Article 1 These Regulations are formulated for the purposes of strengthening the administration of urban roads, guaranteeing urban roads in good condition, giving full play to the function of urban roads and promoting the urban economy and social development.
Article 2 For the purpose of these Regulations, the term “urban road” shall mean either urban roads and bridges providing passage to vehicles and passengers and with certain technical conditions or attached facilities of such roads and bridges.
Article 3 These Regulations shall apply to the planning, building, maintenance, repair and the administration of urban roads.
Article 4 The administration of urban roads shall follow the principles of unified planning, building complete network, coordinate development and laying equal stress on building, maintenance and administration.
Article 5 The state shall encourage and support the research in urban road science and technology, spread advanced technology and raise the scientific and technical level with regard to the administration of urban roads.
Article 6 The administrative department for construction of the State Council shall take charge of the administration of urban roads throughout the country.
The administrative department for urban construction of people’s governments of provinces and autonomous regions shall be responsible for the administration of urban roads within their respective regions.
The administrative department for municipal engineering of municipal people’s governments at and above the county level shall be responsible for the administration of urban roads within their respective regions. Chapter II Planning and Building
Article 7 Municipal people’s governments at and above the county level shall organize the departments of municipal engineering, city planning, public security and communications, etc. to work out a planning for the development of urban roads in accordance with the general city planning.
The administrative department for municipal engineering shall, in accordance with the planning for the development of urban roads, make an annual plan for the building of urban roads and implement the plan after it has been approved by the municipal government.
Article 8 The funds for the building of urban roads may, in accordance with relevant provisions of the state, be raised through various channels such as government investment, pooling resources, domestic or external loans, income from compensated use of state-owned land and issuing bonds.
Article 9 The building of urban roads shall comply with the technical standards of urban roads.
Article 10 In case government invests to build an urban road, the construction shall be organized by the administrative department for municipal engineering in accordance with the planning for the development of urban roads and the annual plan for the building of urban roads.
The building of urban roads through investment by units shall be consistent with the planning for the development of urban roads and must be submitted to the administrative department for municipal engineering for approval.
The building of roads in urban residential quarters or development areas shall be incorporated in the plan for the development and construction of the residential quarter or development area as a necessary part of the plan.
Article 11 The state encourages domestic and foreign enterprises, other organizations and individuals to make investment in the building of urban roads in accordance with the planning for the development of urban roads.
Article 12 The plans for the installation of various pipes and lines and pole lines attached to urban roads for urban drainage, supply of water, gas, heating power and electricity, communications and fire fighting, etc. shall be coordinated with the planning for the development of urban roads and the annual plan for the building of urban roads. Such facilities shall be installed in step with the building of urban roads by following the principle of underground operations first.
Article 13 In case a newly built urban road intersects with a main railway line, the relevant city planning shall, in the light of the need, leave space for the future construction of overpass installations.
Intersections of urban roads and railway lines shall be constructed in accordance with the state’s technical standards, and overpass installations shall be built at such intersections step by step in the light of the need. The investment needed for the construction of overpass installations shall be determined through consultation by relevant departments according to relevant provisions of the state.
Article 14 Bridges over and tunnels under rivers shall be built in accordance with the state’s flood control standards, navigation standards and other relevant technical standards.
Article 15 Municipal people’s governments at and above the county level shall, in accordance with the technical standards for urban roads and in a planning way, rebuild and broaden junctures of urban roads and highways, and the department for highway administration may give financial support in accordance with relevant provisions of the state.
Article 16 A unit engaging in design or building of urban roads must have a qualification degree and take on corresponding design or building of urban roads in accordance with its qualification degree.
Article 17 Urban roads shall be designed and built in strict accordance with the national and local technical standards for urban road design and building.
A system for supervision of construction quality shall be adopted in urban road building.
Urban roads may be open to traffic only after passing the inspection; those without inspection or failing to pass the inspection may not be open to traffic.
Article 18 A guarantee system shall be adopted to urban roads. The guarantee period for urban roads shall be a year, counting from the date of its opening to traffic. The relevant unit shall be responsible for any construction quality problem arising within the guarantee period.
Article 19 With respect to large-scale bridges and tunnels built with loans or pooling resources, the administrative department for municipal engineering may, within a certain period, charge tolls from passing vehicles (excluding military vehicles). Tolls charged may not be used for purposes other than repaying the loans or pooling resources.
The scope and period for charging tolls shall be determined by the people’s government of province, autonomous region or municipality directly under the central government. Chapter III Maintenance and Repair
Article 20 With regard to urban roads built under its own organization and under its own administration, the administrative department for municipal engineering shall, in the light of the grades and amount or number of the urban roads as well as the maintenance and repair quotas, fix the financial appropriations annually for the maintenance and repairs, and arrange the maintenance and repair funds in a unified way.
Article 21 Units undertaking to maintain and repair urban roads shall strictly implement the technical norms for urban road maintenance and repair, conduct the maintenance and repair regularly and ensure the quality of the maintenance and repair works.
The administrative department for municipal engineering shall carry out supervision over and inspection on the quality of the maintenance and repair works, and ensure the urban roads in good condition.
Article 22 The maintenance and repair of urban roads built under the organization and under the administration of the administrative department for municipal engineering shall be entrusted to an urban road maintenance and repair unit(s) by said department. Urban roads built with investment by a unit and under the control of the same unit shall be maintained and repaired by the investing unit or other units entrusted by the investing unit. Roads in residential quarters and development areas shall be maintained repaired by the construction unit or other units entrusted by the construction unit.
Article 23 Checkwells and case lids installed on urban roads for various pipes and lines and the attached facilities of urban roads shall conform to the standards for urban road maintenance. In case where any of them is damaged or missing resulting in being harmful to traffic and safety, the relevant post_title unit shall supply the missing or repair the damages in good time.
Article 24 Urban road maintenance and repair works shall be completed within prescribed periods and clear signs and protective walls shall be put and set up on the operation sites so as to ensure the safety of pedestrians and traffic.
Article 25 Vehicles special for urban road maintenance and repair shall bear a uniform symbol; when carrying out tasks, they are not subject to restrictions on routes or directions so long as the traffic safety is ensured and the traffic can be kept going. Chapter IV Road Administration
Article 26 When performing duties, personnel with duties of road administration of the administrative department for municipal engineering shall, in accordance with relevant provisions, wear a badge and hold the certificate.
Article 27 The following acts shall be forbidden on urban roads:
(1) occupy or dig urban roads without authorization;
(2) caterpillar tractors, iron-wheel tractors or trailers or overweight, overheight or overlength vehicles’ going on urban roads without authorization;
(3) motor vehicles’ testing brakes on bridges or non-designated urban roads;
(4) construct buildings or structures on urban roads without authorization;
(5) erect along bridges gas pipes with a pressure of 4 kg./ sq.cm. (0.4 megopascal) or power lines with high-tension of more than 10 Kv. or other inflammable or explosive pipes or lines;
(6) put billboards or hang suspended articles on bridges or road lamp installations without authorization; or
(7) other activities damaging or occupying urban roads.
Article 28 Where any caterpillar tractor, iron-wheel tractor or trailer or any overweight, overheight or overlength vehicle needs to go through urban roads, a permit shall be obtained in advance from the administrative department for municipal engineering, and the vehicle shall go through at the time and along the route designated by the department for administration of public security and communications.
Military vehicles which need to go through urban roads when performing duties are not subject to provisions of the preceding paragraph, but shall take safety and protective measures in accordance with relevant provisions.
Article 29 Only with the approval of the administrative department for municipal engineering may pipes, lines or pole lines be built attaching to urban roads.
Article 30 Without the approval of the administrative department for municipal engineering and the department for the administration of public security and communications, no unit or individual may occupy or dig urban roads.
Article 31 When there is a need to temporarily occupy any urban road due to some special reasons, an approval must be obtained from the administrative department for municipal engineering and the department for the administration of public security and communications. Only with such approval may the urban road be occupied in accordance with relevant provisions.
Those approved to temporarily occupy an urban road may not damage the urban road and shall, upon the expiration of the occupation, immediately clean up the occupied site and make the urban road restore to the original state; those having made damages to the urban road shall make renovation or give compensation.
Article 32 Municipal people’s governments shall strictly control occupying urban roads as fair grounds.
When there is really a need to occupy urban roads as fair grounds, an approval shall be obtained from the municipal people’s government at or above the county level; those occupying urban roads as fair grounds without authorization shall be ordered, by the administrative department for municipal engineering, to evacuate and clean up the occupied urban roads and make them restore to functions.
The existing occupations of urban roads as fair grounds starting before the implementation of these Regulations without the approval of the municipal people’s government at or above the county level shall go through the procedures for examination and approval in accordance with provisions of these Regulations.
Article 33 Those who are to dig urban roads for some engineering operation shall go through the procedures for examination and approval with the administrative department for municipal engineering and the department for the administration of public security and communications by producing the approval documents issued by the city planning department and relevant design papers. Only with the approval of the administrative department for municipal engineering and the department for the administration of public security and communications can the urban roads be dug in accordance with relevant provisions.
Urban roads newly built, broadened or rebuilt may not be dug within five years from its opening to traffic and urban roads having urdergone big repair may not be dug within three years from the completion of the repair; when there is a need to make digging due to some special reasons, an approval shall be obtained from the municipal people’s government at or above the county level.
Article 34 When any pipe or line buried under urban roads has broken down and needs rush repair, the urban road may be dug and rush repair conducted immediately and, in the meanwhile, a report shall be submitted to the administrative department for municipal engineering and the department for the administration of public security and communications and the procedures for approval shall be gone through within twenty-four hours.
Article 35 Those approved to dig urban roads shall put clear signs and set up protective walls on the operation sites and, after the completion of the operation, immediately clean up the sites and notify the administrative department for municipal engineering for inspection.
Article 36 Those approved to occupy or dig urban roads shall make the occupation or digging at the approved location and within the approved area and period. When there is a need to change the location or extend the area or period, they shall go through in advance the procedures for approving the changes.
Article 37 Those occupying or digging urban roads under the administration of the administrative department for municipal engineering shall pay fees for the occupation or renovation-after-digging of urban roads to the said department.
The schedule of fees for occupation of urban roads shall be drawn up by the administrative department for construction of the people’s government of province or autonomous region or by the administrative department for municipal engineering of the people’s government of municipality directly under the central government, and submitted to the departments of finance and price control at the same level for ratification. The schedule of fees for renovation-after-digging of urban roads shall be formulated by the administrative department for construction of the people’s government of province or autonomous region or by the administrative department for municipal engineering of the people’s government of municipality directly under the central government, and submitted to the departments of finance and price control at the same level for filing.
Article 38 The administrative department for municipal engineering may, in the light of the need of municipal construction or other special needs, make decision with regard to temporary occupation of urban roads by units or individuals to reduce the area of occupation, shorten the period of occupation or stop the occupation and, in accordance with the actual situation, refund some of the fees already paid for the occupation. Chapter V Penalty Provisions
Article 39 If anyone commits any of the following acts in violation of these Regulations, the administrative department for municipal engineering shall order them to suspend the design or building and make corrections within a prescribed time limits, and may impose a fine up to 30,000 yuan or, when circumstances are serious, suggest to the department issuing the credentials for design or building that such credentials be revoked, if they have already been issued:
(1) undertake to design or build urban roads without qualifications for design or building or beyond their qualification degree for design or building;
(2) fail to design or build urban roads in accordance with the technical standards for design or operation; or
(3) fail to conduct operations in accordance with design drawings or alter the design drawings without authorization.
Article 40 If anyone violates the provisions of Article 17 of these Regulations by using without authorization urban roads that have not been inspected or fail to pass the inspection, the administrative department for municipal engineering shall set a time limit for correction and give a warning and may concurrently impose a fine up to two percent of the cost of the works.
Article 41 If any unit engaging in urban road maintenance and repair violates the provisions of these Regulations and fails to conduct regular maintenance and repair or fails to complete the repairs within the prescribed time limits and refuse to accept the supervision and inspection by the administrative department for municipal engineering, the administrative department for municipal engineering shall set a time limit for correction, give a warning, and impose a disciplinary sanction to the person in charge directly responsible and other person directly responsible.
Article 42 If anyone violates the provisions of Article 27 of these Regulations or commits any of the following acts, the administrative department for municipal engineering or other relevant department shall set a time limit for correction and may impose a fine up to 20,000 yuan, or if any losses have been caused, the party responsible shall bear the responsibility for compensation:
(1) fail to supply or repair in good time the missing or damages of checkwells or case lids of various pipes or lines on urban roads or facilities attached to urban roads;
(2) fail to put clear signs or set up protective walls on the urban road operation sites;
(3) fail to clean up the urban roads after the occupation or digging of urban roads;
(4) install various pipes, lines or pole lines attaching to urban roads without going through procedures for approval in accordance with provisions;
(5) fail to go through the procedures for approval in accordance with relevant provisions after a rush repair of pipes or lines buried under urban roads; or
(6) fail to comply with the approved location, area or period in occupying or digging urban roads, or change the location or extend the area or period without going through the procedures for approval in advance.
Article 43 Those violate provisions of these Regulations and commit a crime shall be investigated for criminal responsibility by the judicial organ; if the circumstances are not serious enough to constitute a crime but a penalty for public security should be given, a penalty shall be imposed in accordance with provisions of the Regulations on Administrative Penalties for Public Security.
Article 44 Personnel of the administrative department for municipal engineering who commit a crime by neglecting duties, abusing powers or playing favoritism and committing irregularities shall be investigated for criminal responsibility or, if the circumstances are not serious enough to constitute a crime, be given a disciplinary sanction in accordance with the law. Chapter VI Supplementary Provisions
Article 45 These Regulations shall go into effect on October 1, 1996.
Decree of the State Council of the People’s Republic of China
No.206
Regulations for the Implementation of the Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine
are hereby promulgated and shall come into force as of the day of July 1, 1997.
Premier of the State Council, Li Peng
December 2, 1996
Regulations for the Implementation of the Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine
Chapter I General Provisions
Article 1
These Regulations are formulated in accordance with the provisions of the “Law of the People’s Republic of China on the Entry and
Exit Animal and Plant Quarantine” (hereinafter referred to as the Law on the Entry and Exit Animal and Plant Quarantine).
Article 2
The following objects shall be subject to quarantine in accordance with the provisions of the Law on the Entry and Exit Animal and
Plant Quarantine and those of these Regulations:
(1)
Entry, exit or transit animals and plants, their products and other quarantine objects;
(2)
Containers, packaging materials and bedding materials used for carrying animals and plants, their products or other quarantine objects;
(3)
Means of transport from an animal and plant epidemic area;
(4)
Waste vessels for dismantling after entry; and
(5)
Other goods and items subject to entry and exit animal and plant quarantine according to provisions of relevant laws, administrative
regulations and international treaties or as agreed upon in trade contracts.
Article 3
The department of agriculture administration under the State Council shall be in charge of the entry and exit animal and plant quarantine
in the whole country.
The Bureau of Animal and Plant Quarantine of the People’s Republic of China (hereinafter referred to as the State Bureau of Animal
and Plant Quarantine) shall exercise unified control over the entry and exit animal and plant quarantine in the whole country, collect
information on major animal and plant epidemics at home and abroad and be responsible for international cooperation and exchanges
in entry and exit animal and plant quarantine.
The State Bureau of Animal and Plant Quarantine shall establish port animal and plant quarantine organs in open ports and at places
where there is concentration of entry and exit animal and plant quarantine operations, and perform entry and exit animal and plant
quarantine according to the provisions of the Law on the Entry and Exit Animal and Plant Quarantine and these Regulations.
Article 4
In the event that a serious animal or plant epidemic occurs outside the territory and is liable to spread into the country; the following
emergent preventive measures shall be adopted in the light of the prevailing conditions:
(1)
The State Council may take control measures in the border regions concerned and may, when necessary, order the ban of entry of means
of transport from the animal and plant epidemic area or seal the ports concerned;
(2)
The department of agriculture administration under the State Council may publish catalogues of animals and plants, their products
and other quarantine objects the entry of which shall be banned from the country or region where there is an animal or plant epidemic;
(3)
The port animal and plant quarantine organs concerned may take emergent quarantine measures with regard to the entry objects likely
contaminated by epidemics or pests as listed in Article 2 of these Regulations; and
(4)
The local people’s governments of the areas under the threat of animal or plant epidemic may immediately call the departments concerned
to work out and implement emergent plans, and simultaneously report to the people’s governments at a higher level and the State Bureau
of Animal and Plant Quarantine.
The departments of posts and telecommunications and departments of transportation shall give top priority to transmitting or transporting
reports concerning serious animal or plant epidemics or materials to be sent for quarantine inspection.
Article 5
Entry of animals and plants, their products and other quarantine objects for either official use or private use by foreign organizations
and personnel enjoying diplomatic or consular privileges and immunity shall be subject to quarantine in accordance with the provisions
of the Law on the Entry and Exit Animal and Plant Quarantine and those of these Regulations; the port animal and plant quarantine
organs shall comply with the provisions of relevant laws when performing inspection.
Article 6
The customs shall, according to law, coordinate with port animal and plant quarantine organs in exercising supervision and control
over entry and exit animals and plants, their products and other quarantine objects. Specific measures shall be formulated by the
department of agriculture administration under the State Council in conjunction with the General Administration of Customs.
Article 7
The catalogues of animal and plant epidemic areas and countries and regions where there are animal and plant epidemics referred to
in the Law on Entry and Exit Animal and Plant Quarantine shall be determined and published by the department of agriculture administration
under the State Council.
Article 8
Units and individuals that make outstanding achievements in the implementation of the Law on the Entry and Exit Animal and Plant Quarantine
and these Regulations shall be rewarded.
