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CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUING THE GUIDING SUGGESTIONS FOR THE ISSUES CONCERNING DIRECTORS OF ENTERPRISES WITH FOREIGN INVESTMENT NOT ATTENDING THE BOARD OF DIRECTORS’ MEETINGS

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Issuing the Guiding Suggestions for the Issues Concerning Directors
of Enterprises with Foreign Investment not Attending the Board of Directors’ Meetings

WaiJingMaoFaFa [1998] No.302

April 20, 1998

Foreign Trade and Economic Cooperation Commissions (Departments, Bureaus) of Provinces, Autonomous Regions, Municipalities Directly
under the Central Government and Cities under Contral Plannings:

Recently we have received reports from many local departments responsible for foreign economic relations and trade, complaining about
the constant absence of directors of some Sino-foreign joint ventures, Sino-foreign cooperative enterprises and foreign-funded enterprises
(hereinafter simplified as enterprises) from Boards of Directors’ meetings (or allied management organs, same below) with the result
that Boards of Directors have failed to bring out effective decisions accordingly. Therefore, in order to safeguard the legal rights
and interests of the enterprises, their shareholders and creditors, and at the same time to reduce the problems arising from dealing
with the internal disputes of the enterprises by the administrative departments responsible for examination and approval, the Ministry
of Foreign Trade and Economic Cooperation has, in accordance with the relevant laws and regulations, hereby advanced several guiding
suggestions (see Attachment) for the local administrative departments responsible for examining and approving the foreign-funded
enterprises to consult for reference in dealing with the above mentioned issues. Attachment 1:Guiding Suggestions for Dealing with Issues concerning the Absence of Directors from the Boards of Director’s Meetings

1.

Each enterprise shall, in accordance with the relevant laws and regulations, convene meetings of the Board of Directors at least once
each year; and the procedures for convening a provisional meeting of the Board of Directors shall be in compliance with the provisions
of its contract, articles of association or relevant agreements.

2.

Where a shareholder fails to fulfill or partially fulfill his obligation for contributing funds beyond the deadline stipulated in
the contract for a joint venture of cooperative enterprise, other shareholders may raise the case directly to the original examining
and approving organization and ask for a change of the shareholder or alteration of the shareholder’s right according to the Several
Provisions on Contributing Funds by Various Parties of a Sino-Foreign Joint Venture and the Several Provisions on Altering the Stock
Right of Investors of a Foreign-Funded Enterprise.

3.

In the case where the shareholders of an enterprise fail to delegate directors to attend the meetings of the Board of Directors within
the period stipulated in the contract and articles of association of a joint venture or cooperative enterprise, resulting in the
inability of the meetings of the Board of Directors to make effective decisions, other shareholders may resort to arbitration or
law-suit for the settlement of the case on the basis of the relevant methods and procedures stipulated in the contract of a joint
venture or cooperative enterprise.

4.

In examining and approving the contract and articles of association of an enterprise, the foreign economic relations and trade departments
of various localities shall guarantee that the investors have drawn up and specified the rules of procedure for the Board of Directors
and the conditions and procedures for the dissolution of the enterprise, and they may also advise the enterprise to supplement relevant
clauses of the contract and articles of association with the information contained in Attachment 2 or add other clauses regarded
necessary by the examining and approving organization.

5.

In the case where an enterprise already approved of establishment fails to continue its operation and is destined to be dissolved
for severe losses or other reasons, and the directors appointed by the shareholders of one party or several parties of the joint
venture or cooperative enterprise fail to attend or convene the meetings of the Board of Directors for more than two years, thus
resulting in the inability of the meetings to make effective decisions to dissolve the enterprise, other shareholders may, when receiving
no response to their repeated interpellations and througn the testimony by Chinese notary organs or lawyers, apply to the original
examining and approving organization for the dissolution of the enterprise with the following necessary documents submitted:

(1)

the concerted application and details submitted by other shareholders in regard to the termination of the contract and articles of
association of the joint venture or cooperative enterprise;

(2)

the concerted resolution on the dissolution of the enterprise by the directors appointed by other shareholders;

(3)

the letter of interpellation sent by other shareholders to the directors who have failed to attend the meetings of the Board of Directors;

(4)

the written pledge made by other shareholders for the authenticity of the relevant details about the case, indicating the occurrence
of any joint liabilities of them. In case of any relevant details reported by them to the examining and approving organization disagreeing
with the fact, the shareholders shall assume all the responsibilities for that;

(5)

the authentic document issued by Chinese notary organs or the testimonials by lawyers,

(6)

the contract and articles of association of the joint venture or cooperative enterprise;

(7)

the approval certificate and a duplicate of the business licence of the enterprise;

(8)

other documents required by the examining and approving organization.

After carefully examining the relevant documents and affirming no mistake in them, the examining and approving organization may approve
the dissolution of the said enterprise as it sees fit. In dealing with such an application, the departments of various localities
responsible for foreign economic relations and trade shall take prudent measures based on different circumstances and proceed in
all cases from the interests of the enterprise, their shareholders and creditors and from the viewpoint of the social stability.

6.

As at present there are different provisions stipulated by departments of various localities responsible for foreign economic relations
and trade Concerning the examination and approval of the establishment of enterprises and issuing the certificates, the dissolution
of an enterprise shall be subject to the consent of the competent authorities at the provincial level responsible for foreign economic
relations and trade in the case where the original examining and approving organ is below the provincial level.

Attachment 2:Reference Form of Clauses of Procedure Rules of the Board of Directors in an Enterprise Contract(Articles of Association)

Article _

The business licence of the company (enterprise) is issued on the same date as that of the establishment of the Board of Directors
of the company.

Article _

The Board of Directors is composed of __ directors, of which party A appoints __ directors, and party B appoints __ directors ￿￿
One chairman which is designated by party __, and __ vice chairmen which are designated by party __.

Article _

A director has __ -year tenure of office, and once reappointed by the appointing party, can renew his term of office.

Article _

The Board of Directors in the company’s highest power organ, capable of making every important decision.

The following matters shall be decided upon through concerted agreement by the directors participating in the meetings of the Board
of Driectors.

(1)

amending the company’s articles of association;

(2)

dissolving the company;

(3)

adjusting the registered capital of the company;

(4)

transferring stock rights of the company by one party or several parties;

(5)

pledging one party’s or several parties’s stock rights of the company to the creditors;

(6)

merging or separating the company;

(7)

pledging the company’s capital.

Article _

The chairman of the Board is the legal representative of the company. When failing to fulfill his obligations, the chairman of the
Boare shall authorize another person to fulfill the obligations for him, or in the case where the chairman authorizes no definite
person, the vice-chairman shall act on behalf of the chairman to perform the obligations.

Article _

Meetings of the Board of Directors shall be held at least once each year (the annual meeting), in the residence of the company or
in other places appointed by the Board, with the chairman conevning and presiding over the meeting. With the motion of more than
__ directors (one third of the entire directors), the chairman shall convene an interim meeting of the directors.

The notice for convening the meeting of the Board of Directors shall include the time, place and agenda of the meeting, and copies
of the notice in written form shall be distributed to all the directors 10 days before the meeting.

The minutes of the meeting shall be kept on file.

Article _

The annual meeting and the interim meeting of the Board of Directors can only be held with the presence of more than __ directors
(two thirds of the directors).

Each director has one vote.

Article _

Each party has the duty to guarantee the presence of the directors delegated by it in the annual meeting and the interim meeting
of the Board of Directors.

A director, who fails to attend the meeting of the Board of Directors for some reason or other, shall present a certificate of entrustment
entrusting another person to attend the meeting on his behalf.

Article _

In the case where the directors delegated by one party or several parties fail to attend the meeting of the Board of Directors, and
moreover, fail to entrust other persons to attend the meeting on their behalf, thus making the Board of Directors unable to decide
on the company’s major issues or matters mentioned in the relevant laws and regulations and the said contract (articles of association)
within __ days, other parties (the informants) may send out again copies of the notice in written form to the directors absent from
the meeting of the Board of Directors and to the party or parties delegating them (the informed), according to the legal addresses
(residences) of the said parties, so as to urge them to attend the meetings of the Board of Directors at the stipulated date.

Article _

The notice of request mentioned in the previous article shall be sent out by double-registered letter 60 days before the date of
the meeting of the Board of Directors, indicating the necessity of response in written form by the informed within at least 45 days
after the sending of the notice. In the case where no response has been received from the informed within the stipulated time, it
is regarded that the informed has given up his right to vote, and after the informants have received the note acknowledging receipt
of the double-registered letter, the directors delegated by them may convene a special meeting of the Board of Directors. Even if
the number of directors attending the special meeting does not reach the legal minimum, effective decisions can also be made on major
issues or matters of the company through the concerted approval by all the directors attending the special meeting.

Article _

Directors who do not work in the management organs of the company shall receive no pay from the company.

Any expenses related to the holding of the meetings of the Board of Directors shall be borne by the company.



 
The Ministry of Foreign Trade and Economic Cooperation
1998-04-20

 






MEASURES FOR THE AREA REGISTRATION ADMINISTRATION OF MINERAL RESOURCES EXPLORATION AND SURVEY

Category  GEOLOGY, MINERAL RESOURCES AND ENERGY INDUSTRY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-02-12 Effective Date  1998-02-12  


Measures for the Area Registration Administration of Mineral Resources Exploration and Survey



(Promulgated by Decree No. 240 of the State Council of the People’s

Republic of China on February 12, 1998.)

    Article 1  These Measures are formulated in accordance with the Mineral
Resources Law of the People’s Republic of China with a view to strengthening
the administration of mineral resources exploration and survey, protecting
the lawful rights and interests of persons with mineral exploration right,
maintaining order in mineral resources exploration and survey and promoting
the development of the mining industry.

    Article 2  These Measures must be adhered to in mineral resources
exploration and survey within the territory of the People’s Republic of
China and other sea areas under its jurisdiction.

    Article 3  The State practises the system of uniform area registration
administration in mineral resources exploration and survey. An area with
the delimitation of 1′ longitude x 1′ latitude shall be the basic unit area
of the scope of a work area in mineral resources exploration and survey.
The maximum scope of each exploration and survey project permissible for
registration shall be:

    (1)a 10-basic unit area for mineral water;

    (2)a 40-basic unit area for metal minerals, non-metal minerals and
radioactive minerals;

    (3)a 200-basic unit area for geothermal energy, coal and fluid and
gaseous minerals; and

    (4)a 2,500-basic unit area for petroleum and natural gas minerals.

    Article 4  Exploration and survey of the following mineral resources
shall be subject to the examination, approval and registration of the
competent department of geology and mineral resources under the State Council
and an exploration and survey permit shall be issued:

    (1)cross-province, cross-autonomous region and cross-municipality
directly under the Central Government mineral resources;

    (2)mineral resources within the territorial waters and other sea areas
under the jurisdiction of China;

    (3)mineral resources the exploration and survey of which are to be
conducted with investment by foreign businesses; and

    (4)the mineral resources listed in the appendix to these Measures.

    Whoever engages in the exploration and survey of mineral resources
shall be registered by the competent department of geology and mineral
resources under the State Council and issued an exploration and survey
permit upon the exaamination and consent of the organ designated by the
State Council.

    Exploration and survey of the following mineral resources shall be
subject to the examination, approval and registration of the competent
departments of geology and mineral resources of people’s governments of
the provinces, autonomous regions and municipalities directly under the
Central Government and issued an exploration and survey permit, and the case
shall be submitted to the competent department of geology and mineral
resources under the State Council for the record within 10 days from the
date of issuance of the permit:

    (1)mineral resources other than those specified in the first clause and
second clause of this Article; and

    (2)mineral resources the examination, approval and registration of which
shall be subject to the competent departments of geology and mineral
resources of people’s governments of the provinces, autonomous regions and
municipalities directly under the Central Government authorized by the
competent department of geology and mineral resources under the State Council.

    Article 5  The exploration and survey contributer shall be the applicant
for the mineral exploration right; however, where the State contributes to the
exploration and survey, the exploration and survey unit entrusted by the State
shall be the applicant for the mineral exploration right.

    Article 6  An exploration right applicant shall, in applying for the
mineral exploration right, present the following materials to the registration
administration organ:

    (1)a letter of application for registration and a map indicating the
scope of the area to be applied for;

    (2)a photocopy of the certificate of qualification of the exploration
and survey unit;

    (3)the work plan for exploration and survey, the exploration and survey
contract or the certificate of commission for exploration and survey;

    (4)implementation schemes and appendixes for exploration and survey;

    (5)proof of the source of funding for the exploration and survey; and

    (6)other materials the presentation of which are prescribed by the
competent department of geology and mineral resources under the State Council.

    Whoever applies for the exploration and survey of petroleum and natural
gas should as well present the approval document of the State Council for
the establishment of a petroleum company or conducting of exploration and
survey of petroleum and natural gas and certificate of qualification of the
legal person of the exploration and survey unit.

    Article 7  Whoever applies for roll-on exploration and exploitation of petroleum and natural gas should present the following materials
to the
registration administration organ, go through the formalities of registration
and obtain a mining permit for roll-on exploration and exploitation upon
approval:

    (1)a letter of application for registration and a map indicating the
scope of the mining area for exploration and exploitation;

    (2)the project proposal approved by the competent department of planning
under the State Council;

    (3)authentication materials for roll-on exploration and exploitation;

    (4)the report on reserves for roll-on exploration and exploitation of petroleum and natural gas approved
by the examination and approval organ
of mineral reserves under the State Council; and

    (5)a utilization scheme for roll-on exploration and exploitation.

