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2004

PROTECTING AGAINST AND MITIGATING EARTHQUAKE DISASTERS

Law of the People’s Republic of China on Protecting Against and Mitigating Earthquake Disasters

     (Adopted at the 29th Meeting of the Standing Committee of the Eighth National People’s Congress on December 29, 1997)

CHAPTER I GENERAL PROVISIONS

   Article 1 This Law is enacted in order to protect against and mitigate earthquake disasters, ensure the safety of the people’s lives and property
and the smooth progress of the socialist drive.

   Article 2 This Law shall be applicable to earthquake monitoring and prediction, protection against earthquake disasters, measures for earthquake
emergencies, post-earthquake relief and reconstruction, etc. which are carried out within the territory of the People’s Republic
of China (hereinafter referred to as protection against and mitigation of earthquake disasters for short).

   Article 3 In the effort to protect against and mitigate earthquake disasters the principle of combining protective measures with rescue efforts
while putting stress on the former shall be applied.

   Article 4 Protection against and mitigation of earthquake disasters shall be incorporated into plans for national economic and social development.

   Article 5 The State encourages and supports scientific and technological research in protection against and mitigation of earthquake disasters
and spreads the use of advanced research results in order to improve the work of protection against and mitigation of earthquake
disasters.

   Article 6 People’s governments at different levels shall strengthen leadership over the work of protection against and mitigation of earthquake
disasters and mobilize the relevant departments to take measures for successful protection against and mitigation of earthquake disasters.

   Article 7 Under the leadership of the State Council, the competent administrative departments under the State Council that are responsible
respectively for seismic work, comprehensive management of the economy, construction, civil affairs and the other relevant departments
shall join efforts and closely coorperate with each other, while acting in accordance with the division of their functions and duties,
to make a success of the work for protection against and mitigation of earthquake disasters.

The administrative departments or institutions for seismic work and the other departments concerned under the local people’s governments
at or above the county level shall, under the leadership of the said people’s governments, join efforts and closely cooperate with
each other, while acting in accordance with the division of their functions and duties, to make a success of the work for protection
against and mitigation of earthquake disasters within their own administrative areas.

   Article 8 All units and individuals are obligated to take part in protecting against and mitigating earthquake disasters in accordance with
law.

The Chinese People’s Liberation Army, the Chinese People’s Armed Police Forces and the People’s Militia shall carry out the tasks
of protecting against and mitigating earthquake disasters assigned to them by the State.

CHAPTER II EARTHQUAKE MONITORING AND PREDICTION

   Article 9 The State strengthens the work of earthquake monitoring and prediction, encourages and gives aid to scientific and technological
research in earthquake monitoring and prediction in order to promote such monitoring and prediction gradually.

   Article 10 The competent administrative department for seismic work under the State Council shall be responsible for formulating national plans
of earthquake monitoring and prediction and making arrangements for their implementation.

The administrative departments for seismic work under the people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government shall be responsible for formulating plans of earthquake monitoring and prediction for their
own administrative areas in accordance with the national plans of earthquake monitoring and prediction and making arrangements for
their implementation respectively.

   Article 11 The competent administrative department for seismic work under the State Council shall, on the basis of the tendency of seismicity,
submit suggestions on delimiting key areas for earthquake surveillance and protection to the State Council for approval.

The administrative departments or institutions for seismic work under the people’s governments at or above the county level located
in the key areas for earthquake surveillance and protection shall improve their work in earthquake monitoring, work out plans for
short-term and imminent earthquake prediction, establish the system for the tracking of and consultation about earthquake situations
and enhance their capability of earthquake monitoring and prediction.

   Article 12 The competent administrative department for seismic work under the State Council and the administrative departments or institutions
for seismic work under the local people’s governments at or above the county level shall improve their work in examining, transmitting,
analysing and processing information about seismicity and precursors of earthquakes and in forecasting the place, time and magnitude
of a possible earthquake.

   Article 13 The State makes unified plans for the building of earthquake monitoring stations and networks, and divides them into different levels
and types for their administration.

The national earthquake monitoring network is composed of the primary national earthquake monitoring stations and the earthquake monitoring
stations at the provincial, municipal and county levels, and the investment needed for its building shall be borne by the central
and local governments according to the principle of unified administrative and financial powers.

An earthquake monitoring station and network for the use of a particular unit shall be built with the investment of that unit, administered
by it and brought under the guidance of the administrative department or institution for seismic work under the local people’s government
at or above the county level.

   Article 14 The State protects the facilities for earthquake monitoring and the environment for seismicity observation in accordance with law.
No unit or individual may jeopardize such facilities or environment. The area of the environment for seismicity observation shall
be delimited for protection in conformity with the requirement that there be no disturbance sources in the neighborhood that affect
the operating efficiency of the earthquake monitoring facilities.

The facilities for earthquake monitoring mentioned in this Law refers to the monitoring facilities, equipment, instruments used at
the earthquake monitoring stations and other such facilities, equipment and instruments provided in accordance with the regulations
of the competent administrative department for seismic work under the State Council.

   Article 15 In building, expanding or rebuilding a project, attention shall be paid to avoiding jeopardizing the facilities for earthquake monitoring
and the environment for seiemicity observation. Where it is truly impossible to avoid it, the unit concerned shall obtain approval
of the competent administrative department for seismic work under the State Council or the administrative department or institution
for seismic work under the local people’s government at or above the county level authorized by the said department under the State
Council and take the necessary measures as required by the State Council before it may start building, expanding or rebuilding the
project.

   Article 16 The State adopts the practice of unified release of earthquake prediction.

Short-term and imminent earthquake prediction shall be released by the people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government in accordance with the procedures prescribed by the State Council.