Chapter II Examination and Approval of Quarantine Inspection
Article 9
The State Bureau of Animal and Plant Quarantine or its authorized port animal and plant quarantine organs shall be responsible for
the examination and approval of quarantine inspection with respect to the import of animals, animal products and objects prohibited
from entering the country as listed in Item 1, Article 5 of the Law on Entry and Exit Animal and Plant Quarantine.
The organs prescribed by the Regulations on Plant Quarantine shall be responsible for the examination and approval of quarantine inspection
with respect to the import of plant seeds, seedlings and other propagating materials.
Article 10
Procedures of examination and approval of quarantine inspection for import may be processed when the following conditions are satisfied:
(1)
The exporting country or region has no serious animal or plant epidemic;
(2)
The import of which is in compliance with the provisions of the relevant Chinese laws, regulations and rules on animal and plant quarantine;
and
(3)
The import of which is in compliance with relevant bilateral quarantine agreements (including quarantine agreements and aide-memoires,
same below) signed between and by China and the exporting countries or regions.
Article 11
Procedures of examination and approval of quarantine inspection shall be completed before the signing of the trade contracts or agreements.
Article 12
For entry into the country of plant seeds, seedlings and other propagating materials by carrying or by post, an application shall
be submitted in advance and formalities for the examination and approval of quarantine inspection completed; under extraordinary
circumstances when the formalities cannot be completed in advance, the carrier or sender shall complete the formalities for examination
and approval of quarantine inspection at the port and the same shall be allowed to enter the country upon the consent of the examination
and approval authority and upon quarantine clearance.
Article 13
For request to transport animals in transit, the owner or his or her agent shall submit a written application to the State Bureau
of Animal and Plant Quarantine in advance and present certifications on the epidemic situation issued by the animal and plant quarantine
authority of the government of the exporting country or region, the certificate issued by the animal and plant quarantine organ of
the government of the importing country or region permitting the entry of the same, and illustrate the proposed transit route. The
State Bureau of Animal and Plant Quarantine shall issue an “Animal Transit Permit” upon examination and approval.
Article 14
In respect of special needs for scientific research, when processing the formalities of special examination and approval of quarantine
inspection for objects prohibited from entry as prescribed in paragraph 1, Article 5 of the Law on Entry and Exit Animal and Plant
Quarantine, the consignor, the owner or his or her agent must submit a written application describing quantity, use, mode of entry
and epidemic prevention measures after entry, and enclose the remarks by the port animal and plant quarantine office concerned.
Article 15
If any of the following circumstances occurs after the completion of the formalities of examination and approval of quarantine inspection,
the consignor, owner or his or her agent shall once again apply for the examination and approval of quarantine inspection:
(1)
Change in category or quantity of entry objects;
(2)
Change in the exporting country or region;
(3)
Change in port of entry; or
(4)
Expiration of the validity of the approval of quarantine inspection.
Chapter III Entry Quarantine
Article 16
The quarantine requirements prescribed by China’s law referred to in Article 11 of the Law on Entry and Exit Animal and Plant Quarantine
mean the quarantine requirements prescribed by China’s laws, administrative regulations and the department of agriculture administration
under the State Council.
Article 17
The State shall practice the registration system for production, processing and stockpiling units of animal and plant products abroad
for export to China. The specific measures shall be formulated by the department of agriculture administration under the State Council.
Article 18
For the import of animals or plants, their products or other quarantine objects, the owner or his or her agent shall apply to the
animal and plant quarantine office at the place of entry before entry or upon entry for quarantine. In the case of quarantine to
be conducted away from the Customs supervision and control area, the owner or his or her agent shall notify the animal and plant
quarantine office at the port concerned upon arrival of the same at the designated place. In the case of goods being shipped to another
Customs area, the owner or his or her agent shall, upon entry, submit a declaration to the animal and plant quarantine office at
the port of entry, and shall submit the same to the port animal and plant quarantine office at the designated place for quarantine
upon arrival of the same at the designated place.
For the import of stud stock, their sperms or fetuses, application for quarantine shall be submitted 30 days before entry of the same;
for the import of other animals, application for quarantine shall be submitted 15 days before entry of the same; for the import of
plant seeds, seedlings or other propagating materials, application for quarantine shall be submitted 7 days before entry of the same.
For the entry of packaging materials or bedding materials of the nature of animal or plant, the owner or his or her agent shall submit
the declaration to the port animal and plant quarantine office in time; the animal and plant quarantine office may perform quarantine
of the declared objects in the light of specific conditions.
The packaging materials or bedding materials of the nature of animal or plant referred to in the aforesaid paragraph mean the animal
products, plants or plant products used directly as packaging materials or bedding materials.
Article 19
An application form for quarantine shall be filled in when applying for quarantine to the port animal and plant quarantine office,
and the quarantine certificate issued by the animal and plant quarantine office of the government of the exporting country or region,
the certificate of origin, the trade contract, the letter of credit and the invoices, etc. shall be presented; in the case of necessity
of formalities of examination and approval of quarantine inspection according to law, an approval document for quarantine inspection
shall be submitted. For objects without valid quarantine certificate issued by the animal and plant quarantine office of the government
of the exporting country or region or in the case of failure to complete the formalities of examination and approval of quarantine
inspection for the same according to law, the port animal and plant quarantine office may return or destroy the same objects in the
light of the specific circumstances.
Article 20
On arrival at the port of the imported animals or plants, their products or other quarantine objects, the quarantine functionaries
may embark on the means of transport or go to the site of the objects to perform quarantine inspection, to check whether the goods
are in keeping with the certificates, and may collect samples in accordance with regulations. The carrier, the owner or his or her
agent shall submit the list of loading and other relevant information to the quarantine functionaries.
Article 21
On arrival at the port of the means of transport loaded with animals, persons embarking or disembarking the same and persons close
to the animals shall be subject to epidemic prevention disinfections by the port animal and plant quarantine office, and shall carry
out other on-the-spot preventive measures adopted by it.
Article 22
Quarantine functionaries shall perform on-the-spot quarantine according to the following provisions:
(1)
For animals: Check to see whether there are clinical symptoms of an epidemic. Upon discovery of animals suspected to have infected
with infectious diseases or dead animals, the situation shall be verified and dealt with forthwith with the cooperation of the owner
or the escort. For bedding materials, leftover fodder and excretion of animals, the treatment of removal of harmful effects shall
be carried out by the owner or his or her agent under the supervision of the quarantine functionaries.
(2)
For animal products: Check to see whether there are signs of staleness or deterioration and whether the containers and packages are
in perfect condition. For those in line with the required standards, permission shall be granted for unloading from the means of
transport. On discovery of bail-off or broken or cracked containers, permission shall be granted for unloading from the means of
transport only when the owner or his or her agent takes the responsibility upon himself or herself to make them good again. Treatment
of disinfections shall be carried out with regard to the concerned parts of the means of transport as well as the containers, outer
packages, bedding materials and the contaminated sites loading animal products in the light of prevailing circumstances. In case
of necessity of laboratory quarantine, samples shall be collected in accordance with regulations. For animal products liable to breed
plant insects or animal products mixed with concealed weed seeds, simultaneous plant quarantine shall be performed.
(3)
For plants and plant products: Check to see whether the goods and packing contain plant diseases or insect pests and collect samples
as prescribed. On discovery of plant diseases or insect pests which are likely to spread, necessary timely epidemic prevention measures
shall be taken with respect to such goods, the means of transport and the loading-unloading sites. For plant products from the epidemic
area of an animal infectious disease or likely to carry pathogens of animal infectious diseases or parasitic diseases and used as
animal fodder, simultaneous animal quarantine shall be performed.
(4)
For packing and bedding materials of the nature of animals or plants: Check to see whether they carry diseases or insect pests, are
mixed with concealed weed seeds or carry soil with them, and collect samples as prescribed.
(5)
For other quarantine objects: Check to see whether the packing is in perfect condition and whether they are contaminated by diseases
or insect pests. On discovery of breakage or contamination by diseases or insect pests, treatment for the removal of harmful effects
shall be carried out.
Article 23
Inspection shall be carried out at different levels of bulk animal and plant products carried by ships or trains; inability to carry
out on-the-spot inspection in view of limited storage facilities at the port or the railway station, the goods may be unloaded and
transported to the designated place for storage with the consent of the port animal and plant quarantine office. On discovery of
epidemic in the process of unloading, the unloading operation shall be suspended forthwith, and the owner or his or her agent shall
carry out treatment for the removal of harmful effects from the loaded and unloaded goods in accordance with the requirements of
the port animal and plant quarantine office.
Article 24
Imported big or medium-size cattle for breeding purposes shall be quarantined in isolation for 45 days in an isolated animal quarantine
court set up by the State Bureau of Animal and Plant Quarantine; other imported animals shall be quarantined in isolation for 30
days in an isolated animal quarantine court designated by the port animal and plant quarantine office. Control measures for isolated
animal quarantine courts shall be formulated by the department of agriculture administration under the State Council.
Article 25
When the same batch of entry animal or plant products is to be unloaded separately at different ports, the port animal and plant quarantine
office shall only perform quarantine of the goods unloaded at the said port. The port animal and plant quarantine office of the first
unloading port shall notify in time the port animal and plant quarantine offices of other separate unloading ports of the information
on quarantine and treatment; the port animal and plant quarantine office of the last unloading port shall unified issue quarantine
certificates, when they are needed, after gathering all necessary information.
Discovery of epidemic in the process of quarantine inspection at the separate unloading port which requires on-board fumigation or
disinfections, the port animal and plant quarantine office at the said separate unloading port shall unified issue quarantine certificates
and notify in time the port animal and plant quarantine offices at other separate unloading ports.
Article 26
The imported animals and plants, animal and plant products and other quarantine objects shall be quarantined in accordance with the
national or industrial standards of China or the relevant provisions of the State Bureau of Animal and Plant Quarantine.
Article 27
For import animals or plants, animal or plant products or other quarantine objects which pass quarantine inspection, the port animal
and plant quarantine office shall affix its stamp on the Customs declaration form or issue a “Quarantine Clearance Notice”. For goods
which require to be transferred from the Customs supervision and control area at the port of entry for quarantine, the port animal
and plant quarantine office at the port of entry shall issue a “Quarantine Transfer Notice”. The owner or his or her agent shall
go through the formalities of Customs declaration, shipment and delivery on the strength of the stamp affixed by the port animal
plant quarantine office on the Customs declaration form or on the strength of the “Quarantine Clearance Notice” or “Quarantine Transfer
Notice” issued by it. The Customs shall perform inspection on and issue clearance for the import animals or plants, their products
or other quarantine objects on the strength of the stamp affixed by the port animal and plant quarantine office on the Customs declaration
form or the “Quarantine Clearance Notice” or “Quarantine Transfer Notice” issued by it. The departments of transportation and departments
of posts and telecommunications shall effect shipment and delivery on the strength of the aforesaid form and notices and no further
quarantine shall be performed by other quarantine organs in the country during shipment and delivery.
Article 28
For import animals or plants, their products or other quarantine objects that fail to pass quarantine, the port animal and plant quarantine
office shall issue a “quarantine treatment notice”, notifying the owner or his or her agent to carry out treatment for the removal
of harmful effects under the supervision an technical guidance of the port animal and plant quarantine office; the port animal and
plant quarantine office shall issue quarantine certificates for those seeking claims from foreign exporters.
Article 29
The State Bureau of Animal and Plant Quarantine may dispatch quarantine personnel to perform pre-quarantine, supervision over loading
or conduct epidemic investigation in the place of origin according to quarantine requirements and with the agreement of the organs
concerned of the government of the exporting country or region of the animals or plants or their products after consultation.
Article 30
Illegal entry animals and plants, their products and other quarantine objects intercepted and captured by the Customs, border control
departments or other departments shall be handed over to the nearest port animal and plant quarantine office for quarantine.
Chapter IV Exit Quarantine
Article 31
The owner or his or her agent shall provide the trade contract or agreement when going through the formalities of application for
exit quarantine inspection of animals or plants, their products or other quarantine objects according to law.
Article 32
If the importing country requires China to register the production, processing and stockpiling units engaging in export to their country
of animals or plants, their products or other quarantine objects, the port animal and plant quarantine office may practice registration
and report to the State Bureau of Animal and Plant Quarantine for the record.
Article 33
Export animals that need to be placed in isolation for quarantine inspection before exit shall be quarantined in an isolation court
designated by the port animal and plant quarantine office. Export plants, animal or plant products and other quarantine objects shall
be quarantined at the warehouse or depot; they may also be quarantined in the process of production and processing, if necessary.
Exit plants, animal or plant products and other quarantine objects awaiting quarantine inspection shall be complete in quantity, with
perfect packing, neat piling and prominent marks.
Article 34
Quarantine inspection of export animals and plants, their products and other quarantine objects shall abide by:
(1)
Provisions relating to animal and plant quarantine of the importing countries or regions and China;
(2)
Bilateral quarantine agreements;
Regulations for the Implementation of the Law of the People’s Republic of China on Entry and Exit Animal and Plant Quarantine
(3)
Quarantine requirements clearly defined in the trade contracts.
Article 35
The following procedures shall be followed with respect to animals or plants, their products or other quarantine objects that have
passed quarantine inspection by the animal and plant quarantine office at the place of consignment upon arrival at the port of exit:
(1)
Animals shall be subject to clinical quarantine or re-quarantine by the port animal and plant quarantine office at the point of exit;
(2)
For exit plants, animal or plant products or other quarantine objects with original means of transport from the place of consignment,
clearance shall be given by the exit port animal and plant quarantine office upon examination of the certificates; for those that
change the means of transport for exit, clearance shall be given upon change of certificates; and
(3)
For plants, animal or plant products or other quarantine objects to be repackaged upon arrival at the exit port, or different quarantine
requirements to be followed as a result of change of the importing country or region, or those that exceed the prescribed validity
of quarantine, a fresh application for quarantine inspection shall be submitted.
Article 36
When export animals or plants, their products or other quarantine objects which have passed the quarantine inspection of the port
animal and plant quarantine office at the place of consignment are to be transported to the exit port, the departments of transportation
and departments of posts and telecommunications shall effect shipment and delivery on the strength of the quarantine certificate
issued by the port animal and plant quarantine office at the place of consignment, and no further quarantine shall be performed by
other quarantine organs in the country.
Chapter V Transit Quarantine
Article 37
The transit (including trans-shipment, same below) of animals or plants, their products or other quarantine objects requires the carrier
or escort to submit the shipping document and the certification issued by the animal and plant quarantine organ of the government
of the exporting country or region to the port animal and plant quarantine office at the port of entry for quarantine inspection;
for transit of animals, an “Animal Transit Permit” issued by the State Bureau of Animal and Plant Quarantine shall be presented in
addition.
Article 38
On arrival of transit animals at the entry port, the entry port animal and plant quarantine office shall carry out treatment of disinfections
of the means of transport, the outside of the containers and perform clinical quarantine of the animals, and those having passed
the quarantine inspection shall be permitted to transit. The entry port animal and plant quarantine office may send out quarantine
personnel to supervise the shipment to the exit port whose animal and plant quarantine office shall perform no further quarantine
inspection.
Article 39
The means of transport, packing and containers carrying transit plants, animal and plant products and other quarantine objects must
be in perfect condition. In the case of discovery, upon inspection by the port animal plant quarantine office, of the possibility
of disintegration or leakage in transit of the means of transport, the packing or containers, the carrier or escort shall adopt sealing
measures as required by the port animal and plant quarantine office; there shall be denial of transit for inability to take sealing
measures.
Chapter VI Quarantine of Materials Carried by Passengers or by Post
Article 40
Any plant seeds, seedlings or other propagating materials carried or posted into the country without going through the formalities
of examination and approval of quarantine inspection in accordance with law, shall either be returned or destroyed by the port animal
and plant quarantine office. Reasons for the return of the postal matter shall be given on the said postal matter and its delivery
notice by the port animal and plant quarantine office; for the postal matter to be destroyed, the port animal and plant quarantine
office shall issue a notice to the sender.
Article 41
Whoever enters the country carrying animals or plants; animal or plant products or other quarantine objects must declare at the Customs
and accept quarantine inspection by the port animal and plant quarantine office upon entry. The Customs shall hand over the animals
or plants, animal or plant products or other quarantine objects declared or intercepted upon inspection to the port animal and plant
quarantine office in time for quarantine inspection. No object shall be carried into the country without quarantine inspection.
Article 42
The port animal and plant quarantine offices may carry out on-the-spot inspections in the passenger passage ways or at the baggage
collection points at ports, airports, railway or coach stations, by making inquiries and carrying out sample inspection of the articles
of those who may carry animals or plants, animal or plant products or other quarantine products without declaration, or carrying
out inspection by opening the packages (cases) when necessary.
Animal and plant quarantine inspection counters with marks shall be set up at the inspection site of entry and exit passengers.
Article 43
Whoever carries animals into the country must possess a quarantine certificate issued by the animal and plant quarantine organ of
the government of the exporting country or region and clearance shall be given upon passing the quarantine inspection; those who
carry dogs, cats or other pets into the country must hold a vaccination certificate in addition. For objects without quarantine certificates
or vaccination certificates, the port animal and plant quarantine offices shall direct that either the said objects be returned within
a specified time limit or be confiscated and destroyed. For objects to be returned within a specified time limit, those who carry
the objects must receive and carry the same out of the country on the strength of the interception and detention voucher issued the
port animal and plant quarantine office within the specified time; failure to receive them within the specified time limit shall
be deemed as voluntary abandonment.