    Article 8  The registration administration organ should, within 40 days
from the date of receipt of the application, make a decision on the approval
for registration or non-registration in accordance with the principle of whoever applies first, and inform the applicant for mineral
exploration right.
With respect to applicants for the exploration and survey of petroleum and
natural gas, the registration administration organ should likewise make an
announcement or respond to inquiries in time upon receipt of the applications.

    The registration administration organ should guarantee the registration
of the first-category projects in the state geological survey plan. Specific
measures shall be worked out by the competent department of geology and
mineral resources under the State Council in conjunction with the competent
department of planning under the State Council.

    In case of necessity of revision or supplement of materials by an
applicant for mineral exploration right prescribed in Article 6 of these
Measures, the registration administration organ should inform the applicant
for mineral exploration right of effecting the revision or supplement within
the specified time period.

    An applicant for mineral exploration right approved for registration
should, within 30 days from the date of receipt of the notice, pay the mineral
exploration right user’s fee in pursuance of the provisions of Article 12 of
these Measures and pay the mineral exploration right purchase price for state-
contributed exploration and survey in pursuance of the provisions of Article
13 of these Measures, go through the formalities of registration, obtain the
exploration and survey permit and become the person with mineral exploration
right.

    In the case of non-registration, the registration administration organ
should explain the reasons to an applicant for mineral exploration right.

    Article 9  Any unit or individual shall be prohibited to enter the
exploration and survey operations areas of others who have obtained the
mineral exploration right in accordance with law to conduct exploration
and survey or mining activities.

    In the event of a dispute over the scope of an exploration and survey
operations area and the scope of a mining area between a person with mineral
exploration right and a person with mining right, a settlement shall be
worked out by the interested parties through consultation; in case of failure
of the consultation, an arbitration shall be made by the higher registration
administration organ among the registration administration organs that issue
permits.

    Article 10  The maximum validity of an exploration and survey permit
shall be 3 years; however, the maximum validity of an exploration and survey
permit for petroleum and natural gas shall be 7 years. In case of necessity
for an extention of the time for the exploration and survey work, the person
with mineral exploration right should, 30 days prior to the expiration of the
validity of the exploration and survey permit, go through the formalities of
registration for extention at the registration administration organ. The
duration of each extension shall not exceed 2 years.

    Any person with mineral exploration right who fails to go through the
formalities of registration for extension on expiry, the exploration and
survey permit shall be automatically annulled.

    The maximum validity of a mining permit for roll-on exploration and
exploitation of petroleum and natural gas shall be 15 years; however, for
areas with known reserves, an application shall be submitted for the
processing of a mining permit.

    Article 11  The registration administration organ should, within 10 days
from the date of issuance of an exploration and survey permit, notify the
department responsible for the administration of geology and mineral resources
of the county-level people’s government of the locality wherein the
exploration and survey project is located of such particulars as the name of
the project, the person with mineral exploration right, the scope of the area
and the duration of the exploration and survey permit for which a registration
has been entered into and a permit has been issued.

    The registration administration organ should make announcements at regular
intervals on the status of exploration and survey area registration and
issuance of permits.

    Article 12  The State practises the paid-for acquisition system of mineral
exploration right. The mineral exploration right user’s fee shall be
calculated according to the exploration and survey year and paid every year.

    Rates of mineral exploration right user’s fee: a payment of RMB 100 Yuan
per square kilometer a year shall be effected from the first exploration and
survey year to the third exploration and survey year; an additional RMB 100
Yuan per square kilometer shall be paid from the fourth exploration and survey
year; however, the maximum amount per square kilometer shall not exceed RMB
500 Yuan a year.

    Article 13  For application for mineral exploration right of areas of
state-contributed exploration and survey and areas of known minerals, an
applicant for mineral exploration right should, in addition to the payment of
the mineral exploration right user’s fee in pursuance of the provisions of
Article 12 of these Measures, also pay the mineral exploration right purchase
price for state-contributed exploration and survey confirmed after evaluation;
the mineral exploration right purchase price may be paid in lump-sum or in
instalments pursuant to relevant state provisions.

    Evaluation of the mineral exploration right purchase price for state-
contributed exploration and survey shall be carried out by evaluation agencies
certified by the competent department of geology and mineral resources under
the State Council in conjunction with the department of state assets
management; the evaluation results shall be confirmed by the competent
department of geology and mineral resources under the State Council.

    Article 14  The mineral exploration right user’s fee and the mineral
exploration right purchase price for state-contributed exploration and survey
shall be collected by the registration administration organs and integrated
into state budget management in total. Specific measures for the management
and use shall be worked out by the competent department of geology and mineral
resources under the State Council in conjunction with the department of
finance and the competent department of planning under the State Council.

    Article 15  In case of any of the following circumstances, a person with
mineral exploration right shall file an application and may enjoy reduction
in or exemption from the payment of mineral exploration right user’s fee and
mineral exploration right purchase price subject to the examination and
approval of the registration administration organ pursuant to the measures
for the reduction and exemption of mineral exploration right user’s fee and
mineral exploration right purchase price formulated by the competent
department of geology and mineral resources under the State Council in
conjunction with the department of finance under the State Council:

    (1)categories of minerals the exploration and survey of which are
encouraged by the State;

    (2)areas the exploration and survey of which are encouraged by the State;
and

    (3)other circumstances specified by the competent department of geology
and mineral resources under the State Council in conjunction with the
department of finance under the State Council.

    Article 16  Paid-for obtainment of mineral exploration right may be
effected in the form of invitation to tender and bidding.

    The registration administration organs shall determine the areas for
invitation to tender pursuant to the terms of reference prescribed in Article
4 of these Measures, issue a tender notice and put forth bidding requirements
and date of termination; however, areas for invitation to tender from abroad
shall be determined by the competent department of geology and mineral
resources under the State Council.

    The registration administration organs shall organize the evaluation of biddings and determine the winning
bidder in accordance with the principle
of selection on merit. The winning bidder shall, upon payment of the fees
prescribed in Articles 12 and 13 of these Measures, go through the formalities
of registration, obtain an exploration and survey permit, become a person
with mineral exploration right and fulfil the obligations undertaken in the
tender.

    Article 17  A person with mineral exploration right should, from the
date of obtainment of the exploration and survey permit, complete the minimum
exploration and survey input pursuant to the following provisions:

    (1)RMB 2,000 Yuan per square kilometer in the first exploration and
survey year;

    (2)RMB 5,000 Yuan per square kilometer in the second exploration and
survey year; and

    (3)RMB 10,000 Yuan per square kilometer each exploration and survey year
starting from the third exploration and survey year.

    In case of the exploration and survey input in the current year by a
person with mineral exploration right is higher than the minimum exploration
and survey input rate, the portion higher than the rate may be calculated
in the exploration and survey input of the following exploration and survey
year.

    A person with mineral exploration right should, within 30 days starting
from the date of resumption of normal exploration and survey work, submit
a report to the registration administration organ applying for the
verification and reduction of corresponding minimum exploration and survey
input owing to natural disasters and other causes of force majeure resulting
in the impossibility of carrying on normal exploration and survey work; the
registration administration organ should give an official reply within 30
days starting from the date of receipt of the report.

    Article 18  A person with mineral exploration right should, within six
months starting from the date of obtainment of the exploration and survey
permit, begin the construction; a report should be submitted to the department
responsible for the administration of geology and mineral resources of the
county-level people’s government of the locality wherin the exploration and
survey project is located at the start of the exploration and survey work and
a report on the start of construction should be submitted to the registration
administration organ.

    Article 19  A person with mineral exploration right may apply for
exploitation upon discovery of complex-type mineral deposits conforming to
the state-prescribed requirements that exploitation should be proceeded
along with exploration in the process of exploration and survey during the
period of validity of the exploration and survey permit and go through the
formalities of registration for mining upon approval of the registration
administration organ.

    Article 20  A person with mineral exploration right should, in case of necessity of trial exploitation during the exploration and
survey of such
fluid minerals as petroleum and natural gas, file an application for trial
exploitation at the registration administration organ and may engage in
trial exploitation for one year upon approval; in case of necessity of extension of the time for trial exploitation, formalities
of registration
must be completed.

    Article 21  A person with mineral exploration right may terminate the
minimum exploration and survey input for the corresponding areas upon
ascertaining exploitable ore body during the period of validity of the
exploration and survey permit subject to the approval of the registration
administration organ and may apply for the reservation of the mineral
exploration right 30 days prior to the expiry of validity of the exploration
and survey permit. However, where there are circumstances that necessitate
postponement of exploitation by the State for public interest or there
are temporary difficulties in exploitation due to technical conditions
are exceptions.

    The maximum time period for the reservation of the mineral exploration
right shall not exceed two years. In case of necessity for the extension of the reservation period, applications for extensions may
be filed twice with
each extension not exceeding two years; the scope of reservation of the
mineral exploration right shall be the scope of the exploitable ore body.

    A person with mineral exploration right should, pursuant to the provisions
of these Measures, pay the mineral exploration right user’s fee during the
termination of the minimum exploration and survey input or during reservation
of the mineral exploration right.

    The exploration and survey permit should be nullified on expiry of the
period of reservation of the mineral exploration right.

    Article 22  A person with mineral exploration right should, within the
period of validity of the exploration and survey permit, apply for
registration in changes at the registration administration organ in
case of any of the following circumstances:

    (1)expansion or reduction of the scope of exploration and survey areas;

    (2)change in target(s) of the exploration and survey work;

    (3)transfer of mineral exploration right approved in accordance with law;
and

    (4)change in the name or address of the person with mineral exploration
right.

    Article 23  The exploration and survey year, the mineral exploration
right user’s fee and the minimum exploration and survey input shall be
calculated consecutively for the registration of extension of mineral
exploration right and registration of the change(s).

    Article 24  A person with mineral exploration right should, within the
period of validity of the exploration and survey permit, present a report on
the completion of the exploration and survey project or a report on the
termination of the exploration and survey project to the registration
administration organ and submit statements on fund input and relevant
testimonial documents and go through the formalities of nullification
registration of the exploration and survey permit upon verification of the actual exploration and survey input by the registration
administration
organ in case of any of the following circumstances:

    (1)failure to go through registration for extension or to apply for
the reservation of the mineral exploration right on expiry of the validity
of the exploration and survey permit;

    (2)whoever applies for the mining right; and

    (3)revocation of the exploration and survey project necessitated by
unforeseen reasons.

    The original person with mineral exploration right must not apply for
the mineral exploration right within the scope of areas already nullified
within 90 days starting from the date of the nullification of the exploration
and survey permit.

    Article 25  When the registration administration organ needs to
investigate the exploration and survey input and the progress in the
exploration and survey work, a person with mineral exploration right
should report truthfully and provide relevant materials, and must not
make false reports or deceptive reports, nor shall he/she refuse the
inspection.

    With respect to the request of a person with mineral exploration right
for confidentiality of materials for the application for registration,
information on the results of the exploration and survey work and the
financial statements, the registration administration organ should keep
the secrets.

    Article 26  Whoever engages in exploration and survey work without
authorization and obtainment of the exploration and survey permit or
engages in exploration and survey work beyond the approved scope of exploration and survey area(s) in violation of the provisions
of these
Measures shall be ordered by the department responsible for the administration
of geology and mineral resources of people’s government at or above the county
level pursuant to the terms of reference prescribed by the competent
department of geology and mineral resources under the State Council to stop
the illegal acts, administered a warning and may concurrently be imposed a
fine of less than RMB 100,000 Yuan.

    Article 27  Whoever engages in roll-on exploration and exploitation,
exploitation along with exploration or trial exploitation without approval
and authorization in violation of the provisions of these Measures shall be
ordered by the department responsible for the administration of geology and
mineral resources of people’s government at or above the county level pursuant
to the terms of reference prescribed by the competent department of geology
and mineral resources under the State Council to stop the illegal acts,
administered a warning, confisticated of the illegal gains and may
concurrently be imposed a fine of less than RMB 100,000 Yuan.

    Article 28  Whoever prints or forges and use the exploration and
survey permit assuming another name without authorization in violation of the
provisions of these Measures shall be confisticated of the illegal gains
and may concurrently be imposed a fine of less than RMB 100,000 Yuan by the
department responsible for the administration of geology and mineral resources
of people’s government at or above the county level pursuant to the terms of reference prescribed by the competent department of
geology and mineral
resources under the State Council; where a crime has been constituted,
criminal liability shall be investigated according to law.

    Article 29  Whoever commits any of the following acts in violation of the provisions of these Measures shall be ordered to make a
rectification
within the specified time period by the department responsible for the
administration of geology and mineral resources of people’s government at
or above the county level pursuant to the terms of reference prescribed by the
competent department of geology and mineral resources under the State Council;
whoever fails to make a rectification on expiry of the specified time
period shall be imposed a fine of less than RMB 50,000 Yuan; where the
circumstances are serious, the organ that originally issued the permit
may revoke the exploration and survey permit:

    (1)whoever fails to submit or report the relevant information for the
record in accordance with the provisions of these Measures, refuses to
accept supervision and inspection or practises fraud;

    (2)whoever fails to fulfil the minimum exploration and survey input; and

    (3)an exploration and survey project which has already obtained the
exploration and survey permit fails to start construction on expiry of six
months, or termination of the exploration and survey work for six months
after construction without reason.

    Article 30  Whoever fails to go through the formalities of registering
the changes in the exploration and survey permit or nullification of the
registration in violation of the provisions of these Measures shall be
ordered by the registration administration organ to make a rectification
within the specified time period; whoever fails to make a rectification
on expiry of the specified time period shall be revoked of the exploration
and survey permit by the organ that originally issued the permit.

