ADMINISTRATIVE PENALTY LAW

Law of the People’s Republic of China on Administrative Penalty

CHAPTER I GENERAL PROVISIONS

CHAPTER II TYPES AND CREATION OF ADMINISTRATIVE PENALTY

CHAPTER III ORGANS IMPOSING ADMINISTRATIVE PENALTY

CHAPTER IV JURISDICTION AND APPLICATION OF ADMINISTRATIVE PENALTY CHAPTER V DECISION ON AN ADMINISTRATIVE PENALTY

SECTION 1 SUMMARY PROCEDURE

SECTION 2 ORDINARY PROCEDURE

SECTION 3 PROCEDURE OF HEARING

CHAPTER VI ENFORCEMENT OF ADMINISTRATIVE PENALTY

CHAPTER VII LEGAL RESPONSIBILITY

CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 1 Pursuant to the Constitution, this Law is enacted for the purpose of standardizing creation and imposition of administrative penalty,
ensuring and supervising the effective exercise of administration by administrative organs, safeguarding public interests and public
order, and protecting the lawful rights and interests of citizens, legal persons and other organizations.

Article 2 Creation and imposing of administrative penalty shall be governed by this Law.

Article 3 Where administrative penalty needs to be imposed on citizens, legal persons or other organizations for their violations of the order
of administration, it shall be prescribed by laws, rules or regulations pursuant to this Law and imposed by administrative organs
in compliance with the procedure prescribed by this Law.

Administrative penalty that is not imposed in accordance with law or in compliance with legal procedures shall be invalid.

Article 4 Administrative penalty shall be imposed in adherence to the principles of fairness and openness.

Creation and imposition of administrative penalty shall be based on facts and shall be in correspondence with the facts, nature and
seriousness of the violations of law and damage done to society.

Regulations on administrative penalty to be imposed for violations of law must be published; those which are not published shall not
be taken as the basis for administrative penalty.

Article 5 In imposing administrative penalty and setting to rights illegal acts, penalty shall be combined with education, so that citizens,
legal persons and other organizations shall become aware of the importance of observing law.

Article 6 Citizens, legal persons and other organizations on whom administrative penalty is imposed by administration organs shall have the
right to state their cases and the right to defend themselves; those who refuse to accept administrative penalty shall have the right
to apply for administrative reconsideration or bring an administrative lawsuit in accordance with law.

Citizens, legal persons and other organizations that have suffered damage due to administrative penalty imposed by administrative
organs in violation of law shall have the right to demand compensation in accordance with law.

Article 7 Citizens, legal persons and other organizations that are subjected to administrative penalty because of their violations of law shall,
in accordance with law, bear civil liability for damage done to others by their illegal acts.

Where an illegal act constitutes a crime, criminal responsibility shall be investigated in accordance with law; no administrative
penalty shall be imposed in place of criminal penalty.

CHAPTER II TYPES AND CREATION OF ADMINISTRATIVE PENALTY

Article 8 Types of administrative penalty shall include:

(1) disciplinary warning;

(2) fine;

(3) confiscation of illegal gains or confiscation of unlawful property or things of value;

(4) ordering for suspension of production or business;

(5) temporary suspension or rescission of permit or temporary suspension or rescission of license;

(6) administrative detention; and

(7) others as prescribed by laws and administrative rules and regulations.

Article 9 Different types of administrative penalty may be created by law.

Administrative penalty involving restriction of freedom of person shall only be created by law.

Article 10 Administrative penalties, with the exception of restricting freedom of person, may be created by administrative rules and regulations.

Where it is necessary to formulate specific provisions, in administrative rules and regulations, regarding violations of law for which
administrative penalties have been formulated in laws, it must be done within the limits of the acts subject to administrative penalty
and the types and range of such penalty as prescribed by laws.

Article 11 Administrative penalties, with the exception of restriction of freedom of person and rescission of business license of an enterprise,
may be created in local regulations.

Where it is necessary to formulate specific provisions, in local regulations, regarding violations of law for which administrative
penalties have been formulated in laws and administrative rules and regulations, it must be done within the limits of the acts subject
to administrative penalty and the types and range of such penalty as prescribed by laws and administrative rules and regulations.

Article 12 The ministries and commissions under the State Council may, in the rules they enact, formulate specific provisions within the limits
of the acts subject to administrative penalty and the types and range of such penalty as prescribed by laws and administrative rules
and regulations.

With regard to violations of administration order against which no laws or administrative rules and regulations have been enacted,
the ministries and commissions under the State Council may create administrative penalty of disciplinary warning or a certain amount
of fine in the rules they enact, as stipulated in the preceding paragraph. The specific amounts of fine shall be laid down by the
State Council.

The State Council may authorize the departments directly under it that have the power of administrative penalty to formulate provisions
on administrative penalty in accordance with the first and second paragraph of this Article.

Article 13 The people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government, of the cities
where the people’s governments of provinces and autonomous regions are located, and of the larger cities approved as such by the
State Council may, within the limits of the acts subject to administrative penalty and the types and range of such penalty as prescribed
by laws and regulations, formulate specific provisions in the rules they enact.

With regard to violations of administration order against which no laws or regulations have been enacted, the people’s governments
may create administrative penalty of disciplinary warning or certain amount of fine in the rules they enact, as stipulated in the
preceding paragraph. The specific amounts of fine shall be laid down by the standing committees of the people’s congresses of provinces,
autonomous regions, and municipalities directly under the Central Government.

Article 14 No administrative penalties shall be created in any other regulatory documents in addition to the ones as stipulated in Articles
9, 10, 11, 12 and 13 of this Law.

CHAPTER III ORGANS IMPOSING ADMINISTRATIVE PENALTY

Article 15 Administrative penalty shall be imposed by administrative organs that have the power of administrative penalty within the scope of
their statutory functions and powers.

Article 16 The State Council or the people’s government of a province, autonomous region or municipality directly under the Central Government
that is empowered by the State Council may decide to have an administrative organ exercise other administrative organs’ power of
administrative penalty. However, the power of administrative penalty involving restriction of freedom of person shall only be exercised
by the public security organs.

Article 17 Organizations that are authorized by laws and regulations to exercise the power of administering public affairs may impose administrative
penalty within the scope of their powers as authorized by law.

Article 18 In accordance with the provisions of laws, regulations or rules, an administrative organ may, within the scope of its powers as prescribed
by law, entrust an organization that meets the conditions stipulated in Article 19 of this Law with imposing administrative penalty.
An administrative organ may not entrust other organizations or individuals with imposing administrative penalty.

The entrusting administrative organ shall be responsible for supervising the imposition of administrative penalty by the entrusted
organization and shall bear legal responsibility for the consequences of the imposition.

The entrusted organization shall, within the scope of authorization, impose administrative penalty in the name of the entrusting administrative
organ, and may not further entrust any other organization or individual with imposing the administrative penalty.

Article 19 The organization to be entrusted shall meet the following conditions:

(1) to be an institution in charge of public affairs established in accordance with law;

(2) to be staffed with personnel who are familiar with relevant laws, regulations and rules and are experienced in the work; and

(3) to have the conditions for organizing and conducting the technical tests or technical appraisal that are needed for testing or
appraising illegal acts.

CHAPTER IV JURISDICTION AND APPLICATION OF ADMINISTRATIVE PENALTY

Article 20 Administrative penalty shall come under the jurisdiction of an administrative organ having the power of administrative penalty of
a local people’s government at or above the county level in the place where the illegal act is committed, except as otherwise prescribed
by laws or administrative rules and regulations.

Article 21 If a dispute arises over jurisdiction between administrative organs, the matter shall be reported to their common administrative
organ at the next higher level for designation of jurisdiction.

Article 22 If an illegal act constitutes a crime, the administrative organ must transfer the case to a judicial organ for investigation of criminal
responsibility according to law.

Article 23 When enforcing an administrative penalty, the administrative organ shall order the party to put right his illegal acts or to do so
within a time limit.

Article 24 For the same illegal act committed by a party, the party shall not be given an administrative penalty of fine for more than once.

Article 25 If a person under the age of 14 commits an illegal act, no administrative penalty shall be imposed on him, but his guardian shall
be ordered to discipline and educate him; if a person who has reached the age of 14 but not the age of 18 commits an illegal act,
a lighter or mitigated administrative penalty shall be imposed on him.

Article 26 If a mental patient commits an illegal act at a time when he is unable to recognize or cannot control his own conduct, no administrative
penalty shall be imposed on him, but his guardian shall be ordered to keep him under close surveillance and arrange for his medical
treatment. Administrative penalty shall be imposed on a person whose mental illness is of an intermittent nature and who commits
an illegal act when he is in a normal mental state.

Article 27 A party shall be given a lighter or mitigated administrative penalty in accordance with law, if:

(1) he has taken the initiative to eliminate or lessen the harmful consequences occasioned by his illegal act;

(2) he has been coerced by another to commit the illegal act;

(3) he has performed meritorious deeds when working in coordination with administrative organs to investigate violations of law; or

(4) he is under other circumstances for which he shall be given a lighter or mitigated administrative penalty in accordance with law.

Where a person commits a minor illegal act, promptly puts it right and causes no harmful consequences, no administrative penalty shall
be imposed on him.

Article 28 If an illegal act constitutes a crime, for which a People’s Court sentences him to criminal detention or fixed-term imprisonment,
and if an administrative organ has already imposed administrative detention on the party, the length of detention shall be made the
same as the term of imprisonment in accordance with law.

If an illegal act constitutes a crime, for which a People’s Court imposes a fine on the party, and if an administrative organ has
already done so, the amount of the fine imposed by the latter shall be made the same as that by the former.

Article 29 Where an illegal act is not discovered within two years of its commission, administrative penalty shall no longer be imposed, except
as otherwise prescribed by law.

The period of time prescribed in the preceding paragraph shall be counted from the date the illegal act is committed; if the act is
of a continual or continuous nature, it shall be counted from the date the act is terminated.

CHAPTER V DECISION ON AN ADMINISTRATIVE PENALTY

Article 30 Where citizens, legal persons or other organizations violate administration order and should be given administrative penalty according
to law, administrative organs must ascertain facts; if the facts about the violations are not clear, no administrative penalty shall
be imposed.

Article 31 Before deciding to impose administrative penalties, administrative organs shall notify the parties of the facts, grounds and basis
according to which the administrative penalties are to be decided on and shall notify the parties of the rights that they enjoy in
accordance with law.

Article 32 The parties shall have the right to state their cases and to defend themselves. Administrative organs shall fully heed the opinions
of the parties and shall reexamine the facts, grounds and evidence put forward by the parties; if the facts, grounds and evidence
put forward by the parties are established, the administrative organs shall accept them.

Administrative organs shall not impose heavier penalties on the parties just because the parties have tried to defend themselves.

Article 33 If the facts about a violation of law are well-attested and there are legal basis and if, the citizen involved is to be fined not
more than 50 yuan or the legal person or other organization involved is to be fined not more than 1,000 yuan or a disciplinary warning
is to be given, such administrative penalty may be decided on the spot. The party shall carry out the decision on administrative
penalty in accordance with the provisions of Articles 46, 47 and 48 of this Law.

Article 34 If a law-enforcing officer decides to impose administrative penalty on the spot, he shall show the party his identification papers
for law enforcement, fill out an established and coded form of decision for administrative penalty. The form of decision for administrative
penalty shall be given to the party on the spot.

In the form of decision for administrative penalty as stipulated in the preceding paragraph shall be clearly recorded the illegal
act committed by the party, the basis for administrative penalty, the amount of fine, the time and place, and the post_title of the administrative
organ. Such form shall also be signed or sealed by the law-enforcing officer.

Law-enforcing officers must submit their decisions on administrative penalty made on the spot to the administrative organs where they
belong for the record.

Article 35 If a party refuses to accept the decision on administrative penalty made on the spot, he may apply for administrative reconsideration
or bring an administrative lawsuit in accordance with law.

Article 36 Except for the administrative penalties which may be imposed on the spot as provided in Article 33 of this Law, administrative organs,
when discovering that citizens, legal persons or other organizations have committed acts for which administrative penalty should
be imposed according to law, shall conduct investigation in a comprehensive, objective and fair manner and collect relevant evidence;
when necessary, they may conduct inspection in accordance with the provisions of laws and regulations.

Article 37 When administrative organs conduct investigations or inspections, there shall be not less than two law-enforcing officers, who shall
show their identification papers to the party or other persons concerned. The party and other persons concerned shall truthfully
answer the questions and assist in the investigation or inspection; they may not obstruct such investigation or inspection. Written
record shall be made for the inquiry or inspection.

When collecting evidence, administrative organs may obtain evidence through sampling; under circumstances where there is a likelihood
that the evidence may be destroyed or lost, or difficult to obtain later, administrative organs may, with the approval of their leading
members, first register the evidence for preservation and shall make a timely decision on its disposition within seven days. During
this period of time, the party and other persons concerned may not destroy or transfer the evidence.

If a law-enforcing officer shares a direct interest with the party, he shall withdraw.

Article 38 After an investigation has been concluded, leading members of an administrative organ shall examine the results of the investigation
and make the following decisions in light of different circumstances:

(1) to impose administrative penalty where an illegal act has really been committed and for which administrative penalty should be
imposed, in light of the seriousness and the specific circumstances of the case;

(2) to impose no administrative penalty where an illegal act is minor and which may be exempted from administrative penalty according
to law;

(3) to impose no administrative penalty where the facts about an illegal act are not established; or

(4) to transfer the case to a judicial organ where an illegal act constitutes a crime.

Before imposing a heavier administrative penalty for an illegal act which is of a complicated or grave nature, the leading members
of an administrative organ shall make a collective decision through discussion.

Article 39 To impose administrative penalty according to the provisions of Article 38 of this Law, an administrative organ shall fill out form
of decision for administrative penalty. The following particulars shall be clearly recorded in a form of decision for administrative
penalty:

(1) name, or post_title, and address of the party;

(2) facts and evidence for the violation of law, regulations or rules;

(3) type of and basis for administrative penalty;

(4) manner of and time limit for enforcement of administrative penalty;

(5) channel and time limit for applying for administrative reconsideration or bringing an administrative lawsuit if the party refuses
to accept the decision on administrative penalty; and

(6) post_title of the administrative organ that makes the decision on administrative penalty and the date on which the decision is made.

To the form of decision for administrative penalty must be affixed the seal of the administrative organ that makes the decision on
administrative penalty.

Article 40 The form of decision for administrative penalty shall be given to the party on the spot after announcement of the decision; if the
party is not present, the administrative organ shall, within seven days, serve the form of decision for administrative penalty on
the party in accordance with the relevant provisions of the Civil Procedure Law.

Article 41 If, before making a decision on administrative penalty, an administrative organ or its law-enforcing officer, fails to notify, as
stipulated in Articles 31 and 32 of this Law, the party of the facts about the violation, grounds and basis on which the administrative
penalty is imposed, or refuses to heed the party’s statement and self- defense, the decision on administrative penalty shall be invalid,
except that the party relinquishes the right to make a statement or to defend himself.

Article 42 An administrative organ, before making a decision on administrative penalty that involves ordering for suspension of production or
business, rescission of business permit or license or imposition of a comparatively large amount of fine, shall notify the party
that he has the right to request a hearing; if the party requests a hearing, the administrative organ shall arrange for the hearing.
The party shall not bear the expenses for the hearing arranged by the administrative organ. The hearing shall be arranged according
to the following procedure:

(1) To request a hearing, the party shall do it within three days after being notified by the administrative organ;

(2) The administrative organ shall, seven days before the hearing is held, notify the party of the time and place for the hearing;

(3) The hearing shall be held openly, except where State secrets, business secrets or private affairs are involved;

(4) The hearing shall be presided over by a person other than the investigator of the case designated by the administrative organ;
if the party believes that the person has a direct interest in the current case, he shall have the right to apply for the person’s
withdrawal;

(5) The party may participate in the hearing in person, or he may entrust one or two persons to act on his behalf;

(6) The investigator shall, when the hearing is conducted, put forward the facts about the violations of law committed by the party,
the evidence and recommendation for administrative penalty; the party may defend himself and make cross-examination; and

(7) Written record shall be made for the hearing; the written record shall be shown to the party for checking, and when the party
acknowledges that the record is free of error, he shall sign or affix his seal to it.