Any plants, animal or plant products or other quarantine objects carried into the country shall be cleared therewith upon passing
on-the-spot quarantine inspection; for those which need to be either clinically quarantined or quarantined in isolation, the port
animal and plant quarantine office shall issue an interception and detention voucher. For those having passed the interception quarantine,
the carrier shall, on the strength of the interception and detention voucher, receive them from the port animal and plant quarantine
office; failure to receive the same within the specified time limit shall be deemed as voluntary abandonment.
Animals and plants, animal and plant products and other quarantine objects listed in the catalogues specified in Article 29 of the
Law on the Entry and Exit Animal and Plant Quarantine shall be prohibited from being carried or posted into the country.
Article 44
Animals or plants, animal or plant products or other quarantine objects posted into the country shall be quarantined by the port animal
and plant quarantine office at the International Postal Exchange Bureau (including international postal express delivery companies
and other units engaged in international postal operations, hereinafter referred to as the post offices). The post offices shall
provide the necessary facilities for the work.
For objects passing the quarantine inspection, the port animal and plant quarantine office shall affix the quarantine inspection clearance
stamp on them and hand them over to the post offices for transportation and delivery. For those needing to be clinically quarantined
or quarantine inspected in isolation, the port animal and plant quarantine office shall go through the formalities of handing-over
and taking-over with the post offices; those passing quarantine inspection shall be affixed a quarantine inspection clearance stamp
and handed over to the post offices for transportation and delivery.
Article 45
Animals or plants, animal or plant products or other quarantine objects carried or posted into the country, which fail in quarantine
inspection and defy effective treatment for the removal of harmful eff
Relevant Provisions Governing the Accounting Treatment as Contained in Rules for the Implementation of the Businesses of Foreign Exchange
Settlements, Sales and Payments of Foreign-capital Banks
the People’s Bank of China
June 18, 1996
These Provisions concerning the issues related to the opening of separate-purpose RMB accounts by the foreign banks operating in the
various parts of China are formulated in accordance with the Rules for the Implementation of the Businesses of Foreign Exchange Settlements,
Sales and Payments of Foreign-capital Banks (hereinafter referred to as the Rules for Implementation).
l.
The special RMB accounts for foreign exchange settlement and sale by foreign banks shall be set up under Heading 0109 for Foreign
Banks’ Deposits and the heading has been turned into a heading for both foreign currencies and the RMB.
2.
When opening the special RMB accounts for the settlement and sale of foreign exchange by foreign banks, the People’s Bank of China
shall, in accordance with the Measures for Accounts Administration and the relevant provisions in Article 8 of the Rules for Implementation,
appraise the relevant documents, and shall, in addition to the routine check up of the accounts at the close of each business day,
focus its attention on examining whether the balances in the deposit accounts exceed the amounts stipulated by the State General
Administration of Foreign Exchange Control.
3.
The interest on the deposits of foreign banks in their special RMB accounts for foreign exchange settlement and sale shall be paid
on the basis of the interest rate for the deposits of financial institutions in the People’s Bank of China.
4.
The exchange of financial instruments within the same city which the People’s Bank of China organizes for foreign banks shall be handled
in line with the methods for the exchange of financial instruments conducted in the same city by the local branches of the People’s
Bank of China.
5.
The attached overleaf is the format of the RMB Special Vouchers that foreign banks shall use for foreign exchange settlement and sale.
Circular of the General Office of the State Council on Transmitting Suggestions of the State Planning Commission and the State Science
and Technology Commission on Further Promoting the Implementation of the China Agenda for the 21St Century
The State Council has agreed to the Suggestions of the State Planning Commission and the State Science and Technology Commission on further Promoting the Implementation of the China Agenda for the 21st Century, and hereby transmits it to you for your conscientious implementation in the light of local and departmental situations. APPENDIX: SUGGESTIONS ON FURTHER PROMOTING THE IMPLEMENTATION OF THE CHINA AGENDA FOR THE 21ST CENTURY
With a view to conscientiously implementing the gist of the Fifth Plenary Session of the 14th Central Committee of the Party and the Fourth Session of the Eighth National People’s Congress, carrying out the prescriptions of the Circular of the State Council on the Implementation of the China Agenda for the 21st Century, the White Book of China on Population, Environment and Development in the 21st Century, and further promoting the execution of the China Agenda for the 21st Century, the following suggestions are hereby put forward:
1. to make the sustainable development an important strategy in the construction of modernization
(1) Sustainable development means that consideration should be given to the needs for both present and future development and development in the interest of the present generation should not be achieved at the expense of future generation’s interests. Sustainable development also means coordinated development of population, economy, society, resources and environment, that is to say, while the goal of economic development is pursued, natural resources and environment on which the human beings rely for existence should be protected so that our future generations could enjoy the development forever, live in harmony and work contentedly.
(2) The approach of sustainable development is a inevitable choice for our country’s construction of modernization. Our country has a large population. Per capita resources are of a small quantity. Economy and technology are at relatively low level. With the growth of population and the development of economy, many places suffer from serious environmental pollution and worsening of ecological environment. Therefore, great value should be attached to population control, resources saving and environmental protection. The growth of population should conform with the development of social productivity. In this way economic construction and social progress could be coordinated with population, resources and environment, and a virtuous cycle could be realized.
(3) The China Agenda for the 21st Century has laid down, in the light of our country’s circumstances, general strategies, policies and executive programmes for sustainable development, and is an instructive document for smooth development of our economy and society into the 21st century. The strategy of sustainable development is of significant value for economic, social development and even for the whole modernization construction over the next 15 years.
2. to realize the China agenda for the 21st Century so as to promote the basic transformations of economic system and economic growth form
(1) Both the Fifth Plenary Session of the 14th Central Committee of the Party and the Fourth Session of the Eighth National People’s Congress emphasized the point that the future work on economy shall ensure for two basic transformations of economic system and economic growth form that are of overall significance. Under the socialist market economy system, giving full play to the basic role of the market in resources distribution will help raise the efficiency of resources exploitation and reduce material consumption and is therefore beneficial to environmental and resources protection. On the other hand, the spontaneity and blindness of the market will to some extent hamper the coordinated development of economy, resources and environment. In the course of the implementation of the China Agenda for the 21st century, full play should be given to the basic role of the market in resources distribution while macro-control shall also be strengthened so as to promote the basic transformation of economic system and economic growth form.
(2) The implementation of the China Agenda for the 21st Century shall be combined with carrying out the gist of the Fifth Plenary Session of the 14th Central Committee of the Party and the Fourth Session of the Eighth National People’s Congress. Establishment of such an enterprise operational system should be promoted that helps save resources, reduce consumption, increase efficiency and improve environment, as well as establishment of a technological advance mechanism that conduces to self reliance, and an economic operational mechanism that encourages fair competition on market and optimum distribution of resources. By this way the economy and society of our country could be advanced to the pattern of sustainable development.
(3) The China Agenda for the 21st Century emphasizes the positive role of technological advance in the fields of population, economy, society, resources and environment. Each locality and each department should attach great importance to the work of technological advance and adopt vigorous measures to promote transformation of scientific and technological achievements and development of technology in respect of clean production, clean sources of energy and effective utilization of energy resources as well as technology of rational resources exploitation, comprehensive resources utilization and environmental protection. Much effort should be made to do soft science research on key construction projects, regions and industries in order to lend scientific and technological support to people’s governments at different levels in economic and social administration.
(4) The principle of practising economy at the same time of exploiting resources should be followed in economic and social development. Saving of land, water, energy, raw materials and food must be required in production, construction, circulation, consumption and other activities. Occupation and consumption of resources should be reduced by every possible means and efficiency of use of resources, energy and raw materials be raised by a big margin, and pollution arising from production be reduced and eliminated. Each locality and each department shall, in accordance with the requirements for sustainable development and within the framework of the Ninth-Five-Year Plan on National Economy and Social Development and Outlines of Long-Term Objectives in Perspective of the Year 2010, formulate detailed programmes and measures for economizing on resources by stages and implement them seriously in their routine duties.
(5) People’s governments at different levels shall regard the implementation of the sustainable development strategy as a major means to transform agricultural growth form. By combining this task with the construction of agricultural, forestry and hydraulic infrastructure and the popularization of “high yield, quality and efficiency” engineering and ecological agriculture, they could adjust the agricultural structure, optimize the combination of productive elements, step out the application of scientific and technological achievements for agricultural development, protect agricultural ecological environment, promote the sustainable utilization of agricultural resources and advance comprehensive agricultural productive forces for the purpose of lead agriculture to a sustainable development path.
(6) People’s governments at different levels should conscientiously observe laws and regulations on resources management and environmental protection, reinforce enforcement of law, take different and effective measures to strictly control occupation of arable land by construction, prevent from desertization of land and deterioration of grassland, strenuously enlarge coverage of forest vegetation, rationally utilize and protect water and marine resources, and gradually improve ecological environment. Control over environmental pollution in cities and towns shall be strengthened, especially in seriously polluted cities or districts which should be the focal points of work, with a view to ensuring the realization of objectives on environmental protection as laid down in the Ninth-Five-Year Plan on National Economy and Social Development and Outlines of Long-Term Objectives in Perspective of the Year 2010.
3. to introduce the basic gist and contents of the China Agenda for the 21st Century into all regional and departmental plans for national economy and social development
(1) All localities and departments should, in accordance with the requirements of the State Council, include the basic gist and contents of the China Agenda for the 21st Century in their respective regional or departmental plan for national economy and social development, and, in the light of their own characteristics and major issues they are faced with, make detailed action programmes for sustainable development.
(2) The China Agenda for the 21st Century should be carried out by stages through national economy and social development planning. People’s governments at different levels and relevant departments of the State Council should vigorously create conditions and render priority to major projects for fixed assets investment that are conducive to the realization of sustainable development strategy. Examination and approval of fixed assets investment shall be conducted in terms of requirements of sustainable development strategy. Those that do not meet the requirements should be modified and improved, and may not be granted approval otherwise.
(3) People’s governments at different levels and relevant departments of the State Council should take into full consideration the requirements of sustainable development proposed in the China Agenda for the 21st Century when making decisions concerning social development and economic growth, and make assessment on economic and social development policies and plans in terms of strategic ideas of sustainable development so as to avoid gross mistakes.
(4) All localities should construct cities and towns under the guidance of sustainable development strategy. They should properly continue their trials and go on to do more comprehensive experiments with sustainable development strategy, on selected administrative districts of a new group of small-, medium- and large-sized towns and cities, which boast relative economic strength and have typical and representative value as models so that a city development pattern with Chinese characteristics could be found out. During the course of trials, special attention should be paid to sustainable development of impoverished regions.
(5) All localities and departments should strengthen leadership over the implementation of the China Agenda for the 21st Century, specify administrative organs held responsible for the work within their jurisdiction and improve the comprehensive coordination competence. They should arrange necessary funds for the implementation of the China Agenda for the 21st Century and provide necessary working conditions.
4. to inspire the sustainable development ideology in all the people and to establish and perfect corresponding mechanisms
(1) Education on sustainable development strategy should be strengthened. Educational departments at different levels should introduce the strategic ideology of sustainable development into the whole education process from primary to higher learning. Primary and high schools should have such contents as population control, sustainable application of resources and environmental protection included in relevant courses and after-class readings. The subject of sustainable development should be listed in the curriculum of higher education and adult education.
(2) Publicity and dissemination of sustainable development science and technology should be strengthened. The State Planning Commission and the State Science and Technology Commission should as soon as possible compile popular readings on the China Agenda for the 21st Century. People’s governments at different levels should make plans for dissemination, make full use of local mass media such as television, film, broadcasting, newspapers, journals and books to vigorously spread the strategic ideology of sustainable development. They should also organize, in conjunction with the Five-Ones-Project for socialist spiritual civilization construction, the creation of a group of excellent works to demonstrate the strategic ideology of sustainable development. Different academic departments and research societies should mobilize experts and academicians to participate in popularization of the sustainable development strategy.
(3) Management cadres, particularly leading cadres at different levels should be trained with sustainable development theories. Different regions and departments should, through cadre training schools, workshops and lectures etc., inspire the China Agenda for the 21st Century into cadres at different levels so that they could improve knowledge and understanding of sustainable development strategy.
(4) Relevant statutes and policies regarding sustainable development strategy should be considered, formulated and revised. Research on theories of sustainable development should be conducted and an information system of international connection should be gradually developed. Where conditions permit, localities or departments may, in the light of their practical circumstances, design a sustainable development index and try its application within the localities or departments. In the course of the implementation of the China Agenda for the 21st Century, different regions and department should strengthen information communication and exchange of experiences.
(5) Relevant mechanisms should be established so as to guarantee the smooth execution of the China Agenda for the 21st Century. A series of management procedures should be studied, formulated, improved and perfected, including procedures through which the strategic ideas of sustainable development could be absorbed by decision-making processes, and procedures regarding the assessment of economic and social development policies and projects in terms of sustainable development requirements. By this way relevant contents of the China Agenda for the 21st Century could be smoothly executed. Where conditions permit, reports on national economy and social development should also include a special topic on the assessment of implementation of the China Agenda for the 21st Century. Planning administrative organs of different departments and local people’s governments shall be held in charge of overall assessment of sustainable development.
5. to strengthen international cooperation to facilitate the execution of the China Agenda for the 21st Century
(1) Sustainable development is an inevitable requirement for development of human society, and has become a major common concern of international community. With sustainable development being now a hot field for international cooperation, different localities and departments should take full advantage of the opportunity and, through wide propaganda, broaden international cooperation channels so as to pursue international aid and support, extensively attract foreign investment, and facilitate the implementation of the China Agenda for the 21st Century.
(2) Attempts for international cooperation should reflect the point that our country highly values the strategy of sustainable development. Relevant model projects and construction projects intended to improve our country’s competence for sustainable development should be included in different national plans for international cooperation.
Decision of the State Council Concerning the Deepening of the Reform of the Science and Technology Management System During the “Ninth
Five-year Plan” Period
(September 15, 1996)
Since the issuance of the “Decision on the Reform of the Science and Technology Management System” by the Central Committee of the Communist Party of China in 1985, the scientific and technological circles have, after over ten years of exploration and successful practice, pioneered and created a new situation of vigorous development of science and technology as primary productive forces, breaking the erstwhile single and closed planned management system, effecting a change in the dislocated status of science and technology and economy, and gradually enhancing the role of the socialist market economy system in the operations of science and technology. Majority of the scientific research institutions of the technological development type have embarked on the road of independent development with their operations based on market mechanisms and oriented toward economic construction. Most scientific and technological forces have entered into the main battlefield of economic construction in diverse forms. The spirit of patriotism of the broad masses of scientific and technological workers has been fully reflected in the reform of the science and technology management system in their conscious and active participation in the reform with a view to achieving the goals of the national development strategy. However, owing to various reasons, a fuller play has not been given yet to the key role of science and technology as primary productive forces in economic construction and social development. The general layout of the science and technology management system has yet to be perfected. Total scientific and technological input is inadequate. Disposition of scientific and technological resources is not sufficiently rational. Repetition in the establishment of scientific research institutions, dispersion of scientific and technological forces and irrational structures in specialties and qualified personnel have not been resolved satisfactorily. The overall superiority of science and technology and scientific and technological reserve have to be enhanced. The “Ninth Five-Year Plan” period is a key period in our country for the all-round completion of the second step of the strategic disposition in modernization. To realize the two basic transformations in the economic system and in the mode of economic growth, and to implement the strategy of reinvigorating our country through science and education and the sustainable development strategy, the work of science and technology should serve economic construction and social development in a better way, and make contributions to the resolution of hot and difficult problems in economic construction and social development and to the improvement in quality in economic growth. In pursuance of the spirit of “deepening the reform of the science and technology management system” as prescribed in the “Decision of the Central Committee of the Communist Party of China and the State Council Concerning the Acceleration of Advancement of Science and Technology”, the following decision is hereby made concerning the question of deepening the reform of the science and technology management system during the “Ninth Five-Year Plan” period.
1. Main Goals
The main goals of the deepening of the reform of the science and ethnology management system during the “Ninth Five-Year Plan” period are as follows: all-round implementation of the thought of science and technology as primary productive forces, further implementation of the policy of reliance on science and technology in economic construction, orientation toward economic construction in the work of science and technology and exertion in mounting the peak of science and technology. Persevere in the strategic disposition of the reform of the science and technology management system in the three tiers of orienting toward the main battlefield of economic construction and social development, developing high technology and establishing new and high technology industries, and strengthening basic research, step up basic research, applied research, high-technology research and joint tackling of key scientific and technological projects, increase the reserve of science and technology, solve major, integrated, key and urgent technical questions in national economic construction and social development in line with the principle of “stabilizing one end and decontrolling the majority” so as to close the gap with the advanced international level as soon as possible. Majority of the research and development institutions shall go directly into the market, accelerate the commercialization of the scientific and technological results, drastically upgrade social productivity and improve economic efficiency, and raise the scientific and technological standards of industry, agriculture and the tertiary industry.
During the “Ninth Five-Year Plan” period, the science and technology management system compatible with the socialist market economy system and the laws of development of science and technology themselves should be primarily established. A closely integrated mechanism of scientific research, development, production and the market should be formed and a technology development system with the enterprises as the main body and combination of production, education and research, a scientific research system with scientific research institutions and the institutions of higher learning as its main body and a socialized scientific and technological services system should be established to raise the rate of contribution of science and technology in the national economy. The priority of the reform of the science and technology management system should be the independent scientific research institutions especially those under the department of the Central Government. Scientific research institutions under the institutions of higher learning which have their own characteristics are an organic component of the reform of the entire science and technology management system. Optimal disposition of scientific and technological resources should be promoted and rational layout of scientific research institutions should be completed through the deepening of the reform of the science and technology management system; the enthusiasm of the scientific and technological personnel to participate in the reform should be fully motivated and qualified personnel dispersed rationally to let each make full use of his strengths, taking the requirements of goals of national development strategy as the guidance. Reform of the science and technology management system should be carried out synchronously matching the reform of the economic system and reform in other areas, correctly handling the relations between reform, development and stability, providing guidance according to different types of scientific research institutions in the light of local conditions and pressing ahead in a positive and steady way with no rigid uniformity.