    Article 31 Whoever fails to pay the payable fees prescribed by these
Measures on time in violation of the provisions of these Measures shall be
ordered by the registration administration organ to make the payment within
the specified time period, and to pay an additional    ??   percent of fine
for delaying payment each day from the date of overdue payment; whoever
still fails to make the payment shall be revoked of the exploration and
survey permit by the organ that originally issued the permit.

    Article 32  Whoever explores and surveys petroleum and natural gas
minerals in violation of the provisions of these Measures shall be imposed
administrative penalties by the competent department of geology and mineral
resources under the State Council pursuant to the relevant provisions of
these Measures.

    Article 33  A person with mineral exploration right whose exploration and
survey permit has been revoked must not apply for mineral exploration right
again within six months from the date of revocation of the exploration and
survey permit.

    Article 34  Any functionary of a registration administration organ who
indulges in self-seeking misconducts, abuses power, neglects duties which
constitute a crime shall be investigated of the criminal liability according
to law; where a crime has not been constituted, aadministrative sanctions
shall be imposed according to law.

    Article 35  The exploration and survey permits shall be uniformly printed
by the competent department of geology and mineral resources under the State
Council. Formats of the letter of application for registration, letter of
application for registration of change(s), letter of application for
registration of reservation of mineral exploration right and letter of
application for nullification of registration shall be uniformly worked out
by the competent department of geology and mineral resources under the State
Council.

    Article 36  Whoever goes through formalities of registration for
exploration and survey should pay a registration fee pursuant to provisions.
The rates and management of fee collection and measures for their use
shall be determined by the competent department of price control under the
State Council in conjunction with the competent department of geology and
mineral resources and the department of finance u

MEDICAL PRACTITIONERS

Category  PUBLIC HEALTH AND MEDICINE Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1998-06-26 Effective Date  1999-05-01  


Law of the People’s Republic of China on Medical Practitioners

Contents
Chapter I  General Provisions
Chapter II  Examination and Registration
Chapter III  Practising Rules
Chapter IV  Evaluation and Training
Chapter V  Legal Liability
Chapter VI  Supplementary Provisions

(Adopted at the 3rd Meeting of the Standing Committee of the Ninth

National People’s Congress on June 26, 1998 and promulgated by Order No. 5 of
the President of the People’s Republic of China on June 26, 1998)
Contents

    Chapter I  General Provisions

    Chapter II  Examination and Registration

    Chapter III  Practising Rules

    Chapter IV  Evaluation and Training

    Chapter V  Legal Liability

    Chapter VI  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted for the purpose of strengthening a
contingent of doctors, improving occupational morals and professional skills
of doctors, safeguarding legitimate rights and interests of doctors, and
protecting the people’s health.

    Article 2  This Law is applicable to professional medical workers who are
qualified as medical practitioners or assistant medical practitioners
according to law and registered to practise medicine in institutions of
medical treatment, prevention or health care.

    “Doctors” referred to in this Law include medical practitioners and
assistant medical practitioners.

    Article 3  Doctors should possess good occupational morals and
professional medical knowledge, practise humanitarianism, and perform the
sacred duties of preventing and treating diseases, healing the wounded and
rescuing the dying and protecting the people’s health.

    The whole society should respect doctors. Doctors are protected by law in
performing duties according to law.

    Article 4  The administrative department of health under the State Council
shall be responsible for the work for doctors throughout the country.

    Administrative departments of health under local people’s governments at
or above the county level shall be responsible for the work for doctors within
their respective administrative regions.

    Article 5  The state rewards doctors who have made contributions to
medical treatment, prevention of diseases and health care.

    Article 6  Medical professional and technical post_titles of doctors and the
appraisal and appointment of medical professional and technical posts for
doctors shall be handled according to relevant state provisions.

    Article 7  Doctors may organize and join the doctors’ association
according to law.
Chapter II  Examination and Registration

    Article 8  The state practises an examination system for the
qualifications of doctors. The examination for the qualifications of doctors
shall be composed of the examination for the qualifications of medical
practitioners and the examination for the qualifications of assistant medical
practitioners.

    Measures for the unified examination for the qualifications of doctors
shall be worked out by the administrative department of health under the State
Council. The examination for the qualifications of doctors shall be organized
by administrative departments of health under people’s governments at or above
the provincial level.

    Article 9  Anyone who satisfies any of the following conditions may
participate in the examination for the qualifications of medical practitioners:

    (1) Anyone who has received at least regular medical college education in
an institution of higher learning, and has, under the supervision of a medical
practitioner, served at least one year on probation in an institution of
medical treatment, prevention or health care; or

    (2) On the strength of the practising certificate of assistant medical
practitioners, anyone who has received junior college medical training in an
institution of higher learning and has served at least two years in an
institution of medical treatment, prevention or health care; or has received
medical training in a secondary training school and has served at least five
years in an institution of medical treatment, prevention or health care.

    Article 10  Anyone who has received junior college medical training in an
institution of higher learning or received medical training in a secondary
training school and has, under the supervision of a medical practitioner,
served at least one year on probation in an institution of medical treatment,
prevention or health care, may participate in the examination for the
qualifications of assistant medical practitioners.

    Article 11  Anyone who has studied traditional medicine under a teacher
for at least three years or has really acquired specialized knowledge of
medicine in his many years’ career, if he is recommended upon examination by
an organization of traditional medicine profession or an institution of
medical treatment, prevention or health care which shall be designated by the
administrative department of health under the people’s government at or above
the county level, may participate in the examination for the qualifications of
medical practitioners or the examination for the qualifications of assistant
medical practitioners. The examination contents and form shall be separately
fixed by the administrative department of health under the State Council.

    Article 12  Examinees who pass the examination for the qualifications of
doctors shall be awarded the qualifications of medical practitioners or
assistant medical practitioners.

    Article 13  The state practises a registration system for doctors to
practise medicine.

    Anyone who has been awarded the qualifications as a doctor may apply to
the administrative department of health under the local people’s government at
or above the county level for registration.

    Except under the circumstances prescribed in Article 15 of this Law, the
administrative department of health accepting the application should grant
registration within 30 days from the date of receiving the application and
issue the practising certificate of doctors uniformly printed by the
administrative department of health under the State Council.

    Institutions of medical treatment, prevention or health care may go
through registration procedures for all of their own doctors.

    Article 14  Doctors may, upon registration, work in institutions of
medical treatment, prevention or health care according to the registered
place, category and scope of business to engage in relevant services of
medical treatment, prevention or health care.

    Anyone who fails to be registered as a doctor and obtain the practising
certificate shall not practise medicine.

    Article 15  Under any of the following circumstances, registration shall
not be granted:

    (1) where a person has not full capacity for civil conduct;

    (2) where, for a person having been sentenced to criminal punishment, it
is not more than two years from the date of the end of the punishment to the
date of applying for registration;

    (3) where, for a person having been imposed administrative punishment by
which his practising certificate of doctors was revoked, it is not more than
two years from the date of the decision on the punishment to the date of
applying for registration; or

    (4) where other circumstances unsuitable for services of medical
treatment, prevention or health care exist as prescribed by the administrative
department of health under the State Council.

    If registration is not granted to the applicant who fails to satisfy the
conditions, the administrative department of health accepting the application
should notify the applicant in writing within 30 days from the date of
receiving the application and explain the reasons for this decision. Any
applicant who has an objection to this decision may apply for reconsideration
or bring a lawsuit before a people’s court according to law within 15 days
from the date of receiving the notice.

    Article 16  Under any of the following circumstances, the institution of
medical treatment, prevention or health care to which a doctor obtaining
registration belongs should, within 30 days, report the circumstance to the
administrative department of health granting the registration. The
administrative department of health should cancel the registration and
withdraw the practising certificate of doctors.

    (1) where the doctor dies or is declared as missing;

    (2) where the doctor is sentenced to criminal punishment;

    (3) where the doctor is imposed administrative punishment by which his
practising certificate of doctors is revoked;

    (4) where the doctor fails again in a new evaluation upon expiration of
the period of time during which his practice is suspended according to the
provisions of Article 31 of this Law;

    (5) where the doctor has ceased his practice for at least two years; or

    (6) under other circumstances unsuitable for services of medical
treatment, prevention and health care as prescribed by the administrative
department of health under the State Council.

    The person who has an objection to the cancellation of his registration
may apply for reconsideration or bring a lawsuit before a people’s court
within 15 days from the date of receiving the notice of the cancellation of
registration.

    Article 17  Any doctor who intends to change his registration of the
place, category or scope of business should go through the procedure for the
change of registration at the administrative department of health granting the
registration according to the provisions of Article 13 of this Law.

    Article 18  Where anyone has ceased his practice of medicine for more than
two years or the circumstance prescribed in Article 15 of this Law has
disappeared, if he intends to apply for resumption of his practice, he should
succeed in the evaluation by the institution prescribed in Article 31 of this
Law and renew his registration according to the provisions of Article 13 of
this Law.

    Article 19  Any medical practitioner who intends to apply for opening his
practice individually must, upon registration, practise medicine in an
institution of medical treatment, prevention or health care for at least five
years and go through examination and approval procedures according to relevant
state provisions; without approval, no one may open his practice.

    Administrative departments of health under local people’s governments at
or above the county level should make supervisions and inspections of
individual doctors at regular intervals as required by the administrative
department of health under the State Council and should cancel registration in
time and withdraw the practising certificates of doctors upon discovery of the
circumstances prescribed in Article 16 of this Law.

    Article 20  Administrative departments of health under local people’s
governments at or above the county level should announce to the public the
name lists of persons whose registration has been granted or cancelled.
Administrative departments of health under provincial people’s governments
should collect these lists and report the combined lists to the administrative
department of health under the State Council for the record.
Chapter III  Practising Rules

    Article 21  A doctor enjoys the following rights in practising medicine:

    (1) within the registered scope of business, making medical diagnosis,
diseases examination and medical prescription, providing the relevant medical
certifications and selecting reasonable plans for medical treatment,
prevention or health care;

    (2) obtaining medical instruments and necessary conditions commensurate
with his practice of medicine according to the standards set by the
administrative department of health under the State Council;

    (3) engaging in medical research and academic exchanges and joining
professional learned societies;

    (4) participating in professional training and receiving continued medical
education;

    (5) protecting the personal dignity and the personal security from
encroachment in practising medicine;

    (6) earning wages, remuneration and subsidies and enjoying the welfare
set by the state; and

    (7) putting forward opinions and proposals for the work of his own
institution of medical treatment, prevention or health care and the work of
the administrative department of health and participating in the democratic
management of his own institution according to law.

    Article 22  A doctor shall perform the following obligations in practising
medicine:

    (1) observing laws and regulations and following the technical and
operating rules;

    (2) cultivating the sense of responsibility in the work, following
professional disciplines, performing a doctor’s duties and serving patients
conscientiously;

    (3) caring for, loving and respecting patients and guarding patients’
privacy;

    (4) endeavouring to gain professional proficiency, updating knowledge and
increasing professional and technical competence; and

    (5) disseminating hygienic and health care knowledge and instructing
patients in health care.

    Article 23  Doctors adopting measures of medical treatment, prevention or
health care or signing the relevant medical certificates must make diagnosis
and examination in person and work out medical documents in time according to
provisions, and shall not conceal, forge or destroy medical documents and
relevant materials.

    Doctors shall not work out medical documents irrelevant to their own
scopes of business or not consistent with their own categories of business.

    Article 24  Doctors should adopt emergency measures to examine and treat
patients who are suffering from acute diseases or dangerously ill and shall
not refuse to give emergency treatment.

    Article 25  Doctors should use medicines, disinfectants and medical
instruments the use of which has been approved by the relevant departments of
the state.

    Narcotics, toxic drugs for medical use, psychotropic substances and
radioactive drugs shall not be used except for proper diagnosis and treatment.

    Article 26  Doctors should truthfully explain the patients’ conditions to
the patients and their family members provided that attention is paid to avoid
an adverse effect on the patients.

    Doctors should obtain the approval of the hospitals and the consent of the
patients themselves or their family members for experimental clinic treatment.

    Article 27  Doctors shall not take advantage of their positions to extort
or illegally accept the patients’ property or seek other illegitimate gains.

    Article 28  In the event of a natural disaster, the spreading of an
infectious disease, an unexpected heavy casualty or other emergencies
seriously threatening the people’s lives and health, doctors should accept
assignments by order of the administrative department of health under the
people’s government at or above the county level.

    Article 29  Doctors causing an accident in medical treatment or
discovering the epidemic situation of infectious diseases should timely report
the case to their own institutions or to the administrative department of
health according to relevant provisions.

    Doctors discovering suspected involvement of their patients in a case of
injury or discovering an unnatural death of their patients should report the
case to the competent authorities according to relevant provisions.

    Article 30  Assistant medical practitioners should, under the supervision
of medical practitioners, practise medicine according to the categories of
business in institutions of medical treatment, prevention or health care.

    Assistant medical practitioners who work in institutions of medical
treatment, prevention or health care of townships, nationality townships or
towns may, in the light of the conditions and needs of medical treatment,
engage in general practice of medicine on their own.
Chapter IV  Evaluation and Training

    Article 31  Institutions or organizations entrusted by the administrative
department of health under the people’s government at or above the county
level should make evaluation of doctors at regular intervals in respect of
their professional skills, achievements in work and occupational morals in
accordance with practising standards of doctors.

    Evaluation institutions should report evaluation results of doctors to the
administrative department of health granting registration for the record.

