PROCEDURES OF SHANGHAI MUNICIPALITY ON THE ADMINISTRATION OF ROAD TRANSPORTATION OF DANGEROUS GOODS OF BUSINESS NATURE

(Effective Date:1997.09.01–Ineffective Date:)

   Article 1 (Purpose and Basis)

The Present Procedures are formulated in accordance with the “Regulations of Shanghai Municipality on the Administration of Road Transportation”
and the relevant provisions of the State as well as the actual specific circumstances of this Municipality in order to strengthen
the administration of road transportation of dangerous goods in this Municipality and to ensure the safety of transportation.

   Article 2 (Definition)

Dangerous goods as defined in the present Procedures refer to goods that are explosive, inflammable, poisonous, erosive or radioactive
in nature and need special care in the course of transportation, loading and unloading as they are likely to cause injury and death
to persons and damages to property.

   Article 3 (Classification of Dangerous Goods)

According to their difference in nature, dangerous goods may be classified as explosives, compressed gas and liquefied gas, inflammable
liquid, inflammable solids, self-combustibles, goods that become inflammable when wet, oxidizers, organic peroxides, poisonous goods,
infectious goods, erosive goods, and radioactive articles.

   Article 4 (Scope of Application)

The present Procedures are applicable to road transportation of dangerous goods of a business nature (including loading and unloading
of dangerous goods and rendering services to road transportation of dangerous goods) within the administrative areas of this Municipality,
and related administrative activities thereof.

   Article 5 (Administrative Departments)

The Communications Office of the People’s Government of Shanghai Municipality (hereinafter referred to as the “Municipal Communications
Office”) is the municipal department responsible for the administration of road transportation of dangerous goods of a business nature
(including loading and unloading of dangerous goods and rendering services to road transportation of dangerous goods) while its subordinate,
the Administrative Section of Land Transportation of the Shanghai Municipality (hereinafter referred to as the “Municipal Land Transportation
Section”) shall take charge of the specific administrative work.

The responsible administrative departments of communications in districts and counties and their subordinates, the Administrative
Subsection of Land Transportation (hereinafter referred to as “District (County) Land Transportation Subsection”) shall be responsible
for the administration of road transportation of dangerous goods of a business nature (including loading and unloading of dangerous
goods and rendering services to road transportation of dangerous goods within their jurisdiction.

The departments of public security, industry and commerce, taxation, price control, labor, environmental protection, civil defense
and public health shall, in accordance with their respective duties and responsibilities, work in cooperation to ensure good administration
of road transportation of dangerous goods (including loading and unloading of dangerous goods and rendering services to road transportation
of dangerous goods) in this Municipality.

   Article 6 (Supervision and Inspection)

The administrative personnel of the Municipal Land Transportation Section and the District (County) Land Transportation Subsection
may enter the premises of business units and the site of operation concerned for inspection.

Units or individual persons engaged in road transportation of dangerous goods (including loading and unloading of dangerous goods
and rendering services to road transportation of dangerous goods) shall conscientiously submit themselves to the inspection of traffic-law-
enforcing personnel, report the conditions as they really are, and provide relevant datum.

   Article 7 (Qualifications for Units Engaged in Road Transportation of Dangerous Goods)

Units engaged in road transportation of dangerous goods of a business nature shall possess the following qualifications:

1. Possessing ten or more specialized vehicles for road transportation of dangerous goods and more than five years’ experience of
operation of in road transportation of goods;

2. Having adequate parking space appropriate to their business scale;

3. Having special equipment for cleaning vehicles and removing contamination by dangerous goods;

4. Having competent technical and safety control personnel;

5. Fire-fighting equipment for dangerous goods transportation vehicles, containers, loading and unloading machinery, accessories and
tools, and the parking lots meet the relevant requirements of the State;

6. Having qualified drivers, loaders and business management personnel who have undergone vocational training and have passed the
tests;