If the party has objection to the administrative penalty that involves restriction of freedom of person, the relevant provisions of
Regulations on Administrative Penalties for Public Security shall apply.

Article 43 When a hearing is concluded, the administrative organ shall make a decision in accordance with the provisions of Article 38 of this
Law.

CHAPTER VI ENFORCEMENT OF ADMINISTRATIVE PENALTY

Article 44 After a decision on administrative penalty has been made in accordance with law, the party shall carry it out within the time limit
set by the decision on administrative penalty.

Article 45 If the party refuses to accept the decision on administrative penalty and applies for administrative reconsideration or brings an
administrative lawsuit, enforcement of the administrative penalty shall not be suspended, except as otherwise prescribed by law.

Article 46 The administrative organ that makes the decision on a fine shall be separated from the organ that collects the fine.

Except for circumstances under which fines shall be collected on the spot according to the provisions of Articles 47 and 48 of this
Law, no administrative organs that make the decision on administrative penalty or their law-enforcing officers shall collect fines
themselves.

The parties shall, within 15 days from the date they receive the forms of decision for administrative penalty, pay the fines to the
banks as designated. The banks shall accept the fines and turn them over directly to the State Treasury.

Article 47 If a decision on administrative penalty is made on the spot in accordance with the provisions of Article 33 of this Law, lawenforcing
officers may collect fines on the spot under one of the following circumstances:

(1) The fines imposed according to law is not more than 20 yuan; or

(2) It is difficult to carry out the decision if the fine is not collected on the spot.

Article 48 If, after a decision on fine is made by an administrative organ or its law-enforcing officers in accordance with the provisions of
Article 33 or Article 38 of this Law, it is really difficult for the party in the area which is outlying, on water or not easily
accessible to pay the fine to the bank as designated, the administrative organ or its law-enforcing officers may, upon the request
of the party, collect the fine on the spot.

Article 49 Where fines are collected on the spot by an administrative organ or its law-enforcing officers, the parties shall be given receipts
for the fines as are uniformly made and issued by finance departments of provinces, autonomous regions or municipalities directly
under the Central Government; if such receipts are not given, the parties shall have the right to refuse to pay the fines.

Article 50 Fines collected by law-enforcing officers on the spot shall be turned over to administrative organs within two days from the date
the fines are collected; fines collected on the spot on water shall be turned over to administrative organs within two days from
the date of landing; the administrative organs shall, within two days, deliver the fines over to the banks as designated.

Article 51 If the parties fail to carry out the decision on administrative penalty within the time limit, the administrative organ that made
the decision on administrative penalty may adopt the following measures:

(1) to impose an additional fine at the rate of 3% of the amount of the fine per day;

(2) in accordance with law, to sell by auction the sealed up or seized property or things of value or to transfer the frozen deposits
to offset the fine; and

(3) to apply to a People’s Court for compulsory enforcement.

Article 52 If the parties truly have financial difficulties and need to postpone payment of the fines or pay them in installments, payment may
be put off for the time being or made in installments after the parties have applied to and obtained approval of the administrative
organs.

Article 53 With the exception of the confiscated articles or goods that should be destroyed in accordance with law, the illegal property or
things of value that have been confiscated according to law shall be sold by public auction in accordance with the regulations of
the State or shall be disposed of in accordance with relevant State regulations.

Fines, confiscated illegal gains or money obtained from sale by auction of the confiscated illegal property or things of value shall
be turned over to the State Treasury in full, and no administrative organs or individuals may, in any manner, withhold, or share
these out privately, or do so in disguised form; no finance department shall, in any manner, give the back to the administrative
organs that decided to impose the fines or give them back the illegal gains they confiscated or the money they obtained from sale
by auction of the confiscated illegal property or things of value.

Article 54 Administrative organs shall establish a sound supervisory system for administrative penalty. People’s governments at or above the
county level shall exercise stricter supervision and inspection of administrative penalty.

A citizen, a legal person or other organization shall have the right to make an appeal or accusation against an administrative penalty
imposed by an administrative organ. The administrative organ shall carefully examine the appeal or accusation, and when it finds
that the administrative penalty is wrong, it shall take the initiative to correct it.

Article 55 If an administrative organ imposes an administrative penalty in any of the following manners, it shall be ordered by the administrative
organ at the higher level or a relevant department to make correction, and administrative sanctions may, in accordance with law,
be imposed upon the persons who are directly in charge and other persons who are directly responsible for the offense:

(1) without statutory basis for administrative penalty;

(2) by altering the types and range of administrative penalty, without authorization;

(3) in violation of the legal procedure for administrative penalty; or

(4) in violation of the provisions of Article 18 of this Law concerning entrusting an organization with imposition of administrative
penalty.

Article 56 If administrative organs, when imposing penalties on the parties, do not use the documents for fines and confiscation of property
or things of value, or use the documents for fines and confiscation of property or things of value that are prepared and issued by
non- statutory departments, the parties shall have the right to refuse to accept the penalties and the right to accuse them. The
administrative organs at higher levels or relevant departments shall confiscate and destroy the illegal documents in use and shall,
in accordance with law, impose administrative sanctions upon the persons who are directly in charge and other persons who are directly
responsible for the offense.

Article 57 If administrative organs, in violation of the provisions of Article 46 of this Law, collect fines themselves, if finance departments,
in violation of the provisions of Article 53 of this Law, give back to administrative organs fines or money obtained from sale by
auction of confiscated illegal property or things of value, the administrative organs at higher levels or relevant departments shall
order them to make correction and shall, in accordance with law, impose administrative sanctions upon the persons who are directly
in charge and other persons who are directly responsible for the offense.

Article 58 The fines, confiscated illegal gains or property or things of value that are withheld, shared out privately or done so in disguised
form by administrative organs shall be recovered by finance departments or relevant departments, the persons who are directly in
charge and other persons who are directly responsible for the offense shall be given administrative sanctions according to law; if
the offense is serious enough to constitute a crime, criminal responsibility shall be investigated in accordance with law.

If law-enforcing officers, taking advantage of their functions, ask for or accept other person’s property or things of value or take
into their own possession fines they have collected and, if the offense constitutes a crime, they shall be investigated for criminal
responsibility in accordance with law; if the offense is of a minor nature and does not constitute a crime, administrative sanctions
shall be imposed upon them in accordance with law.

Article 59 If administrative organs use or destroy the property or things of value they have seized and thus cause

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE APPLICABLE TAXATION POLICY OF THE FOREIGN PETROLEUM COMPANIES INVOLVING IN EXPLOITATION OF COAL GAS

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on the Applicable Taxation Policy of the Foreign Petroleum
Companies Involving in Exploitation of Coal Gas

CaiShuiZi [1996] No.62

July 5, 1996

The financial departments (bureaus), the state tax bureaus and the local tax bureaus in various provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan:

In order to encourage the foreign enterprises and enterprises with foreign investment (hereinafter referred to as enterprises ) to
exploit the overland coal gas level of our country, the taxation policy should be clarified as following:

The tax of the business earnings and other income of enterprises that exploit the overland coal gas level in our country should be
paid on basis of the Income Tax Law of the People’s Republic of China on Enterprises with Foreign Investment and Foreign Enterprises
and Rules for its implementation.

II.

The provisions on the enterprises with undertaking of the petroleum exploitation in Rules for the Implementation of the Income Tax
Law of the People’s Republic of China on Enterprises with Foreign Investment and Foreign Enterprises apply to the enterprises which
exploit the overland coal gas level.

III.

The provisions on the income tax of the enterprises that undertake the petroleum exploitation by collaboration stipulated by the Ministry
of Finance, the State Administration of Taxation and Offshore Oil Tax Administration are all applied to the enterprises which exploit
the overland coal gas resource unless the additional prescriptions serve.

IV.

The enterprises with undertaking of exploiting the coal gas should pay the value-added tax and mine usage fee according to Circular
of the State Administration of Taxation on the Payment of Value-added Tax on Chinese-foreign Cooperative Exploitation of Petroleum
Resource (GuoShuiFa [1994] No.114) and Interim Provisions on the Payment of Mine Usage Fee for Chinese-foreign Cooperative Exploitation
of Land Petroleum Resource (Decree [1990] No.3 of the Ministry of Finance)

The enterprises with the undertaking of exploiting coal gas should pay the tax of real estate, the tax of licences and the stamp tax
on basis of the Interim Regulations on Tax of Urban Real Estate, the Interim Regulations on Tax of Licences for Vehicles and Vessels
and the Interim Regulations of the People’s Republic of China on Stamp Tax respectively.

The Ministry of Finance, the State Administration of Taxation
1996-07-05

LAW ON LAWYERS AND LEGAL REPRESENTATION

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL FOR TRANSMITTING THE PROPOSALS SUBMITTED BY THE STATE ECONOMIC AND TRADE COMMISSION AND OTHER DEPARTMENTS ON CRACKING DOWN ON THE ILLEGAL ACTIVITIES OF PRODUCING AND SELLING FAKE AND LOW-QUALITY COMMODITIES

Category	ADMINISTRATION FOR INDUSTRY AND COMMERCE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1996-03-28	Effective Date	1996-03-28

Circular of the General Office of the State Council for Transmitting the Proposals Submitted by the State Economic and Trade Commission and Other Departments on Cracking Down on the Illegal Activities of Producing and Selling Fake and Low-quality Commodities

Proposals on Cracking Down on the Illegal Activities of Producing and

(March 28, 1996)

The Proposals on Cracking Down on the Illegal Activities of Producing and
Selling Fake and Low-Quality Commodities, submitted by the State Economic and
Trade Commission, the State Administration for Industry and Commerce and the
State Bureau of Technological Supervision, have been approved by the State
Council and are hereby transmitted to you. You are requested to implement
it accordingly.

Proposals on Cracking Down on the Illegal Activities of Producing and
Selling Fake and Low-Quality Commodities

Since 1992, various localities and relevant departments have seriously
implemented laws and regulations on cracking down on the illegal activities
of producing and selling fake and low-quality commodities, reinforced the
action of cracking down on the illegal activities of producing and selling
fake and low-quality commodities (hereinafter referred to as cracking down
on fake and low-quality commodities), and obtained temporary results. The
situation that fake and low-quality commodities emerge constantly despite
repeated prohibition, however, has not been thoroughly rectified and the
problem is even more serious in some localities, which has brought great harm
to the interests of the state and the people and jeopardized the social
stability. More resolute and effective measures, therefore, must be taken to
crack down on fake and low-quality commodities. The following proposals are
hereby submitted for that purpose:

1. The General Demand of the Work of Cracking Down on Fake and Low-
Quality Commodities in the Ninth Five-Year Plan Period

The general demand of the work of cracking down on fake and low-quality
commodities in the Ninth Five-Year Plan period: aiming at establishing a
healthy and orderly market competitive mechanism and sound legislation
system and thoroughly suppressing the illegal activities of producing and
selling fake and low-quality commodities, taking laws and regulations as the
basis, emphasizing cracking down on producing and selling fake and low-
quality medicines, food, farm-oriented industrial products and building
materials, follow the division of responsibility, perform combined
operations, strictly enforce the law, intercept the sources of fake and low-
quality commodities, rectify the market order, investigate and deal with
major and important cases, reinforce the strength of the crackdown and
promote the sustained, speedy and sound development of the national economy.

2. Six Key Points Which Need to Pay Attention in the Work for 1996 and
Current Period

(1) Commercial Enterprises’ Self-Inspection and Rectification

All commercial enterprises, especially those with a sales volume up to
100 million yuan, shall, in accordance with relevant stipulations and
standards, conduct a self-inspection and self-rectification upon all their
commodities either in stock or on sale, with the emphasis on ferreting out
commodities the indications of which fall short of the reality, which are
inferior goods but passed off as good ones, or which are adulterated or of
short weights. The offices of cracking down on fake and low-quality
commodities in various localities shall, on the basis of enterprises’ self-
inspections and rectification, organize a selective examination with a
coverage not lower than 30% and the examination results published through
news media. Commercial enterprises which are discovered, in the selective
examinations, having sold fake or low-quality commodities with serious
circumstances shall be dealt with strictly and given a heavier punishment,
with the persons directly responsible and the persons in charge of the
enterprises investigated for responsibility according to law.

(2) Continuing the Rectification of Various Commodity Markets

Devote major efforts to improving the market order, especially the
markets with serious problems of selling fake and low-quality commodities
shall be ordered to make rectification within a prescribed period. Markets
failing to have an effective rectification shall be closed without exception,
and the persons responsible shall be investigated for responsibility. The
main contents of the rectification are: whether the market has been
registered with the administrative department for industry and commerce;
whether the commodities for sale have a certificate of conformity, license
for the manufacture and name and address of the manufacturer; whether there is
a department in charge of the market; whether the market has a supervisory
and managerial organization or personnel; and other matters a locality
considers necessary to straighten out. A supervision and control system shall
be established and improved on the basis of rectification. Strengthen the
supervision over regions joining town and country, commodity collecting and
distributing centers and wholesale trading markets, and give a severe
crackdown on nests of producing and selling fake and low-quality
commodities.

(3) Rectifying Key Areas Within a Specified Time

Some areas of Guangdong, Zhejiang, Hebei and Henan provinces shall be
treated as key areas for the rectification within a specified time. People’s
governments of the four provinces shall work out their plan for the
rectification within a specified time, defining the task and responsibility,
and effectively accomplish the work of cracking down on fake and low-quality
commodities. Other local people’s governments shall also, in accordance with
their local circumstances about the illegal activities of producing and
selling fake and low-quality commodities, determine the key areas for the
rectification with a specified time. The national office for cracking down on
fake and low-quality commodities shall organize a selective examination in
the form of either public observation or private investigation.

(4) Launching Special Crackdown on Seven Key Categories of Commodities

a. Investigate and deal with fake and low-quality medicines (including
traditional Chinese and western prepared medicines, traditional Chinese
herbal medicines and traditional Chinese medicinal materials);

b. Investigate and deal with fake and low-quality farm-oriented
industrial products such as chemical fertilizers, pesticides and seeds;

c. Crack down on the illegal activities of cotton adulteration;

d. Investigate and deal with fake liquors, low-quality beverages, low-
quality salt and low-quality food;

e. Investigate and deal with fake famous-brand cigarettes;

f. Investigate and deal with fake and low-quality machinery and
electrical appliances; and

g. Investigate and deal with fake and low-quality building materials.

(5) Continuing the Investigation and Prosecution of Major and Important
Cases

Take the investigation and prosecution of major and important cases as an
important means for promoting the work of cracking down on fake and low-
quality commodities. In addition to about ten cases determined every year by
the state to be dealt with as major and important ones, all provinces,
autonomous regions, municipalities directly under the central government and
areas with a grave situation of producing or selling fake or low-quality
commodities shall also choose some major and important cases every year,
stick to them, carry the investigation to the finish, and give a heavier
and prompt punishment according to law.

(6) Protecting According to Law the Legitimate Rights and Interests of
Producers of Famous and Fine-Quality Products

Severely punish enterprises, groups and persons who produce or sell fake
famous and quality products, strengthen the protection of famous and quality
products. All localities and relevant departments shall, through the clues
provided by producers of famous and quality products, conduct investigation,
select and submit a number of cases of fake famous and quality products to
the national office for cracking down on fake and low-quality commodities for
national focal investigation, make unified planning, perform regional
cooperation, conduct the work separately and wage concentrated crackdown.