    The administrative department of health under the people’s government at
or above the county level may order doctors who fail in evaluation to suspend
their practice of medicine for three to six months and to accept training and
continued medical education. Up expiration of the period of time for the
suspending of practice, a new evaluation shall be made. Those who succeed in
the new evaluation shall be permitted to resume their practice of medicine. If
anyone fails in the evaluation, the administrative department of health under
the people’s government at or above the county level shall cancel his
registration and withdraw his practising certificate of doctors.

    Article 32  The administrative department of health under the people’s
government at or above the county level shall be responsible for guiding,
inspecting and supervising evaluation of doctors.

    Article 33  Under any of the following circumstances, the administrative
department of health under the people’s government at or above the county
level should commend or give awards to the doctors.

    (1) where a doctor shows noble character and has made outstanding
achievements in his practice of medicine;

    (2) where a doctor has made an important breakout in medical professional
skills and thereby made remarkable contributions;

    (3) where a doctor has behaved exceedingly well to heal the wounded and
rescue the dying, make diagnosis and give emergency treatment at the time of
the occurrence of a natural disaster, the spreading of an infectious disease,
the occurrence of an unexpected heavy casualty or other emergencies seriously
threatening the people’s lives and health;

    (4) where a doctor has worked hard for a long time in a grass-roots unit
with poor conditions of a remote and impoverished region or a minority
nationality region; or

    (5) under other circumstances where commendation or awards should be given
as prescribed by the administrative department of health under the State
Council.

    Article 34  The administrative department of health under the people’s
government at or above the county level should work out plans for training of
doctors, train doctors in various forms and provide conditions for doctors to
receive continued medical education.

    The administrative department of health under the people’s government at
or above the county level should adopt effective measures to train medical
workers who are engaged in services of medical treatment, prevention or health
care in rural areas and minority nationality regions.

    Article 35  Institutions of medical treatment, prevention or health care
should guarantee training and continued medical education of their own doctors
according to provisions and planning.

    Medical and health institutions entrusted by the administrative department
of health under the people’s government at or above the county level to
undertake the evaluation of doctors should provide and create conditions for
training and continued medical education of doctors.
Chapter V  Legal Liability

    Article 36  If anyone obtains the practising certificate for doctors by
unjustified means, the administrative department of health issuing the
practising certificate shall revoke the practising certificate. The person in
charge directly responsible and other persons directly responsible shall be
imposed disciplinary sanctions according to law.

    Article 37  If any doctor commits any of the following acts in practice of
medicine in violation of the provisions of this Law, the administrative
department of health under the people’s government at or above the county
level shall give him a warning or order him to suspend his practice of
medicine for not less than six months and not more than one year. If the
circumstances are serious, the practising certificate shall be revoked. If a
crime has been constituted, criminal liability shall be investigated according
to law.

    (1) violating administrative regulations and rules of health or technical
and operating rules and thereby causing severe consequences;

    (2) due to negligence of duty, delaying diagnosis and emergency treatment
of a patient who is suffering from an acute disease or dangerously ill and
thereby causing severe consequences;

    (3) causing an accident in medical treatment;

    (4) without diagnosis and examination personally, signing certifications
of diagnosis, medical treatment and epidemiology or certifications regarding
birth or death;

    (5) concealing, forging or destroying without authorization medical
documents and other relevant materials;

    (6) using medicines, disinfectants and medical instruments the use of
which has not been approved;

    (7) in violation of provisions, using narcotics, toxic drugs for medical
use, psychotropic substances and radioactive drugs;

    (8) without the consent of a patient or his family members, giving
experimental clinic treatment to the patient;

    (9) divulging the privacy of a patient and thereby causing severe
consequences;

    (10) taking advantage of the position to illegally accept patients’
property or seek other illegitimate gains;

    (11) refusing to accept assignments by the administrative department of
health at the time of the occurrence of a natural disaster, the spreading of
an infectious disease, the occurrence of an unexpected heavy casualty or other
emergencies seriously threatening the people’s lives and health; or

    (12) failing to report to the competent authorities according to
provisions when causing an accident in medical treatment or discovering the
epidemic situation of infectious diseases, suspected involvement of a patient
in a case of injury or an unnatural death of a patient.

    Article 38  Doctors causing accidents in medical treatment, prevention or
health care shall be handled according to law or relevant state provisions.

    Article 39  Establishing a medical institution for practice of medicine
without approval or opening practice of medicine by an unqualified doctor
shall be banned by the administrative department of health under the people’s
government at or above the county level; the illegal gains and medicines and
instruments involved in the case shall be confiscated, a fine of not more than
RMB 100,000 yuan imposed and, if there is any doctor involved, the practising
certificate of doctors revoked; if harm occurs to the patient, the person who
causes the harm shall bear the responsibility of compensation according to
law; if a crime has been constituted, criminal liability shall be investigated
according to law.

    Article 40  Anyone who obstructs a doctor from his legal practice of
medicine, insults, slanders, threats or strikes a doctor, or encroaches on the
personal freedom of a doctor, or interferes in normal work and life of a
doctor shall be penalized according to the provisions of the Regulations on
Administrative Penalties for Public Security; if a crime has been constituted,
criminal liability shall be investigated according to law.

    Article 41  If any institution of medical treatment, prevention or health
care fails to perform its duty of reporting according to the provisions of
Article 16 of this Law and thereby causes severe consequences, the
administrative department of health under the people’s government at or above
the county level shall give it a warning and impose disciplinary sanctions
upon the person in charge of this institution according to law.

    Article 42  Personnel of the administrative department of health or of any
institution of medical treatment, prevention or health care who, in violation
of relevant provisions of this Law, practise fraud, neglect duties, abuse
powers or engage in malpractice for their personal gains, if the act has not
constituted a crime, shall be imposed disciplinary sanctions according to law;
if the act has constituted a crime, the offender shall be investigated for
criminal liability according to law.
Chapter VI  Supplementary Provisions

    Article 43  With respect to those who obtained technical post_titles and
technical posts in medicine according to relevant state provisions before the
date of promulgation of this Law, the institutions to which they belong shall
report the case to the administrative department of health under the people’s
government at or above the county level for ratification and then the
qualifications as doctors shall be granted respectively to them. If they are
medical workers engaging in services of medical treatment, prevention or
health care in institutions of medical treatment, prevention or health care,
the institutions to which they belong shall report the case as a whole upon
rectification to the administrative department of health under the people’s
government at or above the county level and registration shall be granted and
the practising certificates of doctors shall be issued to them in line with
the conditions as prescribed in this Law . Detailed measures shall be worked
out by the administrative department of health under the State Council in
conjunction with the administrative department of personnel under the State
Council.

    Article 44  This Law is applicable to doctors in technical service centres
for birth control.

    Article 45  Village doctors who provide for villagers services of
prevention, health care or general medical treatment in medical and health
institutions of rural areas may, if they are in conformity with relevant
provisions of this Law, be granted the qualifications of medical practitioners
or assistant medical practitioners according to law. Measures for the
administration of village doctors who have not yet qualified as medical
practitioners or assistant medical practitioners as required by this Law shall
be formulated separately by the State Council.

    Article 46  Measures for the implementation of this Law by doctors in the
Army shall be formulated by the State Council and the Central Military
Commission according to the principles of this Law.

    Article 47  App

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS ON PARTIALLY ADJUSTING THE CUSTOMS EXAMINATION AND APPROVAL PROCEDURES FOR EQUIPMENTS IMPORTED UNDER FOREIGN OR DOMESTIC INVESTED PROJECTS

The General Customs Administration

Circular of the General Administration of Customs on Partially Adjusting the Customs Examination and Approval Procedures for Equipments
Imported Under Foreign or Domestic Invested Projects

ShuShui[1998]No.745

December 11, 1998

Guangdong Customs and all customs directly under the General Administration of Customs:

Since the Urgent Circular of the General Administration of Customs on Implementing the Circular of the State Council on Adjusting
the Tariff Policy of Equipment Imports (ShuShui [1997] No.1062) came into effect as of January 1, 1998, all customs have implemented
the regulations, followed the principles of administration through specialized departments and of tertiary examination and approval,
strengthened supervision, and launched, following the instructions from the General Administration of Customs, the administrative
system for tariff reduction and exemption. Consequently, the customs examination and approval procedures have been standardized.
In order to streamline the operational procedures, to improve the work efficiency and to meet the requirements of the institutional
reform of the General Administration of Customs and the transfer of its functions, it is decided that the procedures for the customs
examination and approval of equipment imports under foreign or domestic invested projects shall be adjusted as follows:

I.

For projects beyond the norm quota applied by various customs as transmitted by the General Administration of Customs and projects
under the norm quota and examined and approved by relevant governmental agencies under the State Council and by pilot enterprise
groups, their Confirmation of Status of Foreign or Domestic Invested Projects Encouraged by the Nation (hereinafter referred to as
the Project Confirmation) will no longer be transmitted through the General Administration of Customs. Customs directly under the
General Administration of Customs in charge of the aforementioned projects shall handle relevant examination and approval procedures
of recording, examination and approval upon presentation of the Project Confirmation by the project owner, and the approved feasibility
study.

II.

Article 8 of the Urgent Circular of the General Administration of Customs on Implementing the Circular of the State Council on Adjusting
the Tariff Policy of Equipment Imports (ShuShui [1997] No. 1062) provides that imported tariff-free construction equipments, non-road
auto-unloading cars and all the special vehicles explicitly defined in the note of the tariff regulation that shall be reported to
the Department of Tariff of the General Administration of Customs for examination and approval shall not be reported to the General
Administration of Customs for examination and approval. The relevant departments of all customs are held responsible for conducting
uniformed examination and approval. Imported tariff-free goods shat shall still be reported to the General Administration of Customs
for approval and examination include ships, converted vehicles and vehicles not explicitly named. The duty exemption application
for these goods shall be submitted for approval through the Administrative System of Tariff Reduction and Exemption. If the structure,
specification, type, usage or the enterprise information needs to be specified, customs directly under the General Administration
of Customs shall submit texts, pictures, and other written materials marked with the number of the corresponding Duty Levy/Exemption
Application Form to the General Administration of Customs.

III.

Given the strong policy nature of this adjustment and the wide coverage of companies and agencies affected, every customs shall observe
strictly the relevant documents specified in the Project Confirmation in conducting examination and approval and especially when
the coverage of imports with no tariff exemption is concerned. For goods beyond the duty-exemption coverage and goods whose duty
exemption standard is hard to define, timely reports shall be made to the General Administration of Customs. No customs is allowed
to exceed its power or to expand the range for tariff reduction and exemption in a disguised way. The tertiary examination and approval
systems shall be adhered to and administration shall be intensified through the administrative system of tariff reduction and exemption
so as to ensure that tariff collection and tariff exemption are conducted in compliance with relevant laws and regulations.

IV.

This Circular will enter into force as of January 1, 1999. Please make timely contacts with the Department of Tariff Levying and Administration
of the General Administration of Customs for any problems that occur during the implementation process.



 
The General Customs Administration
1998-12-11

 






PROVISIONS OF THE STANDING COMMITTEE OF THE SHANGHAI MUNICIPAL PEOPLE’S CONGRESS ON STRENGTHENING THE COLLECTION OF TOWN EMPLOYEES’ ENDOWMENT INSURANCE PREMIUMS

Provisions of the Standing Committee of the Shanghai Municipal People’s Congress on Strengthening the Collection of Town Employees’
Endowment Insurance Premiums

     In order to ensure the full collection of town employees’ endowment insurance premiums in this Municipality and the full payment of
pensions, protect the lawful rights and interests of the employees as well as those of the retirees, and improve the basic endowment
insurance system for town employees in this Municipality, the following provisions are stipulated in accordance with the Decision
on the Establishment of a Unified Basic Endowment Insurance System for Employees in Enterprises of the State Council and in light
of the actual conditions of this Municipality.

1. All town administrative agencies, enterprises and institutions (hereinafter referred to as payer units) under the jurisdiction
of this Municipality shall, in accordance with the relevant provisions of the Plan of Shanghai Municipality for the Implementation
of Reform of Endowment Insurance System for Town Employees approved by the Standing Committee of the Shanghai Municipal People’s
Congress, timely complete the procedures of registration for endowment insurance and pay endowment insurance premiums in full and
on time.

2. The municipal labor and social security administrative departments shall take charge of the comprehensive administration, supervision
and examination of the collection of the endowment insurance premiums in this Municipality. And the social security agencies shall
be responsible for the routine collection of endowment insurance premiums. The supervisory organs of the labor and social security
administrative departments shall supervise and examine the collection of endowment insurance premiums, and mete out the administrative
punishment as authorized by these Provisions.

3. The payer units shall submit themselves to the supervision and examination conducted by the supervisory organs of the labor and
social security administrative departments under the law and provide true and correct data on employment, payroll and financial statements;
they shall not refuse supervision and inspection, withhold the truth or give false data. The supervisory organs of the labor and
social security administrative departments shall keep business secrets for the payer units.

4. If any payer unit fails to complete the registration formalities of the endowment insurance as stipulated, the supervisory organs
of the labor and social security administrative departments shall enjoin it to go through the formalities of registration within
a prescribed time limit and to pay retroactively the endowment insurance premium due plus an overdue fine, and may penalize the legal
representative of the unit or the responsible person by imposing a fine of 2,000 yuan to 20,000 yuan.

5. If any payer unit fails to pay endowment insurance premium in full and on time, the supervisory organs of the labor and social
security administrative departments shall enjoin it to make up the arrears in endowment insurance premium within a prescribed time
limit, and pay an overdue fine, and may impose a fine of 2,000 yuan to 20,000 yuan on the legal representative of the unit or the
responsible person.