7. Having sound rules of safe operation and a sound system of vehicle and equipment maintenance; and

8. Other requirements as prescribed by rules and regulations.

   Article 8 (Qualifications for Units Engaged in Loading and Unloading of Dangerous Goods)

Units engaged in business activities of loading and unloading dangerous goods shall possess the following qualifications:

1. Having more than 5 years’ experience in loading and unloading of goods;

2. Having loading and unloading machinery, accessories and tools appropriate to their business scale, and safety protecting measures
and equipment;

3. Having competent technical and safety control personnel;

4. Having qualified loaders and business management personnel who have undergone vocational training and passed the tests;

5. Having sound rules of safe operation and a sound system of loading and unloading machinery maintenance;

6. Other requirements as prescribed by rules and regulations.

   Article 9 (Qualifications for Service Units in Connection with Road Transportation of Dangerous Goods)

Units providing services of a business nature to road transportation of dangerous goods shall meet the following requirements:

1. Having a fixed place for business;

2. Having more than 5 years’ experience in providing services to road transportation of goods;

3. Having qualified business personnel who have undergone vocational training and passed the tests;

4. Having more than 30 square meters of special warehouse that meets fire control requirements if they are to pack dangerous goods
and consign them to shipment for their owners; and

5. Other requirements as prescribed by rules and regulations.

   Article 10 (Documents to Be Submitted When Applying for Road Transportation of Dangerous Goods)

Units applying for road transportation of dangerous goods as a business shall submit the following documents:

1. Application;

2. Document certifying business scale and experience in read transportation of goods;

3. Documents certifying the availability of parking space;

4. Plane figures of special facilities for cleaning vehicles and removing contamination of dangerous goods;

5. List of technical and safety control personnel;

6. Driving licenses of vehicles and datum of vehicles and equipment (including operation licenses and certificates of inspection issued
by labor departments for vehicles with pressure tanks if there are any);

7. Certificates of qualification of drivers, loaders and business management personnel who have undergone training and passed the
tests;

8. Relevant texts concerning rules and regulations of management system;

9. Documents of approval issued by public security departments for engagement in road transportation of dangerous goods that are inflammable,
explosive, highly poisonous or radioactive; and

10. Other materials as prescribed by rules and regulations.

   Article 11 (Documents to Be Submitted When Applying for Loading and Unloading of Dangerous Goods)

Units applying for engaging themselves in business activities of loading and unloading dangerous goods shall submit the following
documents:

1. Application;

2. Documents certifying experience in loading and unloading goods;

3. Documents stating the loading and unloading machinery, accessories and tools; safety control measures and datum of safety control
apparatus;

4. Lists of technical and safety control personnel;

5. Certificates of qualification of loaders and business management personnel who have undergone training and passed the tests;

6. Relevant texts concerning rules and regulations of management; and

7. Other materials as prescribed by rules and regulations.

   Article 12 (Documents to Be Submitted When Applying for Service Activities of Road Transportation of Dangerous Goods)

Units applying for engaging themselves in business activities of servicing road transportation of dangerous goods shall submit the
following documents:

1. Documents certifying business sites;

2. Documents certifying experience in servicing road transportation of goods;

3. Certificates of training, test and qualification of business personnel; and

4. Other materials as prescribed by rules and regulations.

Those who act and consign dangerous goods to shipment for their owners shall submit, in addition, a plane figure of warehouse and
facilities as well as documents of approval issued by public security departments.

   Article 13 (Acceptance, Examination and Approval of Application)

Units that are to be engaged in business activities of road transportation of dangerous goods (including loading and unloading of
dangerous goods and rendering services to road transportation of dangerous goods) shall submit, in advance, an application to the
Municipal Land Transportation Section, which shall submit a statement of its opinions, of preliminary examination, to the Municipal
Communications Office for approval.

Authorities of examination and approval shall, within 30 days after reception of application, make a decision. Certificates for road
transportation of dangerous goods (including licenses for road transportation of dangerous goods, certificates for road transportation
of dangerous goods) and certificates for operation of road transportation of dangerous goods shall be issued to those units that
meet the requirements; and a written decision of disapproval shall be given to those units that fail to meet the requirements.