2. Main Tasks
(1) Pushing scientific research institutions to the main battlefield of economic construction.
a. Vast majority of the scientific research institutions should take economic construction as the main battlefield, adjust their structures in specialties and make contributions to the transformation of traditional industries, upgrading the quality of products, the development of national industries, enhancing capabilities in international competition and the strengthening of comprehensive national power.
Those scientific research institutions with necessary qualifications may directly join enterprises and become the technology development institutions of the enterprises. A number of scientific research institutions serving the sectors may become the technology development institutions of respective sectors by introducing such forms as the membership system and shareholding system.
Majority of the technology development and technological services institutions should create conditions to practice enterprise-style management, enter into the market in various forms and seek development in market competition.
Those scientific research institutions with an edge in research and development and self-development capabilities or industrial development strengths may establish enterprises or turn directly into enterprises. This category of enterprises may become integrated companies of research, development, engineering design, production and marketing, or may turn into enterprise groups through merger, contracting other enterprises or scientific research institutions, go in for independent operations and seek self- development by way of compensatory transfer of technological achievements, acceptance of technology development projects and providing the society with specific technology services.
Those scientific research institutions with systematic and matching engineering development capabilities may integrate themselves closely with enterprises and turn themselves into engineering centers, or establish engineering centers on their own.
Scientific research institutions with strong integrated services capabilities may be turned into such technical services centers as productivity promotion centers and technological innovation extension centers, conduct enterprise-style operations and provide society-oriented technical services.
Scientific research institutions under the central departments should actively render services in local economic construction and social development. A number of those scientific research institutions may, with the support of the departments concerned and the localities, become regional science and technology research and development centers by adopting the mode of joining hands of the departments concerned and the localities, joint operation and joint establishment. Scientific and technological forces of scientific research institutions and institutions of higher learning engaging in long-term, integrated sectorial research should enhance cooperation, step up research and development of common key technologies of the sectors and continue to provide services for the development of the sectors.
b. To accelerate the process of modernization of agriculture, building of agricultural research and development system and technical extension services system must be stepped up. Structures of disciplines, specialties and personnel of agricultural scientific research institutions should be optimized and attention be paid to the joint tackling of key multi- disciplinary and trans-departmental projects to promote commercialization of scientific and technological achievements. A number of state, sectorial and regional research and development centers shall be set up to form step by step a key agricultural scientific research system at the central and local levels. State agricultural scientific research institutions and key agricultural universities should concentrate their main forces on basic research and the research and development of major national applications, exerting themselves in the resolution of major scientific and technological issues of national, basic, key and orientational nature which provincial and prefectural agricultural scientific research institutions find unsuitable to undertake. Provincial and prefectural agricultural scientific research institutions should, according to natural and economic zoning, grow, step by step, into regional agricultural scientific research centers with focuses on applied technical research and secondary development and commercialization of scientific and technological achievements. While “stabilizing one end”, agricultural scientific research institutions of all levels should organize in a big way scientific and technological personnel in participating in the work of science and technology demonstration areas, integrated development of agriculture, construction of bases for pillar industries, supporting poverty- eradication programs with science and technology and all kinds of scientific and technical services. Close integration of agriculture, science and education should be promoted, standards of scientific and cultural knowledge of farmers and capabilities in applying agricultural scientific technologies should be raised, and great efforts should be made to train and stabilize agricultural technical extension personnel with diverse skills so as to improve overall agricultural labor productivity. The agro-technology extension system should be perfected and strengthened in real earnest, grassroots agro-technology extension institutions should be stabilized and perfected and their strength of self-development enhanced. Agro-technology extension institutions should cooperate with all types of rural service organizations to form an integrated scientific and technological service network embracing technology, agriculture and trade and production, supply and marketing. Agro-technology extension institutions engaging in operational activities close to their business in the mode of self-operations or joint operations with seed companies and departments of means of agricultural production may use the revenue from their business operations to mainly subsidize agro-technology extension work and the income of the technical personnel.
c. Enterprises should become the main body of technological development. State-owned large- and medium-size enterprises should take the establishment of enterprise technological innovation mechanism and the upgrading of technological innovation capabilities as important contents in the establishment of modern enterprise system. Large- and medium-size enterprises and enterprise groups should be guided by the market and set up step by step various types of technological development institutions by joining hands with scientific research institutions and institutions of higher learning. Mass technological innovation activities should be encouraged. Input for technological development shall be increased, speed of commercialization and extension of scientific and technological achievements accelerated and efforts be made to develop new products. Support shall be given to the establishment of long-term and stable relations of coordination between medium- and small- size enterprises, rural enterprises and scientific research institutions and institutions of higher learning. Continuous encouragement shall be given to the development of scientific and technological enterprises operated by local people.
(2) Developing high technology and promoting industrialization of new and high technology.
Research and development of high technology is the forerunner for the development of modern economy and the source of the development of high technology industries. A number of major projects which will have a major leading role in the development of the national economy, have considerable foundation and advantages and will enhance the comprehensive national strength of our country should be selected for the joint tackling of key issues by adopting the mode of competitive bidding of tender, organizing and promoting scientific research institutions, institutions of higher learning and enterprises to concentrate their forces. A cohort(An army) of high- standard scientific research personnel should be stabilized for the development of high-tech results and industrialization and especially for the readjustment of industrial structures and technological transformation of large- and medium-size enterprises.
Further push shall be given to the development of national development zones for new and high technology industries. The reform should be deepened to create a better environment to attract scientific research institutions, institutions of higher learning and large- and medium-size enterprises to develop high-technology industries, and the pace of reform shall be expedited in accordance with the requirements for the establishment of modern enterprise system. Institutions of higher learning should be encouraged to found school-run high-technology enterprises in keeping with the orientation of the reform of higher education.
(3) Optimizing the structure and distribution of basic scientific research institutions.
Scientific research institutions under central departments and key institutions of higher learning shall be the main body in basic research and their integration shall be strengthened. A number of key basic research institutions should be stabilized and well managed in real earnest, and basic research bases and the infrastructure strengthened to enable an elite, excellent scientific and technological personnel to engage in basic research work and do a good job of fostering and training young personnel. The structure of these institutions should also be optimized, with their personnel rationally dispersed and efficiency raised.
Support shall be given to the two-way movement of scientific research personnel and taking up concurrent positions in each other’s institutions between the basic scientific research institutions and institutions of high learning. Emphatic measures shall be taken to promote joint setting up and sharing of large instruments and equipment to achieve full sharing of materials and information. Organic integration among scientific research, teaching and personnel training shall be adhered to so as to complement each other and be mutually promotive.
(4) Qualified non-profit social research institutions may practice open management and provide socialized services.
Non-profit social scientific research institutions should overcome the demerits in the repetition of establishments and dispersion of manpower, retrench and optimize combination in planned steps, practice open management to realize socialization in functions and industrialization in services. The State shall give key support to the non-profit social research institutions engaging in projects involving overall national interest and long-term interest, and in the meantime encourage those non-profit scientific research institutions with qualifications to engage in enterprise-style operations and set up regional or sectorial scientific and technological service and consultancy institutions with self-development capabilities.
3. Major Measures
(1) Practice scientific management. Strengthen macro-regulation, macro- control and planning and layout management, and promote integration and corpora of scientific and technological manpower. Optimize investment structure, continue to develop the system of science foundations, carry out value evaluation and specialist evaluation of the same profession to enhance efficiency in capital utilization. Planned science and technology projects shall mainly adopt tender offering system with open tender notices in society, and ensure that listing of projects is done scientifically and openness and fairness in bidding. Under the preconditions that fulfillment of tasks issued by the State and departments in charge is ensured, scientific research institutions shall enjoy independence in internal administration and other areas and become an independent legal entity in society. Different types of scientific research institutions should explore the reform of president(director) responsibility system and the system of decision-making by board of directors and explore ways in experimenting the specialist responsibility system of projects. Follow-up evaluation should be conducted on the implementation of projects.
(2) Promote commercialization of scientific and technological achievements.
Step up construction of pilot plants, industrial experiment bases and engineering technology development centers. Further develop technology markets, establish fair, open and just order in the technology markets, and build up intermediate institutions of technologies and the ranks of brokers.
(3) Upgrade technological innovation capabilities. Actively create conditions and promote in a big way integration and coordination among scientific research institutions, institutions of higher learning and enterprises so as to upgrade the systematic and matching capabilities of engineering technology development.
(4) Establish mechanism of personnel evaluation, training and employment under which each will give full play to his talent and excellent talents will be able to emerge. Complete and perfect the system of employment of technical positions of all specialties. Fully promote the role of scientific research institutions and institutions of high learning in personnel training, accelerate the training of young and middle-aged academic and technical leaders and assign more young and middle-aged scientific and technical personnel to positions of heavy responsibilities in the front line of research and development. Both old, middle-aged and young scientific and technical personnel shall give full play to their respective roles to make the work of scientific research more vigorous and creative in the process of opening up, mobility, competition and coordination. A number of key scientific research institutions and scientific research bases may set aside some flexible staffing quota and establish the mechanism of personnel mobility and open competition for important positions.
(5) Further reform the income distribution system of scientific and technical personnel. The income of scientific and technical personnel and science and technology management staff engaging in scientific research, technological development and commercialization of scientific and technological achievements should be linked with their scientific research standards and contributions. Reform science and technology reward system, found national award for the extension of scientific and technological achievements and establish evaluation system of science and technology work and management system of intellectual property rights to form new incentive mechanism for science and technology work. Strive to improve the living conditions and working conditions of scientific and technological personnel with the solution of the housing problem of young scientific and technological staff as the priority.
(6)Persevere in opening up to the outside world and actively participate in international exchange and cooperation. Continue to encourage the induction of sophisticated technologies and advanced management experience from abroad, step up digestion and absorption on that basis, and work hard for technological innovation to form a vast amount of technological achievements and products with China’s own intellectual property rights. Expand international academic and personnel exchanges. Continue to encourage all categories of scientific and technological personnel and especially young and middle-aged scientific and technological personnel to participate in international scientific and technological cooperation and exchange in diverse forms. Seriously implement the policy of “supporting study overseas, encouraging return to the country and ensuring freedom of return to the country and departure from the country,” actively create conditions and encourage and guide overseas students and scientific and technological personnel residing overseas to return to the country for work on engagement basis or render service for the motherland’s construction in various forms.
4. Fund Guarantee
During the “Ninth Five-Year Plan” period, the central finance shall gradually increase input into science and technology in accordance with the requirements as prescribed in the “Decision of the Central Committee of the Communist Party of China and the State Council Concerning the Acceleration of Scientific and Technological Advancement”. With economic growth, local finance at all levels should strive to increase input into science and technology. Increase in funding for science and technology should be higher than the growth of regular financial revenue. All departments and localities should upgrade the equipment level and scientific research capabilities of key scientific research institutions and scientific research bases.
(1) Enterprises and enterprise groups should strive to increase technology development funding which may be listed in and as part of cost in accordance with relevant provisions. Departments in charge of the sectors may raise funds for the research and development of science and technology of the sectors through various channels. Actively explore the establishment of the input mechanism for the positive circle of agro-science and technology. A certain amount of funds should be arranged for relevant technological innovation in capital construction, technological transformation and technological induction.
(2) Increase the percentage of loans for science and technology in national credit plan and expand the scale of commercial loans for science and technology. State policy banks shall establish the item of special loans for the support of commercialization of major scientific and technological achievements to support the development of new and high technology industries.
(3) Actively explore venture capital mechanism for the development of science and technology to promote commercialization of scientific and technological achievements.
(4) During the “Ninth Five-Year Plan” period, to encourage and support scientific research institutions to go into the market, those scientific research institutions which have been turned into enterprise legal entities may continue to keep their original names upon verification in the light of different circumstances and enjoy the policies bestowed by the State to scientific research institutions.
(5) In addition to the preferential policy on taxation bestowed by the State to enterprises, those scientific research institutions which have been turned into enterprises may include various expenses arising from development of new products, new technologies and new techniques in management expenditure according to relevant provisions. For technical training, technical consultancy and technical services arising in the process of technology transfer, the localities should formulate preferential policies on taxation in the light of the actual conditions prevailing in each locality.
(6) To foster and support the development of new and high technology industries, encouragement shall be given to government departments at all levels and institutions supported by government finance to make priority purchases under same conditions of high technology products with Chinese intellectual property rights.
(7) For scientific research institutions whose reform are basically in place, the department in charge of science and technology administration should still render support in such areas as project funding, institutional expenditure and equipment renewal so as to enable those scientific research institutions and scientific research bases to reach step by step advanced international standards.
(8) In accordance with the relevant provisions of the State and unified plan, scientific research institutions shall establish social security system according to the principle of burden-sharing by the State, unit and individual and establish the system with the integration of unified social fund-raising and individual account in endowment and medical insurance. Part of the institutional expenditure of scientific research institutions can be turned over to the social security fund. Those scientific research institutions which practice enterprise-style management or which have turned into enterprises shall, step by step, implement the social security system. Policies related to social security should be further perfected and improve the conditions in endowment, medicare and housing of scientists and engineering technological personnel who have made outstanding contributions.
5. Deepening the Reform of Defense Science and Technology Management System
In pursuance of the basic orientation of the reform of national economic system and science and technology management system and the guidelines of the military strategy in the new period, the new science and technology management system compatible with the requirements of the socialist market economy and the laws of development of defense science and technology themselves with the integration of military and civilian applications and the integration of peacetime and wartime requirements. Resources should be concentrated to support a number of scientific research institutions and institutions of high learning with good foundation, high q
Circular of the Securities Commission of the State Council Concerning Issuing the “Rules for the Implementation of the Provisions
on Domestically-listed Foreign Capital Stock of Joint Stock Limited Company”
ZhengWeiFa [1996] No.9
May 3,1996
The people’s governments of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan, all ministries, commissions and directly subordinate institutions of the State Council:
According to article 27 th of “Provisions of the State Council on Domestically-listed Foreign Capital Stock of Joint Stock Limited
Company”, the Securities Commission of the State Council formulated the “Rules for the Implementation of the Provisions on Domestically-listed
Foreign Capital Stock of Joint Stock Limited Company”, and hereby promulgated. Attachment:Rules for the Implementation of the Provisions on Domestically-listed Foreign Capital Stock of Joint Stock Limited Company
Chapter I General Provisions
Article 1
This set of rules has been formulated according to the Provisions of the State Council on Domestically-listed Foreign Capital Stock
of Joint Stock Limited Company (hereinafter referred to as the Provisions), so as to strengthen the supervision and administration
of the issuing and trading of such shares (hereinafter referred to as B shares) and related activities to protect the legal rights
of the investors.
Article 2
The Provisions and this set of rules should be followed in the issuing and trading of B shares and related activities.
Areas not covered by the Provisions and this set of rules shall be governed by related provisions as set in the State’s laws and regulations
in related to securities.
Article 3
With the approval of the State Council’s Securities Commission or with the approval of the State Council via the Commission, joint
stock limited companies (hereinafter referred to as companies) may list B shares on domestic B share market to be sold to specified
or unspecified investors.
The Companies referred to in the previous paragraph should be considered as the companies that have been established or have been
approved to be established.
Chapter II Issuing and Listing
Article 4
Companies which apply for the issuing of B shares on the domestic markets for the first time should submit applications to the responsible
departments of the people’s government of the province, autonomous region or municipality directly under the Central Government,
or to responsible departments under the State Council.
The responsible departments, after examining the applications and finding them as meeting the requirements for the issuing of B shares
in domestic markets as laid sown in the Provisions, shall recommend to the Securities Commission of the State Council (hereinafter
referred to as the Commission) with the following documents:
1.
recommendation papers;
2.
application forms filled up by the companies concerned;
3.
papers and related materials to show the conformance of the issuing concerned to requirements for the issuing of B shares in domestic
markets as laid down in the Provisions;
4.
reports on the feasibility of the uses of the funds rallied through the issuance;
5.
the companies’ statements of assets and liabilities and statements of profits and losses, which have been recognized through examination
by registered Chinese accountants qualified for securities business;
6.
projections of the after-tax profits for the companies for the current year;
7.
for companies to be established, assets evaluation reports of the companies as prepared by the companies’ sponsors;
8.
analytical reports on the prospects of the issuing by institutions qualified for underwriting of the shares;
9.
other materials as required by the Commission.
Article 5
Upon receipt of the application forms as specified in Article 4 of this set of rules, the Commission shall, together with related
departments under the State Council, decide on which companies may list B shares in domestic markets and notify the responsible departments
of the people’s government of the province, autonomous region and municipality directly under the Central Government, or the responsible
departments under the State Council, of the decisions.
Article 6
Companies with approval to list B shares on domestic markets shall present the required documents as specified in Article 11 and
Article 12 of the Provisions to the responsible departments under the People’s governments of the provinces autonomous regions and
municipalities directly under the State, or to the responsible departments under the State Council, and through them, onto the Chinese
Securities Regulatory Commission (hereinafter referred to as CSRC) for verification.
Article 7
Applications for issuings of B shares by companies that have already listed B shares on domestic markets for the second time (except
issuings to original share-holders), should submit documents specified in Article 12 of the Provisions to the responsible departments
under the people’s government of the province, autonomous region and municipality directly under the Central Government, or to the
responsible departments under the State Council, and through them, onto CSRC for verification.
