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2003

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE SETTLEMENT OF THE TAXPAYERS OBTAINING THE FALSE SPECIAL INVOICE OF VALUE-ADDED TAX WITHOUT ACKNOWLEDGE

The State Administration of Taxation

Circular of the State Administration of Taxation on the Settlement of the Taxpayers Obtaining the False Special Invoice of Value-added
Tax without Acknowledge

GuoShuiFa [1997] No.134

August 8, 1997

The state tax bureaus of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan:

It is enquired recently by the local state tax bureaus how to handle the false added-value special invoice obtained by the taxpayers
(hereinafter referred to special invoice). Through studying, it is clarified as follows:

The drawees who apply the taxation institutions for tax deduction in use of the false special invoice drawn by others for purpose
of tax dodging should recover the tax and be fined under five times of dodging tax according to the Law of the People’s Republic
of China on Tax Collection and relevant regulations. If income tax is larger than sales tax, the remaining income tax should be adjusted
and reduced. Those who defraud the exports tax rebate by way of drawing the false special invoice should recover the tax in accordance
with the law and be imposed fine of under five times amount of defrauded tax.

II.

If the buyers apply the taxation institutions for tax deduction or exporting or exports tax rebate by means of the invoice drawn by
the 3rd party or the invoice of the place where the goods is not sold, the tax should be recovered and fine under five times of dodging
tax be imposed in accordance with the Law of of the People’s Republic of China on Tax Collection and relevant regulations.

III.

The taxpayers holding the invoice hereinabove who do not apply the taxation institutions for tax deduction or exports tax rebate should
be imposed fine of under 10 thousand RMB based on the copies of the invoice obtained in accordance with the Measures of the People’s
Republic of China on Administration of Invoices and the relevant provisions. Those who know or should know the special invoice is
false or those who have the others draw the false special invoice should be punished seriously.

IV.

If tax-dodging or tax-defrauding constitutes a crime by means of false special invoice, the taxation institutions should handle in
an administrative manner such as recovering the tax and then transfer to the legal institutions for the criminal responsibility.

The State Administration of Taxation
1997-08-08

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING APPROVAL OF THE SUGGESTION ON THE CONCLUSION OF THE WORK OF THE PREPARATORY COMMITTEE OF THE HONGKONG SPECIAL ADMINISTRATIVE REGION OF THE NATIONAL PEOPLE’S CONGRESS

Category	SPECIAL ADMINISTRATIVE REGION	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1997-07-03	Effective Date	1997-07-03

Decision of the Standing Committee of the National People’s Congress Concerning Approval of the Suggestion on the Conclusion of the Work of the Preparatory Committee of the Hongkong Special Administrative Region of the National People’s Congress

(Adopted at the 26th Meeting of the Standing Committee of the Eighth

National People’s Congress on July 3, 1997)

The 26th Meeting of the Standing Committee of the Eighth National People’s
Congress has deliberated the report of the Preparatory Committee of the
Hongkong Special Administrative Region of the National People’s Congress
concerning the suggestion on the conclusion of the work of the Preparatory
Committee. It is held at the Meeting that the Preparatory Committee of the
Hongkong Special Administrative Region of the National People’s Congress has
successfully completed various preparations for the establishment of the
Hongkong Special Administrative Region in accordance with the Basic Law of the
Hongkong Special Administrative Region of the People’s Republic of China and
the relevant decisions of the National People’s Congress and its Standing
Committee since its establishment in January of 1996. The Meeting decides to
approve the suggestion of the Preparatory Committee of the Hongkong Special
Administrative Region of the National People’s Congress on the conclusion of
the work of the Preparatory Committee.

CIRCULAR OF THE STATE COUNCIL ON THE APPROVAL AND TRANSMISSION OF THE SCHEME FOR EXPERIMENT ON THE REFORM OF SMALL TOWNSHIP CENSUS REGISTER CONTROL SYSTEM AND ON THE SUGGESTIONS ON THE PERFECTION OF RURAL CENSUS REGISTER CONTROL SYSTEM OF THE MINISTRY OF PUBLIC SECURITY

Category	PUBLIC SECURITY	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1997-06-10	Effective Date	1997-06-10

Circular of the State Council on the Approval and Transmission of the Scheme for Experiment on the Reform of Small Township Census Register Control System and on the Suggestions on the Perfection of Rural Census Register Control System of the Ministry of Public Security

APPENDIX I:SCHEME FOR EXPERIMENT ON THE REFORM OF SMALL TOWNSHIP
APPENDIX II.SUGGESTIONS ON THE PERFECTION OF RURAL CNESUS REGISTER

(June 10, 1997)

The State Council hereby approves the Reform of Small Township Census Register Control System> and on the Perfection of Rural Census Register Control System> of the Ministry
of Public Security which are transmitted to you for conscientious
implementation.

Step-by-step reform of small township census register control system
and perfection of rural census register control system are an important
basic work of the state which concerns the overall situation of economic
development, social progress and maintenance of social stability. Governments
at all levels must strengthen leadership, carefully carry out organizational
work for its implementation and actively, steadily and satisfactorily
perform the mission in accordance with the uniform provisions of the state.
APPENDIX I:SCHEME FOR EXPERIMENT ON THE REFORM OF SMALL TOWNSHIP
CENSUS REGISTER CONTROL SYSTEM(Ministry of Public Security May 20, 1997)

I.Aim and Significance of the Reform of Small Township Census Register
Control System

The existing census register control system in this country which has
been gradually established since the founding of New China has played an
important role in promoting socio-economic development, safeguarding
citizens’ legitimate rights and interests and maintaining social order.
However, since the implementation of the policy of reform and opening up
and especially under the new situation of developing the socialist market
economy, the existing census register control system can no longer fully
cope with the requirements of the development of the situation. Pursuant
to the spirit of the Third Plenary Session of the Fourteenth Central
Committee of the Communist Party of China concerning the step-be-step
reform of small township census register control system, granting peasants
access to small towns for jobs and businesses and the development of the
tertiary industry in rural areas to promote the transfer of rural surplus
labor power, reform of the census register control system should be
carried out at the appropriate moment by permitting the rural population
already employed, living in small towns and meeting certain qualifications
to complete formalities of census register for permanent residence in small
towns so as to promote the transfer of rural surplus labor power to small
towns nearby in an orderly way, promote all-round development of the small
towns and rural areas and maintain social stability. Meanwhile, mechanical
growth in population in big and medium-size cities especially in such
megalopolis as Beijing, Tianjin and Shanghai should continue to be kept
under rigorous control.

II.Scope of Implementation for Small Township Census Register Control
System Reform

To ensure that the reform of small township census register control
system proceed in a positive, reliable and orderly way and in steps, the
scope of reform shall be limited in built areas of urban districts of counties(county-level municipalities) and built areas of organic
townships.
Within this scope, People’s Governments of the provinces, autonomous regions
and municipalities directly under the Central Government shall, on the basis
of sorting out and consolidation of the small towns which have already
carried out census register control system reform, select a few small towns
with higher level of socio-economic development, surpluses in finance,
a better foundation in urban and township infrastructure which are
representative in the localities to carry out a two-year experiment in
census register control system reform in advance, thereafter, the reform
shall be extended in phases and batches on the basis of summarization of experiences. The number of small towns making experiments
to be determined
by every province, autonomous region and municipality directly under the
Central Government shall not exceed the following: the western regions 10;
the central regions 15; and the eastern regions 20. Local People’s Governments
below the provincial level have no power to determine or expand the scope of
experiment. Organic towns with no budget set-up or organic townships in poor
counties enjoying grants-in-aid from the state finance shall temporarily not
carry out small township census register control system reform pending the
maturing of conditions for budget set-up or termination of grants-in-aid from
the state finance; those carrying out the reform should suspend the same as of the date of implementation of this Scheme.

III.Eliigibilities for Applying for Permanent Urban and Township
Residence in Small Towns

The following members of rural households who already have legitimate
and stable non-agricultural occupations or stable sources of livelihood in
small towns, and moreover have resided for two years upon obtaining
legitimate and fixed residences, can apply for permanent urban and township
residence:

(1)members going in for jobs in small towns from rural areas or running
secondary and tertiary industries;

(2)managing staff and specialized technical personnel employed by
organizations, societies, enterprises and institutions in small towns;

(3)inhabitants having purchased commercial residential quarters
or having legitimate self-constructed houses in small towns.

Lineal relatives in cohabitation with the afore-said members can shift
along with them and apply for permanent urban and township residence.

Foreign businessmen, overseas Chinese and compatriots from Hong Kong and
Macau and compatriots from Taiwan with investment in establishment of enterprises in small towns and purchases of commercial residences
in
small towns upon approval or having legitimate self-constructed houses,
if they so desire, can apply, on behalf of their relatives on the mainland
they are going to look after to settle down in small towns, for permanent
urban and township residence.

Peasants residing within the boundaries of small towns whose land has
been requisitioned and are in need of settlement according to law can apply
for permanent urban and township residence.

Those members who have settled down in small towns upon approval, their
contracted land and private plots in rural areas shall be withdrawn by the
rural economic organizations or villagers’ committee of the localities
wherein they previously resided and go through the formalities of residence
registration in small towns on presentation of certificates of withdrawal
of the contracted land and private plots.

IV.Enhancing Macro Regulation and Control of the Aggregate of Small
Township Population

Small township census register control system reform, both component
part of the reform of the whole census register control system and important
content of the comprehensive reform of small towns, must be commesurate
with reform in other fields. Local People’s Governments concerned at all
levels should integrate population growth of small towns carrying out
census register control system reform into local national socio-economic
development plans and in the light of the requirements of small township
socio-economic development and their overall bearability, enhance macro
regulation and control of the aggregate of small township population to
ensure coordinated development of agricultural production, small township
economic construction and building of infrastructure, employment and
social security as well as all kinds of non-profit undertakings and population
growth and guard against impractically “rushing headlong into action”,
blindly expanding the size of small towns, thus resulting in the “getting-
into-town fever”, “township-building fever” or occuaption of large tracts
of cultivated land weakening the foundation of agriculture. To this end,
People’s Governments of the provinces, autonomous regions and municipalities
directly under the Central Government must step up scrutiny of the mid- and
long-term plans of the mechnical growth of population submitted by county
(municipal) People’s Governments concerned and enhance supervision and
inspection of the implementation of the scrutinized plans. County(municipal)
People’s Governments concerned must put forth suggestions for the
implementation of this Scheme of their respective localities to be
submitted to People’s Governments of the provinces, autonomous regions and
municipalities directly under the Central Government for scrutiny and
approval and organizational work for implementation thereafter.

Target control shall be exercised over rural population in small towns
undergoing experiments applying for permanent urban and township residence.
The targets will be issued separately by the State Planning Commission in
consultation with the Ministry of Finance, the Ministry of Public Security
and the Ministry of Agriculture.

V.Toughening the Procedures of Examination and Approval for Applications
for Residence in Small Towns

Public security organs must, within the targets for rural population
in small towns applying for permenent urban and township residence, uniformly
exercise the power of examination and approval in strict accordance with
the eligibilities for applications for permanent urban and township
residence prescribed in this Scheme. Persons requesting to settle down
in small towns must submit applications in person to household registration
organs of the localities of resettlement on presentation of relevant
materials of certification; household registration organs of the localities
of resettlement must exercise strict scrutiny and submit those applications
which have been confirmed to meet the eligibilities to county(municipal)
public security organs for examination and approval. Public security organs
must earnestly shoulder their responsibilities in rigorously enforcing the
conditions in scrutiny, and those applications not in compilance with the
eligibilities for resettlement in small towns shall not be processed.

VI.Persons Resettled in Small Towns Shall Enjoy Equal Treatment of the Original Inhabitants of the Localities

Persons resettled in small towns upon approval enjoy equal treatment
of the original inhabitants of the localities. People’s Governments of the
localities and the departments and units concerned should give them equal
treatment in admissions to schools, employment, food and edible oil supply
and social security as they treat original inhabitants of the localities.

VII.No Additional Urban Accomodation Fee shall be Collected from
Persons Resettled in Small Towns, Nor Shall the Fee be Collected in
Disguised Form

All localities and departments must not collect additional urban
accomodation fee or other fees similar to additional urban accomodation
fee from persons resettled in small towns. Localities still collecting
additional accomodation fee according to local provisions now must all
terminate the collection as of the date of issuance of this Scheme;
the additional accomodation fee already collected shall be integrated
into financial budget control in full and there shall be no refund;
in the meantime, conscientious ideological work should be done among
the masses.

VIII.Strengthening leadership to Ensure the Smooth Implementation
of the Small township Census Register Control System Reform

Small township census register control system reform involves many
aspects, is highly policy-oriented and concerns the practical interests
of the masses, local People’s Governments at all levels must strengthen
leadership, earnestly shoulder their responsibilites, keep themselves
abreast of the relevant information in time and keep an eye on coordination
in the resolution of problems encountered in the work to ensure smooth and
stable progress of the reform. All regions must not formulate local policies
inconsistent with this Scheme on their own.

Public security organs at all levels must strictly abide by the rules
for scrutiny and approval, improve service attitude and enhance coordination
and cooperation with the departments concerned; must step up building of honest and clean administration and formulate corresponding
measures of supervision and inspection to guard against incorrect style of work and
corrupt acts. Acts of scrutiny and approval of permanent urban and township
residence in contravention of the provisions, seeking and accepting bribes
while processing applications for permanent urban and township residence
as well as practising fraud and indulging in malpractices for selfish ends
must be investigated of the administrative responsibilites of the leaders-
in-charge and the persons directly responsible according to law; where
the offences constitute a crime, criminal liabilities shall be investigated
according to law. Applicants who untruthfully declare relevant information
and materials and obtain permanent urban and township residence by cheating
shall, once verified, be decalred null and void; those who wilfully make
trouble or make trouble by taking advantage of the situation shall be
meted out administrative penalties; those whose offences constitute a
crime, criminal liabilities shall be investigated according to law.