   Article 14 (Registration With industry and Commerce Departments and Taxation Departments)

Units approved to be engaged in the business activities of road transportation of dangerous goods (including loading and unloading
of dangerous goods and services to road transportation of dangerous goods) shall complete, with the license for road transportation
of dangerous goods, at the industry and commerce departments and taxation departments of the district or county in which they are
located relevant formalities before start in business.

   Article 15 (Scope of Business)

Units approved to be engaged in the business activities of road transportation of dangerous goods (including loading and unloading
of dangerous goods and rendering services to road transportation of dangerous goods) shall complete their business operation within
the approved scope of business.

   Article 16 (Alteration and Winding-up of Business)

In case a business unit engaged in road transportation of dangerous goods (including loading and unloading of dangerous goods and
services rendered to road transportation of dangerous goods) need to have a merger or split-up, or alteration of vehicle models or
the number of vehicles, they shall submit, in advance, an application to the original departments of approval and go through the
same procedures and formalities for examination and approval of application as the original. In case the said unit wants to move
to another place or change its name, it shall, within 10 days upon completing formalities of alteration with relevant departments,
report to the original departments of examination and to approval to file it for the record.

In case the business units engaged in road transportation of dangerous goods (including loading and unloading of dangerous goods and
rendering services to road transportation of dangerous goods) want to close down business, they shall apply to the original departments
of examination and approval, hand in for cancellation the relevant documents and receipts, and go through the formalities of business
winding up with the industry and commerce departments and taxation departments.

   Article 17 (Annual Examination)

The Municipal Land Transportation Section and District (County) Land Transportation Subsection shall undertake an annual examination
of the qualifications of business units engaged in road transportation of dangerous goods (including loading and unloading of dangerous
goods and rendering services to road transportation of dangerous goods.) Only those units that have passed the examination shall
be allowed to continue business.

   Article 18 (Examination and Approval of Application of Purchase of Vehicles)

In case business units engaged in road transportation of dangerous goods need to purchase freight motor vehicles, they shall submit
an application to the Municipal Land Transportation Section and shall only purchase the vehicles after the application is approved.

   Article 19 (Technical Specifications of Vehicles and Safety Requirements for Facilities and Containers)

Vehicles engaged in transportation of dangerous goods must meet the requirements prescribed by the State regulations with respect
to technical administration of motor vehicle transportation.

Pressure tanks (troughs) for transportation of dangerous goods must meet the safety requirements prescribed by the State and the labor
departments of this Municipality with respect to facilities.

Safety requirements with respect to normal pressure tanks (troughs) for transportation of dangerous goods shall be prescribed by the
Municipal Communications Office separately.

   Article 20 (Vehicles Symbols)

Vehicles engaged in transportation of dangerous goods must carry symbols for special use, which shall be printed and issued uniformly
by the Municipal Land Transportation Section.

   Article 21 (Repair, Refitting and Examination of Vehicles)

Vehicles engaged in transportation of dangerous goods shall receive maintenance in accordance with the prescribed period and requirements.

Vehicles engaged in transportation of dangerous goods that need repair or refitting with respect to some special parts affecting safety
of operation shall be sent to garages qualified for repair of such vehicles.

Vehicles engaged in transportation of dangerous goods shall receive comprehensive examination with respect to their technical performance
in accordance with relevant regulations of the State and this Municipality. Only those vehicles that have passed such examination
shall be allowed to continue transportation.

   Article 22 (Use of Vehicles and Containers Prohibited by Law)

Vehicles and containers are prohibited from carrying dangerous goods under any one of the following circumstances:

1. The total mileage of the vehicle exceeds 400,000 kilometers or the vehicle has been in use for 10 years;

2. The technical performance of the vehicle is below the standards of second-class vehicles; or

3. The technical performance or the container does not meet the requirements prescribed in Article 19 of the present Procedures.