Article 8
Professional documents prepared by overseas accountants’ firms, lawyers’ firms or other institutions on the issuings of B shares should
also be presented in addition to the required application documents as specified in Articles 6 and 7.
The institutions mentioned in the previous paragraph, should meet qualifications as set by the State if there are any.
Article 9
The agreements on underwriting and prospectuses that are required under Articles 6 and 7 of this set of rules to be presented may
be only initialed, or having not under signed or sealed but have to be confirmed by the parties involved.
Article 10
Upon verifying and approving the companies’ applications presented by the responsible departments under the people’s government of
the province, autonomous region and municipality directly under the Central Government, or to the responsible departments under the
State Council through examination, CSRC shall present them to the Securities Commission for further approval. For B shares issuing
with a total value exceeding US $30 million, the documents shall be presented through the Securities Commission onto the State Council
for further approval.
Before the actual listing of their B shares on domestic markets, the companies should submit the officially signed agreements on underwriting
and prospectuses to CSRC. The shares may be listed once approvals are issued.
Article 11
The prospectuses referred to in the Provisions and this set of rules may be information memoranda or other expository materials on
the issuing of the shares.
Article 12
The companies, in issuing B shares on domestic markets, should publish their prospectuses within the Chinese territory in accordance
with contents, forms and ways as set by related Chinese laws and regulations. Prospectuses being sent to overseas investors, should
be formulated and sent in accordance with requirements as set by Chinese laws and regulations except otherwise stipulated in the
laws of the localities where the rallies are made.
The prospectuses being sent to domestic and overseas investors must not contradict with each other in contents, neither can they have
major information left out or contain misleading or untrue statements.
Article 13
In issuing additional B shares to the original shareholders, provisions on such issuances as stipulated by CSRC should be abided by.
Article 14
When submitting the required documents as specified in Article 7 and 13 of this set of rules, the companies concerned should simultaneously
present the following documents:
1.
notices of meetings of the shareholders and explanations on the notices;
2.
detailed processes of the meetings of holders of the A and B shares and the results of their votings.
Article 15
With the approval of the Securities Commission, the companies may set aside no more than 15% of the total amount of shares agreed
to be underwritten in the present issuing upon agreements with the underwriters concerned. The shares set aside should be considered
as part of the current issuance.
Article 16
An underwriting period of B shares must not exceed 90 days.
Article 17
Main underwriters of B shares should, within 15 days after the sales of the shares, present their reports to CSRC on the names of
and amounts of the shares held by the 10 largest shareholders with detailed description of the process of the sales of the shares
and the results.
Article 18
B shares held by domestic securities institutions as a result of underwriting should be reported to CSRC in conformity with provisions
on disclosure of information.
Article 19
Information and execution of the agreements on underwriting and settlement of disputes arisen from the execution, related provisions
of laws and regulations of the State must be abided by.
Article 20
The companies should present the following documents to CSRC, within 7 days upon the completion of the documents, for record-keeping:
1.
certification reports prepared, signed and sealed by at least two registered qualified Chinese accountants and their firms on the
funds collected through the sales of the shares;
2.
the companies’ business licenses (duplicates);
3.
resolutions and articles of association as passed at the establishment or shareholder meeting of the company.
Article 21
In case there is necessary to apply for registration or recognition from securities administration departments overseas, a company
issuing B shares domestically should submit the applications submitted and the registration or recognition documents acquired, if
any, to CSRC for record-keeping.
Article 22
B shares issued by the companies can be traded at the stock exchanges.
Article 23
The companies should abide by related regulations of stock exchanges where their shares are traded.
Chapter III Trading, Registration and Settlement
Article 24
In purchasing and selling domestically listed B shares investors and agents of the shares should abide by the related regulations
of the stock exchanges and the stocks registration and settlement institutions.
Article 25
For trading B shares, one has to open an account for such shares in accordance with related provisions of stocks registration and
settlement institutions.
Article 26
A B shares holder may entrust an institution which has been recognized by the stocks registration and settlement institutions to handle
matters related to the shares on his/her behalf.
Article 27
Matters such as registration of the roster of the share holders, keeping, management, registration of the ownership transfer and the
capital settlement of B shares shall be handled by the stocks registration and settlement institutions designated by the stock exchange
in which the shares are listed and traded.
The roster of the holders of B shares is a valid proof for the holding of the shares by the holders listed in the roster, except otherwise
noted in other proofs.
Article 28
Agents and trust institutions may, in accordance with related provisions of the stocks registration and settlement institutions, apply
for as members for the settlement of the B shares.
Article 29
Clearance of B shares by a settlement member should be made through a special foreign currency account.
Article 30
The settlement members shall pay in certain venture capital and fees in accordance with related provisions of the stocks registration
and settlement institutions.
Chapter IV Institutions Handling Securities
Article 31
Securities institutions involved in the underwriting of B shares should be recognized by CSRC as qualified for underwriting of the
shares.
Article 32
Domestic securities institutions involved in the commissioned sales of B shares should be recognized by CSRC for as qualified for,
brokerage of the shares.
Article 33
Overseas securities institutions may sign commissioning agreements with domestic agents and engage in commissioned sales of B shares
through means as stipulated by the stock exchanges.
Chapter V Disclosure of Information
Article 34
Except otherwise stipulated by the provisions and this set of rules, companies issuing B shares shall abide by related provisions
of related laws of the State as well as provisions of CSRC on disclosure of the companies’ information. The companies shall also
abide by provisions on the disclosure of information of the listed companies as stipulated by the stock exchanges.
Article 35
The companies, in providing foreign language versions of the required documents as described in Article 17 , should ensure the accuracy
of the versions. When there are discrepancies between the Chinese and the foreign language versions, the Chinese version shall dominate.
Article 36
In provision of mid-term or annual financial statements, in addition to those in format as accepted by Chinese accounting rules, those
in formats as accepted by international accounting rules or having been adjusted in accordance with rules of the localities for chief
rally of the shares can also be provided. If there are major differences between financial statements in different formats, the differences
must be addressed clearly in the statements.
Annual financial statements prepared in formats as accepted under international accounting rules or in formats as having been adjusted
in accordance with rules of the localities for chief rally of the shares should be audited by accountants’ firms.
The companies may also entrust overseas accountants’ firms that are qualified under State provisions or requirements to examine and
audit the financial statements that are in formats as accepted by international accounting rules or having been adjusted in accordance
with the rules of the localities for chief rally of the shares, as described in the first paragraph of this article. But when publishing
the examination or auditing reports of the companies’ financial statements at home, the reports must also be signed by Chinese accountants
or Chinese accountants and their firms.
Article 37
Information disclosed by a company should be published through domestic and overseas press or other means allowed by CSRC so as to
reach domestic and overseas investors at the same time, and the contents of the domestic and overseas versions should be the same
in principle.
The disclosure of prospectuses shall be governed by provisions as laid down in Article 12 of this set of rules.
Article 38
Shareholders each directly or indirectly holding 5% of the total of the common B shares of a company should report to CSRC, the stock
exchanges and the company as well as announce to the public of the fact and intentions of the holding within three business days
since the holding should reach the proportion of 5%. Similar reports and announcements shall also be made whereas 2% of the total
is increased to or decreased from the holding.
Before or on the date of making the reports or announcements, the shareholders concerned should not make any further purchase of the
shares, whether directly or indirectly.
Chapter VI Accounting and Auditing
Article 39
The companies should make and compile their financial statements in accordance with the Enterprises Accounting Rules and other State
accounting laws, regulations and provisions and employ registered Chinese accountants with qualifications for securities businesses
as well as the accountant firms in the locality to audit and re-examine the statements in accordance with Article 14 of the Provisions.
Article 40
Before distributing dividends, the companies should set aside legally prescribed common reserve funds and public welfare funds in
accordance with related provisions, the amount of after-tax dividends should be set according to the following two figures, whichever
the smaller:
1.
the sum of after-tax profits available for distribution as listed in the financial statements compiled in accordance with China’s
accounting rules and audited by accountants’ firms;
2.
the sum of after-tax profits available for distribution as listed in the audited financial statements compiled on the basis of China’s
accounting rules but having been modified in accordance with international accounting rules or with the accounting rules of the locality
for chief rally of the shares.
Article 41
The dividends should be converted to foreign currency at exchange rates as determined in accordance with stipulations, as set in the
articles of association or resolutions passed at general meetings of shareholders of the companies. Without such stipulations, the
rates should be the median as announced by Chinese People’s Bank for the currencies involved on the business day immediately following
the date of the passage of the last resolution of the general meeting of shareholders.
Article 42
Besides employing domestic accounting firms with qualifications for securities businesses, the companies, if necessary, can also employ
overseas accounting firms that are qualified according to requirement of the State to audit or examine their financial statements.
Article 43
Employment or disemployment of accounting firms should be up to the decision of the general meeting of shareholders and reported to
CSRC for the record.
The term of the employment of accounting firms shall start at the date of the conclusion of the current general meeting of the shareholders
and end at the date of the end of the next shareholders’ meeting.
During the planning of a company issuing B shares to be established upon approval, employment of accounting firms shall be decided
by the main sponsor of the company or its reorganizing precedent.
Article 44
The companies shall notify the accounting firms in advance of the decision of their employment or dis-continuance of employment. The
accounting firms are enpost_titled to put forward their opinions before the general meeting of the shareholders.
The accounting firms, when resign, should explain before the general meeting of shareholders should there be any improper circumstances
or not.
Chapter VII Supplementary Provisions
Article 45
Disputes between B shareholders and the companies; between B shareholders and directors, supervisors and other senior managerial personnel
of the companies, between the holders of B shares and A shares (for domestic investors) of the same companies involving contents
specified in the articles of association concerned or other related affairs should be handled in accordance with the laws of the
People’s Republic of China.
Article 46
State Council-approved municipalities separately listed on the State plan may refer to provisions of the Provisions and rules in concerns
with people’s governments of the provinces, autonomous regions and municipalities directly under the Central Government.
Article 47
CSRC can formulate its own special rules on the basis of this set of rules.
Article 48
This set of rules shall ento into force as of the date of promulgation.
The Securities Commission of the State Council
1996-05-03
(Adopted at the 41st Executive Meeting of the State Council on January 8,
1996, promulgated by Decree No.193 of the State Council of the People’s Republic of China on January 29, 1996) (Editor’s Note: For the revised text, see Decision of the State Council on Amending the Regulations of the People’s Republic of China on Foreign Exchange Control promulgated on January 14, 1997, and effective as of the same date) Chapter I General Provisions
Article 1 These Regulations are formulated for the purpose of strengthening the foreign exchange control, keeping international payments equilibrium and promoting the healthy development of the national economy.
Article 2 The exchange control department of the State Council and its branches (hereinafter referred to as the exchange control department) shall exercise foreign exchange control according to law, and be responsible for the implementation of these Regulations.
Article 3 “Foreign exchange” mentioned in these Regulations means those payment instruments and assets in foreign currency which may be used for international payments, including the following:
(1) foreign currencies, including banknote and coins;
(2) foreign currency payment instruments, including negotiable securities, bank deposit certificates and postal savings certificates, etc.;
(3) foreign currency securities, including government bonds, corporate bonds and stocks, etc.;
(4) Special Drawing Rights and European Monetary Units; and
(5) other assets in foreign currency.
Article 4 These Regulations shall be applicable to foreign exchange receipts and disbursements and foreign exchange business operations by either domestic institutions and individuals or foreign institutions and individuals in China.
Article 5 The state shall adopt a system of statistics and reporting of the international balance of payment. All organizations and individuals involved in international payments shall take statistics and make reports on their international balance of payment.
Article 6 No circulation of, or valuation and settlement in, foreign currencies shall be allowed in the territory of the People’s Republic of China.
Article 7 Any organization or individual shall be enpost_titled to accuse and expose the acts and activities that violate the exchange control.
Organizations and individuals having rendered great service in accusing, exposing, or assisting in the investigation of, violations of exchange control shall be awarded by the exchange control department, and the latter shall keep things secret. Chapter II Foreign Exchange in Current Transactions
Article 8 Foreign exchange receipts from current transactions by domestic institutions must be transferred to China and may not be held abroad in violation of relevant provisions of the state.
Article 9 Foreign exchange receipts from current transactions by domestic institutions shall be sold to the authorized bank for dealing in foreign exchange in accordance with provisions of the State Council concerning the administration on foreign exchange settlements, sales and payments or, with an approval, a foreign exchange account may be opened for that with the authorized bank for dealing in foreign exchange.
Article 10 Foreign exchange needed for current transactions by domestic institutions shall be paid through buying from the authorized bank for dealing in foreign exchange by presentation of valid certificates and business papers in accordance with provisions of the State Council concerning the administration on foreign exchange settlements, sales and payments.
Article 11 Domestic institutions shall go through verification and cancellation formalities for their foreign exchange receipts from export and foreign exchange payments for import in accordance with provisions of the state concerning the administration on verification and cancellation of foreign exchange receipts from export and foreign exchange payments for import.
Article 12 Personal foreign exchange may be held by the individuals themselves, or they may also be deposited in the bank or sold to the authorized bank for dealing in foreign exchange.
The business in personal foreign exchange saving deposit shall abide by the principle of voluntariness in depositing, freedom of withdrawal, interest on every deposit and keeping in secret for the depositors.
Article 13 Foreign exchange needed by individuals when leaving China on private business shall be bought within the specified limits; those beyond the specified limits may be applied for to the exchange control department.
Individuals carrying foreign exchange when leaving China shall go through the declaration formalities with the customs; those carrying foreign exchange exceeding the specified limits shall, in addition, present valid certificates to the customs.
Article 14 Without the approval from the exchange control department, no foreign exchange assets in forms of foreign currency payment instruments or foreign currency securities, etc., which are held by Chinese citizens residing in China, may be carried or sent by post out of China.
Article 15 Certificate fees and authentication fees received in Renminbi by foreign diplomatic missions and consular posts in China may be converted at the authorized bank for dealing in foreign exchange by presentation of relevant certifications, when there is a need to remit them out of China.
For remittance of any receipts in Renminbi legally obtained by foreign institutions in China other than those mentioned in the preceding paragraph, an application with relevant certifications shall be submitted to the exchange control department, and said receipts in Renminbi may be converted at the authorized bank for dealing in foreign exchange against foreign exchange sales notices issued by the exchange control department.
Article 16 Subject to provisions of paragraph 2 of this article, salaries and other legitimate incomes obtained in Renminbi by foreign specialists engaged by domestic institutions may be converted at the authorized bank for dealing in foreign exchange and remitted or carried out of China after taxation.
salaries and other legitimate incomes obtained in foreign currency by foreigners engaged by Chinese foreign investment enterprises may be directly remitted or carried out of China after taxation; those obtained in Renminbi may, after taxation, be converted at the authorized bank for dealing in foreign exchange by presentation of valid certificates prescribed by the exchange control department, and be remitted or carried out of China.
Article 17 Foreign exchange remitted or carried in from outside China by foreign institutions or individuals in China may be held by themselves, deposited in the bank or sold to the authorized bank for dealing in foreign exchange. They may also be remitted or carried out of China by presentation of valid certificates. Chapter III Foreign Exchange in Capital Transactions
Article 18 Foreign exchange receipts from capital transactions by domestic institutions shall be transferred to China, except the State Council has provisions otherwise.
Article 19 Domestic institutions shall, in accordance with relevant provisions of the state, open foreign exchange accounts with the authorized bank for dealing in foreign exchange for their foreign exchange receipts from capital transactions; for selling said receipts to the authorized bank for dealing in foreign exchange, an approval from the exchange control department shall be obtained in advance.
Article 20 Domestic institutions wishing to make investment outside China shall, before applying to the competent department for examination and approval, have their sources of foreign exchange funds examined by the exchange control department; after obtaining the approval, they shall go through the fund remittance formalities in accordance with provisions of the State Council concerning the foreign exchange control relating to external investment.
Article 21 The raising of foreign loans shall be handled in accordance with relevant provisions of the state by government departments designated by the State Council or by financial institutions or enterprises approved by the exchange control department of the State Council.
Foreign loans raised by foreign investment enterprises shall be submitted to the exchange control department for the record.
Article 22 For issuing foreign currency bonds outside China, financial institutions shall apply to the exchange control department of the State Council for approval, and the issuance shall be handled in accordance with relevant provisions of the state.
Article 23 The provision of external guarantee may be handled only by the financial institutions and enterprises which are qualified according to relevant provisions of the state and, for the provision, an approval from the exchange control department shall be obtained in advance.
Article 24 The state shall adopt a registration system for external debts.
Domestic institutions shall go through external debt registration procedures in accordance with provisions of the State Council concerning the external debt statistics and monitoring.
The exchange control department of the State Council shall be responsible for the nationwide statistics and monitoring of external debts, and shall publish the external debt situation regularly.
Article 25 Where a foreign investment enterprise is legally terminated, among the assets after liquidation and taxation in accordance with relevant provisions of the state, the Renminbi owned by the foreign party may be converted at the authorized bank for dealing in foreign exchange and remitted or carried out of China; the foreign exchange owned by the Chinese party shall all be sold to the authorized bank for dealing in foreign exchange. Chapter IV Foreign Exchange Business of Financial Institutions
Article 26 For launching foreign exchange business, financial institutions must apply for approval to the exchange control department and obtain a foreign exchange business license.
Without approval from the exchange control department, no organization or individual may engage in foreign exchange business. Financial institutions with the approval for foreign exchange business operations may not engage in business which are beyond the approved scope.
Article 27 Financial institutions engaging in foreign exchange business shall open foreign exchange accounts for their customers and handle relevant foreign exchange business in accordance with relevant provisions of the state.
Article 28 In operations of foreign exchange business, financial institutions shall deposit reserves for foreign exchange deposit in accordance with relevant provisions of the state, abide by provisions concerning the control of foreign exchange balance sheet ratio, and establish reserves for bad debts.
