2003

INTERIM MEASURES FOR THE ADMINISTRATION OF CHINESE CITIZENS GOING ABROAD ON TOURS AT OWN EXPENSES

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


Interim Measures for the Administration of Chinese Citizens Going Abroad on Tours at Own Expenses



(Approved by the State Council on March 17, 1997  Promulgated by the

State Tourism Administration and the Ministry of Public Security on
July 1, 1997)

    Article 1   These Measures are formulated in accordance with the on Exit and Entry Control of Citizens of the People’s Republic of China>
and the Rules for its implementation and the Administration of Travel Agencies> and the Rules for its implementation
for the purpose of strengthening the administration of Chinese citizens
going abroad on tours at own expenses, standardizing tourist activities
abroad and ensuring the legitimate rights and interests of persons joining
the tours.

    Article 2   Chinese citizens going abroad on tours at own expenses shall
mainly be in the form of groups and teams. Groups and teams shall mean tour
groups(hereinafter referred to as groups) going abroad which are organized by
travel agencies with right of business operations and are composed of more
than three persons. The destinations of countries and regions of tourism
abroad shall be put forth by the State Tourism Administration in conjunction
with the Ministry of Foreign Affairs and the Ministry of Public Security and
submitted to the State Council for examination and approval.

    Article 3   Development of tourism abroad by Chinese citizens at
own expenses must proceed in an organized, planned and controled way.
The State Tourism Administration shall, in accordance with the on the Administration of Travel Agencies> and achievements of travel agencies
in managing entry tourism, examine and approve travel agencies with special
permission to engage in business operations of tourism abroad by Chinese
citizens at own expenses(hereinafter referred to as travel agencies
authorized to organize tour groups), report the same to the Ministry of
Public Security for the record and make a public announcement. Any unit and
individual without approval shall not engage in such business operations.

    Article 4   The State Tourism Administration shall, in accordance with
the principle of aggregate control, practise quota control of organizing
groups for tours abroad by travel agencies authorized to organize tour
groups, verify and determine the number of persons for tours abroad in groups
to be organized by travel agencies authorized to organize tour groups in
accordance with a certain percentage of the number of persons these travel
agencies receive entry tourists, and unifiedly print and distribute with
serial numbers by Chinese Citizens at own Expenses>(hereinafter referred to as and Verification Certificate>). The Certificate> in triplicate shall be issued to each tourist.

    Article 5   Travel agencies authorized to organize tour groups shall,
in accordance with the quota verified and determined by the State Tourism
Administration, handle such formalities as registrations by tourists and
collection of payment etc., and fill in the Certificates>. Contents of the
include basic information of tourists, name of the tour group, tourist
route, rate and the amount actually paid etc..

    Article 6   When qualified upon examination by the State Tourism
Administration or the department of tourism administration at the provincial
level where the travel agency is located, the examination and verification
seal shall be affixed thereon. One copy of which shall be kept by the
department of tourism administration responsible for the examination and
verification, another copy of which shall be handed over to the public
security organ by the tourist for examination and inspection, the third copy
of which shall be kept by the travel agency authorized to organize the tour.
For anyone without qualified , the
public security organ shall not process the procedures of going abroad on
tour.

    Article 7   The tourists, after registration of names and making full
payment at the travel agency authorized to organize the tour, must bring
personal identity cards, household registration book or other household
identification information and apply to the public security organ where
the household has been registered, fill in the application, examination and
approval form of Chinese citizens going abroad(exit), present the remarks
of the work unit where the tourist is employed and in the meantime present
the issued by the department of
tourism administration for inspection as well as the invoice for the total
amount required for the tour issued by the travel agency authorized to
organize the tour.

    Article 8   The public security organ should inspect and examine the
and the invoice of expenses
handed in by the tourist and upon confirmation of the lawful qualifications
of the travel agency authorized to organize the tour and the tourist, shall
process the formalities for going abroad on tour in accordance with relevant
laws and regulations, make the decision of approval or non-approval within
the prescribed time period and inform the tourist of the same. The tourist
approved for exit shall be issued a passport by the department of exit and
entry control of a public security organ along with the exit registration
card.

    Article 9   on tours at own expenses>(hereinafter referred to as the )
unifiedly printed by the State Tourism Administration shall be serially
numbered and issued to travel agencies authorized to organize tours abroad.
The travel agencies authorized to organize tours abroad should fill in the
namelist factual information and the seal of examination and inspection
shall be affixed thereon upon qualification of examination and inspection by
the State Tourism Administration or the department of tourism administration
at the provincial level. The shall be in triplicate. Upon exit,
the first and second copies shall be handed over to the border control post
for verification and inspection, clearance shall not be granted to those not
on the or those actually leaving the country do not accord with
the state of registration on the . The border control post
shall write down the actual number of tourists on the , affix the
“inspected” stamp and keep the first copy; the second copy shall be
temporarily kept by the leader of the tour group and handed over to the
border control post on entry for verification, inspection and collection
for the file. The third copy shall be handed over to the department of
tourism administration responsible for examination and verification on the
return of the tour group to the country for the record.

    Article 10   Tourist activities of the tour group shall be conducted
under the leadership of the group leader. Tour groups must depart from and
enter China from open ports of the country. In case of special provisions
of public security and border control organs, the matters shall be handled
according to the provisions of public security and border control organs.
Tour groups must depart from and enter the country in ensemble, those groups
which have to be divided into subgroups while abroad, the travel agencies
authorized to organize tour groups shall submit reports to the public
security and border control organs at the provincial level in advance for
approval. Those groups divided into subgroups while abroad without approval,
the border control post shall mete out penalties to the travel agency
authorized to organize the tour group and the responsible persons concerned
upon entry in accordance with the relevant provisions of the the People’s Republic of China on Exit and Entry Border Control Inspection>.

    Article 11   The travel agencies authorized to organize tour groups
bear the responsibility to ask travel agencies abroad responsible for
reception to arrange tourist activities in accordance with the plan of
activities of the tour groups and not to arrange the tour groups to take
part in pornographic, gambling, drug-related and dangerous activities.
When encountering extraordinary difficulties and security problems abroad,
leaders of tour groups should report timely to Chinese embassies, consulates
and tourist offices in foreign countries, and the travel agencies authorized
to organize tour groups should report timely to the departments of tourism
administration and public security organs in the country.

    Article 12   Tourists are strictly forbidden to remain abroad and not to
return to the country. For those who remain abroad and do not return to the
country, the travel agencies authorized to organize the tour groups should
report timely to public security organs and the departments of tourism
administration. The travel agencies authorized to organize tour groups
should provide assistance and be responsible for the advanced payment of
expenses for matters relating to inquiry and repatriation and expenses
incurred shall be paid back by those repatriated later.

    Article 13   Luggage and articles carried by tourists must accord with
the relevant provisions of the State. The travel agencies authorized to
organize tour groups bear the responsibility to assist the departments
concerned in carrying out successfully such administrative work as the
inspection and clearance of luggage of tour groups.

    Article 14   To those who practise fraud and acquire exit certificate
by deception, covertly leave the country or cross the border or use the same
for the organization and transportation of others in covertly leaving the
country or crossing the border in the name of going abroad on tour at own
expenses, penalties shall be meted out in accordance with the and Entry Control of Citizens of the People’s Republic of China> and Rules
for its implementation, and the relevant provisions of the Provisions of the Standing Committee of the National People’s Congress
Concerning Severe Penalties against Crimes of Organizing and Transporting
Other People in Covertly Leaving the Country or Crossing the Border>.

    Article 15   The State Tourism Administration and the Ministry of
Public Security shall be responsible for the interpretation of these  
Measures.

    Article 16   These Measures shall come into force as of the date of
promulgation.






CIRCULAR ON ADJUSTING THE POLICY FOR BUSINESS TAX ON FEES(FUNDS) COLLECTED FOR ADMINISTRATIVE PURPOSES

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-05-22 Effective Date  1997-01-01  


Circular on Adjusting the Policy for Business Tax on Fees(funds) Collected for Administrative Purposes


APPENDIX:FIRST LIST OF ITEMS FOR THE COLLECTION OF FEES(FUNDS)

(Approved by the State Council and promulgated by the Ministry of
Finance and the State Administration of Taxation on May 22, 1997)

    For the purpose of implementing the Decision of the State Council
on Strengthening the Administration of Extra-budgetary funds(Guo Fa No.
[1996]29), the policy for business tax on fees and funds collected for
administrative purposes has been formulated upon approval of the State
Council for compliance in implementation.

    I.Business tax or value-added tax shall be levied and collected
in accordance with provisions from charges not included in the calculated
prices collected by the taxpayer from the other party along with the price
including service charge, funds, fund-raising fees, collection of payment,
disbursement and fee collection not included in the calculated prices for
various other purposes. With respect to various funds integrated into
budget management in accordance with the provisions of the Guo Fa No.
[1996]29 Document, whenever it is formed through extra price not included
in the calculated prices, it shall be integrated into the budget upon
payment of the circulating tax.

    II.Excluding the provisions of the above Article, no business tax shall
be levied and collected from fees collected for administrative purposes and
funds integrated into budget management or designated financial account
management approved by the department of finance of the Central Government
and the departments of finance of the provinces; business tax shall all be
levied and collected in accordance with the provisions for the fees and funds
not integrated into budget management or designated financial account
management.

    III.To facilitate the administration of levying and collection, lists of items for the collection of fees(funds)
exempt from business tax shall be
issued in batches by the Ministry of Finance and the State Administration
of Taxation with respect to fees collected for administrative purposes and
funds approved by the Central Government to be integrated into budget
management or designated financial account management; with respect to
fees collected for administrative purposes approved at the provincial
level to be integrated into budget management or designated financial
account management, lists of items for the collection of fees exempt
from business tax shall be issued in batches by the provincial
departments(bureaus) of finance and local tax bureaus and submitted
to the Ministry of Finance and the State Administration of Taxation
for the record. Business tax shall be levied and collected according to
regulations with respect to the items not included in the lists.

    IV.Items of fee collection involving tax levying of state organs,
institutions and social groups shall be integrated into tax administration,
entered into tax registration and tax declarations made and tax invoices
used for items of fee collection. For items of fee collection and funds
exempt from tax, vouchers for fee collection and funds uniformly printed
by the departments of finance at or above the provincial level shall be
used.

    V.This Circular shall enter into force as of January 1, 1997. Provisions
of Article 13 of the Rules for the Imlementation of the Provisional
Regulations on Business Tax of the People’s Republic of China shall be
simultaneously superseded.

APPENDIX:FIRST LIST OF ITEMS FOR THE COLLECTION OF FEES(FUNDS)
EXEMPT FROM BUSINESS TAX


Serial number Item

      1 Special-purpose funds for the treatment of sources of    pollution

      2 Surcharge for vehicle purchase

      3 Vessel ton tax

      4                
Seaworthiness(airworthiness?) funds

      5 Cotton price regulatory fund

      6 New vegetable farmland development and construction
   fund

      7 Yellow Sea and Bohai Sea prawn resources protection
   and breeding fund

      8 Reservoir area maintenance fund

      9 Reclamation fund

     10 Special-purpose state fund for the development of the
   film industry

     11 Employment security fund for the disabled

     12 Social welfare fund

     13 Tourism development fund

     14 Agriculture development fund

     15 Agricultural(animal husbandry, fishery) tax surcharge

     16 Urban utilities surcharge

     17                 Foodgrains
risk fund

     18 Non-staple foods risk fund

     19 Workers and staff members pension insurance fund

     20 Workers and staff members unemployment insurance fund

     21 Workers and staff members medical insurance fund

     22 Port construction expense

     23                 Road maintenance
expense

     24 Highway construction fund

     25 Civil airport management and construction expense








CIRCULAR OF THE STATE COUNCIL CONCERNING MEASURES ON IMPLEMENTATION OF TAX EXEMPTION, CREDIT, REFUND OF GOODS EXPORTED BY PRODUCTION ENTERPRISES THEMSELVES OR AUTHORIZED AGENCIES

The State Council

Circular of the State Council Concerning Measures on Implementation of Tax Exemption, Credit, Refund of Goods Exported by Production
Enterprises Themselves or Authorized Agencies

GuoFa [1997] No.8

February 25, 1997

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

To further invigorate large and medium-sized State-owned enterprises, expand foreign trade and export and impel the agency system,
the State Council has decided to implement measures for tax “exemption, credit, and refund” for goods exported by production enterprises,
which have the power to engage in import and export, themselves or through authorized foreign trade enterprises as their agents.
The relevant issues are hereby notified as follows:

I.