All units and specialists engaged in seismic work shall submit their predictions about short-term or imminent earthquakes to the competent
administrative department for seismic work under the State Council or to the administrative departments or institutions for seismic
work under the local people’s governments at or above the county level, which shall deal with them in accordance with the provisions
of the preceding paragraph; they may not spread their predictions to the public without authorization.

CHAPTER III PROTECTION AGAINST EARTHQUAKE DISASTERS

   Article 17 The projects built, expanded or rebuilt shall meet the requirements for seismic resistance.

Construction projects other than the ones mentioned in paragraph 3 of this Article shall be fortified against earthquakes in compliance
with the seismic-resistance requirements specified in the seismic intensity zoning map or the ground motion parameter zoning map
issued by the State.

Seismic safety shall be evaluated for major construction projects and the construction projects which may induce serious secondary
disasters. The requirements for fortification against earthquakes, which shall be drawn up on the basis of the results of seismic
safety evaluation, shall be fulfilled.

The major construction projects mentioned in this Law refer to projects which are of great value to or have a vital bearing on the
society.

The construction projects which may induce serious secondary disasters mentioned in this Law refer to construction projects which
may, as a result of earthquake damage, lead to flood, fire, explosion, leak of a large amount of hypertoxic or strong corrosive materials
and other serious secondary disasters, including such projects as large dams, embankments, petroleum and gas tanks and the facilities
storing inflammables or explosive substances, hypertoxic or strong corrosive materials and other construction projects which may
induce serious secondary disasters.

For the construction projects such as nuclear power plants and nuclear facilities, which may lead to serious secondary disasters due
to radioactive contamination in the wake of earthquake damage, seismic safety shall be evaluated carefully and the projects shall
be fortified against earthquakes strictly in accordance with law.

   Article 18 The competent administrative department for seismic work under the State Council shall be responsible for drawing up the seismic
intensity zoning map or the ground motion parameter zoning map and for examining and granting approval of seismic safety evaluation
results.

The competent administrative department for construction under the State Council shall be responsible for working out the standard
aseismatic design for construction projects of all kinds of houses and buildings and the facilities attached to them and of the urban
utilities, except as otherwise provided in paragraph 3 of this Article.

The competent administrative departments for railways, communications, civil aviation, water conservancy and other specialized departments
concerned under the State Council shall be responsible for working out the standard aseismatic design for construction projects of
railways, highways, ports, wharfs, airports, water conservancy and other special projects respectively.

   Article 19 All construction projects shall be designed in compliance with the requirements for fortification against earthquakes and in conformity
with the standard aseismatic design and shall be constructed in accordance with the design.

   Article 20 The following buildings and structures without the necessary fortifications against earthquakes shall be appraised for their earthquake-resistance
capability in accordance with relevant State regulations, and the necessary measures of reinforcement shall be taken:

(1) buildings and structures which come under the category of major construction projects;

(2) buildings and structures which may induce serious secondary disasters;

(3) buildings and structures which are of great cultural relic value and are memorable; and

(4) buildings and structures which are located in the key areas under surveillance for and protection against earthquakes.

   Article 21 The local people’s governments concerned shall take appropriate and effective measures for sources of the secondary disasters such
as fires, floods, landslides, radioactive contaminations and epidemic diseases that may arise in the wake of earthquakes.

   Article 22 The competent administrative department for seismic work under the State Council and the administrative departments or institutions
for seismic work under the local people’s governments at or above the county level shall, together with the departments concerned
at the corresponding level, work out plans for protecting against and mitigating earthquake disasters on the basis of the prediction
of the possible earthquake situation and earthquake disasters and put them into effect upon approval of the people’s government at
the same level.

Revision of the plans for protecting against and mitigating earthquake disasters shall be submitted for approval to the authorities
that originally approved them.

   Article 23 People’s governments at all levels shall mobilize the departments concerned to disseminate knowledge about the importance of protecting
against and mitigating earthquake disasters, enhancing the citizens’ awareness of such importance and help increasing citizens’ capability
of self-and mutual-rescue from earthquake disasters; and improve the training of specialists in this field so as to enhance their
ability of dealing with emergencies and providing disaster relief.

   Article 24 The local people’s governments at or above the county level in the key areas under surveillance for and protection against earthquakes
shall, in the light of actual need and possibility, allocate an appropriate amount of funds and materials for earthquake relief from
their financial budgets and materials reserve.

   Article 25 The State encourages units and individuals to insure against earthquake disasters.

CHAPTER IV MEASURES FOR EARTHQUAKE EMERGENCIES

   Article 26 The competent administrative department for seismic work under the State Council shall, together with the departments concerned under
the State Council, draw up national emergency preplans for destructive earthquakes and submit them to the State Council for approval.

The departments concerned under the State Council shall formulate their own emergency preplans for destructive earthquakes in accordance
with the national emergency preplans for destructive earthquakes and submit them to the competent administrative department for seismic
work under the State Council for the record.

The competent administrative departments or institutions for seismic work under the local people’s governments at or above the county
level in areas where destructive earthquakes may occur shall, together with the departments concerned, work out emergency preplans
for destructive earthquakes in their own administrative areas in the light of the national emergency preplans for destructive earthquakes
and submit them to the said people’s governments for approval. All such emergency preplans for provinces, autonomous regions and
cities with a population of over one million shall, in addition, be submitted to the competent administrative department for seismic
work under the State Council for the record.

The destructive earthquakes mentioned in this Law refer to earthquakes that cause casualties and property losses.

   Article 27 The State encourages and gives aid to research and development of technology and equipment for earthquake emergency and rescue.

The local people’s governments at or above the county level in areas where destructive earthquakes may occur shall charge the departments
concerned with the duty of reserving equipment necessary for earthquake emergency and rescue and training people to use them.

