2003

PRICE LAW

Category  PRICE Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1997-12-29 Effective Date  1998-05-01  


Price Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Price Acts of the Operators
Chapter III  The Government’s Pricing Act
Chapter IV  Regulation and Control of Overall Price Level
Chapter V  Price Supervision and Inspection
Chapter VI  Legal Liability
Chapter VII  Supplementary Provisions

(Adopted at the 29th Meeting of the Standing Committee of the Eighth National People’s Congress on December 29, 1997 and promulgated
by Order No. 92 of the President of the People’s Republic of China)

Contents
Chapter I  General Provisions
Chapter II  Price Act of the Operator
Chapter III Pricing Act of the Government
Chapter IV  Regulation and Control of Overall Price Level
Chapter V  Supervision and Inspection over Price
Chapter VI  Legal Liability
Chapter VII  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted with a view to standardizing the price
acts, giving play to the role of price in the rational allocation of
resources, stabilizing the overall price level of the market, protecting
the lawful rights and interests of the consumers and operators and promoting
the sound development of the socialist market economy.

    Article 2  This Law shall be applicable to price acts taking place
within the territory of the People’s Republic of China.

    The prices referred to in this Law include the prices of commodities and
the prices of services.

    The prices of commodities mean the prices of all kinds of visible products
and invisible assets.

    The prices of services mean collection of fees for all kinds of paid-for
services.

    Article 3  The State practises and gradually perfects the price mechanism
shaped mainly by the market under macro economic regulation and control.
Determination of prices shall be in line with the law of value, prices
of most commodities and services shall be the market-regulated prices and
prices of an extremely small number of commodities and services shall be
the government-guided prices or the government-set prices.

    Market-regulated prices mean those prices determined autonomously by the
operators and formed through market competition.

    The operators referred to in this Law mean the legal persons, other
organizations or individuals engaging in the production and management of commodities or provision of paid services.

    Government-guided prices mean those prices determined to guide the
operators by the competent departments of price of the government or other
departments concerned, the baseline prices and their range of fluctuations
in accordance with the pricing authority and scope in pursuance of the
provisions of this Law.

    Government-set prices mean those prices determined by the competent
departments of price of the government or other departments concerned
in accordance with the pricing authority and scope in pursuance of the
provisions of this Law.

    Article 4  The State supports and promotes fair, open and lawful
market competition, maintains normal price order and carries out
administration, supervision and necessary regulation and control over
price activities.

    Article 5  The competent department of price under the State Council
shall be uniformly responsible for the work related to prices nationwide.
Other departments concerned under the State Council shall be responsible
for the work related to prices concerned within their respective functions,
responsibilities and scope.      

    The competent departments of price under local people’s governments
at or above the county level shall be responsible for the work related to
prices within their respective administrative areas. Other departments
concerned under local people’s governments at or above the county level
shall be responsible for the work related to prices concerned within their
respective functions and responsibilities.
Chapter II  Price Acts of the Operators

    Article 6  Market regulated prices shall be practised and determined
autonomously by the operators in pursuance of this Law for commodity prices
and services prices except those to which government-guided prices and
government-set prices shall apply pursuant to the provisions of Article 18
of this Law.

    Article 7  The operators shall, in determining prices, abide by
the principle of fairness, being in conformity with law, honesty and
credibility.

    Article 8  Production and management costs and market supply and demand
situation shall be the fundamental basis for the determination of prices
by the operators.

    Article 9  The operators shall exert efforts to improve the administration
of production and management, reduce the cost of production and management,
provide commodities and services for the consumers at reasonable prices and
gain lawful profits in market competition.

    Article 10  The operators shall, in accordance with their management
conditions, establish and perfect internal price control system, accurately
record and verify the production and management costs of commodities and
services and must not indulge in fraudulent practices.

    Article 11  The operators have the following rights in the conduct of price activities:

    (1)autonomous determination of prices under market regulation;

    (2)determination of prices within the range prescribed by government-
guided prices;

    (3)determination of prices for trial sale of new products within the
scope of products of government-guided prices and government-set prices
with the exception of specific products; and

    (4)report or filing a charge against acts infringing on his/her right
of autonomous determination of prices in accordance with law.    

    Article 12  The operators shall, in conducting price activities, abide
by laws and regulations, and observe the intervention measures and
emergency measures of government-guided prices, government-set prices and
legal prices determined in accordance with law.

    Article 13  The operators shall, in selling, procuring commodities and
providing services, display the clearly marked price in accordance with the
provisions of the competent departments of price of the government, annotate
relevant information such as the name, place of manufacture, specifications,
grade, unit of price calculation and price of a commodity or the services
item and rates.

    The operators shall not sell commidities with additional price besides
the marked price and shall not collect any fee not indicated.

    Article 14  The operators shall not commit the following unfair price
acts:

    (1)manipulation of market price in collusion to the detriment of the lawful rights and interests of other
operators or consumers;

    (2)dumping at the lower-than-the-cost price and disrupting the normal
production and management order to the detriment of national interests or
the lawful rights and interests of other operators for the purpose of squeezing out other competitors or of sole occupancy of the
market
in addition to the disposal of such commodities as fresh and living
commodities, seasonal commodities and overstocked commodites at reduced
prices in accordance with law;

    (3)concoction and spreading of price-hike information, jacking up
prices and pushing up over rise in commodities prices;

    (4)luring consumers or other operators to conclude transactions with it
by employing falsified or misleading price means;

    (5)practising price discrimination towards other operators with
identical trading conditions in providing identical commodities or services;

    (6)procuring, selling commodities or providing services at prices
raised or reduced in disguised form by adopting such means as raisisng or
lowering the grade;

    (7)seeking exorbitant profits in violation of the provisions of laws
and regulations; and

    (8)other unfair price acts prohibited by laws and administrative
regulations.

    Article 15  All types of intermediate agencies shall abide by the
provisions of this Law in the collection of fees in providing paid-for
services. Where laws have other provisions, the relevant provisions shall
be observed.

    Article 16  The operators shall abide by the relevant provisions of this Chapter and maintain the order of the domestic market in
selling
import commodities and procuring export commodities.

    Article 17  Industries organizations shall abide by price laws,
regulations and strengthen price self-discipline and accept the
guidance in the work by the competent departments of price of the
government.
Chapter III  The Government’s Pricing Act

    Article 18  The government may enforce government-guided prices or
government-set prices when necessary for the prices of the following
commodities and services:

    (1)the prices of an extremely small number of commodites vital
for the development of the national economy and people’s life;

    (2)the prices of a small number of commodities the resources of which
are rare or short;

    (3)the prices of commodities under natural monopoly management;

    (4)the prices of essential public utilities; and

    (5)the prices of essential non-profit services.

    Article 19  The pricing catalogs of the Central Government and local
governments shall be the basis for the pricing authority and specific
applicable scope of government-guided prices and government-set prices.

    The Central Pricing Catalog shall be compiled and revised by the
competent department of price under the State Council and published upon
approval of the State Council after submission.

    Local Pricing Catalogs shall be compiled by the competent departments
of price of people’s governments of the provinces, autonomous regions and
municipalities directly under the Central Government in pursuance of the
pricing authority and specific applicable scope provided for in the Central
Pricing Catalog and published upon examination and finalization of the
competent department of price under the State Council after the verification
and approval of the people’s governments at the corresponding level.

    Local people’s governments at all levels below people’s governments of the provinces, autonomous regions
and municipalities under the Central
Government shall not compile pricing catalogs.

    Article 20  The competent department of price and other departments
concerned under the State Council shall determine the government-guided
prices and government-set prices in pursuance of the pricing authority
and the specific applicable scope provided for in the Central Pricing Catalog;
among which the government-guided prices and government-set prices of the
prices of essential commodities and services shall be submitted to the
State Council for approval in accordance with provisions.

    The competent departments of price and other departments concerned of people’s governments of the provinces,
autonomous regions and municipalities
directly under the Central Government shall determine the government-guided
prices and government-set prices for implementation in their respective areas
in pursuance of the pricing authority and specific applicable scope provided
for in Local Pricing Catalogs.

    Municipal and county people’s governments may, in accordance with the
authorization of people’s governments of the provinces, autonomous regions
and municipalities directly under the Central Government and in pursuance of the pricing authority and specific applicable scope
provided for in Local
Pricing Catalogs, determine the government-guided prices and government-set
prices for implementation in their respective areas.

    Article 21  Determination of the government-guided prices and government-
set prices shall be based on the average costs of society and market supply
and demand situation of relevant commodities or services, requirements of national economic and social development and tolerance
of society and
difference in prices in procurement and marketing, wholesale and retail,
regions and seasons shall be followed.

    Article 22  Competent departments of price and other departments concerned
of the government shall, in determining the government-guided prices and
government-set prices, conduct price and cost survey and solicit the views
of the consumers, operators and the quarters concerned.

    When the competent departments of price of the government conduct price
and cost survey of the government-guided prices and government-set prices,
the units concerned shall truthfully report the information and provide
necessary account books, documents as well as other materials.

    Article 23  The system of testimony shall be established under the
chairmanship of the competent departments of price of the government to
solicit the views of the consumers, operators and the quarters concerned
to authenticate its necessity and feasibility in determining the government-
guided prices and government-set prices of the prices of public utilities,
prices of nonprofit services and prices of commodities under natural monopoly
management which involve the vital interests of the masses.  

    Article 24  The government-guided prices and government-set prices shall,
upon determination, be released by the department determining the prices to
the consumers and operators.

    Article 25  The specific applicable scope and price level of the
government-guided prices and government-set prices shall be adjusted at
an appropriate time in the light of the economic performance and in
pursuance of the pricing authority and procedures provided for.

    The consumers and operators may come up with proposals for adjustment
of the government-guided prices and government-set prices.
Chapter IV  Regulation and Control of Overall Price Level

    Article 26  Stabilization of the overall market price level constitutes
an important macro-economic policy goal of the State. The State determines
the regulatory goals of the overall market price level on the basis of the
requirements of the development of the national economy and tolerance of society, integrate them into the national economic and social
development
plan and bring about their realization through comprehensive employment of monetary, fiscal, investment, import-export and other
policies and measures.

    Article 27  The government may establish essential commodities reserve
system and establish the price regulatory fund to regulate prices and
stabilize the market.

    Article 28  To keep up with the requirements of price regulation and
administration, the competent departments of price of the government should
establish the price monitoring system to monitor the change in prices of essential commodities and services.

    Article 29  The government may bring into effect the protective prices
in procurement when the market purchasing prices of such essential farm
produce as foodgrains and other produce are too low, and adopt corresponding
economic measures to guarantee its realization.

    Article 30  When there is a marked rise in the prices of essential
commodities and services or there exists the possibility of a marked rise,
the State Council and people’s governments of the provinces, autonomous
regions and municipalities directly under the Central Government may take
such intervention measures as restricting the price differential ratio or
profit ratio, prescribe the restricted price, practise the price rise
submission system and the price adjustment record system with respect to
part of the prices.

    People’s governments of the provinces, autonomous regions and
municipalities directly under the Central Government shall, in adopting
the intervention measures prescribed in the preceding paragraph, submit
the same to the State Council for the record.

    Article 31  When drastic fluctuations and other abnormal conditions
occur in the overall market price level, the State Council may take
emergency measures of temporarily concentrated pricing authority, partial
or comprehensive price freeze nationwide or in parts of the regions.

    Article 32  Upon elimination of the circumstances for the implementation
of the intervention meausres and emergency measures in pursuance of the
provisions of Articles 30 and 31 of this Law, the intervention measures
and emergency measures shall be lifted in time.
Chapter V  Price Supervision and Inspection

    Article 33  The competent departments of price of people’s governments
at or above the county level shall conduct supervision and inspection over
price activities in accordance with law and impose administrative sanctions
against law-breaking acts in price in pursuance of the provisions of this Law.

    Article 34  The competent departments of price of the government may,
in conducting price supervision and inspection, exercise the following
powers:

    (1)inquire the interested party or the person involved and demand that
he/she provides testimonial materials and other information relating to
law-breaking acts in price;

    (2)inquire into and duplicate the account books, invoices, vouchers,
documents and other materials relating to law-breaking acts in price, and
check the bank information relating to law-breaking acts in price;

    (3)investigate the properties relating to law-breaking acts in price,
and may order the interested party to suspend the relevant business when
necessary; and

    (4)may register for safekeeping in advance under circumstances
that the evidences may be destroyed and lost or may be difficult to obtain
later, the interested party and the person involved must not transfer,
conceal or destroy the same.  

    Article 35  When subject to the supervision and inspection of the
competent departments of price of the government, the operators should
truthfully provide the account books, invoices, vouchers, documents and
other materials necessary for supervision and inspection.

    Article 36  Functionaries in charge of price of government departments
must not use the materials or information obtained in accordance with law
for any purposes other than price control in accordance with law and must
not divulge the business secrets of the interested party.

    Article 37  Consumer organizations, price supervision organizations of workers and staff members, neighborhood committees, villagers’
committees
and other organizations as well as the consumers have the right to conduct
social supervision over price activities. The competent departments of price
of the government should give full play to the supervisory role of the masses
in price.

    Media units have the right to exercise supervision over price through
public opinion.

    Article 38  The competent departments of price of the government should
establish the reporting system of law-breaking acts in price.

    All units and individuals have the right to report on law-breaking acts
in price. The competent departments of price of the government should give
encouragement to the informants and be responsible to keep the secret for
the informants.        
Chapter VI  Legal Liability

    Article 39  Any operator who fails to implement the government-guided
prices, government-set prices and legal price intervention measures and
emergency measures shall be ordered to make a rectification, confisticated
of the illegal gains and may be concurrently imposed a fine of less than
five times of the illegal gains; where there is no illegal gains, a fine
may be imposed; where the circumstances are serious, an order shall be
issued for the suspension of business operations for consolidation.

    Article 40  Any operator who commits any of the acts listed in Article
14 of this Law shall be ordered to make a rectification, confisticated of the illegal gains and may be concurrently imposed a fine
of less than five
times of the illegal gains; where there is no illegal gains, a warning
shall be administered and a fine may be imposed; where the circumstances
are serious, an order shall be issued for the suspension of business
operations for consolidation, or the business license revoked by the
agency of industry and commerce administration. In the case of separate
provisions of relevant laws on penalties and penalty authorities for acts
listed in Article 14 of this Law, the provisions of relevant laws may be
observed.

    Acts listed in Item (1) and Item (2) of Article 14 of this Law national
in nature shall be confirmed by the competent department of price under the
State Council; those of the provinces and below the provinces regional in
nature shall be confirmed by the competent departments of price of people’s
governments of the provinces, autonomous regions and municipalities directly
under the Central Government.

    Article 41  Any operator who causes consumers or other operators to pay
more prices for illegal price acts should refund the portion overpaid;
where damage has been caused, liability for compensation shall be borne
according to law.

    Article 42  Any operator who violates the provision of clearly marking
prices shall be ordered to make a rectification, confisticated of the illegal
gains and may be concurrently imposed a fine of less than RMB 5,000 Yuan.

    Article 43  Any operator who has been ordered to suspend relevant
business operations but does not suspend the operations, or transfers,
conceals and destroys properties registered for safekeeping in accordance
with law shall be imposed a fine of more than 100% less than three times
of the relevant business revenue or of the value of the properties
transferred, concealed or destroyed.

    Article 44  Whoever refuses to provide information required for
supervision and inspection in accordance with the provisions or provides
false information shall be ordered to make a rectification and administered
a warning; whoever fails to make a rectification on expiry of the specified
time period may be imposed a fine.

    Article 45  Local people’s governments at all levels or the departments
concerned of people’s governments at all levels that violate the provisions
of this Law, overstep the pricing authority and scope in determining and
adjusting prices without authorization or fail to implement the legal price
intervention measures and emergency measures shall be ordered to make a
rectification and may be criticized in a circular; the person-in-charge
held directly responsible and other persons directly responsible shall be
given administrative sanctions according to law.

    Article 46  Any functionary in charge of price who divulges state secrets,
business secrets and abuses power, indulges in self-seeking misconducts,
neglects duties, extorts and accepts bribes consituting a crime shall be
investigated of the criminal liability in accordance with law; where a crime
has not been constituted, sanctions shall be imposed according to law.
Chapter VII  Supplementary Provisions

    Article 47  Fee collection by state administrative agencies should be
effected in accordance with law, items for fee collection put under stringent
control and scope of fee collection and rates restricted. Specific control
measures for fee collection shall be worked out separately by the State
Council.

    Provisions of relevant laws and administrative regulations apply to
interest rates, exchange rates, premium rates, and securities and futures
prices, and this Law shall not be applicable thereto.

    Article 48  This Law shall enter into force as of May 1, 1998.






REGULATIONS FOR THE IMPLEMENTATION OF THE TOBACCO MONOPOLY

Category  TOBACCO MONOPOLY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-07-03 Effective Date  1997-07-03  


Regulations for the Implementation of the Law of the People’s Republic of China on Tobacco Monopoly

Chapter I  General Provisions
Chapter II  The Tobacco Monopoly Licence
Chapter III  Plantation, Purchase and Allocation of Leaf Tobacco
Chapter IV  Production of Tobacco Products
Chapter V  Sale of Tobacco Products
Chapter VI  Transportation of Tobacco Monopoly Products
Chapter VII  Production and Sale of Cigarette Paper, Filter Rods,
Chapter VIII  Import-export Trade and Foreign Economic and Technological
Chapter IX  Supervision and Inspection
Chapter X  Legal Responsibilities
Chapter XI  Supplementary Provisions

(Promulgated by Decree No. 223 of the State Council of the People’s

Republic of China on July 3, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in accordance with of the People’s Republic of China on Tobacco Monopoly>(hereinafter referred
to as ).

    Article 2  Tobacco monopoly means that the State practises the system of
monopoly operations and unified control over the production, sales and import-
export businesses of tobacco monopoly products.

    Article 3  The cut tobacco in tobacco monopoly products refers to
commodities in cuts, dust and granule processed with leaf tobacco, redried
leaf tobacco and leaf tobacco slices as raw materials.

    Article 4  For performance of functions, responsibilities and leadership
system of the department of tobacco monopoly administration under the State
Council and the departments of tobacco monopoly administration of the
provinces, autonomous regions and municipalities directly under the Central
Government, the provisions of Article 4 of shall
be observed. Municipalities and counties with established departments of
tobacco monopoly administration, the municipal and county departments of
tobacco monopoly administration shall take charge of the work of tobacco
monopoly within their respective administrative areas and be subject to the
dual leadership of the department of tobacco monopoly administration at the
next higher level and the People’s Government at the same level, with the
department of tobacco monopoly administration at the next higher level as
the main leading body.

    Article 5  The State exercises control over the tar content in cigarettes
and cigars and main additives for cigarettes and cigars. Tobacco products
production enterprises must not use hazardous additives and pigments in
violation of the relevant provisions of the State.
Chapter II  The Tobacco Monopoly Licence

    Article 6  Anyone engaging in the production, wholesale and retail
businesses, operating tobacco monopoly products import-export businesses
and operating foreign tobacco products purchasing-marketing businesses must,
in pursuance of the provisions of and these
Regulations, apply for and obtain a tobacco monopoly licence.

    Tobacco monopoly licences are divided into:

    (1)tobacco monopoly production enterprise licence;

    (2)tobacco monopoly wholesale enterprise licence;

    (3)tobacco monopoly retail licence; and

    (4)special tobacco monopoly operating enterprise licence.