3. Adopting Effective Measures and Striving for Substantial Results

(1) Strengthening the Leadership and Defining the Responsibility

People’s governments at all levels shall strengthen the leadership over
the work of cracking down on fake and low-quality commodities, practically
assume the responsibility. For developing in depth the work of cracking down
on fake and low-quality commodities, the knowledge and determination of
leaders of local people’s governments at various levels, especially at the
county(city) and township(town) levels are very important. It is demand that
a target responsibility system shall be established level by level for the
work of cracking down on fake and low-quality commodities, and the target
responsibility for the rectification within a specified time shall be fixed
for the leaders of people’s governments of key areas. In case of failure to
attain the rectification targets, the leaders of the local people’s
government shall be investigated for responsibility. Leaders who obstruct the
work of cracking down on fake and low-quality commodities, connive at,
support or cover up illegal activities of producing or selling fake or low-
quality commodities shall be given disciplinary sanctions or investigated for
criminal responsibility. People’s governments of all localities shall give
strong backing to and ensure the funds for the work of cracking down on fake
and low-quality commodities.

Competent authorities for all trades shall further strengthen the
directions over the quality control of enterprises of their trade, help
the enterprises establish and improve the quality guarantee system and self-
supervision and binding mechanism, investigate and rectify the illegal
activities of producing and selling fake and low-quality commodities
conducted by enterprises of their trade, cooperate with relevant departments
and localities to eradicate the sources of the production and sale of fake
and low-quality commodities. State commercial departments and supply and
marketing cooperatives shall make strict checks in commodities’ purchasing,
inspection and receipt, entering storage and sales, prevent fake and low-
quality commodities from flowing into main channels.

(2) Strictly Enforcing the Law and Augmenting the Strength of Work

With a view to strengthening the work of cracking down on fake and low-
quality commodities, strictly enforcing the law and rectifying the situation
in some localities and departments that the available laws are not observed,
the enforcement of laws is not strict and criminal offenders are given
administrative fines instead of criminal punishment, from now on, relevant
administrative law-enforcing departments shall, when having discovered and
seized fake or low-quality commodities, promptly seal up the objects and
places and tools used in committing the offenses and, in accordance with law,
notify banks without delay to block all accounts of the offending unit or
person and, if the circumstances are serious with violation of the criminal
law, transfer the case to the judicial organ for handling according to law,
and no administrative fine may be substituted for the prosecution of criminal
responsibility.

Where activities of producing or selling fake or low-quality commodities
result in infringements on rights of other people, the infringer shall
compensate the party whose rights have been infringed for the losses; if
personal or property damages are caused, the infringer shall compensate the
victim for the losses.

Public servants, personnel of medical institutions, relevant personnel of
state and collective enterprises and institutions and other persons engaging
in official business who purchase fake or low-quality commodities and accept
sales commissions or disguised sales commissions shall be strictly investigated
and punished.

(3) Cooperating on the Basis of Division of Work and Taking Combined
Action in Cracking down on Fake and Low-Quality Commodities

Further strengthen the organization and coordination of the work of
cracking down on fake and low-quality commodities. Relevant departments and
units shall do their respective duties and make a concerted effort for
tackling problems in a comprehensive way. Relevant administrative law-
enforcing departments shall, in accordance with their functions entrusted by
relevant laws and regulations, conduct administration according to law and
cooperate with judicial organs in the work of cracking down on fake and low-
quality commodities for improving the whole efficiency of the work.

Enterprises shall dare to and know how to use legal means to safeguard
their own lawful rights and wage struggle against illegal activities. They
may organize public and private investigations, provide law-enforcing
departments with clues about producers and sellers of imitations of their
products, and take concerted action in the work.

Depend on the strength of public organizations and various intermediary
organizations, give full play to the roles of those organizations. Fully
arouse the masses and mobilize the whole society to participate in cracking
down on fake and low-quality commodities.

All localities shall establish a system for informing against fake and
low-quality commodities, encourage the masses to provide clues and take
strict precautions against retaliation upon the informers. Units and persons
having made remarkable contributions in informing against fake and low-
quality commodities shall be rewarded.

(4) Combining Elimination with Prevention and Taking both Stopgap and
Radical Measures

Try to seek an effective method for supervising and controlling the
market and speed up the formulation of relevant laws and regulations for
prohibiting the illegal activities of producing and selling fake and low-
quality commodities.

Strengthen the examination and administration of and supervision over
enterprises of various types. For current period, especially the individual
businesses, private enterprises and township enterprises shall be put under
strict supervision with regard to the quality of products. Enterprises which
have not been registered shall be resolutely banned.

Encourage producers of famous and quality products to adopt anti-
imitation technologies, and strengthen the supervision and control over the
anti-imitation technologies and products.

Any unit or individual who makes various false quality marks such as
trademarks, authentication marks, high-quality marks, food labels and
licenses for the manufacture, etc. shall be revoked of their business
licenses and severely punished according to law.

Administrative departments for industry and commerce shall strengthen the
supervision and control over advertising activities, conduct strict
examination on advertisement of medicines, food, medical apparatus and
instruments, pesticides and veterinary medicines, etc. and strictly forbid
pushing the sale of fake and low-quality commodities by making false
advertisement.

(5) Strengthening the Publicity and Giving Proper Directions

Continue to give report and publicity to typical cases, give wide
publicity to advanced experiences and enhance the whole nation’s awareness
of legality, quality, fair competition and self-protection. Those who are
bold in boycotting fake and low-quality commodities and take active
participation in the struggle against the illegal activities of producing and
selling fake and low-quality commodities shall be widely cited.

Further developing the work of cracking down on fake and low-quality
commodities is an objective demand for maintaining the market order and
keeping a proper relationship between the reform, development and stability,
and is also of great importance to the effective protection of the people’s
immediate interests. There has been a high voice from the masses appealing
for cracking down on fake and low-quality commodities, and people place
high hopes thereon. All localities and departments shall, in the spirit of
holding high responsibility to the state and the people, reinforce the
work, take active cooperation and make joint efforts to effectively
accomplish the work of cracking down on fake and low-quality commodities and
bring about a sustained, speedy and sound development in the national
economy.

DECISION OF THE STATE COUNCIL ON CRACKING DOWN ON FRAUDS OF TAX REFUNDS FOR EXPORT AND PUNISHING ACTS VIOLATING LAW AND DISCIPLINE IN FINANCIAL AND TAX FIELDS

Category	BANKING	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1996-01-21	Effective Date	1996-01-21

Decision of the State Council on Cracking Down on Frauds of Tax Refunds for Export and Punishing Acts Violating Law and Discipline in Financial and Tax Fields

(January 21, 1996)

For recent two years, a series of policies and measures of the central
authority on strengthening and improving macro regulation have been enforced
and have achieved obvious effect, the economic order continues to take a turn
for the better. However, with the deepgoing development of the struggle of
rectifying the economic order and fighting against unlawful and criminal
activities, some quite serious problems in financial and tax fields are also
exposed. For examples, some enterprises in collusion with the fraud groups
cheat out of tax refunds for export and illegally buy foreign currency; some
financial institutions make “two accounts” to conceal the deposit or issue
loans against the provisions; some local governments without authorization
change the budgetary funds into extra-budgetary funds to escape from the
budget supervision, etc. These problems have become very serious at some
places and units. Therefore, the State Council decides to take resolute
measures to crack down on and punish frauds of tax refunds for export and
acts violating law and discipline in financial and tax fields, and carry out
strict provisions of control and supervision.

1. Arranging a special struggle to develop comprehensive inspection and to
investigate and punish a set of major and important cases

(1) The State Administration for Taxation shall jointly with the relevant
departments carry out a special struggle against the fraud activities of
taxes, and investigate and punish a set of typical cases. The departments of
tax, foreign economic relation and trade, customs, banking, foreign currency
control, public security, auditing, administration for industry and commerce
and administrative supervisory agency shall cooperate tightly, based on the
clues in hand, to organize and develop special struggles directly against
fraud of tax, fraudulent purchase of foreign currency and smuggling,
especially to investigate and punish all kinds of unlawful and criminal
activities of fraud of tax, fraudulent purchase of foreign currency and
smuggling by making false customs declaration form, false invoice and false
settlement document of exchange. Every competent department shall send
inspection group periodically to inspect in different places.

(2) The People’s Bank of China shall make an overall check-up on non-bank
financial institutions and ban the illegally established financial
institutions; it shall carry out on-the-spot audit on the capital resource and
operation of commercial banks and completely check the problems such as
operation out of account, short sale of securities, malicious overdraw of
credit card and confused control of certificate of deposit.

(3) The Ministry of Finance shall take a comprehensive inspection on the
establishment and management of extra-budgetary funds, and take a complete
check-up on the cases like transferring the budgetary revenue into
extra-budgetary funds and not bringing it into budgetary management against
the relevant provisions, or expanding the collection scope of the
extra-budgetary funds, raising the collection standards and squandering the
extra-budgetary funds.

(4) The leadership of the special struggle shall be strengthened. The
major leaders of the people’s government of province, autonomous region or
municipality directly under the central government and the competent
departments of the State Council shall take charge by themselves. All relevant
departments shall according to their duties stress the essentials and
cooperate tightly. All localities and departments shall strengthen the support
to the work of the procuratorial organ. All relevant departments and
procuratorial organs shall set up the working system of case transmission and
put an end to substituting administrative punishment for criminal penalty.

(5) All acts violating law and discipline in the above-said fields shall
be investigated and punished through developing the special struggle and
comprehensive inspection. Those who have violated law and discipline
concerning fraud, corruption, accepting a bribe, offering a bribe or
dereliction of duty shall be transmitted to the judicial department for
criminal responsibilities according to the law. When the cases of violations
of law and discipline are dealt with, the bounds of policy shall be grasped.
Those who can self-check actively and confess themselves may be punished
leniently; those who commit a crime or an offense against this Decision after
its promulgation shall be punished severely for all.

2. Strictly investigating and punishing acts violating law and discipline
according to the law and discipline

(1) Decision of the Standing Committee of the National People’s Congress
on Punishing the Crime of Falsifying, Counterfeiting and Illegal Selling of
Invoices for Value-added Tax shall be carried out strictly to investigate and
punish severely the fraud activities of tax. If any enterprise or institution
is engaged in or take part in tax fraud or tax evasion, including falsifying
the invoices for value-added tax and evading paying tax by taking the few as
the more, exaggerating the price, counterfeiting or falsely declaring the
export, or taking the more as the few or posing as donation during
importation, once these are found, the person directly responsible shall be
discharged from public employment and the relevant person in charge shall be
discharged from his post; according to the law and judicial interpretation,
all those who defraud or evade tax payment more than 10,000 yuan shall be
transmitted to judicial department for criminal responsibility according to
the law. If the person responsible and business personnel of the enterprise or
institution intentionally commit fraud of tax refunds for export for the
interest of his own unit, he shall be punished for the crime of fraud or the
crime of fraud of tax refunds for export. If an enterprise commits fraud of
tax refunds for export and the circumstances are serious, its tax refunds for
export shall be suspended and its license for foreign trade operation shall be
revoked by the department of economic relation and trade. If the personnel of
the government agency causes a loss to the state revenue more than 50,000 yuan
for his dereliction of duty, the person directly responsible shall be imposed
upon disciplinary sanction no less lenient than record of a demerit, up to
discharge from public employment; the relevant person in charge shall be
imposed upon disciplinary sanction no less lenient than record of a demerit,
up to discharge from his post; all those who take part in fraud activities of
tax or cause substantial loss to the state revenue for his dereliction of duty
which constitutes a crime shall be transmitted to judicial department for
filing of the case and shall be investigated for criminal responsibility
according to the law. If the amount involved in the tax fraud is especially
huge, the circumstances are especially serious and the state has therefore
suffered especially heavy losses, the offender shall be subject to severe and
strict punishment according to the relevant decisions by the Standing
Committee of the National People’s Congress.

(2) The Decision of the Standing Committee of the National People’s
Congress on Punishment of the Crimes of Undermining the Financial Order and
the relevant laws shall be strictly carried out to crack down on illegal acts
and crimes in the financial field. If a financial institution, for the purpose
of escaping from the control of the credit scale, fails to bring the saving
and borrowing business of its sub-company or relevant business departments
into unified accounting and report to a high body, these business shall be
audited and brought into the unified accounting and the person in charge and
the person directly responsible shall be imposed upon disciplinary sanctions
according to circumstances and extent of danger. If a financial institution
violates the Accounting Law of the People’s Republic of China to set up
another account out of the account and run the business against the
regulations, the chief person in charge shall be discharged from his post up
to discharged from the public employment; if the circumstances are serious,
heavy losses have been caused and a crime has been constituted, the chief
person in charge shall be investigated for criminal responsibility according
to the law, and the person in charge of higher authority shall be punished up
to discharge from post; if a local government instigates or obliges a
financial institution to set up another account out of the account and run the
business against the regulations, the relevant leaders of the local government
shall be investigated and punished up to discharge from post. If the
management in a financial institution is in slack, a major incident or several
incidents have happened and heavy losses have been caused, the chief person in
charge shall be discharged from his post; if the personnel of a financial
institution ignores his duty and a crime has been constituted, he shall be
transmitted to the judicial department for criminal responsibility according
to the law. If financial institutions collude with each other from both inside
and outside to be engaged in or take part in illegal acts and crimes in the
financial field, they shall be punished strictly and the relevant person in
charge shall be investigated and punished.

(3) If a designated foreign currency bank against the provisions sells
foreign currency without certificate, the person directly responsible shall be
imposed upon disciplinary sanctions: a. if the sale of foreign currency is
decided by the person handling the transaction, he shall be imposed upon
disciplinary sanctions and transferred from his post up to discharged from the
public employment; if the unit without certificate sells foreign currency
totally more than 1,000,000 US dollars, the relevant person in charge shall be
investigated and punished. b. if it is the person in charge of the unit who
approves or incites the person handling the transaction to sell foreign
currency without certificate, the person directly responsible shall be imposed
upon disciplinary sanctions and the relevant person in charge shall be
investigated and punished no less lenient than record of demerit up to
discharge from post; c. if the leader of a local government requires the bank
to sell foreign currency without certificate, the bank personnel shall be
dealt with and the relevant leader of the government shall be investigated and
punished no less lenient than record of demerit up to discharge from post.

The person in charge of a unit and the person directly responsible who are
engaged in or take part in arbitrage of foreign currency shall be dealt with
in the light of the above-said measures. If an enterprise or institution
unlawfully commits arbitrage of foreign currency totally more than 1,000,000
US dollars, the designated foreign currency bank shall stop selling foreign
currency to it and the department of foreign economic relation and trade shall
revoke its operation license for foreign trade.

If any of the above-said activities constitutes a crime, it shall be
transmitted to judicial department for criminal responsibility according to
the law.

(4) If anyone conceals the budget revenue or transforms the budgetary
funds into extra-budgetary funds, all the unlawful income shall be handed over
to the higher financial department. Besides, leaders of relevant departments
and the government at the same level shall be investigated and punished; if
the circumstances are serious, they shall be demoted up to discharge from
post; if they commit a crime for dereliction of duty, they shall be
transferred to judicial department for criminal responsibility according to
the law.

(5) Those enterprises and individuals who unlawfully carve the seals or
print the notes or certificates shall be punished strictly.

(6) As to those major cases which involve different provinces, autonomous
regions or municipalities directly under the central government, the
departments of public security and judicial affairs shall strengthen the
leadership and deal with the cases in unified coordination.

3. Strengthening the management and supervision system to stop up the
loophole of crimes

(1) Besides further improving the export tax policy, the departments of
taxation, banking, customs, foreign economic relation and trade and foreign
currency control shall, according to the relevant provisions of the State
Council, take the effective measures to set up a working system for constant
and close connection in order to strengthen the examination and management of
the receipts of tax refunds for export and prevent lawless persons from
counterfeiting receipts to commit tax fraud. The tax department shall
strengthen the management and audit of value-added tax invoices, continue to
distribute the value-added tax invoices within the limited quantity and manage
the invoice of huge denomination by making out it on the computer system. The
competent department of tax refund for export shall make the pre-examination
strictly and set up a cross audit system of computer network.

