2003

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE HANDLING OF THE LAWS PREVIOUSLY IN FORCE IN HONG KONG IN ACCORDANCE WITH ARTICLE 160 OF THE BASIC LAW OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA

Decision of the Standing Committee of the National People’s Congress Concerning the Handling of the Laws Previously in Force in Hong
Kong in Accordance with Article 160 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China

(Adopted at the 24th Meeting of the Standing Committee of the National People’s Congress on February 23, 1997) 

It is provided in Article 160 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China (hereinafter
referred to as the Basic Law for short) that “Upon the establishment of the Hong Kong Special Administrative Region, the laws previously
in force in Hong Kong shall be adopted as laws of the Region except for those which the Standing Committee of the National People’s
Congress declares to be in contravention of this Law. If any laws are later discovered to be in contravention of this Law, they shall
be amended or cease to have force in accordance with the procedure as prescribed by this Law.” Article 8 of the Basic Law stipulates:
“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 or are subject to any amendment by the legislature of the Hong
Kong Special Administrative Region.” In accordance with the provisions mentioned above, the Standing Committee of the Eighth National
People’s Congress at its 24th Meeting deliberated the proposal of the Preparatory Committee for the Hong Kong Special Administrative
Region on handling the laws previously in force in Hong Kong and adopted the decision as follows: 

1. The laws previously in force in Hong Kong, including the common law, rules of equity, ordinances, subordinate legislation and
customary law, shall be adopted as laws of the Hong Kong Special Administrative Region, except for any that contravene the Basic
Law. 

2. The ordinances and subordinate legislation previously in force in Hong Kong, listed in Appendix I of this Decision, which are
in contravention of the Basic Law shall not be adopted as laws of the Hong Kong Special Administrative Region. 

3. Since some provisions of the ordinances and subordinate legislation, which are previously in force in Hong Kong and listed in
Appendix II of this Decision, contravene the Basic Law, they shall not be adopted as provisions of laws of the Hong Kong Special
Administrative Region. 

4. The laws previously in force in Hong Kong, which have been adopted as laws of the Hong Kong Special Administrative Region, shall
be applied as of July 1, 1997 with such modifications, adaptations restrictions and exceptions as may be necessary for making them
conform with the status of Hong Kong after the People’s Republic of China resumes the exercise of sovereignty over it and with the
relevant provisions of the Basic Law, for example, the New Territories Land (Exemption) Ordinance shall be applied in accordance
with the principle mentioned above. 

In addition to the above-mentioned principle, the following provisions shall be conformed with when applying the provisions of the
ordinances and subordinate legislation previously in force: 

(1) Where the provisions relating to the diplomatic affairs of the Hong Kong Special Administrative Region are found inconsistent
with the national laws coming into effect in the Hong Kong Special Administrative Region, the national laws shall prevail, and the
provisions shall be made in keeping with the international rights enjoyed by the Central People’s Government and the international
obligations it undertakes. 

(2) No provisions which accord privileges to the United Kingdom or any other countries or regions of the British Commonwealth shall
be maintained with the exception of the reciprocity provisions in connection with Hong Kong and the United Kingdom or any other countries
or regions of the British Commonwealth. 

(3) The provisions regarding the rights, immunities and obligations of the British troops stationed in Hong Kong shall be maintained
provided that they do not contravene the provisions of the Basic Law and the Law of the People’s Republic of China on Garrisoning
the Hong Kong Special Administrative Region and shall be applicable to the troops stationed in Hong Kong by the Central People’s
Government of the People’s Republic of China. 

(4) The provision that the English language is superior to the Chinese language in terms of legal effect shall be construed as that
both the Chinese and English language are the official languages. 

(5) If the provisions in the British laws that are quoted in Hong Kong ordinances and subordinate legislation do not jeopardize the
sovereignty of the People’s Republic of China or contravene the provisions of the Basic Law, they may, as a transitional arrangement,
continue to be applied mutatis mutandis before they are amended by the Hong Kong Special Administrative Region. 

5. On condition that the provisions in Article 4 are conformed with, the substitution rules prescribed in Appendix III of this Decision
shall be followed when interpreting or applying the words and expressions in the laws previously in force in Hong Kong which are
adopted as laws of the Hong Kong Special Administrative Region, except that they mean otherwise. 

6. If the laws previously in force in Hong Kong which are adopted as laws of the Hong Kong Special Administrative Region are later
discovered to be in contravention of the Basic Law, they may be amended or cease to have force in accordance with the procedure as
prescribed by the Basic Law. 

Appendix I 

The following ordinances and subordinate legislation in the laws previously in force in Hong Kong are in contravention of the Basic
Law and therefore shall not be adopted as laws of the Hong Kong Special Administrative Region: 

1. Trustees(Hong Kong Government Securities)Ordinance (Cap.77); 

2. Application of English Law Ordinance (Cap.88); 

3. Foreign Marriage Ordinance (Cap.180); 

4. Chinese Extradition Ordinance (Cap. 235); 

5. Colony Armorial Bearings (Protection) Ordinance (Cap. 315); 

6. Secretary of State for Defence (Succession to Property) Ordinance (Cap. 193); 

7. Royal Hong Kong Regiment Ordinance (Cap.199); 

8. Compulsory Service Ordinance (Cap. 246); 

9. Army and Royal Air Force Legal Services Ordinance (Cap. 286); 

10. British Nationality (Miscellaneous Provisions) Ordinance (Cap. 186); 

11. British Nationality Act 1981 (Consequential Amendments) Ordinance (Cap. 373); 

12. Electoral Provisions Ordinance (Cap. 367); 

13. Legislative Council (Electoral Provisions) Ordinance (Cap. 381); and 

14. Boundary and Election Commission Ordinance (Cap. 432). 

Appendix II 

Some provisions of the following ordinances and subordinate legislation in the laws previously in force in Hong Kong are in contravention
of the Basic Law and therefore shall not be adopted as provisions of laws of the Hong Kong Special Administrative Region: 

1. The provisions regarding the definition of “Hong Kong permanent resident” in s2 and the provisions regarding “the Hong Kong permanent
resident” in Schedule 1 of the Immigration Ordinance (Cap. 115); 

2. Any provisions made for implementing the British Nationality Act applicable in Hong Kong; 

3. Provisions for election in the Urban Council Ordinance (Cap. 101); 

4. Provisions for election in the Regional Council Ordinance (Cap. 385); 

5. Provisions for election in the District Boards Ordinance (Cap. 366); 

6. Subsidiary legislation A: “Urban Council, Regional Council and District Boards Election Expenses Order” and subsidiary legislation
C: “Resolution of the Legislative Council” in the Corrupt and Illegal Practices Ordinance (Cap. 288); 

7. The provisions in s2(3) regarding the purpose of this ordinance for the purpose of its interpretation and application, in s3 regarding
the effect on pre-existing legislation and in s4 regarding interpretation of subsequent legislation in the Hong Kong Bill of Rights
Ordinance (Cap. 383); 

8. The provisions in s3 (2) that the ordinance acquires an overriding position in the Personal Data (Privacy) Ordinance (Cap. 486); 

9. Major amendments to the Societies Ordinance (Cap. 151) made since July 17, 1992; and 

10. Major amendments to the Public Ordinance (Cap. 245) made since July 27, 1995. 

Appendix III 

The words and expressions in the laws previously in force in Hong Kong which are adopted as laws of the Hong Kong Special Administrative
Region, when construed or applied, shall be subject to the following substitution rules: 

1. Any reference to “Her Majesty”, “Crown”, “The British Government, U.K.” and “Secretary of State” and other similar names or expressions,
if the provision relates to the ownership of the land in Hong Kong or involves the affairs within the responsibilities of the Central
Authorities and relationship between the Central Authorities and the Region as prescribed by the Basic Law, shall be construed correspondingly
as a reference to the Central Authorities or other competent organs, and under other circumstances, as the Government of the Hong
Kong Special Administrative Region; 

2. Any reference to “Her Majesty in Council” or “Privy Council”, if the provision relates to the matter of right of appeal, shall
be contrued as a reference to the Court of Final Appeal of the Hong Kong Special Administrative Region, and under other circumstances,
shall be dealt with in accordance with Item 1; 

3. Any reference to the government organs or semi-official organs with the word “Royal” in their names shall be construed as reference
to the corresponding organs of the Hong Kong Special Administrative Region with the word “Royal” being deleted; 

4. Any reference to “the colony” shall be construed as a reference to the Hong Kong Special Administrative Rein; any description
of the territory of Hong Kong shall be applicable after being correspondingly interpreted in accordance with the administrative division
map of the Hong Kong Special Administrative region promulgated by the State Council; 

5. Any reference to “the Supreme Court” and “High Court” shall be correspondingly construed as a reference to the High Court and
the Court of First Instance of the High Court; 

6. Any reference to “the Governor”, “Governor in Council’, “Chief Secretary”, “Attorney General”, “Chief Justice”, “Secretary for
Home Affairs”, “Secretary for Constitutional Affairs”, “Commissioner of Customs and Excise”, and “justices” shall be correspondingly
construed as a reference to the Chief Executive, Chief Executive in Council, Secretary of the Department of Administration, Secretary
of the Department of Justice, Chief Justice of the Court of Final Appeal or Chief Judge of High Court, Secretary for Home Affairs,
Secretary for Constitutional Affairs, Commissioner of Customs and Excise, and judges of the High Court of the Hong Kong Special Administrative
Region; 

7. Any reference to the Legislative Council, Judiciary or the Executive Authorities and their staff in the Chinese text of the laws
previously in force in Hong Kong shall be construed or applied correspondingly in accordance with the relevant provisions of the
Basic Law; 

8. Any reference to “the People’s Republic of China” and “China” or other similar names or expressions shall be construed as a reference
to the People’s Republic of China including Taiwan, Hong Kong and Macao; any reference to the Mainland, Taiwan, Hong Kong and Macao,
separately or together, shall be correspondingly construed as a reference to a component part of the People’s Republic of China; 

9. Any reference to “foreign country or foreign State” and other similar words or expressions shall be construed as a reference to
any country or region other than the People’s Republic of China or, in accordance with the contents of the law or the provision,
shall be construed as a reference to “any place other than the Hong Kong Special Administrative Region”; and any reference to “foreign
national” or other similar words or expressions shall be construed as a reference to any person other than the citizen of the People’s
Republic of China; and 

10. Any reference to “Nothing in this ordinance shall affect or be deemed to affect the rights of Her Majesty the Queen, Her Heirs
or Successors” shall be construed as a reference to “Nothing in this ordinance shall affect or be deemed to affect the rights enjoyed
by the Central Government or the Government of the Hong Kong Special Administrative Region in accordance with the provisions of the
Basic Law and other enactments.” 