The Ministry of Public Security shall be responsible for the interpre-
tation of the related questions in the implementation of this Scheme.
All regions should report to the Ministry of Public Security in time on
questions discovered in the implementation of this Scheme.
APPENDIX II.SUGGESTIONS ON THE PERFECTION OF RURAL CNESUS REGISTER
CONTROL SYSTEM(Ministry of Public Security May 20, 1997)

Since long, administration of rural census regiter has been
relatively weak. Their organs have been imperfect in many localities
with no specialized staff in control. Census register system has not
been strict with problems like no report of births and no writing off
of deaths quite outstanding and there have even been phenomena of loss of control in population in some localities. This has led
to imprecise data
on population statistics adversely affecting the provision with precise
basis to the government in the formualtion of national socio-economic
development plan, neither is it conducive to the efficient administration
of the government. Measures must be taken to perfect the system. To this
end, the following suggestions are put forward:

I.Target and Requirements for the Perfection of Rural Census Register
Control System

Perfection of rural census register control system constitutes an
important basic work of the State. Urban and rural census register control
systems must be unified, rural census register control system must be
smoothed, strict control must be exercised and the means of control
improved, gradually realizing systemization, standardization and
modernization of rural census register control to promote rural economic
development and maintain social stability. All regions should, under the
leadership of the provincial People’s Governments, proceed from the actual
conditions, carry out this work in an organized way and in steps, seize
the time in completing the making and issuing of registration forms for
permanent residents, permanent residence booklets for inhabitants and
house number plates, gradually establish sound census register control
organs in rural areas throughout the country, basically unify urban
and rural census register control systems by the end of the century and
earnestly change the status under which there has been weaknesses in
rural census register control.

II.Establishment of Sound Systems for All Items of Census Register Control

Comprehensive sound register control system for such items as permanet
residence, temporary residence, birth, death, moving out, moving in, change
and correction should be established in rural areas and comprehensive
implementation of application, change and supplement for obtaining identity
cards for inhabitants shall take effect and inspection and verification
should be stepped up and in the meantime such control systems as
investigation, notification, statistics, archives and compilation and
making of house number plates should be established and perfected.

The provision of permanent residence registration by citizens at the
place of permanent domicile shall be strictly observed, a permanent
residence registration form shall be filed for every citizen whose
permanent residence has been registered and permanent residence booklets
for inhabitants made and issued to every family.

Birth registration of new-born infants shall be stepped up. For new-born
infants including those born outside planned parenthood, non-marital births
as well as abandoned infants, their custodians must, in accordance with the
relevant provisions of census register control, declare and apply for
birth registration. A new-born infant can enter into registration for
permanent residence either with the mother or with the father.

Compilation, manufacture and control of house(multi-storey building)
number plates which is an important component part of exercise of census
register control by public security organs must be handled well and
conscientiously. Rules for the creation, numbering, manufacture, fixing
and administration of house(multi-storey building) number plates should be
formulated and perfected, house(multi-storey building) number plates should
be uniformly compiled, manufactured and fixed for residents and regular
administration shall be enhanced, gradually achieving scientific management
and standardization in the compilation and manufacture of house(multi-
storey building) number plates.

III.Establishment and Perfection of Census Register Control Organs,
Strengthening Census Register Control Ranks

Public security organs of all localities must, in accordance with the
principle of “one police substation in one village(township)”, establish
and perfect step by step village(township) police substations during the
“Nineth Five-year Plan” and “Tenth Five-year Plan” periods of the country,
equip them with corresponding police force and earnestly enhance rural
census register control. Villages(townships) with no police substations
at present can first establish temporary organs to take charge of census
register control of their respective villages(townships), their persons-in-
charge shall be members of the people’s police(the organizational problem
will be settled separately), other staff members will be settled through
adjustments in existing functionaries of the village(township) People’s
Governments. Villagers'(neighborhood) committees should have full-time or
part-time census coordinators to assist the census registration organs in
successfully doing the work of census register control under their
respective jurisdictions.

IV.Strengthening Leadership and Enforcing Rigorous Implementation

Perfection of rural census register control system which involves many
aspects and a heavy work load is a stupendous and complex work. People’s
Governments of all regions must attache great importance to it, strengthen
leadership and work out specific plans for implementation in pursuance of these Suggestions and in the light of actual conditions
and conscientiously
carry out organizational work for their implementation; they should conduct
effective publicity and education to gain the understanding and support of the masses; ways should be found in real earnest for expenses
required for
the perfection of rural census register control system and improvement in
the means of control. Public security organs above the prefecture
(municipality) should step up inspection and guidance, resolve the problems
encountered in the work in time and do a good job in acceptance checks.
Census register control organs must step up the building of honest and clean
administration, strictly abide by the relevant provisions of the State
and collection of indiscrimate charges in addition to the cost fee shall
be strictly prohibited. Violators shall be investigated of their liabilities.

Information on the implementation of this work shall be consolidated by
provincial public security organs and reported to the Ministry of Public
Security.

URGENT CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING IMMEDIATE TERMINATION OF UNAUTHORIZED LOCAL EXAMINATION AND APPROVAL OF COMMERCIAL ENTERPRISES WITH FOREIGN INVESTMENT

The General Office of the State Council

Urgent Circular of the General Office of the State Council Concerning Immediate Termination of Unauthorized Local Examination and
Approval of Commercial Enterprises with Foreign Investment

GuoBanFaMingDian [1997] No.15

May 4, 1997

People’s governments of all provinces, autonomous regions and municipalities directly under the Central Government, all ministries,
commissions and directly subordinate institutions of the State Council:

Since the decision of the State Council in July 1992 to set up Chinese-foreign equity joint ventures and Chinese-foreign contractual
commercial retailers on a pilot basis, the work has been progressing smoothly and has exerted positive effects on the reform and
development of Chinese commercial enterprises. However, some local governments, disregarding the provisions of the State Council,
approved and opened some commercial enterprises with foreign investment without authorization, which resulted in disorderly administration
on the examination and approval of commercial projects foreign investment, disoriented development and mode of cooperation inconsistent
with the state policies, etc. And it further brought confusion to and negative impact on the pilot work of foreign capital utilization
in the commercial sector. As agreed upon by the State Council, to safeguard the uniformity and solemnity of the state policies and
to ensure further and sounder development of the pilot work in Chinese commercial sector in an orderly manner, the urgent notification
is hereby given as follows:

Foreign capital utilization in the commercial sector is still at the pilot stage, the scope, number and the examination and approval
of the pilot projects should still comply with the Reply of the State Council Concerning Foreign Capital Utilization in the Commercial
Retailing Industry (GuoHan [1992] No.82). The State Council reiterates that the authority for the examination and approval of commercial
enterprises with foreign investment belongs to the State council.

As of the issuing date of this circular, local governments at all levels should immediately terminate the practice of negotiating
with commercial enterprises with foreign investment and conducting unauthorized examination and approval. Those that are in the process
of examination and approval should cancel all ongoing procedures immediately. Those that are currently negotiating with foreign inventors
should terminate the negotiation immediately. Without the approval of the State council, no administration of industry and commerce
at any levels should conduct registration procedures for commercial enterprises with foreign investment.

The State Council has decided to conduct an overall review and rectification of commercial enterprises with foreign investment approved
by local governments without authorization and those established locally in other ways. The specific measures hereof will be announced
separately.

Local governments at all levels should strengthen their guidance and administration on foreign capital utilization in the commercial
sector. Any new commercial enterprise with foreign investment is found to be established without the approval the State Council will
be shut down and the involved government officials will be affixed due legal liability.

The General Office of the State Council
1997-05-04

NATIONAL DEFENCE

Category	NATIONAL DEFENCE	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1997-03-14	Effective Date	1997-03-14

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

Contents
Chapter I  General Provisions
Chapter II  National Defence Functions and Powers of State Organs
Chapter III  Armed Forces
Chapter IV  Frontier Defence, Coast Defence and Air Defence
Chapter V  Scientific Research and Production of National Defence and
Chapter VI  Funds and Assets of National Defence
Chapter VII  National Defence Education
Chapter VIII  National Defence Mobilization and War State
Chapter IX  National Defence Obligations and Rights of Citizens and
Chapter X  Obligations, Rights and Interests of Servicemen
Chapter XI  Foreign Military Relations
Chapter XII  Supplementary Provisions

(Adopted at the Fifth Session of the Eighth National People’s Congress on

March 14, 1997, and promulgated by Order No. 84 of the President of the
People’s Republic of China on March 14, 1997)
Contents

Chapter I General Provisions

Chapter II National Defence Functions and Powers of State Organs

Chapter III Armed Forces

Chapter IV Frontier Defence, Coast Defence and Air Defence

Chapter V Scientific Research and Production of National Defence and

Order for Military Materials

Chapter VI Funds and Assets of National Defence

Chapter VII National Defence Education

Chapter VIII National Defence Mobilization and War-state

Chapter IX National Defence Obligations and Rights of Citizens and

Organizations

Chapter X Obligations, rights and Interests of Serviceman

Chapter XI Foreign Military Relations

Chapter XII Supplementary Provisions
Chapter I General Provisions

Article 1 This Law is formulated in accordance with the Constitution
with a view to establishing and strengthening national defence, and to
guaranteeing the smooth development of the construction of our socialist
modernization.

Article 2 This Law is applicable to military activities our country takes
to guard against and resist aggression, prevent military subversion, safeguard
the sovereignty, unification, territorial integrity and security of our
county, as well as activities in such fields as politics, economy,
diplomacy, science and technology and education that concern military affairs.

Article 3 National defence is the security guarantee of the survival and
development of our country.

The state shall strengthen the construction of military strength, the
construction of frontier defence, coast defence and air defence, develop the
scientific research and production of national defence, spread national
defence education among all the people, improve mobilization system, and
realize the modernization of national defence.

Article 4 The state shall establish and strengthen national defence
independently, with the initiative in our own hands and through our own
efforts, take an active defence strategy and adhere to the principle of
general self-defence.

While concentrating its energy to carry out economic construction, the
state shall strengthen the national defence construction, promote the
harmonious development of national defence construction and economic
construction.

Article 5 The state takes unified leadership over national defence
activities.

Article 6 It is a sacred duty for every citizen of the People’s
Republic of China to defend our motherland and resist aggression.

Every citizen of the People’s Republic of China shall fulfil according
to law his national defence obligation.

Article 7 The state and society hold respect for and give preferential
treatment to Servicemen, protect their legal rights and interests, and develop
various kinds of activities to support the army and give preferential
treatment to the families of the Servicemen and martyrs.

The Chinese People’s Liberation Army and the Chinese People’s Armed Police
Forces shall develop activities of supporting the government and cherishing
the people in order to strengthen unity between the army and the government
and between the army and the people.

Article 8 The People’s Republic of China maintains world peace and fights
against any activities of aggression and expansion in the foreign military
relations.

Article 9 The state and society take various forms to give commendation
and reward to organizations and personnel that have made contribution to
national defence activities.

Those that violate this Law and any law connected, refuse to fulfil
national defence obligations or jeopardize national defence interests shall be
investigated for legal responsibility.
Chapter II National Defence Functions and Powers of State Organs

Article 10 The National People’s Congress decides according to the
stipulations of the Constitution the issue of peace or war, and exercises
other functions and powers in the aspect of national defence stipulated by the
Constitution.

The Standing Committee of the National People’s Congress decides according
to the stipulations of the Constitution the declaration of war state, decides
a general mobilization or a partial mobilization, and exercises other
functions and powers in the aspect of national defence provided by the
Constitution.

Article 11 The President of the People’s Republic of China declares war
state and issues mobilization orders according to the decision of the National
People’s Congress or the Standing Committee of the National People’s Congress,
and exercises other functions and powers in the aspect of national defence
stipulated by the Constitution.

Article 12 The State Council leads and governs the course of national
defence construction, and exercises the following functions and powers:

(1) to compose and make programmes and plans for national defence
construction development;

(2) to formulate principles, policies and administrative regulations in
the aspect of national defence construction;

(3) to lead and take charge of scientific research and production of
national defence;

(4) to govern national defence funds and national defence assets;

(5) to lead and govern the work of national economic mobilization, the
people’s armed mobilization, and work concerned in the aspects of people’s air
defence, national defence traffic, etc.;

(6) to lead and take charge of the work of supporting the army and giving
preferential treatment to families of Servicemen and martyrs, and the work of
settling Servicemen out of active service;

(7) to direct the work of national defence education;

(8) to lead together with the Central Military Commission the work of
governing the construction and conscription of the Chinese People’s Armed
Police Forces and the militia, as well as the work of reserve duty, frontier
defence, coast defence and air defence; and

(9) other functions and powers stipulated by law that concern with the
course of national defence construction.

Article 13 The Central Military Commission leads all armed forces of the
state, and exercises the following functions and powers:

(1) to direct uniformly all armed forces of the state;

(2) to decide the military strategy and operational policies of the armed
forces;

(3) to lead and govern the construction of the Chinese People’s Liberation
Army, formulate programmes and plans, and organize the implementation;

(4) to submit motions to the National People’s Congress or the Standing
Committee of the National People’s Congress;

(5) to formulate military regulations, issue decisions and orders in
accordance with the Constitution and laws;

(6) to decide the system and establishment of the Chinese People’s
Liberation Army, stipulate the task and responsibility of headquarters,
military area commands, services and other units at the level of military area
command;

(7) to appoint and remove, train, examine, reward and punish members of
military forces according to the provisions of laws and military regulations;

(8) to ratify weaponry systems and weaponry development programmes and
plans of the armed forces, lead and supervise scientific research and
production of national defence together with the State Council;

(9) to supervise national defence funds and assets along with the State
Council; and

(10) other functions and powers stipulated in law.

Article 14 The State Council and the Central Military Commission may
convene coordination meetings according to circumstances to solve problems
connected with national defence affairs. The implementation of issues
negotiated and decided at the meetings shall be organized by the State Council
and the Central Military Commission in their respective scope of authority.

Article 15 Local people’s congresses at various levels and standing
committees of local people’s congresses at or above the county level shall
guarantee in their administrative divisions that laws and regulations
connected with national defence are obeyed and implemented.

Local people’s governments at various levels shall supervise according to
limits of authority stipulated by law the work of conscription, militia,
reserve service, national defence education, national economic mobilization,
people’s air defence, national defence traffic, protection of national defence
installations, settlement of Servicemen out of active service, supporting the
army and giving preferential treatment to families of Servicemen and martyrs
in their administrative divisions.

Article 16 Local people’s governments at various levels and station
military organs shall convene according to needs joint meetings of local
authority and army to coordinate and solve problems connected with
national defence affair in their administrative divisions.

The joint meeting of local authority and army shall be convened by the
people in charge of local people’s government along with the people in charge
of station military organ. The participants of the joint meetings of local
authority and army shall be decided by the conveners of the meetings.