   Article 28 An emergency preplan for a destructive earthquake mainly includes the following:

(1) composition and functions and duties of an emergency institution,

(2) guarantee of emergency telecommunications;

(3) preparation of manpower, funds and materials for rescue and disaster relief;

(4) preparation of emergency and rescue equipment;

(5) preparation for disaster evaluation; and

(6) a plan for emergency actions.

   Article 29 After the release of prediction for an imminent destructive earthquake, the people’s governments of the provinces, autonomous regions
and municipalities directly under the Central Government concerned may declare that the areas covered in the prediction enter the
emergency period of an imminent earthquake; the local people’s governments concerned shall, in accordance with the emergency preplan
for destructive earthquakes, see to it that the relevant departments mobilize the community to make good preparations for disaster
relief and rescue.

   Article 30 After the occurrence of a severely destructive earthquake which causes tremendous losses, the State Council shall set up a headquarters
for resisting the earthquake and providing disaster relief, which shall mobilize the departments concerned to implement the emergency
preplan for destructive earthquakes. An office of the said headquarters shall be set up in the competent administrative department
for seismic work under the State Council.

After the occurrence of a destructive earthquake, the local people’s governments at or above the county level concerned shall set
up headquarters for resisting earthquake and providing disaster relief, which shall mobilize the departments concerned to implement
the emergency preplan for destructive earthquakes.

A severely destructive earthquake as mentioned in this Law refers to an earthquake which causes heavy casualties and property losses,
rendering people in the disaster-stricken area unable or partially unable to rehabilitate themselves and making it necessary for
the State to take appropriate actions.

   Article 31 The local people’s governments at different levels in earthquake-stricken areas shall promptly inform the people’s governments at
the next higher level of the earthquake situation and the disasters inflicted and other developments; the people’s governments of
provinces, autonomous regions and municipalities directly under the Central Government in the earthquake-stricken areas shall, in
accordance with the relevant regulations of the State Council, make known to the general public the earthquake situation and the
disasters inflicted.

The competent administrative department for seismic work under the State Council or the administrative departments for seismic work
under the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall, together
with the departments concerned, promptly investigate and assess the losses caused by the earthquake. The findings shall be reported
to the said people’s governments without delay.

   Article 32 After the occurrence of a severely destructive earthquake, the State Council or the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government may take the following emergency measures in the earthquake-stricken
areas in order to deal with the emergency, provide disaster relief and maintain public order:

(1) traffic control;

(2) centralized provision and distribution of basic daily necessities such as foods;

(3) temporary requisition of houses, transportation vehicles and telecommunications equipment, etc.; and

(4) other necessary emergency measures.

CHAPTER V POST-EARTHQUAKE RELIEF AND RECONSTRUCTION

   Article 33 After the occurrence of a destructive earthquake, the local people’s governments at all levels in the earthquake-stricken areas shall
mobilize forces from all quarters to rescue people and mobilize grassroots units and personnel for self- and mutual-rescue. The local
people’s governments at all levels in non-earthquake-stricken areas shall mobilize people from all sectors of society to provide
aid to the earthquake-stricken areas in the light of the earthquake situation and the disasters inflicted.

After the occurrence of a severely destructive earthquake, the State Council shall provide aid to the earthquake-stricken areas and
charge the competent department for comprehensive management of the economy with the duty of coordinating the efforts for disaster
relief in an all- round way and, together with the relevant departments under the State Council, make an overall plan for the distribution
of relief funds and materials.

   Article 34 The local people’s governments at or above the county level in earthquake-stricken areas shall mobilize health and medical institutions
and other departments or units concerned to provide medical aid to the wounded and do a good job of sanitation and epidemic prevention.

   Article 35 The local people’s governments at or above the county level in earthquake-stricken areas shall mobilize the civil affairs authorities
and other departments or units concerned to lose no time in setting up shelters and stations for the supply of relief goods and materials,
make proper arrangements for the daily life of the victims, and help them to evacuate and settle down in new places.

   Article 36 The local people’s governments at or above the county level in earthquake-stricken areas shall mobilize the traffic, post and telecommunications
and construction authorities and other departments or units concerned to take measures to quickly restore the disrupted traffic,
communications, water supply, drainage, power, gas and petroleum supply and other facilities, and take urgent protective measures
against sources of secondary disasters.

   Article 37 The local people’s governments at or above the county level in earthquake-stricken areas shall mobilize public security organs and
the other departments concerned to strengthen public security administration and improve security work in order to prevent and crack
down on various criminal activities and maintain public order.

   Article 38 The houses, transportation vehicles and telecommunications equipment temporarily requisitioned for disaster relief shall be returned
immediately afterwards; proper compensation shall be made or other measures shall be taken, according to the relevant regulations
of the State Council, for those damaged or unreturnable.

   Article 39 All units and individuals shall, during the relief period after an earthquake, abide by rules of discipline and laws, observe social
ethics, obey orders and help maintain public order conscientiously.

   Article 40 No unit or individual may withhold or embezzle funds and goods set aside for disaster relief.

The auditing authorities of the people’s governments at different levels shall through auditing exercise strict supervision over the
use of funds set aside for disaster relief.

   Article 41 The local people’s governments at or above the county level in earthquake-stricken areas shall, in the light of the earthquake disasters
and the requirements for seismic resistance, make overall plans for the reconstruction of such areas.

   Article 42 The State protects typical earthquake ruins and sites in accordance with law.

The protection of typical earthquake ruins and sites shall be incorporated into plans for the reconstruction of the earthquake- stricken
areas.