Appendix: 

Proposal of the Preparatory Committee for the Hong Kong Special Administrative Region Under the National People’s Congress Concerning
the Laws Previously in Force in Hong Kong 

(Adopted at the Eighth Plenary Meeting of the Preparatory Committee for the Hong Kong Special Administrative Region Under the National
People’s Congress on February 1, 1997) 

 

The Standing Committee of the National People’s Congress: 

In accordance with the provisions of Article 8 and paragraph 1 of Article 160 of the Basic Law of the Hong Kong Special Administrative
Region of the People’s Republic of China(hereinafter referred as “the Basic Law” for short), the Preparatory Committee for the Hong
Kong Special Administrative Region Under the National People’s Congress studied various provisions in the laws previously in force
in Hong Kong that contravene the Basic Law. In order to ensure that the laws previously in force in Hong Kong are adopted as laws
of the Hong Kong Special Administrative Region on the premise that they conform to the Basic Law, the Preparatory Committee puts
forward a proposal as follows: 

1. The laws previously in force in Hong Kong, including the common law, rules of equity, ordinances, subordinate legislation and
customary law, shall be adopted as laws of the Hong Kong Special Administrative Region, except for any that contravene the Basic
Law. 

2. The ordinances, subordinate legislation and some provisions previously in force in Hong Kong, listed in Appendix I and Appendix
II to this Proposal, which contravene the Basic Law, shall not be adopted as laws of the Hong Kong Special Administrative Region. 

3. The laws previously in force in Hong Kong, that are adopted as laws of the Hong Kong Special Administrative Region shall be applied
as of July 1, 1997 with such modifications, adaptations, restrictions and exceptions as are essential for making them conform with
the status of Hong Kong after the People’s Republic of China resumes the exercise of sovereignty over it and with the relevant provisions
of the Basic Law, for example, the New Territories Land (Exemption) Ordinance shall be applied in accordance with the principle mentioned
above. 

In addition to the principle mentioned above, the following shall be conformed with when applying the ordinances and subordinate
legislation previously in force: 

(1) Where the provisions of laws relating to the foreign affairs of the Hong Kong Special Administrative Region are inconsistent
with the national laws that are applied in the Hong Kong Special Administrative Region, the national laws shall prevail, and the
provisions shall be made in keeping with the international rights enjoyed by the Central People’s Government and the international
obligations it undertakes. 

(2) No provisions which accord privileges to the United Kingdom or any other countries or regions of the British Commonwealth shall
be maintained, with the exception of the provisions of reciprocity between Hong Kong and the United Kingdom or any other countries
or regions of the British Commonwealth. 

(3) The provisions regarding the rights, immunities and obligations of the British troops stationed in Hong Kong shall be maintained
provided that they do not contravene the provisions of the Basic Law and the Law of the People’s Republic of China on Garrisoning
the Hong Kong Special Administrative Region and shall be applicable to the troops stationed in the Hong Kong Special Administrative
Region by the Central People’s Government of the People’s Republic of China. 

(4) The provision that the English language is superior to the Chinese language in terms of legal effect shall be construed as that
both the Chinese and the English language are the official languages. 

(5) Any of the provisions in the British laws that are in force before July 1, 1997 and quoted in the ordinances and subordinate
legislation may, as a transitional arrangement, continue to be applied mutatis mutandis before it is amended by the Hong Kong Special
Administrative Region, provided that it does not jeopardize the sovereignty of the People’s Republic of China or contravene the provisions
of the Basic Law. 

4. On condition that the provisions in Article 3 are conformed with, the substitution rules prescribed in Appendix III to this Proposal
shall be followed when interpreting or applying the words and expressions in the laws previously in force in Hong Kong that are adopted
as laws of the Hong Kong Special Administrative Region, unless they mean otherwise. 

5. If the laws previously in force in Hong Kong that are adopted as laws of the Hong Kong Special Administrative Region are later
discovered to be in contravention of the Basic Law, they shall be amended or cease to have force in accordance with the procedure
as prescribed by the Basic Law. 

The proposal mentioned above is hereby submitted to the Standing Committee of the National People’s Congress for examination.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.







CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION FOR TRANSMITTING THE URGENT CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING IMMEDIATE TERMINATION OF UNAUTHORIZED LOCAL EXAMINATION AND APPROVAL OF COMMERCIAL ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation for Transmitting the Urgent Circular of the General Office of the
State Council Concerning Immediate Termination of Unauthorized Local Examination and Approval of Commercial Enterprises with Foreign
Investment

WaiJingMaoZiFa [1997] No. 290

May 13, 1997

Commissions (departments, bureaus) of foreign trade and economic cooperation in all provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan, Foreign Investment Commissions of Heilongjiang
Province, Shanghai and Xiamen, and Shenzhen Foreign Investment Office:

Since the decision of the State Council in July 1992 to set up Chinese-foreign equity joint ventures and Chinese-foreign contractual
commercial retailers on a pilot basis, the work has been progressing smoothly and has exerted positive effects on the reform and
development of Chinese commercial enterprises. However, some local governments, disregarding the provisions of the State Council,
approved and opened some commercial enterprises with foreign investment without authorization, which resulted in disorderly administration
on the examination and approval of commercial projects with foreign investment, disoriented development and mode of cooperation inconsistent
with the state policies, etc. And it further brought confusion to and negative impact on the pilot work of foreign capital utilization
in the commercial sector. As agreed upon by the State Council, to safeguard the uniformity and solemnity of the state policies and
to ensure further and sounder development of the pilot work in Chinese commercial sector in an orderly manner, the Urgent Circular
of the General Office of the State Council Concerning Immediate Termination of Unauthorized Local Examination and Approval of Commercial
Enterprises with Foreign Investment is hereby transmitted to you for full implementation.



 
The Ministry of Foreign Trade and Economic Cooperation
1997-05-13

 







CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON INTERIM MEASURES FOR SUPERVISION AND CONTROL OF VERIFICATION AND CANCELLATION OF TRADE IMPORT EXCHANGE PAYMENTS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Interim Measures for Supervision and Control of Verification and Cancellation
of Trade Import Exchange Payments

HuiGuoFaZi [1997] No.1

January 17, 1997

Article 1

These Measures are formulated in accordance with the provisions of the Regulations of the People’s Republic of China on Foreign Exchange
Control for the purposes of improving the supervision and administration of the verification and cancellation of trade import exchange
payments.

Article 2

When making overseas payments for goods, advance payments or back payments related to the import of goods (hereinafter referred to
as import exchange payments) by means of purchasing foreign exchange through a bank or making payments form a spot exchange account,
enterprises(including foreign investment enterprises) and institutions which operate import business with the approval of the Ministry
of Foreign Trade and Economic Cooperation or a unit authorized by it (hereinafter referred to as the importing units) shall undertake
the procedures for verification and cancellation in accordance with these Measures.

Article 3

A “Voucher for Verification and Cancellation of Trade Import Exchange Payments”(in place of a declaration voucher) (hereinafter referred
to as a verification and cancellation voucher) refers to a voucher formulated by the State Administration of Foreign Exchange, filled
out by the importing unit, examined and verified by a designated foreign exchange bank and on the strength of which such bank makes
import exchange payments.

On the strength of one verification and cancellation voucher the import exchange payments may be made just for one time.

Article 4

The State Administration of Foreign Exchange and its branch bureaus (hereinafter referred to as foreign exchange bureaus) shall be
responsible for the verification, cancellation, examination and administration of all import exchange payments, and shall conduct
supervision and inspection of importing units and designated foreign exchange banks. A designated foreign exchange bank shall submit
the verification and cancellation vouchers and relevant statements to the foreign exchange bureau at the place where it is located,
an importing unit making overseas foreign exchange payments shall undertake the procedures for the approval of import foreign exchange
payments verification and cancellation with the foreign exchange bureau at the place where it is located.

Article 5

For import exchange payments where payment of foreign exchange is required on delivery of goods, when the designated foreign exchange
bank makes import foreign exchange payments on the strength of original import goods declaration voucher(copy exclusively for foreign
exchange payment verification and cancellation, the same hereinafter), the procedures for verification and cancellation shall be
regarded as being gone through at the same time; for import foreign exchange payments under other methods of settlement, the importing
unit shall, on the strength of the verification and cancellation voucher, record form, original import goods declaration voucher(for
import foreign exchange payments under entrepot trade arrangements, the foreign exchange conversion memo for the entrepot income
shall be presented), directly undertake the procedures for the approval of import foreign exchange payments verification and cancellation
with the foreign exchange bureau.