Items negotiated and decided at the joint meetings of local authority and
army shall be handled by local people’s governments and station military
organs according to their respective limits of authority, and matters of great
importance shall be reported to their respective higher level.
Chapter III Armed Forces

Article 17 The armed forces of the People’s Republic of China belong to
the people, whose task is to strengthen national defence, resist aggression,
defend the state, safeguard the people’s peaceful work, attend the course of
national construction and serve the people wholeheartedly.

Article 18 The armed forces of the People’s Republic of China must comply
with the Constitution and laws, adhere to the principle of directing troops
in accordance with law.

Article 19 The armed forces of the People’s Republic of China are led by
the Communist Party of China. Organizations of the Communist Party of China
in the armed forces shall develop activities according to the Charter of the
Communist Party of China.

Article 20 The state strengthens the construction of the armed forces’
revolutionization, modernization and normalization, strengthen national
defence.

Article 21 The armed forces of the People’s Republic of China shall meet
the needs of modern war, strengthen military drill, develop political work,
improve safeguard level and heighten combat effectiveness comprehensively.

Article 22 The armed forces of the People’s Republic of China are
composed of troops of the Chinese People’s Liberation Army on active service
and reserve service, the Chinese People’s Armed Police Forces and militia.

The troops of the Chinese People’s Liberation Army on active service are
the standing army of the state, whose main task is to defend and combat, and
who may assist in maintaining public order according to law when necessary.
The troops on reserve service shall conduct drilling at ordinary times
according to regulations, and may assist in maintaining public order in
accordance with law when necessary, and shall transform into troops on active
service at wartime according to mobilization orders issued by the state.

The Chinese People’s Armed Police Forces shall shoulder the task of
safeguard and maintaining public order that is assigned by the state under the
leadership and direction of the State Council and the Central Military
Commission.

The militia shall, under the direction of military organs, shoulder the
task of combat readiness and services, defence and combat, and shall assist in
maintaining public order.

Article 23 The scale of the armed forces of the People’s Republic of
China shall meet the needs of defending the state’s security and interests.

Article 24 The military service of the People’s Republic of China is
divided into active service and reserve service. The service system of
Servicemen on active service and people on reserve service is set by law.

The state conducts a rank system on Servicemen on active service and
people on reserve service in accordance with stipulations of law.

Article 25 The state forbids illegal military organizations established
by any organization or individual, forbids illegal military activities, and
forbids pretence to be servicemen on active service or military organization.
Chapter IV Frontier Defence, Coast Defence and Air Defence

Article 26 The territorial lands, interior waters, territorial sea and
territorial sky of the People’s Republic of China are sacred and cannot be
violated. The state strengthens the construction of frontier defence, coast
defence and air defence, takes effective measures of defence and supervision
to protect the security of territorial lands, interior waters, territorial
sea and territorial sky, and to maintain the rights and interests of the
state’s oceans.

Article 27 The Central Military Commission leads uniformly the work of
frontier defence, coast defence and air defence.

Local people’s governments at various levels, relevant departments under
the State Council and relative military organs shall, according to the extent
of authority stipulated by the state, divide the responsibility among
themselves to take charge of the supervision and defence of frontier defence,
coast defence and air defence, and make joint effort to maintain national
security and interests.

Article 28 The state constructs national defence installations of combat,
direction, communication, protection, traffic and security according to the
needs of frontier defence, coast defence and air defence. People’s governments
at various levels and military organs shall, according to the provisions of
laws and stipulations, guarantee the construction of national defence
installations and safeguard national defence installations.
Chapter V Scientific Research and Production of National Defence and
Order for Military Materials

Article 29 The state establishes and improves the scientific and
technical industry system of national defence, develops scientific research
and production of national defence, and provides the armed forces with weapons
and equipment advanced in function, reliable in quality, complete in equipment
set and convenient to manipulate and maintain as well as other useable
military materials to meet the needs of national defence.

Article 30 The scientific and technical industry of national defence
follows the principle of combining the army with the people, peace with war,
giving priority to military goods and the people supporting army.

The state makes overall plans and programmes for the scientific and
technical industry construction of national defence and maintains the
productive capability of scientific research for national defence on a
reasonable scale and with a complete set of specialities and rational
distribution.

Article 31 The state promotes progress in science and technology of
national defence, strengthens research in high and new technology, gives play
to high and new technology’s leading role in the development of weapons and
equipment, extends technical reserve store, and researches and produces new
weapons and equipment.

Article 32 The state performs uniform leadership, planned regulation and
control in scientific research and production of national defence.

The state provides necessary guarantee conditions and preferential
policies for enterprises and institutes bearing the responsibility of
scientific research and production of national defence. Local people’s
governments at various levels shall provide assistance and support to
enterprises and institutes bearing the responsibilities of scientific research
and production for national defence.

Enterprises and institutes bearing the responsibilities of scientific
research and production of national defence shall accomplish the task of
scientific research and production for national defence, and guarantee the
quality of weapons and equipment.

Article 33 The state takes necessary measures to train and bring up
qualified personal of national defence science and technology, to create
favorable circumstances and conditions and to allow full play to their action.

Science and technology personnel of national defence shall be respected by
the whole society. The state shall improve gradually the treatment of science
and technology personnel of national defence and protect their legal rights
and interests.

Article 34 The state, in accordance with needs of national defence and
requirements of the socialist market economy, employs a system of order for
military goods to guarantee the purchase and supply of weapons and equipment
and other military materials.
Chapter VI Funds and Assets of National Defence

Article 35 The state guarantees necessary funds for national defence. The
increase in the funds of national defence shall suit the needs of national
defence and the standard of national economy’s development.

Article 36 The state adopts a system of financial allocation in the funds
of national defence.

Article 37 Assets of national defence include capital directly invested,
lands and other resources allocated for use by the state for the construction
of armed forces, scientific research and production of national defence and
other defence construction, as well as weapons and equipment, installations
and facilities, materials and apparatuses and technical achievements formed in
this way for purpose of national defence.

Assets of national defence belong to the state.

Article 38 According to the requirements of national defence construction
and economic construction, the state decides the scale, structure and
distribution of assets of national defence, adjusts and handles assets of
national defence.

Supervising organs and units that possess and utilize assets of national
defence shall run according to law assets of national defence, and make full
use of assets of national defence.

Article 39 The state protects assets of national defence against inroad
and damage, guarantees their security, integrity and validity.

No organization or individual is permitted to damage, wreck or seize
assets of national defence. Without ratification from the State Council, the
Central Military Commission or organs authorized by the State Council or by
the Central Military Commission, units that possess and utilize assets of
national defence shall not change the assets’ purpose for national defence.
Assets of national defence that have been ratified not to be used in national
defence any more shall be supervised according to law.
Chapter VII National Defence Education

Article 40 The state helps citizens through national defence education
enhance the sense of national defence, grasp national defence knowledge,
develop the spirit of patriotism and fulfill the obligation of national
defence at their own free will.

It is a responsibility of the whole society to popularize and strengthen
national defence education.

Article 41 National defence education follows the principle of
participation of all the people, long-term persistence and laying stress on
practical results, and carries out a policy of combining regular education
with concentrated education, universal education with key education, and
theoretical education with behaviour education.

Article 42 The State Council, the Central Military Commission, people’s
governments at the level of province, autonomous region and municipality
directly under the Central Government and relevant military organs shall take
steps to strengthen the work of national defence education.

All state organs and armed forces, all political parties and social
organizations, all enterprises and institutes shall organize their regions,
departments and units to carry out national defence education.

National defence education in school is the foundation of national
defence education of the entire people. Schools at various levels and of
various kinds shall offer proper courses of national defence education,
or add subject of national defence education to relevant courses. Military
organs shall assist schools in developing national defence education.

Departments and units of education, culture, press, publication,
broadcast, film and television shall act in close coordination to develop
national defence education in various forms.

Article 43 People’s governments at various levels shall bring national
defence education into line with national economic and social development
plan, and guarantee the funds needed in national defence education.
Chapter VIII National Defence Mobilization and War State

Article 44 In case the People’s Republic of China’s sovereignty,
unification, territorial integrity or security is threatened, the state starts
national mobilization or partial mobilization in accordance with the
provisions of the Constitution and laws.

Article 45 The state prepares for the mobilization in peaceful period,
brings the preparation for people’s armed forces mobilization, national
economic mobilization, and mobilization for people’s air defence, national
defence traffic and etc. into line with the state’s overall plan and
programme, perfects the mobilization system, heightens mobilization
potentiality and improves mobilization capability.

Article 46 The state establishes a system of strategic materials reserve.
The strategic materials reserve shall be on a proper scale, kept in security,
convenient to transfer, changed regularly and can guarantee the requirements
during war period.

Article 47 The State Council and the Central Military Commission shall
lead in conjunction the preparation and implementation of mobilization.

All state organs and armed forces, all political parties and social
organizations, all enterprises and institutions and citizens must complete
the work of mobilization preparation according to stipulations of law during
peaceful period, and must accomplish the mobilization task stipulated after
the mobilization order bas been issued by the state.

Article 48 According to needs in mobilization, the state may take over
for use in accordance with law equipment and facilities, means of
transportation and other materials of organizations and individuals.

People’s governments at or above the county level shall make proper
compensation to the requisitionees according to relevant stipulations of
the state for economic losses directly resulting from the requisition.

Article 49 The state declares war state according to the stipulations of
the Constitution, takes various measures to amass manpower, materials and
funds, leads all citizens to defend our country and resist aggression.
Chapter IX National Defence Obligations and Rights of Citizens and
Organizations

Article 50 It is an honorable obligation of citizens of the People’s
Republic of China to enlist in the army and join in the militia according to
law.

Drafting institutes at various levels and people’s military organs at
basic level shall handle the conscription work according to law, fulfill the
drafting task according to the command of the State Council and the Central
Military Commission, and guarantee the quality of troops’ sources. Other
relevant state organs, social organizations, enterprises and institutions
shall fulfil according to law the work of militia and reserve duty, and
assist conscription institutes in fulfilling the drafting task.

Article 51 Enterprises and institutions shall shoulder according to the
state’s requirement the task of scientific research and production for
national defence, accept the state’s orders for military goods, and provide
qualified weapons and equipment or other military materials.

Enterprises and institutions shall according to the state’s stipulations
implement the national defence’s requirement in traffic construction. Units
in charge of traffic installation such as stations, ports, airports and roads
shall provide preceded service for the passage of Servicemen on active
service, military vehicles and ships, and offer preferential treatment in
accordance with stipulations.

Article 52 Citizens shall receive national defence education.

Citizens and organizations shall protect national defence facilities, and
are forbidden to damage or do harm to national defence installations.

Citizens and organizations shall abide by stipulations of protecting
secrets, shall not reveal the state’s secrets about national defence, shall
not possess illegally classified documents, papers or other classified
articles about national defence.

Article 53 Citizens and organizations shall support national defence
construction, and provide facilities or other assistance for such activities
of military forces as military drill, combat readiness service and defending

REGULATIONS ON INSPECTION CONDUCTED BY THE CUSTOMS

Category CUSTOMS Organ of Promulgation The State Council Status of Effect In Force

Date of Promulgation 1997-01-03 Effective Date 1997-01-03

Regulations of the People’s Republic of China on Inspection Conducted by the Customs

Chapter 1  General provisions
Chapter 2  Control over Accounting Books, Documents and Other Relevant
Chapter 3  Implementation of the Inspection Conducted by the Customs
Chapter 4  Handling of the Inspection Conducted by the Customs
Chapter 5  Legal Responsibility
Chapter 6  Supplementary Provisions

(Promulgated by Decree No.209 of the State Council of the People’s

Republic of China on January 3, 1997)
Chapter 1  General provisions

    Article 1  These Regulations are formulated with a view to establishing
and perfecting the system of inspection conducted by the Customs,
strengthening the Customs’ supervision and administration, maintaining the
normal order of import and export and the legitimate rights and interests of
the parties concerned, ensuring the tax revenue of the State, promoting the
development of foreign trade.

    Article 2  “Inspection conducted by the Customs” as referred to in these
Regulations means that the Customs exercises inspection, within 3 years from
the date of the release of the import or export goods or during the time of
the Customs’ control, over the bonded goods, the import goods and articles
for which duties reduction or exemption is granted, the accounting books,
vouchers for the accounts, the Customs declaration documents and other
relevant materials (hereinafter referred to as accounting books, documents
and other relevant materials) and relevant import and export goods of the
persons under inspection, and supervises the authenticity and legality of
the import and export acts of the persons under inspection.

    Article 3  The Customs shall exercise inspection over the following
enterprises and units involved directly in import and export acts:

    1. The enterprises and units engaged in foreign trade;

    2. The enterprises engaged in foreign processing business;

    3. The enterprises engaged in bonded business;

    4. The enterprises engaged in utilizing or managing import goods with
Customs duties reduced or exempted;

    5. The enterprises engaged in declaration to the Customs;

    6. The other enterprises and units involved directly in import and
export acts, and stipulated by the General Customs Administration.

    Article 4  The Customs and the Customs personnel shall, when performing
their inspection duties, be objective and fair, be practical and realistic,
be honest in duties, keep the commercial secrets of the persons under
inspection, and shall not encroach on the legitimate rights and interests
of the persons under inspection.
Chapter 2  Control over Accounting Books, Documents and Other Relevant
Materials

    Article 5  Accounting books, accounting vouchers, accounting statements
and other accounting materials set and drawn up by enterprises and units
involved directly in import and export acts shall record and reflect
honestly, precisely and completely the conditions of import and export
business.

    Article 6  Enterprises and units involved directly in import and export
acts shall keep their accounting books, accounting vouchers, accounting
statements and other accounting materials according to the time limit set
in relevant laws or administrative regulations.

    The documents of declaration to the Customs, the documents of import and
export, the contracts and other materials relating directly to import and
export acts shall, from the date of the release of the import and export
goods, be kept for 3 years.

    Article 7  Where enterprises and units involved directly in import and
export acts have sound accounting systems, and are able to keep accounts and
carry out business accounts by means of computer properly and completely,
their accounting records stored in and put out of the computer shall be
regarded equivalent to accounting materials,but the materials shall be
printed into written records and kept completely in accordance with the
provisions of these Regulations.

    Article 8  Enterprises and units involved directly in import and export
acts shall, at the Customs’ request, file the materials relating to the
purchase, sale, processing, utilization, expenditure and storage of the
import and export goods.
Chapter 3  Implementation of the Inspection Conducted by the Customs

    Article 9  The Customs shall, according to the need of the Customs’
control work and the actual circumstances of import or export enterprises,
units, and import or export goods, determine the focal point of the
inspection, and make annul work plan of the inspection.