Implementation scope for tax “exemption, credit, and refund”. For goods exported by various production enterprises, which have the
operation power to engage in import and export, themselves or through authorized foreign trade enterprises as their agents, unless
otherwise provided, the measures for tax “exemption, credit, and refund” shall be implemented without exception.

The implementation of measures for tax exemption for export goods by foreign investment enterprises approved for establishment before
December 31, 1993 shall continue through December 31, 1998. The measures for tax “exemption, credit, and refund” shall also be implemented
after that term expires.

II.

Tax “exemption” in the implementation of measures for tax “exemption, credit, and refund” means that the goods exported by production
enterprises themselves or through authorized foreign trade enterprises as their agents shall be exempt from value-added tax at the
links of production or sale within these production enterprises; tax “credit” means that with respect to goods exported by production
enterprises themselves or through authorized foreign trade enterprises as their agents, to credit the tax paid on the raw materials,
parts and components consumed which shall be exempted or returned against the tax payable on goods for domestic sale ; tax “refund”
means that where the goods exported by production enterprises themselves or through authorized foreign trade enterprises as their
agents account for more than 50% of the total current-period sales of goods of these enterprises, when the creditable tax has not
been completely credited within one quarter because it is greater than the tax payable, the portion of tax not completely credited
shall be refunded upon approval by the tax authority in charge of export tax refund.

III.

In carrying out the measures for tax “exemption, credit, and refund”, the refund rate stipulated in the Circular of the State Council
Concerning Lowering the Tax Refund Rate for Export Goods (GuoFa [1995] No.29) shall be implemented, and the amount of tax “exemption,
credit, and refund” shall be calculated on the basis of E O. B. price of export goods.

IV.

These Measures shall enter into force as of January 1, 1997. Specific measures for implementation shall be formulated by the Ministry
of Finance and the State Administration of Taxation.

The implementation of measures for tax “exemption, credit, and refund” for goods exported by production enterprises, which have the
operation right to engage in import and export, themselves or through authorized foreign trade enterprises as their agents is an
important reform of the measures for administration of export tax refunds. People’s governments at various levels shall proceed by
taking the situation as a whole, strengthen leadership and actively support this reform. Various relevant departments shall take
care to cooperate closely, promptly solve the problems emerging in the implementation, and in the meantime summarize the experiences
conscientiously so as to create conditions for gradually enlarging the implementation scope of the measures for tax “exemption, credit,
and refund” and further improving the mechanism of export tax refund.



 
The State Council
1997-02-25

 







ANIMAL EPIDEMIC PREVENTION LAW

Category  AGRICULTURE, FORESTRY AND METEOROLOGY Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1997-07-03 Effective Date  1998-01-01  


Animal Epidemic Prevention Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Prevention of Animal Epidemics
Chapter III  Control and Extermination of Animal Epidemics
Chapter IV  Quarantine of Animals and Animal Products
Chapter V  Supervision over Animal Epidemic Prevention
Chapter VI  Legal Liability
Chapter VII  Supplementary Provisions

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

National People’s Congress on July 3, 1997, promulgated by Order No. 87 of the
President of the People’s Republic of China on July 3, 1997, and effective as
of January 1, 1998)
Contents

    Chapter I  General Provisions

    Chapter II  Prevention of Animal Epidemics

    Chapter III  Control and Extermination of Animal Epidemics

    Chapter IV  Quarantine of Animals and Animal Products

    Chapter V  Supervision over Animal Epidemic Prevention

    Chapter VI  Legal Liability

    Chapter VII  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted for the purpose of intensifying the
administration of animal epidemic prevention, preventing, bringing under
control and exterminating animal epidemics, promoting the development of
livestock, fish breeding and poultry raising and protecting human health.

    Article 2  This Law is applicable to animal epidemic prevention activities
within the territory of the People’s Republic of China.

    For quarantine of entry and exit animals or animal products, the Law of
the People’s Republic of China on the Entry and Exit Animal and Plant
Quarantine shall apply.

    Article 3  “Animal” referred to in this Law means livestock, poultry and
other animals raised by man or caught legally.

    “Animal product” referred to in this Law means animals’ raw hides,
hairs, semen, embryos and breeder eggs as well as non-processed products such
as trunks, grease, viscera, blood, down, bones, horns, heads and hoofs.

    “Animal epidemic” referred to in this Law means animal infectious
diseases and parasitic diseases.

    “Animal epidemic prevention” referred to in this Law includes prevention,
control and extermination of animal epidemics as well as quarantine of animals
and animal products.

    Article 4  Quarantine inspection and supervision shall be conducted
pursuant to this Law over trunks, heads and viscera of slaughtered animals.
Those up to standards for foods after quarantine inspection shall be subjected
to hygienic inspection and supervision in accordance with the provisions of
the Food Hygiene Law of the People’s Republic of China.

    Article 5  The state institutes a policy of focusing on prevention of
animal epidemics.

    Article 6  The animal husbandry and veterinary administrative department
under the State Council shall be in charge of animal epidemic prevention
throughout the country.

    The animal husbandry and veterinary administrative departments under local
people’s governments at or above the county level shall be in charge of animal
epidemic prevention within their respective administrative areas.

    The supervising agencies for animal epidemic prevention under people’s
governments at or above the county level shall execute animal epidemic
prevention and supervision on animal epidemic prevention.

    The supervising agencies for animal epidemic prevention in the armed
forces shall be responsible for epidemic prevention for active-duty animals
in the armed forces and animals raised by the armed forces for their own use.

    Article 7  People’s governments at all levels shall strengthen the
leadership over animal epidemic prevention.

    Article 8  The state encourages and supports scientific research on animal
epidemic prevention, spreads advanced achievements of scientific research,
popularizes scientific knowledge of animal epidemic prevention, and improves
the level of animal epidemic prevention.

    Article 9  Any unit or individual that has made achievements or
contributions in animal epidemic prevention or scientific research on animal
epidemic prevention shall be rewarded by the people’s government or the animal
husbandry and veterinary administrative department.
Chapter II  Prevention of Animal Epidemics

    Article 10  In the light of seriousness of damage caused by animal
epidemics to the breeding production and human health, animal epidemics under
the control by this Law are composed of three classes:

    (1) Epidemics of Class I refer to those which cause serious damage to
humans and animals and need to take urgent, rigorous measures to compulsorily
prevent, bring under control or exterminate them.

    (2) Epidemics of Class II refer to those which can cause great economic
losses and need to take strict measures to bring under control or exterminate
them and avoid their spread.

    (3) Epidemics of Class III refer to those which are so common and so
frequently occur that great economic losses may be caused and control and
purifying measures are required.

    A detailed catalogue of epidemics of the three classes mentioned in the
preceding paragraph shall be fixed and published by the animal husbandry and
veterinary administrative department under the State Council.

    Article 11  The animal husbandry and veterinary administrative department
under the State Council shall formulate the national plan for animal epidemic
prevention.

    The animal husbandry and veterinary administrative department under the
State Council shall, in the light of animal epidemic situation abroad and at
home and in accordance with the requirements for protection of the breeding
production and human health, formulate and publish in time measures for animal
epidemic prevention.

    The state practises a system of immunization planning for execution of
compulsory immunization against animal epidemics which cause serious damage to
the breeding production and human health. A catalogue of animal epidemics
subjected to compulsory immunization shall be formulated and published by the
animal husbandry and veterinary administrative department under the State
Council.

    For other animal epidemics than those subjected to compulsory
immunization, the animal husbandry and veterinary administrative departments
under local people’s governments at or above the county level shall formulate
prevention plans and report them to the people’s governments at the same level
for approval and implementation.

    Article 12  The state should take measures to prevent and exterminate
animal epidemics which cause serious damage to the breeding production and
human health.

    Medicine, biological products or other relevant materials needed in
prevention and extermination of animal epidemics shall be reserved in a proper
quantity and shall be included in the plan for national economy and social
development.

    Article 13  The supervising agencies for animal epidemic prevention shall
strengthen animal epidemic prevention by conducting popularization and
education, technical advice, technical training and consultancy services and
shall organize the implementation of plans for immunization against animal
epidemics.

    Animal epidemic prevention organs in townships, nationality townships and
towns shall, under the guidance of the supervising agencies for animal
epidemic prevention, organize the prevention of animal epidemics.

    Article 14  Units and individuals that engage in raising or marketing of
animals, or production or marketing of animal products shall, pursuant to
this Law and the relevant state provisions, complete planned immunization
against and prevention of animal epidemics, and shall accept the monitoring
and supervision from the supervising agencies for animal epidemic prevention.

    Article 15  Any animal farm should exterminate animal epidemics in time.
Stud stock and breeding poultry shall be kept healthy up to the standards set
by the state.

    Article 16  Means of transport, padding materials and packing materials
for animals or animal products shall meet the requirements for animal epidemic
prevention set by the animal husbandry and veterinary administrative
department under the State Council.

    Animals infected with epidemic diseases and their excrement, products made
from animals infected with epidemic diseases, and carcasses of animals which
died of illness or died due to an unidentified cause must be disposed of
according to the relevant provisions of the animal husbandry and veterinary
administrative department under the State Council and shall not be dealt with
at will.

    Article 17  The storage, use and transportation of animal-borne pathogenic
microorganisms shall conform to the management systems and operational rules
set by the state.

    The transportation of animal epidemic materials for special need in
scientific research, teaching and epidemic prevention shall conform to the
relevant state provisions.

    Any unit engaging in scientific research on animal epidemics shall,
according to the relevant state provisions, conduct strict management of
experimental animals in order to prevent the spread of animal epidemics.

    Article 18  Marketing of any animal or animal product in the following
categories shall be prohibited:

    (1) those related to an animal epidemic disease occurring in a
cordoned-off epidemic area;

    (2) those susceptible to an epidemic disease in an epidemic area;

    (3) those subjected to quarantine inspection according to law but failing
to undergo or pass quarantine inspection;

    (4) those infected with an epidemic disease;

    (5) those which died of illness or died due to an unidentified cause; or

    (6) those not listed above but failing to conform to the state provisions
regarding animal epidemic prevention.
Chapter III  Control and Extermination of Animal Epidemics

    Article 19  The animal husbandry and veterinary administrative department
under the State Council shall exercise unified control over and publish animal
epidemic information nationwide, or may, when necessary, authorize the animal
husbandry and veterinary administrative departments under people’s governments
of provinces, autonomous regions and municipalities directly under the Central
Government to publish animal epidemic information within their own
administrative regions.

    Article 20  Any unit or individual that finds an animal(s) having an
epidemic disease or suspect of having an epidemic disease shall in time report
to the local supervising agency for animal epidemic prevention. The latter
shall promptly take measures and report the case to the higher authority
according to the relevant state provisions.

    No unit or individual may conceal, falsely report or hinder another person
from reporting animal epidemic information.

    Article 21  In the case of an animal epidemic of Class I, the animal
husbandry and veterinary administrative department under the local people’s
government at or above the county level shall dispatch its personnel to the
scene forthwith to delimit the epidemic point, the epidemic area and the
threatened area, collect epidemic materials, investigate into the epidemic
source, report in time to the people’s government at the same level for a
decision of cordoning off the epidemic area, and report the epidemic situation
and the related information level by level to the animal husbandry and
veterinary administrative department under the State Council.

    The local people’s government at or above the county level shall organize
departments and units concerned without delay to take compulsory measures for
control and extermination of the animal epidemic such as isolation, massacre,
destruction, disinfection and emergency immunization vaccination to
exterminate the epidemic disease promptly, and shall inform the neighbouring
areas of the case.

    During the sanitary cordon, animals or animal products having the epidemic
disease or suspect of having the epidemic disease are prohibited from moving
out of the epidemic area, and animals coming from outside the epidemic area
shall be prohibited from entering the epidemic area. As required for the
extermination of the animal epidemic, persons, means of transport and relevant
articles which leave or enter the cordoned-off area shall be disinfected and
imposed upon other restrictions.

    Where the epidemic area involves two or more administrative regions, the
decision on the cordon of the epidemic area shall be made by the common
people’s government at the next higher level than the concerned administrative
regions, or jointly by the people’s governments at the next higher level than
the concerned administrative regions.

    Article 22  In the case of an animal epidemic of Class II, the animal
husbandry and veterinary administrative department under the local people’s
government at or above the county level shall delimit the epidemic point, the
epidemic area and the threatened area.