Article 6

An importing unit shall, on the strength of the approval document of the Ministry (commission or office) of Foreign Trade and Economic
Cooperation, the business license issued by the department for industry and commerce and the enterprise coda certificate issued by
the technological supervision department, have itself entered onto the Register of Importing Units Making Overseas Foreign Exchange
Payments with the foreign exchange bureau at the place where it is located. Importing units which are not on the Register may not
directly make import foreign exchange payments with the designated foreign exchange bank.

Article 7

The foreign exchange bureau is to promptly publish, update and adjust the register for the designated foreign exchange bank. The foreign
exchange bureaus of the provinces, autonomous regions, municipalities directly under the Central Government, municipalities separately
listed on the State plan and special economic zones may, depending on the actual local situations, centrally publish the Register
of Importing Units Making Overseas Foreign Exchange Payments or have it published by their subordinate branch bureaus for their respective
regions.

Article 8

The foreign exchange bureau has the right to issue at any time to the designated foreign exchange bank a Name List of Importing Units
Examined and Verified for Authenticity by the Foreign Exchange Bureau based on the cancellation and verification circumstances of
an importing unit. The minimum period during which an importing unit shall be subject to examination and verification of authenticity
will be six months.

Article 9

For the following import exchange payments, before exchange payment or before an import letter of credit is issued, an application
shall be made by the importing unit in respect of each sum to the foreign exchange bureau at the place where it is located and procedures
for Import Exchange Payment Record Form (hereinafter referred to as the record form) shall be gone through; the designated foreign
exchange bank shall undergo the import exchange payment procedures for it in accordance with provisions on the basis of the record
form:

(1)

where the importing unit is not on the Register of Importing Units Making Overseas Foreign Exchange Payments;

(2)

where the importing unit is listed onto the Name List of Importing Units Examined and Verified for Authenticity by the Foreign Exchange
Bureau;

(3)

where it is impossible to declare delivery of goods to Customs within 90 days (excluding the 90 days) after exchange payment;

(4)

where the importing unit handles an exchange payment within a designated foreign exchange bank other than one in the city or county
under the jurisdiction of the foreign exchange bureau at the place where it is located.

Article 10

When handling an exchange payment, an importing unit shall truthfully fill in the verification and cancellation voucher (three copies
for each voucher) in accordance with provisions; in case of payment of foreign exchange on delivery, the serial number of the relevant
Customs Declaration For Import Goods and the amount of the currency type declared shall also be filled in. The verification and cancellation
voucher, together with other exchange payment documents, shall be submitted to the designated foreign exchange bank for examination
and verification.

Article 11

After undergoing foreign exchange payment procedures, the designated foreign exchange bank shall classify the first copy of the verification
and cancellation voucher in term of payment of foreign exchange on delivery and other methods of settlement, bind them together respectively
and submit them on a weekly basis to the foreign exchange bureau at the place where the importing unit is located; the second copy
shall be returned to the importing unit, and the third copy, together with other exchange payment documents, shall be kept for five
years for reference.

Article 12

For exchange payment on the strength of the record from, the designated foreign exchange bank shall keep the first copy of the record
form and the third copy of the verification and cancellation voucher together for reference, return the second copy of the record
form and the second copy of the certification and cancellation voucher to the importing unit for safekeeping, and submit the third
copy of the record form and the first copy of the verification and cancellation voucher to the foreign exchange bureau at the place
where the bank is located.

Article 13

An importing unit shall, on a monthly basis, submit the verification and cancellation form as well as the attached verification and
cancellation documents to the foreign exchange bureau for examination, and undergo the procedures for examination of verification
and cancellation with the foreign exchange bureau within one month after declaration of the relevant goods imported.

When undergoing the procedures for examination of verification and cancellation, for the goods which have been delivered, the importing
unit shall attach the original import goods Customs declaration form and other verification and cancellation documents to the back
of the appropriate verification and cancellation vouchers (in case of an exchange payment on the strength of the record form, the
record from shall also be attached to the back of the relevant verification and cancellation vouchers), and shall truthfully complete
the Trade Import Exchange Payment Delivered Goods Verification and Cancellation Form; for goods which have not been delivered, the
Trade Import Exchange Payment Non-delivered Goods Verification and Cancellation Form shall be completed.

Article 14

After examining the verification and cancellation form and documents attached thereto submitted by the importing unit, the foreign
exchange bureau shall affix a “declared and examined” stamp onto the verification and cancellation form and each page of the declaration
forms attached thereto, keep the first copy of the verification and cancellation form, and return the second Copy and the documents
attached thereto to the importing unit.

The importing unit shall have the verification and cancellation form and the documents attached thereto kept for reference for 5 years.

Article 15

The designated foreign exchange bank shall submit the Trade Import Exchange Payment Monthly Statistical Report to the foreign exchange
bureau prior to the fifth of every month.

Article 16

The foreign exchange bureau shall, in a way of total sum or individual sum, cross-verify and check the verification and cancellation
vouchers submitted by the designated foreign exchange bank and the importing unit, verify and check the verification and cancellation
form and the documents attached thereto submitted by the importing unit in light of the verification and cancellation voucher submitted
by the designated foreign exchange bank, and verify and check the importing unit’s and bank’s situations of exchange payments and
of verification and cancellation in light of the record form.

Article 17

The foreign exchange bureau shall undertake random checks of an importing unit and a designated foreign exchange bank according to
the situations of verification and checks; for any doubtful documents, importing units or designated foreign exchange banks, key
verification and checks shall be undertaken, and “second verification” shall be conducted, in accordance with relevant provisions
and at any time, with the Customs at the place where the declaration form is issued. Under payment of foreign exchange on delivery,
for an exchange payment on the strength of import goods Customs declaration form, the “second verification” of the import goods Customs
declaration form shall be still conducted by the designated foreign exchange bank.

Article 18

An importing unit which commits the following acts shall make an explanation to the foreign exchange bureau within five working days
after receiving a notice. Where no explanation has been made by the expiration of the time limit or where there are no justified
reasons, the foreign exchange bureau shall, in accordance with the provisions of Article 8 of these Measures, enter the importing
unit onto the Name List of Importing Units Examined and Verified for Authenticity by Foreign Exchange Bureau:

(1)

to submit for examination a false, forged, altered or reused customs declaration form for import goods (verification and cancellation
copy) or other documents to a foreign exchange bureau or a designated foreign exchange bank;

(2)

to fail to provide a valid customs declaration form for import goods or other evidence of delivery of goods on time after exchange
payment;

(3)

without a record form in the situation where a record form shall be presented;

(4)

to fail to submit, to falsely submit or in another manner not in accordance with provisions, to submit a verification and cancellation
form and documents attached thereto to the foreign exchange bureau or to lose relevant documents;

(5)

to violate other provisions of these Measures.

Article 19

For a designated foreign exchange bank or an importing unit which is in violation of these Measures, the foreign exchange bureau shall
impose penalties upon it in accordance with the provisions of the Regulations of the People’s Republic of China on Foreign Exchange
Control.

Article 20

The branches of the foreign exchange bureaus shall submit the Trade Import Exchange Payment Verification and Examination Form to the
State Administration of Foreign Exchange prior to 10th of every month.

Article 21

The State Administration of Foreign Exchange shall be responsible for the interpretation of these Measures.

Article 22

These Measures shall enter into force as of March 1, 1997. The Interim Measures for Administration of Verification and Cancellation
of Import Foreign Exchange Payment promulgated on July 31, 1996 shall be nullified at the same time.

Attachment omited



 
The State Administration of Foreign Exchange
1997-01-17

 







OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON WITHDRAWING THE RESERVE OF BAD DEBTS OF THE ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES WITH THE UNDERTAKING OF CREDIT AND LEASING BY

The State Administration of Taxation

Official Reply of the State Administration of Taxation on Withdrawing the Reserve of Bad Debts of the Enterprises with Foreign Investment
and Foreign Enterprises with the Undertaking of Credit and Leasing by

GuoShuiHan [1997] No.388

July 4, 1997

The Request for Instruction on Withdrawing the Reserve of Bad Debts for the Enterprises with the Undertaking of Credit and Leasing
when in the Red (HuShuiWai [1997] No.51) has been received and learned.

The opinion in regards is that the enterprises with the undertaking of credit and leasing can be allowed to withdraw the reserve of
bad debts for the purpose of balance of the loss of bad debts before taxation during its operation. Therefore, the enterprises can
withdraw the reserve of the bad debts whether in red or not with regards to the relevant provisions in the article 25 of the Rules
for the Implement of the Income Tax Law on Enterprises with Foreign Investment and Foreign Enterprises and the Circular of the State
Administration of Taxation on some Issues Concerning Business Dealing of Income Tax Law on the Enterprises with Foreign Invstment
and Foreign Enterprises (GuoShuiFa [1991] No.165).