    Article 10  The Customs shall, when conducting inspection, notify in
writting the enterprises and units under inspection (hereinafter referred
to as the persons under inspection) 3 days before the implementation of the
inspection.

    Article 11  The Customs shall, when conducting inspection, form an
inspection group. The member of the inspection group shall not be less than
two persons.

    Article 12  When the Customs conducts inspection, the Customs personnel
shall produce their Customs inspection certificates.

    The Customs inspection certificates shall be made and issued uniformly
by the General Customs Administration.

    Article 13  When the Customs conducts inspection, any Customs personnel
having directly interested relationship with the persons under inspection
shall withdraw.

    Article 14  The Customs may, when conducting inspection, exercise the
following powers:

    1. To examine and to copy the accounting books,documents and other
relevant materials of the persons under inspection;

    2. To enter into the places where the persons under inspection are
engaged in production and business operation and the places for storage of
goods, and to examine production and business operation concerning import and
export acts and the goods;

    3. To make inquiries of the legal representatives, chief personnel in
charge and other people of the persons under inspection regarding particulars
and issues relevant to the import and export acts;

    4. Upon approval of the director of the Customs establishment, to examine
the deposit accounts that the persons under inspection have opened with the
commercial banks or other financial institutes.

    Article 15  Where it discovers, when conducting inspection, that the
persons under inspection are liable to transfer, conceal, alter or destroy
the accounting books, documents and other relevant materials, the Customs
may, upon approval of the director of the Customs establishment, seal up
temporarily the accounting books, documents and other relevant materials.
Where such measures are taken, the normal production and business operation
acts shall not be interfered with.

    Where the truth has been found out, or the proof has been obtained, the
Customs shall remove immediately the seal on the accounting books, documents
and other relevant materials.

    Article 16  Where it discovers, when conducting inspection, that the
persons under inspection are suspected of violating the provisions of the
Customs Law or other relevant administrative regulations, the Customs may,
upon approval of the director of the Customs establishment, seal up the
import and export goods concerned.

    Article 17  The persons under inspection shall assist the Customs in
inspection work, and provide necessary work conditions.

    Article 18  The persons under inspection shall subject themselves to the
inspection conducted by the Customs, report the particulars truthfully,
provide accounting books, documents and other relevant materials, and shall
not refuse or postpone to be inspected or, conceal any facts.

    Where they use computers to keep accounts, the persons under inspection
shall provide the Customs with accounting soft wares, directions for use, and
relevant materials.

    Article 19  Where the Customs examines or makes copies of accounting
books, documents and other relevant materials of the persons under inspection
or, enter into the places where the persons under inspection are engaged in
production and business operation or the places for storage of goods to
conduct inspection, the legal representatives, chief personnel in charge or
the representatives appointed by the persons under inspection shall be
present and at the Customs’ request, sort out the accounting books, open the
warehouses, move the goods or open the packages.

    Article 20  Where the Customs conducts inspection, all enterprises and
units having financial contacts or other business contacts with the persons
under inspection shall report truthfully relevant particulars of the persons
under inspection, and provide relevant information and certifying materials.

    Article 21  The Customs inspection group shall, after the implementation
of the inspection, put forward towards the Customs an inspection report. The
opinion of the person under inspection shall be solicited before the
inspection report is sent to the Customs. The person under inspection shall
submit to the Customs his opinion in writting within 7 days from the date of
receiving of the inspection report.

    Article 22  The Customs shall, within 30 days from the date of receiving
of the inspection report, make a conclusion of the Customs inspection and
serve it on the person under inspection.
Chapter 4  Handling of the Inspection Conducted by the Customs

    Article 23  Where, after inspection, Customs duties or taxes in other
import links are short-levied or not levied, the Customs may recover the
amount of taxes from the persons under inspection in accordance with the
provisions of the Customs Law and relevant tax laws or administrative
regulations. If any imports or exports are short-levied or not levied owing
to an act in violation of the Customs regulations by the person under
inspection, the Customs may collect the amount of taxes in accordance with
the provisions of the Customs Law and relevant tax laws or administrative
regulations.

    Where the person under inspection fails to pay the amount of taxes within
the time limit set by the Customs, the Customs may take mandatory execution
in accordance with the provisions of the first paragraph of Article 37 of the
Customs Law.

    Article 24  Where, after inspection, the import and export goods sealed
up in accordance with the provisions of Article 16 of these Regulations are
found out to be free from any possibility of violation of law, the Customs
shall lift the seal immediately. Where it believes the goods are illegal
after inspection, the Customs shall treat the case in accordance with the
provisions of the Customs Law and Rules for Implementation of Administrative
Punishment under the Customs Law.

    Article 25  Where the Customs believes, after inspection, that the person
under inspection has an act violating regulations on Customs control, the
Customs shall treat the case in accordance with the provisions of the Customs
Law and Rules for Implementation of Administrative Punishment under the
Customs Law.

    Article 26  Where the Customs discovers, after inspection, that the
person under inspection has a smuggling act, and the act constitutes a crime,
the person shall be investigated for criminal responsibility; where such an
act does not constitute a crime, the Customs shall treat the case in
accordance with the provisions of the Customs Law and Rules for
Implementation of Administrative Punishment under the Customs Law.

    Article 27  The amount of taxes collected by the Customs, the smuggled
goods and illegal income confiscated,and the fines imposed, shall be all
turned over to the State Treasury.

    Article 28  Where a person under inspection has a tax dispute with the
Customs, such a dispute shall be handled in accordance with the provisions
of Article 46 of the Customs Law.
Chapter 5  Legal Responsibility

    Article 29  Where a person under inspection has any of the following
acts, the Customs shall order him to correct such mistakes within a time
limit; if he fails to do so, a fine from 10000 to 30000 in RMB shall be
imposed. Where the case is serious, the right of declaration to the Customs
shall be deprived of; and the personnel in charge or other personnel directly
answerable for the offence shall be fined from 1000 to 5000 in RMB:

    1. To provide false information to the Customs or to conceal important
facts;

    2. To refuse or to delay to present to the Customs the accounting books,
documents and other relevant materials;

    3. To transfer, conceal, alter or destroy the accounting books, documents
and other relevant materials.

    Article 30  Where a person under inspection fails to establish or compile
the accounting books, documents and other relevant materials in accordance
with the Customs regulations, the Customs shall order him to correct such
mistakes within a time limit; If he fails to do so, a fine from 10000 to
50000 in RMB shall be imposed. Where the case is serious, the right of
declaration to the Customs shall be deprived of; and the personnel in charge
or other personnel directly answerable for the offence shall be fined from
1000 to 5000 in RMB.

    Article 31  Where Customs personnel who neglects his duties, acts
illegally for personal gains, abuses his powers or, takes advantage of his
office to accept or to demand property from the persons under inspection, and
such an act constitutes a crime, he shall be investigated for criminal
responsibility; Where such an act does not constitute a crime, he shall be
investigated for administrative sanctions.
Chapter 6  Supplementary Provisions

    Article 32  The General Customs Administration shall be responsible for
organizing the implementation of these Regulations.

    Article 33  These Regulations shall be effective as of the date of
promulgation.

CIVIL AIR DEFENSE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

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

     Beijing,October 10(chinacourt.org)   The Civil Air Defense Law of the People’s Republic of China, adopted at the 22nd Meeting of the Standing Committee of the Eighth National
People’s Congress of the People’s Republic of China on October 29, 1996, is hereby promulgated and shall enter into force as of January
1, 1997.

Jiang Zemin President of the People’s Republic of China October 29, 1996

CIVIL AIR DEFENSE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

CHAPTER I GENERAL PROVISIONS CHAPTER II PRIORITY OF PROTECTION CHAPTER III CIVIL AIR DEFENSE WORKS CHAPTER IV COMMUNICATIONS AND WARNING
CHAPTER V EVACUATION CHAPTER VI MASS ORGANIZATIONS FOR AIR DEFENSE CHAPTER VII EDUCATION IN CIVIL AIR DEFENSE CHAPTER VIII LEGAL
LIABILITY CHAPTER IX SUPPLEMENTARY PROVISIONS

   Article 1 This Law is enacted for the purpose of organizing effective civil air defense, preserving safety of people’s lives and property and
ensuring the smooth progress of the socialist modernization drive.

   Article 2 Civil air defense is a component part of national defense. In light of the need of national defense, the State mobilizes and organizes
the masses to take protective measures for preventing or minimizing damage caused by air raid.

For civil air defense, the guidelines of making long-term preparation, giving priority to the building of key works and suiting both
peacetime and wartime needs shall be applied and the principles of coordinating its buildup with the development of the economy and
combining it with urban construction shall be carried out.

   Article 3 People’s governments at or above the county level shall incorporate civil air defense construction into their plans for national
economic and social development.

   Article 4 The expenses for civil air defense shall be jointly borne by the State and the society.

The proportion borne by the Central Government shall be incorporated in the central budget, while the proportions borne by the local
people’s governments at or above the county level shall be incorporated in their budgets respectively.

Relevant units shall bear their proportions of the expenses for civil air defense in accordance with relevant State regulations.

   Article 5 In accordance with relevant regulations, the State adopts preferential policies with regard to construction of civil air defense
projects.

The State encourages and supports enterprises, institutions, public organizations and individuals to invest in various ways in construction
of civil air defense works. In time of peace, such works shall be used and managed by the investors and the income therefrom shall
be owned by them.

   Article 6 The State Council and the Central Military Commission shall exercise leadership in the work of civil air defense throughout the country.

As authorized by the State Council and the Central Military Commission, the major military commands shall exercise leadership in the
work of civil air defense in the areas under their command.

Local people’s governments at or above the county level and the military organs at the corresponding level shall exercise leadership
in the work of civil air defense in their administrative areas respectively.

   Article 7 The competent national department for civil air defense shall administer the work of civil air defense throughout the country.

The competent departments for civil air defense of the major military commands shall administer the work of civil air defense in their
areas respectively.

The competent departments for civil air defense of the local people’s governments at or above the county level shall administer the
work of civil air defense in their administrative areas respectively.

The competent departments for civil air defense of the State organs at the central level shall administer the work of civil air defense
of their own organs.

Provisions for the establishment and the functions and duties of the competent departments for civil air defense shall be formulated
by the State Council and the Central Military Commission.

The relevant departments for planning and construction of the people’s governments at or above the county level shall be responsible
for the work of civil air defense within the limits of their respective functions and duties.

   Article 8 All organizations and individuals shall have the right of being protected by civil air defense and must perform their duties in civil
air defense according to law.

   Article 9 The State protects civil air defense facilities from damage. All organizations and individuals are prohibited to destroy or seize
civil air defense facilities.

   Article 10 People’s governments and military organs at or above the county level shall give awards to organizations and individuals that have
achieved outstanding successes in work of civil air defense.

CHAPTER II PRIORITY OF PROTECTION Article 11 Cities enjoy priority in civil air defense. The State applies a system whereby different
categories of cities are provided with different grades of protection.

Provisions for differentiating the cities for different grades of protection shall be formulated and the standards for such protection
established by the State Council and the Central Military Commission.

   Article 12 People’s governments of cities shall devise air defense programmes and draw up plans for their enforcement and may organize exercise
when necessary.

   Article 13 People’s governments of cities shall work out plans for construction of civil air defense works and incorporate them into their overall
urban plans.

   Article 14 In constructing trunk lines of underground traffic and other underground projects in a city, consideration shall be given to the
needs of civil air defense.

   Article 15 All projects for storing grains, medicines, oils and other necessary goods and materials for wartime use shall be built underground
or in other concealed places.

   Article 16 Relevant departments must take effective measures of protection towards important economic targets and work out plans dealing with
emergencies and doing rush repairs.

“Important economic targets” mentioned in the preceding paragraph include important industrial and mining enterprises, scientific
research bases, hubs of communications, signal centers, bridges, reservoirs, warehouses and power stations.

   Article 17 The competent departments for civil air defense shall, in accordance with relevant regulations, conduct supervision over and inspection
of the civil air defense construction projects of cities and economic targets. The units under inspection shall provide them with
truthful reports and the necessary information and materials.

CHAPTER III CIVIL AIR DEFENSE WORKS

   Article 18 Civil air defense works include underground protective structures that are constructed particularly for sheltering people and goods
and materials, civil air defense command and medical aid in time of war, and basements that are constructed in combination with the
surface buildings and that can be used for air defense in time of war.

   Article 19 The State provides guidance to construction of different categories of civil air defense works in accordance with the different requirements
of protection.

The State formulates plans for construction of civil air defense works in accordance with the need of national defense and in light
of the level of urban construction and economic development.

   Article 20 Under the prerequisite of ensuring their functions in time of war, civil air defense works shall be constructed in such a way as
to benefit economic development, production and life of the people and the development and use of such works in time of peace.

   Article 21 The competent departments for civil air defense shall be responsible for organizing construction of such works as civil air defense
commands, shelters for public use and main passages for evacuation. Other relevant departments shall be responsible for organizing
construction of special works for medical aid and for storage of goods and materials.

The relevant units shall be responsible for constructing works for sheltering their own employees, goods and materials.

   Article 22 Basements that can be used for air defense in time of war shall, in accordance with the relevant regulations of the State, be constructed
in new buildings of cities for civil use.

   Article 23 The design, construction and quality of civil air defense works must conform to the protection and quality standards established
by the State.

The final design and manufacture of special equipment for civil air defense works must conform to the standards established by the
State.

   Article 24 The relevant departments of the people’s governments at or above the county level shall, in accordance with law, guarantee the land
needed for construction of civil air defense works, and provide the necessary conditions for constructing civil air defense works
that connect such infrastructures as roads, power supply, heat supply, water supply and drainage and communications systems in urban
areas.

   Article 25 The competent departments for civil air defense shall oversee and inspect the maintenance and management of civil air defense works.

The competent departments for civil air defense shall be responsible for the maintenance and management of civil air defense works
for public use.

The relevant units shall in accordance with State regulations, maintain and manage civil air defense works already built or put to
use, and keep them in good repair.

   Article 26 The State encourages peacetime use of civil air defense works for economic development and the daily lives of the people. However,
such use may not impair their functions as air defense works.

   Article 27 No organizations or individuals may conduct any operation that may impair the use of civil air defense works or weaken their protective
capacities, discharge waste water or gas or dump waste material into any civil air defense works, or produce or store any explosives,
hypertoxics, inflammables, radioactive substances or corrosives therein.