    Article 7  For the obtainment of a tobacco monopoly production enterprise
licence, the following conditions should be met:

    (1)having appropriate funds for the production of tobacco monopoly
products;

    (2)having the required conditions of technology and equipment for the
production of tobacco monopoly products;

    (3)compliance with the requirements of the industrial policy of the State
on the tobacco industry; and

    (4)other conditions prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 8  For the obtainment of a tobacco monopoly wholesale enterprise
licence, the following conditions should be met:

    (1)having adequate funds for operating tobacco monopoly products
wholesale business;

    (2)having a fixed site for the operations and necessary specialized
staff;

    (3)compliance with requirements for rational distribution of tobacco
monopoly wholesale enterprises; and

    (4)other conditions prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 9  For the obtainment of a tobacco monopoly retail licence,
the following conditions should be met:

    (1)having adequate funds for operating tobacco monopoly products retail
business;

    (2)having a fixed site for the operations;

    (3)compliance with requirements for rational distribution of tobacco
monopoly products retail points; and

    (4)other conditions prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 10  For the obtainment of a special tobacco monopoly operating
enterprise licence, the following conditions should be met:

    (1)having adequate funds for operating special tobacco monopoly products
business;

    (2)having a fixed site for the operations and necessary specialized
staff;

    (3)compliance with requirements for rational distribution of operating
foreign tobacco monopoly products business; and

    (4)other conditions prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 11  The departments of tobacco monopoly administration issue
tobacco monopoly licences and transportation permits for tobacco monopoly
products and exercise control pursuant to the provisions of Monopoly Law> and these Regulations.

    Article 12  Applicants for the obtainment of tobacco monopoly production
enterprise licences should submit their applications to the departments of tobacco monopoly administration of the provinces, autonomous
regions and
municipalities directly under the Central Government(hereinafter referred
to as at the provincial level), departments of tobacco monopoly administration
at the provincial level shall examine the same and make remarks thereon and
submit the same to the department of tobacco monopoly administration under the
State Council for examination and approval and issuance of licences.

    Article 13  Applicants for the obtainment of tobacco monopoly wholesale
enterprise licences for transregional operations in provinces, autonomous
regions and municipalities directly under the Central Government should
submit their applications to the departments of tobacco monopoly
administration at the provincial level which shall examine the same and offer
their remarks thereon and submit the same to the department of tobacco
monopoly administration under the State Council for examination and approval
and issuance of licences.

    Applicants for the obtainment of tobacco monopoly wholesale enterprise
licences for operations within the jurisdiction of a province, an autonomous
region or a municipality directly under the Central Government should submit
their applications to the departments of tobacco monopoly administration of the localities wherein the enterprises are located which
shall examine the
same and offer their remarks thereon and submit the same to the departments
of tobacco monopoly administration at the provincial level for examination
and approval and issuance of licences.

    Article 14  Applications for the obtainment of tobacco monopoly retail
licences shall be handled pursuant to the provisions of Law>.

    Article 15  Applicants for the obtainment of special tobacco monopoly
operating enterprise licences for operating tobacco monopoly products
import-export business and operating foreign tobacco products purchasing-
marketing business should submit their applications to the departments of
tobacco monopoly administration at the provincial level which shall examine
the same and sign their remarks thereon and submit the same to the department
of tobacco monopoly administration under the State Council for examination
and approval and issuance of licences.

    Applicants for the obtainment of special tobacco monopoly operating
enterprise licences for operating duty-free foreign tobacco products
purchasing-marketing business in customs supervision zones should submit
their applications to the departments of tobacco monopoly administration
of the localities wherein the enterprises are located which shall examine
the same and sign remarks thereon for submission to the departments of
tobacco monopoly administration at the provincial level for examination
and approval and issuance of licences.

    Article 16  Issuing organs of tobacco monopoly licences can carry out
regular or irregular inspections of the enterprises and individuals having
obtained tobacco monopoly licences. Those found to be not in compliance with
the conditions prescribed by and these Regulations
in inspections, issuing organs of tobacco monopoly licences can direct them
to suspend tobacco monopoly operations for consolidation and go so far as to
revoke their qualifications in engaging in tobacco monopoly business.

    Specific control measures for tobacco monopoly licences shall be worked
out by the department of tobacco monopoly administration under the State
Council in accordance with the provisions of these Regulations.
Chapter III  Plantation, Purchase and Allocation of Leaf Tobacco

    Article 17  The department of tobacco monopoly administration under the
State Council works out the leaf tobacco planting plan in conjunction with
the People’s Governments of the provinces, autonomous regions and
municipalities directly under the Central Government concerned according to
the State plan, in accordance with the requirements of rational distribution
and the principle of using good seeds, regional grouping and standardization.

    Article 18  Leaf tobacco shall be unifiedly purchased by the tobacco
companies or their entrusted agencies according to law. The tobacco companies
or their entrusted agencies may, in accordance with requirements, set up
leaf tobacco purchasing stations(points) in areas where the State has
assigned leaf tobacco purchasing plans for the purchase of leaf tobacco.
Establishment of leaf tobacco purchasing stations(points) shall be subject
to the approval of the departments of tobacco monopoly administration at the
provincial level. No unit or individual shall purchase leaf tobacco without
approval.

    Article 19  Local departments of tobacco monopoly administration organize
the departments concerned at the same level and representatives of leaf
tobacco producers in the formation of leaf tobacco grading groups to
coordinate grading in leaf tobacco purchase.

    Article 20  Plans for State reserve and export of leaf tobacco and
leaf tobacco allocation plans shall be assigned by the planning department
under the State Council.
Chapter IV  Production of Tobacco Products

    Article 21  Establishment of tobacco products production enterprises
should be submitted by the departments of tobaco monopoly administration at
the provincial level to the department of tobacco monopoly administration
under the State Council for approval, with the acquisition of tobacco monopoly
production enterprise licences and registration upon verification and
approval at the departments of industry and commerce administration.

    Article 22  Tobacco products production enterprises must strictly
implement the production plans assigned by the State.

    Article 23  Use of stale leaf tobacco for the production of cigarettes,
cigars and cut tobacco is prohibited.

    Article 24  Cigarettes, cigars and packed cut tobacco should use
registered trademarks; applications for the registration of trademarks
should proceed with the approval documents for production issued by the
department of tobacco monopoly administration under the State Council in
accordance with law.
Chapter V  Sale of Tobacco Products

    Article 25  Enterprises with acquisition of tobacco monopoly wholesale
enterprise licences should engage in tobacco products wholesale business
within the business scope and regional boundary prescribed in the licences.

    Enterprises or individuals with acquisition of tobacco monopoly retail
licences should purchase the merchandise at local tobacco monopoly wholesale
enterprises and be subject to the supervision and control of the issuing
organs of tobacco monopoly licences.

    Article 26  Any unit or individual selling more than 50 cartons of cigarettes or cigars at a time without a tobacco monopoly wholesale
enterprise
licence shall be construed as engagement in tobacco products wholesale
business without a tobacco monopoly wholesale enterprise licence.

    Article 27  No unit or individual shall sell illegally produced tobacco
products.

    Article 28  Tobacco monopoly production enterprises and tobacco monopoly
wholesale enterprises must not supply tobacco products to any unit or
individual without tobacco monopoly retail licences.

    Article 29  Cigarettes and cigars sold within the territory of China
should indicate grades of tar content and “Smoking is hazardous to your
health” in the Chinese language on the packs and cartons.

    Article 30  Whenever necessary, the department of tobacco monopoly
administration under the State Council may, in the light of the market
supply and demand, assign appropriation tasks for cigarettes and cigars
among the provinces, autonomous regions and municipalities directly under
the Central Government.

    Article 31  Sale of stale and foul tobacco products is strictly
prohibited. Stale and foul tobacco products shall be destroyed under the
supervision of the departments of tobacco monopoly administration or the
departments of administration concerned.

    Article 32  Tobacco products with counterfeit trademarks intercepted by
departments concerned according to law should be handed over to departments
of tobacco monopoly administration for open destruction pursuant to
relevant provisions of the State and sale thereof in any form is prohibited.

    Article 33  Identification, inspection and testing of tobacco products
with counterfeit trademarks shall be carried out by the tobacco quality
inspection and testing stations designated by the department of product
quality supervision and control under the State Council and the departments
of product quality supervision and control of the People’s Governments of the provinces, autonomous regions and municipalities directly
under the
Central Government.
Chapter VI  Transportation of Tobacco Monopoly Products

    Article 34  Tobacco monopoly product transportation permits shall be
issued upon examination and approval by the departments of tobacco monopoly
administration above the provincial level or by their authorized agencies.
Control measures for tobacco monopoly product transportation permits shall
be worked out by the department of tobacco monopoly administration under the
State Council.

    Article 35  Cross-boundary transportation of import tobacco monopoly
products, Chinese-made special-purpose tobacco machinery, cigarette tow,
filter rods and import cut cigarette paper across the provinces, autonomous
regions and municipalities directly under the Central Government should go
through consignment for shipment or shipment on one’s own against the tobacco
monopoly product tranportation permits issued by the department of tobacco
monopoly administration under the State Council or its authorized agencies.

    Cross-boundary transportation of other Chinese-made tobacco monopoly
products other than Chinese-made special-purpose tobacco machinery, cigarette
tow, filter rods and import cut cigarette paper across the provinces,
autonomous regions and municipalities directly under the Central Government
should go through consignment for shipment or shipment on one’s own against
the tobacco monopoly product transportation permits issued by the department
of tobacco monopoly administration under the State Council or departments of
tobacco monopoly administration at the provincial level.

    Cross-city, cross-county transportation of tobacco monopoly products
within the provinces, autonomous regions and municipalities directly under
the Central Government should go through consignment for shipment or
shipment on one’s own against the tobacco monopoly product transportation
permits issued by departments of tobacco monopoly administration at the
provincial level or their authorized agencies.

    Transportation of smuggled tobacco monopoly products confisticated
according to law should go through consignment for shipment or shipment on
one’s own against the tobacco monopoly product transportation permits
issued by the department of tobacco monopoly administration under the
State Council.

    Article 36  Any of the following circumstances shall be transportation
of tobacco monopoly products without tobacco monopoly product transportation
permits:

    (1)transportation of tobacco monopoly products exceeding the quantity
and range prescribed in the tobacco monopoly product transportation permits;

    (2)use of expired, altered or duplicated tobacco monopoly product
transportation permits;

    (3)without tobacco monopoly product transportation permits and failure
to provide effective certificates of local purchase of tobacco monopoly
products; and

    (4)other acts of shipment of tobacco monopoly products without tobacco
monopoly product transportation permits.

    Article 37  For transfer-customs shipment of tobacco products under
customs supervision, formalities for shipment shall be completed in accordance
with the provisions of the State relating to transfer-customs shipment.
Chapter VII  Production and Sale of Cigarette Paper, Filter Rods,
Cigarette Tow and Special-purpose Tobacco Machinery

    Article 38  Tobacco monopoly wholesale enterprises and tobacco products
production enterprises can purchase cigarette paper, filter rods, cigarette
tow and special-purpose tobacco machinery only from enterprises with
acquisition of tobacco monopoly production enterprise licences and special
tobacco monopoly operating enterprise licences.

    Production enterprises of cigarette paper, filter rods, cigarette tow
and special-purpose tobacco machinery must not sell their products to units
or individuals without tobacco monopoly production enterprise licences.

    Article 39  Purchase, sale and transfer of special-purpose tobacco
machinery must be subject to the approval of the department of tobacco
monopoly administration under the State Council.

    Catalog of the names of special-purpose tobacco machinery shall be
prescribed by the department of tobacco monopoly administration under
the State Council.

    Article 40  No unit or individual shall sell illegally produced special-
purpose tobacco machinery, cigarette paper, filter rods and cigarette tow.

    Phased-out, condemned and illegally assembled special-purpose tobacco
machinery, broken and substandard cigarette paper, filter rods and
cigarette tow as well as their bits and pieces shall be handled under the
supervision of local departments of tobacco monopoly administration and must
not be sold in any form.
Chapter VIII  Import-export Trade and Foreign Economic and Technological
Cooperation

    Article 41  For the establishment of a tobacco monopoly production
enterprise with investment from foreign businesses, recording of the project
pursuant to relevant provisions of the State can only be approved upon
examination and consent of the department of tobacco monopoly administration
under the State Counci.  

    Article 42  Operations of import tobacco monopoly products can only be
undertaken by enterprises with acquisition of special tobacco monopoly
operating enterprise licneces. Their plans of import tobacco monopoly
products should be submitted to the department of tobacco monopoly
administration under the State Council for examination and approval.

    Article 43  Duty-free import tobacco products should be stored in
customs-designated bonded warehouses, and joint control by the local
departments of tobacco monopoly administration designated by the department
of tobacco monopoly administration under the State Council and the customs
shall be stepped up. The customs shall verify and write off the quantity of duty-free import foreign tobacco products in batches
against the duty-free
import plans approved by the department of tobacco monopoly administration
under the State Council.

    Article 44  Duty-free cigarettes and cigars marketed in customs
supervision zones are only for retail and special labels should be printed on
the packs and cartons as prescribed by the department of tobacco monopoly
administration under the State Council.

    Article 45  “Exclusively for export” in the Chinese language should be
marked on packs and cartons of cigarettes and cigars exclusively for
export.
Chapter IX  Supervision and Inspection

    Article 46  Departments of tobacco monopoly administration shall conduct
supervision and inspection on the implementation of Law> and these Regulations according to law, investigate and deal with cases
of violation of and these Regulations, and
investigate and deal with acts of smuggling, trafficking of smuggled tobacco
products, counterfeiting, forgery and making inferior quality products.

    Article 47  Opening and running of tobacco monopoly products trading
markets should be subjected to the examination and approval of the department
of tobacco monopoly administration under the State Council. Tobacco monopoly
products trading markets established without examination and approval should
be banned by the People’s Governments above the county level of the localities
wherein the markets are located.

    Article 48  Whenever necessary, the department of tobacco monopoly
administration under the State Council may, in the light of the actual
conditions in tobacco monopoly work, set up representative agencies in major
areas; whenever necessary, the departments of tobacco monopoly administration
at the provincial level may despatch resident staff in tobacco monopoly
products production and operating enterprises. Representative agencies and
resident staff supervise and inspect the production and operating activities
relating to tobacco monopoly products within the authorized scope of the
despatching departments.

    Article 49  In investigating and handling cases of violation of Tobacco Monopoly Law> and these Regulations, departments of tobacco monopoly
administration may exercise the following functions and powers:

    (1)inquire the parties interested, suspects and witnesses in the law-
breaking cases;

    (2)inspect the operating sites of the parties interested in the law-
breaking cases and deal with the illegally produced or marketed tobacco
monopoly products according to law; and

    (3)search, read and duplicate contracts, invoices, accounting books,
vouchers, records, documents, business correspondence and other information
related to the law-breaking activities.

    Article 50  Departments of tobacco monopoly administration or departments
of tobacco monopoly administration in conjunction with the departments
concerned may inspect and deal with activities of illegal transportation
of tobacco monopoly products in accordance with law.

    Article 51  For auctions pursuant to the relevant provisions of the State
of tobacco monopoly products confisticated by people’s courts and
administrative organs and tobacco monopoly products offsetting penalties,
fines and tax money, bidders should hold tobacco monopoly wholesale enterprise
licences; bidders taking part in auctions of foreign tobacco products should
hold special tobacco monopoly operating enterprise licences.

    Auction enterprises established in accordance with law for auctioning
of tobacco monopoly products should examine and verify the qualifications of the bidders. Auctioning of tobacco monopoly products
by auction enterprises
should be subjected to the supervision of the departments of tobacco monopoly
administration.

    Article 52  Monopoly administrator-inspectors of departments of tobacco
monopoly administration should wear badges issued by the department of tobacco monopoly administration under the State Council and
show certificates
of inspection issued by departments of tobacco monopoly administration at the
provincial level while performing official duties.

    Article 53  Units and individuals having performed meritorious services
in reporting law-breaking cases in tobacco monopoly shall be rewarded.
Chapter X  Legal Responsibilities

    Article 54  The following provisions shall be observed in the implementa-
tion of penalties pursuant to the provisions of Article 30 of Monopoly Law>:

    (1)for purchase of leaf tobacco without authorization, a fine of more
than 20% and less than 50% of the value of the illegally purchased leaf
tobacco may be imposed, and the illegally purchased leaf tobacco shall be
purchased at the price set by the State;

    (2)for purchase of more than 1000 kilograms of leaf tobacco without
authorization, the illegally purchased leaf tobacco and illegal income
shall be confisticated according to law.

    Article 55  The following provisions shall be observed in the implementa-
tion of penalties pursuant to the provisions of Article 31 of Monopoly Law>:

    (1)for consignment for shipment or shipment on one’s own of tobacco
monopoly products without a transportation permit or the quantity of which
exceeds that prescribed in the transportation permit, a fine of more than
20% and less than 50% of the value of the illegally transported tobacco
monopoly products shall be imposed, and the illegally transported tobacco
monopoly products may be purchased at the price set by the State.

    (2)for any of the following circumstances, the illegally transported
tobacco monopoly products and illegal income shall be confisticated:

    1.the value of illegally transported tobacco monopoly products exceeds
RMB 50000 Yuan or the quantity of transported cigarettes exceeds 100 pieces
(every 10000 cigarettes constitute one piece);

    2.having been subjected to penalties more than twice by departments of tobacco monopoly administration;

    3.resisting inspection according to law by supervisor-inspectors of departments of tobacco monopoly administration;

    4.illegal transportation of smuggled tobacco monopoly products;

    5.transportation of tobacco monopoly products produced by enterprises
without tobacco monopoly production enterprise licences;

    6.illegal transportation of tobacco monopoly products in dis

REGULATIONS ON THE CONTROL OF AGRICULTURAL CHEMICALS

Category  AGRICULTURE, FORESTRY AND METEOROLOGY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-05-08 Effective Date  1997-05-08  


Regulations on the Control of Agricultural Chemicals

Chapter I  General Provisions
Chapter II  Registration of Agricultural Chemicals
Chapter III  Production of Agricultural Chemicals
Chapter IV  Marketing of Agricultural Chemicals
Chapter V  Application of Agricultural Chemicals
Chapter VI  Other Provisions
Chapter VII  Penalties
Chapter VIII  Supplementary Provisions

(Promulgated by Decree No. 216 of the State Council of the People’s

Republic of China on May 8, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose of
strengthening the supervision and control of the production, management
and application of agricultural chemicals, ensuring the quality of
agricultural chemicals, protecting the agricultural and forestry
production, ecological environment, and maintaining the safety of human
beings and animals.

    Article 2  Agricultural chemicals referred to in these Regulations mean
mixtures or preparations of one or more substances by chemical synthesis
or originating from organisms or other natural substances with the intent to
prevent, eliminate or put under control plant diseases, insect pests, weeds
or other living beings harmful to agriculture and forestry and to purposely
regulate the growth of plants and insects.

    Agricultural chemicals prescribed in the preceding paragraph include the
following categories used for different purposes or sites:

    (1) to prevent, eliminate or put under control plant diseases, insect
pests (including insects, ticks and mites), weeds, rats, molluscs and other
living beings harmful to agriculture and forestry;

    (2) to prevent, eliminate or put under control diseases, insect pests,
rats and other harmful living beings in warehouses;

    (3) to regulate the growth of plants and insects;

    (4) to be used as antiseptics or preservatives of agricultural products or
forest products;

    (5) to prevent, eliminate or put under control mosquitoes, flies,
cockroaches, rats and other harmful living beings; and

    (6) to prevent, eliminate or put under control living beings harmful to
dykes and dams, railways, airports, buildings and other sites.

    Article 3  The production, management and application
of agricultural chemicals within the territory of the People’s Republic of
China shall observe these Regulations.

    Article 4  The State encourages and supports research, production and
application of agricultural chemicals that are safe, highly efficacious and
economical.

    Article 5  The agricultural department under the State Council shall be
responsible for the registration, supervision and control of agricultural
chemicals throughout the country. The agricultural departments of people’s
governments of provinces, autonomous regions or municipalities directly under
the Central Government shall assist the agricultural department under the
State Council in the registration of agricultural chemicals, and shall be
responsible for the supervision and control of agricultural chemicals within
their respective administrative regions. The agricultural departments of
people’s governments at the county level and in municipalities with
subordinate districts or autonomous prefectures shall be responsible for
the supervision and control of agricultural chemicals within their respective
administrative regions.

    The chemical industry department under the State Council shall be
responsible for the overall planning, coordination, guidance, supervision
and administration of the production of agricultural chemicals. The chemical
industry departments of people’s governments of provinces, autonomous regions
or municipalities directly under the Central Government shall be responsible
for the supervision and administration of the production of agricultural
chemicals within their respective administrative regions.

    Other relevant departments of people’s governments at or above the county
level shall be responsible for the supervision and administration of the
production of agricultural chemicals according to their terms of reference.
Chapter II  Registration of Agricultural Chemicals

    Article 6  The State practises a registration system for agricultural
chemicals.