 
The State Administration of Taxation
1997-07-04

 







CIRCULAR OF THE STATE COUNCIL CONCERNING THE STRENGTHENING AND IMPROVEMENT OF THE WORK RELATED TO CULTURAL RELICS

Category  CULTURE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-03-30 Effective Date  1997-03-30  


Circular of the State Council Concerning the Strengthening and Improvement of the Work Related to Cultural Relics



(March 30, 1997)

    Ours is a country with a long history, splendid culture and ancient
civilization and has an extremely rich historical and cultural heritage.
It is our unshirkable responsibility and obligation to protect and make
good use
of the rare and precious cultural relics of the motherland.
At present, under the conditions of developing the socialist market
economy, the work related to cultural relics faces many new situations
and new problems, among them the more outstanding ones are as follows:
there has been an increase in law-breaking cases by legal entities
causing losses of cultural relics; repeated occurences of such criminal
activities as pirate excavations of ancient burial sites, robbery and
pilferage from collections of cultural relics in museums and art galleries
and smuggling of cultural relics and illegal transactions of cultural relics
despite prohibitions; no due importance and support have been given to the
work of protection of cultural relics in a number of localities which has
adversely affected the normal development of the undertakings of cultural
relics. Therefore, the spirit of the Sixth Plenary Session of the Fourteenth
Central Committee of the Communist Party of China must be taken as the
guidance, the policy of “putting protection and rescue first”
must continue to be adhered to, the principle of “effective protection,
rational utilization and enhanced control” shall be implemented, the
relations between the protection of cultural relics and economic construction
and the relations between social benefits and economic benefits in the
development of the undertakings of cultural relics should be handled
correctly, and the structure for the protection of cultural relics
commesurate with the socialist market economic system should be built.
The related questions are hereby notified as follows:

    I.Building the Structure for the Protection of Cultural Relics
Commesurate with the Socialist Market Economic System

    Efforts should be made to the building of the structure for the
protection of cultural relics commesurate with the requirements of the
socialist market economic system, observing the inherent laws of the
work related to cultural relics, and putting state protection first and
mobilizing the whole society to participate. All localities and departments
concerned should integrate the protection of cultural relics into local
socio-economic development plans, urban and rural construction plans,
financial budgets, structural reform and the leadership responsibility
system at all levels. There should be an increase year by year in
expenditures for the protection of cultural relics in the financial
budgets and in the meantime corresponding policy incentives should be
worked out to guide and extensively draw the departments concerned,
enterprises and institutions as well as individuals into undertakings for
the protection of cultural relics.

    The department of administration of cultural relics of the State should
step up the macro control over the work related to cultural relics throughout
the country, work out a sound overall plan for the development of the
undertakings of cultural relics nationwide, supplement and perfect the
existing laws and regulations in the light of the work requirements and
build step by step a sound legal system for the protection of cultural
relics in China. People’s Governments at all levels must perfect the
rules for the administration of the protection of cultural relics in
areas under their respective jurisdiction and build up the strength of the departments of administration of cultural relics. The
functional
departments concerned should further clearly define their respective
responsibilities, coordinate with one another and jointly do a good
job of the protection of cultural relics under the unified leadership
of the government.

    The masses should be motivated and organized to participate in the
work of the protection of cultural relics and mass organizations for the
protection of cultural relics set up in accordance with actual requirements
and responsibilities and rights should be clearly defined so as to effect
a change in the situation under which many cultural relics have been in
an actual state of no protection.

    II.Correct Handling of Relations between the Protection of Cultural
Relics and Economic Construction as well as the Practical Interests of the
Masses and Ernestly Doing a Good Job in the Rescue and Protection of Cultural Relics

    Local People’s Governments at all levels and the departments concerned
should, in accordance with the principle of being conducive to both the
protection of cultural relics, economic construction and the improvement
in the living standards of the people, satisfactorily handle a number of local contradictions between the protection of cultural
relics and economic
construction as well as the practical interests of the masses and integrate
the protection of ancient cultural sites especially the large sites into
local urban and rual construction plans and land utilization plans; full
account should be taken of the practical interests of the masses of the
localities wherein the sites are located, measures are taken to adjust
the industrial structures and change the uses of the land and efforts are
exerted to support the industries which are both instrumental to the
protection of the sites and to the improvement in the living standards of the local masses so as to fundamentally change the passive
situation in
the protection of ancient cultural sites; burden caused by the protection
of ancient sites to the production and life of the local masses should be
reduced to the extent possible and compensation should be made in suitable
ways when necessary.

    Archaeological excavations should adhere to the principle of putting
coordination with capital construction first and in particular coordinate
with large-size capital construction projects in doing a good job in
archaeological explorations, investigations and excavations. Full
consideration has to be given to the requirements for protection in
archaeological excavations for purposes of scientific research, unified
control should be stepped up with strict rules for examination and approval.
At present, no active excavations of large-size emperors’ tombs shall be
carried out as there are lack of the required conditions for the protection
of cultural relics in science, technology and other means. In the future,
record filing of capital construction projects within the areas of protection
units of cultural relics and ancient sites of cultural relics already
registered after general survey for protection and in controlled construction
belts has to seek the views of the departments of administration of cultual
relics which shall take part in the examination and approval of the
proposals of design for the protection of cultural relics such as site
selection of the construction projects; expenditures for the protection of cultural relics, archaeological investigations, explorations
and excavations
should be included in the investment budget of construction projects.
The required expenses for the explorations and excavations of underground
cultural relics due to transfer of land use rights and land development
shall be borne by the investors, and the cultural relics remaining in the
areas shall be owned by the State. Special-purpose rules and regulations
for protection and control can be formulated separately in the light of requirements with respect to such gazetted major national
protected units
of cultural relics and provincial-level protected units of cultural relics
as large-size ancient cultural sites, clusters of ancient tombs and burial
places, ancient grottoes and monastaries, clusters of ancient architecture
and comtemporary and modern memorial structures.

    Measures must be taken to step up rescue, maintenance and
protection of important ancient sites of cultural relics and rare and
precious collections of cultural relics in musuems and art galleries
on the verge of destruction. The maintenance and repair work of cultural
relics must be done well in real earnest during the “Nineth Five-year Plan”
period with overall planning, concentration of funds, guarantee for major
sites and efficiency. The control and lessening of damage to cultural relics
by natural forces should be taken up as an important subject, a number of key projects should be chosen for joint tackling, and modern
science and
technology shall be fullty utilized and traditional techniques tapped into
for the protection of cultural relics.

    Good protection of noted historical and cultural cities are the joint
responsibilities of local People’s Governments and the departments of cultural relics and urban construction planning. The departments
of urban
construction planning should fully play their part, strengthen urban planning
management, rescue and protect a number of historical neighborhoods with
traditional styles and step up the protection of ancient sites of cultural
relics especially the landmark constructions and their surrounding areas in
well-known cities in the urban construction of noted historical and
cultural cities especially in the renewal and transformation and real
estate development of the cities.

    With respect to the question of resumption of religious activities
in ancient architectures which were once sites of religious activities
in history, provisions laid down in the relevant documents of the Central
Committee of the Communist Party of China and the State Council must be
observed. Such ancient architectures as temples, monastaries and churches
presently managed by the departments of culture and cultural relics and
other non-religious departments must not install boxes for charitable
and pious deeds, collect alms and engage in religious activities, let
alone superstitious activities.

    III.Bringing into Full Play the Role of Cultural Relics in the
Service of Building of Socialist Spiritual Civilization

    The role of cultural relics in social education, historical reference
and scientific research must be brought into full play under the prerequisite
of effective protection and stepped-up management. Exploitation of cultural
relics must be subordinated to and serve the requirements of the building
of socialist spiritual civilization, persist in putting social benefits
first and strive for the realization of unification of social benefits and
economic benefits.  Environment and conditions instrumental to putting
social benefits first should be created for non-profit institutions and
units of cultural relics and museums, necessary guarantee is given in
funds and support provided in cultural and economic policies. Local People’s
Governments at all levels and in particular those People’s Governments of the localities where there are concentration of cultural
relics must guard
against the practices of seeking pure economic interests to the damage of cultural relics while exploiting the cultural relics as
a local advantage.
Major projects of exploitation of cultural relics must go through adequate
scientific authentication in advance and strict formalities of examination
and approval to avoid destructive exploitation of cultural relics.

    While organizing display, exhibitions and guided tour briefings, units
of cultural relics and museumes of all types and at all levels must persist
in carrying forward the patriotic, socialist and revolutionary traditions,
making full use of one’s own advantages, and introducing displays and
exhibitions of fine cultural relics, books on cultural relics and audio-
visual products on cultural relics in a planned way and with focuses.
Protection and utilization of contemporary and modern cultural relics
and especially revolutionary cultural relics should be further stepped up and
efforts are made to do a good job in the general survey, collection,
protection, research and display of revolutionary cultural relics. A number
of museums and memorial halls(sites) of revolution with great influence
should be determined and necessary support in funds granted by the People’s
Governments at all levels to build them step by step into bases of patriotic
education with complete infrastructure.

    The departments of administration of cultural relics of the State and
all provinces, autonomous regions and municipalities directly under the
Central Government should respectively determine and build a number of major museums. For museums run by departments, enterprises,
institutions
or individuals outside the system of cultural relics, the departments of cultural relics should formulate corresponding rules and
regulations and
provide necessary guidance and supervision. Collection units of cultural
relics should step up the collection of cultural relics especially rare
and precious cultural relics, further enrich the collections and conduct
adjustments and exchanges among the collection units. The higher departments
of administration of cultural relics have the power to ship the rare and
precious cultural relics collected by the collection units with no safety
conditions to designated units for safekeeping. Information processing and
compilation of report on archaeological excavations should be completed
within three years upon completion of the excavation projects of the
archaeological excavation units. The excavated cultural relics, with the
exception of a few items which can be kept as specimens with the approval
of the departments of administration of cultural relics of the provinces,
autonomous regions and municipalities directly under the Central Government,
must be handed over to designated museums on time. The departments of administration of cultural relics of the provinces, autonomous
regions and
municipalities directly under the Central Governemnt should compile catalogs
of state-owned collections of regions under their respective jurisdictions
as quickly as possible. On this basis, the department of administration of cultural relics of the State should compile general catalogs
of the state-
owned collections of cultural relics nationwide.

    Full use should be made of China’s advantages in cultural relics to
conduct exchanges and cooperation with the parties concerned abroad and
win extensive donations and support from international organizations,
governments and societies of friendly countries, overseas Chinese and
compatriots of Hong Kong, Macau and Taiwan for the protection of cultural
relics in this country. The rights and interests of the country must be
safeguarded, safety of the cultural relics ensured, procedures for
examination and approval strictly followed in carrying out cooperative
and exchange activities in cultural relics with foreign countries under
overall planning and unified control, and the funds raised should be
used for the development of the cause of cultural relics in China.