   Article 28 No organizations or individuals may without approval dismantle any civil air defense works as specified in Article 21 of this Law.
Where it is truly necessary to dismantle such works, the matter must be reported to the competent department for civil air defense
for approval, and the unit that dismantles the works shall be responsible for reconstruction or compensation.

CHAPTER IV COMMUNICATIONS AND WARNING

   Article 29 The State ensures unimpeded civil air defense communications and warning in order that air defense warning signals are promptly and
accurately transmitted and sent out and civil air defense is effectively organized and directed.

   Article 30 The competent national department for civil air defense shall be responsible for working out national plans of construction projects
for civil air defense communications and warning and organizing the establishment and management of the national network of civil
air defense communications and warning.

The competent departments for civil air defense of the local people’s governments at or above the county level shall be responsible
for working out plans of construction projects for civil air defense communications and warning in their administrative areas and
organizing the establishment and management of their local networks of civil air defense communications and warning.

   Article 31 Post and telecommunications departments, military communications departments and competent departments for civil air defense shall
guarantee civil air defense communications by way of fulfilling their respective tasks prescribed by the State and carrying out the
plans of construction projects for civil air defense communications and warning.

   Article 32 Post and telecommunications departments, military communications departments and radio administration authorities shall guarantee
provision of the circuits and frequency required by the competent departments for civil air defense in establishing communications
and warning networks, the relevant units and individuals shall provide convenience for installation of facilities of civil air defense
communications and warning, and may not obstruct it.

No organizations or individuals may use the same frequency or the same acoustic signals as those specially used by the State for civil
air defense communications or air defense warning.

   Article 33 In time of war, the communications, broadcasting and television systems must give first priority to the transmission and sending
out of air defense warning signals.

   Article 34 The relevant military departments shall communicate air intelligence to the competent departments for civil air defense and assist
the latter in training special personnel in this field.

   Article 35 All facilities for civil air defense communications and warning must be kept in good repair.

Civil air defense warning facilities shall be maintained and controlled by the units in which they are installed and may not be dismantled
without approval.

When necessary, the local people’s governments at or above the county level may organize trial air defense warning and shall make
it known to the public five days before the trial.

   Article 36 In time of peace, all facilities for civil air defense communications and warning shall be used in cases of emergency and disaster.

   Article 37 Civil air defense evacuation shall be directed in a unified manner by the people’s governments at or above the county level.

Civil air defense evacuation must be carried out in accordance with the order issued by the State. No organization may go into action
without such order.

   Article 38 People’s governments at or above the county level shall organize relevant departments to formulate plans for urban civil air defense
evacuation according to need.

Evacuation zones shall be predetermined by the people’s government of the administrative area where such zones are located, if the
zones extend to cover two or more administrative areas, they shall be predetermined by the people’s government at the next higher
level.

   Article 39 People’s governments at or above the county level shall organize relevant departments and units to make ample preparations for arrangement
of the urban population to be evacuated and for storage, transport and supply of goods and materials.

   Article 40 Where it is necessary to evacuate rural population, the local people’s government shall have them evacuated to nearby places, which
should be adhered to as a principle.

CHAPTER VI MASS ORGANIZATIONS FOR AIR DEFENSE

   Article 41 Local people’s governments at or above the county level shall, in light of the need of civil air defense, have relevant departments
establish mass organizations for air defense.

The tasks to be performed by mass organizations for air defense in time of war include dealing with emergencies, doing rush repairs,
providing medical aid, preventing and extinguishing fire, engaging in epidemic prevention, disinfection and sterilization, eliminating
contamination, ensuring signal communications, rescuing people, doing emergency transportation of goods and materials and maintaining
public order, and in time of peace they shall assist the departments for fighting against floods and earthquakes in dealing with
emergencies and doing disaster relief.

   Article 42 The following departments shall be responsible for organizing mass organizations for air defense:

(1) The departments for urban construction, public utilities and power supply shall organize teams to deal with emergencies and do
rush repairs;

(2) Public health and medical departments shall organize medical aid teams;

(3) Public security departments shall organize fire-fighting teams and public security teams;

(4) The departments for public health, chemical industry and environmental protection shall organize anti-chemical and anti-epidemic
teams;

(5) The post and telecommunications departments shall organize communications teams; and

(6) The transportation departments shall organize transportation teams.

The Red Cross organizations shall provide first aid according to law.

   Article 43 The equipment, apparatus and funds needed by mass organizations for air defense shall be provided by competent departments for civil
air defense and the units that organize them.

   Article 44 Mass organizations for air defense shall carry out specialized training in accordance with the training program and plans formulated
by the competent departments for civil air defense.

CHAPTER VII EDUCATION IN CIVIL AIR DEFENSE

   Article 45 The State develops civil air defense education to help citizens enhance their awareness of the importance of national defense and
acquire the basic knowledge and skills of civil air defense.

   Article 46 The competent national department for civil air defense shall be responsible for organizing and formulating civil air defense education
plans and specifying the contents for such education.

The competent education departments and the competent departments for civil air defense at various levels shall arrange civil air
defense education among students at school.

Civil air defense education for the personnel of State organs, public organizations, enterprises and institutions shall be arranged
by the units to which they belong; and such education for other persons shall be arranged by urban and rural people’s governments
at the grassroots level.

   Article 47 The relevant departments for the press, publishing, broadcasting, film, television and culture shall assist in developing civil air
defense education.

   Article 48 A party that, in violation of the relevant regulations of the State, fails to construct, in its newly-constructed building for civil
use in an urban area, a basement to be used for air defense in time of war shall be given a disciplinary warning by the competent
department for civil air defense of the people’s government at or above the county level and be ordered to build it within a time
limit, and may also be fined not more than 100,000 yuan.

   Article 49 A party that commits any of the following acts shall be given a disciplinary warning by the competent department for civil air defense
of the people’s government at or above the county level and be ordered to set it right within a time limit, and in the case of an
individual a fine of not more than 5,000 may also be imposed on him and in the case of a unit a fine ranging from 10,000 to 50,000
yuan may also be imposed on it; the party shall be liable for the losses according to law, if any:

(1) occupying civil air defense works;

(2) failing to construct civil air defense works in conformity with the protection standards and quality standards established by
the State;

(3) altering, in violation of the relevant regulations of the State, the major structure of civil air defense works, dismantling equipment
or facilities for such works or endangering the safety or impairing the functions of the works by any other means;

(4) refusing to reconstruct the civil air defense works that were dismantled;

(5) using the special frequency for civil air defense communications or the same acoustic signals as those used for air defense warning
or dismantling, without approval, equipment or facilities for civil air defense communications and warning;

(6) obstructing the installation of facilities of civil air defense communications and warning and refusing to stop doing so; or

(7) discharging waste waste or gas or dumping waste material into civil air defense works.

   Article 50 Any one who, in violation of the provisions of this Law, intentionally damages civil air defense facilities or produces or stores
in civil air defense works such hazards as explosives, hypertoxics, inflammables or radioactive substances, shall be punished in
accordance with the relevant provisions of the Regulations on Administrative Penalties for Public Security if the violation does
not constitute a crime; otherwise, he shall be investigated for criminal responsibility according to law.

   Article 51 Any member of the competent departments for civil air defense who neglects his duty, abuses his power, conducts malpractices for
personal gain, or commits any other violations or negligence, shall be investigated for criminal responsibility according to law
if the case constitutes a crime; otherwise, he shall be subjected to administrative sanction according to law.

CHAPTER IX SUPPLEMENTARY PROVISIONS

   Article 52 The standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly under the Central
Government may formulate measures for implementation in accordance with this Law.

   Article 53 This Law shall enter into force as of Janauary 1, 1997.



MOFTEC P.R.C.

EDITOR:Victor

CURRENT CATALOGUE OF KEY INDUSTRIES, PRODUCTS AND TECHNOLOGIES THE DEVELOPMENT OF WHICH IS ENCOURAGED BY THE STATE (PROVISIONAL)

Category GENERAL Organ of Promulgation The State Council Status of Effect In Force

Date of Promulgation 1997-12-31 Effective Date 1997-12-31

Current Catalogue of Key Industries, Products and Technologies the Development of Which Is Encouraged by the State (Provisional)

(Approved by the State Council on December 31, 1997 and promulgated by

the State Planning Commission on December 31, 1997)

    I.Agriculture

    Technologies for the improvement of fine breeds of animals and good
strains of plant seeds and control of major diseases and pests

    Toxin-free seedlings

    Soilless cultivation of vegetables and flowers

    High-yield, high-efficiency modal cultivation

    Development and extension of advanced agricultural technologies

    Storage, preservation, processing and comprehensive utilization of
agricultural products

    Integrated treatment of median- and low-yield farmland

    Development of cultivable wasteland, barren hills and mountains, barren
deserts and shoals

    Construction of farm produce bases of commodity foodgrains, cotton,
oils, sugar and other crops

    Dry farming, water-saving farming and ecological farming

    Natural rubber

    Construction of the grass industry and grasslands

    Cultivation and breeding of brand-name, special and excellent aquatic
products

    Dairy industry

    Biological agricultural chemicals

    High-efficiency, low-toxin and pollution-free agricultural chemicals

    New-type agricultural plastic films

    New veterinary vaccines and veterinary pharmaceutical chemicals

    Bovine and sheep embryo transplant

    Technological transformation of fishing vessels

    Fodder additives and their matching exploitation

    II.Forestry

    Selection, cultivation and hereditary improvement of fine seeds for
forests

    Cultivation and storage of fine species of economic forests and good
strains of flower seeds

    Prevention and control of forest disasters

    Afforestation on extraordinarily difficult lands in ecologically
vulnerable regions

    Fast-growing high-yield forests

    Shelter forest projects

    Forest resources restoration projects

    Prevention and control of desertification

    Pulp paper making in raw materials forest bases

    Deep processing and serial products of wood, artificial forests,
small-diameter wood and residues in forest regions

    Bamboo engineering materials and plant fibre engineering materials

    Deep processing of forestry chemical products

    Physiological active matters of trees

    New materials for sand fixing, water conservation and soil improvement

    III.Water Conservancy

    Flood-control harnessing projects of big rivers and lakes

    Trans-valley water diversion projects

    Water source projects in regions short of water resources

    Drinking water and water improvement projects for humans and cattle
in drought areas

    Safety construction of flood storage and retention areas

    Maintenance and construction of sea dykes

    Silt clean-up in rivers, lakes and reservoirs

    Danger removal and consolidation of sick and dangerous reservoirs and
embankments

    Integrated utilization of water conservancy hubs

    Technology and construction of facilities for water and soil conservation

    Development and exploitation of slightly salty water, poor quality water
and sea water and desalination of sea water

    Protection and development of water energy resources

    Civil engineering composite materials in water conservancy projects

    Technology, equipment and methodology of high-efficiency water
transmission and distribution and water-saving irrigation

    High-efficiency friction-enduring low-lift big-flow water pumps

    Automated systems for automatic measurement and reporting of water
situation and flood control

    CAD series software for the survey and design of water conservancy
projects

    Instruments and equipment for hydrological data gathering

    IV.Meteorology

    Systems technology and equipment for automated meteorological stations

    Equipment for observation and analysis of special weather conditions

    Doppler radar technology and equipment

    V.Coal

    Geological and geophysical survey of mines

    Big- and medium-size high-efficiency open strip mines

    Big- and medium-size high-efficiency coal washeries

    Prevention and control of gas, coal dust, mine water and mine fire

    Industrial shaped coal

    Liquefied coal pulp

    Coal gasification and liquefaction

    Survey, development and exploitation of coal rake gas

    Development and utilization of low-heat value fuels and associated
resources in coal mines

    Pipeline coal transmission

    VI.Electricity

    Hydropower generation

    Big-size coal mine mouth power plants

    Integrated thermal power generation

    Solar energy, ground thermal energy, marine energy, trash and
bio-matter energy power generation and big-size wind energy power generation

    Joint gas cycling power generation

    Clean coal power generation

    Long-distance ultra-high-pressure power transmission and transformation

    Transformation and construction of power networks

    VII.Nuclear Energy

    One-mega kilowatt pressurized water reactor nuclear power station

    Low-temperature heat supply nuclear reactor, fast neutron breeder
reactor and fusion reactor

    Advanced mining and smelting of uranium mine

    High-performance nuclear fuel elements

    Fuel-short after-treatment

    Instruments and apparatuses for nuclear analysis and nuclear survey

    Isotopes and their radiation applications

    VIII.Petroleum and Natural Gas

    Petroleum and natural gas exploration

    Petroleum and natural gas exploitation

    Pipeline transmission of crude oil

    Pipeline transmission of natural gas

    Liquefied natural gas

    Petroleum reserve

    Integrated exploitation of petroleum, gas and associated resources

    IX.Railway

    Trunk railway network

    Speed improvement of existing railway lines

    High-speed railway system

    25-ton axle-weight cargo heavy load

    Railway operations safety technology assurance system

    Heavy-duty fine-quality rails and new-type soft sleepers

    Marshalling yard automation, loading-and-unloading operation mechanization
and goods yard equipment

    Railway passenger and cargo transport equipment

    Railway passenger and cargo transport information system

    Railway container transportation

    X.Highway

    National trunk highway network

    Intelligent highway transport system

    Highway rapid passenger and cargo transportation

    New highway engineering materials

    Design and manufacture of new highway machinery and equipment

    Highway container transportation

    XI.Water Transport

    Main coastal hub ports

    Inland-river trunk navigation channels and wharves

    Standardization, serialization and modernization of ship transport

    Loading and unloading automation of big ports

    Ocean shipping electronic data exchange system

    Maritime traffic control system

    Design and manufacture of new port machinery and equipment

    Maritime container transportation

    Multi-modal coordinated transportation of containers

    XII.Air Transport

    Civil airports

    High-performance airport security-check equipment

    Air traffic control system

    XIII.Posts and Telecommunications

    Key technologies and equipment of stratosphere telecommunications systems

    Optical fibre telecommunications system and equipment for 622Mb/s and
over digital synchronous series

    Microwave telecommunications system and equipment for 155Mb/s and over
digital synchronous series

    Digital mobile telecommunications systems and equipment (GSM, CDMA,
DCS1800 etc.)