    The production (including the production of raw agricultural chemicals as
well as the processing and packing of preparations, the same hereinafter) and
importation of agricultural chemicals must enter into registration.

    Article 7  Agricultural chemicals produced or imported in the country for
the first time shall be registered by the following three phases:

    (1) the Field Trial Phase: Agricultural chemicals the registration of
which to be applied for shall be put in field trials subject to approval
after their researchers so apply for. Those at the field trial phase shall
not be sold.

    (2) the Interim Registration Phase: Producers of agricultural chemicals
which require demonstrations of field trials for trial sale and which require
to be used under special circumstances after field trials shall apply for
interim registration. After the agricultural department under the State
Council issues a certificate for interim registration, those agricultural
chemicals can be demonstrated for trial sale within a designated scope.

    (3) the Formal Registration Phase: Producers of agricultural chemicals
which can be circulated as standard commodities upon demonstrations of field
trials for trial sale shall apply for formal registration. After the
agricultural department under the State Council issues a registration
certificate of agricultural chemicals, those agricultural chemicals can be
produced and sold.

    The registration certificate of agricultural chemicals and the
certificate for interim registration of agricultural chemicals shall
respectively specify the period of validity for registration. If it is
necessary to continue to produce or sell to China agricultural chemical
products after the expiration of such period of validity, an application
for the extension of registration shall be filed before the expiration date
of the registration.

    An application for change in registration shall be filed if an
agricultural chemical having been granted formal registration or interim
registration changes in its pharmaceutical form, ingredients, usage or
directions for use within the period of validity for its registration.

    Article 8  When applying for registration of agricultural chemicals
pursuant to the provisions of Article 7 of these Regulations, researchers,
producers or foreign enterprises selling agricultural chemicals to China shall
provide samples of agricultural chemicals to the agricultural department under
the State Council, or to the agricultural department under the State Council
via the agricultural departments of provinces, autonomous regions and
municipalities directly under the Central Government, and shall,
at the same time, provide information on product chemistry and toxicology,
effectiveness, residues, environmental impact and label as required by the
agricultural department under the State Council for registration of
agricultural chemicals.

    The appraisal institution of agricultural chemicals attached to the
agricultural department under the State Council shall be responsible for
specific affairs relating to the registration of agricultural chemicals
throughout the country. The appraisal institutions of agricultural chemicals
attached to the agricultural departments of provinces, autonomous regions and
municipalities directly under the Central Government shall assist in handling
specific affairs relating to the registration of agricultural chemicals
within their respective administrative regions.

    Article 9  Managerial specialists and technical specialists of
agricultural chemicals recommended by departments under the State Council
in charge of agriculture, forestry, chemical industry, public health,
environmental protection and foodgrains as well as the Chinese Federation of
Supply and Marketing Cooperatives shall form an evaluation and examination
committee for registration of agricultural chemicals.

    After the departments under the State Council in charge of agriculture,
chemical industry, public health and environmental protection and the Chinese
Federation of Supply and Marketing Cooperatives separately examine
information on applications for formal registration of agricultural chemicals
and write down their comments, the evaluation and examination committee for
registration of agricultural chemicals shall conduct an evaluation on the
agricultural chemicals in terms of product chemistry, toxicology,
effectiveness, residues and environmental impact. Based on the
evaluation of the evaluation and examination committee for registration of
agricultural chemicals, the agricultural department under the State Council
shall issue registration certificates for agricultural chemicals to those
applicants who conform to requirements.

    Article 10  If a producer produces identical agricultural chemicals
already under registration by other manufacturers, the producer shall apply
for registration for the agricultural chemicals and provide samples and
information prescribed in Article 8 of these Regulations. The agricultural
department under the State Council shall issue to the producer a registration
certificate for agricultural chemicals.
Chapter III  Production of Agricultural Chemicals

    Article 11  Production of agricultural chemicals shall conform to the
state industrial policies on the agricultural chemical industry.

    Article 12  Whoever intends to establish an agricultural chemicals
producing enterprise (including any jointly operated enterprise, any branch
or any workshop established for producing agricultural chemicals in a
non-agricultural chemicals producing enterprise) shall fulfil the following
conditions, subject himself/herself to the examination and consent of the
chemical industry department of the province, autonomous region or
municipality directly under the Central Government in the place where the
enterprise is to be located, then report to the chemical industry department
under the State Council for approval. If laws or administrative regulations
have other provisions regarding conditions for the establishment of
enterprises, and the examination and approval authority, these provisions
shall prevail.

    (1) having technicians and skilled workers required by the kind of
agricultural chemicals to be produced;

    (2) having workshops, production facilities and hygienic conditions
required by the kind of agricultural chemicals to be produced;

    (3) having facilities up to the national standards for labour safety and
health and corresponding rules for labour safety and health management;

    (4) having product quality standards and product quality guarantee system;

    (5) producing agricultural chemicals having been granted registration
according to law; and

    (6) having facilities and measures for pollution prevention and treatment
as required by the state for environmental protection and discharge of
pollutants not exceeding the national and local standards.

    After the establishment of an agricultural chemicals producing enterprise
has been approved, it shall apply to the organ of industry and commerce
administration for a business licence.

    Article 13  The State practises a licence system for production of
agricultural chemicals.

    Production of those agricultural chemicals for which the national or
trade standards exist shall acquire a production licence issued by the
chemical industry department under the State Council.

    Production of those agricultural chemicals for which a standard within
the enterprise exists but the national or trade standards have not yet been
set shall be examined by the chemical industry department of the province,
autonomous region and municipality directly under the Central Government and,
on gaining consent, reported to the chemical industry department under the
State Council for approval and issuance of an approval document for production
of agricultural chemicals.

    Article 14  Agricultural chemicals producing enterprises shall conduct
production according to quality standards and technical rules for
agricultural chemical products, and shall keep their production records
complete and accurate.

    Article 15  Products of agricultural chemicals shall be attached with
a label or a description. Labels shall be tightly stuck on or be printed on
packages of agricultural chemicals. Labels or descriptions shall have
indications concerning the name of agricultural chemicals, name of the
producing enterprise, product batch number and number of the registration
certificate or interim registration certificate, number of the production
licence or number of the approval document for production of the agricultural
chemicals, as well as ingredients, contents, weight, product characteristics,
toxicity, usage, techniques and directions for use, date of production, period
of effectiveness and precautions for applying the agricultural chemicals.
Those agricultural chemicals separately packed for distribution shall also be
given the names of the packing units.

    Article 16  Before leaving the factory, agricultural chemicals shall
undergo quality inspections and be attached with a certificate of quality
inspection. No substandard agricultural chemicals shall be dispatched from
the factory.
Chapter IV  Marketing of Agricultural Chemicals

    Article 17  Any of the following units may market agricultural chemicals:

    (1) units of the supply and marketing cooperatives marketing means of
agricultural production;

    (2) plant protection stations;

    (3) soil fertilizer stations;

    (4) agricultural or forestry technology dissemination institutions;

    (5) institutions for prevention of forest diseases and insect pests;

    (6) agricultural chemicals producing enterprises; and

    (7) other marketing units stipulated by the State Council.

    Whoever intends to market agricultural chemicals categorized as
dangerous chemicals shall obtain a marketing licence according to the
relevant state provisions.

    Article 18  An agricultural chemicals marketing unit shall meet the
following requirements and other requirements prescribed in the relevant laws
and administrative regulations and shall take out a business licence
according to law from the organ of industry and commerce administration
before engaging in marketing of agricultural chemicals:

    (1) having technicians qualified for marketing agricultural chemicals;

    (2) having a place of business, equipment, warehousing facilities, safety
and protection measures and facilities and measures for pollution prevention
and treatment required by marketing of agricultural chemicals;

    (3) having rules and regulations established for marketing of
agricultural chemicals; and

    (4) having a commensurate system and means for quality control over
agricultural chemicals to be marketed.

    Article 19  When purchasing agricultural chemicals, an agricultural
chemicals marketing unit shall check the agricultural chemical products with
the product labels or descriptions and certificates of product quality to find
them to tally and conduct quality inspections.

    Purchase or sale of those agricultural chemicals without
a registration certificate or interim registration certificate, without
a production licence or approval document for production, without product
quality standards and a certificate of product quality, or without passing
quality inspection shall be prohibited.

    Article 20  Agricultural chemicals marketing units shall build up reserve
of agricultural chemicals according to the relevant state provisions.

    Rules for the storage and safekeeping of agricultural chemicals shall be
established and executed to ensure the quality and safety of agricultural
chemical products.

    Article 21  Agricultural chemicals marketing units shall guarantee quality
of agricultural chemicals they sell and shall check product labels or
descriptions and certificates of product quality with the agricultural
chemical products to find them to tally.

    Agricultural chemicals marketing units shall explain correctly to
the users of agricultural chemicals, whether units or individuals, the usage,
directions for use, dosages, emergency measures for poisoning and precautions
of agricultural chemicals.

    Article 22  Agricultural chemical products with an expired period of
guaranteed quality may continue to be sold within a fixed period if they are
still up to the standards subject to the inspection of the appraisal
institution of agricultural chemicals attached to the agricultural department
of the people’s government at or above the provincial level. However, the
words “expired agricultural chemicals” must be indicated and directions for
use and dosages must be given.
Chapter V  Application of Agricultural Chemicals

    Article 23  Agricultural departments of people’s governments at or above
the county level shall, under the plant protection policy of “prevention
first and integrated prevention and control”, organize the
popularization of agricultural chemicals that are safe and highly efficacious,
conduct training to improve peasants’ level in the application of agricultural
chemicals, and give forecasts of plant diseases and insect pests.

    Article 24  Agricultural departments of local people’s governments at or
above the county level shall give directions for safe and rational use of
agricultural chemicals and, in the light of occurrences of local agricultural
disasters due to plant diseases, insect pests, weeds or rats, work out
programmes for alternate use of agricultural chemicals, by alternately using
agricultural chemicals according to the programmes, alleviate the
drug-resistance of plant diseases, insect pests, weeds and rats and improve
the results of prevention and control.

    Article 25  Use of agricultural chemicals shall comply with
anti-poisoning rules. The preparation and application of agricultural
chemicals, disposal of wastes and safety and protection shall be properly
handled to prevent environmental pollution and poisoning accidents by
agricultural chemicals.

    Article 26  Use of agricultural chemicals shall comply with the relevant
state provisions regarding safe and rational use of agricultural chemicals.
Dosages, frequency, ways and safety intervals for use of agricultural
chemicals shall conform to the regulations to prevent pollution to
agricultural and sideline products.

    Hypertoxic or high toxic agricultural chemicals shall not be used for the
prevention and control of insects harmful to hygienic conditions, and shall
not be applied to vegetables, melons, fruits, tea and traditional Chinese
medicinal herbs.

    Article 27  In use of agricultural chemicals, attention shall be paid
to environmental protection, protection of beneficial organisms and precious
and rare species.

    It is strictly prohibited to poison fishes, shrimps, birds, beasts, etc.
with agricultural chemicals.

    Article 28  Administrative departments in charge of forestry, foodgrains
and public health shall step up guidance for safe, rational use of
agricultural chemicals in forestry, grain reserve and public health.
Chapter VI  Other Provisions

    Article 29  No unit or individual shall produce agricultural chemicals
without a production licence for agricultural chemicals or an approval
document for the production of agricultural chemicals.

    No unit or individual shall produce, market, import or use agricultural
chemicals without a registration certificate or an interim registration
certificate for agricultural chemicals.

    Import of agricultural chemicals shall comply with the relevant state
provisions. An importer or his/her agent shall produce to the Customs his/her
registration certificate or interim registration certificate acquired for
agricultural chemicals in China.

    Article 30  Production, marketing or use of fake agricultural
chemicals shall be prohibited.

    Any of the following agricultural chemicals are fake agricultural
chemicals:

    (1) those not being agricultural chemicals but passed off as genuine
ones, or those being a kind of agricultural chemicals but passed off as
another kind; or

    (2) those with the kinds and names of effective ingredients not in
conformity with the kinds and names of effective ingredients indicated in
the product labels or descriptions.

    Article 31  Production, marketing or use of inferior agricultural
chemicals shall be prohibited.

    Any of the following agricultural chemicals are inferior agricultural
chemicals:

    (1) those not conforming to the quality standards of agricultural
chemical products;

    (2) those having lost effectiveness; or

    (3) those mixed with ingredients that can cause harmful chemical
effects or mixed with other harmful ingredients.

    Article 32  Marketing of agricultural chemicals without labels or with
incomplete or unclear labels on product packages shall be prohibited.

    Article 33  Printing, broadcasting, setting up or putting up of
advertisements for agricultural chemicals without undergoing registration
shall be prohibited.

    Advertisements for agricultural chemicals shall have contents consistent
with those in registration of agricultural chemicals and shall be subject to
examination according to the provisions of the advertisement law and the
relevant state provisions governing advertisements for agricultural chemicals.

    Article 34  If those agricultural chemicals having undergone registration
are found within the period of validity for registration severely harmful to
agriculture, forestry, safety of humans and animals and ecological
environment, the agricultural department under the State Council shall, based
on the deliberation of the evaluation and examination committee for
registration of agricultural chemicals, announce restrictions upon the use or
nullify the registration thereof.

    Article 35  No unit or individual shall produce, market or use
agricultural chemicals the production of which has been prohibited expressly
by the state or the registration of which has been nullified by the state.

    Article 36  Competent departments of people’s governments at or above the
county level shall check and monitor the amount of residues of agricultural
chemicals accumulating in agricultural and sideline products.

    Article 37  It is prohibited to sell agricultural and sideline products
containing residues of agricultural chemicals in excess of the standards.

    Article 38  Disposal of fake, inferior, expired or prohibited
agricultural chemicals, or discarded packages of agricultural chemicals, or
other wastes containing agricultural chemicals must strictly conform to the
relevant provisions of laws and regulations on environmental protection in
order to prevent environmental pollution.
Chapter VII  Penalties

    Article 39  Whoever commits any of the following acts shall be penalized
by the agricultural departments according to the following provisions:

    (1) Anyone who, without a registration certificate or an interim
registration certificate for agricultural chemicals, produces or markets
agricultural chemicals, or produces or markets agricultural chemicals
the registration of which has been nullified, shall be ordered to stop
the production or marketing, and, in addition to confiscation of the illegal
gains, concurrently fined more than 100% and less than ten times of the
amount of the illegal gains. If there is no illegal gain, the offender shall
be concurrently fined not more than RMB 100,000 Yuan.

    (2) Anyone who continues to produce agricultural chemicals without
renewing the expired registration certificate or the expired interim
registration certificate for agricultural chemicals, shall be ordered to go
through the renewing formalities within a time limit retrospectively, with
the illegal gains confiscated, and may be concurrently fined not more than
five times of the amount of the illegal gains. If there is no illegal gain,
the offender shall be concurrently fined not more than RMB 50,000 Yuan. If
the offender fails to go through the renewing formalities within the time
limit retrospectively, the department that issued the certificate shall order
him/her to stop production and marketing and revoke the registration
certificate or the interim registration certificate for agricultural
chemicals.

    (3) Anyone who produces or markets agricultural chemical products not
having labels attached to the packages, or those having incomplete or unclear
labels on product packages, or those having contents in the labels altered,
shall be given a warning, with the illegal gains confiscated, and may be
concurrently fined not more than three times the amount of the illegal gains.
If there is no illegal gain, the offender shall be concurrently fined not
more than RMB 30,000 Yuan.

    (4) Anyone who, in using agricultural chemicals, fails to conform to the
relevant state provisions regarding safe use of agricultural chemicals, shall
be given a warning and may be concurrently fined not more than RMB 30,000
Yuan.

    Whoever commits the act described in Item (4) of the preceding paragraph
shall, if a crime has been constituted, be investigated for criminal
responsibility according to law.

    Article 40  Whoever commits any of the following acts shall be penalized
by the chemical industry department of the people’s government at or above
the provincial level according to the following provisions:

    (1) Anyone who establishes an agricultural chemicals producing enterprise
without approval, or produces agricultural chemicals without a production
licence or an approval document for production of agricultural chemicals,
shall be ordered to stop production and, with the illegal gains
confiscated, concurrently fined more than 100% and less than ten times of
the amount of the illegal gains. If there is no illegal gain, the offender
shall be fined not more than RMB 100,000 Yuan.

    (2) Anyone who, in producing agricultural chemicals, fails to conform to
the provisions in the production licence or the approval document for
production of agricultural chemicals, shall be ordered to stop production
and, with the illegal gains confiscated, concurrently fined more than
100% and less than five times of the amount of the illegal gains. If there
is no illegal gain, the offender shall be concurrently fined not more than RMB
50,000 Yuan. If the circumstances are serious, the organ that issued the
licence or the approval document shall revoke the production licence or the
approval document for production of agricultural chemicals.

    Article 41  If anyone fa

CIRCULAR OF THE STATE COUNCIL CONCERNING FURTHER STRENGTHENING THE ADMINISTRATION OF SHARE ISSUANCE AND LISTING OVERSEAS

Category  SECURITIES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-06-20 Effective Date  1997-06-20  


Circular of the State Council Concerning Further Strengthening the Administration of Share Issuance and Listing Overseas



(June 20, 1997)

    The State Council and the competent department for securities under the
State Council have expressly instituted policies concerning share issuance and
listing overseas by a series
of regulations and official documents since 1992.
However, for a period of time of late, there are some institutions and
enterprises which have, in violation of provisions, transferred domestic
assets in various forms overseas for listing shares without approval,
resulting in harmful effects. Issuing and listing shares overseas is a
policy-intensive work which must be carried out step by step in an organized
way and in accordance with the relevant state provisions. In view of the
current problems in share listing overseas and for the purpose of further
strengthening the administration to ensure order in share issuance
and listing overseas, the relevant questions are hereby notified as follows:

    1. Any overseas listed company registered in a foreign country and held
by a Chinese shareholder(s) (including in the case where a Chinese shareholder
is the largest one, the same below) (hereinafter referred to as “an overseas
Chinese-holding listed company”) shall subject itself to the supervision and
regulation of the local securities supervisory and regulatory organ when
engaging in activities such as capital-dividing for listing shares and
increase in issuance of shares. However, the share-holding unit(s) inside the
country of the Chinese shareholder(s) should report the case to the China
Security Supervisory and Regulatory Commission for the record afterwards and
shall strengthen the supervision and administration over the share ownership.

    2. Local laws are applicable where a Chinese invested non-listed
company or a Chinese-holding listed company which has entered into
registration overseas applies overseas for issuing and listing
shares with its overseas assets or its domestic assets which are formed from
its overseas assets invested in China and have been in its actual possession
for over three years. However, the share-holding unit(s) inside the country
should obtain consent in advance from the provincial people’s government or
the competent department under the State Council based on its subordination
thereto. For domestic assets in its possession for not more than three years,
the company shall not apply for share issuance and listing overseas. In the
case of special requirements, a report thereon shall be submitted to the China
Securities Supervisory and Regulatory Commission for verification and then
subject to the examination and approval of the State Council Securities
Commission. After the listing has been completed, the share-holding unit(s)
inside the country should report the relevant details to the China Securities
Supervisory and Regulatory Commission for the record.

    3. Where assets of an internal enterprise are to be transferred to an
overseas Chinese invested non-listed company or an overseas Chinese-holding
listed company by purchase, exchange of shares, allocation or by any other
means for listing shares overseas, or where domestic assets are to be first
transferred to an overseas Chinese invested non-listed company and then
injected into an overseas Chinese-holding listed company for listing shares
overseas, the internal enterprise or the share-holding unit(s) inside the
country of the Chinese shareholder(s) should obtain in advance consent from
the provincial people’s government or the competent department under the State
Council based on its subordination thereto, then report to the China
Securities Supervisory and Regulatory Commission for verification, and
thereafter subject it to the examination and approval of the State Council
Securities Commission in accordance with the state industrial policies, the
relevant provisions of the State Council and the total volume for the year.

