue stipulated in the preceding paragraph within the specified time
granted by the department in charge of comprehensive economic affairs and
other departments concerned under the State Council. The applier of production
technologies must cease use of those technologies listed in the catalogue
stipulated in the preceding paragraph within the specified time granted by the
department in charge of comprehensive economic affairs and other departments
concerned under the State Council.

    Any equipment required to be eliminated in accordance with the
stipulations in the two preceding paragraphs shall not be transferred to
others for use.

    Article 28  The departments concerned under the people’s governments at
the county level or above shall formulate a plan for the prevention of
environmental pollution caused by industrial solid waste, the popularization
of advanced production technologies and equipment for reducing the amount of
industrial solid waste, and the promotion of work on the prevention of
environmental pollution caused by industrial solid waste.

    Article 29  Those units that produce industrial solid waste shall
establish and amplify a responsibility system for the prevention of
environmental pollution and take measures for preventing environmental
pollution caused by industrial solid waste.

    Article 30  Enterprises and institutions shall rationally choose and
utilize raw materials, energy and other resources, apply advanced production
technologies and equipment, and reduce the amount of industrial solid waste.

    Article 31  The state shall implement a reporting and registration system
for industrial solid waste.

    Those units which produce industrial solid waste shall present data
concerning the volume of waste they produce, its direction of flow, and the
methods of storage and disposal to the administrative departments in charge of
environmental protection under the people’s governments at the county level or
above in that locality, in accordance with the regulations of the
administrative department in charge of environmental protection under the
State Council.

    Article 32  All enterprises or institutions which produce industrial solid
waste that cannot be utilized, whether at all or temporarily, must, in
accordance with the regulations of the administrative departments in charge of
environmental protection under the State Council, construct facilities or
sites for its storage or disposal.

    Article 33  Those who store smelting residue, chemical residue, coal ash
residue, discarded ore, tail ore, or other industrial solid waste out-of-doors
shall construct special facilities or sites for its storage.

    Article 34  Construction of the facilities and sites for the storage and
disposal of industrial solid waste shall be in accordance with the
environmental protection standards that have been stipulated by the
administrative department in charge of environmental protection under the
State Council.

    As to those units which produce industrial solid waste before this Law is
implemented, if they fail to construct facilities or sites for the storage or
disposal of industrial solid waste in accordance with the regulations of
Article 32 of this Law, or if the facilities or sites they have already
constructed do not conform to environmental protection standards, they shall
carry out such construction or reconstruction within a specified period of
time. During this time period, waste-discharge fees or other measures shall be
implemented for any newly-produced industrial solid waste from the
above-mentioned units which pollutes the environment. Those units which
complete within the specified time period construction of the facilities or
sites for storage or disposal of industrial solid waste, or make them conform
with the environmental protection standards through reconstruction, may cease
payment of waste-discharge fees from the day when the construction or
reconstruction is completed. Those units which fail to complete construction
before the deadline or which still cannot meet the standards after
reconstruction shall continue to pay waste-discharge fees until the
construction is completed or the standards are met through reconstruction. The
relevant specific means shall be stipulated by the State Council. The
waste-discharge fees shall be reserved for the prevention and amelioration of
environmental pollution and shall not be appropriated for any other use.

    Section 3  Prevention of Environmental Pollution Caused by Urban
Residential Refuse

    Article 35  All units and individuals shall obey the regulations of the
administrative departments in charge of environment under urban people’s
governments by emptying and piling urban residential refuse at designated
places. Throwing or piling rubbish outside these designated places is
forbidden.

    Article 36  The storage, transport, and disposal of urban residential
refuse shall, with the purpose of preventing environmental pollution, comply
with the regulations of the state concerning environmental protection and
urban environment.

    Article 37  Urban residential refuse shall be cleared and carried away
without delay. Reasonable utilization and neutralization shall be actively
conducted.

    The separate collection, storage, transport, and disposal of urban
residential refuse of different classifications shall be gradually implemented.

    Article 38  The urban people’s governments shall make plans for improving
the fuel structure and developing urban coal gas, natural gas, liquefied
petroleum gas, and other clean energy resources.

    The relevant departments under the urban people’s governments shall
arrange for clean vegetables to enter cities to reduce urban residential
refuse.

    The relevant departments under the urban people’s governments shall make
comprehensive plans to reasonably arrange a purchasing network and promote the
recycling of waste.

    Article 39  The urban people’s governments shall construct supporting
facilities for the cleaning, collection, storage, transport, and disposal of
urban residential refuse.