    IV.Enhancement and Improvement of Cultural Relics Market Control

    Cultural relics in market circulation are special commodities. The
departments concerned should coordinate with one another in further
enhancing and improving cultural relics market control, stepping up
regulation, control and supervision and ensuring the healthy development
of the cultural relics market. Operational units engaging in procurement
and distribution of cultural units must go through formalities of strict
examination and approval in accordance with the relevant provisions of the
State and engage in operations within the approved scope. No unit or
individual shall engage in business operations in cultural relics without
approval. The departments of industry and commerce administration should,
in conjunction with the departments of administration of cultural relics
and public security, firmly ban illegal operational activities in cultural
relics. The departments of administration of industry and commerce, cultural
relics and domestic trade should exercise joint supervision and control over
the approved second-hand goods markets. Customs of all localities should
step up supervision and control over exit and entry cultural relics and
guard against losses of rare and precious cultural relics.

    Cultural relics auction markets must be standardized in accordance with
law. The departments of administration of cultural relics of the State,
provinces, autonomous regions and municipalities directly under the Central
Government and the cultural relics appraisal organs under them should
strengthen the work of examination and approval of appraisals and permits for
cultural relics auction subject matters. Cultural relics the buying and
selling of which are prohibited by laws and regulations must not enter the
auction markets as auction subject matters. Cultural relics circulating in
society and having extraordinarily important historical, scientific and
artistic values(including special varieties of cultural relics) should
be directionally auctioned within a certain scope. The State has priority
purchasing right over rare and precious cultural relics handed down from
generations and owned by individuals which are put on sale by citizens.

    V.Intensification of Efforts in Law Enforcement and Stern Crackdown
on Criminal Activities Related to Cultural Relics

    Efforts should be intensified in law enforcement while conducting
extensive, in-depth and lasting publicity of laws and regulations related to
the protection of cultural relics and exertions made to the proper handling
of corporate law-breaking cases, and investigation of administrative and
legal liabilities of the parties and responsible persons. The departments
of public security, domestic trade, industry and commerce, customs and
cultural relics should step up coordination to form a cohesive force and
launch a stern crackdown on criminal activities involving pirate excavations,
robberies, pilferage and smuggling of cultural relics. Public security organs
should step up precautions in key collection units of cultural relics and
areas of frequent occurences of cultural relics-related crimes and set up
special-purpose public security outposts when necessary. The departments of cultural relics should establish sound responsibility
system for the
protection of cultural relics, cooperate with public security organs in
crackdown on cultural relics-related criminal activities, and support and
encourage caretakers of cultural relics in the fight against illegal
criminal acts.

    VI.Strengthening of the Buildup of the Ranks and Upgrading of the
Management Level of Cultural Relics

    To do the cultural relics-related work well, a workforce of cultural
relics which is politically strong, professionally proficient and correct
in style must be built up. All departments and units concerned must attache
great importance to the ideological building of the workforce, educate and
require numerous cadres to adhere to correct political orientation,
conscientiously study Marxism-Leninism, Mao Zedong Thought and especially
Deng Xiaoping’s theory of building socialism with Chinese characteristics,
adopt the idea of serving the people whole-heartedly and noble professional
ethics and consciously abide by discipline and law. In the meantime,
numerous cadres should be organized to study hard and master relevant
policies, laws and regulations and professional knowledge and constantly
raise professional levels.

    Training of technical personnel of revelant specialities should be
further stepped up by adopting the ways of “combination of the museum
with the school” and master-apprentice system, and earnestly resolve the
question of shortage of qualified personnel in the protection techniques
of cultural relics, appraisal of cultural relics, repair and restoration
of cultural relics and maintenance of ancient architecture. Step up the
sorting out and tapping of traditional techniques for the protection of cultural relics and lay stress on the role of veteran specialists
and
senior technicians in the cirles of cultural relics and museums. Technical
exchanges with foreign countries should be promoted in a planned way and
best young and middle-aged scientific and technical personnel should be
selected to study advanced science and technology for the protection of cultural relics abroad. In the meantime, lay stress on the
training of multi-talented personnel with concurrent mastery of knowledge of administra-
tion, operational management and modern science and technology, and
increase step by step the percentage of specialised personnel in departments
of cultural relics. Training of active-duty administrators of cultural
relics should be stepped up in various ways to promote scientific and
standardized management.  






CIRCULAR ON ISSUING THE SECOND LIST OF ITEMS FOR THE COLLECTION OF FEES(FUNDS) EXEMPT FROM BUSINESS TAX

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-12-03 Effective Date  1997-12-03  


Circular on Issuing the Second List of Items for the Collection of Fees(funds) Exempt From Business Tax


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

(Approved by the State Council and promulgated by the Ministry of
Finance and the State Administration of Taxation on December 3, 1997)

    In pursuance of the relevant provisions of the Circular on Adjusting
the Policy for Business Tax on Fees(Funds) Collected for Administrative
Purposes(Cai Shui No.[1997] 5, the Second List of Items for the Collection
of Fees(Funds) Exempt from Business Tax is hereby issued to you for
compliance in implementation.

    To facilitate the implementation of the provisions of Cai Shui No. [1997]
5 Document and further standardize the policy for business tax for collection
of fees(funds) for administrative purposes, the questions relating to business
tax for the collection of fees(funds) for administrative purposes are further
clarified as follows:

    I.With respect to collection of fees or funds for administrative purposes
approved by the Central Government and integrated into financial budget
management or designated financial account management, lists of items
for the collection of fees(funds) exempt from business tax shall be issued
in batches upon examination and verification of the Ministry of Finance
and the State Administration of Taxation; with respect to collection of fees
for administrative purposes approved by the provincial authorities and
integrated into financial budget management or designated financial account
management, lists of items for the collection of fees exempt from business
tax shall be issued in batches upon examination and verification of 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.

    II.Pending integration into financial budget management and designated
financial account management for the time being, business tax shall be
levied and collected according to regulations with respect to the collection
of fees or funds already included in the lists of items exempt from business
tax. Specific measures shall be worked out by the departments(bureaus) of finance and local tax bureaus.

    III.The collection of fees or funds abolished in the process of sorting
out and consolidation, if already included in the lists of items for the
collection of fees(funds) exempt from business tax, shall be automatically
deleted from the lists.

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

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


Serial number   Item         Approval Document No.     Competent
Department

      1       License fee for   Jia Fei Zi No.(91)549    
Justice

              lawyers’ work

      2       Civil litigation  Cai Wen Zi No.(96)4

              fee

      3       Service charge    Jia Fei Zi No.(92)618

              for application

              for foreign law
      firms

      4       Survey fee        Jia
Fei Zi No.(91)549

      5       Registration fee  Jia Fei Zi No.(91)613
      for qualification
      examination for
      legal advisors

      6       Registration fee  Jia Fei Zi No.(91)539
      for qualification
      examination for
      notary public

      7       Fee for the cost  Gun Control Law          
Public Security

              of gun control

              certificates

      8       Fee for the cost  Jia Fei Zi No.(92)240

              of special

              cutters control

              certificates

      9       Fee for the cost        
ditto

              of explosives
      control
      certificates

     10       Fee for the cost        ditto
      of census register
      certificates

     11       Fee for the cost         ditto

              of residents’
      identity cards

     12       Visa fee and            
ditto

              certificate fee

              for foreigners

     13       Service charge          
ditto
      and certificate
      fee for entry
      and exit
      applications by
      citizens

     14       Fee for
      certificates for         ditto

              travel to and from
      Hong Kong and Macao

     15       Service charge for       ditto
      application for

              Chinese citizenship

     16       Automotive vehicles      ditto

              management fee

     17       Drivers management       ditto

              fee

     18       Bedding and clothing     ditto
      management fee

     19       Fee for the cost         ditto
      of frontier
      inspection

              certificates

     20       Fee for outside-         ditto

              port frontier

              inspection

              supervision

     21       Collection of fee        ditto

              for inspection book of

              vessels travelling

              to and from Hong Kong
      and Macao

     22       Fee for certificates     ditto

              for sea-bound vessels

              and crew

     23       Fee for production       Ji Jia Ge No.(94)238

              license for fire

              extinguisher products

     24       Fee for production       ditto

              license for burglar

              alarm controls

     25       Fee for production       ditto
      license for active

              infrared intrusion

              probes

     26       Licenses for special    Ji Jia Ge No.(94)916

              trades

     27       Handling charge for     Jia Fei Zi No.(92)175

              major and

              catastrophic

              traffic accidents

     28       Passport fee            Jia
Fei Zi No.(92)198  Foreign Affairs

     29       Certification fee       ditto

     30       Visa processing fee     ditto

              foreign citizens

              collected by

              Chinese embassies

              and consulates in

              foreign countries

     31       Notary and translation  ditto
      fee collected by
      Chinese embassies
      and consulates in

              foreign countries

     32       Registration fee        Jia
Fei Zi No.(92)249  Civil Affairs
      for associations
      and societies

     33       Fee for Marriage        ditto

              certificates   

     34       Service charge          ditto

              for the registration
      of marriage,

              restoration of a
      marriage and divorce

              involving foreign

              nationals

     35       Registration fee        Jia
Fei Zi No.(92)349

              for adoption

     36       Management fee          Jia
Fei Zi No.(92)249

              for social welfare
      production

     37       Fee for adoption        Cai
Zong Zi No.(97)10

              services

     38       Enterprise              Jia
Fei Zi No.(92)414  Industry and

              registration fee                              
Commerce

     39       Registration fee        ditto

              for individual

              households of               industry
and

              commerce

     40       Registration fee        ditto

              for advertising

              management units

     41       Trademark              
Cai Zong Zi No.(95)88

              registration fee

     42       Management fee for      Jia Fei Zi No.(92)414

              country markets

     43       Management fee for      ditto

              individual households

              of industry and

              commerce

     44       Arbitration fee and     ditto

              certification fee for

              economic contracts

     45       Fee for the cost of     ditto
      model copy of

              economic contracts

     46       Fee for the cost of     Ji Jia Ge No.(94)830  
Personnel

              special technique

              qualification
      ceertificate

     47       Fee for certificates    Ji Jia Ge No.(95)611

              of workers’ technical

              positions in organs &

              institutions

     48       Training fee for        Jia
Fei Zi No.(92)253

              high-ranking public
      servants

     49       Registration and        Ji
Wu Jia No.(93)24

              examination fee

              for economists’