In case a payer unit transfers or hides its funds or other assets during the period in which it is enjoined to make up overdue premium
or fails to make the payment within the prescribed time limit, the supervisory organs of the labor and social security administrative
departments may apply to the people’s court for enforcement.

6. When a payer unit is really unable to pay endowment insurance premium in full and on time owing to its business conditions or other
causes, it shall apply to the municipal labor and social security administrative departments for postponement of the payment by presenting
financial statements and other certificates, a payment plan worked out by the unit together with the institution having the power
to dispose its property, and the unit’s property rights certificates that have been assessed and put on file at the relevant administrative
departments of property rights certificates. The relevant administrative departments of property rights certificates shall attend
to such matters in a timely manner. The payer unit may postpone the payment upon approval by the municipal labor and social security
administrative departments. The moratorium is 1 year at the most.

During the moratorium, the payer unit shall not transfer its assets that have been put on file for the record.

In case the payer unit still fails to make full payment of the endowment insurance premium on time according to the payment plan on
the expiration of the moratorium or transfers its assets that have been put on file for the record during the moratorium, the municipal
labor and social security administrative departments may make a decision to apply to the people’s court for enforcement.

7. If the payer unit refuses to accept as final the specific administrative act of the municipal labor and social security administrative
departments and their supervisory organs, it may apply for review within 15 days in accordance with the provisions of the Regulations
on Administrative Review. If the payer unit refuses to accept as final the reviewed decision, it may institute legal proceedings
at the people’s court within 15 days upon receiving the notice of administrative review.

In case the payer unit does not apply for review of the specific administrative act within the prescribed time limit or institute
legal proceedings or comply with the administrative decision, the labor and social security administrative departments and their
supervisory organs may apply to the people’s court for enforcement.

8. The labor and social security administrative departments and their supervisory organs shall be liable for compensation if they
make improper administrative decisions or cause financial losses to the payer unit because of disclosure of its business secrets.
The compensation shall not be entered as expenditure in the endowment insurance fund.

In case a person working in a social security agency deliberately does not collect endowment insurance premiums, or collects less
than stipulated, or fails to collect premiums, or diverts endowment insurance premiums for other purposes, resulting in the loss
of endowment insurance premiums, the social security agency shall recover the lost premiums in full and impose administrative punishment
on the person concerned. If the case is serious enough to constitute a crime, the person concerned shall be prosecuted for criminal
liabilities.

9. These Provisions shall become effective on October 1, 1998. The Procedures of Shanghai Municipality on Endowment Insurance for
Town Employees promulgated by the Shanghai Municipal People’s Government shall be revised according to these Provisions.

    





OPINIONS OF THE PEOPLE’S BANK OF CHINA IN FURTHER SUPPORT TO THE DEVELOPMENT OF FOREIGN TRADE AND ECONOMIC COOPERATION

The People’s Bank of China

Opinions of the People’s Bank of China in Further Support to the Development of Foreign Trade and Economic Cooperation

YinFa [1998] No.332

July 19, 1998

The People’s Bank of China of Province, autonomous regions, municipalities directly under the Central Government, the Shenzhen Branch
of the People’s Bank of China, State-Owned Commercial Banks, Other Commercial Banks, and City Commercial Banks:

To promote the development of foreign trade and economic cooperation, support the market diversification strategy of export, and ensure
the realization of this year’s goal of economic growth, the People’s Bank of China now presents the following opinions on the basis
of the General Rules of Granting Loans and the Guiding Opinions Concerning the Improvement of Financial Service in Supporting the
Development of the National Economy by the People’s Bank of China:

1.

Improving the financial service system that supports the development of foreign trade and economic cooperation. State-owned banks
should further enhance their support to the industry of foreign trade and economic cooperation with an aim to meet the demands of
the development of international trade and economic affairs. The Bank of China should continue to play the role as the main channel
for the development of foreign trade and economic cooperation, and to promote the further growth of enterprises of foreign trade
and economic cooperation (hereinafter referred to as foreign trade enterprises); other state- owned commercial banks ought to strengthen
their support to the operations of industrial enterprises, agricultural enterprises, and village and township enterprises that conduct
import and export business to earn foreign exchange through export; other financial institutions such as city commercial banks should
also render vigorous support to the export of their depositor enterprises; and policy banks should bring their own characteristics
to full play to support the export of mechanical and electrical products and complete sets of equipment. While giving support to
the development of foreign trade and economic cooperation, financial institutions ought to support both foreign trade enterprises
and other enterprises that conduct import and export business and also give support to both state-owned foreign trade enterprises
and non-state-owned enterprises.

2.

Increasing the loans granted to foreign trade enterprises on an appropriate scale. Relevant banks ought to increase the amount of
credit to foreign trade enterprises, especially those with sound economic returns, good reputation, and stable economic and trade
relations; relevant banks are also encouraged to organize domestic banking groups to provide Chinese of foreign currency loans, or
to participate in the creditgranting of foreign banking groups.

3.

Providing loans or credit to creditworthy enterprises and increasing the credit lines. Relevant banks may evaluate the credit ratings
of foreign trade enterprises in accordance with their repayment ability, profit-making capacity, management competence, record of
keeping agreements, and development potential. Enterprises confirmed after examination and evaluation to be trustworthy and having
repayment guarantee can be menaged in the way of credit line in accordance with The law of Commercial Banks.

4.

Supporting enterprises to raise fund from various channels. Mid-term operating fund credits can be granted, in the way used for industrial
enterprises, to foreign trade enterprises with sound economic return, excellent record of keeping agreements, and guarantee for repayment,
so as to help them to transmit part of their own operating fund to the capital stock of the Chinese side of the joint ventures with
sound economic return; banks should vigorously grant support to foreign trade enterprises to raise fund from the capital market and
to expand the source channel of capital.

5.

Supporting the development of foreign trade and economic cooperation through the means of interest rates. Commercial banks must seriously
implement the interest rate policy of the People’s Bank of China. The interest rate can be held down to a pre-set level or raised
only slightly higher for foreign trade enterprises that have little risk, sound economic return, good record of creditworthiness,
and large volume of loans. The rise of deposit or credit interest rates without authorization is strictly prohibited.

6.

Vigorously providing insurance service for foreign trade enterprises. Domestic property insurance companies are encouraged to expand
transportation insurance for import and export of ocean shipping cargo, and to pay close attention to insurance undertaking and compensation
so as to support the development of foreign trade and economic cooperation; and the active role of export credit insurance in supporting
export, especially the export of mechanical and electrical equipment, should be brought to full play. Institutions conducting the
business of export credit insurance should be categorized on the basis of country risks, and to conduct business in countries that
have been approved. Disorderly competition and arbitrary reduction of service rate are strictly prohibited.

7.

Continuing to enhance the support to the export of mechanical and electrical products. The People’s Bank of China shall continue to
implement the policy of credit line management for the credit granted by policy banks to support the export of mechanical and electrical
products, but the scale of export credit for the export of mechanical and electrical products can be increased when justified. Each
relevant commercial bank ought to vigorously implement the Circular to the Financial System Concerning Continuing to Enhance the
Support to the Export of Mechanical and Electrical Products(YinFa [1997] No.No.61 of the People’s Bank of China) and Circular Concerning
the Adjustment of Interest Rates of Seller’s Export Credit for the Export of Mechanical and Electrical Products(YinFa [1996] No.23
of the People’s Bank of China) issued by the People’s Bank of China.

8.

Vigorously granting support to overseas project contracting and overseas direct investment. Each relevant bank should give priority
support to overseas engineering contracting projects that have at least 50% of mechanical and electrical products or complete sets
of equipment provided by China, and overseas branches of the bank ought to provide corresponding service; in case of projects with
outstanding economic return, the ratio of equipment provided by China can be reduced as long as the security of the loan is assured,
but the ratio cannot be lower than 20%. Enterprises that meet the conditions for overseas direct investment, especially those for
whose products the domestic marked has reached a saturation point but the imternational market is promising and those that utilize
domestic equipment and spare parts for production and assembling abroad, should be given first priority.

9.

Vigorously supporting the development of foreign funded enterprises and enterprises with investment from Hong Kong, Macao, Taiwan,
and overseas Chinese business people. Each bank should support with priority the capital need of the enterprises listed as those
to be encouraged in the Guiding List of Foreign Funded Industries and increase Renminbi and foreign exchange loans to those enterprises;
appropriate credit support can also be granted to on-going projects of these enterprises that are beneficial to the improvement of
employment, and new and high-tech industries that have good economic return but have difficulty in putting the fund in place on account
of the Asian financial crises; banks should improve the financial service to these enterprises to better their investment environment.

10.

Supporting reasonable import of foreign trade. While supporting export, banks should provide support to reasonable import. Relevant
banks should vigorously grant financial back-up to import of products that meet the national import policy, especially new and high-tech
products and resource products that are scarce at home.

11.

Supporting foreign trade enterprises with “closed credit”. “Closed credit” can be granted, with reference to that granted to state-owned
industrial enterprises, to foreign trade enterprises that suffer temporary industrial enterprises loss but have orders and guarantee
for repayment. A coordinated service process of establishment of L/C, issuing of packing credit, bill of exchange, and recalling
of the credit can be provided after strict examination by the creditor bank. This kind of loans cannot be granted to enterprises
close to bankruptcy.

12.

Being on guard against financial risks in the loans granted to the foreign trade industry. Banks’ autonomy in granting credit must
be protected at the same time of their providing support to foreign trade enterprises. No organization or person can force the bank
to provide loans or guarantee. Each financial institution must stop providing new credit to and recall within a set period of time
the credit that has been granted to the following enterprises: those that have serious losses, those that are close to bankruptcy,
or those that do not have the repayment capability; those that use various means to evade liability of those that are in arrears
to the principal and interest of the bank’s loans; those that divert loans to transactions in the stock and futures market; those
enterprises, projects, or products that have been banned or restricted by national laws, regulations, or industrial policies. The
establishment of the credit registration system of the central bank ought to be accelerated in order to provide information service
to commercial banks and to prevent the enterprise from evading the liability to the bank by multiple accounts and credits.



 
The People’s Bank of China
1998-07-19

 






DECISION OF THE STATE COUNCIL REGARDING AMENDING THE PROVISIONS ON THE ADMINISTRATION OF MARITIME INTERNATIONAL CONTAINER TRANSPORT

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-04-18 Effective Date  1998-04-18  


Decision of the State Council Regarding Amending the Provisions of the People’s Republic of China on the Administration of Maritime
International Container Transport


APPENDIX: PROVISIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE
Chapter I  General Provisions
Chapter II  Procedures for the Examination and Approval of Applications
Chapter III  Management of Freight Transportation
Chapter IV  Hand-Over Procedures and Responsibilities
Chapter V  Penalties
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 243 of the State Council of the People’s

Republic of China on April 18, 1998)

    The State Council has decided to amend the Provisions of the People’s
Republic of China on the Administration of Maritime International Container
Transport as follows:

    1. Article 2 is amended as: “These Provisions shall be applicable to units
and individuals that are engaged in maritime international container
transport, and also to units and individuals that are involved in the
operations of maritime international container transport.

    “The “maritime international container transport” refers to the maritime
transport of containers between ports of the People’s Republic of China and
ports of foreign countries, including the sections of transport between ports
of the People’s Republic of China that belong to a whole voyage agreed upon in
a contract for maritime international container transport.”

    2. Two new paragraphs are added to Article 6 separately as its second and
third paragraphs: “The regular shipping services for maritime international
container transport is subject to the approval of the department for
communications under the State Council.

    “No foreign enterprise may be permitted to be engaged in the regular
shipping services for maritime container transport between ports of the
People’s Republic of China.”

    3. Article 31 is deleted and a new article added as Article 31: “The
competent department for communications at or above the county level should
make an investigation in a thorough, objective and impartial manner into those
acts subject to administrative sanctions for violation of these Provisions,
and should collect relevant evidence. When necessary, they may consult
shipping documents, financial statements and other relevant materials of the
enterprises under investigation.

    “Units and individuals concerned should take concerted actions during
investigation by the competent department for communications at or above the
county level and should truthfully provide relevant materials. The competent
department for communications at or above the county level should keep
business secrets for investigated enterprises.”

    4. Article 32 is amended as: “With respect to those who have violated
these Provisions and the relevant laws and regulations of the State on price
control at the same time, they shall be penalized by the department for price
control in accordance with the provisions of relevant laws and regulations.”

    5. Article 33 is amended as: “With respect to those who, in violation of
provisions of Articles 14 and 21 in these Provisions, fail to use the
prescribed container shipping documents, or fail to submit statistical
statements on container transport, or untruthfully submit statistical
statements on container transport, the competent department for communications
at or above the county level shall order them to make corrections; if they
refuse to do so, a fine of not more than RMB 5,000 yuan shall be imposed.”

    6. Article 34 is amended as: “With respect to those who have committed any
of the following acts in violation of these Provisions, the competent
department for communications at or above the county level shall order them to
make corrections. If they refuse to do so, the illegal gains shall be
confiscated and a fine of not less than the amount of the illegal gains and
not more than three times of the amount of the illegal gains imposed. If there
are no illegal gains, a fine shall be imposed according to the following
provisions:

    (1) In case that they are engaged in the operations of maritime
international container transport, or port handling, or services of
transshipment stations or freight stations without approval, they shall be
fined not less than RMB 30,000 yuan and not more than RMB 300,000 yuan.