CHAPTER VI LEGAL LIABILITY

   Article 43 Whoever, in violation of the provisions of this Law, commits one of the following acts shall be ordered by the competent administrative
department for seismic work under the State Council or the administrative department or institution for seismic work under the local
people’s government at or above the county level to stop violating the Law and to put the place back to its former state or take
other remedial measures; if the circumstances are serious, the offender may be fined not less than 5,000 yuan but not more than 100,000
yuan; if losses are caused, the offender shall bear civil liability in accordance with law; if the offence constitutes a crime, the
offender shall be investigated for criminal liability in accordance with law:

(1) building, expanding or rebuilding projects which jeopardize the facilities for earthquake monitoring or the environment for seismicity
observation, and doing it without obtaining approval in advance in accordance with law or taking the necessary measures; or

(2) destroying typical earthquake ruins or sites.

   Article 44 Any construction unit that, in violation of the provisions in paragraph 3 of Article 17 of this Law, fails to conduct seismic safety
evaluation or provide fortification against earthquakes in compliance with the requirements for such fortification, which are drawn
up on the basis of the results of seismic safety evaluation, shall be ordered by the competent administrative department for seismic
work under the State Council or the administrative department or institution for seismic work under the local people’s government
at or above the county level to set it right and be fined not less than 10,000 yuan but not more than 100,000 yuan.

   Article 45 Any unit that, in violation of the provisions of this Law, commits one of the following acts shall be ordered by the administrative
department for construction or a department concerned under the people’s government at or above the county level, within the limits
of its powers and duties, to set it right and be fined not less than 10,000 yuan but not more than 100,000 yuan:

(1) failing to have construction projects designed in conformity with the standard aseismatic design; or

(2) failing to carry out construction in accordance with the aseismatic design.

   Article 46 Whoever withholds or embezzles funds or goods set aside for earthquake disaster relief, if the offence constitutes a crime, shall
be investigated for criminal liability in accordance with law; otherwise, he shall be given administrative sanctions.

   Article 47 Any State functionary who abuses his power, neglects his duty or commits malpractices for selfish ends, if the offence constitutes
a crime, shall be investigated for criminal liability in accordance with law; otherwise, he shall be given administrative sanctions.

CHAPTER VII SUPPLEMENTARY PROVISIONS

   Article 48 This law shall come into force as of March 1, 1998.

    

Source:China Internet Information Center

EDITOR:Victor






INTERIM PROCEDURES FOR THE EXPERIMENT OF TRAVEL SERVICES WITH CHINESE AND FOREIGN INVESTMENTS

Category  TOURISM Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-12-02 Effective Date  1998-12-02  


Interim Procedures for the Experiment of Travel Services with Chinese and Foreign Investments



(Approved by the State Council on October 29, 1998 and promulgated by

Order No. 11 of the State Tourism Administration and the Ministry of Foreign
Economic Relations and Trade on December 2, 1998)

    Article 1  These Procedures are formulated in accordance with the the Law
of the People’s Republic of China Concerning Chinese-Foreign Joint Ventures
and the Regulations on Traval Services Administration as well as relevant laws
and regulations with a view to further extending the opening up of the toruism
industry to the outside world and promoting the development of the tourism
industry.

    Article 2  These Procedures shall be applicable to travel services
established with Chinese and foreign investments by foreign companies or
enterprises and Chinese companies or enterprises within the territory of China(hereinafter referred to as travel services with joint
investments
for abbreviation).

    Article 3  For application for the establishment of a travel service
with joint investments, the Chinese joint venturer should meet the
following criteria:

    (1)It shall be an international travel service;

    (2)Its average annual number of overseas tourists?? in 3 years prior
to the application exceeds 30000 man/day;

    (3)Total sales volume of average annual tourism business in 3 years
prior to the application exceeds RMB 50 million Yuan; and

    (4)It must be an official member of China Tourism Association.

    Article 4  For application for the establishment of a travel service
with joint investments, the foreign joint venturer should meet the
following criteria:

    (1)It shall be a travel service operating international tourism or an
enterprise of a travel service operating international tourism with all
capital;

    (2)It has an annual sales volume from tourism business of more than
US$ 50 million;

    (3)It has joined international or national computer network for
advance booking or has formed its own computer network for advance booking;
and

    (4)It must be an official member of its national tourism association.

    Article 5  The travel service with joint investments to be established
should meet the following criteria:

    (1)It has a registered capital of not less than RMB 5 million Yuan;

    (2)Its enterprise form shall be a limited liability company;

    (3)The percentage of contribution of the registered capital from the
Chinese party shall not be under 51%;

    (4)Its legal representative shall be appointed by the Chinese party;

    (5)It has a business site, business facilities and management staff
that meet the requirements; and

    (6)The duration of joint venture shall not exceed 20 years.

    Article 6  A travel service with joint investments shall, pursuant to
the provisions of management of entry tourism by international travel
services, effect payment of quality guaranty fund.

    Article 7  Procedures for the examination and approval of a travel
service with joint investments shall be as follows:

    (1)The Chinese joint venturer shall submit such documents as the
project proposal and feasibility study for the travel service with joint
investments to the department of tourism administration of the province
(autonomous region, municipality directly under the Central Government)
or municipality under direct planning by the state of the locality wherein
the travel service is to be located. Those documents shall, upon preliminary
examination of the department of tourism administration at the provincial
level, be submitted to the State Tourism Administration.

    Where the Chinese joint venturer is an enterprise under central
management, those documents shall, upon preliminary examination of its
competment department, be submitted to the State Tourism Administration.

    The State Tourism Administration shall, pursuant to the laws and
regulations of the state concerning tourism administration process the
examination and approval of the documents submitted.