              qualification

              examination

     50       Fee for the cost        Jia
Fei Zi No.(92)268   Labor

              of wage fund

              management manual

     51       Fee for the cost        ditto

              of employment

              certificate for

              foreigners

     52       Fee for labor          
ditto

              insurance certificate

              for workers and staff

              members in foreign aid

              projects

     53       Fee for qualification   ditto

              certificates for

              technicians  

     54       Fee for qualification   ditto

              certificates for

              high-grade technicians

     55       Fee for technical       ditto

              grade certificates    

     56       Fee for operation       ditto

              certificates for

              personnel in

              special operations

     57       Fee for qualification   ditto

              certificates for safe

              production in rural

              and township coal mine

              pits

     58       Fee for employment      Ji Jia Ge No.(94)812

              certificates for

              personnel of Taiwan,

              Hong Kong and Macao

     59       License fee for         Ji
Jia Ge No.(95)339

              boiler pressure

              container production

     60       Labor dispute          
Jia Fei Zi No.(92)268

              arbitration fee

     61       Labor contract          ditto

              certification fee

     62       Inspection fee for      ditto

              special articles for

              labor protection

     63       Inspection fee for      ditto

              general articles for

              labor protection

     64       Inspection fee for      ditto

              boilers and pressure

              containers

     65       Inspection fee for      ditto

              vocational safety

              an hygiene and

              environmental

              safety and hygiene

     66       Service charge for      Jia Fei Zi No.(92)293  
Customs

              customs surveillance

              and control

     67       Service charge for       ditto

              the approval of               international

              containers

     68       Fee for certificates     ditto

              for import and export

              of goods

     69       Fee for the cost of      ditto

              enforcing blockade

              by customs

     70       Service charge for       ditto

              the registration of               clearing
units

     71       Service charge for       ditto

              import commodities

              tax refund

     72       Fee for documents        ditto  

     73       Surcharge for delaying   ditto

              declaration of import

              goods

     74       Service charge for       ditto

              surveillance and

              control of goods

              in warehouses under

              export surveillance

              and control

     75       Fee for putting on       Ji Wu Jia No.(95)1594

              record intellectual

              property rights

              protection    

     76       Adjustment fee for       ditto

              ATA documents book              

     77       Training, examination    Jia Fei Zi No.(92)293

              and certificate
      issuing fees for
      customs clearers

     78       Documents checking       ditto
      fee

     79       Vehicle inspection       ditto

              fee

     80       Patent fee              
Ji Jia Ge No.(94)971        Patents

     81       Registration and         Jia
Fei Zi No.(92)332
      examination fee for
      patents agents’
      qualification
      examination

     82       Archive fee        Jia Fei Zi No.(92)130&n

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON PRINTING AND DISTRIBUTING THE SECOND PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF CHINA AND THE GOVERNMENT OF NEW ZEALAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF TAX EVASION FOR INCOMES

Circular of the State Administration of Taxation on Printing and Distributing the Second Protocol to the Agreement between the Government
of China and the Government of New Zealand for the Avoidance of Double Taxation and Prevention of Tax Evasion for Incomes

Guo Shui Han [1997] No. 551
October 15, 1997

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government and cities specifically designated in the state plan,

The Second Protocol to the Agreement between the Government of China and the Government of New Zealand for the Avoidance of Double
Taxation and Prevention of Tax Evasion for Incomes has been formally concluded on October 7, 1997 in Wellington, capital of New Zealand,
which will be not in forth until both contracting states have completed their respective legal procedures. The text of this Second
Protocol is hereby printed and distributed to you. Please make full preparations for its implementation.

The Second Protocol to the Agreement between the Government of China and the Government of New Zealand for the Avoidance of Double
Taxation and Prevention of Tax Evasion for Incomes

As for the Agreement between the Government of China and the Government of New Zealand for the Avoidance of Double Taxation and Prevention
of Tax Evasion for Incomes which has been concluded at Wellington on September 16, 1986 (hereinafter referred to as “the Agreement”),
both the Government of the People’s Republic of China and the Government of New Zealand agree that the following provisions shall
be made as one part of the Agreement.

Article 1 .

Paragraph 1 of Article 2 of the Agreement shall be deleted and substituted by the following,

1.

The current taxes to which the Agreement shall apply are:

(a)

within the People’s Republic of China:

(i)the individual income tax;

(ii) the income tax for foreign-invested enterprises and foreign enterprises;

(hereinafter referred to as “the Chinese revenue ” )

(b)

within New Zealand:

the income tax;

(hereinafter referred to as “the New Zealand revenue” ).”

Article 2 .

Item (j) of paragraph 1 of Article 3 of the Agreement shall be deleted and substituted by the following,

“(j) the term ‘ompetent authority’ refers to, as for China, the State Administration of Taxation or representatives authorized by
it, and as for New Zealand, the Commissioner of Inland Revenue or the representative of the Commissioner authorized by him (her).

Article 3 .

1.

Items (a) and (b) of paragraph 3 of Article 23 of the Agreement shall be deleted and substituted by the following,

” (a) the provisions of Articles 7, 8, 9, 10 and the provisions of paragraphs 1, 3 and 4 of Article 19 of the Income Tax Law of the
People’s Republic of China for Foreign-invested Enterprises and Foreign Enterprises and the provisions of Articles 73, 75, and 81
of the Detailed Rules and Regulations for the Implementation of the Income Tax Law of the People’s Republic of China for Foreign-invested
Enterprises and Foreign Enterprises. ”

2.

Items (c) and (d) of paragraph 3 of Article 23 of the Agreement shall be respectively modified as (b) and (c).

Article 4 .

1.

In spite of Article 23 of the Agreement, where the income that a New Zealand resident derives from the People’s Republic of China
and is referred to in paragraph 3 of Article 23 of the Agreement is under one of the following circumstances, it shall be enpost_titled
to enjoy the preferential provisions of that paragraph ,

(a)

where an arrangement have been entered into by any person in order to take advantage of paragraph 3 of Article 23 for the benefit
of that person or any other person, which is contrary to the spirit and intent of that paragraph; or

(b)

where any benefit occurs or may occur to any person who is neither a resident of New Zealand nor a resident of the People’s Republic
of China.

2.

The competent authority of New Zealand shall negotiate with the competent authority of the People’s Republic of China before adopting
any of the above measures in every case.

Article 5 .

1.

Articles 1 and 3 of this Second Protocol shall be applicable to incomes derived on or after July1, 1997.

2.

Article 2 of this Second Protocol shall be effective from the date when the Second Protocol goes into effect.

3.

Article 4 of this Second Protocol shall be applicable incomes derived on or after the first day of the month following the date on
which this Second Protocol goes into effect.

Article 6 .

1.

Each of the Contracting States shall notify the other one that the procedures as required by its laws for the effectiveness of this
Second Protocol have been finished.

2.

This Second Protocol shall go into effect as of the thirtieth day after the later notification referred to in paragraph 1 of this
Article is issued.

This Protocol was concluded at Wellington in duplicate on October 7, 1997 both in English and Chinese. Both the text in English and
in Chinese shall be equally authentic.

Representative of the Government of the People’s Republic of China ChengFaguang Representative of the Government of New Zealand Don
McKinnon



 
The State Administration of Taxation
1997-10-15

 







CIRCULAR OF THE STATE SCIENCE AND TECHNOLOGY COMMISSION AND THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ISSUING THE PROVISIONS ON SEVERAL ISSUES CONCERNING THE USE OF HIGH AND NEW TECHNOLOGY ACHIEVEMENTS AS INVESTMENT FOR SHARES

The State Science and Technology Commission, the State Administration for Industry and Commerce

Circular of the State Science and Technology Commission and the State Administration for Industry and Commerce Issuing the Provisions
on Several Issues Concerning the Use of High and New Technology Achievements as Investment for Shares

GuoKeFaZhengZi [1997] No.326

July 4, 1997

To standardize the behavior of using the high and new technology achievements as investment for shares and to promote the development
of high and new technology industry, we drafted the Provisions on Several Issues Concerning the Use of High and New Technology Achievements
As Investment for Shares according to Company Law and other related laws and regulations. The circular is hereby issued to you for
complementation, please notify the problem in complementation in time. Attachment:Provisions on Several Issues Concerning the Use of High and New Technology Achievements as Investment for Shares

Article 1

These Provisions are formulated in accordance with the Company Law and other laws and regulations and for the purposes of standardizing
the acts of using high and new technology achievements as investment for shares and promoting the development of the high and new
technology industry.

Article 2

These Provisions apply to the use of high and new technology achievements as investment into incorporated companies for shares.

Article 3

When high and new technology achievements are used as investment for shares, the total amount priced may exceed 20% of the company’s
registered capital and may not exceed 35%.