    ISDN systems and equipment

    New technologies and equipment supporting telecommunications networks

    Satellite telecommunications systems and ground station equipment

    Broadcasting satellites and ground station equipment

    Satellite mobile telecommunications systems and equipment

    Cable-and-wireless-user-access-to-the-network system and equipment

    Asynchronous transfer-mode wide-band optical electronic transmission
systems and equipment

    Intelligent network and its applied equipment

    Digital cluster telecommunications systems and equipment

    Automated disposal systems for postal letters and parcels

    XIV.Iron and Steel

    High-efficiency ore dressing and integrated exploitation of
mineral resources

    Direct reduction

    Pellets burning and pellet-grouping burning

    Blended coal coking and tamping coking

    Dry coke quenching

    High-wind-temperature long-life hot-air blast furnace

    Blast furnace oxygen-enriched coal spray

    Integrated technology for high-efficiency long-life blast furnace

    Ultra-high power electric furnace and integrated energy-saving
technology

    Converter splash protection technology

    High-efficiency continuous casting

    Hot loading and hot feeding of continuous casting blanks

    Melting reduction

    Near-terminal continuous casting and rolling of thin plate blanks and
thin belt blanks

    Integrated automation of metallurgy

    Controlled rolling and controlled cooling

    Plate shape control

    Surface coating and plating

    Low alloy steel and micro alloy steel

    50-ton and over converter steel

    Stainless steel smelting

    Silicon steel sheet cold rolling

    Hot and cold rolling of stainless steel plates

    Petroleum steel pipes

    Scrap steel processing and disposal

    Mining of high-alumina bauxite and hard clay ore, and production of
chamotte

    Metallurgical environmental protection and integrated utilization of
metallurgical wastes

    XV.Nonferrous Metals

    Exploitation of deep and difficult mine beds

    Nonferrous metal composite materials and new alloy materials

    Production of alumina with monohydrate hard bauxite ore

    Nonferrous metal fortified smelting and wet process smelting

    Non-crystal alloy thin belts

    Supercritical extraction

    High-efficiency energy-saving mine washery and electro-chemically
controlled flotation

    Big pre-roasted vat electrolytic aluminium

    Aluminium and aluminium alloy rapid casting and rolling

    8-inch and over monocrystalline silicon chips and polycrystalline silicon

    High-efficiency ore dressing chemicals

    High-performance high-precision hard alloy, tin compound, antimony
compound and ceramics materials

    High-performance magnetic materials

    Superfine materials, electronic pulp and its products

    New braking materials

    Integrated exploitation of multi-metal intergrown mines

    Development and integrated utilization of rare earth, rare and scattered
metals

    Integrated exploitation of salt lake resources

    Development, exploitation and integrated recovery of difficult gold
ores and difficult gold tailings in gold mines by adopting new roasting
technique, hot-pressure pre-oxidization and cyanidation gold extraction
technique and bacteria-oxidization and cyanidation gold extraction
technique

    XVI.Chemical Industry

    Scientific fertilizer applications (soil-survey-based fertilizer
applications, new chemical fertilizers and all types of special-purpose
fertilizers)

    Big-size synthetic ammonia and urea

    Big- and medium-size high-density phospho-potash fertilizer and its
compound fertilizer

    Compound fertilizers with trace elements required by crops

    Pressurized gasification of liquefied coal pulp

    New high-efficiency catalysts

    Potassium chloride with an annual production of 200,000 tons and over
and potassium sulphate with an annual production of 100,000 tons and over

    Improved calcium-magnesium-phosphorus compound fertilizer

    Granular ammonium phosphate and ternary compound fertilizer made with
tubular reactor

    Coated urea

    Joint production of cement and sulphuric acid having an annual capacity of
30,000 tons and over with pulp-process ammonium phosphate and phosphorus
limestone

    Sulphur-based ternary fertilizer

    Rare earth compound fertilizers

    High-purity phosphorus pentasulphide

    Advanced wet-process refining of phosphoric acid

    Anti-aging special polythene

    Low-toxin aluminite sodium

    10,000-ton grade sodium cyanide

    5,000-ton/year gaseous-phase white carbon black

    Big- and medium-size chemical mines

    Organosilicon monoblocks, organic fluoride and other new chemical products

    New fine chemical products

    Big-size coal chemical industry

    Ion film for caustic soda

    Titanium white chloridization

    High-performance meridian tyres

    Bone materials for high-performance meridian tyres

    Treatment and integrated utilization of chemical wastes (waste water,
waste gases and waste residues)

    XVII.Petroleum Chemical Industry

    Single-series scale 5-million-ton and over oil refinery

    Economy-scale deep processing of crude oil

    600,000-ton and over ethylene and big-size after-processing

    Polyvinyl chloride resin

    Engineering plastics and new plastic alloys

    Matching raw materials for composite materials: biphenol-A, butadiene
styrene latex, pyridine, 4.4′ dibenzo-methane diisocyanate and methylbenzene
diisocyanate

    Synthetic rubber and its applications

    Single-series capacity 100,000-ton and over acrylic

    Single-series capacity 350,000-ton and over PTA

    Nylon 6 and nylon 66 new products

    New products of organic chemical raw materials

    Integrated utilization of gas and chemical by-products of refineries

    Treatment and integrated utilization of petroleum chemical wastes
(waste water, waste gases and waste residues)

    XVIII.Construction Materials

    4,000-ton/day and over ripe-material new dry-process cement

    New walling materials, decoration and renovation materials, water-proof
and insulation materials

    10,000-ton glass fibre of direct melting process

    High-quality composite plastic materials for doors, windows, pipes
and wall and floor coverings

    Deep processing of sheet glass

    High-grade sanitary ware and its metal parts

    Super-fine improved processing of non-metal ores and their
products

    Diamond processing (from rough diamonds ground into finished diamonds)

    XIX.Pharmaceutics

    Medicines listed in the Catalogue of Basic Medicines of the State

    Important products having an edge for export

    Bioengineering medicine

    Radioactive drugs

    New anti-carcinogen drugs (including anti-hepatitis drugs) and
new cardio- and cerebro-vascular drugs

    Diagnosis agents for AIDS and radiation immunization

    New medicines for endemic diseases

    New fever and pain relievers

    New medicaments, auxiliary materials and medicaments produced
according to GMP

    Special-purpose medicinal intermediaries in short supply and new
antibiotics

    New biochemical medicine series (including agents for biochemical
diagnosis)

    New packing materials for medicine

    New pharmaceutics and medical apparatuses

    New sanitary materials and dressings

    Medicines and tools for planned parenthood

    Selection technology and selection models for new medicines

    New bacteria for amino acids

    Fodder-grade biotin

    Virginiamycin and tylosin

    Penicillin salt refining and purification

    Fermentation and automated temperature control system

    Large-scale multi-peptide synthesis and purification

    Large-scale medicinal nucleic acid synthesis and purification

    High-yield gene engineering bacteria

    Natural drugs

    Research and development of new traditional Chinese medicine

    XX.Machinery

    Precision shaping technology and equipment

    Triple axes joint-operation digital programmed machine tools, digital
control systems and servo devices

    Advanced computer hardware and software technologies and equipment for
the development of machinery products

    Advanced testing and measuring technologies and equipment for the
development of machinery products

    High-speed super-hard precision cutters and precision automatic
measurers and measuring instruments

    New sensors

    Ball bearings for cars, ball bearings for railway rolling stocks,
precision ball bearings, high-speed ball bearings

    8.5M rotor and over mixed current and axle current hydropower generation
equipment and its key matching auxiliary engines

    Big-size constant flow and pumping energy conservation hydropower
generating units and its key matching auxiliary engines

    Super critical thermal power generating units

    600,000-kilowatt and over big-size air-cool power generating units

    100,000-kilowatt and over cyclic fluidized bed boiler

    36,000-kilowatt and over gas and steam joint cycling equipment

    Big-size wind energy power generating units

    Nuclear power generating units and its key matching auxiliary engines

    500,000-volt and over ultra-high-pressure direct or alternate current
transmission and transforming equipment

    Equipment for heave-current breaking-capacity test and equipment for
transformer abrupt short-circuit test

    New insulation materials

    450,000-ton/year and over key production technologies and equipment for
chemical fertilizers and ethylene

    Scattered control systems for major technical equipment

    Online automatic testing technologies and systems

    New electric and electronic technologies and devices

    Precision and ultra-precision processing technologies and equipment

    Laser processing technologies and equipment

    Big-size precision instruments

    New hydraulic airtight pneumatic elements and parts

    Low-pressure electronic appliances

    High-strength special-shape tighteners and fixers

    20-ton/hour and over resin sand casting equipment

    Design, manufacturing technology and equipment for advanced moulds

    Big-size vacuum electronic cluster welding technology and equipment

    Controllable atmospheric and vacuum heat treatment technology and
equipment

    New-technology equipment manufacture for testing and measuring
instruments for safe production and environmental protection

    Urban garbage disposal technology and equipment

    Big-size sewage treatment equipment

    Smoke and gas desulphurization and denitration equipment

    Sea water desalination technology and equipment

    Industrial robots

    5-million-ton/year and over trackless mining, loading and transport
equipment

    Complete plant for 20-million-ton and over big-size open strip mines

    Tunnelers

    Underground railway excavating equipment

    2m and over big-size cold and hot continuous rolling and process
control technology and equipment

    30,000 cubic-meter/hour and over air-separation equipment mechanical
parkade

    Natural gas gathering and transmission equipment

    Key equipment for soft-plate printing

    Machinery and equipment for moderate scale operations of agriculture

    Equipment for deep processing of farm produce and animal products and
integrated utilization of resources

    Equipment for agricultural environment and ecological agriculture

    Agricultural harvesters, farm machinery and tools (for cotton, paddy,
corn, beans and green fodder, etc.)

    Vacuum refining and casting technologies and equipment

    Elements, parts and materials for new instruments

    Big-size engineering construction machinery and equipment

    Advanced internal-combustion engines and their key components and parts

    XXI.Electronics and Information

    0.8 micron wire width and below large-scale integrated circuits

    New electronic elements and parts (including elements and parts in
chips) and electronic elements and parts for electricity

    New surface stick-on assembly elements and parts

    Optic-electro components, sensitive elements, parts and sensors

    Development of special-purpose materials for transistors and
photo-electronics

    Big- and medium-size electronic computers

    High-performance micro-electronic computers

    Work stations and servers

    Software development

    3D CAD, CAT, CAM, CAE systems and other computer application systems

    Special-purpose electronic equipment, instruments, tools and moulds

    Digital cross-connection equipment

    Large-capacity CD and magnetic disc memory and their parts

    New display apparatuses (LCD, panel display)

    New printing devices (laser printers)

    Equipment for data communications multimedia systems

    Monomode optical fibre

    Routers and other network equipment

    Digital audio-visual broadcasting systems and products

    High-definition laser disc (following MPEG-II standards such as DVD)

    HDTV

    Digital image recording and playing technology

    Digital color television

    Big-screen color projection television

    VCD core, optical head and special-purpose chips

    Ordinary paper fax machine

    New encryption machines

    Multimedia terminals

    Wideband digital programmed switches (ATM)

    High-speed wireless paging products

    Digital multi-function telephones

    XXII.Automobiles

    Automobile body and body accessories

    New automobile and motorcycle engines

    Key auto components and parts

    Precision forging, ferrous casting and nonferrous casting and
rough blanks of important auto components

    Automobile moulds

    Auto-borne electronic products

    New materials for light-weight vehicles

    Development systems for complete vehicle, complete motorcycle and engines,
components and parts

    Engine control systems and vehicle exhaust control systems such as
ternary catalysis conversion devices, etc.

    Testing systems for vehicle and motorcycle type authentication for
national testing centres

    XXIII.Shipbuilding

    High-tech high-performance and 60,000-ton and over giant vessels

    Main engine for vessels

    Shipborne power stations

    Ship crankshafts, special auxiliary engines and electronic instruments

    XXIV.Aviation and Aerospace

    Civilian aircraft and components and parts

    Aeroengines

    Integrated avionics systems

    Airborne equipment systems

    Helicopter body, rotor system and transmission system

    New materials and their applications for aviation and aerospace

    Gas Turbines

    Satellites, carrier rockets and their components and parts

    Satellite applications

    Aerospace technology applications

    XXV.Light Industries and Textiles

    Mould design, processing and manufacture of non-metal products

    Economy-scale standards pulp, paper and paper board

    New high-speed nine-layer and over corrugated paper

    Leather after-treatment processing

    Mercury-free alkaline manganese second battery cell, nickel hydrogen
battery cell and lithium battery cel

REGULATIONS ON THE RUNNING OF EDUCATIONAL INSTITUTIONS WITH SOCIAL RESOURCES

Category EDUCATION Organ of Promulgation The State Council Status of Effect In Force

Date of Promulgation 1997-07-31 Effective Date 1997-10-01

Regulations on the Running of Educational Institutions With Social Resources

Chapter I  General Provisions
Chapter II  Establishment of Educational Institutions
Chapter III  Teaching and Administration of Educational Institutions
Chapter IV  Property and Financial Management of Educational Institutions
Chapter V  Change and Disbandment of Educational Institutions
Chapter VI  Security and Support
Chapter VII  Legal Responsibility
Chapter VIII  Supplementary Provisions

(Promulgated by Decree No. 226 of the State Council of the People’s

Republic of China on July 31, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated with a view to encouraging
the running of educational institutions with social resources, safeguarding
the legitimate rights and interests of sponsors, schools and other
educational institutions, teachers and other educational workers and
those receiving education and promoting the healthy development of the
cause of running educational institutions with social resources.

    Article 2  These Regulations shall be applicable to the running of society-oriented schools and other educational institutions(hereinafter
referred to as educational institutions) by enterprises, institutions,
societies and other social organizations and individual citizens with
non-state financed educational funds.

    Article 3  The cause of running educational institutions with social
resources constitutes a component part of the cause of socialist education.
People’s Governments at all levels should strengthen leadership over the
work of running educational institutions with social resources and integrate
the cause of running educational institutions with social resources into
national socio-economic development plans.

    Article 4  The State adheres to the policy of giving active encouragement,
rendering strong support, correct guidance and strenghtening administration
with respect to the running of educational institutions with social resources.

    Article 5  Social resources should be focused on the running of
educational institutions conducting vocational education, adult education,
senior secondary education and pre-school education. The State encourages
the running of educational institutions conducting compulsory education
with social resources as a supplement to the conducting of compulsory
education by the State. The State exercises strict control over the running
of higher educational institutions with social resources.

    Social resources must not be used in the running of religious schools
and covert religious schools.

    Article 6  Profit-making must not be the aim in the running of educational
institutions with social resources.

    Article 7  No organiation or individual shall seek apportionment of educational funds from enterprises, institutions and individuals
in the
name of running educational insstitutions with social resources.