Article 29 The authorized bank for dealing in foreign exchange shall use their owned capital for the payment of Renminbi needed in the business of exchange settlement.
Revolving foreign exchange fund for settlement of accounts of the authorized bank for dealing in foreign exchange shall be managed within a proportional range, which shall be appraised and fixed in the light of actual situation by the People’s Bank of China.
Article 30 In operations of foreign exchange business, financial institutions shall subject themselves to the inspection and supervision by the exchange control department.
Financial institutions engaging in foreign exchange business shall file with the exchange control department their foreign exchange balance sheets, foreign exchange profit and loss statements and other financial accounting statements and data.
Article 31 For terminating the operation of foreign exchange business, financial institutions shall apply to the exchange control department for approval. Financial institutions approved to terminate the operation of foreign exchange business shall make liquidation of foreign exchange creditor’s rights and debts, and hand in the foreign exchange business license for cancellation. Chapter V Renminbi Exchange Rates and Exchange Market
Article 32 A single managed floating system on the basis of the supply and demand in the market shall be adopted to the Renminbi exchange rates.
The People’s Bank of China shall, according to the prices shaped in the exchange market among banks, publish the exchange rates between Renminbi and major foreign currencies.
Article 33 Foreign exchange market transactions shall follow the principle of openness, fairness, impartiality and good faith.
Article 34 The currency varieties and forms of foreign exchange market transactions shall be specified and adjusted by the exchange control department of the State Council.
Article 35 The authorized bank for dealing in foreign exchange and other financial institutions engaging in foreign exchange business are transactors in the foreign exchange market among banks.
The authorized bank for dealing in foreign exchange and other financial institutions engaging in foreign exchange business shall determine the foreign exchange buying and selling prices for their customers and handle the foreign exchange business according to the rates and floating ranges published and specified by the People’s Bank of China.
Article 36 The exchange control department of the State Council shall exercise supervision and administration on the foreign exchange market throughout the country according to law.
Article 37 The People’s Bank of China shall exercise adjustment and control with regard to the foreign exchange market according to the needs of the monetary policies and the fluctuations of the foreign exchange market. Chapter VI Legal Responsibilities
Article 38 Whoever evades foreign exchange by committing any of the following acts shall be ordered to transfer the foreign exchange back to China within a specified time with a compulsory buying and exchanging of said foreign exchange and a fine from 30 per cent to five times the evaded amount imposed on by the exchange control department, or be investigated for the criminal responsibility if a crime is constituted:
(1) in violation of provisions of the state, holding the foreign exchange abroad without authorization;
(2) failing to sell the foreign exchange to the authorized bank for dealing in foreign exchange in accordance with provisions of the state;
(3) remitting or carrying foreign exchange out of China in violation of provisions of the state;
(4) carrying or sending by post foreign currency deposit certificates or foreign currency securities out of China without an approval from the exchange control department; or
(5) other acts of evading foreign exchange.
Article 39 Whoever engages in illegal procurement of foreign exchange by committing any of the following acts shall be given a warning with a compulsory buying and exchanging of the procured foreign exchange and a fine from 30 per cent to three times the amount procured imposed on by the exchange control department, or be investigated for the criminal responsibility if a crime is constituted:
(1) in violation of provisions of the state, paying in Renminbi or with physical goods for import or for others of the like which should be paid for in foreign exchange;
(2) paying domestic expenses for other persons in Renminbi while being repaid in foreign currency by those persons;
(3) without the approval from the exchange control department, foreign investors making investment in China with Renminbi or with goods and materials purchased in China;
(4) buying foreign exchange from the authorized bank for dealing in foreign exchange by cheating with false or invalid certificates, contracts or documents; or
(5) other acts of illegally procuring foreign exchange;
Article 40 Whoever engages in foreign exchange business without an approval from the exchange control department shall be confiscated of their illegal earnings with their illegal business forbidden by the exchange control department, or be investigated for the criminal responsibility if a crime is constituted.
Financial institutions engaging in foreign exchange business beyond the approved scope without authorization shall be ordered to make corrections by the exchange control department with confiscation of their illegal earnings, if any, and a fine from one to five times the illegal earnings, or a fine from 100,000 to 500,000 yuan if there is no illegal earnings. Where the circumstances are serious or no corrections have been made within the specified time, they shall be ordered to make consolidation or be revoked of their foreign exchange business licenses by the exchange control department. Where a crime is constituted, they shall be investigated for the criminal responsibility.
Article 41 The authorized bank for dealing in foreign exchange who fails to handle the foreign exchange settlements or sales in accordance with provisions of the state shall be ordered to make corrections and criticized by circulating a criticism notice by the exchange control department with confiscation of their illegal earnings and a fine from 100,000 to 500,000 yuan. Where the circumstances are serious, they shall be suspended from the business of foreign exchange settlements and sales.
Article 42 Financial institutions engaging in foreign exchange business who violate the control of Renminbi exchange rates, foreign exchange loan and deposit interest rates or foreign exchange market, shall be ordered to make corrections and criticized by circulating a criticism notice by the exchange control department with confiscation of their illegal earnings, if any, and a fine from one to five times the illegal earnings, or a fine from 100,000 to 500,000 yuan if there is no illegal earnings. Where the circumstances are serious, they shall be ordered to make consolidation or be revoked of their foreign exchange business licenses by the exchange control department.
Article 43 Domestic institutions committing any of the following acts in violation of the control of external debts shall be given a warning and criticized by circulating a criticism notice with a fine from 100,000 to 500,000 yuan imposed on by the exchange control department, or be investigated for the criminal responsibility if the a crime is constituted:
(1) raising foreign loans without authorization;
(2) in violation of relevant provisions of the state, issuing foreign currency bonds outside China without authorization;
(3) in violation of relevant provisions of the state, providing external guarantee without authorization; or
(4) other acts in violation of the control of external debts;
Article 44 Domestic institutions illegally using foreign exchange under any of the following circumstances shall be ordered to make corrections by the exchange control department with a compulsory buying and exchanging, confiscation of their illegal earnings and a fine not exceeding the value of the foreign exchange amount involved in the illegal acts, or be investigated for the criminal responsibility if a crime is constituted:
(1) valuating and settling in foreign currency in China;
(2) providing pledge with foreign currency without authorization;
(3) changing the uses of foreign exchange without permission; or
(4) other circumstances involved in illegal use of foreign exchange;
Article 45 Whoever buys and sells foreign exchange without permission or in a disguised form or scalps foreign exchange shall be given a warning by the exchange control department with a compulsory buying and exchanging, confiscation of their illegal earnings and a fine from 30 per cent to three times the foreign exchange amount involved in the illegal acts. Where a crime is constituted, they shall be investigated for the criminal responsibility.
Article 46 Domestic institutions who, in violation of the administration on foreign exchange accounts, open foreign exchange accounts inside or outside China without permission, lend or transfer their foreign exchange accounts, use each other’s foreign exchange accounts in collusion, or use the foreign exchange accounts for other purposes than those approved shall be ordered to make corrections and criticized by circulating a criticism notice by the exchange control department with cancellation of their foreign exchange accounts and a fine from 50,000 to 300,000 yuan.
Article 47 Domestic institutions who, in violation of the administration of foreign exchange verification and cancellation, forge, alter, lend, transfer or repeatedly use export verification and cancellation certificates, or fail to go through the specified verification and cancellation procedures shall be given a warning and criticized by circulating a criticism notice by the exchange control department with confiscation of their illegal earnings and a fine from 50,000 to 300,000 yuan. Where a crime is constituted, they shall be investigated for the criminal responsibility.
Article 48 Financial institutions engaging in foreign exchange business who violate provisions of Article 28 or 38 of these Regulations shall be ordered to make corrections and criticized by circulating a criticism notice by the exchange control department with a fine from 50,000 to 300,000 yuan.
Article 49 Where any party concerned refuses to accept the penalty decision made by the exchange control department, he may, within 15 days from receiving the notification of the penalty decision, apply for reconsideration to the exchange control department at the immediately higher level, which shall make a reconsideration decision within two months from receiving the reconsideration application. The party concerned refusing to accept the consideration decision may bring a suit with the people’s court.
Article 50 Where any domestic institution violates provisions concerning the foreign exchange control, in addition to the penalty on the institutions according to provisions of these Regulations, the person in charge directly responsible and other person directly responsible shall be given a disciplinary sanction, or be investigated for the criminal responsibility if a crime is constituted. Chapter VII Supplementary Provisions
Article 51 For the purpose of these Regulations,
(1) “domestic institutions” mean enterprises, institutions, government departments, public organizations and army units, including foreign investment enterprises, within the territory of the People’s Republic of China;
(2) “the authorized bank for dealing in foreign exchange” means a bank that engages in the business of foreign exchange settlement and sales with the approval of the exchange control department;
(3) “individuals” mean either Chinese citizens or foreigners who reside in the People’s Republic of China up to one year;
(4) “foreign institutions in China” mean foreign diplomatic missions and consular posts in China, resident representative offices in China of international organizations, foreign commercial representative offices in China and resident business offices in China of foreign nongovernmental organizations;
(5) “foreign individuals in China” mean permanent personnel of foreign institutions in China, foreigners staying short terms in China, foreigners engaged by domestic institutions and foreign students studying in China;
(6) “current transactions” mean transactions that occur frequently resulting in international receipt and payment, including trade receipt and payment, service receipt and payment and unilateral transfer, etc.; and
(7) “capital transactions” mean capital exporting and importing resulting in increasing or decreasing of assets and liabilities, including direct investment, loans of all kinds and investment in securities, etc..
Article 52 Foreign exchange control measures for bonded areas shall be formulated separately by the exchange control department of the State Council.
Article 53 Foreign exchange control measures for frontier trade and transactions between inhabitants on either side of the border shall be separately formulated by the exchange control department of the State Council according to the principles prescribed by these Regulations.
Article 54 These Regulations shall enter into force on April 1, 1996. The Interim Regulations of the People’s Republic of China on Foreign Exchange Control promulgated by the State Council on December 18, 1980 and the rules thereunder shall cease to be in force thereupon.
PRC Customs Regulations on Clearance of Entering and Exiting Passengers
Article 1 This set of regulations has been formulated in accordance with The Customs Law of the PRC and other related laws and regulations.
Article 2 The terms “customs clearance” in this set of regulations refer to the formalities of presenting of declarations by the entering and
exiting passengers to the customs and the checking, duty levying or exempting and letting pass of passengers’ luggage and goods by
the customs in accordance with the law, or other related supervision formalities.
The term “declarations” in this set of regulations refers to the presenting by entering and exiting passengers of written statements
to the customs on the state of luggage and goods they brought in or out in order as to meet their obligations stipulated in laws
and regulations of the PRC Customs.
Article 3 Entering and exiting passengers who are required to go through declaration formalities with the customs shall first submit the filled-
out Entering and Exiting Passengers’ Declaration Form of Luggage of the PRC or other required declaration documents to the customs
at the declaration desk to truthfully declare the state of luggage they bring in or out.
Statements made at other places and times or through other means other than those specified above by the entering and exiting passengers
on the state of their luggage shall not be considered declarations by the customs.
Article 4 The declaration formalities shall be handled by the passengers themselves with the customs. If the passenger entrusts others to fill
in the required forms, he/she shall have his/her own signature in the form. Those entrusted to handle the declaration formalities
shall abide by the related provisions of this set of regulations and bear other related legal responsibilities.
Article 5 When making declarations with the customs, the entering and exiting passengers shall present valid traveling papers and identification
documents and submit for verification certificates issued by responsible PRC departments approving the import/export of the pertaining
goods as well as business vouchers and other necessary documents.
Article 6 Duplicates of the declaration papers and other special declaration papers after cleared and sealed by the customs shall be well kept
by the passengers concerned during their effective period or during the customs supervision period and are to be actively presented
when applying for collection, divide or transshipment of the luggage, or purchase of duty or duty-free foreign exchange goods or
going through other formalities by the passengers.
Article 7 At sites under the supervision of the customs, special declaration desks shall be established along the customs channels for the
passengers to declare incoming or exiting goods.
Sites under the supervision of the customs upon approval by the PRC Customs to practise double-channel systems can establish separately
“declaration channel” (or red channel) and “non-declaration channel” (or blue channel) for the choice of the entering and exiting
passengers in accordance with their status.
Article 8 The following categories of entering passengers shall declare with the customs and submit declaration papers to the customs for goods
entrance formalities:
1. passengers bringing with goods that have to be levied duties by the customs or are in restricted quantity of duty-free listed in
the second, third and fourth categories of the Classification Table of Goods Carried by Entering and Exiting Passengers (excluding
limited quantities of duty-free cigarettes and wines);
2. non-resident passengers or resident passengers with re-entry visas of the forwarding countries (regions) bringing with more than
one of each of the following personal effects: cameras, portable cassette players and recorders, small cinecameras, camcorders, portable
word processors;
3. passengers bringing with more than RMB 6,000 or gold and silver products heavier than 50 grams;
4. non-resident passengers bringing with foreign exchange cash valued at more than US$5,000;
5. resident passengers bringing with foreign exchange cash valued at over US$1,000;
6. passengers bringing with goods or goods samples exceeding the limit of personal consumption; and
7. passengers bringing with animals, plants or their derivative products that are restricted under China’s quarantine laws and regulations
or other goods that should go through clearance formalities with the customs.
Article 9 The following categories of exiting passengers shall declare with the customs and submit declaration papers to the customs for goods
exiting formalities:
1. passengers bringing cameras, portable cassette players and recorders, small cinecameras, camcorders, portable word processors and
other personal effects for traveling that would be brought back to China;
2. passengers who fail to bring the original goods to be brought out, or fail to go through customs formalities for temporarily duty-free
goods brought in at entrance;
3. passengers bringing with foreign exchanges or gold, silver or their derivatives larger than the declared amount at entrance brought
in or without; export permission papers;
4. passengers bringing with more than RMB 6,000;
5. passengers bringing with cultural relics;
6. passengers bringing with cargoes or goods samples;
7. passengers bringing with goods at quantities larger than the limits or quotas as stipulated by the customs or other limits;
8. passengers bringing with animals, plants or their derivative products that are restricted under China’s quarantine laws and regulations
or other goods that should go through clearance formalities with the customs.
Article 10 At sites under the supervision of the customs where there are two channels, passengers specified in Articles 8 and 9 shall choose
the “declaration channel.”
Article 11 Passengers not sure about which channel they should take shall go through the (declaration channel” for declaration formalities.
Article 12 Passengers other than those specified in Articles 8, 9 and 11 may not go through declaration formalities with the customs. In sites
with double-channel customs systems, such passengers may choose “non- declaration channel” for entry or exit.
Article 13 Non-resident passengers with diplomatic or courtesy visas issued by responsible departments of the PRC or other passengers exempted
from declaration clearance, when entering or exiting, shall produce their own passports (or other valid entering or exiting papers)
and identification papers at their own initiative.
Article 14 Passengers, when entering and exiting, shall abide by this set of regulations and other supplemental provisions formulated by related
customs houses with authorization from and promulgated by the General administration of Customs for the implementation of this set
of regulations.
Article 15 Passengers with entering and exiting goods failing to go through declaration formalities with the customs in accordance with related
regulations and passengers specified in Articles 8, 9 and 11 that fail to choose the designated channels as stipulated shall be dealt
with in accordance with related provisions of the Customs Law of the PRC and the Detailed Implementation Procedures on Administrative
Sanction of the Customs Law of the PRC.
Article 16 This set of regulations goes into effect as of January 1, 1996.
Law of the People’s Republic of China on the Coal Industry
(Adopted at the 21st Meeting of the Standing Committee of the Eighth National People’s Congress on August 29, 1996, promulgated by
Order No. 75 of the President of the People’s Republic of China on August 29, 1996, and effective as of December 1, 1996)
CHAPTER I GENERAL PROVISIONS
Article 1 This Law is enacted with a view to rationally developing, utilizing and protecting the coal resources, standardizing the production
and marketing of coal, and promoting and ensuring the development of the coal industry.
Article 2 This Law shall be applied to the production and marketing of coal within the territory of the People’s Republic of China and in the
sea areas under its jurisdiction.
Article 3 The coal resources are owned by the State. The State ownership of the coal resources, either on the surface or underground, shall
not change with the ownership or right to use of the land which the coal resources are attached to.
Article 4 With regard to the development of the coal resources, the State shall apply the principle of unified planning, rational geographical
distribution and comprehensive utilization.
Article 5 The State shall protect the coal resources according to law and forbid any indiscriminate mining which is destructive to the coal
resources.
Article 6 The State shall protect the lawful rights and interests of the persons who invest in the exploitation of the coal resources according
to law.
The State shall protect the sound development of State-owned coal mines.
With regard to township coal mines, the State shall adopt the policies of support, transformation, rectification, merging and upgrading,
so that they shall exploit the resources in a regular and rational manner and in good order.
Article 7 Coal mining enterprises must abide by the principle of safety in production, putting safety and prevention first, and establish and
improve the responsibility system for safety in production and the system of prevention and control by the masses.
Article 8 The people’s governments at all levels and the relevant departments thereof and the coal mining enterprises must take measures to
strengthen occupational protection so as to guarantee the safety and health of coal mine workers and staff members.
The State shall take special protective measures for miners working in underground coal mines.
Article 9 The State shall encourage and support the adoption of advanced science and technology and managerial methods in the exploitation
and utilization of coal resources.
Coal mining enterprises shall strengthen and improve their operation and management and increase their productivity and economic results.
Article 10 The State shall maintain order in production and other work in coal mine areas and protect the facilities of coal mining enterprises.