    The local people’s government at or above the county level shall, when
necessary, organize departments and units concerned to take control and
extermination measures such as isolation, massacre, destruction, disinfection,
emergency immunization vaccination and imposition of restrictions upon
entering and leaving of the epidemic area by animals, animal products and
relevant articles that are susceptible to the epidemic disease.

    Article 23  The disestablishment of the epidemic point, the epidemic area
and the threatened area and the lifting of the cordon of the epidemic area
shall be announced by the organ that made the original decision.

    Article 24  In the case of an animal epidemic of Class III, the people’s
government at the county or township level shall organize the prevention and
purification of the epidemic according to the plans for animal epidemic
prevention and the provisions of the animal husbandry and veterinary
administrative department under the State Council.

    Article 25  The provisions of Article 21 in this Law shall apply if an
animal epidemic of Class II or Class III spreads violently.

    Article 26  For the purpose of control or extermination of major animal
epidemic situations, the supervising agencies for animal epidemic prevention
may dispatch their personnel to the inspecting stations having been set up
according to law by the locality to undertake supervision and inspection. When
necessary, provisional supervising and inspecting stations for animal epidemic
prevention may be set up subject to the approval of the people’s government of
the province, autonomous region and municipality directly under the Central
Government in order to perform supervision and inspection.

    Article 27  In the case of an epidemic disease contracted commonly by both
human beings and livestock, the animal husbandry and veterinary administrative
department, the public health administrative department and other units
concerned shall exchange information on the epidemic situation and shall take
control and extermination measures in time.

    Article 28  Any unit or individual within an epidemic area shall observe
the stipulations of the people’s government at or above the county level and
its animal husbandry and veterinary administrative department for the control
and extermination of the animal epidemic.

    Article 29  In the case of an animal epidemic, transportation departments
such as civil aviation, railways, highways and waterways shall give priority
to the transportation of personnel and related materials for control and
extermination of the epidemic situation, and post and telecommunications
departments shall deliver and transmit reports on the epidemic situation in
time.
Chapter IV  Quarantine of Animals and Animal Products

    Article 30  Supervising agencies for animal epidemic prevention shall, in
accordance with the national standards, the trade standards and quarantine
measures set by the animal husbandry and veterinary administrative department
under the State Council, and in the light of the objects to be quarantined,
carry out the quarantine of animals and animal products.

    Article 31  Supervising agencies for animal epidemic prevention shall have
quarantine officers responsible for the quarantine of animals and animal
products. Quarantine officers shall possess the necessary professional skills.
The detailed measures for qualifications and issuance of qualification
certificates shall be formulated by the animal husbandry and veterinary
administrative department under the State Council.

    The animal husbandry and veterinary administrative departments at or above
the county level shall step up the training, evaluation and administration of
quarantine officers. No quarantine officer may be permitted to take up the
post for quarantine unless he has obtained the corresponding qualification
certificate.

    Quarantine officers shall observe quarantine rules in carrying out
quarantine and bear liability for the quarantine results.

    Article 32  The state exercises slaughter at designated points and
centralized quarantine of livestock like pigs and other animals.

    The people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government shall set categories of
livestock and scopes of regions within their respective administrative regions
to practise slaughter at designated points and centralized quarantine.
Specific slaughterhouses (or points) shall be determined by the people’s
governments in cities (including cities without districts) and counties after
studies by the departments concerned organized by them.

    Supervising agencies for animal epidemic prevention shall carry out
quarantine of animals slaughtered in slaughterhouses (or points) and affix to
slaughtered animals their uniform stamps for having been inspected. Slaughter
quarantine in slaughterhouses and joint meat processing factories determined
subject to consultation between the animal husbandry and veterinary
administrative department and the commodity circulation department under the
State Council shall be handled pursuant to the relevant provisions of the
State Council and shall be under supervision according to law.

    Article 33  For quarantine of livestock like pigs and other animals
slaughtered by farmers themselves for their own use, the people’s governments
of provinces, autonomous regions and municipalities directly under the Central
Government shall formulate control measures.

    Article 34  Supervising agencies for animal epidemic prevention shall
collect fees for their legal quarantine inspections according to the
provisions of the financial and price control departments under the State
Council and shall not collect other additional fees or repeat charging for the
same item of quarantine.

    Article 35  Supervising agencies for animal epidemic prevention shall not
engage in business activities.

    Article 36  Those who intend to introduce breeding animals and their
semen, embryos and breeder eggs from another place in the country shall first
apply to the supervising agency for animal epidemic prevention of the locality
for examination and approval of quarantine and shall be subject to quarantine
inspection.

    Article 37  Wild animals having been caught by man which are likely to
spread animal epidemics shall not be sold and transported before passing
quarantine inspection by the supervising agency for animal epidemic prevention
in the place where the wild animals are caught or where the wild animals are
to be received.

    Article 38  If any animal or animal product has passed quarantine
inspection, the supervising agency for animal epidemic prevention shall issue
a quarantine certificate and, at the same time for any animal product, affix
thereto an inspection mark used by the supervising agency for animal epidemic
prevention or seal it with the inspection mark.

    If any animal or animal product has not passed quarantine inspection, the
owner shall conduct disinfection for epidemic prevention or take other
measures for innocent treatment. If innocent treatment cannot be carried out,
the animal or animal product must be destroyed.

    Article 39  Animals can be sold, transported, put on display, shows or
contests on the strength of the quarantine certificate. Animal products can be
sold or transported on the strength of the quarantine certificate and the
inspection mark.

    Article 40  The quarantine certificate shall not be transferred, altered
or forged.

    The format and control measures for the quarantine certificate shall be
formulated by the animal husbandry and veterinary administrative department
under the State Council.
Chapter V  Supervision over Animal Epidemic Prevention

    Article 41  Supervising agencies for animal epidemic prevention shall
conduct supervision on the work of animal epidemic prevention according to
law.

    In performing duties of monitoring and supervision, supervising agencies
for animal epidemic prevention may collect samples of animals or animal
products, seize them for inspection or make sample inspections, conduct
inspections retroactively or re-inspect animals or animal products with no
quarantine certificates, and may isolate, seal up or dispose of animals having
epidemic diseases or suspected of having epidemic diseases or animal products
contaminated by epidemic diseases.

    Article 42  Any consignor of animals or animal products to be transported
by railways, highways, waterways or by air must provide the quarantine
certificate in consigning for shipment. Any consignee must undertake the
shipment on the strength of the quarantine certificate.

    Supervising agencies for animal epidemic prevention shall have the right
to supervise and inspect the transportation of animals and animal products
according to law.

    Article 43  Functionaries of animal epidemic prevention supervision shall
produce their certificates in performing duties of supervision and inspection.
Any unit or individual concerned shall lend support and cooperation to them.

    Supervising agencies for animal epidemic prevention and their staff shall
not collect fees for supervision and inspection of animal epidemic prevention.

    Article 44  Selecting sites and designing for works of animal farms,
warehouses, slaughterhouses, joint meat processing factories, other designated
slaughterhouses or points and refrigeration sites for animal products shall
conform to the requirements of animal epidemic prevention stipulated by the
animal husbandry and veterinary administrative department under the State
Council.

    Article 45  Raising and marketing of animals or production and marketing
of animal products by animal farms, slaughterhouses, joint meat processing
factories and other designated slaughterhouses (or points) shall conform to
the requirements for animal epidemic prevention stipulated by the animal
husbandry and veterinary administrative department under the State Council,
and shall be subject to the supervision and inspection of supervising agencies
for animal epidemic prevention.

    Diagnosis and treatment of animals shall be engaged in by qualified
professional technicians who possess the permit for diagnosis and treatment of
animals issued by the animal husbandry and veterinary administrative
departments.

    Persons suffering from epidemic diseases contracted commonly by both human
beings and livestock shall not directly engage in diagnosis and treatment of
animals, raising and marketing of animals or production and marketing of
animal products.
Chapter VI  Legal Liability

    Article 46  Any violator of the provisions of this Law who commits any of
the following acts shall be given a warning by the supervising agency for
animal epidemic prevention. In case of refusal by the violator to make
corrections, the supervising agency for animal epidemic prevention shall deal
with the case according to law on the part of the violator who shall pay the
expense therefor.

    (1) failing to vaccinate or disinfect for immunization timely animals he
raises or markets as required by the compulsory immunization plan against
animal epidemics and the relevant state provisions;

    (2) failing to clean and disinfect means of transport, padding materials
or packing materials for animals and animal products according to the relevant
state provisions; or

    (3) failing to dispose of animals infected with epidemic diseases and
their excrement, products made from animals infected with epidemic diseases,
and carcasses of animals which died of illness or died due to an unidentified
cause according to the relevant state provisions.

    Article 47  Any violator of the provisions of Article 17 of this Law who
stores, uses or transports animal-borne pathogenic microorganisms, or
transports animal epidemic materials shall be given a warning and may be
concurrently fined not more than RMB 2,000 yuan by the supervising agency for
animal epidemic prevention.

    Article 48  Any violator of the provisions of this Law who markets any of
the following animals or animal products shall be ordered by the supervising
agency for animal epidemic prevention to stop the business operations and,
with the illegal gains and animals and animal products having not yet been
sold confiscated, to take effective measures to withdraw animals and animal
products having been sold. If the circumstances are serious, the offender may
be concurrently fined less than five times of the illegal gains.

    (1) those related to an animal epidemic occurring in a cordoned-off
epidemic area;

    (2) those susceptible to an epidemic in an epidemic area;

    (3) those subjected to quarantine inspection according to law but failing
to pass quarantine inspection;

    (4) those infected with an epidemic;

    (5) those which died of illness or died due to an unidentified cause; or

    (6) those not listed above but failing to conform to the state provisions
regarding animal epidemic prevention.

    Article 49  Any violator of the provisions of this Law who markets animals
or animal products subjected to quarantine inspection according to law but
without quarantine certificates shall be ordered, with the illegal gains
confiscated, to stop the business operations by the supervising agency for
animal epidemic prevention. Animals or animal products having not yet been
sold shall undergo quarantine inspection retrospectively according to law and
be dealt with according to the provisions of Article 38 of this Law.

    Article 50

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE STATE TECHNOLOGY SUPERVISION BUREAU ON ISSUES CONCERNING THE ACQUISITION OF THE STATE ORGANIZATION CODE AND THE IMPORT AND EXPORT COMPANY CODE BY THE ENTERPRISES WITH FOREIGN INVESTMENT AND ENTERPRISES WITH INVESTMENT FROM TAIWAN, HONG KONG, MACAO AND OVERSEAS CHINESE INVESTORS

The Ministry of Foreign Trade and Economic Cooperation, the State Bureau of Technology Supervision

Circular of the Ministry of Foreign Trade and Economic Cooperation and the State Technology Supervision Bureau on Issues concerning
the Acquisition of the State Organization Code and the Import and Export Company Code by the enterprises with Foreign Investment
and Enterprises with Investment from Taiwan, Hong Kong, Macao and Overseas Chinese investors

DuiWaiJingMaoZiFa [1997] No.813

December 17, 1997

Foreign Trade and Economic Commissions (Departments, Bureaus), Local Bureaus of Technology Supervision in all provinces, autonomous
regions, municipalities directly under the Central Government, municipalities separately listed on the State plan, Harbin, Changchun,
Shenyang, Wuhan, Nanjing, Guangzhou, Chengdu and Xian:

In order to quicken up the execution of the Golden Gate project, improve the working efficiency and service quality, and ensure the
enterprises with foreign investment and the enterprises with investment from Taiwan, Hong Kong, Macao and overseas Chinese investors
(hereinafter referred to as the Enterprises) to acquire the state organization code and the code for import and export company, some
relevant issues are hereby circularized as follows:

I.

From January 1,1998, the newly established enterprises shall go to the technology supervision authority to obtain the state organization
code upon presentation of one original and one duplicated copy of the establishment approval documents issued by the competent examining
and approving departments (i.e. approval of the contracts and articles of association). All examining and approving departments shall
make copies of the establishment approval documents for the applicants.

The enterprises approved to be established before December 31, 1997 shall obtain the state organization code from the technology supervision
authority upon presentation of one original and one copy of the transcript of the enterprise with foreign investment establishment
approval certificates or the establishment approval certificates for enterprises with investment from Taiwan, Hong Kong, Macao and
overseas Chinese investors (hereinafter referred to as the approval certificates).

II.

The code granting organs of the technology supervision authority grants the state organization code in the form of a notification
to the applicants that are to set up enterprises and established enterprises against their establishment approval documents or certificates.
The enterprises need not pay any fees for the Notification on Granting the State Organization Code.

III.