    Article 8  The State safeguards the legitimate rights and interests of educational institutions run with social resources.

    Educational institutions run with social resources have the independent
right in managing these institutions.

    Article 9  Educational institutions run with social resources should
abide by laws and regulations, adhere to the socialist orientation in
running these institutions, implement the State’s educational policy to
ensure educational and teaching quality.

    Article 10  Educational institutions run with social resources and their
teachers and students have the equal legal status of the educational
institutions run by the State and their teachers and students.

    Article 11  The department of education administration under the State
Council shall be responsible for the overall planning, integrated coordination
and macro-control of the work related to the running of educational
institutions with social resources nationwide.

    The department of education administration, the department of labor
administration and other departments concerned under the State Council
shall be responsible for the work related to the running of educational
institutions with social resources within the scope of functions and
responsibilities defined by the State Council.

    The departments concerned of People’s Governments at or above the county
level shall be responsible for the work related to the running of educational
institutions with social resources in accordance with the functions and
responsibilities defined by the People’s Governments of the provinces,
autonomous regions and municipalities directly under the Central Government.

    Article 12  Rewards shall be given to organizations and individuals
having made outstanding contributions to the running of educational
institutions with social resources.
Chapter II  Establishment of Educational Institutions

    Article 13  Units applying for the running of educational institutions
should have the qualifications of a legal person; individuals applying for
the running of educational insitutions should have political rights and
complete capability of civil acts.

    Examination agencies conducting state education examinations, vocational
qualification examinations and technical grade examinations must not run
educational institutions related to their examination businesses.

    Article 14  Establishment of educational institutions should fulfil the
basic conditions prescribed in the Education Law and the Vocational Education
Law.

    Standards for the establishment of schools conducting higher curricula-
based education shall be worked out by the department of education
administration under the State Council; standards for the establishment of
other educational institutions shall be worked out by the People’s Governments
of the provinces, autonomous regions and municipalities directly under the
Central Government according to different categories.

    Article 15  Running of educational institutions conducting curricula-
based education, literacy make-up courses, pre-school education and
grant-aided self-taught examinations shall be subject to the examination
and approval by the departments of education administration of People’s
Governments at or above the county level pursuant to the authority of
examination and approval prescribed by the State; running of educational
institutions conducting vocational qualification training and technical grade
training with vocational skills as the main contents and running of
educational institutions conducting labor employment vocational skills
training shall be subject to the examination and approval by the department
of labor administration of People’s Governments at or above the county level
pursuant to the authority of examination and approval prescribed by the State
with copies despatched to the department of education administration at the
same level for the record; running of other educational institutions shall be
subject to the examination and approval by the department of education at the
same level upon the examination, verification and consent of the competent
department of administration pursuant to the authority of examination and
approval prescribed by the State.

    Article 16  Sponsors applying for the running of educational institutions
should present the following materials to the organs of examination and
approval:

    (1)an application report;

    (2)certification documents of qualifications of the sponsor;

    (3)certification documents of qualifications of the headmaster-designate
or chief administrator-designate and teachers to be employed;

    (4)certification documents of assets and sources of funds of the
proposed educational institution;

    (5)constitution and development plan of the proposed educational
institution; and

    (6)other materials required by the organ of examination and approval.

    For joint running of an educational institution, an agreement on joint
running of the educational institution should likewise be presented.

    Article 17  Terms and conditions and standards for the establishment of educational institutions should be the basis for the examination
and approval
of an educational institution and in keeping with national interests and
public interests of society and the requirements for rational educational
structure and distribution.

    Organs of examination and approval accept applications for the running of educational institutions conducting
curricula-based education before the third
quarter of every year and give a reply in writing before the end of April of the following year; organs of examination and approval
should give a reply
in writing within three months starting from the date of acceptance of the
application for the running of other educational institution.

    Article 18  Organs of examination and approval shall issue licenses for
the running of educational institution to the educational institutions the
establishment of which have been approved. Format of the license for the
running of an educational institution shall be determined by the department
of education administration under the State Council, and the printing shall
be organized respectively by the department of education administration and
the department of labor administration under the State Council according to
the division of responsibilities.

    Upon obtainment of the license for the running of an educational
institution, the educational institution should enter into registration
pursuant to the Regulations on the Running of Non-enterprise Units with
Social Resources before it can conduct educational and teaching activities.

    Article 19  Educational institutions must not set up branches.

    Article 20  The name of an educational institution should indicate
precisely its category, level and the administrative area in which it is
located; no such characters as “Zhonghua”(Chinese), “Zhonggou”(China) and
“Gouji”(international) should be put ahead the names without the approval of the department of education administration or the department
of labor
administration under the State Council according to the division of responsibilities.
Chapter III  Teaching and Administration of Educational Institutions

    Article 21  An educational institution may set up a board of directors.
The board of directors proposes candidates for the position of headmaster or
chief administrator, decides on such major issues as the development,
fund-raising, budget and final accounting of revenue and expenditure of the educational institution.

    The board of directors shall be composed of the sponsor or his/her
representative, representatives of the staff of the educational institution
and social personages enthusiastic about the cause of education and with
moral integrity and good behavior, among them more than one third of the
directors should have more than five years of educational and teaching
experiences.

    The first batch of directors shall be elected on the proposal of the
sponsor, and later directors shall be elected according to the prescribed
procedures of the board of directors. The directors shall be employed upon
verification and approval by the organ of examination and approval.

    Active-duty state functionaries must not concurrently serve as
directors of educational institutions; however, those desigated by
People’s Governments at or above the county level or their concerned
departments out of special requirements are exceptions.

    Article 22  The headmaster or chief administrator of an educational
institution shall be responsible for teaching and other administrative work.

    Qualifications for the position of the headmaster or chief administrator
of the state-run educational institution at the same level and of the same
category shall be taken as reference for the qualifications for the position
of the headmaster or chief administrator of an educational institution;
however, there may be appropriate relaxation in age.

    Candidacy for the headmaster or chief administrator of an educational
institution shall be proposed by the board of directors where there is a
board of directors; where there is no board of directors, it shall be
proposed by the sponsor and employed upon verification and approval by the
organ of examination and approval.

    Article 23  Rules for relatives and dependents avoidance shall be
observed between those serving as directors, headmaster or chief administrator
and those serving in positions of general services, accountants and
personnel management.

    Article 24  Teachers and other educational workers of educational
institutions have the right to form trade unions pursuant to the Trade Union
Law to safeguard their legitimate rights and interests.

    Article 25  Educational institutions employ teachers and other educational
workers independently pursuant to the relevant provisions of the State.
Teachers employed by educational institutions should meet the qualifications
and conditions for teachers prescribed by the State. Educational institutions
should strengthen political and ideological education and professional
training of the teachers employed by them.

    Employment contracts should be signed by educational institutions and
teachers and other educational workers employed by them.

    Employment of teachers of foreign nationalities by educational
institutions shall be processed pursuant to the relevant provisions of the State.

    Article 26  Educational institutions conduct enrollment independently
pursuant to the provisions of the State on enrollment.

    Constitutions and advertisements for enrollment of educational
institutions can only be made public upon examination by organs of examination and approval.

    Enrollment of students from abroad by educational institutions shall be
handled pursuant to the relevant provisions of the State.

    Article 27  Educational institutions decide on the establishment of specialities independently pursuant to the relevant provisions
of the State.

    Article 28  Contents of teaching of educational institutions should
conform to the provisions of the Constitution, laws and regulations.

    Middle and primary schools run with social resources should carry out
education and teaching in accordance with the requirements of the
curricula plans and teaching programs worked out by the department of education administration under the State Council and the departments
of education administration of People’s Governments of the provinces, autonomous
regions and municipalities directly under the Central Government wherein
they are located, and the textbooks chosen should be subjected to the
examination and finalization of the departments of education administration
of People’s Governments of the provinces, autonomous regions and
municipalities directly under the Central Government.

    Article 29  Educational institutions should make full use of public
educational facilities, equipment and information of society and rely fully
on the role of broadcasting and television universities and broadcasting
and television schools to carry out educational and teaching activities
and improve educational and teaching quality.

    Article 30  Educational institutions should establish and implement rules
for students’ status and teaching management.

    Article 31  Students of schools conducting curricula-based education upon
approval having completed the studies and passed the examination shall be
issued certificates of curricula by the schools they are in pursuant to the
relevant provisions of the State.

    Students of other educational institutions shall, upon completion of studies, be issued certificates of training
or other certificates of studies
by the educational institutions they are in, annotating the subjects learnt
and examination scores, and they may take part in vocational qualification
examinations or technical grade examinations pursuant to the relevant
provisions of the State and obtain corresponding certificates of vocational
qualifications or technical grade certificates upon passing the examinations.

    Article 32  For engraving and making of seals and stamps, educational
institutions should go through the formalities of examination and approval at
the public security organ of the People’s Government at or above the county
level of the locality wherein it is located on the presentation of the license
for the running of educational institution and certification issued by the
organ of examination and approval.

    Educational institutions should submit samples of their seals and stamps
to the organs of examination and approval and public security organs for the
record.

    Article 33  Departments of education administration and departments of labor administration and other departments concerned should
step up
supervision and control over the work related to the running of educational
institutions with social resources. Local People’s Governments at or above the
county level should strengthen supervision, guidance and evaluation of the
educational level, quality of the educational institutions within their
respective administrative areas.

    No administrative department should collect any fee in the exercise of supervision and control over educational
institutions.
Chapter IV  Property and Financial Management of Educational Institutions

    Article 34  Educational institutions should establish financial and
accounting rules and property management rules in accordance with law and
keep accounting books pursuant to the provisions for accounting rules for
administrative institutions.

    Article 35  Educational institutions shall collect fees in accordance with
the relevant provisions of the State.

    The items and rates for fee collection of educational institutions
shall be set forth by them and, upon being given remarks after examination
and verification by organs of examination and approval, be verified and
determined by the departments of finance and departments of price control
according to the division of responsibilities in the light of the actual
conditions pertaining to the education, teaching costs and acceptance of subsidies of the educational institutions.

    Article 36  Educational institutions may, during their existence and
continuation, manage and use their properties which however must not be
transferred or used for guarantee.

    No organization or individual shall infringe on or occupy the properties
of educational institutions.

    Article 37  Educational institutions should determine the percentage of expenditure in wages and benefits of all categories of personnel
in the
constant expenses of running the educational institutions which should be
submitted to the organs of examination and approval for the record.

    The accumulated funds of educational institutions can only be used
to increase input into education and improve conditions in running the
educational institutions and must not be used for distribution and
extra-school investment.

    Article 38  Educational institutions should make financial and
accounting reports at the end of every accounting year, and entrust
auditing institutions of society to audit their financial and accounting
condition in accordance with the requirements of the organs of examination
and approval and submit the reports to the organs of examination and
approval for scrutiny.
Chapter V  Change and Disbandment of Educational Institutions

    Article 39  Changes in the name, nature and level of an educational
institution should be submitted to the organ of examination and approval
for approval; changes in other items should be submitted to the organ of examination and approval for the record.

    Article 40  Check-up of properties and final financial settlements
should be made in the merger of educational institutions, and the amalgamated
educational institution shall resettle the students in the previous
educational institutions in a satisfactory manner.

    Article 41  Educational institutions having any of the following
circumstances should be disbanded:

    (1)The board of directors or sponsor of an educational institution
requests disbandment in accordance with the provisions of the constitution
of the educational institution; and

    (2)Inability to carry on normal educational and teaching activities
on account of various reasons.

    Disbandment of an educational institution shall be subjected to the
verification and approval of the organ of examination and approval.

    Article 42  An educational institution should, in disbandment, resettle
the in-school students in a satisfactory manner, and the organ of examination
and approval may provide assistance. During disbandment of an educational
institution conducting compulsory education, the organ of examination and
approval should make arrangements for the in-school students receiving
compulsory education to continue their studies.

    Article 43  Clearing of properties should be carried out in accordance
with law in the disbandment of an educational institution.

    The educational institution should, in clearing, first of all pay the
salaries of teachers and staff members due and the social security expenses;
surplus properties of an educational institution after clearing, upon
returning or returning in terms of money the input of the sponsor, overall
arrangement shall be made by the organ of examination and approval for the
remaining portion to be used in the development of the cause of running
educational institutions with social resources.

    Article 44  An announcement shall be made by the organ of examination
and approval of the educational institution verified and approved for
disbandment which shall be notified to hand back the license for the
running of an educational institution and its seals and stamps that
should be kept in sealed storage.
Chapter VI  Security and Support

    Article 45  The departments concerned of People’s Governments at or above
the county level should provide support to the running of educational
institutions with social resources pursuant to the provisions of relevant
laws and regulations.

    Article 46  The departments of education administration, departments of labor administration and other conceerned departments of
People’s Governments
at or above the county level should give equal treatment to educational
institutions run with social resources as given to educational institutions
run by the State in professional guidance, teaching and research activities,
teacher management and citations and rewards.

    Article 47  For land required for the construction of educational
institutions, local People’s Governments at or above the county level should
integrate it into plans in accordance with the relevant provisions of the
State and in the light of actual conditions, handle it as land use for
non-profit undertakings, and may give priority to it in making the
arrangement.

    Article 48  Salaries, social security and benefits of teachers and
other educational workers of educational institutions shall be insured
by the educational institutions in accordance with law.

    The teaching age of special-subject teachers shall be calculated on
a continuous basis during their work in the educational institutions.

    Article 49  Students of educational institutions run with social
resources have equal rights as those of the educational institutions
run by the State in going to a higher grade, taking part in examinations
and social activities in accordance with law.

    The principle of orientation to society, equal competition and
employment on merit shall be followed in the employment of students of educational institutions, and employer units must not discriminate.
Chapter VII  Legal Responsibility

    Article 50  Whoever violates the provisions of the Education Law
in activities of running educational institutions with social resources
shall be penalized pursuant to the relevant provisions of the Education
Law.

    Article 51  A sponsor who makes false contribution to funds or withdraw
the funds after the establishment of the educational institution shall be
directed by the organ of examination and approval to amend; one
who refuses to amend shall be imposed a fine less than 200% of the amount he/she should have contributed or the amount he/she has
withdrawn; where the circumstances are serious, the organ of examination
and approval shall direct him/her to stop enrollment and revoke the license
for the running of an educational institution.

    Article 52  Whoever engages in the forgery, alteration and buying and
selling of licences for the running of educational institutions shall be
penalized by the public security organ according to the Penalties for
Violation of Public Security Regulations; one whose offence constitutes
a crime shall be investigated of the criminal responsibilities.