Article 11 Anyone who exploits or utilizes coal resources shall abide by the laws and regulations governing environmental protection, prevent
and control pollution and other public hazards, and protect the ecological environment.
Article 12 The department in charge of the coal industry under the State Council shall be responsible for supervision and administration of
the coal industry throughout the country according to law. The relevant departments under the State Council shall be responsible
for supervision and administration of the coal industry within the limits of their respective functions and responsibilities.
The departments in charge of the coal industry and other relevant departments under the local people’s governments at or above the
county level shall be responsible for supervision and administration of the coal industry in their own administrative regions according
to law.
Article 13 The coal mining administrations are State-owned coal mining enterprises each with the status of an independent legal entity.
The coal mining administrations and other coal mining and trading enterprises with the status of independent legal entities shall,
according to law, make their own decisions regarding their operations, be responsible for their own losses and profits and be capable
of expanding or contracting themselves.
CHAPTER II PLANS FOR COAL PRODUCTION AND DEVELOPMENT AND CONSTRUCTION OF COAL MINES
Article 14 The department in charge of the coal industry under the State Council shall, according to the national plan for exploring the mineral
resources, work out the national plan for exploring the coal resources.
Article 15 The department in charge of the coal industry under the State Council shall, according to the coal resources designated in the national
plan of the mineral resources arrange for the drawing up and execution of a plan for coal production and development.
The departments in charge of the coal industry under the people’s governments of the provinces, autonomous regions, and municipalities
directly under the Central Government shall, according to the coal resources designated in the national plan of the mineral resources
arrange for the drawing up and execution of plans for local coal production and development and submit the plans to the department
in charge of the coal industry under the State Council for the record.
Article 16 Plans for coal production and development shall be worked out in light of the needs of the national economic and social development
and shall be incorporated into the plan for national economic and social development.
Article 17 The State shall formulate preferential policies to support the development of the coal industry and promote the construction of coal
mines.
Coal mine construction projects shall conform with the plans for coal production and development and the policies for the coal industry.
Article 18 To establish a coal mining enterprise, the following requirements shall be met:
(1) having a feasibility study report on or mining plan for coal mine construction project;
(2) having a planned mining area, the limits of mining and a plan for comprehensive utilization of the resources;
(3) having geological, survey and hydrogeological data and other information needed for mining;
(4) having a mining design which meets the requirements of safety in coal mine production and of environmental protection;
(5) having a ratinal scale of coal mine production and the funds, equipment and technicians commensurate with such scale; and
(6) other requirements prescribed by laws and administrative rules and regulations.
Article 19 For establishing a coal mining enterprise, an application must be submitted to the department in charge of the coal industry according
to law; the application shall be examined for approval in light of the requirements provided for in this Law and by the administrative
department at the corresponding level with the authorization of the State Council.
Before examining and approving the application for establishing a coal mining enterprise, it is necessary for the department in charge
of geology and mineral resources to verify the proposed limits of mining and the plan for comprehensive utilization of the resources
and write down its comments with signature.
The coal mining enterprise that has obtained approval for establishment shall, by virtue of the document of approval, be issued the
mining license by the department in charge of geology and mineral resources.
Article 20 To use land for construction of a coal mine, the coal mining enterprise shall go through the formalities in accordance with the relevant
laws and administrative rules and regulations. Where it is necessary to requisition land, the enterprise shall, according to law,
pay compensation for the land and for the evacuees and help the evacuees to settle down.
In construction of coal mines the principle of protecting the cultivated land and utilizing the land rationally shall be adhered to.
Local people’s governments shall give support and assistance to the enterprise that uses land and has to have the residents move to
another place in accordance with law for the construction of coal mine.
Article 21 In coal mines, coal exploitation and environmental control shall be sychronized. The facilities for environmental protection of a
coal mine construction project must be designed, constructed, checked and accepted, and put into use simultaneously with the main
project.
CHAPTER III PRODUCTION OF COAL AND SAFETY OF COAL MINES
Article 22 Before a coal mine is put into production, the coal mining enterprise shall, in accordance with the provisions of this Law, submit
an application to the department in charge of the coal industry for coal production license. The said department shall examine its
actual production and safety conditions before issuing to it the coal production license if the requirements prescribed in this Law
are met.
Anyone who has not obtained the coal production license shall be forbidden to engage in coal production.
Article 23 The following requirements must be met for obtaining the coal production license:
(1) having the legally obtained mining license;
(2) having a mine production system that conforms to the mine safety rules formulated by the State;
(3) having mine managers who have received training according to law and obtained the mine manager qualification certificates;
(4) having specially skilled workers who have received training according to law and obtained the operation qualification certificates;
(5) having a good communications system for dispatch on the surface, underground, within and out of the coal mine;
(6) having an actually measured surface and underground engineering comparison drawing, a mining and excavation plan and a ventilation
system drawing;
(7) having the facilities to guarantee coal mine safety in production and environmental protection facilities, which have been proved
up to the standard through the acceptance test conducted upon completion of the project; and
(8) other requirements prescribed by laws and administrative rules and regulations.
Article 24 The department in charge of the coal industry under the State Council shall be responsible for the administration of the issue of
coal production licenses to the following coal mining enterprises:
(1) coal mining enterprises that are examined and approved for establishment by the State Council and those that are, in accordance
with law, subject to examination and approval for establishment by the department in charge of the coal industry under the State
Council; and
(2) coal mining enterprises that are established in trans-administrative regions of provinces, autonomous regions and municipalities
directly under the Central Government.
The departments in charge of the coal industry under the people’s governments of the provinces, autonomous regions and municipalities
directly under the Central Government shall be responsible for the administration of the issue of coal production licenses to the
coal mining enterprises other than those mentioned in the preceding paragraph.
The departments in charge of the coal industry under the people’s governments of the provinces, autonomous regions and municipalities
directly under the central Government may authorize the departments in charge of the coal industry of the cities divided into districts
and autonomous prefectures to be responsible for the administration of the issue of coal production licenses.
Article 25 The government departments in charge of the administration of the issue of coal production licenses shall be responsible for supervision
over and administration of coal production licenses.
Coal mining enterprises may not transfer or lease to another person the coal production licenses they have legally obtained.
Article 26 No duplicate coal production license shall be issued for mining in the same area.
Where the validity period of a coal production license expires or the coal resources within the limits of an approved mining area
are exhausted, the license-issuing authority shall revoke the license and make it known to the public.
Where the production and safety conditions of a coal mining enterprise have changed and through examination have been proved not meeting
the requirements prescribed by this Law, the license-issuing authority shall revoke its coal production license and make it known
to the public.
Article 27 The measures for administration of coal production license shall be formulated by the State Council according to this Law.
The standing committees of the people’s congresses of the provinces, autonomous regions and municipalities directly under the Central
Government may according to this Law and the regulations of the State Council, formulate local measures for administration of coal
production licenses.
Article 28 The State shall ensure protective mining for the special or rare types of coal which are of important value to the national economy.
Article 29 In the exploitation of coal resources, coal mining regulations must be complied with, the rational mining sequence followed and the
rate of extraction set for exploiting coal resources achieved.
The rate of extraction for coal resources shall be determined by the department in charge of the coal industry under the State Council
in light of the different resources and mining conditions.
The State shall encourage coal mining enterprises to carry out second mining or extract residual coal at the margins of mining areas
and very thin coal seams.
Article 30 Coal mining enterprises shall exercise strict supervision, inspection and control of coal product quality. Such quality shall be
graded according to the national or trade standards.
Article 31 Coal production shall be carried out within the approved limits of mining areas according to law. Mining beyond the approved limits
of mining areas or seams shall be forbidden.
No safety pillars shall be mined without authorization and no dangerous methods, such as water bursting, blasting and breaking through
roadways, which may threaten the production safety of adjacent coal mines shall be adopted.
Article 32 Coal mining enterprises shall be responsible for reclaiming the land, which is covered by coal or which subsides or is destroyed
due to mining, to the state that it can be utilized; any losses caused to another person shall be compensated according to law.
Article 33 Coal mines shall be closed or abandoned in accordance with the relevant laws and regulations as well as the rules of the department
in charge of the coal industry under the State Council.
Article 34 The State shall establish the system of accumulating funds by coal mining enterprises for changing the line of production during
the declining period of coal mines.
The State shall encourage and support coal mining enterprises to develop a diversified economy.
Article 35 The State shall encourage and support coal mining enterprises and other enterprises to produce both coal and electricity, coking
coal, coal chemicals and building materials made of coal and engage in deep and fine processing of coal.
The State shall encourage coal mining enterprises to develop coal washing and processing as well as comprehensive exploitation and
utilization of coalbed methane, gangue, coal slime, stone coal and peat.
Article 36 The State shall develop and disseminate clean coal technology.
The State shall adopt measures to ban coke making by indigenous methods. The construction of kilns for making coke with indigenous
methods shall be forbidden, and the existing kilns for making coke with indigenous methods shall be renovated within a time limit.
Article 37 The people’s governments at or above the county level and the departments in charge of the coal industry under such governments and
other departments concerned shall exercise strict supervision and control over coal mine safety in production.
Article 38 To ensure safety in production, the system under which the directors of coal mine administrations and the managers of coal mines
assume full responsibility shall be instituted in coal mining enterprises.
Article 39 Directors of coal mine administrations, managers of coal mines and other chief leading members of coal mining enterprises must abide
by the laws and regulations governing safety of mines and the safety rules and regulations for the coal industry, tighten their control
over coal mines safety in production, implement the responsibility system for safety in production and adopt effective measures to
prevent the occurrence of injury, death and other accidents in production.
Article 40 Coal mining enterprises shall conduct education and training in safety in production among their employees. No one who has not received
education and training in safety shall be permitted to work in a coal mine.
Employees of coal mining enterprises must abide by the laws and regulations governing safety in production, rules and regulations
for the coal industry and rules of coal mining enterprises.
Article 41 When an irresistible emergency occurs which may endanger the
lives and safety of the miners who are working underground in coal mines, the person in charge on the spot or other persons in charge
of safety shall immediately help the miners to leave the dangerous site and report the matter to the leading members concerned without
delay.
Article 42 When members of the trade unions of coal mining enterprises find that administrators of the enterprises give directions against
regulations and order miners to work at risks or when they scent hidden danger of obviously serious accident which may threaten the
lives and safety of workers, they shall have the right to make proposals for tackling the problem, and the administrative body of
the coal mining enterprise must make prompt decision to deal with it. If the said body refuses to deal with it, the trade union shall
have the right to criticism, accusation and complaint.
Article 43 Coal mining enterprises must provide the workers with the necessary articles to guarantee safety in production.
Article 44 Coal mining enterprises must provide accidental injury insurance for miners working underground and pay premiums.
Article 45 All equipment, facilities, explosives and safety instruments used by coal mining enterprises must meet the national or trade standards.
CHAPTER IV MARKETING OF COAL
Article 46 Coal mining enterprises which have legally obtained coal production licenses shall have the right to sell the coal they themselves
produce.
Article 47 To establish a coal trading enterprise, the following requirements shall be met:
(1) havingregistered capital commensurate with its marketing capacity;
(2) having fixed premises for operation;
(3) having the necessary facilities and coal stockyard;
(4) having the standard measuring and quality inspection devices;
(5) complying with the State requirements on the rational layout of coal trading enterprises; and
(6) meeting the other requirements prescribed by laws and administrative rules and regulations.
Article 48 For establishment of a coal trading enterprise, an application must be submitted to the department designated by the State Council
or by the people’s government of a province, autonomous region or municipality directly under the Central Government, which shall
conduct qualification examination in accordance with the provisions of Article 47 of this Law and within the limits of its power,
as authorized by the State Council to different levels of administration and grant the application if the requirements are met. By
virtue of the document of approval, the applicant shall apply for a business license and may start coal trading business only after
he obtains the license from the administrative department for industry and commerce.
Article 49 In the marketing of coal, coal trading enterprises shall abide by the relevant laws and regulations, improve services and ensure
supply. Any illegal marketing activities shall be forbidden.
Article 50 For the marketing of coal, the intermediate links shall be reduced and unreasonable intermediate links shall be removed, and, where
conditions permit, direct sale by coal mining enterprises shall be encouraged.
Customers and coal trading enterprises in coal marketing areas shall have the right to buy coal directly from coal mining enterprises.
In coal production areas, coal marketing and transport service agencies may be set up to provide marketing and transport services
for medium-sized and small coal mines.
Administrative departments shall be forbidden to set up intermediate agencies for coal supply and charge extra fees in violation of
State regulations and without authorization.
Article 51 Railway station and port authorities engaged in coal transportation and other transport enterprises may not take advantage of the
transportation capacity in their hands to take part in coal marketing business and seek improper interests.
Article 52 The price administration department under the State Council, together with the department in charge of the coal industry under the
State Council and other relevant departments, shall exercise supervision and control over the price of coal.
Article 53 The quality of coal supplied to customers by coal mining and coal trading enterprises shall meet the national or trade standards.
The quality of a specific type of coal shall match its grade and price. Where customers have special requirements for coal quality,
they shall have to reach an agreement with the seller in a purchase and sale contract.
Coal mining enterprises and coal trading enterprises may not adulterate coal and sell inferior coal as quality coal.
Article 54 If the quality of coal supplied by coal mining enterprises and coal trading enterprises to customers does not meet the national or
trade standards or the requirements agreed upon in a contract, or the quality does not match the grade or the price, thus causing
losses to customers, compensation shall be made according to law.
Article 55 Coal mining enterprises, coal trading enterprises, transport enterprises and customers shall supply, transport, and accept and unload
coal according to law, the relevant regulations of the State Council or the agreement in contracts.
Transport enterprises shall put coal of different quality to be transported into different packages or stock piles.
Article 56 Unified control shall be maintained over the import and export of coal in accordance with the relevant regulations of the State Council.
After the department in charge of foreign economic relations and trade under the State Council gives its approval, large coal mining
enterprises that meet the necessary conditions shall have the right to export coal.
Article 57 Measures for control of coal marketing shall be formulated by the State Council in accordance with this Law.
CHAPTER V PROTECTION OF COAL MINING AREAS
Article 58 No units or individuals may damage the installations of electric power and communications, the sources of water, the means of transportation
and other production facilities in coal mine areas.
All units and individuals shall be forbidden to disrupt the order of production and other work in coal mine areas.
Article 59 Any units and individuals shall have the right to inform against or accuse persons who steal or damage the facilities and equipment
in coal mine areas or commit other acts that threaten the security in coal mine areas.
Article 60 Without consent of coal mining enterprises, no units or individuals may grow plants or crops or breed animals, take soil or put
up buildings or other structures on the land during the validity period for use of the land legally obtained by coal mining enterprises.
Article 61 Without consent of coal mining enterprises, no units or
individuals may occupy the railways, roads, navigation channels, wharves, power lines and water supply pipes specially used by coal
mining enterprises.
Article 62 Any units or individuals that wish to conduct operations within coal mining areas that may threaten safety of the coal mines must
first obtain consent of the coal mining enterprises, report to the department in charge of the coal industry for approval and take
safety measures.
If public utilities or other projects need to be constructed in a coal mine area, the unit concerned shall consult the coal mining
enterprise and reach an agreement before it may start construction.
CHAPTER VI SUPERVISION AND INSPECTION
Article 63 The departments in charge of the coal industry and other relevant departments shall, in accordance with law, exercise supervision
over and inspection of the implementation of the laws and regulations governing the coal industry by coal mining enterprises and
coal trading enterprises.
Article 64 Supervisors and inspectors of the departments in charge of the coal industry and other relevant departments shall have adequate knowledge
of the laws and regulations governing the coal industry, be proficient in the relevant technology, be fair and honest and enforce
the law impartially.
Article 65 During supervision and inspection, the supervisors and inspectors of the departments in charge of the coal industry and other relevant
departments shall have the right to inquire of coal mining enterprises, coal trading enterprises or the customers how they implement
the laws and regulations governing the coal industry and look up relevant material and they shall have the right to enter a place
for inspection.
The coal mining enterprises, coal trading enterprises and customers shall provide convenience to the supervisors and inspectors of
the departments in charge of the coal industry and other relevant departments who are carrying out supervision and inspection according
to law.
Article 66 The supervisors and inspectors of the departments in charge of the coal industry and other relevant departments shall have the right
to ask the coal mining enterprises or coal trading enterprises that violate the laws and regulations governing the coal industry
to make rectification according to law.
The supervisors and inspectors of the departments in charge of the coal industry and other relevant departments shall show their papers
before they carry out supervision and inspection.
CHAPTER VII LEGAL LIABILITY
Article 67 If a person, in violation of the provisions of Article 22 of this Law, engages in coal production without coal production license,
the department in charge of the coal industry shall order him to stop production, confiscate his unlawful proceeds and it may also
impose on him a fine of not less than one time and not more than five times his unlawful proceeds; if he refuses to stop production,
local people’s government at or above the county level shall compel him to do so.
Article 68 If a person, in violation of the provisions of Article 25 of this Law, transfers or leases his coal production license, the department
in charge of the coal industry shall revoke his coal production license, confiscate his unlawful proceeds and impose on him a fine
of not less than one time and not more than five times his unlawful proceeds.
Article 69 If an enterprise, in violation of the provisions of Article 29 of this Law, fails to achieve the rate of extraction set by the department
in charge of the coal industry under the State Council for exploiting coal resources, the said department shall order it to make
rectification within a time limit and if it still cannot reach the rate upon expiration of the time limit, its coal production license
shall be revoked.