From January 1, 1998, as an experiment, the enterprises, to which the Ministry of Foreign Trade and Economic Cooperation directly
issues the approval certificates, are awarded with the state organization code by the Ministry of Foreign Trade and Economic Cooperation.
The competent authority in charge of code control in the State Technology Supervision Bureau supplies the range of codes and shall
be periodically informed by the Ministry of Foreign Trade and Economic Cooperation of the code granting related information.

IV.

From January 1, 1998, the import and export company code must be put on the approval certificate (including the newly issued approval
certificate and the reissued certificate). After getting the state organization code, the enterprises shall acquire the import and
export company code in line with the procedures provided in the Detailed Rules for the Enterprises with Foreign Investment to Implement
the Methods of the People’s Republic of China on the Administration of Import and Export Company Code.

V.

The technology supervision departments take the responsibility of supervising the code quality, preventing the repetition of codes
and checking out errors in the code granting process so as to ensure the code uniqueness and accuracy after the enterprises get their
business license.



 
The Ministry of Foreign Trade and Economic Cooperation, the State Bureau of Technology Supervision
1997-12-17

 







REGULATIONS GOVERNING EXPORT CONTROL OF MILITARY GOODS

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-10-22 Effective Date  1998-01-01  


Regulations of the People’s Republic of China Governing Export Control of Military Goods

Chapter I  General Provisions
Chapter II  Military Goods Trading Companies
Chapter III  Military Goods Export Control
Chapter IV  Military Goods Export Order
Chapter V  Legal Liability
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 234 of the State Council of the People’s

Republic of China and the Central Military Commission of the People’s Republic
of China on October 22, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated with a view to enhancing
unified export control of military goods and maintaining normal order
in the export of military goods.

    Article 2  Export of military goods referred to in these Regulations
means export for trade purposes of the equipment, special-purpose production
equipment and other materiel, technologies and related services to be used
for military purposes.

    Article 3  The State Control Commission for Military Goods Trade of the
People’s Republic of China (hereinafter referred to as the State Control
Commission for Military Goods Trade) shall, under the leadership of the
State Council and the Central Military Commission, take charge of the work
of military goods export nationwide.

    The State Military Goods Trade Bureau of the People’s Republic of China
(hereinafter referred to as the State Military Goods Trade Bureau), the
executive agency of the State Control Commission for Military Goods Trade,
shall exercise supervision and control over military goods export nationwide.

    Article 4  The State practises the uniform military goods export control
system, prohibits any act of military goods export to the detriment of
national interests and security and ensures normal order in military goods
export in accordance with law.

    Article 5  Military goods export shall abide by the following principles:

    (1) to be instrumental to the just self-defense capabilities of the
acceptor nation;

    (2) to be not detrimental to peace, security and stability in the region
concerned and the world; and

    (3) non-interference in the internal affairs of the acceptor nation.

    Article 6  In the case of different provisions in international treaties
the People’s Republic of China has concluded and acceded to with these
Regulations, the provisions of the international treaties shall apply;
however, the articles about which the People’s Republic of China has stated
its reservations are exceptions.
Chapter II  Military Goods Trading Companies

    Article 7  The military goods trading companies referred to in these
Regulations mean corporate enterprises engaging in military goods export
business operations with acquisition of the management right of military
goods export in accordance with law and within the verified business scope.

    Article 8  Military goods export management right shall be subject to
the examination and approval of the State Control Commission for Military
Goods Trade. Specific measures shall be formulated by the State Control
Commission for Military Goods Trade.

    Article 9  Military goods trading companies shall practise autonomous
management and be responsible for their profits and losses.

    Article 10  Military goods trading companies shall abide by the contract,
guarantee commodity quality and improve after-sales service.

    Article 11  Military goods trading companies shall, pursuant to the
provisions of the State Control Commission for Military Goods Trade,
truthfully present the documents and material relating to their business
operations in military goods export to the departments concerned. The
departments concerned shall keep the business secrets for the military
goods trading companies and safeguard the legitimate rights and interests
of the military goods trading companies.

    Article 12  Military goods trading companies may entrust approved
shipping agencies for military goods export in the handling of transportation
and related business for military goods export for them. Specific measures
shall be formulated by the State Control Commission for Military Goods Trade.
Chapter III  Military Goods Export Control

    Article 13  The State practises the licence system for military goods
export.

    Applications shall be filed for the examination and approval of the
items and contracts of military goods export pursuant to the provisions of
these Regulations. Military goods export shall be effected on the strength
of a military goods export licence.

    Article 14  Military goods export items shall be subject to the
examination and approval of the State Military Goods Trade Bureau or the
State Military Goods Trade Bureau in conjunction with the departments
concerned under the State Council and the Central Military Commission.

    Article 15  A military goods trading company may, upon approval of the
military goods export items, conclude a military goods export contract with
a foreign party. An application shall be filed with the State Military Goods
Trade Bureau for examination and approval upon conclusion of the military
goods export contract; the State Military Goods Trade Bureau shall, within
15 days from the date of receipt of the application, make a decision on
the approval or non-approval thereof. The military goods export contract
shall become established only upon approval.

    A military goods trading company shall, when filing an application for
the approval of the military goods export contract, enclose effective
testimonial documents of the acceptor nation.

    Article 16  Major military goods export items and contracts shall be
subject to the examination of the State Control Commission for Military
Goods Trade and submitted to the State Council and the Central Military
Commission for approval.

    Article 17  A military goods trading company shall, prior to military
goods export, apply to the State Military Goods Trade Bureau for a military
goods export licence on the strength of the approval document of the military
goods export contract; the State Military Goods Trade Bureau shall, within
five days from the receipt of the application, issue the military goods
export licence to the applicant found to conform to the provisions of the
military goods export contract.

    The Customs shall accept the declaration on the strength of the military
goods export licence and handle inspection and clearance pursuant to relevant
state provisions.

    Article 18  Measures for the examination and approval of items and
contracts of military goods export and measures for the issuance of military
goods export licences shall be formulated by the State Control Commission for
Military Goods Trade.

    Article 19  The State Military Goods Trade Bureau shall, in conjunction
with the departments concerned, issue a military goods export notice for the
export of military goods. The departments and local people’s governments
concerned shall, on receipt of the military goods export notice and pursuant
to the relevant state provisions, conscientiously fulfil their duties to
ensure the safety, rapidity and accuracy in military goods export.
Chapter IV  Military Goods Export Order

    Article 20  No unit or organization shall engage in business operations
of military goods export without the acquisition of military goods export
management right.

    The State prohibits any individual from engaging in business operations of
military goods export.

    Article 21  Military goods trading companies shall, in business operations
of military goods export, abide by the provisions of laws and administrative
regulations and maintain the normal order in military goods export.

    Article 22  No military goods trading company shall, in business
operations of military goods export, commit the following acts:

    (1) endangering national security or public interest of society;

    (2) squeezing its competitive opponent out with unfair means of
competition;

    (3) infringing on intellectual property rights under the protection of the
laws of the People’s Republic of China;

    (4) forging, altering, acquiring through fraud or transferring such
documents and licence as the approval document for military goods export
items, the approval document for contract, the licence and the effective
testimonial document of the acceptor nation;

    (5) operating beyond the verified business scope; and

    (6) other acts in violation of the provisions of laws and administrative
regulations.

    Article 23  The State Military Goods Trade Bureau may, when it deems
necessary or at the request of a military goods trading company, deal with
acts of hindering the normal order in military goods export.
Chapter V  Legal Liability

    Article 24  Any military goods trading company in violation of the
provisions of Article 11 of these Regulations shall be ordered by the State
Military Goods Trade Bureau to make a rectification within a specified period
and administered a warning; any military goods trading company that fails to
make a rectification on expiry of the specified period shall be revoked of
its management right of military goods export by the State Military Goods
Trade Bureau which shall report the case to the State Control Commission
for Military Goods Trade.

    Article 25  Any military goods trading company in violation of the
provisions of Article 21 and Article 22 of these Regulations shall be
penalized by the competent departments concerned pursuant to the provisions
of relevant laws and administrative regulations and may be revoked of its
management right of military goods export by the State Military Goods Trade
Bureau which shall report the case to the State Control Commission for
Military Goods Trade.

    Article 26  The State Military Goods Trade Bureau shall ban the illegal
operations in violation of the provisions of Article 20 of these Regulations,
and the competent departments concerned of the State shall, pursuant to the
provisions of relevant laws and administrative regulations, impose a penalty.

    Article 27  Criminal liability shall be investigated in accordance with
law for violation of the provisions of these Regulations that constitutes
a crime.

    Article 28  A military goods trading company which has objections to
the penalty decision revoking its management right of military goods export
may, within 15 days from the date of receipt of the penalty notice, apply
to the State Control Commission for Military Goods Trade for reconsideration.
The State Control Commission for Military Goods Trade shall, within 15 days
from the date of receipt of the application for reconsideration, make a
reconsideration decision which shall be the final decision.

    Article 29  Functionaries of state military goods trade administration
whose negligence of duty, indulgence in self-seeking misconduct, abuse of
power or acceptance or extortion of other people’s property by taking
advantage of their positions constitutes a crime shall be investigated
of the criminal liability in accordance with law; where a crime has not been
constituted, administrative sanctions shall be imposed in accordance with law.
Chapter VI  Supplementary Provisions

    Article 30  These Regulations shall apply to the export of police
equipment.

    Article 31  These Regulations shall enter into force as of January 1,
1998.






CIRCULAR OF THE STATE COUNCIL ON THE APPROVAL AND TRANSMISSION OF THESUGGESTIONS CONCERNING FURTHER STRENGTHENING PROJECT MANAGEMENT OF THE AUTOMOTIVE INDUSTRY OF THE STATE PLANNING COMMISSION AND OTHER DEPARTMENTS

Category  INDUSTRY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-07-11 Effective Date  1997-07-11  


Circular of the State Council on the Approval and Transmission of theSuggestions Concerning Further Strengthening Project Management
of the Automotive Industry of the State Planning Commission and Other Departments


APPENDIX;SUGGESTIONS CONCERNING FURTHER STRENGTHENING PROJECT MANAGEMENT

(July 11, 1997)

    People’s Governments of All Provinces, Autonomous Regions and
Municipalities Directly Under the Central Government, All Ministries and
Commissions under the State Council and All Agencies Directly Under the
State Council:

    The State Council has approved the Strengthening Project Management of the Automotive Industry> of the State
Planning Commission, the State Economic and Trade Commission, the Ministry
of Machinery, the Ministry of Public Security, the Ministry of Foreign
Trade and Economic Cooperation, the General Administration of Customs
and the State Industry and Commerce Administration, which is hereby
transmitted to you for earnest implementation.

    All regions and departments must strictly carry out the < >>(Guo Fa [1994] No. 17), and seriously conduct
an inspection on the status of its implementation. Examination and approval
of projects of automobiles, motorcycles and engines without authorization
in violation of state provisions must be seriously dealt with once uncovered
and the leading personnel involved shall be investigated of their
responsibilites. The State Planning Commission shall, in conjunction with
the departments concerned, conduct the inspection in accordance with the
spirit of this Circular, deal with the problems discovered in time and
submit a report to the State Council.