    Article 53  An educational institution which indulges in indiscriminate
collection of fees exceeding the verified items and rates shall be directed
by the organ of examination and approval to refund the fees overcharged
within the specified time period, and shall be penalized by the department
of finance and the department of price control according to relevant laws
and regulations.

    Article 54  An educational institution which fails to determine the
percentage of expenditure of salaries and benefits in the constant expenditure
of running the educational institution or fails to implement the percentage
determined, or use the accumulation for distribution or extra-school
investment shall be directed by the organ of examination and approval to
amend and may be administered a warning; where the circumstances are serious
or one who refuses to amend shall be directed by the organ of examination
and approval to stop enrollment, its license for the running of the
educational institution revoked or the educational institution taken over.

    Article 55  An educational institution where there is disorder in
administration, low quality in education and teaching resulting in pernicious
influences shall be directed by the organ of examination and approval to
consolidate within the specified time period, and may be administered a
warning; where the circumstances are serious or one which fails to meet
the requirements after consolidation shall be directed by the organ of examination and approval to stop enrollment, its license for
the running of the educational institution revoked or the educational institution taken
over.

    Article 56  An organ of examination and approval that indulges in
abuse of power and malpractices for selfish gains, or neglects administration
of the educational institutions approved by it resulting in serious
consequences, the person-in-charge bearing direct responsibilities and other
personnel directly responsible shall be imposed administrative sanctions
according to law; those whose offences constitute a crime shall be
investigated of the criminal responsibility according to law.

    An administrativ

MEASURES OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION OF PARTNERSHIP ENTERPRISE REGISTRATION

The State Council

Decree of the State Council of the People’s Republic of China

No. 236

Measures of the People’s Republic of China for the Administration of Partnership Enterprise Registration are hereby promulgated and
shall come into force as of the date of promulgation.

Premier of the State Council, Li Peng

November 19, 1997

Measures of the People’s Republic of China for the Administration of Partnership Enterprise Registration

Chapter I General Provisions

Article 1

These Measures are formulated in accordance with the Partnership Enterprise Law of the People’s Republic of China (hereinafter referred
to as the Partnership Enterprise Law) for the purpose of confirming the management qualifications of partnership enterprises and
standardizing the act of partnership enterprise registration.

Article 2

Formalities for enterprise registration shall be completed in pursuance of the provisions of the Partnership Enterprise Law and these
Measures for the establishment, change and nullification of a partnership enterprise.

Article 3

A partnership enterprise may engage in business operations only upon the approval and registration by the enterprise registration
organ in accordance with law and obtainment of a business license.

A partnership enterprise shall engage in business operations in accordance with law within the registration matters approved by the
enterprise registration organ.

Article 4

An organ of industry and commerce administration shall be the partnership enterprise registration organ (hereinafter referred to as
the enterprise registration organ).

The department of industry and commerce administration under the State Council shall take charge of the work of partnership enterprise
registration nationwide.

Municipal and county organs of industry and commerce administration shall be responsible for the partnership enterprise registration
in areas under their respective jurisdiction.

Chapter II Registration for the Establishment

Article 5

The qualifications prescribed inArticle 8 of the Partnership Enterprise Law shall be met for the establishment of a partnership enterprise.

Article 6

For the establishment of a partnership enterprise, the representative designated by all the partners or their jointly entrusted agent
shall apply to the enterprise registration organ for registration for the establishment thereof.

Article 7

The registration matters of a partnership enterprise shall include the name, business site, business scope, the mode of operations
of the partnership enterprise and the names of partners and their residences, amount of contribution and mode of contribution.

For any partnership enterprise that determines the partner conducting the affairs of the partnership enterprise or the establishment
of branch offices, the registration matters shall also include information on the partner conducting the affairs of the partnership
enterprise or the branch offices.

Article 8

The following documents shall be presented to the enterprise registration organ for the application for the establishment of a partnership
enterprise:

(1)

An application letter for the registration for the establishment signed by all partners;

(2)

Identification papers of all partners;

(3)

A letter of authority for the representative designated by all partners or the jointly entrusted agent;

(4)

The partnership agreement;

(5)

Certificates of contribution ownership rights;

(6)

Certificate of the business site; and

(7)

Other documents the presentation of which are prescribed by the department of industry and commerce administration under the State
Council.

For partnership enterprises the establishment of which are subject to examination and approval provided for by laws and administrative
regulations, relevant approval documents shall also be presented. For any partnership enterprise that agrees in the partnership agreement
or is decided by all partners to entrust one or several partners to conduct the affairs of the partnership enterprise, a letter of
authority of all partners shall also be presented.

Article 9

An enterprise registration organ shall, within 30 days from the date of receipt of all documents presented by an applicant pursuant
to the provisions ofArticle 8 of these Measures, make a decision of approval and registration or that of no registration.

Article 10

The date of issuance of a business license for a partnership enterprise shall be the date of establishment of the partnership enterprise.

Chapter III Change(s) in Registration

Article 11

An application for change(s) in registration shall be submitted to the original enterprise registration organ within 15 days from
the date of making the decision for change(s) or occurrence of the change(s)for the occurrence of change(s) in the registration matters
of a partnership enterprise.

Article 12

The following documents shall be presented to the original enterprise registration organ for the application for change(s) in registration
by a partnership enterprise:

(1)

An application letter for change(s) in registration;

(2)

The decision on change(s) signed all partners or the testimonial documents of the occurrence of change(s); and

(3)

Other documents the presentation of which are prescribed by the department of industry and commerce administration under the State
Council.

For change(s) in matters subject to examination and approval provided for by laws and administrative regulations, relevant approval
documents shall also be presented.

Article 13

An enterprise registration organ shall, within 30 days from the date of receipt of all documents in conformity with the provisions
ofArticle 12 of these Measures, make a decision of approval for change(s) in registration or that of no registration for the change(s).

The enterprise registration organ shall reissue a business license in the event of the change(s) in registration matters of a partnership
enterprise involving change(s) in the business license.

Chapter IV Nullification of Registration

Article 14

A partnership enterprise that is disbanded in pursuance of the provisions ofArticle 57 of the Partnership Enterprise Law shall, within
15 days from the date of completion of settlement, go through the formalities of nullification of registration at the original enterprise
registration organ.

Article 15

The following documents shall be presented when a partnership enterprise goes through the formalities of nullification of registration:

(1)

An application letter for the nullification of registration signed by all partners;

(2)

The settlement statement signed by all partners; and

(3)

Other documents the presentation of which are prescribed by the department of industry and commerce administration under the State
Council.

A partnership enterprise shall hand in the business license when going through the formalities of nullification of registration.

Article 16

A partnership enterprise is terminated upon nullification of registration by an enterprise registration organ.

Chapter V Registration of Branch Office(s)

Article 17

A partnership enterprise shall apply to the enterprise registration organ of the locality wherein the branch office(s) is (are) located
for the registration for the establishment of a branch office(s).

Article 18

The registration matters of a branch office shall include the name, business site, business scope, mode of operations of the branch
office and the name and residence of the responsible person of the branch office.

The business scope and mode of operations of a branch office shall not exceed those of the partnership enterprise.

Article 19

The following documents shall be presented to the enterprise registration organ for the establishment of a branch office by a partnership
enterprise:

(1)

An application letter for the registration for the establishment of a branch office;

(2)

The decision for the establishment of a branch office signed by all partners;

(3)

A copy of the business license of the partnership enterprise with the seal of the enterprise registration organ affixed;

(4)

A letter of authority for the responsible person entrusted by all partners to conduct the affairs of the branch office and his/her
identification papers;

(5)

Certificate of the business site; and

(6)

Other documents the presentation of which are prescribed by the department of industry and commerce administration under the State
Council.

For a partnership enterprise whose establishment of a branch office is subject to examination and approval as provided for under laws
and administrative regulations, relevant approval documents shall also be presented.

Article 20

Application by a partnership enterprise for change(s) in registration or nullification of registration of its branch office shall
be handled with reference to the provisions governing change(s) in registration and nullification of registration of partnership
enterprises of these Measures.

Chapter VI Annual Inspection and License Management

Article 21

Partnership enterprises shall, pursuant to the requirements of enterprise registration organs, present annual inspection reports and
other documents within the specified time and be subject to annual inspection.

Article 22

Enterprise registration organs shall examine the annual inspection documents presented by partnership enterprises to confirm their
qualifications for continued operations.

Article 23

The business license of a partnership enterprise has an original copy and a copy. The original copy and the copy are equally authentic
legally.

A partnership enterprise may, according to business requirements, apply to the enterprise registration organ for the issuance of a
number of copies of the business license.

A partnership enterprise shall place the original copy of the business license in an eye-catching position at the business site.

Article 24

No unit or individual shall forge, alter, sell, lease, lend or transfer the business license in other forms.

In the event of loss or damage of the business license, a partnership enterprise shall publish a statement to declare it null and
void in the newspaper designated by the enterprise registration organ and apply to the enterprise registration organ for obtainment
of a new license or change the license.

Article 25

Formats of the original copy and the copy of business license of partnership enterprise shall be formulated by the department of industry
and commerce administration under the State Council.

Chapter VII Legal Liability

Article 26

Whoever engages in business operations in the name of a partnership enterprise without the approval and registration of the enterprise
registration organ in accordance with law and obtainment of a business license shall be ordered by the enterprise registration organ
to stop the business operations and may be imposed a fine of less than RMB 5000 Yuan.

Article 27

Whoever presents fake documents or adopt other fraudulent means in going through partnership enterprise registration for the obtainment
of partnership enterprise registration shall be ordered by the enterprise registration organ to make a rectification and may be imposed
a fine of less than RMB 5000 Yuan; where the circumstances are serious, the enterprise registration shall be nullified and the business
license revoked.

Article 28

Whoever fails to go through change(s) in registration in accordance with the provisions of these Measures in the event of change(s)in
registration matters of a partnership enterprise shall be ordered by the enterprise registration organ to make a rectification within
the specified time; whoever fails to go through change(s) in registration on expiry of the specified time shall be imposed a fine
of less than RMB 2000 Yuan.

Article 29

The settler of a partnership enterprise who fails to submit the settlement statement to the enterprise registration organ or conceal
important facts or there are major omissions in the settlement statement submitted shall be ordered by the enterprise registration
organ to make a rectification.

Article 30

A partnership enterprise that fails to go through the nullification of registration upon disbandment and completion of settlement
shall be revoked of its business license by the enterprise registration organ.

Article 31

A partnership enterprise that fails to accept annual inspection pursuant to the provisions of these Measures shall be ordered by the
enterprise registration organ to accept annual inspection within the specified time and may be imposed a fine of less than RMB 3000
Yuan; a partnership enterprise that fails to accept annual inspection on expiry of the specified time shall be nullified of its registration
and revoked of the business license.

Article 32

A partnership enterprise that conceals the truth and indulges in fraudulent practices in annual inspection shall be ordered by the
enterprise registration organ to make a rectification and may be imposed a fine of less than RMB 3000 Yuan.

Article 33

A partnership enterprise that fails to place the original copy of its business license in an eye-catching position at the business
site shall be ordered by the enterprise registration organ to make a rectification within the specified time.

Article 34

A partnership enterprise that leases, lends or transfers the business license in other forms shall be ordered by the enterprise registration
organ to make a rectification and may be imposed a fine of less than RMB 5000 Yuan; where the circumstances are serious, registration
of the enterprise shall be nullified and the business license shall be revoked.

Any lessee, borrower or transferee in other forms of the business license that engages in business operations shall be ordered by
the enterprise registration organ to stop the business operations and may be imposed a fine of less than RMB 5000 Yuan.

Article 35

Any functionary of enterprise registration organs who abuses power, indulges in self-seeking misconducts, accepts bribes or infringes
on the legitimate rights and interests of partnership enterprises which constitute a crime shall be investigated of criminal liability;
where no crime has been constituted, administrative sanctions shall be administered according to law.

Chapter VIII Supplementary Provision

Article 36

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

The State Council
1997-11-19

12 3...15 Page 1 of 15

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CONSTITUTION ACT, 1982 – page 22

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

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

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2003

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING THE EXTENSION OF THE GRACE PERIOD OF TAX-EXEMPTION...

CIRCULAR OF THE PEOPLE’S BANK OF CHINA ON ISSUING THE REGULATION ON ADMINISTRATION OF DOMESTIC FOREIGN EXCHANGE ACCOUNT

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE SETTLEMENT OF THE TAXPAYERS OBTAINING THE FALSE SPECIAL INVOICE OF VALUE-ADDED TAX WITHOUT ACKNOWLEDGE

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING APPROVAL OF THE SUGGESTION ON THE CONCLUSION OF THE WORK OF THE PREPARATORY COMMITTEE OF THE HONGKONG SPECIAL ADMINISTRATIVE REGION OF THE NATIONAL PEOPLE’S CONGRESS

CIRCULAR OF THE STATE COUNCIL ON THE APPROVAL AND TRANSMISSION OF THE SCHEME FOR EXPERIMENT ON THE REFORM OF SMALL TOWNSHIP CENSUS REGISTER CONTROL SYSTEM AND ON THE SUGGESTIONS ON THE PERFECTION OF RURAL CENSUS REGISTER CONTROL SYSTEM OF THE MINISTRY OF PUBLIC SECURITY

URGENT CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING IMMEDIATE TERMINATION OF UNAUTHORIZED LOCAL EXAMINATION AND APPROVAL OF COMMERCIAL ENTERPRISES WITH FOREIGN INVESTMENT

NATIONAL DEFENCE

REGULATIONS ON INSPECTION CONDUCTED BY THE CUSTOMS

CIVIL AIR DEFENSE LAW OF THE PEOPLE’S REPUBLIC OF CHINA

CURRENT CATALOGUE OF KEY INDUSTRIES, PRODUCTS AND TECHNOLOGIES THE DEVELOPMENT OF WHICH IS ENCOURAGED BY THE STATE (PROVISIONAL)

REGULATIONS ON THE RUNNING OF EDUCATIONAL INSTITUTIONS WITH SOCIAL RESOURCES

MEASURES OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION OF PARTNERSHIP ENTERPRISE REGISTRATION

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

Category	CUSTOMS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1997-01-03	Effective Date	1997-01-03

Category	GENERAL	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1997-12-31	Effective Date	1997-12-31

Category	EDUCATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1997-07-31	Effective Date	1997-10-01