    4. In reiteration of the spirit contained in the provisions of the
Circular of the State Council Concerning Suspending the Purchase of Overseas
Enterprises and Further Strengthening the Administration of Overseas
Investment (Guo Fa [1993] No.69), internal institutions and enterprises are
prohibited from listing their shares through shell firms by purchasing
share-holding rights of overseas listed companies.

    5. Violations of the aforesaid provisions shall be treated and punished as
issuing of shares without authorization. Persons in charge of the competent
departments held responsible for such violations shall be given administrative
sanctions by the department concerned. Persons in charge of a violating unit
and other persons directly responsible shall be removed from their posts or
even expelled therefrom by the department at the next higher level than the
unit. Those who commit crimes shall be transferred to the judicial organs and
investigated for criminal responsibility according to law. Violating units,
intermediary agencies involved and violators shall be penalized by the China
Securities Supervisory and Regulatory Commission in accordance with the
provisions of the Provisional Regulations on the Administration of Share
Issuance and Trading and other relevant provisions.

    All localities and departments shall, in strict accordance with the
provisions of this Circular, take practical and effective measures to exercise
supervision on its subordinate enterprises for the earnest implementation of
the relevant state laws and policies. Internal enterprises should take direct
listing of shares as the main form in which they seek funds on the overseas
securities market. The State Council Securities Commission shall continue to
direct this work well and select state-owned enterprises which conform to the
state industrial policies and overseas listing requirements to list shares
directly overseas.

    This Circular shall come into effect as of the date of promulgation.






REGULATIONS ON THE PROTECTION OF NEW VARIETIES OF PLANTS

Category  AGRICULTURE, FORESTRY AND METEOROLOGY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-03-20 Effective Date  1997-10-01  


Regulations of the People’s Republic of China on the Protection of New Varieties of Plants

CHAPTER I  GENERAL PROVISIONS
CHAPTER II  CONTENT AND OWNERSHIP OF VARIETY RIGHTS
CHAPTER III  CONDITIONS FOR THE GRANT OF VARIETY RIGHTS
CHAPTER IV  APPLICATION FOR VARIETY RIGHTS AND RECEITPT THEREOF
CHAPTER V  EXAMINATION AND APPROVAL OF VARIETY RIGHTS
CHAPTER VI  TERM, TERMINATION AND NULLITY OF VARIETY RIGHTS
CHAPTER VII  SUPPLEMENTARY PROVISIOINS

(Promulgated by Decree No.213 of the State Council of the People’s

Republic of China on March 20,1997)
CHAPTER I  GENERAL PROVISIONS

    Article 1  These Regulations are enacted to protect the rights in new
varieties of plants, to encourage the breeding and use of new varieties of
plants, and to promote the development of agriculture and forestry.

    Article 2  The new variety of plant referred to in these Regulations,
means a cultivated variety, or a developed one based on a discovered wild
plant, which possesses novelty, distinctness, uniformity and stability, and
which is designated by an adequate denomination.

    Article 3  The administrative departments of agriculture and forestry
under the State Council(hereinafter referred generally to as the “examining
and approving authorities”) are jointly responsible, according to the
division of their responsibilities, for the receipt and examination of
application for rights in new varieties of plants(hereinafter referred to
as “variety rights”), and for the grant of variety rights for those that
conform to the provisions of these Regulations.

    Article 4  Any entity which or any person who has accomplished the
breeding of a new variety that has a bearing on the national interests or the
public interests, and is of great value for use, he or it shall be rewarded
by the People’s Governments above county level or the relevant departments
under them.

    Article 5  The production, sale and dissemination of a new variety for
which a variety right has been granted (hereinafter referred to ad the
“protected variety”) is subject to review and approval in accordance with the
provisions of relevant laws and regulations on seeds.
CHAPTER II  CONTENT AND OWNERSHIP OF VARIETY RIGHTS

    Article 6  The entity which or the person who has accomplished the
breeding enjoys an exclusive right on his or its protected variety. Except
otherwise provided in these Regulations, no other entities or persons shall,
without the authorization of the owner of the variety right (hereinafter
referred to as the “variety right owner”), produce or sell for commercial
purposes the propagating material of the said protected variety, or use
repeatedly for commercial purposes the propagating material of the said
protected variety in the production of the propagating material of another
variety.

    Article 7  For service breeding accomplished by any person in execution
of the tasks of the entity to which he belongs, or mainly by using the
facilities of that entity, the right to apply for a variety right shall
belong to the entity in question; for non-service breeding, the right to
apply for such a variety right shall belong to the person accomplishing the
breeding. Upon approval of the application, the variety right shall belong
to the applicant.

    For commissioned breeding or jointly conducted breeding, the ownership of
the variety right shall be agreed upon by the parties concerned in
a contract; lacking of such a contract, the variety right shall belong to
the entity which or person who commissioned to conduct or jointly conducted
the breeding.

    Article 8  One new variety shall be granted only one set of variety
right. Where two or more applicants apply separately for the variety right
for the same new variety , the variety right shall be granted to the person
whose application file first; in the case of simultaneous applications, the
variety right shall be granted to the person who has first accomplished the
breeding.

    Article 9  The right to apply for a variety right and the variety right
in respect of a new variety  may be assigned according to the law.

    Any assignment, by a Chinese entity or person, of the right to apply for
a variety right or the variety right of the new variety bred in China, to a
foreigner, must by approved by the examining and approving authorities.

    Any assignment within China, by a state-owned entity, of the right to
apply for variety right or of the variety right, must be submitted in the
light of the relevant national provisions for approval by the competent
administrative departments concerned.

    Article 10  Without prejudice to other rights of the variety right owner
under these Regulations, the exploitation of the protected variety may not
require authorization from, or payment of royalties to, the variety right
owner for the following purposes:

    (a) exploitation of the protected variety for breeding and other
scientific research activities;

    (b) the use by farmers for propagating purposes, on their own holdings,
of the propagating material of the protected variety which they have obtained
by planting on their own holdings.

    Article 11  The examining and approving authorities may, in the national
interests or the public interests, make decision to grant compulsory licenses
to exploit new varieties of plants, which shall be registered and announced.

    The entity which or the person who is granted a compulsory license for
exploitation shall pay to the variety right owner a reasonable exploitation
fee, the amount of which shall be fixed by both parties in consultation.
Where the parties fail to reach an agreement, the examining and approving
authorities shall adjudicate.

    Where the variety right owner is not satisfied with the decision to grant
a compulsory license for exploitation or is not satisfied with the
adjudication regarding the fee payable for exploitation, he or it may, within
3 months from the date of receiving the notification, institute legal
proceedings in the People’s Court.

    Article 12  Regardless of whether or not the term of protection of the
protected variety has expired, the denomination of the protected variety as
used in its registration must be used for sales thereof.
CHAPTER III  CONDITIONS FOR THE GRANT OF VARIETY RIGHTS

    Article 13  The new variety for which a variety right has been applied
for shall be under the plant genera and species included in the national list
of protected plant genera and species. This list of protected plant genera
and species shall be determined and announced by the examining and approving
authorities.

    Article 14  Any variety for which a variety right may be granted shall
possess novelty. Novelty means that, at the date of filing of the application
for a variety right, the propagating material of the new variety has not been
sold, or with the authorization of the breeder, within the territory of
China, earlier than 1 year before that date; in a territory other than China,
earlier than 4 years , or in the case of vines, forest trees, fruit trees and
ornamental plants, earlier than 6 years.

    Article 15  Any variety for which a variety right may be granted shall
possess distinctness. Distinctness means that, the variety for which a
variety right is applied for must be clearly distinguishable from any other
variety whose existence is a matter of common knowledge at the time of the
application.

    Article 16  Any variety for which a variety right may be granted shall
possess uniformity. Uniformity means that the variety for which a variety
right is applied for is sufficiently uniform in its relevant features or
characteristics after propagation, subject to variation that may be expected
from the particular features of its propagation.

    Article 17  Any variety for which variety right may be granted shall
possess stability. Stability means that the variety for which a variety right
is applied for keeps its relevant features or characteristics unchanged after
repeated propagation or at the end of a particular cycle of propagation.

    Article 18  Any variety for which variety right may be granted shall have
an adequate denomination, which shall be distinguishable from that for any
other known variety of the same or similar plant genera or species. The
denomination, after its registration, shall be the generic designation of
the new variety in question.

    The following shall be avoided in the selection of a denomination for
a new variety:

    (a) those consisting of only numbers;

    (b) those violating social morals;

    (c) those that are liable to mislead or to cause confusion concerning
the features or characteristics of the new variety, or identity of the
breeder.
CHAPTER IV  APPLICATION FOR VARIETY RIGHTS AND RECEITPT THEREOF

    Article 19  Where any Chinese entity or person applies for a variety
right, he or it may file an application with the examination and approving
authorities directly or through an agency commissioned for the purpose.

    Where the new variety for which a Chinese entity and person applies for
a variety right involves security or other vital interests of the state and
therefore requires to be kept confidential, it shall be dealt with in
accordance with the relevant prescriptions of the state.

    Article 20  Where any foreigner ,foreign enterprise or any other foreign
institution files an application for a variety right in China, the
application shall be under these Regulations in accordance with any agreement
concluded between the country to which the applicant belongs and the People’s
Republic of China, or in accordance with any international convention to
which both countries are party, or on the basis of the principle of
reciprocity.

    Article 21  For the purpose of applying for a variety right, an
application, specification and photographs of the variety conforming to the
prescribed forms shall be submitted to the examining and approving
authorities.

    The application documents shall be written in Chinese.

    Article 22  The date on which the examining and approving authorities
receive the application documents shall be the date of filing. If the
application is sent by mail, the date of mailing indicated by the postmark
shall be the date of filing.

    Article 23  Where, within 12 months from the date on which any applicant
has first filed in a foreign country an application for a variety right, the
said applicant files an application for a variety right in China for the same
new variety, he or it may, in accordance with any agreement concluded between
the said foreign country and the People’s of Republic of China, or in
accordance with any international treaty to which both countries are party,
or on basis of the principle of mutual recognition of the right of priority,
enjoy a right of priority.

    Any applicant who claims the right of priority shall make a written
statement when the application is filed, and submit, within 3 months, a copy
of the variety right application that was first filed, as confirmed by the
original receiving authority; if the applicant fails to make the written
statement or fails to submit a copy of the application according to the
provisions of these Regulations, the claim to the right of priority shall be
deemed not to have been made.

    Article 24  Where the variety right application conforms to Article 21
of these Regulations, the examining and approving authorities shall accept
it, establish the date of filing, assign a filing number and serve a notice
on the applicant within 1 month from the receipt of the application to pay
an application fee.

    Where the variety right application dose not, or after amendment still
does not, conform to Article 21 of the Regulations, the examining and
approving authorities shall not accept it and shall notify the applicant
accordingly.

    Article 25  An applicant may amend or withdraw his or its variety right
application at any time before the variety right is granted.

    Article 26  Any variety right application, filed by a Chinese entity or
person with a foreign county for a new variety bed in China, shall be
registered before the examining and approving authorities.
CHAPTER V  EXAMINATION AND APPROVAL OF VARIETY RIGHTS

    Article 27  Upon payment of the application fee, the examining and
approving authorities shall carry out a preliminary examination on the
variety right application of the following items:

    (a) whether it is under the plant genera or species included in the list
of protected plant genera or species;

    (b) whether it conforms to the provisions of Article 20 of these
Regulations;

    (c) whether it conforms to the provisions on novelty;

    (d) whether the denomination of the new variety is adequate.

    Article 28  The examining and approving authorities shall complete the
preliminary examination within 6 months from the date that the variety right
application is accepted. Where the variety right application is found
acceptable on preliminary examination, the examination and approving
authorities shall have it announced and serve a notice on the applicant to
pay the examination fee within 3 months.

    where the variety tight application is found unacceptable on preliminary
examination, the examining and approving authorities shall invite the
applicant to state his observations or make amendments; where an applicant
fails to respond within the time limit or the application is still
unacceptable after amendment, the application shall be refused.

    Article 29  After the applicant has paid the prescribed examination fee,
the examining and approving authorities shall carry out a substantive
examination on the distinctness, uniformity and stability of the variety
right application.

    Where the applicant has not paid the prescribed examination fee, the
variety rights application shall be deemed to have been withdrawn.

    Article 30  The examining and approving authorities shall conduct the
substantive examination the basis of application documents and other relevant
written information. Where they deem it necessity, the examining and
approving authorities may entrust a designated testing institution with
undertaking tests or may inspect the results of breeding or other trials
that have already been carried out.

    For the purposes of examination, the applicant shall, at the request of
the examining and approving authorities, furnish necessary information and
the propagating material of the variety in question.

    Article 31  Where the variety right application is found to be in
conformity with the provisions of these Regulations, the examining and
approving authorities shall make a decision to grant the variety right, issue
the variety right post_title, and have it registered and announced.

    Where, after substantive examination, the variety right application is
found not to be in conformity with the provisions of these Regulations, the
examining and approving authorities shall refuse the application and notify
the applicant accordingly.

    Article 32  The examining and approving authorities shall setup Variety
Right Re-examination Boards.

    Where any applicant is not satisfied with the decision of the examining
and approving authorities refusing the variety right application, that
applicant may, within 3 months from the date of receiving the notification,
request the Variety Right Re-examination Board to carry out a re-examination.
The Variety Right Re-examination Board shall, within 6 months from the date
of receiving the request for re-examination, make a decision and notify the
applicant accordingly.

    Where any applicant is not satisfied with the decision of the Variety
Right Re-examination Board, that applicant may, within 15 days from the date
of receiving the notification, institute legal proceedings in the People’s
Court.

    Article 33  After the variety right has been granted, any entity which or
person who, during the period beginning from the date on which an acceptable
application is announced on preliminary examination and ending on the date of
grant of variety rights, had produced or sold the propagating material of the
variety in question for commercial purposes without his authorization of the
variety right owner, the variety right owner is enpost_titled to claim
compensation.
CHAPTER VI  TERM, TERMINATION AND NULLITY OF VARIETY RIGHTS

    Article 34  The term of protection of a variety right, counted from the
date of grant thereof, shall be 20 years for vines, forest trees, fruit trees
and ornamental plants and 15 years for other plants.

    Article 35  The variety right owner shall pay an annual fee from the year
in which the variety right is granted, and shall furnish propagating material
of the protected variety for the purposes of testing as required by the
examining and approving authorities.

    Article 36  The variety right shall be terminated prior to its expiration
in any of the following cases:

    (a) where the variety right owner makes a written statement renouncing
his or its variety right;

    (b) where the variety right owner has not paid the annual fee as
prescribed;

    (c) where the variety right owner has not furnished, in the manner
required by the examining and approving authorities, such propagating
material of the protected variety necessary for testing;

    (d) where, on testing, the protected variety no longer conforms to the
features and characteristics that existed at the time of the grant of the
variety right.

    The termination of the variety right shall be registered and announced
by the examining and approving authorities.

    Article 37  From the date on which the examining and approving
authorities announce the grant of any variety right, the Variety Right
Re-examination Board may, ex officio or on the basis of a written request
made by any entity or person, declare the variety right null and void, when
the variety is not in conformity with the provisions of Articles 14, 15, 16
and 17 of these Regulations; or change the denomination of any variety that
is not in conformity with the provisions of Article 18 of these Regulations.
The decision of nullity of the variety right and the decision to change the
denomination shall be registered and announced by the examining and approving
authorities, and shall be notified to the parties concerned.

    Where any party is not satisfied with the decision of the Variety Right
Re-examination Board, he or it may, within 3 months from the date of
receiving such notification , institute legal proceedings in the People’s
Court.

    Article 38  Any variety right that has been declared null and void shall
be deemed non-existent from the outset.

    The decision of nullity of a variety right shall have no retroactive
effect on any judgment or order on variety right infringement pronounced and
enforced by the People’s Court, or on any decision on variety right
infringement made and enforced by the administrative departments of
agriculture and forestry of the People’ Governments above provincial level,
or on any executed license contract for exploitation of a new variety or any
executed contract of assignment of a variety right. However, any damage
caused to any other person in bad faith on the part of the variety right
owner shall be equitably compensated.

    If, pursuant to the provisions of the preceding paragraph, no repayment
of the fees for the exploitation of the new variety or of the price for the
assignment of the variety right, is made by the variety right owner or the
assignor of the variety right to the licensee or the assignee, which is
obviously contrary to the principle of equity, the variety right owner or
the assignor of the variety right shall repay the whole or part of the
exploitation fee or of the assignment fee to the licensee or the assignee.

    Article 39  Where the propagating material of the protected variety is
produced or sold for commercial purposes without the authorization of the
variety right owner, the variety right owner or the party having an interest
therein may, request the administrative departments of agriculture and
forestry of the People’s Governments above provincial level to handle it in
accordance with their respective competence, or directly institute legal
proceedings in the People’s Court.

    The administrative departments of agriculture and forestry of the
people’s Governments above provincial level may, according to their
respective competence and based on the principle of free will of the parties,
mediate the compensation of damages caused by the infringement. Where accord
has been reached through mediation, it should be executed by the parties
concerned; where no accord has been reached through mediation, the variety
right owner or the party having an interest therein may institute legal
proceedings in the People’s Court according to civil action procedures.

    In handling cases of variety right infringements in accordance with their
respective competence, the administrative departments of agriculture and
forestry of the People’s Governments above provincial level may, for the
purposes of safeguarding the public interests, order the infringer to stop
the infringing act, confiscate the unlawful earnings and impose a fine not
exceeding five times of the unlawful earnings.

    Article 40  Where any variety counterfeits as a protected variety, the
administrative departments of agriculture and forestry of the People’s
Governments above county level shall order the party concerned to stop the
counterfeiting act, confiscate the unlawful earnings and the propagating
material of the variety, and impose a fine at least one time but not
exceeding five times of the unlawful earnings; where the circumstances of
the case are so serious as to constitute a crime, the party concerned shall
be subjected to criminal liability in accordance with the law.

    Article 41  The administrative departments of agriculture and forestry
of the People’s Governments above provincial level in handling cases
concerning variety right infringements in accordance with their respective
competence, and the administrative departments of agriculture and forestry
of the People’s Governments above county level in handling cases concerning
counterfeiting protected variety in accordance with their respective
competence, may, as necessary, seal up or detain the propagating material
of the variety relevant to the cases, have access to, make copies of and
seal up contracts, account books and other relevant documents related to
the cases.

    Article 42  Where the protected variety is sold without using its
registered denomination, the administrative departments of agriculture and
forestry of the People’s Governments above county level shall, in accordance
with their respective competence, order a correction within a specified
period, and may impose a fine not exceeding 1,000 Yuan.

    Article 43  Where disputes arises as to the right to apply for a variety
right and the ownership of the variety right, the parties concerned may
institute legal proceedings in the People’s Court.

    Article 44  Where any staff member of the administrative departments of
agriculture and forestry of the People’s Governments above county level and
of other relevant departments abuses his power, neglects his duty, engages in
any malpractice for private gain, or extorts or receives bribes, he shall be
subjected to criminal liability in accordance with the law if he is guilty of
a crime; or he shall be punished with disciplinary sanctions in accordance
with the law if he is not guilty of a crime.
CHAPTER VII  SUPPLEMENTARY PROVISIOINS

    Article 45  The examining and approving authorities may provide for
flexible provision on the conditions of novelty for the plant genera or
species first included in the list of protected plant genera and species
before the entry into force of these Regulations or for ones newly included
in the list after the entry into force of these Regulations.

    Article 46  These Regulations shall enter into force as from October 1,
1997.