APPENDIX;SUGGESTIONS CONCERNING FURTHER STRENGTHENING PROJECT MANAGEMENT
OF THE AUTOMOTIVE INDUSTRY

    Since the issuance of the <Issuance of the >>(Guo Fa
[1994] No. 17) in 1994, the momentum of dispersed, blind and repetitious
development of the automotive industry in our country has been somewhat
curbed. However, of late, a number of regions and departments have, proceeding
from local interests, taken up new automotive projects without state approval
outside the designated sites under state planning. A number of units have
conducted talks with foreign businesses without authorization on the
construction of joint-venture automotive projects, and gone through the
formalities of examination and approval on their own by breaking the
whole project into parts or “acting first and reporting afterwards”,
forcing the state to approve after making the fait accompli. A number
of automobile manufacturing enterprises have, in violation of the provisions
of the relevant ministries and commissions of the state on the administration
of automobile, converted civilian vehicle and motorcycle manufacturing
enterprises and their product catalogs nationwide, illegally assembled
automobiles, speculated on selling certificates of quality, transferred
product catalogs and even embarked on whole-vehicle manufacture projects
in the name of vehicle conversion. These problems, if not corrected in
time, will lead to new, blind and repetitious construction, seriously
affecting the sound development of the sutomotive industry in China.
For the purpose of further implementation of the , realization of tasks prescribed in the Five-year Plan for National Socio-economic Development and the Program
for Perspective Goals in 2010> and promotion of the sound development of the automotive industry in China, the following suggestions
are hereby
put forth:

    1.Further enhancing the macro-control over investment projects in the
automotive industry. All fixed-asset investment projects involving automobiles
(including buses and all types of converted vehicles, the same hereinafter),
whole motorcyles and engines(including motorcycle engines, the same herein-
after), regardless of the nature of construction(including capital
construction, technological transformation, technological induction as
well as assembly projects for export with import auto and motorcycle
components and complete-set manufactured parts under processing trade,
etc.), irrespective of the source of capital(domestic capital or utilization
of foreign capital) and whether it is above ceiling or below ceiling, shall
be submitted to the State Planning Commission, the State Economic and
Trade Commission for examination and approval in conjunction with the
departments concerned, among which the major projects shall be submitted
to the State Council for examination and approval. Upon remarks in preliminary
examination put forth by the Ministry of Machinery with respect to the
aforesaid projects, projects involving capital construction and processing
trade shall be subject to the examination and approval of the State Planning
Commission and projects of technological transformation shall be subject to
the examination and approval of the State Economic and Trade Commission;
major projects shall be submitted to the State Council for examination and
approval upon examination and verification by the State Planning Commission
or the State Economic and Trade Commission according to the nature of construction. The State Economic and Trade Commission shall,
before the
examination and approval of above-ceiling projects of technological
transformation utilizing foreign capital and submitting the projects of
technological transformation to the State Council for examination and
approval, first despatch the papers of the said projects to the State
Planning Commission for countersignature.

    2.With respect to projects of whole-vehicle automobiles and motorcycles
as well as import components and complete-set manufactured parts under
processing trade, customs formalities for the record shall be completed
on the strength of project approval documents of the State Planning Commission
or the State Economic and Trade Commission.

    3.For requests for increase in investment in Sino-Foreign joint venture
projects of whole-vehicle automobiles and motorcycles and engines,
irrespective of whether they are projects above the ceiling or below the
ceiling, their feasibility studies shall be submitted to the State Planning
Commission or the State Economic and Trade Commission according to the
nature of construction while listing the projects under the state plan
for examination and approval in conjuction with the departments concerned,
revision of joint venture enterprise contracts shall be submitted to the
Ministry of Foreign Trade and Economic Cooperation for examination and
approval.

    4.For enterprise business scope involving projects of manufacture,
assembly and processing trade of whole-vehicle automobiles and motorcycles
and engines, applications for the completion of formalities of registration
shall be filed at organs of industry and commerce administration on the
strength of the project approval documents of the State Planning Commission
or the State Economic and Trade Commission and the Ministry of Machinery.
Organs of industry and commerce administration shall not process the
registration of those enterprises without going through the formalities of examination and approval in accordance with the aforesaid
provisions, and
the products manufactured by them shall be prohibited from distribution
in the market. Enterprises that commit violations of the provisions shall
be investigated and dealt with by organs of industry and commerce
administration. Specific measures for implementation shall be worked out
by the State Administration of Industry and Commerce.

    5.A sorting-out and consolidation of the existing automobile and
motorcycle manufacturing enterprises shall be carried out in 1997 which
shall be headed by the Ministry of Machinery in conjunction with the
Ministry of Public Security and other departments concerned. Enterprises
that do not have the basic required conditions for manufacture and
enterprises that have committed acts of manufacturing vehicle types
inconsistent with the product catalog or tranferring the catalog and
selling product quality certificates shall all be revoked of their
corresponding product catalogs. Double quality certificate system(whole-
vehicle quality certificate and chassis quality certificate) shall be
practised with respect to the products manufactured by vehicle conversion
plants. Specific measures shall be worked out by the Ministry of Machinery
in conjunction with the departments concerned.

    It is requested that the above suggestions, if not inappropriate, be
approved and transmitted to all regions and departments for implementation.






HONG KONG SPECIAL ADMINISTRATIVE REGION BASIC LAW

The Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China

    

Decree of the President of the People’s Republic of China No. 26

I hereby promulgate the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China, including Annex
I, Method for the Selection of the Chief Executive of the Hong Kong Special Administrative Region, Annex II, Method for the Formation
of the Legislative Council of the Hong Kong Special Administrative Region and Its Voting Procedures, Annex III, National Laws to
be Applied in the Hong Kong Special Administrative Region, and designs of the regional flag and regional emblem of the Hong Kong
Special Administrative Region, which was adopted at the Third Session of the Seventh National People’s Congress of the People’s Republic
of China on 4 April 1990 and shall be put into effect as of 1 July 1997.

(Signed)Yang Shangkun

President of the People’s Republic of China

4 April 1990

————————————————————————————————————————

The Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China

(Adopted at the Third Session of the Seventh National People’s Congress on April 4, 1990, promulgated by Order No. 26 of the President
of the People’s Republic of China on April 4, 1990, and effective as of July 1, 1997)

Preamble

Chapter I – General Principles

Chapter II – Relationship between the Central Authorities and the Hong Kong Special Administrative Region

Chapter III – Fundamental Rights and Duties of the Residents

Chapter IV – Political Structure

Section 1 – The Chief Executive

Section 2 – The Executive Authorities

Section 3 – The Legislature

Section 4 – The Judiciary

Section 5 – District Organizations

Section 6 – Public Servants

Chapter V – Economy

Section 1 – Public Finance/ Monetary Affairs, Trade, Industry and Commerce

Section 2 – Land Leases

Section 3 – Shipping

Section 4 – Civil Aviation

Chapter VI – Education, Science, Culture, Sports, Religion, Labour and Social Services

ChapterVII – External Affairs

ChapterVIII – Interpretation and Amendment of the Basic Law

Chapter IX – Supplementary Provisions

Annex I – Method for the Selection of the Chief Executive of the Hong Kong Special Administrative Region

Annex II – Method for the Formation of the Legislative Council of the Hong Kong Special Administrative Region and Its Voting Procedures

Annex III – National Laws to be Applied in the Hong Kong Special Administrative Region

————————————————————————————————————————

Preamble

Hong Kong has been part of the territory of China since ancient times; it was occupied by Britain after the Opium War in 1840. On
19 December 1984, the Chinese and British Governments signed the Joint Declaration on the Question of Hong Kong, affirming that the
Government of the People’s Republic of China will resume the exercise of sovereignty over Hong Kong with effect from 1 July 1997,
thus fulfilling the long-cherished common aspiration of the Chinese people for the recovery of Hong Kong.

Upholding national unity and territorial integrity, maintaining the prosperity and stability of Hong Kong, and taking account of its
history and realities, the People’s Republic of China has decided that upon China’s resumption of the exercise of sovereignty over
Hong Kong, a Hong Kong Special Administrative Region will be established in accordance with the provisions of Article 31 of the Constitution
of the People’s Republic of China, and that under the principle of “one country, two systems”, the socialist system and policies
will not be practised in Hong Kong. The basic policies of the People’s Republic of China regarding Hong Kong have been elaborated
by the Chinese Government in the Sino-British Joint Declaration.

In accordance with the Constitution of the People’s Republic of China, the National People’s Congress hereby enacts the Basic Law
of the Hong Kong Special Administrative Region of the People’s Republic of China, prescribing the systems to be practised in the
Hong Kong Special Administrative Region, in order to ensure the implementation of the basic policies of the People’s Republic of
China regarding Hong Kong.

————————————————————————————————————————

Chapter I: General Principles

   Article 1

The Hong Kong Special Administrative Region is an inalienable part of the People’s Republic of China.

   Article 2

The National People’s Congress authorizes the Hong Kong Special Administrative Region to exercise a high degree of autonomy and enjoy
executive, legislative and independent judicial power, including that of final adjudication, in accordance with the provisions of
this Law.

   Article 3

The executive authorities and legislature of the Hong Kong Special Administrative Region shall be composed of permanent residents
of Hong Kong in accordance with the relevant provisions of this Law.

   Article 4

The Hong Kong Special Administrative Region shall safeguard the rights and freedoms of the residents of the Hong Kong Special Administrative
Region and of other persons in the Region in accordance with law.

   Article 5

The socialist system and policies shall not be practised in the Hong Kong Special Administrative Region, and the previous capitalist
system and way of life shall remain unchanged for 50 years.

   Article 6

The Hong Kong Special Administrative Region shall protect the right of private ownership of property in accordance with law.

   Article 7

The land and natural resources within the Hong Kong Special Administrative Region shall be State property. The Government of the Hong
Kong Special Administrative Region shall be responsible for their management, use and development and for their lease or grant to
individuals, legal persons or organizations for use or development. The revenues derived therefrom shall be exclusively at the disposal
of the government of the Region.

   Article 8

The laws previously in force in Hong Kong, that is, the common law, rules of equity, ordinances, subordinate legislation and customary
law shall be maintained, except for any that contravene this Law, and subject to any amendment by the legislature of the Hong Kong
Special Administrative Region.

   Article 9

In addition to the Chinese language, English may also be used as an official language by the executive authorities, legislature and
judiciary of the Hong Kong Special Administrative Region.

   Article 10

Apart from displaying the national flag and national emblem of the People’s Republic of China, the Hong Kong Special Administrative
Region may also use a regional flag and regional emblem.

The regional flag of the Hong Kong Special Administrative Region is a red flag with a bauhinia highlighted by five star-tipped stamens.

The regional emblem of the Hong Kong Special Administrative Region is a bauhinia in the centre highlighted by five star-tipped stamens
and encircled by the words “Hong Kong Special Administrative Region of the People’s Republic of China” in Chinese and “HONG KONG”
in English.

   Article 11

In accordance with Article 31 of the Constitution of the People’s Republic of China, the systems and policies practised in the Hong
Kong Special Administrative Region, including the social and economic systems, the system for safeguarding the fundamental rights
and freedoms of its residents, the executive, legislative and judicial systems, and the relevant policies, shall be based on the
provisions of this Law.

No law enacted by the legislature of the Hong Kong Special Administrative Region shall contravene this Law.

————————————————————————————————————————-

Chapter II: Relationship between the Central Authorities and the Hong Kong Special Administrative Region

   Article 12

The Hong Kong Special Administrative Region shall be a local administrative region of the People’s Republic of China, which shall
enjoy a high degree of autonomy and come directly under the Central People’s Government.

   Article 13

The Central People’s Government shall be responsible for the foreign affairs relating to the Hong Kong Special Administrative Region.

The Ministry of Foreign Affairs of the People’s Republic of China shall establish an office in Hong Kong to deal with foreign affairs.

The Central People’s Government authorizes the Hong Kong Special Administrative Region to conduct relevant external affairs on its
own in accordance with this Law.

   Article 14

The Central People’s Government shall be responsible for the defence of the Hong Kong Special Administrative Region.

The Government of the Hong Kong Special Administrative Region shall be responsible for the maintenance of public order in the Region.

Military forces stationed by the Central People’s Government in the Hong Kong Special Administrative Region for defence shall not
interfere in the local affairs of the Region. The Government of the Hong Kong Special Administrative Region may, when necessary,
ask the Central People’s Government for assistance from the garrison in the maintenance of public order and in disaster relief.

In addition to abiding by national laws, members of the garrison shall abide by the laws of the Hong Kong Special Administrative Region.

Expenditure for the garrison shall be borne by the Central People’s Government.

   Article 15

The Central People’s Government shall appoint the Chief Executive and the principal officials of the executive authorities of the
Hong Kong Special Administrative Region in accordance with the provisions of Chapter IV of this Law.

   Article 16

The Hong Kong Special Administrative Region shall be vested with executive power. It shall, on its own, conduct the administrative
affairs of the Region in accordance with the relevant provisions of this Law.

   Article 17

The Hong Kong Special Administrative Region shall be vested with legislative power.

Laws enacted by the legislature of the Hong Kong Special Administrative Region must be reported to the Standing Committee of the National
People’s Congress for the record. The reporting for record shall not affect the entry into force of such laws.

If the Standing Committee of the National People’s Congress, after consulting the Committee for the Basic Law of the Hong Kong Special
Administrative Region under it, considers that any law enacted by the legislature of the Region is not in conformity with the provisions
of this Law regarding affairs within the responsibility of the Central Authorities or regarding the relationship between the Central
Authorities and the Region, the Standing Committee may return the law in question but shall not amend it. Any law returned by the
Standing Committee of the National People’s Congress shall immediately be invalidated. This invalidation shall not have retroactive
effect, unless otherwise provided for in the laws of the Region.

   Article 18

The laws in force in the Hong Kong Special Administrative Region shall be this Law, the laws previously in force in Hong Kong as provided
for in Article 8 of this Law, and the laws enacted by the legislature of the Region.