Article 70 If an enterprise, in violation of the provisions of Article 31 of this Law and without authorization, mines safety pillars or adopts
dangerous mining methods which threaten production safety of an adjacent coal mine, the labor administration department, together
with the department in charge of the coal industry, shall order it to stop mining, and the department in charge of the coal industry
shall confiscate its unlawful proceeds, impose on it a fine of not less than one time and not more than five times the unlawful proceeds,
and revoke its coal production license; if the violation constitutes a crime, the judicial organ shall investigate its criminal responsibility;
if it causes losses, it shall bear liability for compensation according to law.
Article 71 If an enterprise, in violation of the provisions of Article 48 of this Law, deals in coal without undergoing examination for approval,
the department in charge of examination and approval shall order it to stop such activity, confiscate its unlawful proceeds and may
also impose on it a fine of not less than one time and not more than five times its unlawful proceeds.
Article 72 If an enterprise, in violation of the provisions of Article 53 of this Law, adulterates coal and sells inferior coal as quality coal,
it shall be ordered to stop selling coal, its unlawful proceeds shall be confiscated and it shall be imposed with a fine of not less
than one time and not more than five times its unlawful proceeds, and its coal production license may be revoked or it may be disqualified
from dealing in coal in accordance with law; if the violation constitutes a crime, the judicial organ shall investigate its criminal
responsibility.
Article 73 If any units or individuals, in violation of the provisions of Article 60 of this Law and without consent of the coal mining enterprise
concerned, put up buildings or other structures on the land during the validity period for use of the land legally obatained by the
coal mining enterprise, the local people’s government shall persuade
them to pull down the buildings or other structures; if they refuse to do so, they shall be ordered to pull them down.
Article 1 These Measures are formulated, according to provisions of relevant laws, for the purposes of guaranteeing the smooth conduction of liquidation of foreign investment enterprises, protecting the legitimate rights and interests of creditors and investors and maintaining the social economic order.
Article 2 These Measures shall apply to liquidation of Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures and foreign-capital enterprises established in accordance with the law within the territory of the People’s Republic of China (hereinafter referred to as enterprises).
Enterprises declared bankruptcy in accordance with the law shall be handled in accordance with laws and regulations concerning bankruptcy and liquidation.
Article 3 Enterprises that can form a liquidation committee to conduct liquidation by themselves shall handle things in accordance with provisions of these Measures regarding ordinary liquidation.
Where an enterprise cannot form a liquidation committee to conduct liquidation by itself or the liquidation conducted in accordance with provisions concerning ordinary liquidation has run into serious obstacles, the organ of power of the enterprise such as the board of directors or the joint management committee (hereinafter referred to as the organ of power of the enterprise), the investors or the creditors may apply to the examination and approval authorities of the enterprise for a special liquidation. With the approval of the examination and approval authorities of the enterprise, the liquidation shall be conducted in accordance with provisions of these Measures regarding special liquidation.
Where an enterprise is ordered to be closed down and so is dissolved, the liquidation shall be conducted in accordance with provisions of these Measures regarding special liquidation.
Article 4 Liquidation of enterprises shall be conducted in accordance with provisions of relevant laws and regulations of the state, on the basis of the approved contract and articles of association of the enterprise and on the principle of fairness, reasonableness and protection of enterprises, investors and creditors. Chapter II Ordinary Liquidation
Section 1 Term of Liquidation
Article 5 The date on which the period of operations of the enterprise expires or the examination and approval authorities of the enterprise approves the dissolution of the enterprise or the people’s court or an arbitral authority makes a judgment or award to terminate the contract of the enterprise shall be considered as the starting date of the liquidation.
Article 6 The term of liquidation of an enterprise shall be 180 days, counting from the starting date of the liquidation to date on which the liquidation report is submitted to the examination and approval authorities of the enterprise.
When there is a need to extend the term of liquidation due to some special reasons, the liquidation committee shall, 15 days before the expiration of the term of liquidation, submit an application for the extension to the examination and approval authorities of the enterprise. 90 days shall be the limit for extension.
Article 7 In its term of liquidation, an enterprise may not develop new business operations.
Section 2 Liquidation Organization
Article 8 The organ of power of the enterprise shall organize and establish a liquidation committee for the liquidation of the enterprise. The liquidation committee shall be established within 15 days from the starting date of the liquidation.
Article 9 The liquidation committee shall be composed of at least three persons, who shall be selected among members of the organ of power of the enterprise or engaged from relevant professional personnel by the organ of power of the enterprise.
The liquidation committee shall have a chairman, which shall be appointed by the organ of power of the enterprise. With the approval of the organ of power of the enterprise, the liquidation committee may engage persons for handling daily routine.
Article 10 If any of the following circumstances occurs in duration of liquidation, the relevant member of the liquidation committee shall be replaced:
(1) The member of the liquidation committee has committed illegal activities;
(2) Any creditor requests with justified reasons the member of the liquidation committee be replaced; or
(3) The member of the liquidation committee has died or has lost capacity.
Article 11 During liquidation, the liquidation committee shall exercise the following powers and functions:
(1) Liquidate the assets of the enterprise, work out a balance sheet and a detailed inventory of assets of the enterprise, and formulate a scheme of liquidation;
(2) Inform unknown creditors by announcement and notify the known creditors in writing;
(3) Dispose of and liquidate relevant unfinished business of the enterprise;
(4) Give the basis for valuing and calculating the assets;
(5) Pay off taxes owed by the enterprise;
(6) Clear up claims and debts;
(7) Dispose of, after paying off the debts of the enterprise, its remaining assets; and
(8) Participating in civil lawsuits on behalf of the enterprise.
Article 12 The balance sheet and detailed inventory of assets worked out by the liquidation committee, the basis given by the liquidation committee for valuing and calculating the assets and the scheme of liquidation formulated by the liquidation committee shall be submitted to the examination and approval authorities of the enterprise for filing after being confirmed by the organ of power of the enterprise.
Article 13 After the liquidation committee has been formed, relevant personnel of the enterprise shall, within the time limit prescribed by the liquidation committee, submit to the liquidation committee the accounting statements, account books, list of property, list of creditors and debtors and other liquidation-related information of the enterprise.
Article 14 The liquidation committee shall perform the liquidation obligations in accordance with the law and handle liquidation affairs on the principle of consultation.
Members of the liquidation committee shall be devoted to their duties and may not accept bribes or seek for illegal income by taking advantage of their position and power, or embezzle any assets of the enterprise.
Article 15 During liquidation, the examination and approval authorities of the enterprise and other relevant competent authorities may send attendants to conferences concerning liquidation of the enterprise, so as to conduct supervision over the liquidation work of the enterprise.
Section 3 Notice and Announcement
Article 16 The enterprise shall, within seven days from the starting date of the liquidation, notify in writing the name and address of the enterprise, the reason for the liquidation and the starting date of the liquidation to the examination and approval authorities and the department in charge of the enterprise, the customs, the authorities for foreign exchange control, the registration authorities, tax authorities and the bank with which the enterprise has its account, etc., and to the administrative department for state property if the enterprise holds state property.
Article 17 The liquidation committee shall, within 10 days of its establishment, notify in writing the known creditors to lodge claims and, within 60 days of its establishment, make announcement at least twice in a newspaper of national circulation and a local provincial or municipal newspaper. The first announcement shall be made within 10 days of the establishment of the liquidation committee.
The liquidation announcement shall state the name and address of the enterprise, the reason for liquidation, the starting date of liquidation, the address of the liquidation committee, the list of members of the liquidation committee and the contact person.
Article 18 Creditors shall, within 30 days of the receipt of the notice, or within 90 days of the first announcement if no notice has been received, lodge claims with the liquidation committee.
Article 19 Creditors shall lodge claims within the specified time limit and submit documents supporting the amount of claim and other certificates related to the claim.
In case a creditor fails to lodge claims within the specified time limit, the following provisions shall be applied:
(1) Claims of known creditors shall be included in the liquidation; and
(2) Unknown creditors may lodge claims anytime before the distribution of the remaining assets of the enterprise is brought to an end; the failure to do so shall be deemed as abandonment of claims.
Section 4 Claims, Debts and Clearing
Article 20 The liquidation committee shall make registration of claims lodged by creditors and, after verifying the claims, notify the creditors in writing of the verification results.
Article 21 Creditors who call in question the verification result given by the liquidation committee on claims may, within 15 days after the receipt of the written notice, apply to the liquidation committee for re-verification. Creditors who call in question the result of re-verification may, within 15 days after the receipt of the written notice regarding the re-verification result, bring a lawsuit with the people’s court in the place of the domicile of the enterprise; in case of an arbitration agreement concluded between the enterprise and the creditor, the creditor shall apply for arbitration in accordance with the law.
During proceedings or arbitration, no assets under disputes may be distributed by the liquidation committee.
Article 22 The liquidation committee shall state reasons in writing and give proof to the organ of power of the enterprise for the inventory profits, inventory losses, disposal of property, insolvent obligations or non- recoverable claims, and income or losses incurred during the liquidation period, and count them into liquidation profits and losses.
Article 23 The following liquidation expenses shall be covered as the first priority with the assets subject to liquidation:
(1) expenses needed for the administration, disposal and distribution of the assets subject to liquidation of the enterprise;
(2) costs of announcement, litigation and arbitration; and
(3) other expenses needed to pay during the liquidation.
Article 24 With respect to secured claims established before the starting date of liquidation, the creditor shall have priority in getting payment with the collateral.
Where the amount of a secured claim exceeds the amount obtained through the disposal of the collateral, the unpaid part of the claim shall be paid in the order stipulated in Article 25 of these Measures.
Article 25 After the prior deduction of liquidation expenses from the assets subject to liquidation, payment shall be made in the following order:
(1) wages and labor insurance premiums of the staff and workers;
(2) taxes; and
(3) other debts.
Article 26 No assets of the enterprise may be distributed before the liquidation expenses have been covered and the debts of the enterprise have been paid off.
Subject to other stipulations by laws, regulations or contracts or articles of association of the enterprise, the remaining assets of the enterprise after paying off the liquidation expenses and all the debts shall be distributed in proportion to the actual investments by the investors.
Article 27 If the liquidation committee finds during the liquidation that the assets of the enterprise are insufficient to pay off its debts, it shall apply to the people’s court for a declaration of bankruptcy of the enterprise; the enterprise having been declared bankruptcy in accordance with the law shall be treated in accordance with laws and regulations concerning bankruptcy liquidation.
Article 28 The following acts committed by the enterprise within 180 days before the starting date of the liquidation shall be null and void:
(1) voluntarily convey assets of the enterprise;
(2) abnormally undersell property of the enterprise;
(3) give property security for debts on which there was no property security;
(4) pay off debts that has not become due; and
(5) waive claims of the enterprise.
From the starting date of the liquidation to the closing of the liquidation, neither Chinese nor foreign investors may dispose of the property of the enterprise.
Section 5 Assessment and Disposition of Assets Subject to Liquidation
Article 29 The assessment of assets subject to liquidation shall be conducted in accordance with the following provisions:
(1) Where there are stipulations in the contract or articles of association of the enterprise, such stipulations shall be observed;
(2) Where no stipulations have been made in the contract or articles of association of the enterprise, the decision shall be made through consultation by the Chinese and foreign investors and submitted to the examination and approval authorities of the enterprise for approval;
(3) Where no stipulations have been made in the contract or articles of association of the enterprise, nor agreement can be reached through consultation by the Chinese and foreign investors, the liquidation committee shall make the determination in accordance with relevant provisions of the state and with reference to the opinions given by an assets assessing institute and submit it to the examination and approval authorities of the enterprise for approval; and
(4) Where the people’s court judges or an arbitration organ awards an termination of the contract of the enterprise and specifies the measures for assessing the assets subject to liquidation, such measures shall be applied.
Article 30 When assets subject to liquidation are sold off, the investors of the enterprise shall have priority in making purchase and the assets shall be sold to whoever makes the highest offers.
Section 6 The Closing of Liquidation
Article 31 The liquidation committee shall, after finishing the work defined by the scheme of liquidation, work out a liquidation report, which shall include the following contents:
(1) reasons for liquidation and term and process of the liquidation;
(2) the outcome of disposition of claims and debts; and
(3) the outcome of disposition of assets subject to liquidation.
Article 32 The liquidation report shall, after confirmed by the organ of power of the enterprise, be submitted to the examination and approval authorities of the enterprise for filing.
Article 33 The liquidation committee shall, within 10 days from the date on which the liquidation report is submitted to the examination and approval authorities of the enterprise, go through the cancellation formalities with the tax authorities and the customs.
The liquidation committee shall, within 10 days after the formalities prescribed by the preceding paragraph are completed, go through the cancellation formalities with, and hand in the business license to the registration authorities of the enterprise by submitting the liquidation report together with the cancellation certificates issued by tax authorities and the customs, and be responsible for making announcement of the termination of the enterprise on a newspaper of national circulation and a local provincial or municipal newspaper.
Article 34 After closing the liquidation and before going through the cancellation formalities, the enterprise shall, in accordance with the following provisions, turn over various accounting vouchers, account books, accounting statements and so on it keeps:
(1) In the case of a Chinese-foreign equity joint venture or a Chinese- foreign contractual joint venture, the Chinese investor shall be responsible for the custody; where there are more than one Chinese investor, the department in charge of the enterprise shall designate one of them to take charge of the custody; or
(2) In the case of a foreign-capital enterprise, the examination and approval authorities of the enterprise shall designate a unit to take charge of the custody. Chapter III Special Liquidation
Article 35 The date on which the examination and approval authorities of the enterprise approves the special liquidation or the date on which the enterprise is ordered to close down shall be considered as the starting date of the liquidation.
Article 36 For special liquidation of an enterprise, the examination and approval authorities of the enterprise or a department entrusted thereby shall organize Chinese and foreign investors, representatives from relevant departments and relevant professional personnel to form a liquidation committee.
Article 37 The liquidation committee shall have a chairman, which shall be nominated by the examination and approval authorities of the enterprise or the department entrusted thereby. During the special liquidation, the chairman of the liquidation committee shall exercise the functions and powers of the legal representative of the enterprise, and the liquidation committee shall exercise the functions and powers of the organ of power of the enterprise.
The liquidation committee shall handle liquidation affairs and is accountable to the examination and approval authorities of the enterprise.
Article 38 The liquidation committee may convene conferences of the organ of power of the enterprise and conferences of creditors to discuss specific matters related to liquidation.
Article 39 All creditors are members of the conference of creditors. Members of the conference of creditors shall have voting power, but creditors who have claims secured by property and have not waived the priority in getting repayment shall not.
The chairman of the conference of creditors shall be nominated by the examination and approval authorities of the enterprise or the department entrusted thereby from among the creditors having voting power.
Article 40 The conference of creditors shall be convened by the liquidation committee. The liquidation committee shall, within 15 days before the conference, notify creditors in writing. A creditor who cannot attend the conference of creditors shall entrust another person by written authorization as his agent to attend the conference.
Article 41 The conference of creditors shall exercise the following functions and powers:
(1) Examine supporting materials given by creditors for their claims, and the amount and guarantee situation of claims; and
(2) Find out about the situation of the clearing of debts and convey to the liquidation committee the opinions of creditors with respect to the scheme of liquidation and the situation of the clearing of debts.
Article 42 The scheme of liquidation and liquidation report worked out by the liquidation committee must be confirmed by the examination and approval authorities of the enterprise.
Article 43 Matters which are not covered by this chapter concerning special liquidation shall be handled by applying provisions of Chapter II of these Measures. Chapter IV Legal Liabilities
Article 44 If an enterprise develops new business activities during the period of liquidation, the registration authorities of the enterprise shall order the enterprise to make corrections and may impose a fine between 10,000 and 100,000 yuan.
Article 45 Where an enterprise fails to notify creditors or make announcement in accordance with the provisions of Article 17 of these Measures, the registration authorities of the enterprise shall order the enterprise to make corrections and may impose a fine between 10,000 and 100,000 yuan.
Article 46 If a Chinese or foreign investor, in violation of the provisions of Paragraph 2, Article 28 of these Measures, dispose of the property of the enterprise in the period of liquidation, the examination and approval authorities of the enterprise shall order a restoration to the original state or order the investor to return the disposed property to the enterprise; where any damage is caused, the investor shall bear the compensation responsibility.
Article 47 Where a liquidation committee fails to submit the liquidation report for filing to the examination and approval authorities of the enterprise or fails to submit the liquidation report to the registration authorities of the enterprise in accordance with the provisions of Article 32 or 33 of these Measures, or conceals important facts or omits major matters when submitting the liquidation report, the examination and approval authorities and the registration authorities of the enterprise shall order the liquidation committee to make corrections.
If the liquidation committee fails to go through the cancellation formalities for the enterprise in accordance with the provisions of Article 33 of these Measures, the registration authorities of the enterprise shall revoke its business license and make announcement.
Article 48 Where an enterprise under liquidation conceals assets, makes false balance sheet or false inventory of assets or distributes the assets of the enterprise before the payment of liquidation expenses and the debts of the enterprise, the examination and approval authorities and the registration authorities of the enterprise shall order the enterprise to make corrections and the registration authorities of the enterprise shall impose a fine between one and five percent of the amount of assets concealed or the amount of the assets distributed before all debts of the enterprise are paid off; the person in charge directly responsible and other person directly responsible shall be imposed a fine between 10,000 and 100,000 yuan.
Article 49 If a member of a liquidation committee takes advantage of his position and power to play favoritism and commit irregularities, seek for illegal earnings or embezzle the assets of the enterprise, the examination approval authorities and the registration authorities of the enterprise shall order the person to return the embezzled assets and the registration authorities of the enterprise shall confiscate the illegal earnings and may impose a fine between one and five times the illegal earnings.
Article 50 Those violating provisions of these Measures and committing a crime shall be investigated for criminal responsibility. Chapter V Supplementary Provisions
Article 51 These Measures shall go into effect as of the date of promulgation.
