PROVISIONS ON EXAMINATION AND APPROVAL OF ESTABLISHMENT OF IMPORT AND EXPORT COMMODITIES INSPECTION AND APPRAISAL ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration for the Inspection of Import and Export Commodities, the Ministry of Foreign Trade and Economic Cooperation

Notice of the State Administration for the Inspection of Import and Export Commodities, the Ministry of Foreign Trade and Economic
Cooperation concerning on Printing and Issuing Provisions on Examination and Approval of Establishment of Import and Export Commodities
Inspection and Appraisal Enterprises with Foreign Investment

Guo Jian Jian Lian [1995] NO.211

The relevant ministries and commissions of the State Council, the administration for the inspection of import and export commodities
directly under the State Administration for the Inspection of Commodities, the ministries of foreign trade and economic commissions
of each province, autonomous region and municipality directly under the Central Government and cities under separate state planning,
Shanghai investment commission, the ministry of foreign trade and economic cooperation of Hainan, the bureau of investment promotion
of Hunan, the Ministry of Foreign Trade and Economic Cooperation of Jilin, the bureau of investment of Xiamen, the bureau of introduction
of foreign capital of Shenzhen:

Provisions on Examination and Approval of Establishment of Import and Export Commodities Inspection and Appraisal Enterprises with
Foreign Investment framed by The State Administration for the Inspection of Import and Export Commodities and the Ministry of Foreign
Trade and Economic Cooperation are hereby printed and issued. Please carry out.

The State Administration for the Inspection of Import and Export Commodities

The Ministry of Foreign Trade and Economic Cooperation

October 9, 1995

Provisions on Examination and Approval of Establishment of Import and Export Commodities Inspection and Appraisal Enterprises with
Foreign Investment

Article 1

These Provisions have been formulated in the light of relevant laws and regulations to strengthen the control over the work on import
and export commodities inspection and thus ensure the quality of this inspection work and facilitate the development of foreign trade.

Article 2

The import and export commodities inspection and appraisal enterprises with foreign investment mentioned in this set of Provisions
refer to enterprises with foreign investment established as Chinese-foreign joint equity or cooperative ventures engaging in inspection,
appraisal and certification of import and export commodities as a third party under the consignment of consignors and of consignees
commodities or other related parties, hereinafter referred to as FFCIEs.

Article 3

Joint venturing FFCIEs but not wholly foreign-owned ones are allowed to be set up in the territories of China.

Article 4

With official approval, FFCIE can engage in all or part of the operations listed below:

Inspection, appraisal and certification on consignment of quality, specifications, quantity, weight, package, damage, value and technical
conditions of shipment of import and export commodities.

Article 5

The Chinese investor in an FFCIE should be an enterprise engaged in the inspection and appraisal of import and export commodities
with approval or consent, or by appointment, of the department in charge.

The foreign investor in an FFCIE should be an enterprise which has more than three years of experience in the import and export commodity
inspection, appraisal and certification business, accommodated with qualified managerial, professional and technical personnel and
technical equipment for the work, a relatively steady clientele of its own and a fairly good international reputation.

Article 6

The registered capital of an FFCIE should not be less than U.S. $ 500,000. It should have a fixed working site and the technical conditions
and professional personnel suitable for its business operations.

Article 7

The operational term of an FFCIE is generally not more than 30 years.

Article 8

The establishment of an FFCIE should be approved by the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to
as MOFTEC) of the Peoples Republic of China. The qualifications for business and business scope of the FFCIE will be examined and
administered by the State Administration for Import and Export Commodities Inspection of the People’s Republic of China (hereinafter
referred to as SCIA).

Article 9

Procedures for the establishment of an FFCIE:

1.

The Chinese partner submits an application for the establishment of the FFCIE together with the related documents to its higher authorities.
After agreed by the authorities, the local department of foreign trade and economic cooperation, having consulted the local bureau
of import and export commodities inspection, will send the application with its own comments and report to MOFTEC. If the applicant
is an enterprise directly under a ministry, commission or bureau of the State Council, it should submit the application with related
documents for the establishment of an FFCIE to its higher authorities and, after having agreed by the higher authorities, report
the application to MOFTEC which, on receiving will consult SCIA on the documents.

2.

SCIA will examine the project proposal and feasibility study report for the proposed FFCIE and its technical force, technical level
and technical equipment as well as its scope of business. Finding the application qualified after examination, SCIA will issue a
written Comment on Qualifications Examination of the proposed FFCIE.

3.

Having received an affirmative reply from SCIA, MOFTEC will examine the documents sent in. After it has approved the project, MOFTEC
will issue a certificate of approval of an enterprise with foreign investment.

4.

The Chinese partner, with the MOFTEC certificate of approval of an enterprise with foreign investment and other relevant documents,
applies to industrial and commercial administrative offices for business registration to get the business license.

5.

With the certificate of approval and the business license, the FFCIE has to get the Qualification Certificate for FFCIE at SCIA before
it can formally open for business.

Article 10

The FFCIE applicants has to submit the following documents to MOFTEC:

1.

Comments of the local department of foreign trade and economic cooperation or a ministry, commission or bureau of the State Council
to the application for the establishment of an FFCIE.

2.

The project proposal for the proposed FFCIE.

3.

The feasibility study report, contract and articles of association signed by all parties concerned.

4.

Certificates of credit status, business registration (duplicates) and legal representation (duplicates) of all parties to the project.

5.

Other documents as requested by MOFTEC.

Otherwise specified as duplicates, all the documents should be the original. The unofficial representative who has signed the documents
should produce the document of authorization by the legal representative for acting on his/her behalf.

Article 11

The establishment of subsidiary setups of FFCIEs shall be handled according to this set of Provisions.

Article 12

A FFCIE will have to renew the procedures of application for approval according to this set of Provisions on one of the following
circumstances:

1.

A change in the partnership.

2.

A change in the scope of business.

Article 13

FFCIEs established before the promulgation of this set of Provisions, should, within three months of the promulgation of the Provisions,
apply to SCIA for the issue of the Qualification Certificate for FFCIE by presenting the certificate of approval of an enterprise
with foreign investment issued by MOFTEC or its authorized department. Those which refuse to make the application over the prescribed
time limit are not allowed to contract business related to the inspection, appraisal and certification of import and export commodities.

Article 14

Local departments of foreign trade and economic cooperation shall seek the agreement of local bureaus of import and export commodities
inspection before they approve enterprises with foreign investment engaging in consulting services related to the inspection, appraisal
and certification of import and export commodities. The approved cases have to be reported to MOFTEC and SCIA for record.

Article 15

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