CRIMINAL LAW

Category  CRIMINAL LAW Organ of Promulgation  The National People’s Congress Status of Effect  Amendment
Date of Promulgation  1997-03-14 Effective Date  1997-10-01  


Criminal Law of the People’s Republic of China

Contents
Chapter I  The Tasks, Basic Principles and Scope of Application of the
Chapter II  Crimes
Chapter III  Punishments
Chapter IV  The Concrete Application of Punishments
Chapter V  Other Provisions
Chapter I  Crimes of Endangering the State Security
Chapter II  Crimes of Endangering Public Security
Chapter III  Crimes of Undermining the Socialist Market Economic Order
Chapter IV  Crimes of Infringing upon the Rights of the Person and the
Chapter V  Crimes of Property Violation
Chapter VI  Crimes of Obstructing the Administration of Public Order
Chapter VII  Crimes of Endangering Interests of National Defence
Chapter VIII  Crimes of Embezzlement and Bribery
Chapter IX  Crimes of Dereliction of Duty
Chapter X  Crimes Contrary to Duties Committed by servicemen
Supplementary Provisions
Appendix I
Appendix II

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

on July 1, 1979, revised at the Fifth Session of the Eighth National
People’s Congress on March 14, 1997) (Editor’s Note: For the revised text,
see the Amendment to the Amendment to Criminal Law of the People’s Republic
of China promulgated by Order No.27 of the President of the People’s
Republic of China on December 25, 1999)
Contents

  Part One  General Provisions

    Chapter I  The Tasks, Basic Principles and Scope of Application of the

               Criminal Law

    Chapter II  Crimes

      Section 1  Crimes and Criminal Responsibility

      Section 2  Preparation for a Crime, Criminal Attempt and Discontinuation

                 of a Crime

      Section 3  Joint Crimes

      Section 4  Crimes committed by a unit

    Chapter III  Punishments

      Section 1  Types of Punishments

      Section 2  Public Surveillance

      Section 3  Criminal Detention

      Section 4  Fixed-term Imprisonment and Life Imprisonment

      Section 5  The Death Penalty

      Section 6  Fines

      Section 7  Deprivation of Political Rights

      Section 8  Confiscation of Property

    Chapter IV  The Concrete Application of Punishments

      Section 1  Sentencing

      Section 2  Recidivists

      Section 3  Voluntary Surrender and Rendering Meritorious Service

      Section 4  Combined Punishment for Several Crimes

      Section 5  Suspension of Sentence

      Section 6  Commutation of Punishment

      Section 7  Parole

      Section 8  Limitation

    Chapter V  Other Provisions

  Part Two  Specific Provisions

    Chapter I  Crimes of Endangering the State Security

    Chapter II  Crimes of Endangering Public Security

    Chapter III  Crimes of Undermining the Socialist Market Economic Order

      Section 1  Crimes of Production and Sale of Fake or Substandard

                 Commodities

      Section 2  Crimes of Smuggling

      Section 3  Crimes of Impairing Order of Administering upon Companies

                 and Enterprises

      Section 4  Crimes of Undermining Order of Administering upon Banking

      Section 5  Crimes of Financial Fraud

      Section 6  Crimes of Endangering Taxes Collection and Administration
?     Section 7  Crimes of Infringing upon Intellectual Property Rights

      Section 8  Crimes of Disturbing Market Order

    Chapter IV  Crimes of Infringing upon the Rights of the Person and the

                Democratic Rights of Citizens

    Chapter V  Crimes of Property Violation

    Chapter VI  Crimes of Obstructing the Administration of Public Order

      Section 1  Crimes of Disturbing Public Order

      Section 2  Crimes of Impairing Judicial Activities

      Section 3  Crimes of Impairing Regulations of National Boundary

                 (Borderline)

      Section 4  Crimes of Impairing Regulations of Cultural Relics

      Section 5  Crimes of Endangering Public Health

      Section 6  Crimes of Undermining Protection of Environmental Resource

      Section 7  Crimes of Smuggling, Trafficking in, Transporting and

                 Manufacturing Narcotic Drugs

      Section 8  Crimes of Organizing, Forcing, Luring, Sheltering and

                 Introducing Women into Prostitution

      Section 9  Crimes of Manufacturing, Trafficking in and Disseminating

                 Pornographic Articles

    Chapter VII  Crimes of Endangering Interests of National Defence

    Chapter VIII  Crimes of Embezzlement and Bribery

    Chapter IX  Crimes of Dereliction of Duty

    Chapter X  Crimes Contrary to Duties Committed by Servicemen

  Supplementary Provisions

    Part One  General Provisions
Chapter I  The Tasks, Basic Principles and Scope of Application of the
Criminal Law

    Article 1  This Law is formulated with a view to punishing crimes and
protecting the people, and in accordance with the Constitution, and in
the light of the concrete experiences in fighting against crimes
and the actual circumstances.

    Article 2  The tasks of the Criminal Law of the People’s Republic
of China are to use criminal punishments to fight against all criminal acts
in order to defend the security of the State; to defend the political
power of the people’s dictatorship and socialist system; to protect
property owned by the State and the property collectively owned by the
working people; to protect the citizens’ privately owned property;
to protect the citizens’ rights of the person and their democratic and
other rights; to maintain public order and economical order, and to safeguard
the smooth progress of the cause of the socialist revolution and socialist
construction.

    Article 3  Where an act is expressly defined in laws as a criminal act, it
shall be determined and punished as a criminal act in accordance with the law;
where an act is not expressly defined in the laws as a criminal act, it shall
not be determined and punished as a criminal act.

    Article 4  Anyone who commit a crime shall be equal in applying the law.
No one is privileged to be beyond the law.

    Article 5  The lightness or heaviness of the punishments shall be in
accordance with the criminal acts and the criminal responsibility of
the criminals.

    Article 6  This Law is applicable to anyone who commits a crime
within the territory of the People’s Republic of China, unless the case is
covered by special legal provisions.

    This Law is also applicable to anyone who commits a crime on board
a ship or an aircraft of the People’s Republic of China.

    If the criminal act or its consequence takes place within the territory
of the People’s Republic of China, the crime shall be deemed to have been
committed within the territory of the People’s Republic of China.

    Article 7  This Law is applicable to the citizens of the People’s
Republic of China who commit crimes prescribed in this Law outside the
territory of the People’s Republic of China; however, they may not be
investigated if for those crimes this Law prescribes a maximum punishment
of fixed-term imprisonment of not more than three years.

    This Law is applicable to state functionaries and servicemen of the
People’s Republic of China who commit crimes outside the territory of the
People’s Republic of China.

    Article 8  This Law may be applicable to any foreigner who commits
a crime outside the territory of the People’s Republic of China,
against the state of the People’s Republic of China or against its citizens,
if for that crime this Law prescribes a minimum punishment of fixed-term
imprisonment of not less than three years; however, this does not
apply to a crime that is not punishable according to the law of the place
where it was committed.

    Article 9  This Law is applicable to the crimes prescribed in the
international treaties concluded or acceded to by the People’s Republic of
China and over which the People’s Republic of China has criminal jurisdiction
within its obligation in accordance with the treaties.

    Article 10  If any person commits a crime outside the territory of the
People’s Republic of China for which according to this Law he would
bear criminal responsibility, he may still be dealt with according to this
Law, even if he has already been tried in a foreign country. However, if
he has already received criminal punishment in the foreign country, he
may be exempted from punishment or given a mitigated punishment.

    Article 11  The criminal responsibility of foreigners who enjoy
diplomatic privileges and immunities shall be resolved through diplomatic
channels.

    Article 12  If an act committed after the founding of the People’s
Republic of China and before the entry into force of this Law was not deemed
a crime under the laws in force at the time, those laws shall apply. If the
act was deemed a crime under the laws in force at that time and is subject to
prosecution under the provisions of Section 8, Chapter IV of the General
Provisions of this Law, criminal responsibility shall be investigated
according to those laws. However, if this Law does not deem it a crime or
imposes a lighter punishment, this Law shall apply.

    The effective judgments made in accordance with the laws in force at that
time before the entry into force of this Law, shall keep their effectiveness.
Chapter II  Crimes

    Section 1  Crimes and Criminal Responsibility

    Article 13  A crime refers to an act that endangers the sovereignty
and territorial integrity and security of the state; dismembers the state and
subverts the political power of the people’s dictatorship and overthrows
the socialist system; disrupts social order and economic order; violates
property owned by the state or collectively owned by the working people;
violates the citizens’ privately owned property or infringes upon the
citizens’ rights of the person and their democratic and other rights; and any
other act that endangers society and is punishable according to law. However,
an act that is clearly of minor importance and little harm shall not be
considered a crime.

    Article 14  An intentional crime refers to a crime committed by a
person who clearly knows that his act will produce socially dangerous
consequences but who wishes or allows such consequences to occur.

    Criminal responsibility shall be borne for intentional crimes.

    Article 15  A negligent crime refers to a crime committed by a
person who should have foreseen that his act would possibly produce
socially dangerous consequences but who fails to do so through negligence
or, having foreseen the consequences, readily believes that they can be
avoided, the result being that these consequences do occur.

    Criminal responsibility shall be borne for negligent crimes only when
the law so provides.

    Article 16  If an act in fact results in harmful consequences due to
unavoidable or unforeseeable causes rather than intent or negligence, it
shall not be a crime.

    Article 17  Any person who has reached the age of 16 and who
commits a crime shall bear criminal responsibility.

    Any person who has reached the age of 14 but not the age of 16 and
who commits homicide, intentionally injuring another person resulting in
serious bodily injury or death, rape, robbery, selling narcotic drugs, arson,
causing explosion, or spreading poisons, shall bear criminal responsibility.

    Any person who has reached the age of 14 but not the age of 18 and
who commits a crime shall be given a lighter or mitigated punishment.

    If a person is not punished because he has not reached the age of 16,
the head of his family or his guardian shall be ordered to discipline and
educate him. When necessary, he may also be taken in by the government
for reeducation.

    Article 18  If a mental patient causes dangerous consequences at a
time when he is unable to recognize or control his own conduct, and such
a circumstance is confirmed by a forensic doctor, he shall not bear criminal
responsibility, but his family members or guardian shall be ordered to keep
him under strict surveillance and arrange for his medical treatment. When
necessary, he may also be arranged for medical treatment under coercion by
the government.

    Any person whose mental illness is of an intermittent nature shall
bear criminal responsibility if he commits a crime when he is in a normal
mental state.

    Any mental patient who does not lose completely the ability to recognize
or control his own conduct and commits a crime shall bear criminal
responsibility, but he may be given a lighter or mitigated punishment.

    Any intoxicated person who commits a crime shall bear criminal
responsibility.

    Article 19  Any deaf-mute or blind person who commits a crime
may be given a lighter or mitigated punishment or be exempted from punishment.

    Article 20  Where a person conducts an act to stop an unlawful
infringement in order to avert an immediate and unlawful infringement of
the state’s interest or of the public interest or of his own or another
person’s rights of the person, or property rights, or other rights, resulting
in harm to the unlawful infringer, such an act shall be justifiable defence,
and criminal responsibility shall not be borne for such an act.

    Criminal responsibility shall be borne if justifiable defence apparently
exceeds the limits of necessity and causes serious harm; however, a
mitigated punishment or exemption from punishment shall be given.

    Where a defence is conducted to an immediate violent crime of committing
physical assault, committing homicide, robbery, rape, kidnapping, and other
crimes seriously endangering the security of a person, and it causes bodily
injury or death to the unlawful infringer, such an act shall not be defence
that exceeds the limits of necessity, and criminal responsibility shall not
be borne for such an act.

    Article 21  Criminal responsibility shall not be borne for an act that
a person is compelled to commit in an emergency to avert an immediate
danger to the state’s interest or the public interest or to his own or another
person’s rights of the person or property rights or other rights, and that
causes harm.

    Criminal responsibility shall be borne if an act committed in an
emergency to avert danger exceeds the limits of necessity and causes
undue harm; however, a mitigated punishment or exemption from punishment
shall be given.

    The provisions of the first paragraph of this Article with respect to
averting danger to oneself shall not apply to a person who is charged with
specific responsibility in his post or profession.

    Section 2  Preparation for a Crime, Criminal Attempt and Discontinuation
of a Crime

    Article 22  Preparation for a crime refers to the preparation of the
instruments or the creation of the conditions for a crime.

    An offender who prepares for a crime may, in comparison with one
who completed the crime, be given a lighter or mitigated punishment or
be exempted from punishment.

    Article 23  A criminal attempt refers to a case where an offender
has already begun to commit a crime but is prevented from completing
it for reasons independent of his will.

    An offender who attempts to commit a crime may, in comparison
with one who completed the crime, be given a lighter or mitigated punishment.

    Article 24  Discontinuation of a crime refers to cases where, in the
process of committing a crime, the offender voluntarily quits continuing the
crime or voluntarily and effectively prevents the consequences of the
crime from occurring.

    Where an offender who discontinues a crime and causes no harm,  exempted
from punishment shall be given; where an offender causes harm, a mitigated
punishment shall be given.

    Section 3  Joint Crimes

    Article 25  A joint crime refers to an intentional crime committed
by two or more persons jointly.

    A negligent crime committed by two or more persons jointly shall not
be punished as a joint crime; those who should bear criminal responsibility
shall be individually punished according to the crimes they have
committed.

    Article 26  A principal criminal refers to any person who organizes
and leads a criminal group in carrying out criminal activities or plays a
principal role in a joint crime.

    A criminal group refers to any relatively stable criminal organization
which is composed of more than three persons for the purpose of committing
a crime jointly.

    A ringleader who organizes and leads a criminal group shall be
given a punishment according to all the crimes the group has committed.

    A principal criminal unless otherwise stipulated in the third paragraph
shall be given a punishment according to all the crimes that he participates
in or organizes or commands.

    Article 27  An accomplice refers to any person who plays a secondary
or auxiliary role in a joint crime.

    An accomplice shall be given a lighter or mitigated punishment or be
exempted from punishment.

    Article 28  A person who is compelled to participate in
a crime shall, according to the circumstances of his crime, be given a
mitigated punishment or be exempted from punishment.

    Article 29  A person who instigates others to commit a crime shall
be punished according to the role he has played in the joint crime.
Anyone who instigates a person under the age of 18 to commit a crime
shall be given a heavier punishment.

    If the instigated person has not committed the instigated crime, the
instigator may be given a lighter or mitigated punishment.

    Section 4  Crimes Committed by a Unit

    Article 30  A company, enterprise, institution, organ, or public
organization that conducts an act harmful to society, where such an act is
stipulated as a crime, shall bear criminal responsibility.

    Article 31  A unit which commits a crime shall be punished with a fine,
and the person(s) directly in charge and other person(s) directly involved
in the crime shall be given a punishment. Where Specific Provisions of this
Law or other laws stipulate otherwise, such stipulation shall be applied.
Chapter III  Punishments

    Section 1  Types of Punishments

    Article 32  Punishments are divided into principal punishments and
supplementary punishments.

    Article 33  The principal punishments are as follows:

    (1) public surveillance;

    (2) criminal detention;

    (3) fixed-term imprisonment;

    (4) life imprisonment; and

    (5) the death penalty.

    Article 34  The supplementary punishments are as follows:

    (1) fines;

    (2) deprivation of political rights; and

    (3) confiscation of property.

    Supplementary punishments may be imposed independently.

    Article 35  Deportation may be imposed independently or supplementarily
to a foreigner who commits a crime.

    Article 36  If a victim has suffered economic losses as a result of a
crime, the criminal shall, in addition to receiving a criminal sanction
according to law, be sentenced to make compensation for the economic
losses in the light of the circumstances.

    If a criminal who bears civil responsibility and is punished with a fine
in the meantime, has no enough property to pay off, or is punished with
confiscation of property, he shall first bear responsibility of civil
compensation to the victim.

    Article 37  If the circumstances of a person’s crime are minor and
do not require punishment, he may be exempted from criminal sanctions;
however, he may, according to the different circumstances of each case,
be reprimanded or ordered to make a statement of repentance, offer an
apology, pay compensation for the losses or be subject to administrative
punishment or administrative sanctions by the competent department.

    Section 2  Public Surveillance(*1)

    Article 38  The term of public surveillance shall not be less than
three months and not more than two years.

    Where a criminal is sentenced to public surveillance, his sentence shall
be executed by a public security organ.

    Article 39  A criminal who is sentenced to public surveillance must
observe the following rules during the term in which his sentence is being
executed:

    (1) observe laws and administrative regulations, submit to supervision;

    (2) forbidden to exercise the rights of freedom of speech, of the press,
of assembly, of association, of procession and of demonstration without
approval of the public organ;

    (3) report on his own activities according to the demand of the organ
executing the public surveillance;

    (4) observe the stipulation on meeting with guests by the organ executing
the public surveillance; and

    (5) report and obtain approval from the organ executing public
surveillance for departure from the county or city where he lives or change in
residence.

    Criminals sentenced to public surveillance shall, while engaged in
labour, receive equal pay for equal work.

    Article 40  Upon the expiration of a term of public surveillance, the
executing organ shall immediately announce the termination of public
surveillance to the criminal sentenced to public surveillance and to his unit
or the masses of the place of his residence.

    Article 41  A term of public surveillance shall be counted from the
date the judgment begins to be executed; if the criminal is held in custody
before the execution of the judgment, each day spent in custody shall be
considered as two days of the term sentenced.

    Section 3  Criminal Detention

    Article 42  A term of criminal detention shall not be less than 1
months and not more than 6 months.

    Article 43  Where a criminal is sentenced to criminal detention, his
sentence shall be executed by the public security organ in the vicinity.

    During the period of execution, a criminal sentenced to criminal
detention may go home for one to two days each month; an appropriate
remuneration may be given to those who participate in labour.

    Article 44  A term of criminal detention shall be counted from the
date the judgment begins to be executed; if the criminal is held in custody
before the execution of the judgment, each day in custody shall be
considered as one day of the term sentenced.

    Section 4  Fixed-Term Imprisonment and Life Imprisonment

    Article 45  A term of fixed-term imprisonment, unless otherwise stipulated
in Article 50 and Article 69, shall not be less than 6 months and not more
than 15 years.

    Article 46  A criminal sentenced to fixed-term imprisonment or life
imprisonment shall serve his sentence in prison or another place for
execution. Anyone who is able to work shall participate in labour,
and accepts education and reform.

    Article 47  A term of fixed-term imprisonment shall be counted
from the date the judgment begins to be executed; if the criminal is held
in custody before the execution of the judgment, each day in custody
shall be considered as one day of the term sentenced.

    Section 5  The Death Penalty

    Article 48  The death penalty shall only be applied to criminals who
have committed the most heinous crimes. If the immediate execution of
a criminal punishable by death is not deemed necessary, a two-year
suspension of execution may be pronounced simultaneously with the imposition
of the death sentence.

    All death sentences except for those that according to law should be
decided by the Supreme People’s Court, shall be submitted to the Supreme
People’s Court for approval. Death sentences with a suspension of
execution may be decided or approved by a higher people’s court.

    Article 49  The death penalty shall not be imposed on persons who
had not reached the age of 18 at the time the crime was committed or to
women who are pregnant at the time of trial.

    Article 50  If a person sentenced to death with a suspension of execution
does not commit an intentional crime during the period of suspension, his
punishment shall be commuted to life imprisonment upon the expiration of that
two-year period; if he performs great meritorious service, his punishme

DECISION OF THE STATE COUNCIL ON AMENDING THE REGULATIONS ON FOREIGN EXCHANGE CONTROL

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-01-14 Effective Date  1997-01-14  


Decision of the State Council on Amending the Regulations of the People’s Republic of China on Foreign Exchange Control


Appendix: REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON FOREIGN
Chapter I  General Provisions
Chapter II  Foreign Exchange in Current Transactions
Chapter III  Foreign Exchange in Capital Transactions
Chapter IV  Foreign Exchange Business of Financial Institutions
Chapter V  Renminbi Exchange Rates and Exchange Market
Chapter VI  Legal Responsibilities
Chapter VII  Supplementary Provisions

(Promulgated by Decree No.211 of the State Council of the People’s

Republic of China on January 14, 1997)

    The State Council decides to amend the Regulations of the People’s
Republic of China on Foreign Exchange Control as follows:

    1. A new article is added as Article 5: “The State shall not exercise
restrictions on the frequent international payment and transfer.”

    2. The first paragraph of Article 13 is amended as the first paragraph of
Article 14 as follows: “Foreign exchange needed by individuals on private
business shall be bought within the specified limits. Those beyond the
specified limits shall be applied for to the exchange control department,
and may be converted when the exchange control department considers the
application truthful.”

    3. A new article is added as Article 15: “The profit arising from the
domestic property owned by individuals having moved to and resided in
foreign countries may, by presentation of specified certifying papers and
valid certificates, be converted at the authorized bank for dealing in
foreign exchange and be remitted or carried out of China.”