Article 4

A high and new technology achievement used as investment for shares shall meet the following requirements:

(1)

falling into the range of high and new technologies published by the State Science and Technology Commission;

(2)

being the core technology for the company’s main products;

(3)

having the lawful right of disposition over the said technology by the contributor of the technology achievement and guaranteeing
the company’s property right and non-patent technology over the said technology; and

(4)

having been acknowledged by the State Science and Technology Commission or the science and technology administration department at
the provincial level.

Article 5

The science and technology administration departments acknowledge high and new technologies within the following scope:

(1)

microelectronic science and electronic information technology;

(2)

space science and aerospace technology;

(3)

photoelectric science and optical-mechanical-electric technology;

(4)

life science and bioengineering;

(5)

materials science and new material technology;

(6)

energy science and new energy and highly energy-saving technology;

(7)

ecology and environmental protection technology;

(8)

geoscience and oceanographic engineering technology;

(9)

basic substance science and radioactive technology;

(10)

medical science and bioengineering technology; and

(11)

new techniques and new technologies applied on the basis of other traditional industries.

This scope of high and new technologies is supplemented and modified by the State Science and Technology Commission in accordance
with the development of high and new technologies at home and abroad.

Article 6

When a high and new technology achievement is used as investment for shares, the contributor of the achievement shall, through agreement
with other contributors, stipulate the applicable scope of the said achievement invested as shares, the scope of rights reserved
by the contributor of the said achievement over the said technology and responsibilities for breach of agreement.

Article 7

High and new technology achievements invested as shares must be evaluated and priced by the evaluation organizations registered at
the administrative organs for industry and commerce. The evaluation results of State-owned assets shall be subject to the acknowledgment
procedures if they are required to be acknowledged by the relevant competent administrative departments according to law. If the
amount priced exceeds 20% of the company’s registered capital, the following documents must be submitted to the science and technology
administration departments at and above the provincial level for acknowledgment:

(1)

a written application for investment as shares on the technology achievement, including the right status of the technology achievement,
information about the transfer of its use right and the utilization results;

(2)

documentary evidences proving the contributor’s rights over the said technology achievement, including such related legal instruments
as patent certificate, software registration certificate, registration certificate of new species of plants, transfer contract of
patent right and technology contract;

(3)

agreement on technology investment as shares and the company’s approval or production plans on utilizing the said achievement;

(4)

an evaluation report on the value of the technology achievement and non-State own acknowledgment; and

(5)

other documents required by the science and technology administration department.

Article 8

After examination and acknowledgment by the science and technology administration department, shareholders of the company shall reach
an agreement on the amount priced on the said high and new technology used as investment for shares, and shall write the said high
and new technology and its equivalent amount of investment into the articles of association.

Article 9

Shareholders of the company shall, according to the State’s provisions on the registration for the establishment or change of incorporated
companies and by presenting the examination and acknowledgment documents and other documents on high and new technology investment
as shares issued by the science and technology administration department at or above the provincial level, proceed to the administrative
organ for industry and commerce to go through the registration for the establishment or change of the company.

Article 10

After the establishment of the company, the contributor of high and new technology achievement as investment for shares shall, according
to the contribution agreement, go through the right transfer procedures of the said high and new technology achievement, provide
technical materials and assist the application and implementation of the said high and new technology achievement. If a contributor,
in violation of the agreement, fails to perform his obligations in delivering the high and new technology achievement, or uses the
said achievement in excess of the scope of rights reserved for the said technology achievement as stipulated in the agreement, he
shall be liable for breach of agreement to other contributors.

Article 11

Evaluators and related persons in charge of the examination and registration of the high and new technology achievements as investment
for shares shall keep confidential the technical secrets and commercial secrets for the contributors.

Article 12

If both the Chinese and foreign parties to Chinese-foreign equity joint ventures and Chinese-foreign joint contractual ventures use
high and new technology achievements to invest or to provide cooperation conditions, these Provisions apply; and high and new technology
achievements shall be contributed in a single installment according to the term of contribution.

Article 13

If non-company science and technology development enterprises with legal person status use high and new technology achievements as
investment for shares, they are governed by reference to these Provisions.

Article 14

These Provisions are interpreted by the State Science and Technology Commission and the State Administration for Industry and Commerce.

Article 15

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



 
The State Science and Technology Commission, the State Administration for Industry and Commerce
1997-07-04

 







DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING ADDITION AND DELETION OF NATIONAL LAWS IN ANNEX III TO THE HONGKONG SPECIAL ADMINISTRATIVE REGION BASIC LAW

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1997-07-01 Effective Date  1997-07-01  


Decision of the Standing Committee of the National People’s Congress Concerning Addition and Deletion of National Laws in Annex Iii
to the Basic Law of the Hongkong Special Administrative Region of the People’s Republic of China

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

National People’s Congress on July 1, 1997)

    1. The following national laws shall be added to Annex III to the Basic
Law of the Hongkong Special Administrative Region of the People’s Republic of
China:

    (1) National Flag Law of the People’s Republic of China;

    (2) Regulations of the People’s Republic of China Concerning Consular
Privileges and Immunities;

    (3) National Emblem Law of the People’s Republic of China;

    (4) Law of the People’s Republic of China on the Territorial Sea and the
Contiguous Zone; and

    (5) Garrison Law of the Hongkong Special Administrative Region of the
People’s Republic of China.

    National laws as mentioned above shall be promulgated or implemented
through legislation by the Hongkong Special Administrative Region as of July
1, 1997.

    2. The following national law shall be deleted from Annex III to the Basic
Law of the Hongkong Special Administrative Region of the People’s Republic of
China:

    Order on the National Emblem of the People’s Republic of China Proclaimed
by the Central People’s Government (Attached: Design of the national emblem,
notes of explanation and instructions for use).






REGULATIONS CONCERNING ANTI-DUMPING AND ANTI-SUBSIDY

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-03-25 Effective Date  1997-03-25  


Regulations of the People’s Republic of China Concerning Anti-dumping and Anti-subsidy

Chapter I  General Provisions
Chapter II  Dumping and Damage
Chapter III  Anti-dumping Investigation
Chapter IV  Anti-dumping Measures
Chapter V  Special Provisions on Anti-subsidy
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 214 of the State Council of the People’s

Republic of China on March 25, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in accordance with the
relevant provisions of the with a view to maintaining order in foreign trade and fair competition
and protecting related domestic industries.

    Article 2  Anti-dumping or anti-subsidy measures shall be taken in
pursuance of the provisions of these Regulations in respect of import
products adopting the form of dumping or subsidy and causing substantial
damage to the established related domestic industries or producing threat
of substantial damage therefrom, or creating substantial obstacles in the
establishment of related domestic industries.
Chapter II  Dumping and Damage

    Article 3  Export price of an import product lower than its normal
value shall be construed as dumping.

    Article 4  The normal value shall be determined according to the
following methods:

    (1)Identical or similar products of the import product with comparable
price in the market of the exporting country, the said comparable price
shall be the normal value;

    (2)Identical or similar product of the import product without comparable
price in the market of the exporting country, the comparable price of the
said identical or similar product for export to a third country or the
production cost plus reasonable expenses and profit shall be the normal
value.

    Article 5  Export price shall be determined according to the following
methods:

    (1)An import product with price of actual paid purchase price or payable
purchase price, the said price shall be the export price;

    (2)An import product without price of actual paid purchase price or
payable purchase price, or the price of which not determinable, the price
at which the said import product first resold to an independent purchaser
or the price computed by the Ministry of Foreign Trade and Economic Coopera-
tion in consultation with the General Administration of Customs on a reasonable
basis shall be the export price.

    Article 6  The margin of the export price of an import product lower
than its normal value shall be the range of dumping.

    Fair and rational comparison should be made of the export price and
normal value of an import product and the range of dumping determined
thereof.

    Article 7  The damage includes the substantial damage caused by dumping
to the established related domestic industries or the threat of substantial
damage produced therefrom, or the substantial obstacles created for the
establishment of related domestic industries.

    Article 8  The following particulars should be examined in the
determination of damage caused by dumping to domestic industries:

    (1)Quantity of a dumping product including the total volume of the
dumping product or the increment in relation to the identical or similar
domestic product and the possibility of a great increment;

    (2)Price of a dumping product including the price reduction of the
dumping product or its impact on the price of the identical or similar
domestic product;

    (3)Impact of a dumping product on the domestic industry;and

    (4)Production capacity, export capability and inventory of a dumping
product of the exporting country.

    Article 9  Anti-dumping investigation involving an import product
of more than two countries, cumulative evaluation of the impact of the
related import product may be carried out.

    Article 10  The domestic industry shall mean all the producers of the identical or similar product within the territory of the People’s
Republic of China, or the producers whose total volume of production
take up large part of the total volume of production of the identical
or similar domestic product; however, domestic producers who are related
to the export operators or the import operators, or who themselves are
import operators of the dumping product, can be excluded.
Chapter III  Anti-dumping Investigation

    Article 11  Domestic producers of the identical or similar product
of an import product or relevant organizations(hereinafter referred to as
the applicant) may, pursuant to the provisions of these Regulations, submit
written applications for anti-dumping investigation to the Ministry of Foreign Trade and Economic Cooperation.

    Article 12  The application shall include the following contents:

    (1)Names and addresses of the applicant and the producers he or she
represents;

    (2)Name, category, serial number in the tariff schedule of the import
product as well as the name and category of the identical or similar domestic
product;

    (3)Quantity and price of the dumping product and its impact on the
domestic industry;

    (4)The cause and effect relationship between the dumping and damage; and

    (5)Other contents prescribed by the Ministry of Foreign Trade and
Economic Cooperation.

    The application should enclose necessary evidences.

    Article 13  The Ministry of Foreign Trade and Economic Cooperation
shall, upon receipt of the written application of the applicant, examine
the application and the evidences enclosed therewith; whether a case shall
be recorded for investigation or not shall be decided on upon consultation
with the State Economic and Trade Commission.