(2) The Law of the People’s Republic of China on the People’s bank shall
be carried out seriously. The people’s bank at different level shall
concentrate on bettering the financial management and supervision. The banking
industry shall be operated separately from the industry of securities, trust
and insurance and shall be managed according to the law. The non-banking
institutions shall be re-examined, re-issued of certificate and re-registered.
The state-owned commercial banks shall, according to the requirements of the
Circular of the State Council Concerning the Approval and Transmission of the
Suggestions of the Chinese People’s Bank on Disjointing the Chinese Industrial
and Commercial Bank and Three Other Banks with Subsidiary Trust and Investment
Companies (Document Guofa No.(1995)11 of the State Council), seriously better
the disjointing work with subsidiary trust and investment companies, and make
a comprehensive audit on its subsidiary department of trust, securities,
international business, credit card and real estate loans in order to prevent
operation out of the account. The computer monitoring system of all kinds of
business of financial institutions shall be set up in the line of the People’s
Bank of China. All financial institutions shall strengthen the inspection and
audit on their branches, set up the system of personnel exchange, the system
of regular audit within the tenure and the system of audit when leaving office.

The People’s Bank of China shall jointly with the Ministry of Finance and
the Securities Supervisory and Regulatory Commission of China formulate the
regulatory provisions for securities re-purchase as soon as possible to take
strict standardized management on the re-purchase business of securities. Any
inter-bank deposit in name of re-purchase of securities against the
regulations shall be banned. Effective measures shall be taken to completely
clear up the activities against regulations in the securities re-purchase.

(3) The competent department of foreign currency control shall, according
to the requirements of the Circular of the State Council on Further Reforming
the Foreign Currency Control System (Document Guofa No.(1993) 89 of the State
Council), further strengthen the supervision, inspection and management on the
designated banks of foreign currency. All designated banks of foreign currency
shall strictly carry out the provisions concerning settlement and sale of
foreign currency and account opening or saving and borrowing. The competent
department of foreign currency control shall set up constant and close
connection with the designated banks of foreign currency, customs and taxation
department to prohibit arbitrage of foreign currency.

(4) The Budget Law of the People’s Republic of China and the Audit Law of
the People’s Republic of China shall be carried out strictly. The management
of financial budgetary funds and extra-budgetary funds shall be seriously
strengthened according to the relevant provisions of the State Council.
Besides that the internal supervision and management of the finance department
shall be strengthened, the external supervision and restriction role of the
department of audit and supervision shall be played. In particular, the audit
supervision on the lower finance department by the higher finance department
shall be strengthened. The management on the financial turnover capital shall
be strengthened strictly according to the principle of controlling scale,
limiting investment direction, completing the system and strengthening the
supervision.

(5) The department of public security and the department of administration
for industry and commerce shall rectify the special businesses such as seal
carving and notes and certificates printing and shall hold strict control
thereon.

(6) The personnel of the departments of finance, banking, taxation,
foreign economic relation and trade, customs, foreign currency control and
administration for industry and commerce shall pay great attention to
ideological education to enhance their quality, heighten the sense of legality
and increasing the awareness of precaution. The unfit personnel shall be
promptly discharged from the important post.

(7) The people’s government of province, autonomous region and
municipality directly under the central government shall take the forceful
organizational measures to carry out this Decision. The relevant department
under the State Council shall, according to this Decision, formulate the
detailed enforcement provisions respectively as soon as possible.

PEOPLE’S AIR DEFENCE

Category	NATIONAL DEFENCE	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1996-10-29	Effective Date	1997-01-01

Law of the People’s Republic of China on People’s Air Defence

Contents
Chapter I  General Provisions
Chapter II  Main Targets of Protection
Chapter III  People’s Air Defence Works
Chapter IV  Communication and Alarm systems
Chapter V  Evacuation
Chapter VI  Mass Air Defence Organizations
Chapter VII  People’s Air Defence Education
Chapter VIII  Legal Responsibility
Chapter IX  Supplementary Provisions

(Adopted at the 22nd Meeting of the Standing Committee of the Eighth

National People’s Congress on October 29, 1996, and promulgated by Order No.78
of the President of the People’s Republic of China on October 29, 1996)
Contents

Chapter I General Provisions

Chapter II Main Targets of Protection

Chapter III People’s Air Defence Works

Chapter IV Communication and Alarm Systems

Chapter V Evacuation

Chapter VI Mass Air Defence Organizations

Chapter VII People’s Air Defence Education

Chapter VIII Legal Responsibility

Chapter IX Supplementary Provisions
Chapter I General Provisions

Article 1 This Law is formulated with a view to effectively organizing
people’s air defence, ensuring the safety of the lives and property of the
people and safeguarding the smooth progress of the socialist modernization.

Article 2 People’s air defence is a part of national defence. The state,
taking into account the need of national defence, shall mobilize and organize
masses to take precautionary measures to prevent and reduce jeopardy caused by
air-raid.

People’s air defence shall adopt a guiding principle of preparation in
view of the future, concentration on construction of major works, combination
of both needs in peacetime and in wartime, and coordination with economic
development and urban construction.

Article 3 People’s governments at or above the county level shall
incorporate people’s air defence construction into plans for national economy
and social development.

Article 4 Funds needed for people’s air defence shall be borne by both
the state and society.

The fund borne by the central authorities shall be covered in the central
budget while the fund carried by local people’s governments at or above the
county level shall be included in local budgets of all levels.

Units concerned should bear expenses for people’s air defence as
stipulated by the state.

Article 5 The state shall, in accordance with relevant provisions, offer
preferential treatments to construction of people’s air defence.

The state shall encourage enterprises, institutions, social organizations
and individuals to make investment in works of people’s air defence in various
ways. The works shall be put to use and management by the investors during
peacetime and earnings be turned over to the investors.

Article 6 The State Council and the Central Military Commission shall
direct the work concerning people’s air defence of the whole nation.

The greater military areas shall take charge of people’s air defence
within their jurisdiction as authorized by the State Council and the Central
Military Commission.

Local people’s governments at or above the county level and military
organs of the same level shall direct the work concerning people’s air defence
in their respective administrative areas.

Article 7 The state administrative department in charge of people’s air
defence shall take charge of the work concerning people’s air defence of the
whole country.

The departments in charge of people’s air defence in greater military
areas shall take charge of the work concerning people’s air defence in the
areas.

Administrative departments in charge of people’s air defence under local
people’s governments at or above the county level shall take charge of the
work concerning people’s air defence in the administrative areas.

Departments in central organs of the state in charge of people’s air
defence shall take charge of the work concerning people’s air defence in the
organs of the state.

The establishment, responsibility and duty of the department in charge of
people’s air defence shall be prescribed by the State Council and the Central
Military Commission.

Departments of people’s governments at or above the county level in charge
of planning, designing and construction, etc., shall take charge of the work
concerning people’s air defence within their respective jurisdictions and
responsibilities.

Article 8 All organizations and individuals shall have the right to
obtain protection provided by people’s air defence and must perform the
obligations concerning people’s air defence according to law.

Article 9 The state shall protect facilities for people’s air defence
from damage. Appropriation or damaging of facilities of people’s air defence
by any organization or individual is prohibited.

Article 10 Units and individuals who have made remarkable merits in
people’s air defence shall be awarded by people’s governments at or above the
county level and military organs.
Chapter II Main Targets of Protection

Article 11 Cities are the main targets of people’s air defence. The state
shall practise classified protection over cities.

Classes and standards of air defence over cities are determined by the
State Council and Central Military Commission.

Article 12 People’s governments of cities should make programmes for
prevention against air-raid and plans for implementation and may organize
drills when necessary.

Article 13 People’s governments of cities shall make programmes for
people’s air defence works which shall be incorporated into comprehensive
plans for the cities.

Article 14 The construction of underground traffic avenues and other
underground works shall be in line with the need of the people’s air defence.

Article 15 Facilities for storing grains, medicines, fuel and other
provisions necessary during wartime shall be built underground or in other
covert places.

Article 16 For important economic targets, departments concerned shall
adopt effective protective measures and make contingency schemes to deal with
an emergency and rush repair.

The important economic targets referred to in the preceding paragraph
include important industrial enterprises and mines, scientific research bases,
traffic pivots, communication pivots, bridges, reservoirs, warehouses and
electric power stations.

Article 17 The administrative department in charge of people’s air
defence shall, according to provisions, conduct inspections of people’s air
defence works protecting cities and important economic targets. The units
under inspection shall truthfully provide information and necessary data.
Chapter III People’s Air Defence Works

Article 18 People’s air defence works include separate underground
constructions providing shelters for personnel and provisions, headquarters
and medical and first aid services during wartime, as well as underground
cellars which are integrated with on-ground constructions and can be used as
shelters against air-raid during wartime.

Article 19 The state shall practise classified guidance toward the
construction of people’s air defence works in the light of varied requirements
of protection.

The state shall, according to the need of national defence, make plans for
the construction of people’s air defence works by taking into account urban
construction and economic development.

Article 20 The construction of people’s air defence works shall first
ensure the effective utilization of works during wartime, and must be
beneficial to economic construction, people’s productive activities and lives,
and the development and use of works during peacetime.

Article 21 The construction of people’s air defence works for
headquarters, public shelters for personnel, avenues for evacuation shall be
organized by the administrative departments in charge of people’s air defence.
The construction of works for medical rescue, and for provisions storage shall
be organized by other departments concerned.

Other relevant units shall build shelters for their personnel and
provisions.

Article 22 Newly built civil constructions in cities shall, according to
provisions of the state, include underground cellars which can be used as
shelters against air-raid during wartime.

Article 23 The design, construction and quality of people’s air defence
works shall comply with the protection standards and quality standards as
stipulated by the state.

Types of special equipment for people’s air defence works and their
production shall comply with the standards as stipulated by the state.

Article 24 Departments concerned of people’s governments at or above the
county level shall, according to law, ensure the use of land for building
people’s air defence works, and shall provide necessity for building people’s
air defence installations that link with roads and systems of electricity,
heat, water, drainage, communication, etc. in cities.

Article 25 The administrative departments in charge of people’s air
defence shall supervise and inspect the maintenance and management of the air
defence works.

The administrative departments in charge of people’s air defence shall be
responsible for the maintenance and management of public air defence works.

Units concerned shall, according to the state provisions, be responsible
for the maintenance and management of air defence works that have been built
and used so as to keep them in good condition for use.

Article 26 The state shall encourage the use of people’s air defence
works in peacetime to serve the needs of economic construction and people’s
lives but the use of the works must not affect its functions in air defence.

Article 27 No organization or individual may be allowed to perform any
operation which could impair the function or reduce the protective capacity of
people’s air defence works, or to release waste water and exhaust waste gas
and dump waste into the works, or to produce, store explosive, highly toxic,
combustible, radioactive or erosive materials or articles inside the works.

Article 28 No organization or individual may be allowed to dismantle
people’s air defence works described in Article 21. Where dismantling is
necessary, approval must be obtained from the administrative departments in
charge of people’s air defence, and the unit that dismantles the works shall
take the responsibility to build a new one in place of them or make
compensation for them.
Chapter IV Communication and Alarm systems

Article 29 The state shall guarantee smooth operations of communication
and alarm systems for people’s air defence in order to rapidly and precisely
send out and transmit alarm signals against air-raid and to effectively
organize and conduct people’s air defence.

Article 30 The state administrative department in charge of people’s air
defence shall take the responsibility to make plans for the construction of
nationwide communication and alarm systems for people’s air defence, and to
organize the construction and management of nationwide communication and alarm
networks for people’s air defence.

Administrative departments in charge of people’s air defence under local
people’s governments at or above the county level shall take the
responsibility to make plans for building communication and alarm systems for
people’s air defence within their administrative areas and organize the
construction and management of communication and alarm networks for people’s
air defence in the areas.

Article 31 Departments of telecommunications, departments of
communications in the army and the administrative departments in charge of
people’s air defence shall guarantee the implementation of communication for
people’s air defence according to the mission described by the state and the
construction plans for communication and alarm systems in people’s air defence.

Article 32 Departments of telecommunications, departments of
communication in the army and administrative institutions in charge of radio
shall guarantee the circuits and frequencies needed by the administrative
departments in charge of people’s air defence for the construction of
communication and alarm systems in people’s air defence. Units and individuals
concerned shall provide convenience for the installation of communication and
alarm systems in people’s air defence and may not hamper their installation.

No other organization or individual may use or mix with the special
frequencies and air-raid alarm signals intended by the state for communication
in people’s air defence.

Article 33 Systems of communication, broadcast and television must first
send out and transmit air-raid alarm signals in wartime.

Article 34 Departments concerned in the army shall give air information
to the administrative departments in charge of people’s air defence and help
train professionals.

Article 35 Facilities of communication and alarm systems in people’s air
defence shall be kept in good condition for use.

Units concerned shall take charge of the maintenance and management of
those facilities of people’s air defence alarm systems which are installed in
such units and may not dismantle them without approval.

Local people’s governments at or above the county level may organize
trials of sending out air raid alarms where necessary and shall, if they do
so, give out announcements five days before the trials.

Article 36 Facilities of communication and alarm systems in people’s air
defence shall be used for rescue or relief operations during peacetime.
Chapter V Evacuation

Article 37 Evacuation in people’s air defence shall be organized by
people’s governments at or above the county level in a unified manner.

Evacuation in people’s air defence shall be arranged according to orders
issued by the state. No organization may act on its own accord.

Article 38 People’s governments at or above the county level shall
organize departments concerned to make plans for evacuation in cities in
people’s air defence.

The region set for evacuation within an administrative area shall be
determined by the people’s government in that region; if the region spans
beyond the administrative area, the people’s government at a higher level
shall make the decision.

Article 39 People’s governments at or above the county level shall
organize departments and units concerned to make preparation for the placement
of the people evacuated from cities and for storage, transport and supply of
provisions.

Article 40 If evacuation of rural population is necessary, local people’s
governments shall arrange for the placement at the area as close to the
original residence as possible.
Chapter VI Mass Air Defence Organizations

Article 41 Local people’s governments at or above the county level shall
organize departments concerned to establish mass air defence organizations in
the light of the need of people’s air defence.

Mass air defence organizations shall perform such duties during wartime as
salvage and rush-repair, medical services and rescue operations, fire control
and fire extinguishing, epidemic prevention and sterilization, removal of
poison and pollutants, safeguarding communication, rescuing people and
rush-conveying materials and guarding public security, and shall help
flood-fighting and quake-preventing departments during peacetime by doing
salvage in calamities.

Article 42 Mass air defence organizations shall be established by the
following departments:

(1) Departments of urban construction, public utilities and electricity
shall organize rush brigades;

(2) Departments of health and medicine shall organize ambulance corps;

(3) Departments of public security shall organize fire-fighting brigades
and security contingents;

(4) Departments of health, chemical industry and environment protection
shall organize anti-chemical warfare corps and epidemic prevention corps;

(5) Departments of telecommunications shall organize communication teams;
and

(6) Departments of transport shall organize transport troops.

The Red Cross organizations shall take up rescue operations according to
law.

Article 43 Outfits, apparatus and funds needed for mass air defence
organizations shall be provided by the administrative departments in charge of
people’s air defence and by sponsoring departments.

Article 44 Mass air defence organizations shall receive professional
training in accordance with training plans and programmes set by the
administrative departments in charge of people’s air defence.
Chapter VII People’s Air Defence Education

Article 45 The state shall conduct people’s air defence education to
enhance the sense of national defence among the people and to enable masses
to learn basic knowledge and skills for people’s air defence.