    (2)The Chinese joint venturer shall, upon receipt of the official
reply of approval of the State Tourism Administration, submit such
documents as the contract on the establishment of a travel service
with joint investments and its articles of association to the provincial-
level competent department of foreign economic relations and trade of the locality. The procincial-level competent department of
foreign economic
relations and trade shall, upon preliminary examination, submit those
documents to the Ministry of Foreign Economic Relations and Trade.

    Where the Chinese joint venturer is an enterprise under central
management, those documents shall, upon preliminary examination of its
competent department, be submitted to the Ministry of Foreign Economic
Relations and Trade.

    The Ministry of Foreign Economic Relations and Trade shall, pursuant to
the laws and regulations of the state concerning foreign business investment,
process the examination and approval of the documents submitted.

    (3)The Chinese joint venturer shall, on the strength of the certificate
of approval of enterprise with foreign business investment issued by the
Ministry of Foreign Economic Relations and Trade and the business permit
for travel service operations issued by the State Tourism Administration
and pursuant to the provisions, go through the formalities of registration
and taxation registration for the project the establishment of which has
been approved.

    Article 8  The following documents should be presented for the application
for the establishment of a travel service with joint investments:

    (1)certification of qualifications of the Chinese joint venturer
including a copy of the business licence, business permit for travel service
operations, annual business reports of the 3 years prior to the application
and certification of the membership of the tourism association;

    (2)certification of qualifications of the foreign joint venturer
including a copy of the registration, certificate of bank credit standing,
certification of financial status issued by an accountant firm, certificate
of access to the net provided by the computy company concerned, certification
of the membership of national tourism association and the annual report of
the year prior to the application;

    (3)the project proposal of the travel service with joint investments;

    (4)the feasibility study of the travel service with joint investments;

    (5)the contract and articles of association of the travel service with
joint investments; and

    (6)other materials the presentation of which is required under laws
and regulations and by the examination and approval organs.

    Article 9  Each foreign joint venturer shall only invest in the
establishment of one travel service with joint investments within the
territory of China.

    Article 10  No permission shall be granted temporarily during the
experimental phase for the establishemnt of branch(es) of travel services
with joint investments.

    Article 11  Travel services with joint investments may operate entry
tourism business and domestic tourism business.

    Article 12  No permission shall be granted temporarily to travel
services with joint investments for management of the business of Chinese citizens going to foreign countries and the Hongkong Special
Administrative Region and the regions of Macao and Taiwan for tourism.

    Article 13  Management by travel services with joint investments of special tourism projects and projects of tourism in special areas
must
be submitted to the State Tourism Administration and deparmtnets concerned
for examination and approval.

    Artilce 14  Travel services with joint investments shall not organzie
and arrange projects containing contents of obscenity, gambling and
drug taking and other items harmful to social ethics and people’s physical
and mental health; shall not organize projects containing contents damaging
state interests and national dignity of the People’s Republic of China; and
shall not organize projects containing contents prohibited under Chinese
laws and regulations.

    Article 15  Employment of tour guides by travel services with joint
investments within the territory of China shall be processed pursuant to
relevant state provisions.

    Article 16  Travel services with joint investments shall be subject to
trade administration of the department of tourism administration.

    Article 17  Travel services with joint investments shall, pursuant to
provisions, submit financial, accounting and statistical statements to
the department of tourism administration and other departments concerned
and be subject to business inspection.

    Article 18  The foreign exchange revenue and expenditure of travel
services with joint investments shall be handled pursuant to the relevant
procedures for enterprises with foreign business investment.

    Article 19  Travel services with joint investments shall abide by the
laws and regulations of the People’s Republic of China, be subject to
the jurisdiction of laws and regualtions of China, and their just management
activities and legitimate rights and interests shall be protected by the
laws and regulations of China.

    In the event of acts on the part of travel services with joint investments
in violation of the laws and regulations of China, they shall be handled
pursuant to the relevant laws and regulations.

    Article 20  Whoever violates the provisions of these Procedures
shall be imposed penalty by the department of tourism administration
pursuant to the Regulations on Travel Services Administration and
the Rules for the Implementation of the Regulations on Travel Services
Administration.

    Article 21  Interim Measures for the Administration of Examination and
Approval of Establishment of Category I Travel Services with Chinese and
foreign investments in National Tourism Holiday Areas shall continue to be
effective during the implementation of these Procedures.

    Article 22  For establishment of travel services with joint investments
with joint investments by investors of the Hongkong Special Administrative
Region and regions of Macao and Taiwan and the domestic investors, reference
shall be made to these Procedures.

    Article 23  The State Tourism Administration and the Ministry of Foreign
Economic Relations and Trade shall be responsible for the interpretation of these Procedures.

    Article 24  These Procedures shall go into force as of the date of promulgation.






FLOOD CONTROL OF THE PEOPLE’S REPUBLIC OF CHINA






Flood Control of The People’s Republic of China

     Foreword

The Flood Control Law of the People’s Republic of China was adopted at the 27th Meeting of the Standing Committee of the Eighth National
People’s Congress on August 29, 1997, and promulgated by Order No. 88 of the President of the People’s Republic of China on August
29, 1997.

Chapter I General Provisions

   Article 1 This Law is enacted with a view to preventing and controlling flood, taking precautions against and alleviating calamities by flood
and waterlogging, maintaining the safety of people’s lives and property, and safeguarding the smooth progress of the socialist modernization
construction.

   Article 2 The work for flood control shall observe the principles of unified planning, overall consideration, focusing on prevention, integrated
measures for treatment and subordinating local interests to general interests.

   Article 3 The construction if flood control works should be incorporated into the national economic and social development plan.

Flood control funds shall be raised according to the principle of combining government input with rational payment by beneficiaries.