    Article 40  The construction of the facilities and sites for the disposal
of urban residential refuse shall be in accordance with the standards of
environmental protection and urban environment stipulated by the
administrative department in charge of environmental protection and the
department in charge of construction under the State Council.

    Unauthorized closure, disuse, or dismantling of the facilities or sites
for the disposal of urban residential refuse is forbidden; for those that
require closure, disuse, or dismantling, inspection and approval must be made
by the administrative department in charge of environmental sanitation as well
as the department in charge of environmental protection under the people’s
governments at the county level or above in that locality; meanwhile, other
measures shall be adopted to prevent environmental pollution.

    Article 41  Those units carrying out construction shall, without delay,
remove and dispose of refuse and shall adopt some measures to prevent
environmental pollution.
Chapter IV  Special Stipulations on the Prevention of Environmental
Pollution Caused by Dangerous Waste

    Article 42  The regulations in this Chapter apply to the prevention and
cure of environmental pollution caused by dangerous waste. Those not mentioned
in this Chapter shall accord with the other regulations of this Law.

    Article 43  The administrative department in charge of environmental
protection under the State Council shall draw up a national list of dangerous
waste in conjunction with relevant departments under the State Council, and
stipulate unified differentiating standards, methods, and identification marks
for dangerous waste.

    Article 44  Identification marks shall be placed on the containers and
packing materials for dangerous waste and posted at the facilities and sites
for the collection, storage, transport, and disposal of dangerous waste.

    Article 45  Those units which produce dangerous waste shall report and
register in accordance with the relevant regulations of the state.

    Article 46  Those units which produce dangerous waste shall dispose of
them in accordance with the relevant regulations of the state. Those who fail
to properly dispose of the waste will be required to make rectifications
within a specified time period by the administrative department in charge of
environmental protection under the people’s governments at the county level or
above in that locality; as to those units which fail to dispose of the waste
before the deadline or which do not carry out disposal in accordance with the
relevant regulations of the state, designated units of the administrative
department in charge of environmental protection under the people’s government
at the county level or above in that locality shall undertake to dispose of
the waste for them, and all expenses for disposal shall be born by those units
which have produced the dangerous waste.

    Article 47  The urban people’s governments shall organize the construction
of the facilities for the centralized disposal of dangerous waste.

    Article 48  Those who adopt the disposal method of burying dangerous waste
but fail to conform to the regulations of the administrative department in
charge of environmental protection under the State Council shall pay
waste-discharge fees for dangerous waste. The specific means for levying the
discharge fees for dangerous waste shall be stipulated by the State Council.

    The discharge fees for dangerous waste shall be reserved for the
prevention and amelioration of environmental pollution caused by dangerous
waste and shall not be appropriated for any other use.

    Article 49  Those units which engage in operational activities concerning
the collection, storage, and disposal of dangerous waste shall submit
applications for operational licenses to the administrative department in
charge of environmental protection under the people’s government at the county
level or above. The specific means for doing this shall be stipulated by the
State Council.

    No unit may engage in operational activities concerning collection,
storage, and disposal of dangerous waste without a operational license or fail
to be in accordance with the regulations of the license.

    No unit may supply or consign dangerous waste to those units without
operational licenses to engage in any operational activities concerning
collecting, storage, and disposal of dangerous waste.

    Article 50  Dangerous waste of different classifications shall be
collected and stored separately according to their properties. Mixed
collection, storage, transport, and disposal shall be forbidden for different
dangerous waste materials which are not compatible and which have not
undergone safety processing.

    Mixed storage of dangerous waste with non-dangerous waste is forbidden.

    Article 51  Those who require the transfer of dangerous waste shall fill
in forms for the transference of dangerous waste in accordance with relevant
state regulations and shall report to the administrative departments in charge
of environmental protection under the local people’s governments at the county
level or above in the area from which the waste is being transferred and in
the area which is receiving the waste.

    Article 52  Measures for the prevention of environmental pollution shall
be adopted during transport of dangerous waste; meanwhile, the state
regulations concerning management of the transport of dangerous waste shall be
obeyed.

    Transport of dangerous waste in a passenger vehicle is forbidden.

    Article 53  The sites, facilities, equipment, containers, packagings, and
other items used for the collection, storage, transport, or disposal of
dangerous waste shall be treated to eliminate pollution before they are
diverted for other use.

    Article 54  Those workers who will engage in the collection, storage,
transport, recycling, and disposal of dangerous waste shall undergo
professional training and testing before being assigned such posts.

    Article 55

CONSTITUTION ACT, 1982 – page 22

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