Article 46 The state administrative department in charge of people’s air
defence shall take charge of making plans and of setting contents for people’s
air defence education.

People’s air defence education for students in schools and colleges shall
be organized by education departments and departments in charge of people’s
air defence at all levels.

People’s air defence education for personnel in organs of state, social
organizations, enterprises and institutions shall be organized by the units
to which the personnel belongs. For other personnel, the grass-roots people’s
governments in cities, towns and townships shall organize the people’s air
defence education.

Article 47 Departments of journalism, publication, broadcast, the movies,
television and culture shall help conduct people’s air defence education.
Chapter VIII Legal Responsibility

Article 48 For, in violation of relevant state provisions, civil
construction newly built in cities without underground cellars for use as
shelters against air-raid in wartime, the administrative department in charge
of people’s air defence under the people’s government at or above the county
level shall give a warning to the violator and order him to build that within
a time limit and may concurrently impose a fine below 100,000 yuan.

Article 49 For any of the following acts, the administrative departments
in charge of people’s air defence under the people’s government at or above
the county level shall give a warning to the violator and order him to correct
his illicit behavior within a time limit, and may concurrently impose a fine
below 5,000 yuan if the violator is a person or a fine from 10,000 yuan to
50,000 yuan if the violator is a unit. If the act has caused a loss, the
violator shall make compensation according to law.

(1) seizing people’s air defence works;

(2) failing to comply with protection standards and quality standards set
by the state when building people’s air defence works;

(3) in violation of relevant state provisions, making changes on main
structure of people’s air defence works, dismantling equipment and facilities
from the works or, by other means, impairing its function or reducing its
protective capacity;

(4) refusing to rebuild people’s air defence works after dismantling it;

(5) taking up frequencies exclusive for communication in people’s air
defence, using the same sound signals as air-raid alarms, or, without
approval, dismantling equipment and facilities for communication and alarm
systems used in people’s air defence;

(6) hampering installation of facilities for communication and alarm
systems used in people’s air defence and refusing to make corrections; or

(7) discharging waste water and exhausting waste gas or dumping waste into
people’s air defence works.

Article 50 Any person who, in violation of the provisions of this Law,
deliberately makes damage to facilities for people’s air defence works, or
produces and stores explosive, highly toxic, combustible, radioactive and
other dangerous materials and articles in the works, if his act is not serious
enough for a crime yet, shall be punished according to the relevant provisions
of the Regulations on Administrative Penalties for Public Security. Those who
commit a crime shall be investigated for criminal responsibility.

Article 51 Personnel in the administrative departments in charge of
people’s air defence who neglect their duties, abuse their power, engage in
malpractice for personal gains, or commit other offences and dereliction
seriously enough to constitute a crime, shall be investigated for criminal
responsibility. Those whose acts are not serious enough to constitute a crime,
shall be given disciplinary sanctions.
Chapter IX Supplementary Provisions

Article 52 Standing committees of people’s congresses of provinces,
autonomous regions and municipalities under the central government may
formulate detailed rules for implementation in accordance with this Law.

Article 53 This Law shall come into force on January 1, 1997.

CIRCULAR ON IMPLEMENTING JOINT ANNUAL INSPECTION FOR ENTERPRISES WITH FOREIGN INVESTMENT

20011126

The Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce, the State Economic and
Trade Commission, the Ministry of Finance, the State Administration of Foreign Exchange, the State Administration of Taxation, the
General Administration of Customs

Circular on Implementing Joint Annual Inspection for Enterprises with Foreign Investment

[1996] No. 773

December 26,1996

In recent years, relevant departments of the State Council, according to law, has undertaken the work of annual inspection, annual
audit or examination of and exchange for renewal of certificates for enterprises with foreign investment, which has played a positive
role in standardizing behaviors of enterprises with foreign investment, strengthening administration and urging enterprises to conduct
business operations according to law. At the same time, various departments carrying out their work separately also adds burden to
the enterprises to a certain extent. In order to further improve the investment environment and lessen the burden on enterprises,
under the coordination of the National Leading Group for Foreign Investment, in accordance with relevant provisions of the State
on administration of enterprises with foreign investment, the Ministry of Foreign Trade and Economic Cooperation, the State Administration
for Industry and Commerce, the State Economic and Trade Commission, the Ministry of Finance, the State Administration of Foreign
Exchange, the State Administration of Taxation and the General Administration of Customs (hereinafter referred to as various departments
conducting a joint annual inspection)have decided that as of the year 1997, a joint annual inspection of the state of affairs concerning
the contribution, production and business operations, financial affairs, foreign exchange, export and import of enterprises with
foreign investment (including enterprises with investment from Taiwan, Hong Kong and Macao compatriots and overseas Chinese, hereinafter
referred to as enterprises) shall be conducted. Relevant matters are hereby notified as follows:

Various departments conducting an annual inspection shall draw up an annual inspection report together. Annual inspection reports
shall be uniformly printed and distributed by administrative departments for industry and commerce.

An enterprise shall, within a prescribed time limit, obtain an annual inspection report from an administrative department for industry
and commerce, fill it out according to requirements, and submit the completed annual inspection report together with relevant materials
the submission of which is required by the Trial Plan on Implementing Joint Annual Inspection for Enterprises with Foreign Investment
(hereinafter referred to as Trial Plan) respectively to the various departments conducting a joint annual inspection on time.

Where there are conditions conducive to handling official business together, an annual inspection to handle official business together
shall be organized depending on the specific circumstances so as to render convenience to enterprises.

Various departments conducting a joint annual inspection shall, after receiving an annual report and other materials submitted by
an enterprise, check on and examine them respectively, in accordance with relevant provisions put forward proposals dealing with
the enterprise not up to the requirements upon inspection, and timely notify other departments conducting a joint annual inspection.

In the course of an annual inspection, various departments conducting a joint annual inspection shall handle affairs strictly in accordance
with law, apart from the contents of a joint annual inspection report and the materials the submission of which is required by the
Trial Plan, they shall not arbitrarily add other contents subject to examination, raise or lower the examination standard. Apart
from that the administrative department for industry and commerce collects fees according to the standard as provided by the original
provisions on annual inspection, no new fee shall be added for a joint annual inspection.

Various departments conducting a joint annual inspection shall strengthen supervision and administration of intermediary institutions
and enterprises to ensure the accuracy of documents and materials for an annual inspection. Information processing and management
shall be strengthened to raise the standard of the sharing of information step by step.

After a joint annual inspection is conducted, various departments conducting a joint annual inspection shall not, within their respective
industries, additionally organize an annual inspection of enterprises (excluding the work of regular inspection conducted by relevant
departments in accordance with relevant regulations).

Customs will participate in a joint annual inspection as of the year 1998, and before that, it shall conduct an annual audit of enterprises
according to the current provisions on annual audit.

The Office of the National Leading Group for Foreign Investment shall be responsible for the coordination work for implementing a
joint annual inspection.

Attachment 1:Trail Plan for Implementing Joint Annual Inspection for Enterprises with Foreign Investment

Preparation for and publicity of annual inspection After the circular of a joint annual inspection is promulgated, the State and local
relevant departments shall promptly set about work on preparation for the joint annual inspection. Various departments conducting
a joint annual inspection shall strengthen coordination, cooperate with each other, timely exchange information, well organize personnel
and provide a high level service in making publicity, such as making a public announcement.

II.

Time and procedures for the annual inspection The working time for a joint annual inspection is from January 1 to April 30 each year.
The specific procedures are as follows:

Printing and distribution of annual inspection reports The format of annual inspection reports shall be designed by the State Administration
for Industry and Commerce and the printing and distribution shall be conducted by its authorized registration agency. An enterprise
itself may, as of January 1, 1997, obtain an annual inspection report from the local administrative department for industry and commerce
in the place where it is registered.

Filling in and submission of an annual inspection report and other documents An enterprise shall conscientiously, truthfully and completely
fill in the annual inspection report. Data entered must be consistent with the financial report audited by an accounting firm which
is chosen and authorized by the enterprise on its own. An enterprise must submit the annual inspection report and other documents
which shall be submitted respectively to the various departments conducting the joint annual inspection for applying for an annual
inspection. An enterprise shall submit the following documents respectively to the various departments conducting the joint annual
inspection:

Foreign trade and economic cooperation department

(1)

a duplicate of the annual inspection report;

(2)

a photocopied duplicate of the approval certificate; and

(3)

a photocopied duplicate of the business license.

Administrative department for industry and commerce

(1)

the original of the annual inspection report;

(2)

the annual balance sheet and statements of profits and losses audited and verified by an accounting firm;

(3)

a duplicate of the business license; and

(4)

a capital verification report for an enterprise which shall make contributions in the current year.

Economic and trade department

(1)

a duplicate of the annual inspection report; and

(2)

the annual balance sheet and statements of profits and losses audited and verified by an accounting firm.

Finance department

(1)

a duplicate of the annual inspection report;

(2)

a duplicate of the financial registration certificate;

(3)

the enterprise’s accounting statements for the previous year and the auditing report issued by a certified public accountant; and

(4)

the capital verification report.

State taxation bureau and local taxation bureau(one set for each)

(1)

a duplicate of the annual inspection report;

(2)

a duplicate of the taxation registration certificate;

(3)

a taxation registration form; and

(4)

a photocopied duplicate of the business license;

Administrative department of foreign exchange

(1)

a duplicate of the annual inspection report;

(2)

photocopies of the annual balance sheet and statements of profits and losses audited and verified by an accounting firm;

(3)

a capital verification report; and

(4)

the original of the foreign debt registration certificate and the foreign exchange (transferred) loans registration certificate for
an enterprise which has foreign debts.

Customs To be decided.

Order of submission of documents:

An enterprise shall submit 7 copies of the annual inspection report, together with the documents submitted to various departments,
simultaneously to the various departments conducting the joint annual inspection.

Examination and verification of the annual inspection

Various departments conducting the joint annual inspection shall, after receiving the documents for annual inspection, promptly examine
and verify the documents submitted by an enterprise for annual inspection according to relevant provisions. If the various departments
conducting the joint annual inspection find that an enterprise falls into the circumstances under which it shall not pass the annual
inspection, they shall notify the administrative department for industry and commerce within 10 days as receipt of the documents
for annual inspection and the administrative department for industry and commerce shall retain 10 days to make the coordination.
The administrative department for industry and commerce shall circulate a list of enterprises which have not passed the annual inspection
to other departments jointly participating in the annual inspection on a weekly basis.

Being qualified upon examination by the administrative department for industry and commerce which has not received the opinions which
make the enterprise fail in the annual inspection from relevant departments within 10 days, the enterprise shall be deemed as having
passed the annual inspection, and a label stating that the annual inspection has been passed shall be attached to the enterprise’s
business license.

All examination and verification work in relation to annual inspections shall be accomplished by May 31.

With respect to the general problems which are reflected in the enterprises’ business operations, the economic and trade departments(economic
commissions or planning and economic commissions) shall, together with relevant departments, put forward policies and measures to
strengthen and improve management.

III.

Standards for annual inspection and penalty measures

In the joint annual inspection, an enterprise which is found to have seriously violated laws and regulations, have no business premises,
no actual contributions or no business operations shall be determined as an enterprise unqualified in the annual inspection and having
failed in the annual inspection, and other enterprises may all pass the annual inspection. The administrative department for industry
and commerce shall notify the enterprises unqualified in the annual inspection to make amends and rectification within a prescribed
time period, and those which have not made amends and rectification shall be punished according to law, where the circumstances are
serious, the foreign trade and economic cooperation department shall revoke their approval certificates according to law, and the
administrative department for industry and commerce shall cancel or suspend their business licenses according to law.

An enterprise which, in violation of these Provisions, does not apply for annual inspection shall be deemed as an enterprise unqualified
in the annual inspection.

Various departments shall focus inspection and administration on the enterprises to whose business licenses a label of annual inspection
is not attached. The business license which shall be attached but not attached with a label of annual inspection shall not be deemed
as evidential documents for applying for undergoing relevant procedures.

The administrative department for industry and commerce shall impose a fine on the enterprise which exceeds the time period for participating
in annual inspection.

With respect to an enterprise which, in the annual inspection, is found to have committed other acts in violation of regulations,
the various departments conducting the joint annual inspection shall still separately or jointly take penalty measures in accordance
with the department rules after the enterprise has passed the annual inspection.

IV.

Information processing of materials for annual inspection

The Ministry of Foreign Trade and Economic Cooperation shall be responsible for formulating the applied software for annual inspection.
The departments of foreign trade and economic cooperation shall be responsible for entering and compiling the joint annual inspection
report. After the compilation work is completed, the materials of floppy disks shall be distributed and sent to the various departments
conducting the joint annual inspection.

The various departments conducting the joint annual inspection shall enter the contents about annual inspection information according
to need.

Verification of the annual inspection

Upon completion of an annual inspection, the various departments conducting the joint annual inspection may conduct a random inspection
of enterprises and intermediary institutions depending on the circumstances. If an enterprise is found to have committed such acts
as making false statements or deliberate concealment, it shall be penalized according to law; if an intermediary institution such
as an accounting firm is found to have practiced frauds or supplied false auditing materials, a report shall be timely made to the
finance department or relevant administrative department, the finance department or relevant administrative department shall, according
to law, impose penalties even up to canceling the qualification as a certified public accountant or other qualifications, and the
various relevant departments shall no longer accept the materials audited and verified by him.

VI.

Implementation of this Plan

Upon implementation of this Plan as of January 1, 1997, various localities shall organize and arrange joint annual inspections as
required by this Plan.

Attachment 2:Enterprises with Foreign Investment and Enterprises with Investment from Taiwan, Hong Kong and Macao compatriots and overseas Chinese
Joint Annual Inspection Report

(Year)

Name of Enterprise( in Chinese):

Enterprise Code: _____________________

Overseas Investor:_____________________

Country(Region): _____________________

Type of Enterprise: _____________________

Registration Agency:_____________________

Date of completion:_____________________

Produced by the State Administration for Industry and Commerce Instructions on How to Fill in the Form

This report is to be filled in by Chinese-Foreign equity joint ventures, Chinese-Foreign contractual Joint ventures, wholly foreign-invested
enterprises, stock limited companies with foreign investment and enterprise with investment from Taiwan, Hong Kong and Macao compatriots
and overseas Chinese which have been established upon approval and registered.

An enterprise must truthfully fill in this report and submit it respectively to the departments conducting the joint annual inspection
on time. The departments conducting the joint annual inspection are: the departments of foreign trade and economic cooperation, the
departments of industry and commerce, the economic and trade departments, the finance departments, the departments of foreign exchange,
the taxation departments and Customs.

Relevant columns in the report shall be filled in based on the actual situation of the enterprise at the time of annual inspection.
If the relevant registered items have been modified, an explanation of the modified items shall be attached when the report is submitted
to the registration agency in the department of industry and commerce.

Where the form requires to be filled out in units of US$10,000 and if there is a difference from the original currency, it shall,
without exception, be converted into US dollars in units of 10,000 according to the State exchange rates when the actual contribution
is made or as stipulated in the contract.

This report must be typed or filled out in ink, the handwriting shall be clear and neat, and when submitted to the various departments
conducting a joint annual inspection, the enterprise’s official stamp shall be affixed at the place of the date of completion on
the cover page.

If the matter referred to in relevant columns does not exist, “no” may be filled in this column, and if there is much more content
to be filled in, additional pages may be attached.Form of enterprise’s basic information.

The Ministry of Foreign Trade and Economic Cooperation, the State Administration for Industry and Commerce, the State
Economic and Trade Commission, the Ministry of Finance, the State Administration of Foreign Exchange, the State Administration of
Taxation, the General Administration of Customs
1996-12-26

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND CONTROL OF ENVIRONMENTAL NOISE POLLUTION

The Standing Committee of the National People’s Congress

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

No.77

The Law of the People’s Republic of China on the Prevention and Control of Environmental Noise Pollution which has been adopted at
the 22nd Meeting of the Standing Committee of the Eighth National People’s Congress on October 29, 1996 is promulgated now, and shall
enter into force as of March 1, 1997.