    Article 14  In case of extraordinary circumstances when the Ministry
of Foreign Trade and Economic Cooperation has sufficient evidence to come
to the view that there exists the cause and effect relationship between
the dumping and damage, the Ministry may, upon consultation with the State
Economic and Trade Commission, record a case for investigation on their own.

    Article 15  The period of anti-dumping investigation shall be twelve
months starting from the date of announcement of the decision on the
recording of the case for investigation to the date of announcement of final arbitration which can be extended to eighteen months
under extra-
ordinary circumstances.

    Article 16  The Ministry of Foreign Trade and Economic Cooperation
shall make an announcement on the decision whether a case shall be recorded
for investigation or not and notify such parties interested as the applicant,
known export operators and import operators and the government of the exporting
country.

    Article 17  Upon the decision to record a case for investigation,
the Ministry of Foreign Trade and Economic Cooperation in conjunction with
the General Administration of Customs carry out investigation of the dumping
and the range of dumping, the State Economic and Trade Commission in conjunc-
tion with the departments concerned under the State Council conduct investiga-
tion of the damage and the extent of damage, the Ministry of Foreign Trade and
Economic Cooperation and the State Economic and Trade Commission shall make
their respective preliminary arbitration on the basis of the results of investigation which shall be announced by the Ministry of
Foreign Trade
and Economic Cooperation.

    Whereas the dumping and damage are established in the preliminary
arbitration, further investigation shall be carried out on the dumping,
the range of dumping, the damage and the extent of damage pursuant to
the provision of the preceding paragraph, and the Ministry of Foreign
Trade and Economic Cooperation and the State Economic and Trade Commission
shall make their respective final arbitration which shall be announced by
the Ministry of Foreign Trade and Economic Cooperation.

    Article 18  Anti-dumping investigation shall be terminated in the
event of any of the following circumstances which shall be announced by
the Ministry of Foreign Trade and Economic Cooperation:

    (1)The application withdrawn by the applicant;

    (2)There exists no dumping and damage in the preliminary arbitration;

    (3)There exists no dumping and damage in the final arbitration; and

    (4)The range of dumping or the import volume of the dumping product
may be neglected and not counted.

    Article 19  In the course of investigations conducted by the Ministry
of Foreign Trade and Economic Cooperation in conjunction with the General
Administration of Customs and by the State Economic and Trade Commission
in conjunction with the departments concerned under the State Council,
investigative questionnaire can be distributed to the interested parties
and sampling investigations carried out; at the request of the interested
parties, opportunities shall be provided for the interested parties to
make representations.

    The Ministry of Foreign Trade and Economic Cooperation may despatch
staff to the countries concerned to conduct investigation when it deems
necessary except that the countries concerned raise objections.

    Article 20  In the course of investigations conducted by the Ministry
of Foreign Trade and Economic Cooperation in conjunction with the General
Administration of Customs and by the State Economic and Trade Commission
in conjunction with the departments concerned under the State Council,
the interested parties should explain the situation as it is and provide
relevant information. The interested parties do not explain the situation
as it is and provide relevant information, or obstruct investigation in
other forms, the Ministry of Foreign Trade and Economic Cooperation and
the State Economic and Trade Commission may make the arbitration on the
basis of existing materials.

    Article 21  The Ministry of Foreign Trade and Economic Cooperation
and the State Economic and Trade Commission should allow the applicant and
the interested parties to refer to information related to the case save
that the information belongs to the secret file.
Chapter IV  Anti-dumping Measures

    Article 22  In case of established dumping by the preliminary arbitration
and damage caused to the domestic industry therefrom, the following interim
anti-dumping measures may be taken:

    (1)Collection of interim anti-dumping duty in accordance with prescribed
procedures;

    (2)To demand that cash deposit or security in other forms be provided.

    The amount of interim anti-dumping duty and the amount of cash deposit
and security in other forms should be commesurate with the range of dumping
determined by the preliminary arbitration.

    Collection of interim anti-dumping duty shall be decided by the Tariff
Commission under the State Council on the basis of proposals of the Ministry
of Foreign Trade and Economic Cooperation. The demand of provision of cash
deposit or security in other forms shall be decided by the Ministry of Foreign
Trade and Economic Cooperation.

    Article 23  The decision of interim anti-dumping measures shall be
announced by the Ministry of Foreign Trade and Economic Cooperation and
implemented by the Customs.

    Article 24  The period of interim anti-dumping duty shall be four
months starting from the date of announcement on the decision of interim
anti-dumping measures; it can be extended to nine months in case of extraordinary circumstances.

    Article 25  In respect of export operators or government of the exporting
country of the dumping product make the committment of proposed effective
measures to remove the damage caused by dumping to the domestic industry, the
Ministry of Foreign Trade and Economic Cooperation may, upon consultation
with the State Economic and Trade Commission, decide to suspend anti-dumping
investigation and make an announcement.

    The Ministry of Foreign Trade and Economic Cooperation may request the
export operators or the government of the exporting country of the preceding
paragraph to regularly provide relevant information on the fulfillment of the committment.

    Article 26  In respect of failure of the export operators or government
of the exporting country to fulfil the committment or withdrawal of the
committment, the Ministry of Foreign Trade and Economic Cooperation may,
upon consultation with the State Economic and Trade commission, decide to
resume anti-dumping investigation.

    Article 27  In respect of the existence of dumping by final arbitration
and the damage caused thereby to the domestic industry, anti-dumping duty
may be levied and collected in accordance with prescribed procedures and an
announcement made by the Ministry of Foreign Trade and Economic Cooperation.

    Collection of anti-dumping duty shall be proposed by the Ministry of Foreign Trade and Economic Cooperation,
decided by the Tariff Commission
under the State Council and effected by the Customs.

    Article 28  The import operator of the dumping product shall be the
taxpayer of the anti-dumping duty.

    Article 29  The amount of the anti-dumping duty shall not exceed the
range of dumping determined by the final arbitration.

    Article 30  In case of the determined anti-dumping duty lower than
the interim anti-dumping duty, the overcollected portion should be refunded;
in case of the determined anti-dumping duty higher than the interim anti-
dumping duty, the undercollected portion shall not be made up any more.

    Article 31  In case of decision not to collect anti-dumping duty, the
interim anti-dumping duty collected, and the cash deposit or security in
other forms taken should be refunded.

    Article 32  In case of the following two circumstances existing side
by side, the Tariff Commission under the State Council may, upon proposal
of the Ministry of Foreign Trade and Economic Cooperation decide to retroactive-
ly collect anti-dumping duty on the import dumping product ninety days before
the announcement of the decision of interim anti-dumping measures:

    (1)The dumping product has a history of dumping causing damage to the
domestic industry, or the import operator of the dumping product is aware
or should be aware of the fact that the export operator of the said product
is dumping the product and the dumping will cause damage to the domestic
industry;

    (2)Large volume of import of the dumping product within a short period
which has already caused damage to the domestic industry.

    Article 33  The period of collection of the anti-dumping duty and
price committment in pursuance of the provisions of these Regulations shall
be five years. Within this period, the Ministry of Foreign Trade and
Economic Cooperation may, upon consultation with the State Economic and
Trade Commission, reexamine the decision on the collection of the anti-
dumping duty on its own or at the request of the interested parties, and
within twelve months starting from the date of reexamination submit its
proposal to the Tariff Commission on the revision, cancellation or retention
of the decision on the collection of the anti-dumping duty for reexamination
and decision by the Tariff Commission under the State Council which shall be
announced by the Ministry of Foreign Trade and Economic Cooperation.

    Article 34  In case of the import operator of the dumping product
having evidences to prove that the paid amount of anti-dumping duty has
exceeded the range of dumping, it may apply to the Ministry of Foreign Trade
and Economic Cooperation for refund. Upon examination and verification by the
Ministry of Foreign Trade and Economic Cooperation in conjunction with the
General Administration of Customs, the Ministry of Foreign Trade and
Economic Cooperation shall put forth a proposal of refund for decision
by the Tariff Commission under the State Council and implementation by
the Customs.

    The decision on the refund of the preceding paragraph shall be made
within eighteen months starting from the date of receipt of the application
for refund.

    Article 35  The Ministry of Foreign Trade and Economic Cooperation,
the State Economic and Trade Commission and the departments concerned under
the State Council may take appropriate measures to prevent acts of evading
the anti-dumping measures.
Chapter V  Special Provisions on Anti-subsidy

    Article 36  Financial assistance or interest provided directly or
indirectly by foreign governments or public institutions to industries and
enterprises shall be subsidy.

    Article 37  These Regulations are applicable to import products with
subsidies. However, these Regulations shall not be applicable to import
products with subsidies for the sole purpose of industrial research and
development, supporting the backward regions and environmental protection.

    Article 38  The net amount of subsidy accepted by the subsidized
product shall be the amount of subsidy.

    The amount of subsidy should be calculated in a fair and reasonable
manner.

    Article 39  The relevant provisions of Chapters II, III and IV of these Regulations shall be applicable to the damage caused by subsidy,
anti-subsidy investigations and implementation of anti-subsidy measures.
Chapter VI  Supplementary Provisions

    Article 40  In case of any country or region adopting discriminatory
anti-dumping or anti-subsidy measures against export products of the People’s
Republic of China, the People’s Republic of China may take corresponding
measures against the said country or the said region in the light of actual circumstances.

    Article 41  The Ministry of Foreign Trade and Economic Cooperation and
the State Economic and Trade Commission may, in conjunction with the
departments concerned under the State Council work out related specific
measures in accordance with these Regulations.

    Article 42  These Regulations shall enter into force as of the date
of promulgation.






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...