   Article 23 (Standards for the Consignment of Dangerous Goods for Shipment)

Consignors shall consign for shipment of dangerous goods to units legally qualified to be engaged in such business and complete the
formalities of consignment in accordance with the requirements of the “Rules on Transportation of Dangerous Goods by Motor Vehicles”
enacted by the Ministry of Communications.

In case of consignment for shipment of dangerous goods that the consignor has to show certificates of permission for transportation
according to the stipulations of the State, certificates of promotion for transportation shall be submitted.

   Article 24 (Standards for Acceptance of Dangerous Goods for Transportation)

When accepting dangerous goods for road transportation, the carrier or shipping agent must verify the consignment forms filled and
relevant datum provided by the consignor.

Carriers or shipping agents shall not transfer business of road transportation of dangerous goods they have accepted to units not
legally qualified to be engaged in such business.

When accepting the following dangerous goods for road transportation, the carrier or shipping agent shall, three days before starting
shipment, submit to the Municipal Land Transportation Section a report of the names and amounts of the dangerous goods to be transported
and the routes and dates of transportation. In emergency cases, such report shall be submitted to the Municipal Land Transportation
Section at the same time the shipping starts.

1. Explosives;

2. Poisonous goods;

3. Organic peroxides that require temperature control;

4. Radioactive materials; or

5. Highly dangerous goods to be transported in pressure tanks. (troughs)

   Article 25 (Training of Personnel Engaged in the Business)

Drivers, loaders, technical administrative personnel and business personnel engaged in business activities of road transportation
of dangerous goods (including loading and unloading of dangerous goods and rendering services to road transportation of dangerous
goods) shall undergo training in relevant laws and regulations, professional ethics and technical matters organized by communications,
public security and labor departments of this Municipality. They may take up their post at work only after passing the tests and
obtaining relevant qualification certificates.

   Article 26 (Certificates to Be Carried by Drivers and Loaders)

Drivers engaged in business activities of road transportation of dangerous goods shall carry with their vehicles certificates for
road transportation of dangerous goods as well as bearing the special seal for road transportation of dangerous goods as well as
operational certificates for road transportation of dangerous goods. Loaders of dangerous goods shall carry with them operational
certificates for road transportation of dangerous goods.

   Article 27 (Standards for Transporting and Loading Operation)

When transpiration or loading and unloading dangerous goods, drivers and loaders shall, in accordance with the State rules of operation
in road transportation, loading and unloading of dangerous goods, and, in the light of the nature of the goods, take corresponding
measures to keep out the sun from the goods, control the temperature, prevent the goods from explosion, fire, shock, water or frostbite,
prevent powder form flying up and prevent goods form scattering or leaking.

No unit or individual person shall be allowed to have combined loading of different goods in one piece cargo, load bulk cargo in a
mixed way, or overload the vehicles without authorization when transpiration dangerous goods.

   Article 28 (Driving and Parking of Vehicles)

Vehicles transporting dangerous goods shall travel in accordance with prescribed time, route and areas.

In the course of transporting dangerous goods, vehicles shall not park in denselypopulated areas, with government institutions, stores,
schools, theaters, cinemas, business centers, residential areas and tourist spots.

Vehicles carrying inflammable goods must not go near unshielded fire or hightemperature spots.

   Article 29 (Handing Over of Goods)

The consignor or shipper shall hand over the goods to the carrier in accordance with the “Rules on the Transportation of Dangerous
Goods by Motor Vehicles” enacted by the Ministry of Communications.

Consignment or loading of goods shall be prohibited in any one of the following circumstances:

1. Transporting vehicles are not qualified to carry dangerous goods;

2. The dangerous goods to be loaded do not conform in name, amount or specifications to those listed in the dispatch list or the bill
of lading;

3. The packing or the container for the dangerous goods does not meet the prescribed requirements, or is found to be damage or leaking;

4. Goods that become inflammable when wet already have water stains or traces of having been exposed to rain;

5. There are no dangerous goods symbols on the packing or the marks are indistinct;

6. Requirements on loading (including combined loading and mixed loading) of dangerous goods are not met.

   Article 30 (Rules on the Prohibition of Transportation)

Trailers, motorized tricycles, motorcycles and non-motorized vehicles are prohibited from transporting explosives, first-class oxidizers,
or organic peroxides.