National laws shall not be applied in the Hong Kong Special Administrative Region except for those listed in Annex III to this Law.
The laws listed therein shall be applied locally by way of promulgation or legislation by the Region.

The Standing Committee of the National People’s Congress may add to or delete from the list of laws in Annex III after consulting
its Committee for the Basic Law of the Hong Kong Special Administrative Region and the government of the Region. Laws listed in Annex
III to this Law shall be confined to those relating to defence and foreign affairs as well as other matters outside the limits of
the autonomy of the Region as specified by this Law.

In the event that the Standing Committee of the National People’s Congress decides to declare a state of war or, by reason of turmoil
within the Hong Kong Special Administrative Region which endangers national unity or security and is beyond the control of the government
of the Region, decides that the Region is in a state of emergency, the Central People’s Government may issue an order applying the
relevant national laws in the Region.

   Article 19

The Hong Kong Special Administrative Region shall be vested with independent judicial power, including that of final adjudication.

The courts of the Hong Kong Special Administrative Region shall have jurisdiction over all cases in the Region, except that the restrictions
on their jurisdiction imposed by the legal system and principles previously in force in Hong Kong shall be maintained.

The courts of the Hong Kong Special Administrative Region shall have no jurisdiction over acts of state such as defence and foreign
affairs. The courts of the Region shall obtain a certificate from the Chief Executive on questions of fact concerning acts of state
such as defence and foreign affairs whenever such questions arise in the adjudication of cases. This certificate shall be binding
on the courts. Before issuing such a certificate, the Chief Executive shall obtain a certifying document from the Central People’s
Government.

   Article 20

The Hong Kong Special Administrative Region may enjoy other powers granted to it by the National People’s Congress, the Standing Committee
of the National People’s Congress or the Central People’s Government.

   Article 21

Chinese citizens who are residents of the Hong Kong Special Administrative Region shall be enpost_titled to participate in the management
of state affairs according to law.

In accordance with the assigned number of seats and the selection method specified by the National People’s Congress, the Chinese
citizens among the residents of the Hong Kong Special Administrative Region shall locally elect deputies of the Region to the National
People’s Congress to participate in the work of the highest organ of state power.

   Article 22

No department of the Central People’s Government and no province, autonomous region, or municipality directly under the Central Government
may interfere in the affairs which the Hong Kong Special Administrative Region administers on its own in accordance with this Law.

If there is a need for departments of the Central Government, or for provinces, autonomous regions, or municipalities directly under
the Central Government to set up offices in the Hong Kong Special Administrative Region, they must obtain the consent of the government
of the Region and the approval of the Central People’s Government.

All offices set up in the Hong Kong Special Administrative Region by departments of the Central Government, or by provinces, autonomous
regions, or municipalities directly under the Central Government, and the personnel of these offices shall abide by the laws of the
Region.

For entry into the Hong Kong Special Administrative Region, people from other parts of China must apply for approval. Among them,
the number of persons who enter the Region for the purpose of settlement shall be determined by the competent authorities of the
Central People’s Government after consulting the government of the Region.

The Hong Kong Special Administrative Region may establish an office in Beijing.

   Article 23

The Hong Kong Special Administrative Region shall enact laws on its own to prohibit any act of treason, secession, sedition, subversion
against the Central People’s Government, or theft of state secrets, to prohibit foreign political organizations or bodies from conducting
political activities in the Region, and to prohibit political organizations or bodies of the Region from establishing ties with foreign
political organizations or bodies.

———————————————————————————————————————–

Chapter III: Fundamental Rights and Duties of the Residents

   Article 24

Residents of the Hong Kong Special Administrative Region (“Hong Kong residents”) shall include permanent residents and non-permanent
residents.

The permanent residents of the Hong Kong Special Administrative Region shall be:

(1) Chinese citizens born in Hong Kong before or after the establishment of the Hong Kong Special Administrative Region;

(2) Chinese citizens who have ordinarily resided in Hong Kong for a continuous period of not less than seven years before or after
the establishment of the Hong Kong Special Administrative Region;

(3) Persons of Chinese nationality born outside Hong Kong of those residents listed in categories (1) and (2);

(4) Persons not of Chinese nationality who have entered Hong Kong with valid travel documents, have ordinarily resided in Hong Kong
for a continuous period of not less than seven years and have taken Hong Kong as their place of permanent residence before or after
the establishment of the Hong Kong Special Administrative Region;

(5) Persons under 21 years of age born in Hong Kong of those residents listed in category (4) before or after the establishment of
the Hong Kong Special Administrative Region; and

(6) Persons other than those residents listed in categories (1) to (5), who, before the establishment of the Hong Kong Special Administrative
Region, had the right of abode in Hong Kong only.

The above-mentioned residents shall have the right of abode in the Hong Kong Special Administrative Region and shall be qualified
to obtain, in accordance with the laws of the Region, permanent identity cards which state their right of abode.

The non-permanent residents of the Hong Kong Special Administrative Region shall be persons who are qualified to obtain Hong Kong
identity cards in accordance with the laws of the Region but have no right of abode.

   Article 25

All Hong Kong residents shall be equal before the law.

   Article 26

Permanent residents of the Hong Kong Special Administrative Region shall have the right to vote and the right to stand for election
in accordance with law.

   Article 27

Hong Kong residents shall have freedom of speech, of the press and of publication; freedom of association, of assembly, of procession
and of demonstration; and the right and freedom to form and join trade unions, and to strike.

   Article 28

The freedom of the person of Hong Kong residents shall be inviolable.

No Hong Kong resident shall be subjected to arbitrary or unlawful arrest, detention or imprisonment. Arbitrary or unlawful search
of the body of any resident or deprivation or restriction of the freedom of the person shall be prohibited. Torture of any resident
or arbitrary or unlawful deprivation of the life of any resident shall be prohibited.

   Article 29

The homes and other premises of Hong Kong residents shall be inviolable. Arbitrary or unlawful search of, or intrusion into, a resident’s
home or other premises shall be prohibited.

   Article 30

The freedom and privacy of communication of Hong Kong residents shall be protected by law. No department or individual may, on any
grounds, infringe upon the freedom and privacy of communication of residents except that the relevant authorities may inspect communication
in accordance with legal procedures to meet the needs of public security or of investigation into criminal offences.

   Article 31

Hong Kong residents shall have freedom of movement within the Hong Kong Special Administrative Region and freedom of emigration to
other countries and regions. They shall have freedom to travel and to enter or leave the Region. Unless restrained by law, holders
of valid travel documents shall be free to leave the Region without special authorization.

   Article 32

Hong Kong residents shall have freedom of conscience.

Hong Kong residents shall have freedom of religious belief and freedom to preach and to conduct and participate in religious activities
in public.

   Article 33

Hong Kong residents shall have freedom of choice of occupation.

   Article 34

Hong Kong residents shall have freedom to engage in academic research, literary and artistic creation, and other cultural activities.

   Article 35

Hong Kong residents shall have the right to confidential legal advice, access to the courts, choice of lawyers for timely protection
of their lawful rights and interests or for representation in the courts, and to judicial remedies.

Hong Kong residents shall have the right to institute legal proceedings in the courts against the acts of the executive authorities
and their personnel.

   Article 36

Hong Kong residents shall have the right to social welfare in accordance with law. The welfare benefits and retirement security of
the labour force shall be protected by law.

   Article 37

The freedom of marriage of Hong Kong residents and their right to raise a family freely shall be protected by law.

   Article 38

Hong Kong residents shall enjoy the other rights and freedoms safeguarded by the laws of the Hong Kong Special Administrative Region.

   Article 39

The provisions of the International Covenant on Civil and Political Rights, the International Covenant on Economic, Social and Cultural
Rights, and international labour conventions as applied to Hong Kong shall remain in force and shall be implemented through the laws
of the Hong Kong Special Administrative Region.

The rights and freedoms enjoyed by Hong Kong residents shall not be restricted unless as prescribed by law. Such restrictions shall
not contravene the provisions of the preceding paragraph of this Article.

   Article 40

The lawful traditional rights and interests of the indigenous inhabitants of the “New Territories” shall be protected by the Hong
Kong Special Administrative Region.

   Article 41

Persons in the Hong Kong Special Administrative Region other than Hong Kong residents shall, in accordance with law, enjoy the rights
and freedoms of Hong Kong residents prescribed in this Chapter.

   Article 42

Hong Kong residents and other persons in Hong Kong shall have the obligation to abide by the laws in force in the Hong Kong Special
Administrative Region.

————————————————————————————————————————

Chapter IV: Political Structure

Section 1: The Chief Executive

   Article 43

The Chief Executive of the Hong Kong Special Administrative Region shall be the head of the Hong Kong Special Administrative Region
and shall represent the Region.

The Chief Executive of the Hong Kong Special Administrative Region shall be accountable to the Central People’s Government and the
Hong Kong Special Administrative Region in accordance with the provisions of this Law.

   Article 44

The Chief Executive of the Hong Kong Special Administrative Region shall be a Chinese citizen of not less than 40 years of age who
is a permanent resident of the Region with no right of abode in any foreign country and has ordinarily resided in Hong Kong for a
continuous period of not less than 20 years.

   Article 45

The Chief Executive of the Hong Kong Special Administrative Region shall be selected by election or through consultations held locally
and be appointed by the Central People’s Government.

The method for selecting the Chief Executive shall be specified in the light of the actual situation in the Hong Kong Special Administrative
Region and in accordance with the principle of gradual and orderly progress. The ultimate aim is the selection of the Chief Executive
by universal suffrage upon nomination by a broadly representative nominating committee in accordance with democratic procedures.

The specific method for selecting the Chief Executive is prescribed in Annex I: “Method for the Selection of the Chief Executive of
the Hong Kong Special Administrative Region”.

   Article 46

The term of office of the Chief Executive of the Hong Kong Special Administrative Region shall be five years. He or she may serve
for not more than two consecutive terms.

   Article 47

The Chief Executive of the Hong Kong Special Administrative Region must be a person of integrity, dedicated to his or her duties.

The Chief Executive on assuming office, shall declare his or her assets to the Chief Justice of the Court of Final Appeal of the Hong
Kong Special Administrative Region. This declaration shall be put on record.

   Article 48

The Chief Executive of the Hong Kong Special Administrative Region shall exercise the following powers and functions:

(1) To lead the government of the Region;

(2) To be responsible for the implementation of this Law and other laws which, in accordance with this Law, apply in the Hong Kong
Special Administrative Region;

(3) To sign bills passed by the Legislative Council and to promulgate laws;

To sign budgets passed by the Legislative Council and report the budgets and final accounts to the Central People’s Government for
the record;

(4) To decide on government policies and to issue executive orders;

(5) To nominate and to report to the Central People’s Government for appointment the following principal officials: Secretaries and
Deputy Secretaries of Departments, Directors of Bureaux, Commissioner Against Corruption, Director of Audit, Commissioner of Police,
Director of Immigration and Commissioner of Customs and Excise; and to recommend to the Central People’s Government the removal of
the above-mentioned officials;

(6) To appoint or remove judges of the courts at all levels in accordance with legal procedures;

(7) To appoint or remove holders of public office in accordance with legal procedures;

(8) To implement the directives issued by the Central People’s Government in respect of the relevant matters provided for in this
Law;

(9) To conduct, on behalf of the Government of the Hong Kong Special Administrative Region, external affairs and other affairs as
authorized by the Central Authorities;

(10) To approve the introduction of motions regarding revenues or expenditure to the Legislative Council;

(11) To decide, in the light of security and vital public interests, whether government officials or other personnel in charge of
government affairs should testify or give evidence before the Legislative Council or its committees;

(12) To pardon persons convicted of criminal offences or commute their penalties; and

(13) To handle petitions and complaints.

   Article 49

If the Chief Executive of the Hong Kong Special Administrative Region considers that a bill passed by the Legislative Council is not
compatible with the overall interests of the Region, he or she may return it to the Legislative Council within three months for reconsideration.
If the Legislative Council passes the original bill again by not less than a two-thirds majority of all the members, the Chief Executive
must sign and promulgate it within one month, or act in accordance with the provisions of Article 50 of this Law.

   Article 50

If the Chief Executive of the Hong Kong Special Administrative Region refuses to sign a bill passed the second time by the Legislative
Council, or the Legislative Council refuses to pass a budget or any other important bill introduced by the government, and if consensus
still cannot be reached after consultations, the Chief Executive may dissolve the Legislative Council.