   Article 4 The exploration and protection of water resources should be subject to the overall arrangements for flood control and observe the
principle of combining the promotion of advantages with the elimination of disadvantages.

The control of rivers and lakes and the construction of flood control works should conform to the comprehensive plans for river basins
and be integrated with the comprehensive exploration of water resources in river basins.

The comprehensive plans referred to in this Law mean those for the exploration of water resources and the prevention and control of
water disasters.

   Article 5 The work for flood control shall be carried out in the light of river basins or administrative areas and according to a system by
which unified planning shall be implemented at different levels and consideration given to the administration of river basins as
well as the administration of administrative areas.

   Article 6 All units and individuals shall have the obligations to protect flood control works and to take part in flood control and flood fighting
according to law.

   Article 7 People’s governments at all levels should intensify the unified leadership over the work for flood control, organize departments
and units concerned, mobilize social forces, depend on scientific and technological progress, harness rivers and lakes in a planned
way and take measures to enforce the construction of flood control works in order to consolidate and enhance flood control capacity.

People’s governments at all levels should organize departments and units concerned and mobilize social forces to ensure flood control
and flood fighting and reconstruction and relief work after flood or waterlogging calamities.

People’s governments at all levels should lend support to flood storage and detention areas and provide compensations and aids according
to the state provisions after flood storing and detaining.

   Article 8 The water conservancy administrative department under the State Council shall, under the leadership of the State Council, be responsible
for routine duties of organization, coordination, supervision and guidance for flood control nationwide. River basins administrative
agencies set up by the water conservancy administrative department under the State Council for major. rivers and lakes as designated
by the state shall perform duties of coordination, supervision and administration of flood control within their jurisdiction as provided
for by laws and administrative regulations and authorized by the water conservancy administrative department under the State Council.

The construction administrative department and other relevant departments under the State Council shall, under the leadership of the
State Council, be responsible for relevant work of flood control within their scope of powers and duties. Water conservancy administrative
department s under local people’s governments at or above the county level shall, under the leadership of the people’s governments
at the same level, be responsible for routine duties of organization, coordination, supervision and guidance for flood control within
their respective administrative areas. Construct ion administrative departments and other relevant administrative departments under
local people’s governments at or above the county level shall, under the leadership of the people’s governments at the same level,
be responsible for relevant work of flood control within their scope of powers and duties.

Chapter II Flood Control Planning

   Article 9 Flood control planning refers to the overall arrangement for the prevention and control of flood and waterlogging calamities in a
certain river basin, river course or region, including river bas in flood control planning for major rivers and lakes designated
by the state, flood control planning of other rivers, river courses and lakes as well as regional flood control planning.

Flood control planning should be subject to the comprehensive planning of a certain river basin or region. Regional flood control
planning should be subject to the flood control planning for a certain river basin.

Flood control planning constitutes the bas is for the control of rivers and lakes and the construction of flood control works.

   Article 10 Flood control planning for major rivers and lakes designated by the state shall, in accordance with comprehensive river basin planning
for these rivers and lakes, be formulated by the water conservancy administrative department under the State Council in conjunction
with other relevant departments and the people’s government(s) of the province(s), autonomous region(s) and municipality(s) concerned
directly under the Central Government, and submitted to the State Council for approval.

Flood control planning for other rivers, river courses and lakes or regional flood control planning shall, separately in accordance
with comprehensive river bas in planning and comprehensive regional planning, be formulated by water conservancy administrative department
s under local people’s governments at or above the county level in conjunction with other relevant departments or regions, submitted
to the people’s governments at the same level for approval and then submitted to the water conservancy administrative departments
under the people’s governments at the next higher level for the record. Flood control planning for rivers, river courses or lakes
involving two or more provinces , autonomous regions and municipalities directly under the Central Government shall be drafted by
the administrative agency for the relevant river basin in conjunction with the water conservancy administrative departments and other
relevant departments under the people’s government(s) of the province(s), autonomous region(s) and municipality(s) directly under
the Central Government wherein the river, river course or lake drains water and, after the people’s government(s) of the province(s),
autonomous region(s) and municipality(s) involved directly under the Central Government examines it and comes up with comments, be
submitted to the water conservancy administrative department under the State Council for approval.

Urban flood control planning shall, in accordance with the river basin flood control planning and the regional flood control planning
of the people’s government at the next higher level, be formulated by the water conservancy administrative department, the construct
ion administrative department and other relevant administrative departments under the people’s government of a city which shall organize
those administrative departments in the formulation of the planning, and be included into the overall urban planning subject to approval
through the examination and approval procedures stipulated by the State Council. Amendment to flood control planning should be subject
to the approval from the original approval organ.

   Article 11 The formulation of flood control planning should, following the principle of ensuring key projects and considering others at the
same time, and integrating flood control with drought fighting, engineering measures with non–engineering measures, take full account
of the flood–drought law, the relation of the upper and lower reaches and of both banks of a river, and the requirements for flood
control in the national economy, and be coordinated with the national land planning and the overall land use planning as well.

Flood control planning should include the protected objects, aims and tasks of flood control, flood control measures and act ion plans,
delimit the flooded area, the flood storage and detention area and the flood control protected area, and determine the principle
for use of the flood storage and detention area.

   Article 12 Local people’s governments at or above the county level in coastal areas which are threatened by storm tides should include the prevention
of storm tides into the flood control planning within their respective areas , strengthen the construct ion of systems of anti–storm
tides works including seawalls (sea dykes), tidewater gates and coastal shelter–forest, and supervise the design and construct ion
of buildings and constructions that should meet the requirements for the prevention of storm tides.