    (2) In case that they are engaged in the regular shipping services for
maritime international container transport, if the regular shipping services
for container transport occur in the sections of transport between internal
ports, they shall be fined not less than RMB 30,000 yuan and not more than RMB
300,000 yuan; if the regular shipping services for offshore international
container transport occur, they shall be fined not less than RMB 50,000 yuan
and not more than RMB 500,000 yuan; if the regular shipping services for
oceangoing international container transport occur, they shall be fined not
less than RMB 500,000 yuan and not more than RMB 5,000,000 yuan.

    “If the provisions of the preceding paragraph have been violated with
serious circumstances, the administrative department for industry and commerce
shall revoke the business licences of the offenders.”

    7. Articles 35 and 36 are deleted.

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

    Besides, wording in part of articles and the order of articles shall be
correspondingly adjusted and changed.

    The Provisions of the People’s Republic of China on the Administration of
Maritime International Container Transport shall be republished after being
correspondingly revised according to this Decision.

APPENDIX: PROVISIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE
ADMINISTRATION OF MARITIME INTERNATIONAL CONTAINER TRANSPORT (Promulgated by
Decree No. 68 of the State Council of the People’s Republic of China on
December 5, 1990, and revised according to the Decision of the State Council
Regarding Amending the Provisions of the People’s Republic of China on the
Administration of Maritime International Container Transport, promulgated on
April 18, 1998)
Chapter I  General Provisions

    Article 1  These Provisions are formulated in order to strengthen the
administration of maritime international container transport, to clearly
define the responsibilities of the various parties concerned, and to meet the
State’s needs in handling foreign trade.

    Article 2  These Provisions shall be applicable to units and individuals
that are engaged in maritime international container transport, and also to
units and individuals that are involved in the operations of maritime
international container transport.

    The “maritime international container transport” refers to the maritime
transport of containers between ports of the People’s Republic of China and
ports of foreign countries, including the sections of transport between ports
of the People’s Republic of China that belong to a whole voyage agreed upon in
a contract for maritime international container transport.

    Article 3  The department for communications under the State Council of
the People’s Republic of China shall be responsible for the administration of
the operations of maritime international container transport throughout the
country.

    Article 4  In conducting maritime international container transport, the
principles of safety, accuracy, speed, economy, and civilized services must
be followed and door-to-door transportation shall be actively developed.
Chapter II  Procedures for the Examination and Approval of Applications
for the Establishment of Enterprises That Handle Maritime International
Container Transport and Their Routes for Regular Services

    Article 5  “Enterprises for the operations of maritime international
container transport” refers to those shipping enterprises that are engaged in
maritime international container transport, and also to those enterprises
that are engaged in port handling, with their inland transshipment stations
and freight stations that undertake maritime international container
transport.

    Article 6  The applications for the establishment of enterprises that
are engaged in the operations of maritime international container transport
shall be submitted to the competent departments for communications of the
provinces, autonomous regions, or municipalities directly under the Central
Government for examination and verification, and then to the department for
communications under the State Council for examination and approval.

    The regular shipping services for maritime international container
transport is subject to the approval of the department for communications
under the State Council.

    No foreign enterprise may be permitted to be engaged in the regular
shipping services for maritime container transport between ports of the
People’s Republic of China.

    Article 7  The applications for the establishment of enterprises that
are engaged in port handling of international containers shall be submitted
to the competent departments for communications of the provinces, autonomous
regions, or municipalities directly under the Central Government for
examination and approval, and then to the department for communications under
the State Council for the record.

    After the promulgation of these Provisions, the applications for the
establishment of new inland transshipment stations and freight stations that
undertake the transport of maritime international containers shall be
submitted first to the competent department that has established the said
enterprise for examination, verification, and consent; and then to the
competent departments for communications of the provinces, autonomous
regions, or municipalities directly under the Central Government for
examination and approval; and finally to the department for communications
under the State Council for the record.

    The procedures for the examination and approval of the applications from
the sector of foreign economic relations and trade for the establishment of
new transshipment stations and freight stations that undertake the transport
of maritime international containers shall be formulated separately by the
department for communications in conjunction with the department for foreign
economic relations and trade under the State Council.

    Article 8  The applications for the establishment of Chinese-foreign
equity joint ventures and Chinese-foreign contractual joint ventures that
handle maritime international container transport shall be submitted to the
department for communications under the State Council for examination,
verification, and consent; and shall then, in accordance with the provisions
of the pertinent laws and regulations, be submitted to the department for
foreign economic relations and trade for examination and approval.

    Article 9  The establishment of enterprises that are engaged in the
operations of maritime international container transport must satisfy the
following conditions:

    (1) to have transport vessels, transport motor vehicles, transport
equipment and other relevant facilities that correspond to their scope of
business and to the needs of their customers;

    (2) to have the necessary organizational structure, site for setting up
their business office, and specialized administrative personnel;

    (3) to have the registered capital and their own working capital that
meets the requirements of their operations for container transport; and

    (4) to meet other conditions as stipulated by State laws and regulations
governing the establishment of enterprises.

    Article 10  The competent department for communications shall examine,
verify and approve the scope of business operations of the enterprises that
have applied for the permission to handle maritime international container
transport in light of their sources of funds, the conditions of equipment and
facilities, the standard of administration, and the sources of cargoes.

    Article 11  The competent department of communications shall issue the
approving documents to those enterprises that have obtained the approval to
handle maritime international container transport. The units that have
received the approving documents shall apply and go through the registration
procedures by presenting the aforesaid approving documents to the
administrative department for industry and commerce, which shall issue the
business licences after checking and approving the enterprises’ application;
and only then shall the enterprises be permitted to start business operations.

    Cases concerning the establishment of inland transshipment stations and
freight stations that undertake the transport of maritime international
containers shall also be submitted to the Customs for the completion of the
registration procedures.
Chapter III  Management of Freight Transportation

    Article 12  The containers used in maritime international container
transport shall conform to the provisions and technical standards of the
international organization for the standardization of containers, and also
to the provisions of the pertinent international containers convention.

    The owners and operators of containers shall do a good job in the
management and maintenance of containers and carry out regular inspections, in
order to guarantee the provision of containers that are suitable for the
transportation of cargoes.

    In case that the provisions in the second paragraph of this Article have
been violated, and, as a result, goods are damaged or short in number or
quantity, the person(s) who is (are) held responsible for this shall bear the
liability for compensation in accordance with the pertinent provisions.

    Article 13  Shippers and enterprises that are engaged in port handling
shall guarantee that the vessels, motor vehicles, handling machinery and
tools are kept in a good technical condition, thereby ensuring the
transportation and safety of containers.

    In case that shippers and enterprises that are engaged in port handling
have violated the provisions in the first paragraph of this Article, and, as
a result, goods are damaged or short in number or quantity, they shall bear
the liability for compensation in accordance with the pertinent provisions.

    Article 14  Shippers and enterprises that are engaged in port handling
shall use the container shipping documents.

    Article 15  Shippers may directly organize the contracting of the
transportation of container goods, and consignors may directly hold business
talks with shippers or commission shipping agents for the consignment of
import and export container goods.

    Article 16  Consignors shall submit an accurate report on the names of
goods, and their property, quantity, weight, and specifications. The goods
shipped by consignment in containers must conform to the requirements of
container transport, and marks on the goods should be obvious and clear.

    Article 17  Consignors or shippers shall, before vanning, carry out a
careful inspection of containers, and containers that might cause an adverse
effect on to the transportation and vanning of goods may not be used.

    Article 18  Containers which are used for shipping such perishables as
grains, edible oils, and frozen food, shall be inspected by the department for
commodity inspection and found to be up to the standard before they are used
for shipping.

    Article 19  As soon as container goods have reached their destination,
the shipper shall promptly send a cargo delivery notice to the consignee; and
the consignee shall, upon receiving the notice, take delivery of goods on the
strength of the bill of lading.

    In case that the consignee fails to clear the goods when the prescribed
time limit is overdue, or that the consignee fails to return the containers
according to the prescribed time limit, the said consignee shall be required
to pay in accordance with the pertinent stipulations or with the agreement
set forth in the contract, the surcharge for the storage of goods and
containers and the demurrage charge for the extended use of containers.

    Article 20  The freight charges for maritime international container
transport and other expenses shall be calculated and collected in accordance
with the State provisions concerning shipping charges and charge rates. In the
absence of State provisions, the freight charges shall be calculated and
collected in accordance with the prices agreed upon by both parties. No units
shall be permitted to collect charges at random.

    Article 21  Shippers and enterprises that are engaged in port handling
shall submit periodical statistical statements on transportation to the
competent department for communications.

    Article 22  Various parties that are involved in maritime international
container transport shall, in good time, provide each other with information
concerning container transport.
Chapter IV  Hand-Over Procedures and Responsibilities

    Article 23  Shippers and consignors or consignees shall, in accordance
with the hand-over method stipulated in the bill of lading, handle the
hand-over operations of containers and container goods at marshalling yards,
freight stations, or other places agreed upon by the two parties concerned.

    Article 24  Shippers and enterprises that are engaged in port handling,
which take part in maritime international container transport, shall handle
the hand-over operations in accordance with the following provisions:

    (1) Maritime shippers and enterprises that are engaged in port handling
shall handle the hand-over operations alongside vessel through the tally
companies;

    (2) With respect to containers transported by waterways through nodal
points, the enterprises that are engaged in port handling and waterway
carriers shall handle the hand-over operations alongside vessel;

    (3) With respect to containers transported by highways through nodal
points, the enterprises that are engaged in port handling and highway carriers
shall handle the hand-over operations at the gate of the container terminal;

    (4) With respect to containers transported by railway through nodal
points, the enterprise that are engaged in port handling or highway carriers
and railway carriers shall handle the hand-over operations at the site of
handing.

    Article 25  While handling the hand-over operations of containers, the
two handling parties shall check the container numbers, the bodies of
containers and the containers’ marking seals. The loaded containers shall be
handed over by their marking seals and by the condition of container body; and
the empty containers shall be handed over by condition of container body.

    After checking the container numbers, the bodies of containers and the
marking seals the two handling parties shall make a record and confirm it by
appending their signatures to the record.

    Article 26  With respect to the liabilities of shippers and enterprises
that are engaged in port handling for the damage and loss of containers and
container goods, before the hand-over operations, the liabilities shall be
taken up by the handing-over party; after the hand-over operations, the
liabilities shall be taken up by the receiving party. However, if, within 180
days immediately after the hand-over operations, the receiving party is able
to produce evidence to testify to the fact that the damage of the containers,
or the damage and loss of container goods were caused by the handing-over
party, then the handing-over party shall take up the liabilities for
compensation, unless otherwise provided by law.

    Article 27  Unless otherwise provided by law, shippers and consignors
shall, in accordance with the following provisions, take up the liabilities
for the damage or loss of container goods:

    (1) With respect to those goods, the vanning of which is done by the
shippers, if the goods in the containers are damaged or are short in number
or quantity during the period of time from the day the shippers receive the
goods to the day when the goods reach their destination but before they are
handed over to the consignees, the shippers shall take up the liabilities for
the damage or shortage.

    (2) With respect to those goods, the vanning of which is done by the
consignors, if the container bodies and the marking seals have remained intact
but the goods (in the containers) have been damaged or are short in number or
quantity during the period of time from the completion or the vanning and the
completion of the procedures for consignment to the day before the containers
are handed over to the consignees, the consignors shall take up the
liabilities for the damage or shortage; if the container bodies are damaged or
the marking seals broken, and the goods in the containers are also damaged or
are short in number or quantity, the shippers shall take up the liabilities
for the damage or shortage.

    The time limits for shippers and consignors or consignees to raise
claims of compensation shall be limited to no more than 180 days, beginning
from the day when container goods are handed over, unless otherwise provided
by law.

    Article 28  In case that the consignors’ inaccurate or false declaration
on container goods has resulted in injuries and death of personnel, or in the
loss of means of transport or of the goods proper and the containers, or of
other goods and containers, the consignors shall bear the liabilities for the
consequences arising therefrom.

    Article 29  In case that the fault of the person in charge of the vanning
has resulted in injuries and death of personnel, or in the loss of means of
transport, of other goods, or containers, the aforesaid person shall bear the
liabilities for the consequences arising therefrom.

    Article 30  In case that the damage or shortage in number or quantity
of container goods involves a claim for compensation from a foreign unit,
which necessitates an appraisal and the issue of the relevant certificate by
the administrative department for commodity inspection, the case shall be
handled in accordance with the provisions in the Law of the People’s Republic
of China on the Inspection of Import and Export Commodities.

    In case that the shortage in number or quantity of containers or container
goods involves a claim for compensation from a foreign unit, which
necessitates the issue of the relevant certificate by the tally department,
the case shall be handled in accordance with the pertinent provisions.
Chapter V  Penalties

    Article 31  The competent department for communications at or above the
county level should make an investigation in a thorough, objective and
impartial manner into those acts subject to administrative sanctions for
violation of these Provisions, and should collect relevant evidence. When
necessary, they may consult shipping documents, financial statements and other
relevant materials of the enterprises under investigation.

    Units and individuals concerned should take concerted actions during
investigation by the competent department for communications at or above the
county level and should truthfully provide relevant materials. The competent
department for communications at or above the county level should keep
business secrets for investigated enterprises.

    Article 32  With respect to those who have violated these Provisions and
the relevant laws and regulations of the State on price control at the same
time, they shall be penalized by the department for price control in
accordance with the provisions of relevant laws and regulations.