Tractors are prohibited from transporting compressed gas, liquefied gas, first-class inflammables, explosives, first-class oxidizers,
or organic peroxides.

Automatic unloading vehicles are prohibited from transporting any dangerous goods except second-class solid dangerous goods.

Vehicles with tanks (whose volume is above 400 liters, similarly hereinafter) that have failed to pass the qualification tests are
prohibited from transporting dangerous goods.

   Article 31 (Restrictions on Carriers)

Self-employed workers engaged in transportation business are prohibited from transporting dangerous goods that are inflammable, explosive,
highly poisonous or radioactive.

Carrier units from other provinces or cities but stationed in Shanghai are prohibited from road transportation of dangerous goods
of a business nature.

   Article 32 (Statistical Report of Transportation)

Units engaged in business activities of road transportation of dangerous goods (including loading and unloading of dangerous goods
and rendering services to road transportation of dangerous goods) shall, in accordance with the provisions of laws and regulations,
report statistical date to the Municipal Land Transportation Section or the District (County) Land Transportation Subsection.

   Article 33 (Administration of Vehicles Entering Shanghai from Provinces and Other Municipalities)

Vehicles transporting dangerous goods from other provinces or cities that take Shanghai as place of destination must carry certificates
of approval for transportation issued by the local public security departments at the level of county or above, and a license for
road transportation of dangerous goods as well as certificates for road transportation of dangerous goods issued by the local communications
departments. In case explosives are involved, they must carry, in addition to the above-mentioned documents, a certificate of approval
for transportation issued by the public security departments of this Municipality.

Passing vehicles transporting dangerous goods from provinces or cities other than Shanghai that need to stop in Shanghai shall park
in parking lots that meet the requirements of safety fire control and are approved by the Municipal Land Transportation Section or
the District (County) Land Transportation Subsection.

   Article 34 (Reporting and Handling of Transportation Accidents)

When accidents happen in road transportation of dangerous goods, the drivers and loaders shall adopt timely emergency self-help measures
to prevent the accident from spreading, and report the accident timely to the Municipal Land Transportation Section or the District
(County) Land Transportation Subsections well as to the local public security departments and civil defense departments.

The Municipal Land Transportation Section and the District (County) Land Transportation Subsection shall cooperate with the public
security and civil defense departments in handling accidents in road transportation of dangerous goods, and inform timely the administrative
departments of communications of the place where the vehicle is registered of the handling of the accident.

   Article 35 (Administrative Penalty)

Violations of the provisions of the present Procures by units or individual persons engaged in business activities of road transportation
dangerous goods (including loading and unloading of dangerous goods and rendering services to road transportation of dangerous goods)
shall be penalized by the Municipal Land Transportation Section or the District (County) Land Transportation Subsection in accordance
with the following stipulations:

1. Those who engage in business activities of road transportation of dangerous goods (including loading and unloading of dangerous
goods and rendering services to road transportation of dangerous goods) without approval shall be penalized by confiscation of the
unlawful gains and a fine of one to three times the said gains or a fine of RMB 2,000 to 50,000.

2. Those who engage in business activities exceeding the approved scope without approval shall be penalized by confiscation of the
unlawful gains and a fine RMB 500 to 10,000.

3. Drivers not carry with their vehicles certificates for road transportation of dangerous goods or operational certificates for road
transportation of dangerous goods, and loaders not carrying with them operational certificates for road transportation of dangerous
goods shall, in the light of the seriousness of the case, be given a disciplinary warning and be fined RMB 100 to 300.