   Article 13 Local people’s governments at or above the county level in areas where mountain torrents may trigger landslides, collapses and mud–rock
flows and in other area where mountain torrents frequently occur should organize the departments in charge of geological and mineral
administration, water conservancy administrative department s and other relevant department s to conduct a general investigation
on hidden dangers of landslides, collapses and mud–rock flows, to delimit zones for focal control, and to take prevention and control
measures.

Distribution of cities, towns and other inhabited areas as well as factories , mines and trunk lines of railways and highways should
avert the threat of mountain torrents; for those having been built in places threatened by mountain torrents, precautions should
be taken.

   Article 14 Local people’s governments concerned in areas liable to waterlogging such as plains, depressions, river networks and embankment areas,
valleys and basins should formulate planning for elimination and control of waterlogging, organize relevant departments and units
to take corresponding control measures, ,improve drainage systems, develop types and varieties of waterlogging-enduring crops and
take integrated measures for controlling flood and water logging, drought, saline and alkaline land.

People’s governments of cities and towns should strengthen the administration and construction of waterlogging drainage piping systems
and pumping stations in urban areas.

   Article 15 The water conservancy administrative department under the State Council should, in conjunction with the relevant departments and
the people’s governments concerned of provinces, autonomous regions and municipalities directly under the Central Government, formulate
the planning for controlling estuaries in the Yangtze River, Yellow River, Pearl River, Liao River, Huai River and Hai River.

Reclaiming land from seawaters in estuaries mentioned in the preceding paragraph should conform to the planning for controlling estuaries.

   Article 16 Land to be used for realignment of river courses as planned in flood control planning and land to be used for dykes in planned construction
projects may be delimited as planned reserve zones upon verification by the land administrative department and the water conservancy
administrative department in conjunction with the involved areas, and submitted for approval of the people’s government at or above
the county level within the scope of powers authorized by the State Council. If land within the planned reserve zones involves that
to be used in other projects, the land administrative department and the water conservancy administrative department should consul
t with departments concerned for verification of land.

The planned reserve zones should be announced upon delimitation according to the provisions of the preceding paragraph.

No industrial or mining facilities not related to flood control may be constructed within the planned reserve zones. If special circumstances
exist under which it is really necessary for state industrial and mining projects to occupy land within the planned reserve zones
mentioned in the preceding paragraph, approval should be obtained according to the procedures set by the state for capital construct
ion and consultations should be made with the relevant water conservancy administrative department.

Land to be used for expanding or exploring man–made floodwater drainage channels as determined in flood control planning may be delimited
as planned reserve zones to which the provisions in the preceding paragraph shall apply upon verification by the land administrative
department and the water conservancy administrative department of the people’s government at or above the provincial level in conjunction
with other relevant departments and regions and submitted for approval of the people’s government at or above the provincial level
within the scope of powers authorized by the State Council.

   Article 17 Construction of flood control works or other hydraulic works and hydropower s tat ions in rivers and lakes should conform to the
requirements of flood control planning. Reservoirs should keep adequate storage capacity for flood control according to the requirements
of flood control planning.

When the feasibility study report for flood control works or other hydraulic works and hydropower stat ions stipulated in the preceding
paragraph is submitted for approval pursuant to the procedures set by the state for capital construction, a consent document for
planning issued by the relevant water conservancy administrative department which conforms to the requirements of flood control planning
should be enclosed as an appendix.

Chapter III Control and Prevention

Article l8 For the prevention and control of flood in rivers, attention should be paid to flood storage as well as to flood discharge.
The smooth drainage of floodwater should be ensured by giving full play to flood drainage capacity of river courses and flood redistribution
and storage functions of reservoirs, depressions and lakes, intensifying the protect ion of river courses and taking measures to
remove and dredge silt at regular intervals in line with local conditions.

For the prevent ion and control of flood in rivers, measures should be taken to protect and expand the coverage of forest, grass and
other vegetation in river basins, conserve water resources and intensify the comprehensive control of water and soil conservation
in river basins.

   Article 19 In the realigning of river courses and building up construction projects for leading the river direction or protecting embankments,
full consideration should be given to the relations between the lower and upper reaches and between both sides of a river and the
planned realigning and leading line be followed.

The direction of a river shall not be changed at will.

Planned realigning and leading lines for major rivers designated by the state shall be worked out by river basin administrative agencies
and submitted to the water conservancy administrative department under the State Council for approval.

Planned realigning and leading lines for other rivers or river courses shall be worked out by water conservancy administrative departments
under local people’s governments at or above the county level and submitted to the people’s governments at the same level for approval.
Planned realigning and leading lines of rivers or river courses involving two or more provinces, autonomous, regions and municipalities
directly under the Central Government and of boundary river courses of provinces, autonomous regions and municipalities directly
under the Central Government shall, under the leadership of river basin administrative agencies concerned, be worked out by water
conservancy administrative departments under the people’s governments of provinces, autonomous regions and municipalities directly
under the Central Government of involved rivers or river courses and, after the people’s governments concerned examine the proposed
lines and come up with comments, submitted to the water conservancy administrative department under the State Council for approval.

   Article 20 Where the realignment of river courses or lakes involves navigable waterways, full consideration should be given to the requirements
for navigation and views solicited in advance from the administrative departments for transportation.

The realignment of navigable waterways should conform to the safety requirements for flood control in rivers and lakes and views solicited
in advance from the water conservancy administrative departments.

The realignment of river courses in rivers which are suitable for bamboo and log rafting or in fishery water areas should take into
account the needs for bamboo and log water transportation and fishery development and views should be sought in advance from the
administrative departments for forestry and fishery. The bamboo and log rafting in river courses should not affect the safety of
flood passage and flood control works.

   Article 21 The control of rivers and lakes shall follow the principle of unified control in line with water systems combined with control at
different levels in order to strength the protect ion and ensure the smooth passage.