    4. Article 15 and Article 16 are merged and amended as Article 17 as
follows: “Legitimate incomes in Renminbi obtained by foreign institutions or
individuals in China may, when there is a need to remit them out of China,
be converted at the authorized bank for dealing in foreign exchange by
presentation of relevant certifying papers and certificates.”

    This Decision shall enter into force as of the date of promulgation.

    The Regulations of the People’s Republic of China on Foreign Exchange
Control shall be republished after being correspondingly amended according
to this Decision.

Appendix: REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON FOREIGN
EXCHANGE CONTROL

    (Promulgated by Decree No.193 of the State Council of the People’s
Republic of China on January 29, 1996, amended and promulgated on January 14,
1997 according to the Decision of the State Council on amending the
Regulations of the People’s Republic of China on Foreign Exchange Control)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose of
strengthening the foreign exchange control, keeping international payments
equilibrium and promoting the healthy development of the national economy.

    Article 2  The exchange control department of the State Council and its
branches (hereinafter referred to as the exchange control department) shall
exercise foreign exchange control according to law, and be responsible for
the implementation of these Regulations.

    Article 3  “Foreign exchange” mentioned in these Regulations means those
payment instruments and assets in foreign currency which may be used for
international payments, including the following:

    (1) foreign currencies, including banknote and coins;

    (2) foreign currency payment instruments, including negotiable
securities, bank deposit certificates and postal savings certificates, etc.;

    (3) foreign currency securities, including government bonds, corporate
bonds and stocks, etc.;

    (4) Special Drawing Rights and European Monetary Units; and

    (5) other assets in foreign currency.

    Article 4  These Regulations shall be applicable to foreign exchange
receipts and disbursements and foreign exchange business operations by either
domestic institutions and individuals or foreign institutions and individuals
in China.

    Article 5  The State shall not exercise restrictions on the frequent
international payment and transfer.

    Article 6  The state shall adopt a system of statistics and reporting of
the international balance of payment. All organizations and individuals
involved in international payments shall take statistics and make reports on
their international balance of payment.

    Article 7  No circulation of, or valuation and settlement in, foreign
currencies shall be allowed in the territory of the People’s Republic of
China.

    Article 8  Any organization or individual shall be enpost_titled to accuse and
expose the acts and activities that violate the exchange control.

    Organizations and individuals having rendered great service in accusing,
exposing, or assisting in the investigation of, violations of exchange
control shall be awarded by the exchange control department, and the latter
shall keep things secret.
Chapter II  Foreign Exchange in Current Transactions

    Article 9  Foreign exchange receipts from current transactions by
domestic institutions must be transferred to China and may not be held abroad
in violation of relevant provisions of the state.

    Article 10  Foreign exchange receipts from current transactions by
domestic institutions shall be sold to the authorized bank for dealing in
foreign exchange in accordance with provisions of the State Council
concerning the administration on foreign exchange settlements, sales and
payments or, with an approval, a foreign exchange account may be opened for
that with the authorized bank for dealing in foreign exchange.

    Article 11  Foreign exchange needed for current transactions by domestic
institutions shall be paid through buying from the authorized bank for
dealing in foreign exchange by presentation of valid certificates and
business papers in accordance with provisions of the State Council concerning
the administration on foreign exchange settlements, sales and payments.

    Article 12  Domestic institutions shall go through verification and
cancellation formalities for their foreign exchange receipts from export and
foreign exchange payments for import in accordance with provisions of the
state concerning the administration on verification and cancellation of
foreign exchange receipts from export and foreign exchange payments for
import.

    Article 13  Personal foreign exchange may be held by the individuals
themselves, or they may also be deposited in the bank or sold to the
authorized bank for dealing in foreign exchange.

    The business in personal foreign exchange saving deposit shall abide by
the principle of voluntariness in depositing, freedom of withdrawal, interest
on every deposit and keeping in secret for the depositors.

    Article 14  Foreign exchange needed by individuals on private business
shall be bought within the specified limits; those beyond the specified
limits may be applied for to the exchange control department, and may be
converted when the exchange control department considers the application
truthful.

    Individuals carrying foreign exchange when leaving China shall go through
the declaration formalities with the customs; those carrying foreign
exchange exceeding the specified limits shall, in addition, present valid
certificates to the customs.

    Article 15  The profit arising from the domestic property owned by
individuals having moved to and resided in foreign countries may, by
presentation of specified certifying papers and valid certificates, be
converted at the authorized bank for dealing in foreign exchange and be
remitted or carried out of China.

    Article 16  Without the approval from the exchange control department, no
foreign exchange assets in forms of foreign currency payment instruments or
foreign currency securities, etc., which are held by Chinese citizens
residing in China, may be carried or sent by post out of China.

    Article 17  Legitimate incomes in Renminbi obtained by foreign
institutions or individuals in China may, when there is a need to remit them
out of China, be converted at the authorized bank for dealing in foreign
exchange by presentation of relevant certifying papers and certificates.

    Article 18  Foreign exchange remitted or carried in from outside China
by foreign institutions or individuals in China may be held by themselves,
deposited in the bank or sold to the authorized bank for dealing in foreign
exchange. They may also be remitted or carried out of China by presentation
of valid certificates.
Chapter III  Foreign Exchange in Capital Transactions

    Article 19  Foreign exchange receipts from capital transactions by
domestic institutions shall be transferred to China, except the State Council
has provisions otherwise.

    Article 20  Domestic institutions shall, in accordance with relevant
provisions of the state, open foreign exchange accounts with the authorized
bank for dealing in foreign exchange for their foreign exchange receipts from
capital transactions; for selling said receipts to the authorized bank for
dealing in foreign exchange, an approval from the exchange control department
shall be obtained in advance.

    Article 21  Domestic institutions wishing to make investment outside
China shall, before applying to the competent department for examination and
approval, have their sources of foreign exchange funds examined by the
exchange control department; after obtaining the approval, they shall go
through the fund remittance formalities in accordance with provisions of the
State Council concerning the foreign exchange control relating to external
investment.

    Article 22  The raising of foreign loans shall be handled in accordance
with relevant provisions of the state by government departments designated by
the State Council or by financial institutions or enterprises approved by the
exchange control department of the State Council.

    Foreign loans raised by foreign investment enterprises shall be submitted
to the exchange control department for the record.

    Article 23  For issuing foreign currency bonds outside China, financial
institutions shall apply to the exchange control department of the State
Council for approval, and the issuance shall be handled in accordance with
relevant provisions of the state.

    Article 24  The provision of external guarantee may be handled only by
the financial institutions and enterprises which are qualified according to
relevant provisions of the state and, for the provision, an approval from the
exchange control department shall be obtained in advance.

    Article 25  The state shall adopt a registration system for external
debts.

    Domestic institutions shall go through external debt registration
procedures in accordance with provisions of the State Council concerning the
external debt statistics and monitoring.

    The exchange control department of the State Council shall be responsible
for the nationwide statistics and monitoring of external debts, and shall
publish the external debt situation regularly.

    Article 26  Where a foreign investment enterprise is legally terminated,
among the assets after liquidation and taxation in accordance with relevant
provisions of the state, the Renminbi owned by the foreign party may be
converted at the authorized bank for dealing in foreign exchange and remitted
or carried out of China; the foreign exchange owned by the Chinese party
shall all be sold to the authorized bank for dealing in foreign exchange.
Chapter IV  Foreign Exchange Business of Financial Institutions

    Article 27  For launching foreign exchange business, financial
institutions must apply for approval to the exchange control department and
obtain a foreign exchange business license.

    Without approval from the exchange control department, no organization or
individual may engage in foreign exchange business. Financial institutions
with the approval for foreign exchange business operations may not engage in
business which are beyond the approved scope.

    Article 28  Financial institutions engaging in foreign exchange business
shall open foreign exchange accounts for their customers and handle relevant
foreign exchange business in accordance with relevant provisions of the state.

    Article 29  In operations of foreign exchange business, financial
institutions shall deposit reserves for foreign exchange deposit in
accordance with relevant provisions of the state, abide by provisions
concerning the control of foreign exchange balance sheet ratio, and establish
reserves for bad debts.

    Article 30  The authorized bank for dealing in foreign exchange shall use
their owned capital for the payment of Renminbi needed in the business of
exchange settlement.

    Revolving foreign exchange fund for settlement of accounts of the
authorized bank for dealing in foreign exchange shall be managed within a
proportional range, which shall be appraised and fixed in the light of actual
situation by the People’s Bank of China.

    Article 31  In operations of foreign exchange business, financial
institutions shall subject themselves to the inspection and supervision by
the exchange control department.

    Financial institutions engaging in foreign exchange business shall file
with the exchange control department their foreign exchange balance sheets,
foreign exchange profit and loss statements and other financial accounting
statements and data.

    Article 32  For terminating the operation of foreign exchange business,
financial institutions shall apply to the exchange control department for
approval. Financial institutions approved to terminate the operation of
foreign exchange business shall make liquidation of foreign exchange
creditor’s rights and debts, and hand in the foreign exchange business
Chapter V  Renminbi Exchange Rates and Exchange Market

    Article 33  A single managed floating system on the basis of the supply
and demand in the market shall be adopted to the Renminbi exchange rates.

    The People’s Bank of China shall, according to the prices shaped in the
exchange market among banks, publish the exchange rates between Renminbi and
major foreign currencies.

    Article 34  Foreign exchange market transactions shall follow the
principle of openness, fairness, impartiality and good faith.

    Article 35  The currency varieties and forms of foreign exchange market
transactions shall be specified and adjusted by the exchange control
department of the State Council.

    Article 36  The authorized bank for dealing in foreign exchange and other
financial institutions engaging in foreign exchange business are transactors
in the foreign exchange market among banks.

    The authorized bank for dealing in foreign exchange and other financial
institutions engaging in foreign exchange business shall determine the
foreign exchange buying and selling prices for their customers and handle
the foreign exchange business according to the rates and floating ranges
published and specified by the People’s Bank of China.

    Article 37  The exchange control department of the State Council shall
exercise supervision and administration on the foreign exchange market
throughout the country according to law.

    Article 38  The People’s Bank of China shall exercise adjustment and
control with regard to the foreign exchange market according to the needs of
the monetary policies and the fluctuations of the foreign exchange market.
Chapter VI  Legal Responsibilities

    Article 39  Whoever evades foreign exchange by committing any of the
following acts shall be ordered to transfer the foreign exchange back to
China within a specified time with a compulsory buying and exchanging of said
foreign exchange and a fine from 30 per cent to five times the evaded amount
imposed on by the exchange control department, or be investigated for the
criminal responsibility if a crime is constituted:

    (1) in violation of provisions of the state, holding the foreign
exchange abroad without authorization;

    (2) failing to sell the foreign exchange to the authorized bank for
dealing in foreign exchange in accordance with provisions of the state;

    (3) remitting or carrying foreign exchange out of China in violation of
provisions of the state;

    (4) carrying or sending by post foreign currency deposit certificates or
foreign currency securities out of China without an approval from the
exchange control department; or

    (5) other acts of evading foreign exchange.

    Article 40  Whoever engages in illegal procurement of foreign exchange
by committing any of the following acts shall be given a warning with a
compulsory buying and exchanging of the procured foreign exchange and a fine
from 30 per cent to three times the amount procured imposed on by the
exchange control department, or be investigated for the criminal
responsibility if a crime is constituted:

    (1) in violation of provisions of the state, paying in Renminbi or with
physical goods for import or for others of the like which should be paid for
in foreign exchange;

    (2) paying domestic expenses for other persons in Renminbi while being
repaid in foreign currency by those persons;

    (3) without the approval from the exchange control department, foreign
investors making investment in China with Renminbi or with goods and materials
purchased in China;

    (4) buying foreign exchange from the authorized bank for dealing in
foreign exchange by cheating with false or invalid certificates, contracts
or documents; or

    (5) other acts of illegally procuring foreign exchange;

    Article 41  Whoever engages in foreign exchange business without an
approval from the exchange control department shall be confiscated of their
illegal earnings with their illegal business forbidden by the exchange
control department, or be investigated for the criminal responsibility if a
crime is constituted.

    Financial institutions engaging in foreign exchange business beyond the
approved scope without authorization shall be ordered to make corrections by
the exchange control department with confiscation of their illegal earnings,
if any, and a fine from one to five times the illegal earnings, or a fine
from 100,000 to 500,000 yuan if there is no illegal earnings. Where the
circumstances are serious or no corrections have been made within the
specified time, they shall be ordered to make consolidation or be revoked of
their foreign exchange business licenses by the exchange control department.
Where a crime is constituted, they shall be investigated for the criminal
responsibility.

    Article 42  The authorized bank for dealing in foreign exchange who fails
to handle the foreign exchange settlements or sales in accordance with
provisions of the state shall be ordered to make corrections and criticized
by circulating a criticism notice by the exchange control department with
confiscation of their illegal earnings and a fine from 100,000 to 500,000
yuan. Where the circumstances are serious, they shall be suspended from the
business of foreign exchange settlements and sales.

    Article 43  Financial institutions engaging in foreign exchange business
who violate the control of Renminbi exchange rates, foreign exchange loan and
deposit interest rates or foreign exchange market, shall be ordered to make
corrections and criticized by circulating a criticism notice by the exchange
control department with confiscation of their illegal earnings, if any, and a
fine from one to five times the illegal earnings, or a fine from 100,000 to
500,000 yuan if there is no illegal earnings. Where the circumstances are
serious, they shall be ordered to make consolidation or be revoked of their
foreign exchange business licenses by the exchange control department.

    Article 44  Domestic institutions committing any of the following acts in
violation of the control of external debts shall be given a warning and
criticized by circulating a criticism notice with a fine from 100,000 to
500,000 yuan imposed on by the exchange control department, or be
investigated for the criminal responsibility if the a crime is constituted:

    (1) raising foreign loans without authorization;

    (2) in violation of relevant provisions of the state, issuing foreign
currency bonds outside China without authorization;

    (3) in violation of relevant provisions of the state, providing external
guarantee without authorization; or

    (4) other acts in violation of the control of external debts;

    Article 45  Domestic institutions illegally using foreign exchange under
any of the following circumstances shall be ordered to make corrections by
the exchange control department with a compulsory buying and exchanging,
confiscation of their illegal earnings and a fine not exceeding the value of
the foreign exchange amount involved in the illegal acts, or be investigated
for the criminal responsibility if a crime is constituted:

    (1) valuating and settling in foreign currency in China;

    (2) providing pledge with foreign currency without authorization;

    (3) changing the uses of foreign exchange without permission; or

    (4) other circumstances involved in illegal use of foreign exchange;

    Article 46  Whoever buys and sells foreign exchange without permission or
in a disguised form or scalps foreign exchange shall be given a warning by
the exchange control department with a compulsory buying and exchanging,
confiscation of their illegal earnings and a fine from 30 per cent to three
times the foreign exchange amount involved in the illegal acts. Where a crime
is constituted, they shall be investigated for the criminal responsibility.

    Article 47  Domestic institutions who, in violation of the administration
on foreign exchange accounts, open foreign exchange accounts inside or
outside China without permission, lend or transfer their foreign exchange
accounts, use each other’s foreign exchange accounts in collusion, or use the
foreign exchange accounts for other purposes than those approved shall be
ordered to make corrections and criticized by circulating a criticism notice
by the exchange control department with cancellation of their foreign
exchange accounts and a fine from 50,000 to 300,000 yuan.

    Article 48  Domestic institutions who, in violation of the
administration of foreign exchange verification and cancellation, forge,
alter, lend, transfer or repeatedly use export verification and cancellation
certificates, or fail to go through the specified verification and
cancellation procedures shall be given a warning and criticized by
circulating a criticism notice by the exchange control department with
confiscation of their illegal earnings and a fine from 50,000 to 300,000
yuan. Where a crime is constituted, they shall be investigated for the
criminal responsibility.

    Article 49  Financial institutions engaging in foreign exchange business
who violate provisions of Article 28 or 38 of these Regulations shall be
ordered to make corrections and criticized by circulating a criticism notice
by the exchange control department with a fine from 50,000 to 300,000 yuan.

    Article 50  Where any party concerned refuses to accept the penalty
decision made by the exchange control department, he may, within 15 days from
receiving the notification of the penalty decision, apply for reconsideration
to the exchange control department at the immediately higher level, which
shall make a reconsideration decision within two months from receiving the
reconsideration application. The party concerned refusing to accept the
consideration decision may bring a suit with the people’s court.

    Article 51  Where any domestic institution violates provisions concerning
the foreign exchange control, in addition to the penalty on the institutions
according to provisions of these Regulations, the person in charge directly
responsible and other person directly responsible shall be given a
disciplinary sanction, or be investigated for the criminal responsibility if
a crime is constituted.
Chapter VII  Supplementary Provisions

    Article 52  For the purpose of these Regulations,

    (1) “domestic institutions” mean enterprises, institutions, government
departments, public organizations and army units, including foreign
investment enterprises, within the territory of the People’s Republic of
China;

    (2) “the authorized bank for dealing in foreign exchange” means a bank
that engages in the business of foreign exchange settlement and sales with
the approval of the exchange control department;

    (3) “individuals” mean either Chinese citizens or foreigners who reside
in the People’s Republic of China up to one year;

    (4) “foreign institutions in China” mean foreign diplomatic missions and
consular posts in China, resident representative offices in China of
international organizations, foreign commercial representative offices in
China and resident business offices in China of foreign nongovernmental
organizations;

    (5) “foreign individuals in China” mean permanent personnel of foreign
institutions in China, foreigners staying short terms in China, foreigners
engaged by domestic institutions and foreign students studying in China;

    (6) “current transactions” mean transactions that occur frequently
resulting in international receipt and payment, including trade receipt and
payment, service receipt and payment and unilateral transfer, etc.; and

    (7) “capital transactions” mean capital exporting and importing resulting
in increasing or decreasing of assets and liabilities, including direct
investment, loans of all kinds and investment in securities, etc..

    Article 53  Foreign exchange control measures for bonded areas shall be
formulated separately by the exchange control department of the State
Council.

    Article 54  Foreign exchange control measures for frontier trade and
transactions between inhabitants on either side of the border shall be
separately formulated by the exchange control department of the State Council
according to the principles prescribed by these Regulations.

    Article 55  These Regulations shall enter into force on April 1, 1996.
The Interim Regulations of the People’s Republic of China on Foreign Exchange
Control promulgated by the State Council on December 18, 1980 and the rules
thereunder shall cease to be in force thereupon.






LETTER OF THE GENERAL OFFICE OF THE MINISTRY OF LABOR ON ANSWER TO REQUEST FOR INSTRUCTIONS ON WHETHER THE RULES ON LABOR ADMINISTRATION OF ENTERPRISE WITH FOREIGN INVESTMENT SHALL BE APPLIED IN THE PUNISHMENT OF ENTERPRISES WITH FOREIGN INVESTMENT EMPLOYING CHILD LABOR

The General Office of the Ministry of Labor

Letter of the General Office of the Ministry of Labor on Answer to Request for Instructions on whether the Rules on Labor Administration
of Enterprise with Foreign Investment shall be Applied in the Punishment of Enterprises with Foreign Investment Employing Child Labor

LaoBanFa [1997] No.96

October 8, 1997

The Ministry of Labor of Fujian province:

Request for Instructions on whether the Rules on Labor Administration of Enterprise with Foreign Investment shall be Applied in the
Punishment on Enterprises with Foreign Investment Employing Child Labor (MinLaoGuan [1997] No.53) from your Ministry has been received.
Hereby answer the question after disquisition as follows:

Article 28 of Labor Administration of Enterprise with Foreign Investment (LaoBuFa [1994] No.246) excludes the problem of punishment
on enterprises with foreign investment employing child labor. The punishment on enterprises with foreign investment employing child
labor shall be made according to Provisions on Prohibition of Employing Child Labor (Decree No.81 of the State Council) and Provisions
on Standard of Punishment of Employing Child Labor (LaoLiZi [1992] No.27) promulgated by the Ministry of Labor.