    Article 33  With respect to those who, in violation of provisions of
Articles 14 and 21 in these Provisions, fail to use the prescribed container
shipping documents, or fail to submit statistical statements on container
transport, or untruthfully submit statistical statements on container
transport, the competent department for communications at or above the county
level shall order them to make corrections; if they refuse to do so, a fine of
not more than RMB 5,000 yuan shall be imposed.

    Article 34  With respect to those who have committed any of the following
acts in violation of these Provisions, the competent department for
communications at or above the county level shall order them to make
corrections. If they refuse to do so, the illegal gains shall be confiscated
and a fine of not less than the amount of the illegal gains and not more than
three times of the amount of the illegal gains imposed. If there are no
illegal gains, a fine shall be imposed according to the following provisions:

    (1) In case that they are engaged in the operations of maritime
international container transport, or port handling, or services of
transshipment stations or freight stations without approval, they shall be
fined not less than RMB 30,000 yuan and not more than RMB 300,000 yuan.

    (2) In case that they are engaged in the regular shipping services for
maritime international container transport, if the regular shipping services
for container transport occur in the sections of transport between internal
ports, they shall be fined not less than RMB 30,000 yuan and not more than RMB
300,000 yuan; if the regular shipping services for offshore international
container transport occur, they shall be fined not less than RMB 50,000 yuan
and not more than RMB 500,000 yuan; if the regular shipping services for
oceangoing international container transport occur, they shall be fined not
less than RMB 500,000 yuan and not more than RMB 5,000,000 yuan.

    If the provisions of the preceding paragraph have been violated with
serious circumstances, the administrative department for industry and commerce
shall revoke the business licences of the offenders.
Chapter VI  Supplementary Provisions

    Article 35  These Provisions shall go into effect as of the date of
promulgation.





CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL TRANSMITTING THE INTERIM PROCEDURES FOR HUMAN GENETIC RESOURCES MANAGEMENT BY THE MINISTRY OF SCIENCE AND TECHNOLOGY AND THE MINISTRY OF PUBLIC HEALTH

Category  SCIENCE AND TECHNOLOGY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-06-10 Effective Date  1998-06-10  


Circular of the General Office of the State Council Transmitting the<> by the Ministry of Science and Technology and the Ministry of Public Health


APPENDIX:INTERIM PROCEDURES FOR HUMAN GENETIC RESOURCES MANAGEMENT
Chapter I  General Provisions
Chapter II  Management Agency
Chapter III  Declaration and Examination and Approval
Chapter IV  Intellectual Property Rights
Chapter V  Rewards and Penalties
Chapter VI  Supplementary Provisions

(June 10, 1998)

    The<>
by the Ministry of Science and Technology and the Ministry of Public Health
approved by the State Council is hereby transmitted to you for earnest
implementation.

APPENDIX:INTERIM PROCEDURES FOR HUMAN GENETIC RESOURCES MANAGEMENT
(Ministry of Science and Technology and Ministry of Public Health)
Chapter I  General Provisions

    Article 1  These Procedures are formulated for the purposes of effective
protection and rational utilization of the human genetic resources of China,
stepping up the research and development of human genes and promoting
international cooperation and exchange on the basis of equality and mutual
benefit.

    Article 2  The human genetic resources referred to in these Procedures
mean such genetic materials of and relevant information on organs, tissues,
cells, blood, prepared objects and the constructed body of reconstructed
deoxyribonucleic acid(DNA) containing human genetic groups, genes and their
products.

    Article 3  These Procedures must be adhered to in engaging in activities
involving the gathering, collection, research, development, buying and
selling, export and exit of the country of China’s human genetic resources.

    Article 4  The State practises the system of declaration and
registration of important genetic genealogical and designated regional
genetic resources. Units or individuals that have discovered and are
in possession of the important genetic genealogical and designated
regional genetic resources should report to the departments concerned
in time. No unit or individual shall, without permission, gather, collect,
buy and sell, export, bring out of the country or provide to foreign
countries in other forms on their own.

    Article 5  For human genetic resources and related information and
materials classified in the category of science and technology secrets of
the state, <> must be adhered to.
Chapter II  Management Agency

    Article 6  The State practises the system of management at different
levels and unified examination and approval of human genetic resources.

    Article 7  The competent departnent of science and technology
administration and the competent department of public health administration
under the State Council shoulder joint responsibility of the management
of human genetic resources nationwide and jointly set up the Office for
Human Genetic Resources Management of China to be in charge of the routine
work.

    Article 8  The Office for Human Genetic Resources Management of China
shall be temporarily housed in the competent department of science and
technology administration under the State Council. Under the leadership
of the competent departments of science and technology and public health
administration under the State Council, the Office for Human Genetic
Resources Management of China exercises the following duties and
responsibilities:

    (1)drafting of related rules for implementation and documents to be
promulgated for implementation upon approval, coordination and supervision
over the implementation of these Procedures;

    (2)responsibility of registration and management of important genetic
genealogy and designated regional genetic resources;

    (3)organization in the examination and verification of international
cooperative projects involving human genetic resources;

    (4)acceptance and processing of export and exit application of human
genetic resources, and processing of export and exit certificates; and

    (5)other work related to human genetic resources management.

    Article 9  The Office for Human Genetic Resources Management of China
employs relevant experts to form aa expert team to participate in
the formulation of the research planning, render assistance in the
examination and verification of international cooperative projects, and
conduct related technical evaluation and provide technical consultancy.

    Article 10  Competent departments of science and technology
administration and competent departments of public health administration
(hereinafter referred to as local competent departments) of the provinces,
autonomous regions and municipalities directly under the Central Government
shall be responsible for the work of human genetic resources of the
respective areas.

    Departments concerned under the State Council shall be responsible for
the work of human genetic resources management of the respective departments.
Chapter III  Declaration and Examination and Approval

    Article 11  Units responsible for the cooperation on the Chinese side
must go through the formalities of application and approval for international
cooperative projects involving human genetic resources of China. Units
under the central departments shall submit their reports to the departments
under the State Council according to the relations of subordination, units
under the localities and units with no higher competent departments or
relations of subordination shall submit their reports to the local competent
departments of the locality wherein the said unit is located, and upon
examination and consent, file an application at the Office for Human Genetic
Reources Management of China, and formally sign the contract upon examination
and approval.

    The departments concerned under the State Council and local competent
departments should, in examining the application for an international
cooperative project, seek the views of the local competent departments
of the place wherefrom the human genetic resources have been gathered.

    International cooperative projects in progress but not yet completed
prior to the coming into force of these Procedures must, in accordance with
the provisions, complete retrospectively the formalities of application
and approval.

    Article 12  In going through the formalities of application and
approval for an international cooperative project involving human genetic
resources of China, an application form must be filled in and the following
materials enclosed:

    (1)certification of the provider and his/her relatives’ insiders’
consent of the human genetic resource materials;

    (2)draft of the contract; and

    (3)other materials as required by the examination and approval organ.

    Article 13  Applications filed in pursuance of Article 12 of these
Procedures having any of the following circumstances shall not be approved:

    (1)lack of clear-cut purposes and orientation in the work;

    (2)the unit in charge of cooperation on the foreign side that does not
have strong research and development strengths and advantages;

    (3)the unit in charge of cooperation on the Chinese side that does not
have foundation and conditions for cooperative research;

    (4)irrationality and equivocality in the arrangement for the ownership
and sharing of intellectural property rights;

    (5)extended scope of work and duration of cooperation;

    (6)no certification of the provider and his/her relatives’ insider
consent of the human genetic resource materials; and

    (7)that which is in violation of the provisions of the relevant laws
and regulations of China.

    Article 14  Export, exit and provision to foreigners of important human
genetic resources shall be put under strict control.

    For those listed in the export and exit plan of human genetic resource
materials in international cooperative projects already examined, verified
and approved, application forms shall be filled in and export and exit
certificates processed directly by the Office for Human Genetic Resources
Management of China.

    In the event of an actual requirement for the provision to foreigners
of human genetic resource materials owing to extraordinary circumstances,
an application form has to be filled in and, upon the examination and
consent of local competent departments or the department concerned under
the State Council, submit the same to the Office for Human Genetic Resources
Management of China for the verification and issuance of export and exit
certificates upon approval.

    Article 15  The Office for Human Genetic Resources Management of China
shall review and process applications for international cooperative
projects and export and exit of human genetic resource materials once
every quarter of year. For those in line with the requirements of these
Procedures, approval documents shall be issued upon verification, export
and exit certificates processed and corresponding codes of <System of Commodities Names and Codes>> annotated; those not in keeping with
the requirements of these Procedures shall not be approved; those whose
application documents are not complete shall be returned for completion,
and an application can be filed again upon completion.

    Article 16  In carrying, posting by mail and transporting human
genetic resources for export and exit, truthful decalaration shall
be made to the Customs, the Customs shall issue clerance on the strength of the export and exit certificates issued by the Office
for Human Genetic
Resources Management of China upon verification.
Chapter IV  Intellectual Property Rights

    Article 17  Human genetic resources information within the territory
of China including important genetic genealogy and desisgnated regional
genetic resources and their data, materials, samples, ets, the exclusive
holding rights enjoyed by research and development agencies of China shall
not be transferred to other units without permission. Units or individuals
of cooperation on the foreign side that have acquired the above information
shall not make public, publish, apply for patents or disclose to others
in other forms without permission.

    Article 18  International cooperative projects concerning human
genetic resources should abide by the principle of equality and mutual
benefit, honesty and trustworthiness, joint participation and sharing of achievements, explicitly define the rights enjoyed and obligations
undertaken by the parties, and fully and effectively protect intellectual
property rights.

    Article 19  For cooperative research and development of human genetic
resources of China conducted by Chinese and foreign agencies, the intellectual
property rights shall be handled in accordance with the following principles:

    (1)where cooperative research and development achievements are within
the scope of patent protection, both parties shall jointly apply for
patent, the patent right shall be owned by both parties. Both parties
may, in accordance with agreement, jointly implement or separately
implement the said patent within territories of their respective countries.
However, transfer to a third party or permission to a third party for
implementation must have the agreement of both parties, and the benefits
accrued therefrom shall be shared on the basis of the extent of contribution
of both parties.

    (2)other achievements of science and technology eminating from//the
cooperative research and development, their right to use, right to transfer
and measures for benefit sharing shall be agreed upon by both parties
through cooperative agreement. Where it is not agreed upon in an agreement,
both parties have the right to use, however, transfer to a third party
must have the agreement of both parties, the benefits accrued therefrom shall
be shared on the basis of the extent of contribution of both parties.
Chapter V  Rewards and Penalties

    Article 20  Citation and reward shall be given to any unit or
individual that has discovered and reported important genetic genealogy
and resources information; reward and protection shall be given to those
who expose illegal acts.

    Article 21  Any unit or individual of China that, in violation of the
provisions of these Procedures, secretly carry, post by mail or transport
human genetic resources for export and exit without approval shall be
confisticated of the human genetic resources material carried, posted by mail
or transported thereby, and administrative sanctions shall be imposed or
transfer to judicial organ for handling depending on the seriousness of the circumstances; whoever provides human genetic resources
material
to a foreign agency or individual on his/her own without approval shall be
confisticated of the human genetic resources material provided and
concurrently imposed a fine; where the circumstances are serious,
administrative sanctions shall be imposed and legal liability investigated.

    Article 22  Any foreign(overseas) unit or individual that, in violation
of the provisions of these Procedures, secretly gather, collect or buy and
sell human genetic resources material of China without approval shall be
confisticated of the human genetic resources material in his/her
posession and imposed a fine; where the circumstances are serious,
legal liability shall be investigated in accordance with the relevant
laws of China. Whoever secretly carries, posts by mail or transports
human genetic resources material of China for export and exit shall
be confisticated of the human genetic resources material carried,
posted by mail or tansported by the Customs, and be imposed a penalty
or transferred to the judicial organ for handling depending on the
extent of seriousness of the circumstances.

    Article 23  Functionaries of the departments of management and
experts participating in the examination and verification bear the
responsibility of keeping the technical secrets for the applicants.
Whoever causes leakage of technical secrets or loss of human genetic
resources material as a result of negligence of duty and malpractices
for selfish gains shall be imposed administrative sanctions or
investigated of legal liability depending on the circumstances.
Chapter VI  Supplementary Provisions

    Article 24  Departments of the armed forces may, in pursuance of the
provisions of these Procedures, formulate rules for implementation for
the respective departments and submit the same to the Office for Human
Genetic Reources Management of China for the record. Armed police forces
shall implement the provisions of these Procedures.

    Article 25  The competent department of science and technology
administration and the competent department of public health administration
under the State Council shall be responsible for the interpretation of these Procedures.

    Article 26  These Procedures shall come into force as of the date of promulgation.





MEASURES FOR THE ADMINISTRATION OF TRANSFER OF MINERAL EXPLORATION RIGHT AND MINING RIGHT

Category  GEOLOGY, MINERAL RESOURCES AND ENERGY INDUSTRY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-02-12 Effective Date  1998-02-12  


Measures for the Administration of Transfer of Mineral Exploration Right and Mining Right



(Promulgated by Decree No. 242 of the State Council of the People’s

Republic of China on February 12, 1998.)

    Article 1  These Measures are formulated in accordance with the Mineral
Resources Law of the People’s Republic of China with a view to strengthening
the administration of transfer of mineral exploration right and mining right,
protecting the lawful rights and interests of persons with mineral exploration
right and persons with mining right and promoting the development of the
mining industry.

    Article 2  These Measures must be adhered to in the transfer of mineral
exploration right and mining right obtained according to law within the
territory of the People’s Republic of China and other sea areas under its
jurisdiction.