President of the People’s Republic of China: Jiang Zemin

October 29, 1996

Law of the People’s Republic of China on the Prevention and Control of Environmental Noise Pollution ContentsChapter I General Provisions

Chapter II Supervision and Management of the Prevention and Control of Environmental Noise Pollution

Chapter III Prevention and Control of Industrial Noise

Chapter IV Prevention and Control of Noise in Construction

Chapter V Prevention and Control of Traffic and Transportation Noise

Chapter VI Prevention and Control of Noise in Social Life

Chapter VII Legal Responsibility

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is enacted with a view to preventing and controlling environmental noise pollution, protecting and improving the living environment,
safeguarding human health and promoting economic and social development.

Article 2

“Environmental noise” mentioned in this Law refers to the sound produced in industrial production, construction, traffic and transportation
and social life so as to disturb the living environment in the neighbourhood.

“Environmental noise pollution” mentioned in this Law refers to an situation in which the noise is produced in excess of the standard
set by the state on the discharge of environmental noise so as to disturb others’ normal lives, work or study.

Article 3

This Law applies to the prevention and control of environmental noise pollution within the territory of the People’s Republic of China.

This law is not applicable to the prevention and control of noise hazards suffered by persons who perform their duty in production
or business operations.

Article 4

The State Council and local people’s governments at all levels shall incorporate the prevention and control of environmental noise
pollution into environmental protection plans, and take economic and technical policies and measures beneficial to the protection
of sound environment.

Article 5

Local people’s governments at all levels, when making plans for construction in cities, towns and villages, shall take into full account
the impact of noise produced in construction projects and regional development and renovation on the neighbouring living environment,
and shall make overall planning and rational arrangement for functional areas and distribution of constructions so as to prevent
or diminish environmental noise pollution.

Article 6

The environmental protection department under the State council shall conduct unified supervision and management over the prevention
and control of environmental noise pollution in the whole country.

Environmental protection departments of local people’s governments at or above the county level shall conduct unified supervision
and management over the prevention and control of environmental noise pollution within their respective administrative divisions.

Departments at all levels of public security, traffic and transportation, railroad, civil aviation and harbour superintendency agencies
shall, in accordance with their respective responsibilities, conduct supervision and management of the prevention and control of
environmental noise pollution caused by traffic and transportation and social life.

Article 7

All units and individuals shall have the obligation to protect the sound environment and have the right to report on or file charges
against any unit or individual that causes environmental noise pollution.

Article 8

The state encourages and supports scientific research and technological development for the prevention and control of environmental
noise pollution, promotes advanced prevention and control techniques, and popularize scientific knowledge of the prevention and control
of environmental noise pollution.

Article 9

Units or individuals that have made marked achievements in the prevention and control of environmental noise pollution shall be rewarded
by the people’s governments.

Chapter II Supervision and Management of the Prevention and Control of Environmental Noise Pollution

Article 10

The environmental protection department under the State Council shall establish the national standards for sound environment quality
respectively for various functional areas.

Local people’s governments at or above the county level shall, in accordance with the national standards for sound environment quality,
designate areas within their administrative divisions for the implementation of various standards for sound environment quality and
conduct management accordingly.

Article 11

The environmental protection department under the State Council shall, in accordance with the national standards for sound environment
quality and the country’s economic and technological conditions, establish the national standards for the discharge of environmental
noise.

Article 12

When determining the layouts for urban construction, city planning departments shall, in accordance with the national standards for
sound environment quality and rules of sound insulation for civil buildings, set rational distances between buildings and main traffic
lines for preventing noises and propose corresponding planning and design requirements.

Article 13

New construction projects, extensions or reconstruction projects shall conform to the state provisions concerning environmental protection
for such projects.

For any construction project which is likely to produce environmental noise, the construction unit shall propose an environmental
impact statement, with prevention and control measures provided therein, and shall, according to the procedure specified by the state,
submit the same to the environmental protection department for examination and approval.

The environmental impact statement shall include views of units and residents in the place where the construction project is to be
located.

Article 14

Facilities for the prevention and control of environmental noise at a construction project shall be designed, built and put into operation
simultaneously with the principal part of the project.

Before a construction project is put into operation or use, its facilities for the prevention and control of environmental noise shall
be inspected by the environmental protection department which examined and approved the environmental impact statement. If the facilities
do not conform to the requirements specified by the state, the said project shall not be put into operation or use.

Article 15

Enterprises and institutions that produce environmental noise pollution shall maintain the normal operation of their facilities for
the prevention and control of environmental noise pollution. Dismantlement or leaving idle of those facilities shall be approved
in advance by the environmental protection department of local people’s governments at or above the county level.

Article 16

Units producing environmental noise pollution shall take measures to eliminate and control the pollution and shall pay a fee for excessive
discharge according to the state provisions.

The fee thus levied shall be used for the prevention and control of pollution and shall not be embezzled for other uses.

Article 17

Enterprises and institutions that produce serious environmental noise pollution in areas where noise-sensitive buildings concentrate
shall be ordered to eliminate and control the pollution within a time limit.

Those units subject to such an order shall accomplish the task as scheduled. The determination of a time limit for elimination and
control of pollution shall be made by people’s governments at or above the county level within the jurisdiction set by the State
Council.

For small-sized enterprises and institutions, the determination of a time limit for elimination and control of pollution shall be
made by environmental protection departments authorized by people’s governments at or above the county level within the jurisdiction
set by the State Council.

Article 18

The state shall adopt a system of eliminating backward equipment that produces serious environmental noise pollution.

The comprehensive economic administrative department under the State Council shall, in consultation with other relevant departments
under the State council, publish a catalogue of backward equipment which produces serious environmental noise pollution and thus
the production, sale and importation of which shall be prohibited within a time limit.

Producers, sellers and importers of backward equipment listed in such a catalogue as described in the preceding paragraph shall respectively
stop production, sale and importation of them within a time limit set by the comprehensive economic department under the State Council
in consultation with other departments concerned.

Article 19

In the cases where the discharge of fortuitous strong noise is really necessary in the urban districts due to productive activity,
an application shall be filed with the local public security organ and the noise may be discharged with an approval. The local public
security organ shall publicly announce the discharge.

Article 20

The environmental protection department under the State Council shall establish a monitoring system for environmental noise, work
out monitoring rules and, together with other departments concerned, organize a monitoring network.

Monitoring organs of environmental noise shall report the monitoring results of environmental noise as required by the environmental
protection department under the State Council.

Article 21

The environmental protection departments and other supervisory and management departments or organs for the prevention and control
of environmental noise of local people’s governments at or above the county level shall, according to their respective responsibilities,
have the right to conduct on-site inspections of units under their jurisdiction that discharge environmental noise. The units being
inspected must truthfully report the situation and provide the necessary information. The inspecting departments or organs shall
keep confidential the technological and business secrets of the units inspected.

The inspectors shall show their certificates when conducting on-site inspections.

Chapter III Prevention and Control of Industrial Noise

Article 22

“Industrial noise” mentioned in this Law refers to the sound produced in the use of fixed equipment in industrial productive activities
so as to disturb the living environment in the neighbourhood.

Article 23

The discharge of industrial noise to the neighbouring living environment in the urban districts shall conform to the boundary environmental
noise discharge standards set by the state for industrial enterprises.

Article 24

Industrial enterprises that produce environmental noise pollution by using fixed equipment in industrial production must, pursuant
to the provisions of the environmental protection department under the State Council, report to the environmental protection departments
of local people’s governments at or above the county level the types and numbers of their existing equipment producing environmental
noise pollution, the ranges of noise produced by the equipment under normal operation conditions, and the situation of facilities
for the prevention and control of environmental noise pollution, and also provide technical data concerning the prevention and control
of environmental noise pollution.

Enterprises shall report in time and take necessary prevention and control measures if any substantial change occurs in the types
and numbers of the equipment producing environmental noise pollution, the ranges of noise produced, and the prevention and control
facilities.

Article 25

Industrial enterprises that produce environmental noise pollution shall take effective measures to reduce the impact of noise on the
neighbouring living environment.

Article 26

When establishing the national and trade standards for products according to law, the competent departments under the State Council
shall, in accordance with the requirements of sound environment protection and the country’s economic and technological conditions,
gradually impose restrictions on the ranges of noise for industrial equipment that is likely to produce environmental noise pollution.

The ranges of noise produced in the use of industrial equipment as mentioned in the preceding paragraph shall be clearly noted in
the relevant technical documents.

Chapter IV Prevention and Control of Noise in Construction

Article 27

“Noise in construction” mentioned in this Law refers to the sound produced in the construction of buildings and structures so as to
disturb the living environment in the neighbourhood.

Article 28

The discharge of noise in construction to the neighbouring living environment in the urban districts shall conform to the boundary
environmental noise discharge standards set by the state for construction sites.

Article 29

In the cases where machinery and equipment used in the course of construction are likely to produce environmental noise pollution
within urban districts, the construction unit shall, 15 days before the construction starts, report to the environmental protection
department of local people’s government at or above the county level in the place where the construction project is to be located,
the name, site and time limit of the project, the range of environmental noise it is likely to produce and measures for the prevention
and control of environmental noise.

Article 30

In urban districts where noise-sensitive buildings concentrate, it is prohibited to conduct construction operations at night which
are likely to produce environmental noise pollution, except those for rush repairs or for rescue work and those which require continual
work due to productive arts or some special needs.

A construction operation that requires continual work shall have a certificate issued by the people’s government at or above the county
level or the competent department concerned.

Operations at night mentioned in the preceding paragraph shall be announced to the neighbouring residents.

Chapter V Prevention and Control of Traffic and Transportation Noise

Article 31

“Traffic and transportation noise” mentioned in this Law refers to the sound produced by means of traffic and transportation in operation
such as motor vehicles, locomotives, motor vessels and aircraft so as to disturb the living environment in the neighbourhood.

Article 32

It is prohibited to manufacture, sell and import automobiles that produce noise in excess of the restrictions imposed on the range
of noise.

Article 33

Silencers and horns of motor vehicles that run in urban districts shall meet the requirements set by the state. Motor vehicles shall
be well-maintained and well-kept to good technical conditions and functions for the prevention and control of environmental noise
pollution.

Article 34

Motor vehicles running in urban districts, motor ships sailing along waterways in inland rivers within urban districts and locomotives
running through or entering urban districts or recuperate districts shall use their sounding devices as stipulated.

The installation and use of sirens on motor vehicles such as police cars, fire engines, engineering salvage vehicles and ambulances
shall conform to the provisions of the public security department under the State Council. When performing non-emergency duties,
they shall be prohibited from using sirens.

Article 35

Public security organs of people’s governments of cities may, according to the requirements for regional sound environment protection
in their urban districts, determine the sections of roads and time periods on and during which drivers are prohibited from running
motor vehicles and using their sounding devices, and then publicly announce them.

Article 36

In the cases where motorways and urban elevated or light track railroads to be built run through the areas where exiting noise-sensitive
buildings concentrate and are likely to produce environmental noise pollution, sound barriers shall be set up or other effective
measures shall be taken for the prevention and control of environmental noise pollution.

Article 37

In the cases where noise-sensitive buildings are to be built on either side of existing main urban traffic lines, the construction
unit shall set a proper distance in between as required by the state and shall take measures to reduce and eliminate the impact of
traffic noise.

Article 38

Loudspeakers used for conducting operations in such places as stations, railroad marshalling yards, harbours, wharves and airports,
shall be controlled in volume to reduce the impact of noise on the neighbouring living environment.

Article 39

In the cases where locomotives in operation cause environmental noise pollution to residential areas or cultural and educational areas
in cities where railroads pass through, local people’s governments of the cities shall organize the railroad departments and other
departments concerned to formulate plans for reducing environmental noise pollution. The railroad departments and other departments
concerned shall, according to the requirements of the plans, take effective measures to reduce environmental noise pollution.

Article 40

Except in the case of its takeoff and landing or in other circumstances provided for by the law, civil aircraft may not fly over urban
districts. People’s governments of cities shall determine areas surrounding the obstacle clearance zones for aircraft’s takeoff and
landing and restrict the construction of noise-sensitive buildings within such areas. If noise-sensitive buildings are to be built
within the said areas, the construction unit shall take measures to reduce and avert the impact of noise produced by aircraft in
operation. Civil aviation departments shall take effective measures to reduce environmental noise pollution.

Chapter VI Prevention and Control of Noise in Social Life

Article 41

“Noise in social life” mentioned in this Law refers to the sound produced in human activities so as to disturb the living environment
in the neighbourhood not including industrial noise, noise in construction and traffic and transportation noise.

Article 42

Commercial enterprises that produce environmental noise pollution by using fixed equipment in business operations in urban districts
where noise-sensitive buildings concentrate shall, pursuant to the provisions of the environmental protection department under the
State council, report to the environmental protection department of local people’s governments at or above the county level the situation
of their exiting equipment producing environmental noise pollution and their facilities for the prevention and control of environmental
pollution noise.

Article 43

The discharge of boundary noise produced in newly built places of culture and recreation must conform to the standards set by the
state for the discharge of environmental noise. For those that fail to meet the standards set by the state for the discharge of environmental
noise, the cultural administrative departments may not issue the permits for cultural business, and the industrial and commercial
departments may not issue the business license.

Managers of cultural and recreational places in operation shall take effective measures to control their boundary noise not exceeding
the state-set standards for the discharge of environmental noise.

Article 44

It is prohibited to use tweeters or other means that produce high noise in business operations to solicit customers.

In the cases where equipment or installations such as air-conditioners and cooling towers are used in business operations and are
likely to produce environmental noise pollution, the managers shall take measures to control their boundary noise not exceeding the
standards set by the state for the discharge of environmental noise.

Article 45

All units and individuals shall be prohibited from using tweeters in urban districts where noise-sensitive buildings concentrate.

In the cases where acoustic equipment is to be used in recreational activities or assemblies held in public places within urban districts
such as streets, squares and parks and is likely to produce too high a volume of sound disturbing the neighbouring living environment,
the organizers shall comply with the provisions of local public security organs.

Article 46

In the cases where anyone uses electrical household appliances or musical instruments or conducts other indoor activities of family
recreation, he shall control the volume of sound or take effective measures to avert environmental noise pollution caused to neighbouring
residents.

Article 47

In the cases where anyone conducts interior decoration and rehabilitation of residential houses already built and put into use, he
shall restrict his operation time or take other effective measures to reduce and avert environmental noise pollution caused to neighbouring
residents.

Chapter VII Legal Responsibility

Article 48

If, in violation of the provisions of Article 14 of this Law, a construction project is put into operation or use when its facilities
for the prevention and control of environmental noise pollution have not been built as an auxiliary part or fail to meet the requirements
set by the state, the environmental protection department responsible for the examination and approval of the environmental impact
statement on the construction project shall order the suspension of its operations or use and may concurrently impose a fine.

Article 49

If anyone, in violation of the provisions of this Law, refuses to report or submits a false report on items for which registration
is required for the discharge of environmental noise, the environmental protection department of local people’s government at or
above the county level may, according to the circumstances of the case, give him a warning or impose a fine.

Article 50

If anyone, in violation of the provisions of Article 15 of this Law, dismantles or leaves idle the facilities for the prevention
and control of environmental noise pollution without prior approval by the environmental protection department and thereby discharges
environmental noise in excess of the prescribed standards, the environmental protection department of local people’s government at
or above the county level shall order him to make corrections and concurrently impose a fine.

Article 51

If anyone, in violation of the provisions of Article 16 of this Law, refuses to pay the fee for excessive discharge of noise according
to state provisions, the environmental protection department of local people’s government at or above the county level may, according
to the circumstances of the case, give him a warning or impose a fine.