 
The General Office of the Ministry of Labor
1997-10-08

 







REGULATIONS OF SHANGHAI MUNICIPALITY ON ROAD TRAFFIC ADMINISTRATION

Regulations of Shanghai Municipality on Road Traffic Administration

    

CHAPTER I GENERAL PROVISIONS

CHAPTER II PEDESTRIANS AND PASSENGERS

CHAPTER III VEHICLES

CHAPTER IV VEHICLE DRIVERS

CHAPTER V THE TRAFFIC OF VEHICLES

CHAPTER IV ROADS AND PARKING

CHAPTER VII PROPAGANDA AND EDUCATION FOR TRAFFIC SAFETY

CHAPTER VIII HANDLING OF TRAFFIC ACCIDENTS

CHAPTER IX LEGAL LIABILITY

CHAPTER X SUPPLEMENTARY PROVISIONS

   Article 1 With a view to strengthening road traffic administration, safeguarding traffic order, ensuring the safety of road traffic
and keeping the roads unimpeded, and in accordance with the “People’s Police Law of the People’s Republic of China”, the “Regulations
of The People’s Republic of China On Road Traffic Administration” and other relevant laws and regulations, the present Regulations
are hereby formulated by considering the actual situation of the Municipality of Shanghai.

   Article 2 The present Regulations are applicable to the traffic activities and their administration within the administrative areas
of this Municipality.

   Article 3 The Municipal Public Security Bureau is in charge of the road traffic administration of this Municipality. The municipal and
district or county traffic administrative departments of public security are specifically responsible for the road traffic
administration within areas under their jurisdiction in accordance with their respective duties.

The relevant administrative departments of the municipal, district and county people’s government shall jointly do the
road traffic administration work well.

   Article 4 The Municipality implements the system of job responsibility for traffic safety in order to reduce violations of traffic regulations
and prevent traffic accidents.

Each organ, military unit, educational institution, social organization, enterprise and institution (hereinafter referred to as
“unit”) shall put the system of job responsibility for traffic safety into effect and shall strengthen the education for
traffic safety of all the personnel in the unit and tighten vehicle control.

   Article 5 Funds for traffic control equipment, for construction, maintenance and renewal of facilities for traffic safety and funds
for propagating traffic safety shall be included in the budget of the municipal, district and county people’s government.

   Article 6 Every unit and individual person shall observe traffic regulations. Traffic administrative departments of public security
and all of the traffic policemen shall be faithful in the discharge of their duties, enforce the law impartially, and strictly
and with civility.

   Article 7 May 5th of every year shall be the publicity day for no- violation of traffic regulations, no traffic accident and road traffic
safety.

CHAPTER II PEDESTRIANS AND PASSENGERS

   Article 8 Pedestrians shall walk on the following roads:

1. Pedestrian streets;

2. Sidewalks; or

3. Pedestrian overpass or underground walk-through;

Pedestrians may walk within one mete from the edge of the street or the obstacle when there are no side walks on the street or
when there is an obstacle on sidewalks blocking the passage.

Pedestrians shall walk on the pedestrian crossings and abide by traffic signals and shall not cross over the median strip for
separating fast traffic lane from slow traffic lane when they need to cross vehicle lanes.

   Article 9 Those who push motorcycles or non-motor-driven vehicles on vehicle lanes shall observe the following rules:

1. Keep closely to the edge of the right side while pushing. They shall push along the way shown by traffic signs if there are
any;

2. When they need to cross vehicle lanes, they shall push motorcycles or non-motor vehicles in the same way as the pedestrians
cross vehicle lanes; and

3. They are not allowed to push motorcycles or non-motor vehicles two or more abreast.

   Article 10 Pedestrians are forbidden to enter any expressway, overpass and other roads of no admittance. Pedestrians are forbidden to
enter traffic control areas without authorization.

   Article 11 Pedestrians shall observe the following rules:

1. They shall not wait for cars or buses on vehicle lanes;

2. They shall not litter roads from a vehicle;

3. They shall not interfere with the driver’s operation while the motor- vehicle is going;

4. They shall not get on or off a vehicle on the vehicle lane through the left-side door; and

5. They shall not get on or off a motor-vehicle before it comes to a standstill.

   Article 12 The traffic administrative departments of public security shall inspect all vehicles.

Only after having passed the inspection conducted by the departments of public security traffic control, having been registered,
and having acquired license numberplates, driving permits or licenses can vehicles be allowed to run on roads.

   Article 13 This Municipality implements a regulatory control over the distribution of vehicle numberplates.

The annual distribution of license numberplates for motor-vehicles and the method of granting shall be put forward by the Municipal
Planning Commission jointly with the Municipal Traffic Administrative Department of Public Security and other relevant
departments and shall be implemented after approved by the Municipal Government.

This Municipality exercises a strict control over approving and issuing license numberplates for pedicabs and stops approving
and issuing license numberplates for petro-driven bicycles in urban districts.

   Article 14 A unit or an individual person that meets the conditions for applying for license numberplates may apply for the
license numberplates, driving permits or licenses from the traffic administrative department of public security
with valid certificates of vehicles in accordance with the provisions of laws and regulations of the State and this Municipality.

   Article 15 Vehicles eligible for application for vehicle license numberplates, and driving licenses and permits shall be the China-made
vehicles listed in the product catalogue of home-made vehicles published by the State and this Municipality. Imported foreign
made vehicles shall meet the requirements provided by regulations promulgated by the State.

   Article 16 This Municipality implements the third-party liability insurance for motor vehicles in accordance with the provisos of
the State law and regulations and advocates the third-party liability insurance for non-motor vehicles.

   Article 17 The traffic administrative department of public security shall inspect vehicles at regular intervals.

Those vehicles that have not been inspected at regular intervals or have been inspected but graded as unqualified by the traffic
administrative department of public securely shall not be allowed to run on roads.

Motor vehicles under one of the following conditions shall receive special inspection by public security of traffic administration.
Those motor vehicles that have not been specially inspected or have been specially inspected but graded as unqualified
shall not be allowed to run on roads:

1. Vehicles with changes in body installations, in color, or in major technical parameters;

2. Vehicles whose conditions do not tally with the State technical requirements for safe running of motor vehicles; or

3. Vehicles that have been repaired due to damage caused by major or exceptionally serious traffic accidents.

   Article 18 Those who need to have a motor vehicle refitted shall apply to the Municiple Department of Public Security and provide relevant
technical datum concerned, and are allowed to have it refitted only after examination, verification and approval.

The Municipal Department of Public Security shall participate in the expounding and proving of safety techniques and in the
appraisal of functions of new types and new models of vehicles developed in Shanghai.

   Article 19 advertisements that have been permitted to be installed on vehicle bodies shall comply with the provisions of the laws
and regulations on advertisement and shall be installed in the modes and places stipulated by the municipal Traffic Administrative
Department of Public Security.

   Article 20 A motor vehicle that need to have a transfer of owner ship, an alteration of place of registration, or to be scrapped, renovated,
alliterated, stopped using or resumed using shall comply with the relevant provisions State and municipal laws and regulations,
and the owner of the vehicle shall go to the Municipal Traffic Administrative Department of Public Security and other
relevant departments to go through the relevant procedures.

   Article 21 This Municipality shall take optimization measures for the composition of vehicle types, vehicle performance and vehicle fuel.

Any motor vehicle that meets the scrap standard in terms of a vehicle’s service life, traveling mileage, damage level, or energy
consumption, or discharging pollutant has to be scrapped.

The department that is to take up the responsibility for unified reclaiming and disintegrating of the scrapped motor-vehicles
shall be specifically appointed by the Municipal People’s Government.

   Article 22 The following acts are forbidden:

1. Installing a motor on a non-motor vehicle;

2. Assembling a vehicle with parts taken from different vehicles;

3. Replacing the vehicle’s engine, frame or chassis without permission; or

4. Using signs for special vehicles stipulated by the State without authorization.

   Article 23 Those who drive motor vehicles shall hold driving-licenses of the People’s Republic of China (here after referred to as driving-
license).

Those who drive special vehicles for the disabled with power installation or those who ride motorbikes shall
hold operation certificates of special vehicles for the disabled of Shanghai or operation certificates of motorbike
of Shanghai (hereinafter referred to as operation certificate).

   Article 24 Those who apply for trainee driving licenses shall meet the following conditions:

1. Possessing residential certificate of this Municipality;

2. In line with the age stipulated by the State that is permitted to learn to drive; and

3. Being tested to be qualified in driving adaptability.

For those who are in line with the rules of the previous section and have been passed the test on knowledge of traffic laws
and regulations by the Municipal Traffic Administrative Department of Public Security, the Municipal Traffic Administrative
Department of Public Secretly shall ratify and issue the trainee driving license within 15 days after receipt of the application
for motor-vehicles driving and other relevant certificates.

   Article 25 Those who learn to drive motor vehicles on roads shall carry on the driving practice on the roads and at the time stipulated
by the Municipal Traffic Administrative Department of Public Security.

   Article 26 Those who apply for driving trainer’s certificates of motor vehicles shall meet the following conditions:

1. Having been motor vehicle driving for over 5 years; and

2. Having caused no major traffic accidents or having not been primarily liable for any ordinary traffic accident within the latest
3 years.

Those who meet the conditions of the previous Section and have passed the qualification test offered by the Municipal Department
of Public Security, the Municipal Traffic Administrative Department of Public Security shall verify and grant them driving
trainer’s certificates of motor-vehicles corresponding to the vehicle model permitted to be driven within 15 days after the
test.

Those who have not been granted driving trainer’s certificates of motor vehicles are not allowed to engage in training work

   Article 27 Those who have applied for driving licenses of motor vehicles shall take examinations given by the Municipal Traffic Administrative
Department of Public Security. For those who have passed the examinations, the traffic administrative department
of public security shall approve and grant them driving licenses whining 15 days after the examinations.

   Article 28 Those motor-vehicle drivers who need to practice in accordance with the State stipulations, shall hang signs indicating
driving-practice in their vehicles during practice period.

   Article 29 Those who apply for operation certificates shall meet the following conditions:

1. Having been registered as permanent resident of this Municipality; and

2. Having reached the age of 16.

For those who meet the provisions of the previous Section, and have passed the examinations given by the district or
county traffic administrative department of public security, the district or county traffic administrative department
of public security shall approve and grant them operation certificates within 15 days after the examinations.

Those who are disabled not in lower limbs shall not be allowed to apply for operation certificates of the special vehicles for
the disabled; those whose disabled limbs have affected driving shall not be allowed to apply for operation certificates of
motorbikes.

   Article 30 This Municipality implements the totting-up system of traffic offenses for motor vehicle drivers.

The traffic administrative department of public security shall penalize the motor vehicle drivers who have violated traffic
laws and shall record one or two points according to the seriousness of the case.

Motor-vehicle drivers who have been accumutalively registered 10 points within one year shall accept education on special topics
for traffic safety; motor-vehicle drivers who have been registered 20 points shall have their driving licenses canceled.

   Article 31 Drivers shall strengthen their sense of abiding by traffic laws and regulations and accept the traffic safety education concerning
traffic laws and regulations, safe driving skills, and professional ethics of driving.

Schools of traffic safety education at different levels shall perfect their rules and regulations, make their educational
program practicable, and raise the quality of education.

   Article 32 Those motor vehicle drivers who have been involved in one of the following situations shall take driving adaptability test anew:

1. Having caused a major traffic accident with serious liability or having been more than primarily liable for an ordinary
traffic accident; or

2. Needed to be engaged in public passenger transport;

Those motor-vehicle drivers who have been involved in one of the following situations shall take driving adaptability
test at regular intervals:

1. Having been engaged in transporting dangerous articles; or

2. Having reached the age of 60 and being required to continue driving motor vehicles.

Those motor-vehicle drivers who failed in the adaptability tests shall not be allowed to be engaged in driving motor-vehicles
for public passenger transport or transport of dangerous articles. Those drivers who failed to pass the comprehensive appraisals
shall not be allowed to be engaged in driving any motor-vehicles.

   Article 33 The traffic administrative department of public security shall examine and verify the driving licenses of all drivers at regular
intervals.

Those drivers whose driving licenses have not been examined and verified within the stipulated time or have been proved to be
unqualified after examination and verification shall not be allowed to drive motor- vehicles.

   Article 34 The following acts are forbidden:

1. Forging, falsely claiming as their own, or buying and selling passes for motor vehicles;

2. Forging, or altering without authorization operation certificates, or using forged, illegally altered operation certificates,
or using operation certificates by assuming the real owners’ names;

3. Continuing to drive vehicles after their driving licenses or operation certificates have been revoked or canceled;

4. Continuing to drive vehicles beyond the valid time of the suspension certificates after their driving licenses or operation
certificates have been suspended;

5. Using mobile phones while driving vehicles;

6. Those disabled not in lower limbs driving special vehicles for the disabled; or

7. Non-nursing staff riding in special vehicles for the disabled.

CHAPTER V THE TRAFFIC OF VEHICLES

   Article 35 Each vehicle shall run in its own lane. When a vehicle runs into an obstacle and must make use of another lane, it shall let
the vehicle that is running in that another lane have priority of passing.

   Article 36 The traffic administrative department of public security may adopt various measures of balancing traffic volume, dividing the
time for different vehicles, delimiting restricted areas for the passing vehicles, and approving and issuing motor vehicle
passes in accordance with the principles of necessity, reasonableness and favoring the unimpeded flow of traffic.

The traffic administrative department of public security may set up or regulate temporary parking spaces to cope with the traffic
situation on the road and temporary parking needs in accordance with the provisions of the relevant traffic regulations. The
setting-up of temporary parking spaces shall be under strict control and shall not block the traffic.

The traffic administrative department of public security shall report to the Municipal People’s Government for approval and
shall issue an announcement 10 days before the implementation of such major measures as closing arterial roads, organizing
regional one-way traffic network and pedestrians-only streets. But special and emergent cases are excepted.

   Article 37 The following vehicles are forbidden to run on roads:

1. Animal-driven carts, wheelbarrows, and jinn rickshaws;

2. Caterpillar motor-vehicles;

3. Motor pedicabs;

4. Motor vehicles towing full trailers; or

5. Other prohibited vehicles stipulated by the Municipal People’s Government.

Motorbikes with suburban numberplates are forbidden to run on roads in urban areas.

Tractors are not allowed to run in downtown areas and at the time and road sections closed to traffic as stipulated by
the municipal department of public security traffic administration.

   Article 38 The traffic administrative department of public security shall check and ratify traveling routes and stops in accordance
with the principles of public passenger transport vehicles having priority, making things convenient for city residents and
making things orderly and safe, and shall give an answer within 30 days after receiving the application for establishing
new routes and setting up new stops.

Buses, trams and trolley buses, buses for special routes, long-distance buses, and commuter passenger vehicles shall run or stop
according to ratified routes and stops.

Vehicles for transporting building garbage and project waste residues and excavated earth shall run according to the ratified
routes and time.

   Article 39 Those motor vehicles that are faced with traffic jams on the road ahead shall go in proper order and shall not stop on pedestrian
crossings or on the No-Parking-Line of the road when they need to wait for passing through.

   Article 40 Non-motor-vehicles shall not run on motor-vehicle lanes when they are running on roads with median strips separating motor-vehicle
lanes from non-motor-vehicle lanes.

Non-motor vehicles shall not run on motor-vehicle lanes when they are running on roads which divisional lines separating motor-vehicle
lanes from non-motor-vehicle lanes. But the following circumstances are excepted: when vehicles temporarily stop on non-motor-vehide
lanes; when there are obstacles on non-motor-vehide lanes; and when the road surface of the lane has been damaged and the non-motor
vehicle has to make use of the nearby motor-vehicle lane.

Non-motor vehicles are forbidden to stop beyond the divisional line and the halt line at the crossroads.

Vehicles are forbidden to run or stop willfully on side pavements.

   Article 41 Overpasses are specially meant for motor-vehicles and the following vehicles are forbidden to pass through:

1. Non-motor vehicles;

2. Light motorcycles and two-wheeled motorcycles;

3. Storage battery cars and special wheeled machine vehicles;

4. Tractors;

5. Vehicles hanging signs of test run and coach driving;

6. Vehicles towing construction machinery;

7. Articulated buses, vehicles with trailers, and freight vehicles loading over 8 tons;

8. Motor vehicles with the designed top speed below 60 km. per hour; or

9. Other motor vehicles stipulated by the Municipal People’s Government.

   Article 42 Lanes of overpasses are divided into fast lanes and slow lanes. When the road ahead is clear of obstructions, vehicles shall
run according to the speed signs shown along the lane.

   Article 43 Vehicles running on the overpasses are not allowed to shift lanes willfully.

Those vehicles that are running on the overpasses and need to shift lanes shall not shift two lanes at one time and shall
not affect other vehicles’ normal running.

   Article 44 Vehicles that are to run on the overpass shall be kept in good conditions and shall not break down for lack of electricity,
water, and peter, and shall not stop willfully. For those vehicles that cannot go on running because of breakdowns, the drivers
shall move them to the right side, install warning signs according to the rules, and report the breakdown in time.

   Article 45 The development programmer and construction of urban roads shall meet the needs of road traffic development and enhance
road capacity. The municipal, district and county people’s government shall organize departments of public works, city
planning and the traffic administrative department of public security to draw up the development programmer and construction
plan of urban roads and to put the programmer and plan into effect according to the overall plan of this Municipality.

The detailed plan of roads shall be submitted to the Municipal Traffic Administrative Department of Public Security for advice
and shall be reported to the Municipal People’s Government for decision if difference in opinion occurs.

   Article 46 The department of road construction shall take the needs of road traffic and administration into consideration in designing
roads and shall let the traffic administrative department of public security examine, verify and approve the scheme of organizing
traffic and designs of installations for traffic safety and intersection canalization. The traffic administrative department
of public security shall participate in check and acceptance when the road construction is completed.

   Article 47 When pipelines and streamers are installed stretching across a road, the edge of the lower part of these objects shall be
at a distance of no less than 520cm from the road surface. When objects stretching over the side pavement from the buildings
along the road, the edge of the lower part of these objects shall be at a distance of no less than 250cm from the road surface,
and the edge of the object shall be at a distance of no less than 20cm from the vehicle traffic lane.

   Article 48 The following acts that have occupied and used roads in such a manner so as to jeopardize traffic safety or disturb traffic order
are forbidden:

1. Dumping building garbage and project waste residues and excavated earth;

2. Setting up spots to clean or maintain motor vehicles; or

3. Installing marks and signs containing traffic instructions without authorization.

   Article 49 The traffic administrative department of public security shall install traffic signal lights, signs and line markings to meet
the needs of road traffic administration and the requirements for convenient recognition according to law and shall restore
and renew these damaged or incomplete traffic installations in time.

   Article 50 Traffic distributing centers such as the newly-built, or reconstructed, or extended railway stations, harbors, airports
underground railway and light railway stations with big flows of passengers, and newly-built public buildings and residential
buildings shall be equipped supplementary or additionally with parking lots (or garages) by the construction units according
to relevant laws and regulations. The reconstructed or extended public buildings, or residential buildings shall
also be supplementary or additionally equipped with parking lots (or garages) according to relevant laws and regulations.
Those units that have actual difficulties in providing sufficient parking spaces as required by relevant laws and regulations,
shall obtain the assent from the relevant department of administration and the traffic administrative department of public
security, and shall pay the cost for the construction of parking lots (or garages) that are deficient.

Parking lots (or garages) shall be designed, constructed and put into use simultaneously with the principal part of the project.

   Article 51 The traffic designs of parking lots (or garages) shall tally with the installation standards for parking lots (or garages) stipulated
by the State and this Municipality. The number of parking spaces, the position of the entrances and exits the installation
of traffic signs and line markings shall be examined, verified and approved by the traffic administrative department
of public security.

When the contraction of the parking lots (or garages) is completed, the construction units shall apply to the traffic administrative
department of public security that has originally verified and approved the project for checking and acceptance of the number
of parking spaces, the position for entrances and exits, the installation of traffic signs and line markings. After they
are checked and accepted, they may be made available to users. If they have not been checked or have been checked but not
accepted, they are not allowed to be made available to users.

Social parking lots (or garages) and parking lots (or garages) attached to public buildings shall be open to the vehicles of the
whole society.

   Article 52 When there is a change in the use of the parking lots (or garages), approval of the administrative departments of planning
and construction and the assent of the traffic administrative department of public security shall be obtained, and new parking
spaces shall be built to make up the deficiency of parking spaces, or an amount equivalent to 130% of the construction cost
of the deficient number of parking spaces shall be paid.