The Chief Executive must consult the Executive Council before dissolving the Legislative Council. The Chief Executive may dissolve
the Legislative Council only once in each term of his or her office.

   Article 51

If the Legislative Council of the Hong Kong Special Administrative Region refuses to pass the budget introduced by the government,
the Chief Executive may apply to the Legislative Council for provisional appropriations. If appropriation of public funds cannot
be approved because the Legislative Council has already been dissolved, the Chief Executive may, prior to the election of the new
Legislative Council, approve provisional short-term appropriations according to the level of expenditure of the previous fiscal year.

   Article 52

The Chief Executive of the Hong Kong Special Administrative Region must resign under any of the following circumstances:

(1) When he or she loses the ability to discharge his or her duties as a result of serious illness or other reasons;

(2) When, after the Legislative Council is dissolved because he or she twice refuses to sign a bill passed by it, the new Legislative
Council again passes by a two-thirds majority of all the members the original bill in dispute, but he or she still refuses to sign
it; and

(3) When, after the Legislative Council is dissolved because it refuses to pass a budget or any other important bill, the new Legislative
Council still refuses to pass the original bill in dispute.

   Article 53

If the Chief Executive of the Hong Kong Special Administrative Region is not able to discharge his or her duties for a short period,
such duties shall temporarily be assumed by the Administrative Secretary, Financial Secretary or Secretary of Justice in this order
of precedence.

In the event that the office of Chief Executive becomes vacant, a new Chief Executive shall be selected within six months in accordance
with the provisions of Article 45 of this Law. During the period of vacancy, his or her duties shall be assumed according to the
provisions of the preceding paragraph.

   Article 54

The Executive Council of the Hong Kong Special Administrative Region shall be an organ for assisting the Chief Executive in policy-making.

   Article 55

Members of the Executive Council of the Hong Kong Special Administrative Region shall be appointed by the Chief Executive from among
the principal officials of the executive authorities, members of the Legislative Council and public figures. Their appointment or
removal shall be decided by the Chief Executive. The term of office of members of the Executive Council shall not extend beyond the
expiry of the term of office of the Chief Executive who appoints them.

Members of the Executive Council of the Hong Kong Special Administrative Region shall be Chinese citizens who are permanent residents
of the Region with no right of abode in any foreign country.

The Chief Executive may, as he or she deems necessary, invite other perso

CIRCULAR OF THE STATE COUNCIL ON THE APPROVAL AND TRANSMISSION OF THE “RULES CONCERNING STRICT PROHIBITION OF SCALPING IN STOCKS BY STATE-OWNED ENTERPRISES AND LISTED COMPANIES” BY THE STATE COUNCIL’S SECURITIES COMMISSION, THE PEOPLE’S BANK OF CHINA AND THE STATE ECONOMIC AND TRADE COMMISSION

Category  SECURITIES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-05-21 Effective Date  1997-05-21  


Circular of the State Council on the Approval and Transmission of the “Rules Concerning Strict Prohibition of Scalping in Stocks
by State-owned Enterprises and Listed Companies” by the State Council’s Securities Commission, the People’s Bank of China and the
State Economic and Trade Commission


Appendix: RULES CONCERNING STRICT PROHIBITION OF SCALPING IN STOCKS BY

(May 21, 1997)

    The State Council has approved the “Rules Concerning Strict Prohibition
of Scalping in Stocks by State-owned Enterprises and Listed Companies”
by the State Council’s Securities Commission, the People’s Bank of China
and the State Economic and Trade Commission which is hereby transmitted
to you for conscientious implementation.

Appendix: RULES CONCERNING STRICT PROHIBITION OF SCALPING IN STOCKS BY
STATE-OWNED ENTERPRISES AND LISTED COMPANIES (The State Council’s Securities
Commission, the People’s Bank of China and the State Economic and Trade
Commission  May 21, 1997)

    Securities markets in our country are still in their incipient stage of
development and there exist serious phenomena of over-speculation and
violation of rules. Crackdown on activities in violation of rules and
curb of over-speculation are of crucial importance in promoting the sound
development of socialist market economy and maintenance of social stability
to which great importance must be attached. For some time in the recent past,
funds of state-owned commercial banks have flowed into stock markets
through various channels. Some state-owned enterprises and listed companies
have engaged in scalping in stocks with bank credit funds; some listed
companies have put funds from solicited shares meant for production and
operations into stock markets for scalping in stocks; some state-owned
enterprises have put self-owned funds meant for self-development into stock
markets for scalping in stocks. On the one hand, such state of affairs has
encouraged speculation in stock markets; on the other, it has put state-owned
assets in a high-risk state, seriously endangering the security of
state-owned assets. To bring into play the function of the socialist stock
markets in raising funds for economic construction and promoting
transformation of operations mechanism of the enterprises, and to maintain
normal order in the markets, scalping in stock markets by the state-owned
enterprises and listed companies must be curbed. The following rules are
hereby laid down:

    1.The state-owned enterprises shall not scalp in stocks or provide funds
to other institutions for scalping in stocks, nor shall they draw on
state bank credit funds in buying and selling stocks.

    Scalping in stocks referred to in these Rules mean the acts of buying in
and selling of stocks or selling and buying in of stocks within the time
period prescribed by the competent department under the State Council.

    2.Listed companies shall not draw on bank credit funds to buy and sell
stocks, or funds raised through issuance of stocks, nor shall they provide
funds to other institutions for scalping in stocks.

    3.The state-owned enterprises’ and listed companies’ holding of listed
circulating stocks for long-term investment (beyond the time period prescribed
by the competent department under the State Council) shall be reported to
securities exchanges. Securities exchanges should take measures to strengthen
management and supervise the state-owned enterprises and listed companies in
the observance of the relevant requirements of these Rules.

    4.The state-owned enterprises and listed companies are only enpost_titled to
open a stock account (stock A) in an exchange, and must use the name of the
enterprise proper (the legal person). Opening of a stock account in the name
of a person or provision of funds for the buying and selling of stocks for
individuals by the state-owned enterprises and listed companies shall be
strictly prohibited. Units with the aforesaid problems must amend within
one month starting from the date of promulgation of these Rules; units that
refuse to amend shall be severely penalized and responsibilities of their
legal representatives or those directly responsible shall be investigated.

    5.Securities exchanges, securities registration and settlement agencies
and securities operating agencies shall carry out inspection with respect to
the stock accounts and capital accounts already opened, in case scalping in
stocks by the state-owned enterprises and listed companies, or opening of
stock accounts in the name of individuals and provision of funds for
individual stock accounts are found, those involved shall be asked to
make corrections forthwith and timely reports shall be submitted to the
China Securities Supervisory Commission.

    6.People’s governments of all provinces, autonomous regions and
municipalities directly under the Central Government and all departments
under the State Council shall carry out forthwith inspection on the status
of the state-owned enterprises under them in scalping in stocks, all
departments of securities administration of all localities shall conduct
inspection on the status of the listed companies under their respective
jurisdiction in scalping in stocks, and report the inspection results to
the Securities Commission under the State Council. Those state-owned
enterprises and listed companies that go on scalping in stocks upon
promulgation of these Rules, once investigated and verified, their revenue
shall all be confiscated and fines imposed; for enterprises embezzling bank
credit funds for buying and selling stocks, the banks shall suspend additional
new loans, and recover the embezzled loans within the specified time period;
for the leading persons-in-charge and those directly responsible of the
state-owned enterprises shall be given sanctions of removal from their posts
or expulsion by their competent departments; for leading persons-in-charge and
those directly responsible of the listed companies, the China Securities
Supervisory Commission shall confirm and proclaim them to be barred to market
access.

    Specific measures for the implementation of the above Rules shall be
promulgated by the competent department under the State Council separately.






LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON PARTNERSHIP ENTERPRISES

1997022319970801The Standing Committee of the National People’s CongressOrder of the President of the People’s Republic of ChinaNo.82Adopted and promulgated at the 24th Meeting of the Standing Committee of the Eighth National People’s Congress on February 23, 1997.President of the People’s Republic of China: Jiang ZeminFebruary 23, 1997epdf/e00206.pdfA1partnership enterprise, establishment, property, affair, disbandment, liquidatione00206Law of the People’s Republic of China on Partnership EnterprisesChapter I General ProvisionsArticle 1 This Law is formulated with a view of standardizing partnership enterprises’ activities, protecting the legitimate rights and interests
of partnership enterprises and their partners, maintaining the social and economic order, and promoting the development of the socialist
market economy.
Article 2 “Partnership enterprise” mentioned in this Law refers to a profit-making organization established within the territory of China according
to this Law with their partners associated under a partnership agreement, each making capital contributions, carrying out business
operations, distributing profits, undertaking risks and bearing unlimited and joint liability for the partnership enterprise’s debts.
Article 3 A partnership agreement shall be in written form after consultation and agreement among all the partners according to law.Article 4 In concluding a partnership agreement and establishing a partnership enterprise, the parties shall follow the principles of voluntariness,
equality, fairness, honesty and credibility.
Article 5 Partnership enterprises shall not use words such as “limited” or “limited liability” in their names.Article 6 In engaging in business activities, partnership enterprises must observe laws and administrative regulations and abide by professional
ethics.
Article 7 Property, legitimate rights and interests of partnership enterprises and their partners shall be protected by law.Chapter II Establishment of Partnership EnterprisesArticle 8 The following conditions shall be fulfilled for the establishment of a partnership enterprise:(1)two or more partners each of which to bear unlimited liability according to law;(2)a written partnership agreement;(3)capital contributions actually made by each of partners;(4)the name of the partnership enterprise; and(5)the place of business and conditions necessary for partnership operations.Article 9 A partner shall be a person with full capacity for civil conduct.Article 10 Those prohibited by laws or administrative regulations from engaging in profit-making activities shall not be partners of a partnership
enterprise.
Article 11 A partner may make his capital contributions in currency, or by providing material objects, land use rights, intellectual property
rights or other property rights. The capital contributions above-mentioned shall be legal property or property rights owned by the
partner.Capital contributions in other forms than in currency may, if necessary, be appraised and evaluated by all the partners through consultation,
or by a statutory evaluation institution with the authorization of all the partners.A partner may provide personal services as capital contributions after consultation and agreement among all the partners. The evaluation
of contributions in the form of services shall be determined by all the partners through consultation.
Article 12 Partners shall perform their duties of capital contribution in terms of the form, amount and time limit of such contribution, as agreed
upon among them in the partnership agreement.Capital contributions actually made by each of the partners according to the partnership agreement shall be regarded as contributing
to the partnership enterprise.
Article 13 A partnership agreement shall include the following items:(1)the name of the partnership enterprise and address of its place of business;(2)the purpose of partnership and the business scope of the partnership enterprise;(3)names and residences of each partner;(4)the form, amount and time limit for each partner to make capital contributions;(5)the method of distributing profits and undertaking risks;(6)execution of the partnership enterprise’s affairs;(7)entering into and withdrawal from partnership;(8)disbandment and liquidation of the partnership enterprise; and(9)default liability.A partnership agreement may include the operation term of the partnership enterprise and the means of dispute settlement among partners.Article 14 A partnership agreement takes effect upon the signing and sealing by all the partners of the partnership agreement. Any partner shall
enjoy rights and undertake liabilities according to the partnership agreement.The partnership agreement may be revised or supplemented if all the partners reach agreement through consultation.
Article 15 Anyone who applies for registration of the establishment of a partnership enterprise shall submit to the enterprise registration authority
documents such as a written application for registration, a partnership agreement and partners’ identity certificates.Where it is required by laws or administrative regulations that the establishment of the partnership enterprise must be subject to
the examination and approval by the department concerned, the applicant shall submit an approval document in applying for registration
of establishment.
Article 16 The enterprise registration authority shall, within 30 days as of the date of receiving the documents of application for registration,
make a decision whether or not to grant registration. It shall grant registration and issue a business licence to the applicants
that meet the requirements stipulated in this Law, and shall not grant registration to those who fail to meet the requirements stipulated
in this Law and give them a written reply explaining the reasons.
Article 17 The date of the issuance of the partnership enterprise’s business licence shall be the date of the establishment of a partnership
enterprise.No partner may engage in any profit-making activities in the name of the partnership enterprise that has not yet taken out the business
licence.
Article 18 A partnership enterprise intending to establish a branch shall apply for the registration of establishment of the branch to the enterprise
registration authority in the place where the branch is to be located for a business licence.
Chapter III Partnership Enterprises’ PropertyArticle 19 During the period in which a partnership enterprise exists, capital contributions made by partners and all proceeds earned on behalf
of the partnership enterprise shall be the property of the partnership enterprise.Property of a partnership enterprise shall be under the unified management and use of all the partners according to this Law.
Article 20 Partners shall not claim the partitioning of property of the partnership enterprise before the liquidation of the enterprise unless
otherwise provided for by this Law.If partners privately transfer or dispose of the property of the partnership enterprise before the liquidation of the enterprise,
the partnership enterprise shall not on that ground act against a third party who has acted in good faith and has not informed of
the case.
Article 21 During the period in which a partnership enterprise exists, any partner who intends to transfer to a person who is not one of the
partners all or part of his property shares in the partnership enterprise must obtain the consent of all other partners.The transfer of all or part of the shares of property in the partnership enterprise between partners shall be notified to the other
partners.
Article 22 Where a partner transfers his share of property according to law, the other partners shall, on identical terms, have priority in acquiring
the share.
Article 23 Where those who are not partners, with the consent of all the partners, acquire shares of property in the partnership enterprise according
to law, they shall become the partners of the partnership enterprise upon the modification of the partnership agreement and shall
enjoy rights and undertake liabilities according to the modified partnership agreement.
Article 24 Where a partner puts his share of property in the partnership enterprise in pledge, he shall obtain the consent of all other partners.If a partner, without the consent of all other partners, puts his share of property in the partnership enterprise in pledge, his act
shall be void or treated as withdrawal from partnership. If he thereby causes losses to the other partners, he shall bear liability
for compensation according to law.
Chapter IV Execution of Partnership Enterprise AffairsArticle 25 Each partner shall have the equal right to execute the partnership enterprise’s affairs. All the partners may jointly execute the
enterprise’s affairs, or, as agreed upon in the partnership agreement or by decision of all the partners, authorize one or more partners
to execute the enterprise’s affairs.The partner executing the partnership enterprise’s affairs shall externally represent the partnership enterprise.
Article 26 Where one or more partners has(have) been authorized to execute the partnership enterprise’s affairs as stipulated in the preceding
Article, the other partners shall no longer execute the enterprise’s affairs.Partners not participating in the execution of affairs shall have the right to supervise the partners executing affairs and inspect
the execution.
Article 27 Where one or more partners execute(s) the partnership enterprise’s affairs, the partner(s) shall report the execution of affairs,
the business operations and financial condition of the partnership enterprise to the other partners not participating in the execution
of affairs. Proceeds earned in the execution of the partnership enterprise’s affairs shall belong to all the partners and losses
and civil liability incurred therefrom be undertaken by all the partners.
Article 28 Partners shall have the right to consult the account book for finding out about the business operations and financial condition of
the partnership enterprise.Where partners make decisions on items relevant to the partnership enterprise according to law or the partnership agreement, unless
otherwise provided for by this Law or by the partnership agreement, the items may, by decision of all the partners, be decided on
a one-person-one-vote basis.
Article 29 Where partners separately execute the partnership enterprise’s affairs as agreed upon in the partnership agreement or by decision
of all the partners, any of partners may address oppositions to the other partners on the execution of affairs. If an opposition
is addressed, the execution of the affairs involved shall be suspended. In case of occurrence of a dispute, all the partners may
jointly make a decision thereon.If the partner(s) authorized to execute the partnership enterprise’s affairs fail(s) to act in accordance with the partnership agreement
or the decision of all the partners, the other partners may make a decision to withdraw such authorization.
Article 30 Partners shall not individually or in co-operation with others engage in businesses competitive with their partnership enterprise.Partners shall not trade with their partnership enterprise except otherwise agreed upon in the partnership agreement or with the consent
of all the partners.Partners shall not engage in any activity damaging the interests of the partnership enterprise.
Article 31 The execution of the following affairs in a partnership enterprise shall be subject to the consent of all the partners:(1)disposing of real estate of the partnership enterprise;(2)changing the name of the partnership enterprise;(3)transferring or disposing of intellectual property rights or other property rights of the partnership enterprise;(4)applying to the enterprise registration authority for registration of changes;(5)offering others a security on behalf of the partnership enterprise;(6)appointing persons who are not partners to act as managerial executives of the partnership enterprise; or(7)dealing with other relevant affairs as agreed upon in the partnership agreement.Article 32 Partners shall share profits and losses of the partnership enterprise in proportion as agreed upon in the partnership agreement. In
absence of stipulations for such proportion in the partnership agreement, each partner shall share profits and losses equally.A partnership agreement shall not stipulate for the distribution of all profits to part of the partners or for the sharing of all
losses among part of the partners.
Article 33 During the period in which the partnership enterprise exists, partners may, as agreed upon in the partnership agreement or by decision
of all the partners, increase their capital contributions to the partnership enterprise for the purpose of expanding the business
scale or making up losses.
Article 34 The annual or periodic plan detailed for profit distribution and loss sharing in a partnership enterprise shall be decided through
consultation of all the partners or as agreed upon in the partnership agreement.
Article 35 Managerial executives appointed by a partnership enterprise shall perform their duties within the scope of power authorized by the
partnership enterprise.Managerial executives appointed by a partnership enterprise who exceed the scope of power authorized by the partnership enterprise
in engaging in business activities, or cause losses to the enterprise intentionally or through gross negligence shall bear the liability
for compensation according to law.
Article 36 Partnership enterprises shall establish their enterprise financial and accounting systems in accordance with the provisions of laws
and administrative regulations.
Article 37 Partnership enterprises shall perform the duty of paying taxes according to the laws.Chapter V Relations of Partnership Enterprises to Third PartiesArticle 38 No restrictions imposed by a partnership enterprise on rights of a partner to execute the enterprise’s affairs and externally represent
the enterprise may act against a third party who has acted in good faith and has not been informed of the case.
Article 39 A partnership enterprise shall pay off its debts first out of all its property. If the property of the partnership enterprise is insufficient
to pay off its due debts, each partner shall bear the unlimited and joint liability for paying off debts.
Article 40 Where a partnership enterprise pays its debts out of its property and the debts cannot be paid off in full, each partner shall repay
the difference with his property other than his capital contributions to the partnership enterprise in proportion as stipulated in
the first paragraph of Article 32 of this Law.Any partner who overpays his share of the debts to bear the joint liability shall have the right to claim compensation from the other
partners.
Article 41 A creditor of one partner of a partnership enterprise shall not set off the creditor’s rights against his debts owed to the partnership
enterprise.
Article 42 Where a partner owes personal debts, his creditor shall not take his place in the partnership enterprise to exercise the partner’s
rights.
Article 43 Where a partner’s own property is not sufficient to pay off his personal debts, the partner may pay the debts out of his proceeds
shared in the partnership enterprise. Alternately, the creditor may apply to a people’s court for compulsory execution of the property
shares of the partner in the partnership enterprise to pay off the debts.The other partners shall have priority in acquiring the property shares of the partner.
Chapter VI Entering into and Withdrawing from PartnershipsArticle 44 A person intending to enter into partnership shall obtain the consent of all original partners and shall conclude a written entering
agreement according to law.In concluding the entering agreement, the original partners shall inform the new partner of the business operations and financial
condition of the partnership enterprise.
Article 45 A partner newly entering into the partnership shall enjoy the equal rights and undertake equal liabilities with the original partners.
If, however, otherwise stipulated in the entering agreement, such stipulations shall prevail.The new partner shall undertake joint liability for the debts of the partnership enterprise incurred before he enters into the partnership.
Article 46 Where the partnership agreement stipulates the period of operation of the partnership enterprise, partners may withdraw from the partnership
under any of the following circumstances:
(1)Facts resulting in withdrawal from partnership as agreed upon in the partnership agreement occur;(2)The withdrawal from partnership has been approved by all the partners;(3)Facts resulting in difficulties for partners to continue participation in the partnership enterprise occur; or(4)The other partners have seriously broken the duties as agreed upon in the partnership agreement.Article 47 Where the partnership agreement does not stipulate the period of operation of the partnership enterprise, partners may withdraw from
partnership without adversely affecting the execution of affairs in the partnership enterprise and shall inform the other partners
30 days before.
Article 48 A partner unilaterally withdrawing from partnership in violation of the provisions of the two preceding articles shall compensate
for losses caused to the other partners.
Article 49 A partner shall naturally withdraw from a partnership under any of the following circumstances:(1)Where he dies or is declared dead according to law;(2)Where he is declared a person having no capacity for civil conduct;(3)Where he loses personal capacity for paying debts; or(4)Where all his property shares in the partnership enterprise have been executed by a people’s court.The withdrawal from partnership as stipulated in the preceding paragraph shall take effect on the date the fact occurs.Article 50 A partner may be removed by decision of the other partners through agreement under any of the following circumstances:(1)Where he fails to perform the obligation of capital contributions;(2)Where he intentionally or through gross negligence causes losses to the partnership enterprise;(3)Where he acts improperly in executing the affairs of the partnership enterprise; or(4)Where other facts occur as agreed upon in the partnership agreement.A decision on removal of a partner shall be notified in writing to the removed person. The removal shall take effect in the result
of the withdrawal of the removed person on the date when he receives the notice.The removed person may, within 30 days from the date receiving the notice of removal, bring a lawsuit to a people’s court if he refuses
to accept the decision on his removal.
Article 51 Where a partner dies or is declared dead according to law, his successor who is legally enpost_titled to the property shares in the partnership
enterprise shall, as agreed upon in the partnership agreement or with the consent of all the partners, have the status of the partner
as of the date the succession begins.If the legal successor is unwilling to be a partner, the partnership enterprise shall return the property shares he inherits according
to law.If the legal successor is a minor, his guardian may, with the consent of the other partners, exercise rights on his behalf till the
minor comes of age.
Article 52 Where a partner withdraws from partnership, the other partners shall clear accounts with him under the financial condition of the
partner enterprise at the time of his withdrawal and shall return his property shares.In the case of unsettled affairs in a partnership enterprise at the time of a withdrawal from the partnership, the clearance of accounts
shall be carried out upon settlement of such affairs.
Article 53 The method for returning property shares in the partnership enterprise to a withdrawing partner shall be stipulated in the partnership
agreement or decided by all the partners. The shares may be returned to the withdrawing partner in currency or in kind.
Article 54 A withdrawing partner shall bear liability jointly with the other partners for debts of the partnership enterprise incurred before
his withdrawal from partnership.
Article 55 Where property of a partnership enterprise is less than its debts at the time of a partner’s withdrawal, the partner shall share the
losses according to the provisions of the first paragraph of Article 32 in this Law.
Article 56 Where the registered items of a partnership enterprise change, or need to be renewed, due to entering into or withdrawal from partnership,
a revision of the partnership agreement or for other reasons, the partnership enterprise shall, within 15 days from the date of making
the decision on changes or the facts occur, apply to the enterprise registration authority for such registration.
Chapter VII Disbandment and Liquidation of Partnership EnterprisesArticle 57 A partnership enterprise shall be disbanded under any of the following circumstances:(1)The period of operation as agreed upon in the partnership agreement expires and partners are unwilling to continue the operations;(2)The facts resulting in the disbandment as agreed upon in the partnership agreement occur;(3)The disbandment has been decided upon by all the partners;(4)Partners have not formed the statutory number;(5)The purpose of partnership has been achieved or cannot be achieved as agreed upon in the partnership agreement;(6)The business licence has been revoked according to law; or(7)Other reasons stipulated in laws and administrative regulations for the disbandment of the partnership enterprise arise.Article 58 A partnership enterprise shall be liquidated after being disbanded and shall notify its creditors by notice or announcement.Article 59 The liquidators of a partnership enterprise after its disbandment shall be composed of all the partners. If the partners are not all
eligible, one or more partners or a third party may, with the consent of over half of all the partners and within 15 days after the
disbandment of the enterprise, be appointed as the liquidator(s).In case of failure to appoint the liquidators within 15 days, partners or other interested persons may apply to a people’s court for
the appointment of liquidators.
Article 60 Liquidators shall execute the following affairs during liquidation:(1)checking up on the property of the partnership enterprise, and separately formulating a balance sheet and a detailed inventory of
property;
(2)disposing of the unsettled affairs relevant to the liquidation of the partnership enterprise;(3)paying off taxes owed by the enterprise;(4)clearing up claims and debts;(5)disposing of, after paying off the debts of the partnership enterprise, its remaining property; and(6)participating in civil lawsuits on behalf of the partnership enterprise.Article 61 The property of a partnership enterprise shall, after the payment of liquidation expenses, be applied to make repayment in the following
order:
(1)wages of employees and labour

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...