Article 52

An enterprise or institution that fails to eliminate or control pollution within a time limit by violating the provisions of Article
17 of this Law shall, as provided for by the state, pay a fee for excessive discharge; in addition, a fine may be imposed on it
on the basis of the damage incurred, or the enterprise or institution may be ordered to suspend its operations, move to a new site
or close down.

The fine mentioned in the preceding paragraph shall be decided by the competent environmental protection department. Orders for the
suspension of operations, moving to another site or shutdown of enterprises or institutions shall be decided by people’s governments
at or above the county level within the jurisdiction set by the State Council.

Article 53

If anyone, in violation of the provisions of Article 18 of this Law, produces, sells or imports prohibited equipment, the comprehensive
economic administrative department of people’s government at or above the county level shall order him to make corrections. When
the cases are serious, the comprehensive economic administrative department of people’s government at or above the county level shall
propose to the people’s government at the same level for an order of suspension of operations or shutdown made within the jurisdiction
set by the State Council.

Article 54

If anyone, in violation of the provisions of Article 19 of this Law, conducts productive activity that discharges fortuitous strong
noise without the approval of the local public security organ, the public security organ shall, according to the circumstances of
the case, give him a warning or impose a fine.

Article 55

If any unit discharging environmental noise, in violation of the provisions of Article 21 of this Law, refuses an on-site inspection
or resorts to trickery and fraud during inspection by the competent environmental protection department or another department or
organ exercising supervision and management of environmental noise under this Law, the environmental protection department or another
department or organ exercising supervision and management of environmental noise under this Law may, according to the circumstances
of the case, give it a warning or impose a fine.

Article 56

If any construction unit, in violation of the provisions of the first paragraph of Article 30 of this Law, conducts prohibited construction
operations at night which produce environmental noise pollution in urban districts where noise-sensitive buildings concentrate, the
environmental protection department of local people’s government at or above the county level in the place where the construction
project is located shall order it to make corrections or may concurrently impose a fine.

Article 57

If motor vehicles, in violation of the provisions of Article 34 of this Law, fail to use sounding devices as stipulated, the local
public security organs shall, according to the circumstances of the cases, give a warning or impose a fine.

For motor ships committing the illegal act mentioned in the preceding paragraph, the harbour superintendency agencies shall, according
to the circumstances of the cases, give a warning or impose a fine.

For locomotives committing the illegal act mentioned in the first paragraph, the competent railroad departments shall impose disciplinary
sanctions upon the person involved.

Article 58

Anyone who, in violation of the provisions of this Law, commits any of the following acts shall be given a warning and may be concurrently
imposed a fine by the public security organ:

(1)

using a tweeter in the urban district where noise-sensitive buildings concentrate;

(2)

using acoustic equipment in recreational activity or assembly held in a public place within the urban district such as a street, square
or park by violating the provisions of the local public security organ, and thereby producing too high a volume of sound that disturbs
the neighbouring living environment; or

(3)

failing to take measures according to the provisions of Articles 46 and 47 of this Law and discharging environmental noise from his
residential house that seriously disturbs the neighbouring residents’ lives.

Article 59

If anyone, in violation of the provisions of the second paragraph of Article 43 or the second paragraph of Article 44 of this Law,
produces environmental noise pollution, the environmental protection department of local people’s government at or above the county
level shall order him to make corrections and may concurrently impose a fine.

Article 60

If anyone, in violation of the provisions of the first paragraph of Article 44 of this Law, produces environmental noise pollution,
the public security organ shall order him to make corrections and may concurrently impose a fine.

If people’s governments at or above the provincial level decide according to law that the environmental protection departments of
local people’s governments at or above the county level exercise the right of imposing administrative sanctions as stipulated in
the preceding paragraph, the decision shall prevail.

Article 61

Any unit or individual that suffers from an environmental noise pollution hazard shall have the right to demand the elimination of
the hazard by the polluter. The polluter shall make compensation according to law if losses have caused.

A dispute over the responsibility for making compensation or the amount of compensation may, at the request of the parties, be settled
under reconciliation by a competent environmental protection department or another supervisory and management department or organ
for the prevention and control of environmental noise; if a party refuses to accept the decision, it may bring a suit before a people’s
court. The party may also bring a suit before the people’s court directly.

Article 62

Any supervisory and management person for the prevention and control of environmental noise pollution who abuses his power, neglects
his duty or engages in malpractices for personal gains shall be given disciplinary sanction by the unit to which he belongs or the
competent higher authorities; if his act constitutes a crime, he shall be investigated for criminal responsibility according to law.

Chapter VIII Supplementary Provisions

Article 63

For the purpose of this Law, the definitions of the following terms are:

(1)

“Discharge of noise” means the radiation of noise from its source to the neighbouring living environment.

(2)

“Noise-sensitive buildings” mean hospitals, schools, government organs, scientific research institutions, residential houses and other
buildings which need to keep quietness.

(3)

“Areas where noise-sensitive buildings concentrate” means medical areas, cultural and educational and scientific research areas and
areas mainly composed of government organs or residential houses.

(4)

“At night” means the time interval from 22:00 p.m. to 6:00 a.m..

(5)

“Motor vehicles” mean automobiles and motorcycles.

Article 64

This Law comes into force on the date of March 1, 1997. The Regulations of the People’s Republic of China on the Prevention and Control
of Environmental Noise Pollution promulgated by the State Council on September 26, 1989 shall be annulled.

The Standing Committee of the National People’s Congress
1996-10-29

REPLY OF THE STATE COUNCIL TO THE PROGRAMME FOR PREVENTION AND CONTROL OF WATER POLLUTION AND THE NINTH-FIVE-YEAR PLAN OF THE HUAIHE RIVER VALLEY

Category	ENVIRONMENTAL PROTECTION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1996-06-29	Effective Date	1996-06-29

Reply of the State Council to the Programme for Prevention and Control of Water Pollution and the Ninth-five-year Plan of the Huaihe River Valley

(June 29, 1996)

The Application for Approval of the Programme for Prevention and Control
of Water Pollution and the Ninth-Five-Year Plan of the Huaihe River Valley
jointly submitted by the State Administration for Environmental Protection,
the State Planning Commission and the Ministry of Water Resources has been
received and is hereby replied to as following:

1. The Programme for Prevention and Control of Water Pollution and the
Ninth-Five-Year-Plan of the Huaihe River Valley (hereinafter abbreviated to
the Programme and the Plan) has been approved in principle. You are instructed
to include them as priorities in Ninth-Five-Year Plans, conscientiously
organize their implementation and gradually make them perfect during the
course of practice.

2. The Programme and the Plan provides an important basis for water
resource protection and water pollution prevention and control in the Huaihe
River Valley. Economic construction activities within the valley shall conform
with prescriptions of the Programme and the Plan. The people’s governments of
the four provinces of Henan, Anhui, Jiangsu and Shandong (hereinafter referred
to as the four provinces for short) and the relevant departments shall
according to stipulations of the Programme and the Plan formulate at the
soonest possible time local programmes and their implementation plans for
prevention and control of water pollution in the areas of Huaihe River valley
under their respective provincial or departmental jurisdiction. They shall
lose no time in making preparations, lay stress on key projects and through
the procedures governing examination and approval of infrastructure
construction and technology renovation projects, list those projects, in
groups and by stages, in regional, departmental or national ninth-five-year
plans for national economy and social development or their annual plan for
their execution so that the year 1997 could see the pollutants discharge from
industrial pollution sources within the whole valley being restricted to
standards and the year 2000 could see the realization of the goal of making
Huaihe River cleared.

3. The objectives of control over maximum pollutants discharge in the
Huaihe River valley laid down in the Programme and Plan has been agreed to. In
1997, the permitted maximum discharge of chemical oxygen demands (hereinafter
abbreviated to COC) in the whole valley shall be 890,200 tons, of which
247,200 tons is allocated for Henan, 207,700 tons for Anhui, 171,500 tons for
Jiangsu and 263,800 tons for Shandong. In the year 2000, the permitted maximum
discharge of COD in the whole valley shall be 368,000 tons, of which 127,400
tons is permitted in Henan, 77,000 tons in Anhui, 98,900 tons in Jiangsu, and
64,700 tons in Shandong.

4. The division of the Huaihe River Valley into seven control zones with
34 control districts, which are further divided into 100 sub-districts, as
laid down in the Programme and the Plan, is accepted.

Stipulations of the Programme and the Plan are agreed to regarding water
quality requirements in terms of 82 water quality control sections; sewage
discharge restraints on different trades prescribed by state-set standards on
discharge of water-polluting wastes; permitted maximum discharge of COD from
major cities and towns situated above control sections; permitted maximum
discharge of COD from major discharging channels, minimum requirements for
reduction of sewage discharge in a stage by stage manner by different
provinces, cities and counties, and targets for superseding backward
industrial equipment.

Water quality of Huaihe River Valley within the jurisdiction of the four
provinces shall respectively meet water quality standards for provincial
boundaries.

5. The Programme and the Plan recommends about 303 optional projects for
prevention and control of water pollution, which asks for totally RMB 16.6
billion yuan. Funds shall be raised by various channels and from different
sources following the principle that whoever discharges pollutants shall be
held responsible for its control. Unremitting efforts shall be made to raise
the efficiency of use of funds for prevention and control of pollution. The
four provincial people’s governments shall organize project undertaking units
to go through the procedures of application, assessment, examination for
approval and loan arrangements so that investments plan could be carried out
by stages. For those water pollution prevention and control projects that have
been covered by annual plans, the four provincial people’s governments, the
relevant departments of the state Council and concerned enterprises shall
ensure for the injection of funds according to schedules. The State Planning
Commission, the State Commission for Economy and Trade and other relevant
departments shall strengthen instruction and urging in this regard.

6. The four provincial people’s governments shall, according to
prescriptions of the Programme and the Plan, closely attend to the formulation
of provincial plans on installation, by stages, of facilities for disposal of
polluted water and drainage pipes and networks in major cities and towns
situated in the Huaihe River Valley, and shall closely attend to the work of
construction.

To establish a construction and operation mechanism for city and township
sewage disposal facilities, trial levy of fees for sewage disposal in cities
and towns may be conducted. The fees so collected shall be specially used for
the construction and operation of sewage disposal facilities in Huaihe River
Valley, and may not be embezzled for other uses. The pilot cities selected for
such trial shall be determined by the Construction Ministry, the State
Administration for Environmental Protection, jointly with the State Planning
Commission and the Financial Ministry. Procedures governing levy of the fees
shall be formulated by the Financial Ministry in cooperation with the State
Planning commission and the State Administration for Environmental Protection,
who shall closely attend to the matter and promulgate such procedures before
September 30, 1996 for implementation by the four provinces.

7. People’s governments at different levels of the four provinces shall
speed up transformation of industrial structure, urge clean production and
stringently restrain occurrence of new pollution sources. They shall,
according to the Interim Regulations on the Prevention and Control of Water
Pollution in the Huaihe River Valley (hereinafter referred to as the Interim
Regulations for short) and the Programme and the Plan, adopt measures such as
“close down, suspend, ban, transform or convert” and restriction of production
or discharge and shall set a deadline for industrial enterprises (and
countryside and township enterprises also) to bring pollution sources under
control.

Relevant departments of the State Council shall lose no time in
determining and publicizing a list of lines and products banned or rigorously
restricted in Huaihe River Valley, and shall take the initiative in
cooperating with the four provinces to develop, apply and expand pragmatic
technologies for water pollution prevention and control.

8. The people’s governments of the four provinces shall strengthen
leadership over the work of water pollution prevention and control.
Administrative departments in charge of environmental protection shall
strengthen supervision over enforcement of environmental laws and regulations,
strictly comply with the environmental impact assessment system and the
“three-stage simultaneous” requirement. The Leading Group for Protecting Water
Resources within the Huaihe River Valley shall make prompt coordination, solve
key problems concerning the protection of water resources and prevention and
control of water pollution in the Huaihe River Valley, facilitate research and
construction of a monitoring system for prevention and control of water
pollution, index system for monitoring control of pollution, and shall
strengthen supervision and inspection.

The people’s governments of the four provinces and the relevant
departments under the State Council shall closely cooperate and unite with
each other in control of pollution, comply with stipulations of the Interim
Regulations and the Programme and the Plan, and jointly do a find job in the
prevention and control of water pollution in the Huaihe River Valley.

REGULATIONS ON ADMINISTRATION OF FILMS

Category	CULTURE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1996-06-19	Effective Date	1996-07-01

Regulations on Administration of Films

Chapter I  General Provisions
Chapter II  Production of Films
Chapter III  Examination of Films
Chapter IV  Import and Export of Films
Chapter V  The Distribution and Projection of Films
Chapter VI  The Guarantee for Film Undertakings
Chapter VII  Penalty Provisions
Chapter VIII  Supplementary Provisions

(Adopted at the 45th Executive Meeting of the State Council on May 29,

1996, promulgated by Decree No.200 of the State Council of the People’s
Republic of China on June 19, 1996)
Chapter I  General Provisions

Article 1 These Regulations are formulated for the purposes of
strengthening the administration of the film industry, developing and
promoting film undertakings, satisfying the needs of the people for cultural
life and promoting the construction of socialist material and spiritual
civilization.

Article 2 These Regulations shall apply to activities of the production,
import, export, distribution and projection, etc., of feature films,
documentary films, science and educational films, films of special subjects,
cartoons and puppet films, etc., within the territory of the People’s
Republic of China.

Article 3 Activities concerning films such as film production, import,
export, distribution and projection, etc., must persevere in the direction of
serving the people and socialism.

Article 4 The administrative department of radio, film and television
of the State Council shall take charge of the nationwide work of films.

Administrative department for films of people’s governments at and above
the county level shall, in accordance with these Regulations, be responsible
for the administration of films within their respective regions.

Article 5 National social organizations in film industry shall, in
accordance with their constitutions and under the guidance of the
administrative department of radio, film and television of the State Council,
exercise self-discipline in the management.

Article 6 The state shall give rewards to organizations and individuals
having made remarkable contributions to the development of film undertakings.
Chapter II Production of Films

Article 7 Films shall be produced by film studios.

Article 8 The establishment of a film studio must be in conformity with
the plan on the total number, distribution and structure of film studios
formulated by the administrative department of radio, film and television of
the State Council, and satisfies the following requirements:

(1) Have the aim and constitution of the film studio;

(2) Have definite scope of business;

(3) Have the funds suitable to its business;

(4) Have place and equipment according with stipulations for film
production; and

(5) Have an organizational structure and professional personnel suitable
to the demands of the business.

Article 9 For applying for the establishment of a film studio, the
administrative department in charge of the applicant unit shall submit an
application to the administrative department for films of the local people’s
government of the province, autonomous region and municipality directly under
the central government for examination and permission, and the latter, if
giving permission, shall submit the application to the administrative
department of radio, film and television of the State Council for examination
and approval.

The application shall include the following items:

(1) The name, address and economic nature of the film studio to be
established;

(2) The name, address and nature of the administrative department in
charge of, and the sponsor of, the film studio to be established;

(3) The name, address and credentials of the legal representative of the
film studio to be established; and

(4) The source and amount of the funds of the film studio to be
established.

Article 10 The administrative department of radio, film and television
of the State Council shall, within 180 days after receiving the application
for establishing a film studio, make a decision on whether or not to approve
it, notify the applicant in writing of the decision, and give reasons if the
application has not been approved. Where the application is approved, the
administrative department of radio, film and television of the State Council
shall issue a License for Film Production to the applicant and, by producing
the license, the applicant shall register with the administrative department
for industry and commerce of the State Council and draw a Business License
therefrom.

Article 11 A film studio shall, to the extent of all its assets, enjoy
civil rights and assume civil obligations in accordance with the law.