4. Those who engage in forgery, lending or selling of special seals for road transportation of dangerous goods, certificates for road
transportation of dangerous goods or operational certificates for road transportation of dangerous goods shall be penalized by confiscation
of illegal seals and certificates and a fine of RMB 2,000 to 10,000.

5. Vehicles transporting dangerous goods that do not bear special vehicle in accordance with regulations shall, in the light of the
seriousness of the case, be given a warning and a fine of RMB 300 to 500 for each vehicle.

6. Those who engage in forgery, transfer or filtering of special vehicle mark for road transportation of dangerous goods shall be
penalized by confiscation of unlawful gains and an fine of one to three time the said gains or a fine of RMB 2,000 to 50,000.

7. Those who buy vehicles and engage in business activities of road transportation of dangerous goods without authorization shall,
in the light of the seriousness of the case, be given a warning and a fine of one to three times the unlawful gains or RMB 2,000
to 50,000.

8. For dangerous goods transportation vehicles whose technical performance does not meet the relevant requirements set by the State,
a fine of RMB 500 to 10,000 shall be imposed.

9. For dangerous goods transportation vehicles that are not given second-class maintenance in accordance with the regulations, a fine
of RMB 300 to 500 shall be imposed.

10. Those who fail to submit a statistical report of road transportation of dangerous goods (including loading and unloading of dangerous
goods and rendering services to road transportation of dangerous goods) shall, in the light of the seriousness of the case, be given
a disciplinary warning and a fine of RMB 100 to 500.

11. For refusal to accept annual examination as prescribed by regulations, units engaged in business activities of road transportation
of dangerous goods (including loading and unloading of dangerous goods and rendering services to road transportation of dangerous
goods) shall be fine RMB 500 to 10,000.

12. Carriers or shipping agents who transfer business of road transportation of dangerous goods to units or individuals not legally
qualified for such business shall be fined RMB 500 to 10,000.

13. For violation of rules of operation in loading and unloading dangerous goods resulting in accidents, the operational certificates
for road transportation of dangerous goods of those directly responsible shall be reoaked or canceled, and the unit responsible for
the accident shall be fined RMB 500 to 10,000.

14. For use of vehicles whose total mileage has exceeded 400,000 kilometers, or vehicles that have been in use for 10 years, or vehicles
whose technical performance is below the standards of second-class vehicles, a disciplinary warning shall be given and a fine of
RMB 500 to 2,000 shall be imposed.

For serious violations of clause (2) or (11) of this article, the license for road transportation of dangerous goods and certificate
for road transportation of dangerous goods shall be canceled.

   Article 36 (Instruction to Take Correction Measures Within Prescribed Period)

While enforcing administrative penalties as prescribed in Sections 5, 9, 9, and 11 of Article 35, the Municipal Land Transportation
Section and the District (County) Land Transportation Subsection may adopt administrative measures of instructing the wrongdoer to
rectify within a prescribed period of time.

   Article 37 (Other Administrative Measures)

In case unit or individuals who take in business actives of road transportation of dangerous goods (including loading and unloading
of dangerous goods and services to road transportation of dangerous goods) violate the provisions of the present procedures, the
Municipal Land Transportation Section and the District (County) Land Transportation Subsection may hold in custody temporarily their
operational certificates for road transportation of dangerous goods and certificates for road transportation of dangerous goods,
issue a notice of breaking rules of regulations, and instruct them to go to a designated place to accept penalty within the prescribed
period of time. Vehicles which are without certificates for road transportation of dangerous goods or are not qualified for transportation
of dangerous goods may be ordered to suspend their operation.

When the party concerned fails to go to the designated place to accept penalty three months beyond the prescribed time limit, the
Municipal Land Transportation Section and the District (County) Land Transportation Subsection may dispose of his/her vehicle as
ownerless property.

   Article 38 (Handling of Fines and Confiscation)

When implementing administrative punishment the administrative departments of communications shall award an “Administrative Punishment
Decision”, and when collecting fines or confiscated money, give a uniform receipt for fin

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