The deficient construction cost shall be collected by the municipal administrative department of construction and it shall
be specifically used for building social parking lots (or garages), and shall not be diverted to other purposes.

   Article 53 The traffic administrative department of public security has the power to tow away following motor vehicles by compulsory means:

1. Those parked in violation of traffic regulations;

2. Those unable to run due to traffic accident; or

3. Those unable to run due to breakdowns and impeding road traffic.

CHAPTER VII PROPAGANDA AND EDUCATION FOR TRAFFIC SAFETY

   Article 54 Under the leadership of the people’s government at the same level, the traffic administrative department of public security conducts
propaganda and education for traffic safety, and perform the following duties:

1. Formulating and implementing examination and verification of responsibility and objective for traffic safety and measures
of rewards and penalties;

2. Guiding and supervising various units in implementing the system of responsibility for traffic safety;

3. Organizing competitions for traffic safety and activities of appraisal through comparison; and

4. Carrying out other activities of propaganda and education for traffic safety.

   Article 55 A unit shall clearly appoint persons to specially take charge of the work of traffic safety and perform the following duties:

1. Organizing people to formulate its own system of traffic safety, implementing responsibilities and objectives for traffic
safety and taking preventive measures;

2. Organizing the study of knowledge about traffic safety;

3. Organizing the inspections of vehicle safety, so as to guarantee the safety of vehicles, and to remove in time a hidden peril
of an accident.

   Article 56 A unit shall launch activities of propaganda and education for traffic safety among staff members.

Middle schools and primary schools shall carry out educational activities on special topics of traffic safety taking
content of knowledge of traffic safety as content.

   Article 57 Departments of the press publication broadcast, film, television, culture, and education, and mass organizations such as
trade unions, the women’s federation, and the Communist Youth

REGULATIONS ON BROADCASTING AND TELEVISION ADMINISTRATION

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-08-11 Effective Date  1997-09-01  


Regulations on Broadcasting and Television Administration

Chapter I  General Provisions
Chapter II  Broadcasting Stations and Television Stations
Chapter III  Networks of Broadcasting and Television Transmission
Chapter IV  Broadcasting and Television Programmes
Chapter V  Penalty Provisions
Chapter VI  Supplementary Provisions

(Adopted at the 61st Executive Meeting of the State Council on August 1,

1997, and promulgated by Decree No.228 of the State Council of the People’s
Republic of China on August 11, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose of enhancing
broadcasting and television administration, developing the cause of
broadcasting and television and promoting the building of socialist
spiritual civilization and material civilization.

    Article 2  These Regulations shall be applicable to such activities as
the establishment of broadcasting stations and television stations and
gathering and editing, making, broadcasting and transmitting broadcasting
and television programmes within the territory of the People’s Republic of
China.

    Article 3  The cause of broadcasting and television should adhere to
the orientation of serving the people and socialism and persevere in
correct media guidance.

    Article 4  The State develops the cause of broadcasting and television.
People’s governments at or above the county level should integrate the cause
of broadcasting and television into national socio-economic development
plans and gradually increase input in the light of requirements and
financial resources to improve the coverage of broadcasting and television.

    The State supports the development of the cause of broadcasting and
television in rural areas.

    The State supports the nationalities autonomous areas and poor remote
regions in the development of the cause of broadcasting and television.

    Article 5  The department of broadcasting and television administration
under the State Council shall be responsible for broadcasting and television
administration across the country.

    The departments or agencies in charge of broadcasting and television
administration (hereinafter referred to as departments of broadcasting and
television administration) of local people’s governments at or above the
county level shall be responsible for broadcasting and television
administration within their respective administrative areas.

    Article 6  National societies for the broadcasting and television trade
shall practise self-disciplined management in accordance with their
constitutions and conduct activities under the guidance of the department
of broadcasting and television administration under the State Council.

    Article 7  The State shall give rewards to units and individuals
having made outstanding contributions to the development of the cause
of broadcasting and television.
Chapter II  Broadcasting Stations and Television Stations

    Article 8  The department of broadcasting and television administration
under the State Council shall be responsible for the formulation of the plan
for the establishment of broadcasting stations and television stations
nationwide and the determination of the aggregate, distribution and structure
of broadcasting stations and television stations.

    The broadcasting stations and television stations referred to in these
Regulations mean agencies gathering and editing, making and broadcasting
broadcasting and television programmes via cable or wireless mode.

    Article 9  Establishment of a broadcasting station or television station
should fulfil the following qualifications:

    (1) having specialized personnel of broadcasting and television conforming
to state provisions;

    (2) having technical equipment of broadcasting and television conforming
to state provisions;

    (3) having necessary capital construction funds and stable fund guarantee;
and

    (4) having a necessary site.

    In addition to compliance of the qualifications listed in the preceding
paragraph, examination and approval of establishment of a broadcasting
station or television station should also conform to the state construction
plan for broadcasting and television and the technological development plan.

    Article 10  Broadcasting stations and television stations shall be
established by departments of broadcasting and television administration
of people’s governments of counties and municipalities without subordinate
districts and above, among which educational television stations may be
established by departments of education administration of people’s governments
of municipalities with subordinate districts and autonomous prefectures and
above. No other units or individuals shall establish broadcasting stations
and television stations.

    The State prohibits the establishment of foreign capital operated,
Sino-foreign joint venture and Sino-foreign cooperative venture broadcasting
stations and television stations.

    Article 11  The central broadcasting station and television station shall
be established by the department of broadcasting and television administration
under the State Council. For the establishment of broadcasting stations and
television stations by localities, applications shall be filed by the
departments of broadcasting and television administration of people’s
governments of counties and municipalities without subordinate districts
and above and upon the examination and consent of the people’s governments
at the same level, submitted level by level and preparations for construction
may be undertaken only upon the examination and approval of the department
of broadcasting and television administration under the State Council.

    The central educational television station shall be established by the
department of education administration under the State Council, subject to
the examination and approval of the department of broadcasting and television
administration under the State Council. For establishment of educational
television stations by localities, applications shall be filed by the
departments of education administration of local people’s governments of
municipalities with subordinate districts and autonomous prefectures and
above, submitted level by level upon gaining the consent of the department
of broadcasting and television administration at the same level and the
examination and approval of the people’s government at the same level,
and preparations for construction may be undertaken only upon the examination
and approval of the department of broadcasting and television administration
under the State Council following the examination and verification of the
department of education administration under the State Council.

    Article 12  Engineering construction of broadcasting stations and
television stations the preparations for construction of which have been
approved should proceed in accordance with the construction procedures and
technological standards for broadcasting and television prescribed by the
State.

    Licences for broadcasting station and television station shall be issued
to those broadcasting stations and television stations the construction of
which has been completed upon examination by the department of broadcasting
and television administration under the State Council which finds them to
conform to the qualifications. Broadcasting stations and television stations
should make and broadcast programmes in accordance with such particulars
as the station name, station sign, programme scope and set number of
programmes specified in the licences.

    Article 13  Changes in station names, station signs, programme scope or
set number of programmes of broadcasting stations and television stations
shall be subject to the approval of the department of broadcasting and
television administration under the State Council.

    No broadcasting station or television station shall lease or transfer
broadcasting time bands.

    Article 14  Termination of a broadcasting station or television station
shall be submitted in accordance with the original examination and approval
procedures, and its licence shall be withdrawn by the department of
broadcasting and television administration under the State Council.

    A broadcasting station or television station which finds it necessary
to suspend broadcasts owing to extraordinary circumstances should be
subject to the consent of the department of broadcasting and television
administration of the people’s government at or above the provincial level;
a broadcasting station or television station the continuous stoppage of
broadcasting of which exceeds 30 days without approval shall be regarded as
termination and shall go through the relevant formalities pursuant to the
provisions of the preceding paragraph.

    Article 15  The departments of broadcasting and television administration
of people’s governments at or above the county level of the localities shall
be responsible for the examination and verification of the establishment of
broadcasting and television stations by villages and townships therein, and
the examination and approval of which shall be handled in accordance with the
relevant provisions of the department of broadcasting and television
administration under the State Council.

    Examination and approval of establishment of cable broadcasting and
television stations by organs, army units, societies, enterprises and
institutions shall be handled pursuant to the relevant provisions of the
State Council.

    Article 16  No unit or individual shall forcibly enter broadcasting
stations and television stations, or damage the installations of broadcasting
stations and television stations, or endanger their secure broadcasts.
Chapter III  Networks of Broadcasting and Television Transmission
Coverage

    Article 17  The department of broadcasting and television administration
under the State Council shall carry out unified planning on the coverage of
broadcasting and television transmissions across the country in accordance
with uniform state standards, and construction and development shall be
carried out at different levels. The departments of broadcasting and
television administration of local people’s governments at or above the county
level should, pursuant to relevant state provisions, construct and manage
networks of broadcasting and television transmission coverage within their
respective administrative areas.

    Construction of networks of broadcasting and television transmission
coverage including full exploitation of all kinds of existing resources of
public telecommunications of the state should ensure the quality and
unimpeded traffic of transmissions of broadcasting and television programmes.

    The networks of broadcasting and television transmission coverage
referred to in these Regulations shall be composed of broadcasting and
television transmitting stations, relay stations (including differential
relay stations and reception relay stations, the same hereinafter),
broadcasting and television satellites, satellite up-link stations,
satellite reception and relay stations, microwave stations, monitoring
stations (posts) and networks of cable broadcasting and television
transmission coverage.

    Article 18  The department of broadcasting and television administration
under the State Council shall be responsible for the designation and
allocation of frequencies of special-purpose channels and bands for
broadcasting and television and the verification and issuance of certificates
of designation and allocation of special-purpose frequencies.

    Article 19  Establishment of broadcasting and television transmitting
stations, relay stations, microwave stations, satellite up-link
stations should, pursuant to relevant state provisions, go through
formalities of examination and approval at the radio control agencies of the
State, or the province, autonomous region and municipality directly under the
Central Government on the strength of the certificates of designation and
allocation of special-purpose frequencies issued by the department of
broadcasting and television administration under the State Council and obtain
radio station licences.

    Article 20  Broadcasting and television transmitting stations and
relay stations should transmit and relay broadcasting and television
programmes in accordance with the relevant provisions of the department
of broadcasting and television administration under the State Council.

    Frequencies, channels and bands of broadcasting and television
transmitting stations and relay stations the use of which has been verified
and approved shall not be leased or transferred, and all technical
parameters already approved shall not be changed without authorization.

    Article 21  No broadcasting and television transmitting station and
relay station shall broadcast self-sponsored programmes or insert
advertisements without authorization.

    Article 22  Site selection, design, construction and installation of
projects of the networks of broadcasting and television transmission coverage
should be handled pursuant to the relevant state provisions and undertaken
by units with acquisition of corresponding certificates of qualifications
according to law.

    Construction of projects of the networks of broadcasting and television
transmission coverage and the technical equipment of broadcasting and
television used therein should conform to state standards and trade
standards. Acceptance checks shall be organized by the departments of
broadcasting and television administration upon completion of the projects
which may be put into operation only upon passing the acceptance checks.

    Article 23  Regional networks of cable broadcasting and television
transmission coverage shall be set up and managed by the departments of
broadcasting and television administration of local people’s governments at
or above the county level.

    Plans and construction schemes for the regional networks of cable
broadcasting and television transmission coverage shall be carried out upon
approval by the departments of broadcasting and television administration of
people’s governments of the provinces, autonomous regions and municipalities
directly under the Central Government when submitted by the departments of
broadcasting and television administration of people’s governments at the
county level or those of the municipalities with subordinate districts and
autonomous prefectures, or carried out upon approval by the department of
broadcasting and television administration under the State Council when
submitted by the departments of broadcasting and television administration of
people’s governments of the provinces, autonomous regions and municipalities
directly under the Central Government.

    Only one regional network of cable broadcasting and television
transmission coverage shall be set up in the same administrative region. Cable
television stations shall be hooked up with the regional network of cable
television transmission coverage according to the plan.

    Article 24  No unit or individual shall broadcast any programme via a
network of cable broadcasting and television transmission coverage without
approval.

    Article 25  Control and use of satellite space band resources for the
transmission of broadcasting and television programmes should conform to the
relevant state provisions.

    Transmission of broadcasting and television programmes using the satellite
mode by broadcasting stations or television stations should conform to the
requirements prescribed by the State and be subject to the examination,
verification and approval of the department of broadcasting and television
administration under the State Council.

    Article 26  For installation and use of ground reception facilities for
satellite broadcast and television, an application for the acquisition of a
licence should, pursuant to the relevant state provisions, be submitted to the
department of broadcasting and television administration of the people’s
government of the province, autonomous region or municipality directly under
the Central Government. Import of decipherer, depressurizers and other ground
reception facilities for satellite broadcast and television for external
satellite broadcasting and television programmes shall be subject to the
examination and approval of the department of broadcasting and television
administration under the State Council.

    Article 27  Infringing on or occupying, gathering together to rob,
or destroying in other forms facilities of networks of broadcasting and
television transmission coverage by any unit or individual shall be
prohibited.

    Article 28  No unit or individual shall infringe on or occupy and
interfere with the special-purpose broadcasting and television frequencies,
or intercept the transmission of, interfere with or descramble
broadcast and television signals.

    Article 29  The departments of broadcasting and television administration
of people’s governments at or above the county level should adopt diverse
forms of satellite transmission, radio relay, cable broadcast and cable
television to improve the rate of broadcasting and television coverage in
rural areas.
Chapter IV  Broadcasting and Television Programmes

    Article 30  Broadcasting stations and television stations should run
programmes according to the scope for the setting up of programmes approved by
the department of broadcasting and television administration under the State
Council.

    Article 31  Broadcasting and television programmes shall be made by
broadcasting stations, television stations and broadcasting and television
programme production and marketing units the establishment of which has been
approved by the departments of broadcasting and television administration
of people’s governments at or above the provincial level. No broadcasting
station or television station shall broadcast broadcasting and television
programmes produced by units without the acquisition of licenses for
broadcasting and television programme production and marketing.

    Article 32  Broadcasting stations and television stations should improve
the quality of broadcasting and television programmes, increase the number of
excellent Chinese programmes and ban the production and broadcast of
programmes containing any of the following contents:

    (1) that which endangers the unity, sovereignty and territorial integrity
of the country;

    (2) that which endangers state security, honour and interests;

    (3) that which instigates nationality separation or disrupts nationality
solidarity;

    (4) that which divulges state secrets;

    (5) that which slanders or insults others;

    (6) that which propagates obscenity, superstition or plays up violence; and

    (7) other contents prohibited under provisions of laws and regulations.

    Article 33  Broadcasting stations and television stations should conduct
pre-broadcast censorship and rebroadcast censorship over the contents of
their respective broadcasting and television programmes pursuant to the
provisions of Article 32 of these Regulations.

    Article 34  Newscasts and television news should be true and just.

    Article 35  Establishment of a television opera production unit shall be
subject to the approval of the department of broadcasting and television
administration under the State Council and a licence for television
opera production obtained before it may produce television operas.

    Control measures for television opera production and broadcast shall be
formulated by the department of broadcasting and television administration
under the State Council.

    Article 36  Broadcasting stations and television stations should use
standardized spoken and written languages.

    Broadcasting stations and television stations should popularize the
common spoken Chinese in common use nationwide.

    Article 37  Local broadcasting stations, television stations or
broadcasting and television stations should relay broadcasting and
television programmes pursuant to the relevant provisions of the department
of broadcasting and television administration under the State Council.

    Broadcasting and television stations set up by villages and townships
shall not run their own television programmes.

    Article 38  Broadcasting stations and television stations should
broadcast broadcasting and television programmes according to the advance
programme announcements; for necessity of changing or adjusting the original
programmes the advance announcements of which have been made, notices should
be given to the public in advance.

    Article 39  External films and television operas to be used for
broadcast by broadcasting stations and television stations must be subject
to the examination and approval of the department of broadcasting and
television administration under the State Council. Other external
broadcasting and television programmes to be used for broadcast by
broadcasting stations and television stations must be subject to the
examination and approval of the department of broadcasting and television
administration under the State Council or its authorized agencies.

    Broadcasting and television programmes to be provided to users abroad
should be reported to the departments of broadcasting and television
administration of people’s governments at or above the provincial level for
the record pursuant to relevant state provisions.

    Article 40  The percentage of time of broadcasting external broadcasting
and television programmes and the total broadcast time of broadcasting and
television programmes by broadcasting stations and television stations shall
be determined by the department of broadcasting and television administration
under the State Council.

    Article 41  Import and relay of external broadcasting and television
programmes via satellite and other modes by broadcasting stations and
television stations must be subject to the approval of the department of
broadcasting and television administration under the State Council.

    Article 42  Broadcast of advertisements by broadcasting stations and
television stations must not exceed the time prescribed by the department
of broadcasting and television administration under the State Council.

    Broadcasting stations and television stations should broadcast non-profit
advertisements.

    Article 43  The department of broadcasting and television administration
under the State Council may, under extraordinary circumstances, make a
decision to suspend the broadcast, change a particular programme or designate
the relay of a particular programme.

    Article 44  Educational television stations should broadcast all types
of educational and teaching programmes in accordance with the relevant state
provisions, and should not broadcast films or television films not related
to the contents of teaching.

    Article 45  Sponsorship of international or national exchanges and
transactions of broadcasting and television programmes should be subject to
the approval of the department of broadcasting and television administration
under the State Council and should be handled by designated units. Sponsorship
of regional exchanges and transactions of broadcasting and television
programmes should be subject to the approval of the department of
broadcasting and television administration of the people’s government of the
province, autonomous region or municipality directly under the Central
Government of the locality wherein such activities are to be conducted,
and they shall be handled by designated units.

    No unit or individual shall sponsor any exchange or transaction of
broadcasting and television programmes without approval.

    Article 46  Broadcast and use of broadcasting and television programmes
having copyrights shall be handled pursuant to the provisions of the
Copyright Law of the People’s Republic of China.
Chapter V  Penalty Provisions

    Article 47  Whoever, in violation of the provisions of these
Regulations, establishes a broadcasting station, or a television station,
or an educational television station, or a network of cable broadcasting and
television transmission coverage, or a broadcasting and television station
without authorization shall be banned by the department of broadcasting and
television administration of the people’s government at or above the county
level with its equipment for illegal activities confiscated and be imposed
a fine more than 100% and less than 200% of the total amount of investment.

    Establishment of a broadcasting and television transmitting station, or
a relay station, or a microwave station, or a satellite up-link
station shall be banned by the department of broadcasting and television
administration of the people’s government at or above the county level with
its equipment for illegal activities confiscated and be imposed a fine more
than 100% and less than 200% of the total amount of investment; or it will be
penalized by the radio control agency pursuant to the relevant provisions
of state radio control.

    Article 48  Establishment of a broadcasting and television programme
production and marketing unit without authorization or making television
operas and other broadcasting and television programmes without authorization
in violation of the provisions of these Regulations shall be banned by the
department of broadcasting and television administration of the people’s
government at or above the county level with its special-purpose tools,
equipment and programme carriers for illegal activities confiscated, and be
concurrently imposed a fine more than RMB 10,000 Yuan and less than RMB
50,000 Yuan.

    Article 49  Production, broadcasting and providing to users abroad of
programmes containing contents prohibited by the provisions of Article 32 of
these Regulations in violation of the provisions of these Regulations shall be
directed to stop the production, broadcasting and providing to users abroad
with its programme carriers surrendered and taken over, and be concurrently
imposed a fine more than RMB 10,000 Yuan and less than RMB 50,000 Yuan; where
the circumstances are serious, the original approval organ shall revoke its
licence; violators of public security provisions shall be penalized for
public security violations by the public security organ according to law;
where the offence constitutes a crime, criminal responsibilities shall be
investigated according to law.

    Article 50  Whoever, in violation of the provisions of these Regulations,
commits any of the following acts shall be directed by the department of
broadcasting and television administration of the people’s government at or
above the county level to stop the illegal activity, be administered a
warning with his/her illegal income confiscated and may concurrently
be imposed a fine less than RMB 20,000 Yuan; where the circumstances are
serious, the original approval organ shall revoke the licence:

    (

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...