Article 12 The state shall carry out annual inspection on licenses
for film production, the measures for which shall be formulated by the
administrative department of radio, film and television of the State Council.

Article 13 Changes and termination of a film studio shall be subject to
to the approval of the administrative department of radio, film and
television of the State Council, and shall go through the registration for
changes or formalities for cancellation.

Article 14 Film studios may engage in the following activities:

(1) Produce films;

(2) Make reproductions of films produced by themselves;

(3) In accordance with relevant provisions of the state, distribute films
and their reproductions produced by themselves and allowed to be projected
publicly; and

(4) In accordance with relevant provisions of the state, export films and
their reproductions produced by themselves and allowed to be projected
publicly.

Article 15 Film studios shall establish and improve the management
system and guarantee the quality of the films.

Article 16 Film studios shall enjoy copyrights over the films produced
by themselves. Except as otherwise stipulated by laws or regulations, any
unit or individual shall get authorization from the copyright owner before
exploiting a film product by means of reproduction, distribution, projection,
broadcast, publication, dubbing, adaptation or the like.

Anyone who exploits a film product under the provisions of the preceding
paragraph shall conclude a contract with the copyright owner and pay
remuneration in accordance with the stipulations of the contract.

Article 17 The state encourages official organs, enterprises,
institutions and other social organizations and citizens to participate in
film production by investing or giving financial aid, the measures for which
shall be formulated by the administrative department of radio, film and
television of the State Council.

Article 18 Film studios may, either inside or outside China, produce
films in cooperation with external film producers.

Article 19 For Sino-foreign joint production of a film, the Chinese side
shall submit an application in advance to the administrative department of
radio, film and television of the State Council, and the latter shall, after
getting opinions from relevant departments and considering it in conformity
with relevant provisions after examination, issue a Permit for Sino-Foreign
Joint Production of Films only for the present application. After obtaining
the permit, the applicant shall, in accordance with relevant provisions,
conclude a contract for the joint production.

Article 20 When there is a need to import equipment, materials, film or
props for the Sino-foreign joint production of a film, the producer shall go
through the import or temporary import formalities with the customs by
producing the approval document issued by the administrative department of
radio, film and television of the State Council.

Article 21 When producing films in cooperation with Chinese film studios
or in other forms in the territory of the people’s republic of China,
external film producers shall observe laws and regulations of the People’s
Republic of China and respect the customs and habits of various Chinese
nationalities.

Article 22 The development and later production of negatives and sample
copies of a film produced either by a domestic film studio or a Sino-foreign
joint effort shall be done in the territory of the People’s Republic of
China. When it needs to be completed outside China due to some special
technological demands, a specific application shall be submitted to the
administrative department of radio, film and television of the State Council
for approval.
Chapter III Examination of Films

Article 23 The state shall adopt a film examination system.

Films that have not examined and approved by the film examination
organ of the administrative department of radio, film and television of the
State Council may not be distributed, projected, imported or exported.

Article 24 Films are forbidden to have the following contents:

(1) Those endangering the unity, sovereignty and territorial integrity of
the state;

(2) Those harming the security, honor and interests of the state;

(3) Those inciting national splitism and disrupting the unity of
nationalities;

(4) Those divulging state secrets;

(5) Those publicizing obscenity or superstitions or playing up violence;

(6) Those libeling or insulting other people; or

(7) Other contents prohibited by the state.

Films shall be up to the national standards in terms of technological
quality.

Article 25 Film studios shall, in accordance with the provisions of
Article 24, conduct examination on scenarios before they are put into
production and on films before they are dispatched from the studios.

Film studios shall submit the scenarios which they plan to put into
production to the film examination organ for filing, the measures of which
shall be formulated by the administrative department of radio, film and
television of the State Council.

Article 26 Film studios shall, after the completion of a film
production, submit the film to the film examination organ for examination and
pay the examination fee in accordance with relevant provisions of the state.
Units engaging in film import shall, after going through the formalities for
the temporary import of a film, submit the film to the film examination organ
for examination and pay the examination fee.

The schedule of fees for film examination shall be fixed by the financial
department and price department of the State Council together with the
administrative department of radio, film, and television of the State
Council.

Article 27 The film examination organ shall, within 30 days after
receiving the film submitted for examination, notify the submitting unit in
writing of the decision on the examination and, if the film has passed the
examination, issue a Permit for Film Projection for this film. Film studios
and units engaging in film import shall put the number of their Permit for
Film Projection on the post_title of the first copy of the film.

Article 28 If refusing to accept the decision of the film examination,
the film studio or the unit engaging in film import may, within 30 days
after receiving the decision, apply re-examination to the film re-examination
organ of the administrative department of radio, film and television of the
State Council; the latter shall issue a Permit for Film Projection for the
film if it passes the re-examination.
Chapter IV Import and Export of Films

Article 29 Import of films shall be managed by units approved by the
administrative department of radio, film and television of the State Council
for engaging in film import; without approval, no other units or individuals
may engage in film import.

Article 30 For importing films for examination, the unit engaging in
film import shall go through the formalities for temporary import with the
customs by producing the approval document issued by the administrative
department of radio, film and television of the State Council.

Films imported for public projection shall be examined by the film
examination organ; those having passed the examination shall be issued a
Permit for Film Projection and documents approving the import. Only by
producing the documents approving the import may the unit engaging in film
import go through the formalities for import with the customs.

Article 31 Units engaging in film import shall exploit film products
with the license and within the scope of the license of the copyright owner
of the film; without the license, no unit or individual may exploit imported
film products.

Article 32 The ownership of copyright to a dubbed film shall be
stipulated by the dubbing party and entrusting party in the film-dubbing
contract; in case of failure to have such stipulations in the contract, the
copyright to the dubbed film shall be owned by the dubbing party.

Article 33 For exporting a film produced by themselves, a film studio
may go through the formalities for film export with the customs by producing
the Permit for Film Projection.

Article 34 For exporting a film produced by a Sino-foreign joint effort,
the Chinese side may go through the formalities for film export with the
customs by producing the Permit for Film Projection.

Article 35 For importing films of special subjects as reference
materials for scientific research or education, the importing unit shall
submit an application to the relevant administrative department of the State
Council for approval and, with an approval document, they may go through the
formalities for import with the customs and shall, within 30 days after the
import, report to the administrative department of radio, film and television
of the State Council for filing.

China Film Library may directly go through the formalities with the
customs for importing reference films, and report to the administrative
department of radio, film and television of the State Council for filing by
the quarter. No other units or individuals may import feature films or other
films prohibited by the state in the name of scientific research or
education.

Article 36 For holding a Sino-foreign film exhibition or international
film festival or participating in foreign-related film exchange activities
such as film exhibition or film festival held abroad, an application shall be
submitted to the administrative department of radio, film and television of
the State Council for approval, and the films to be involved in the exchanges
shall be submitted to the administrative department of radio, film and
television of the State Council for examination; only with the approval can
the formalities for temporary import or export of films be handled with the
customs.
Chapter V The Distribution and Projection of Films

Article 37 Film distribution and projection units to be established
must satisfy the requirements specified by the administrative department of
radio, film and television of the State Council.

Article 38 For establishing a film distribution unit, an application
shall be submitted to the administrative department for films of the local
people’s government of province, autonomous region or municipality directly
under the central government, which shall, if considering it in conformity
with stipulations after examination, issue a Business License for Film
Distribution; the applicant shall register with the local administrative
department for industry and commerce by producing the license.

Article 39 For establishing a film distribution unit involving more than
one province, autonomous region or municipality directly under the central
government, an application shall be submitted to the administrative
department of radio, film and television of the State Council, which shall,
if considering it in conformity with stipulations after examination, issue a
Business License for Film Distribution; the applicant shall register with the
local administrative department for industry and commerce by producing the
license.

Article 40 For establishing a film projection unit, an application shall
be submitted to the administrative department for films of the local people’s
government at or above the county level, which shall, if considering it in
conformity with stipulations after examination, issue a Business License for
Film Projection; the applicant shall register with the local administrative
department for industry and commerce by producing the license.

Article 41 In case of changes or termination of a film distribution or
projection unit, approval from the original approving department must be
obtained, and the registration for changes or cancellation shall be conducted
in accordance with the law.

Article 42 The state shall adopt an annual inspection system to the
Business License for Film Distribution and the Business License for Film
Projection. Measures for the annual inspection shall be formulated by the
administrative department of radio, film and television of the State Council.

Article 43 For distributing or projecting a film, one must hold a Permit
for Film Projection issued by administrative department of radio, film and
television of the State Council.

Article 44 For producing audio-visual products by exploiting films, the
license from the copyright owner of the film must be obtained, and the
procedures for publication, reproduction, distribution and projection shall
be completed in accordance with the provisions of the State Council
concerning the administration of audio-visual products.

No unit or individual may use reference films for profit-seeking
activities or disguised profit-seeking activities.

Article 45 The ratio of time spent on the projection of domestic films
and that spent on the projection of the imported films shall be consistent
with stipulations.

The time spent every year by a film projection unit on the projection of
domestic films may not be less than two thirds of the total time spent
annually by the same projection unit on film projection.

Article 46 Film projection units shall maintain the public order and
general sanitation of the cinemas and guarantee the safety and health of the
audiences.

Article 47 In some special cases, the administrative department of
radio, film and television of the State Council may make a decision of
deletion or suspension of projection on films already having the Permit for
Film Projection; all film distribution and projection units shall carry out
such decisions.
Chapter VI The Guarantee for Film Undertakings

Article 48 The state shall establish and improve a film administration
system compatible with the socialist market economy in order to develop the
film undertakings.

Article 49 The state shall guarantee the freedom in film creation, value
and foster talented persons for film undertakings, attach importance to and
strengthen the theoretical research in films, promote film creation and
improve the quality of films.

Article 50 The state shall set up a special foundation for the
development of film undertakings and adopt other favorable measures to
support the development of film undertakings.

Article 51 The special foundation for the development of the film
undertakings shall support or give aid to the following projects:

(1) The production of major films and collection of highly rated
scenarios advocated and confirmed by the state;

(2) Technological or equipment transformation of key film production
bases;

(3) Transformation of film projection equipment;

(4) The development of film undertakings in minority nationality regions
or remote border and poverty-stricken areas; and

(5) Other projects needing support.

Article 52 The state encourages and support the production, distribution
and projection of science and educational films, children’s films, cartoons
and puppet film, etc.

Article 53 The state shall give favored treatment to the film
distribution and projection in economically undeveloped areas and rural
regions.

Article 54 Local people’s governments at various levels shall
incorporate the plan for the building of film projection facilities into
their local construction planning.

Rebuilding of film projection facilities shall be submitted to the
administrative department for films of the local people’s government at or
above the county level for approval. The facilities rebuilt may not be
smaller than the original in size, nor the use of film projection facilities
for other purposes shall be allowed.

Article 55 People’s governments at and above the county level and their
relevant administrative departments shall take timely actions to stop acts of
disturbing, obstructing or sabotaging film production, distribution or
projection, investigate and deal with the illegal activities in accordance
with the law.
Chapter VII Penalty Provisions

Article 56 Units of film production, import, distribution and
projection established without approval shall be banned by the administrative
department for films of the local people’s government at or above the county
level with the illegal articles and earnings confiscated and a fine from five
to ten times the illegal earnings.

Article 57 In cases of violations of these Regulations by importing,
distributing or projecting a film without a Permit for Film Projection, the
administrative department for films of the local people’s government at or
above the county level shall order a stop to the illegal activities,
confiscate the illegal articles and earnings and impose a fine from ten to
fifteen times the illegal earnings; if the circumstances are serious, a
suspension for rectification shall be ordered or the license revoked by the
organ issued the license; when a crime is constituted, the criminal
responsibility shall be investigated in accordance with the law.

Article 58 In cases of violations of these Regulations by committing any
of the following acts, the administrative department for films of the local
people’s government at or above the county level shall order a stop to the
illegal activities, confiscate the illegal articles and earnings and impose
a fine from five to ten times the illegal earnings; if the circumstances are
serious, a suspension for rectification shall be ordered or the license
revoked by the organ issued the license; when a crime is constituted, the
criminal responsibility shall be investigated in accordance with the law:

(1) Produce films in cooperation with external organizations or persons
without approval;

(2) Import films without examination and approval;

(3) Use reference films for profit-seeking activities or disguised
profit-seeking activities;

(4) Fail to observe the decision of the administrative department of
radio, film and television of the State Council of the deletion or suspension
of projection on a film; or

(5) Illegally reproduce films.

Article 59 In cases of violations of these Regulations by making
development or later production of the negatives or sample copies of a film
outside China without approval, the administrative department of radio, film
and television of the State Council shall order a stop to the illegal
activities and set a time limit for correction; if the circumstances are
serious, the Permit for Film Production shall be revoked.

Article 60 Sino-foreign film exhibitions and international film
festivals held without approval and the participation in external film
exhibitions or film festivals without approval shall be banned by the
administrative department of radio, film and television of the State Council
with the illegal earnings confiscated and a fine from five to ten times the
illegal earnings.

Article 61 Personnel of the administrative department of radio, film and
television of the State Council and the administrative department for films
of local people’s governments at and above the county level and other
relevant administrative personnel who, in conducting the administration of
films, abuse their powers, neglect their duties or play favoritism and commit
irregularities shall be investigated for criminal responsibility if a crime
is constituted, or given a disciplinary sanction if the circumstances are not
serious enough to constitute a crime.
Chapter VIII Supplementary Provisions

Article 62 Units of film production, import, distribution and projection
established before the implementation of these Regulations according to the
state’s provisions other than these Regulations shall, within six months of
the effective date of these Regulations, go through relevant formalities anew
in accordance with the provisions of these Regulations.

Article 63 Measures for the production and broadcast of telefilms shall
be formulated by the administrative department of radio, film and television
of the State Council in accordance with the principles confirmed in these
Regulations.

Article 64 These Regulations shall go into effect on July 1, 1996.

1...678...14 Page 7 of 14

2002

PROVISIONAL REGULATIONS ON THE ADMINISTRATION OF QUALIFICATIONS OF DOMESTIC AND OVERSEAS SECURITIES INSTITUTIONS DEALING IN SHARES FOR THE PURCHASE...

REGULATIONS OF BEIJING MUNICIPAL GOVERNMENT ON ADMINISTRATION OF EMPLOYMENT OF CHINESE CITIZENS BY RESIDENT REPRESENTATIVE OFFICES OF FOREIGN ENTERPRISES

ADMINISTRATIVE PENALTY LAW

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE APPLICABLE TAXATION POLICY OF THE FOREIGN PETROLEUM COMPANIES INVOLVING IN EXPLOITATION OF COAL GAS

LAW ON LAWYERS AND LEGAL REPRESENTATION

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL FOR TRANSMITTING THE PROPOSALS SUBMITTED BY THE STATE ECONOMIC AND TRADE COMMISSION AND OTHER DEPARTMENTS ON CRACKING DOWN ON THE ILLEGAL ACTIVITIES OF PRODUCING AND SELLING FAKE AND LOW-QUALITY COMMODITIES

DECISION OF THE STATE COUNCIL ON CRACKING DOWN ON FRAUDS OF TAX REFUNDS FOR EXPORT AND PUNISHING ACTS VIOLATING LAW AND DISCIPLINE IN FINANCIAL AND TAX FIELDS

PEOPLE’S AIR DEFENCE

CIRCULAR ON IMPLEMENTING JOINT ANNUAL INSPECTION FOR ENTERPRISES WITH FOREIGN INVESTMENT

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND CONTROL OF ENVIRONMENTAL NOISE POLLUTION

REPLY OF THE STATE COUNCIL TO THE PROGRAMME FOR PREVENTION AND CONTROL OF WATER POLLUTION AND THE NINTH-FIVE-YEAR PLAN OF THE HUAIHE RIVER VALLEY

REGULATIONS ON ADMINISTRATION OF FILMS

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7