    Article 3  Mineral exploration right and mining right must not be
transferred except for those which may be transferred in accordance with
the following provisions:

    (1)a person with mineral exploration right has the right to conduct
specified exploration and survey operations within the delimited exploration
and survey operations area(s) and has the right to obtain the mineral
exploration right of mineral resources within the exploration and survey
operations areas on a priority basis. A person with mineral exploration
right may, upon fulfilment of the prescribed minimum exploration and survey
input and approval in accordance with law, transfer the mineral exploration
right to another person.

    (2)a mining enterprise having obtained the mining right may, subject to
approval in accordance with law, transfer the mining right to another person
for exploitation as a result of enterprise amalgamation, separation, engaging
in a joint venture or cooperative venture with another person, or as a result
of the sale of the enterprise assets as well as other circumstances that
change the property rights of the enterprise assets necessitating a change
in the main body of the mining right.

    Article 4  The competent department of geology and mineral resources
under the State Council and the competent departments of geology and mineral
resources of people’s governments of the provinces, autonomous regions and
municipalities directly under the Central Government shall be the organs for
the administration of examination and approval of the transfer of mineral
exploration right and mining right.

    The competent department of geology and mineral resources under the
State Council shall be responsible for the examination and approval of the
transfer of mineral exploration right and mining right the examination,
approval and issuance of permits fall under its jurisdiction.

    The competent departments of geology and mineral resources of people’s
governments of the provinces, autonomous regions and municipalities directly
under the Central Government shall be responsible for the examination and
approval of the transfer of mineral exploration right and mining right
other than those prescribed in the Second Paragraph of this Article.

    Article 5  Transfer of mineral exploration right shall meet the
following conditions:

    (1)expiry of 2 years from the date of issuance of an exploration and
survey permit, or discovery of mineral resources for further exploration and
survey or exploitation within the exploration and survey operations area(s);

    (2)fulfilment of the specified minimum exploration and survey input;

    (3)there is no dispute over the ownership of the mineral exploration
right;

    (4)the mineral exploration right user’s fee and mineral exploration
right purchase price have already been paid pursuant to relevant state
provisions; and

    (5)other conditions prescribed by the competent department of geology
and mineral resources under the State Council.

    Article 6  Transfer of mining right shall meet the following conditions:

    (1)expiry of one year of going into mining production of a mining
enterprise;

    (2)there is no dispute over the ownership of mining right;

    (3)the mineral exploration right user’s fee, mineral exploration right
purchase price, mineral resources compensation fee and resources tax have
already been paid pursuant to relevant state provisions; and

    (4)other conditions prescribed by the competent department of geology
and mineral resources under the State Council.

    A state-owned mining enterprise should, prior to the appliction for the
transfer of mining right, obtain the consent of the competent department of mining enterprises.

    Article 7  A transferee of mineral exploration right or mining right
should meet the qualifications of a mineral exploration right applicant or
mining right applicant prescribed in the Measures for Area Registration
Administration of Mineral Resources Exploration and Survey or the Measures
for the Registration Administration of Mineral Resources Exploitation.

    Article 8  A person with mineral exploration right or a person with
mining right should, in applying for the transfer of mineral exploration
right or mining right, present the following materials to the examination
and approval administration organ:

    (1)a letter of application for transfer;

    (2)the transfer contract concluded between the transferor and the
transferee;

    (3)testimonial documents of human quality of the transferee;

    (4)proof of conditions of transfer of the transferor as prescribed in
Article 5 or Article 6 of these Measures;

    (5)a report on mineral resources exploration and survey or exploitation;
and

    (6)other materials the presentation of which are required by the
examination and approval administration organ.

    A state-owned mining enterprise should, in transferring the mining right,
present the approval document of the competent department concerned on
consenting to the transfer of the mining right.

    Article 9  An evaluation must be carried out in the transfer of mineral
exploration right and mining right formed by state-contributed exploration and
survey.

    Evaluation of the transfer of mineral exploration right and mining right
shall be carried out by evaluation agencies certified by the competent
department of geology and mineral resources under the State Council in
conjunction with the department of state assets management under the State
Council; the evaluation results shall be confirmed by the competent
department of geology and mineral resources under the State Council.

    Article 10  With respect to applicants for the transfer of mineral
exploration right or mining right, the examination and approval administration
organ should, within 40 days from the date of receipt of the application for
transfer, make a decision on the approval of the trnasfer or the non-
approval of the transfer and inform the transferor and the transferee of the same.

    In case of approval of the transfer, the transferor and the transferee
should, within 60 days from the date of receipt of the transfer approval
notice, go through the formalities of registering the change at the organ
that originally issued the permit; the transferee shall, upon effecting
payment of relevant fees pursuant to state provisions, obtain an exploration
and survey permit or a mining permit and become a person with mineral
exploration right or a person with mining right.

    In case of approval of the transfer, the transfer contract shall take
effect as of the day of approval.

    In case of non-approval of the transfer, the examination and approval
administration organ should explain the reasons.

    Article 11  The examination and approval administration organ should,
upon approval of the transfer of mineral exploration right or mining right,
notify the original permit issuing authority in time.

    Article 12  The rights and obligations of a person with mineral
exploration right or a person with mining right shall be transferred
along with the transfer of the mineral exploration right or mining right.

    Article 13  The duration of validity of the exploration and survey
permit or the mining permit upon the transfer of the mineral exploration
right or mining right shall be the remaining time period of the duration of
validity of the original mineral exploration permit or mining permit minus
the year(s) during which exploration or mining has already been conducted.

    Article 14  Whoever transfers the mineral exploration right or mining
right without authorization and approval of the examination and approval
administration organ shall be ordered by the registration administration
organ to make a rectification, confisticated of the illegal gains and
imposed a fine of less than RMB 100,000 Yuan; where the circumstances are
serious, the original permit issuing authority shall revoke the exploration
and survey permit or mining permit.

    Article 15  Whoever transfers the mining right to another person for
exploitation in the form of contracting out without authorization in violation
of the provisions of Section (2) of Article 3 of these Measures shall be
ordered by the department responsible for the administration of geology and
mineral resources of people’s government at or above the county level
pursuant to the terms of reference prescribed by the competent department
of geology and mineral resources under the State Council to make a
rectification, confisticated of the illegal gains and imposed a fine of less than RMB 100,000 Yuan; where the circumstances are serious,
the
original permit issuing authority shall revoke the mining permit.

    Article 16  Any functionary of the examination and approval administration
organs who indulges in self-seeking misconducts, abuses power, neglects duties
that constitute a crime shall be investigated of criminal liability according
to law; where a crime has not been constituted, administrative sanctions shall
be imposed according to law.

    Article 17  Formats of the letter of application for the transfer of mineral exploration right and the letter of application for
the transfer of mining right shall be uniformly determined by the competent department of geology and mineral resources under the
State Council.

    Article 18  These Measures shall enter into force as of the date of promulgation.





INTERIM PROVISIONS FOR THE GRANTING OF RIGHTS OF SELF-MANAGED IMPORT AND EXPORT TO PRIVATELY-OWNED PRODUCTION ENTERPRISES AND SCIENTIFIC RESEARCH ACADEMIES AND INSTITUTES

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-10-01 Effective Date  1999-01-01  


Interim Provisions for the Granting of Rights of Self-Managed Import and Export to Privately-Owned Production Enterprises and Scientific
Research Academies and Institutes



(Approved by the State Council on September 2, 1998 and promulgated by

the Ministry of Foreign Economic Relations and Trade on October 1, 1998)

    Artilce 1  These Provisions are formulated in accordance with the
Foreign Trade Law of the People’s Republic of China for purposes of deepening the reform of the foreign trade system, sustaining
and guiding
the sound development of the nonpublic economy, and actively promoting
the privately-owned production enterprises or scientific research academies
and institutes in participating in international competition.

    Article 2  The privately-owned production enterprises and scientific
research academies and institutes referred to in these Provisions mean the
production enterprises or scientific research institutions of capital under
private ownership or holdings by private capital registered according to law
(including sole-proprietorship enterprises, partnership enterprises, limited
liability companies and joint-stock companies limited).

    Article 3  Application Qualifications

    I.A privately-owned production enterprise possessing the following
requisites simultaneously may apply for rights of self-managed import
and export:

    (1)an enterprise which has already entered into registration
at the organ of industry and commerce administration of the locality
wherein the production enterprise is located, has obtained a business
licence and has a registered capital and net assets both more than
RMB 8.5 million Yuan;

    (2)the annual sales revenue and volume of export supply amount to more
than RMB 50 million Yuan and US$ 1 million respectively for two consecutive
years(the annual sales revenue and volume of export supply of an enterprise
for electrical and mechanical products amount to more than RMB 30 million
Yuan and US$ 500000 respectively); and

    (3)having specialized personnel required for self-managed import-export
business operations.

    II.A privately-owned scientific research academy or institute(including
new and high-tech enterprise) possessing the following requisites
simulatneously may apply for rights of self-managed import and export:

    (1)an academy(institute or enterprise) that has already entered into
registration at the organ of industry and commerce administration of the
locality wherein it is located, has obtained a business licence and has
a registered capital and net assets both more than RMB 8.5 million Yuan;

    (2)the annual sales revenue of the scientific research academy or
institute amounts to more than RMB 3 million Yuan, the annual sales revenue
of the new and high tech enterprise confirmed by the competent department
of science and technology above the provincial level amounts to more than
RMB 30 million Yuan(the annual sales revenue of the development-type
new and high-tech enterprise amounts to more than RMB 10 million Yuan); and

    (3)having specialized personnel required for self-managed import-export
business operations.

    Article 4  Application Materials Submission

    1.An application report for rights of self-managed import and export
of the privately-owned production enterprise or scientific research academy
or institute;

    2.Articles of association of the enterprise or academy(institute);

    3.The business licence of the legal entity(photocopy of the original);

    4.Certification of the enterprise passing annual inspection for two
consecutive years and certification of assets issued by the organ of industry
and commerce administration;

    5.A catalog of commodities for self-managed import and export
under application;

    6.Certification of export supply issued by the foreign trade enterprise
for export agency;

    7.Certification of tax payment issued by the tax department above the
county level; and

    8.In the case of a new and high-tech enterprise, a certificate of new
and high-tech enterprise issued by the competent department of science and
technology is required to be produced.

    Article 5  Application and Examination and Approval Procedures

    A privately-owned production enterprise or scientific research academy
(institute) shall file an application in writing with the competent department
of foreign economic relations and trade of the locality of registration
which shall, upon examination of the competent deprtment of foreign economic
relations and trade of the provinces, autonomous regions, municipalities
directly under the Central Government and municipalities under direct
planning by the state, be submitted to the Ministry of Foreign Economic
Relations and Trade(hereinafter referred to as MFERT for abbreviation)
for examination and approval.

    Article 6  The privately-owned production enterprise or scientifc
research academy(institute) that has obtained the rights of self-managed
import and export upon approval shall, on the strength of the approval
document, go through the relevant formalities at departments of customs,
entry and exit inspection, foreign exchange control, industry and commerce
administration and taxation, and apply for the obtainment of a certificate of qualification of import-export enterprise from the
competent department of foreign economic relations and trade of the provinces, autonomous regions,
municipalities directly under the Central Government and municipalities
under direct planning by the state, then conduct self-managed import-export
business operations. Separation, amalgamation and change in the catalog of commodities for self-managed import and export of a privately-owned
production
enterprise or scientific research academy(institute) with the obtainment of rights of self-managed import and export must be submitted
to MFERT for
approval; change in enterprise name shall be subject to advance verification
and approval of the name by the organ of industry and commerce administration
and submitted to MFERT for corresponding formalities of approval; cases of
nullification shall be submitted to MFERT for the record.  

    Article 7  Rights and Obligations

    The rights enjoyed by and obligations to be undertaken by the privately-
owned production enterprise and scientific research academy(institute) with
the obtainment of rights of self-managed import and export upon approval
are as follows:

    1.It may directly engage in self-manged import-export business operations.

    2.It may, within the approved import-export business scope, operate
export business of the self-produced products of the said enterprise or
academy(institute) and operate import business of machinery and equipment,
spare parts and components, raw materials and auxillary materials required
for the production and scientific research of the said enterprise or academy
(institute).

    3.It may apply to join the chamber of commerce for import and export,
participate in relevant foreign economic and trade activities organized by
the competent departments of foreign economic relations and trade of the
state or the locality, and receive guidance from the state foreign trade
policy.

    4.It may, in conducting self-managed import-export trade activities,
enjoy identical treatment enjoyed by publicly-owned production enterprises
or scientific research academies(institutes) with self-managed import-
export business operations.

    5.It shall abide by the policy, laws and regulations relating to
foreign trade.

    6.It shall subject itself to the supervision, administration and
coordination of the competent department of foreign economic relations
and trade and the chamber of commerce for import and export.

    7.It shall actively promote export for foreign exchange earning.

    Article 8  The competent departments of foreign economic relations
and trade at all levels should, with respect to the conduct of import-
export business by privately-owned production enterprises or scientific
research academies(institutes) with the obtainment of rights of self-
managed import and export, render active support, strengthen guidance
and do a good job in providing services and standardized administration.

    Article 9  Privately-owned production enterprises or scientific research
academies(institutes) with the obtainment of rights of self-managed import
and export shall, in the event of violation of the provisions of relevant
state policies, be imposed the peanlties of meteing out criticism in a
circular, administering a warning or revocation of rights of self-managed
import and export.

    Article 10  The Ministry of Foreign Economic Relations and Trade shall
be responsible for the interpretation of these Provisions.

    Article 11  These Provisions shall come into force as of January 1, 1999.





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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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