Main courses of major rivers and lakes designated by the state, major river courses and lakes involving two or more provinces, autonomous
regions or municipalities directly under the Central Government, boundary rivers and lakes of provinces, ,autonomous regions or municipalities
directly under the Central Government as well as river courses and lakes which serve as national boundaries (borderlines ) shall,
according to the designation of the water conservancy administrative department under the State Council, be under the control of
river bas in administrative agencies and water conservancy administrative departments under the people’s government s of provinces,
autonomous regions and municipalities directly under the Central Government in the place where rivers and lakes are drained. Other
river courses and lakes shall, according to the designation of the water conservancy administrative department under the State Council
or its authorized agencies , be under the control of water conservancy administrative departments under local people’s governments
at or above the county level.

The scope of control for any river course or lake with embankments shall include the water area, sandbanks, beaches, the flood passage
area, the embankments and dyke protect ions between the embankments on both s ides. The scope of control for any river course or
lake without embankments shall include the water area, sandbanks, beaches and the flood passage area between the all-time high flood
levels or the designed flood levels.

The scope of river courses and lakes under direct control of river basin administrative agencies shall be delimited by river bas in
administrative agencies in conjunction with local people’s governments concerned at or above the county level in accordance with
the provisions of the preceding paragraph. The scope of control for other river courses and lakes shall be delimited by local people’s
governments concerned at or above the county level in accordance with the provisions of the preceding paragraph.

   Article 22 The use of land and shore lines within the scope of control for any river course or lake should conform to the requirements for flood
discharge and water flow.

Within the scope of control for any river course or lake it is prohibited to construct buildings or structures impeding flood discharge,
dump garbage and waste residues or engage in activities affecting the stability of river f lows, harming the safety of banks and
embankments or other activities impeding flood discharge in river courses.

It is prohibited to plant trees or long-stalk crops impeding flood discharge in river courses used for flood discharge.

Restrict ions of speed should be imposed in river courses where navigation of ships may endanger the safety of embankments. Marks
for speed restrictions shall be set up upon the consultation between administrative departments for transportation and water conservancy.

   Article 23 Enclosing a lake for cultivation is prohibited. Those reclaimed lakes should be put in order according to the standards set by the
state for flood control and restored from farmland in a planned way.

Enclosing river courses for cultivation is prohibited. If enclosure is really necessary, scientific authentication should be carried
out and on confirmation by the water conservancy administrative department that there is no impediment of flood discharge and water
flow, submitted to the people’s government at or above the provincial level for approval.

   Article 24 Local people’s governments should in a planned way organize residents to move out of river courses for passage of floodwater.

   Article 25 Administrative agencies for rivers and lakes shall organize the planting and maintenance of protective trees along banks and embankments.
Protective trees along banks and embankments shall not be felled without authorization. If anyone intends to fell them, he must obtain
the consent from administrative agencies for river courses and lakes, go through the formalities for a felling licence and complete
the task of regeneration and planting of trees a s required.

   Article 26 For those bridges, approaches, wharves and other engineering structures across a river which seriously intercept or block water,
the water conservancy administrative department concerned may, according to the flood control standards, report to the people’s government
at or above the county level that will, within the scope of powers provided by the State Council, order the construction unit to
rebuild or dismantle them within a time limit.

   Article 27 The construction of bridges, wharves, roads, ferries, pipelines, cables and engineering structures for tapping or draining water
which need to cut across rivers, through rivers or embankments, or to stand on rivers should conform to flood control standards,
shore lines planning, navigation requirements and other technical requirements, and shall not endanger the safety of embankments,
affect the stability of river conditions or impede the smooth passage of floodwater. Before the feasibility study report of the involved
project is to be submitted for approval according to the procedures set by the state for capital construction, the engineering construction
scheme included in the report should be subjected to the examination and approval of the relevant water conservancy administrative
department in accordance with the requirements for flood control as mentioned above.

If engineering structures mentioned in the preceding paragraph need to occupy land within the scope of control for any river course
or lake, or to cut across the space over any river course or lake, or to go through riverbeds, the construction unit should subject
the pos it ion and border of the engineering structures to the examination and approval of the relevant water conservancy administrative
department before completing the formalities for starting the projects according to law. In the arrangement for the construct ion
project, the position and border should be followed as approved by the water conservancy administrative department.

   Article 28 The water conservancy administrative department shall have the right to inspect engineering structures constructed according to the
provisions of this Law within the scope of control for river courses or lakes. When the water conservancy administrative department
exercises inspect ion, the inspected should truthfully provide the information and materials concerned.

The acceptance of engineering structures mentioned in the preceding paragraph upon completion should be taken part in by the water
conservancy administrative department.

Chapter IV Administration of Flood Control Areas and Flood Control Works

   Article 29 A flood control area means an area where floodwater is likely to inundate, which is classified as a flooded area, a flood storage
and detention area or a flood control protected area.

A flooded area means an area to which floodwater reaches without the protect ion of works.

A flood storage and detention area means a depression or a lake from outside embankments including flood–diversion mouths for temporarily
storing floodwater

A flood control protected area means an area protected by flood control works according to flood control standards.

The scope of a flooded area, a flood storage and detention area or a flood control protected area shall be delimited in the flood
control planning or the flood prevent ion scheme, reported to the people’s government at or above the provincial level according
to the scope of powers provided for by the State Council and if approved, announced to the public.

   Article 30 People’s governments at all levels should, according to flood control planning, exercise administration of the use of land within
different flood control areas.

   Article 31 Local people’s governments at all levels should strengthen leadership over the safety and construct ion work within flood control
areas and organize relevant departments and units to conduct flood control education among units and residents within flood control
areas, to popularize flood control know-how and to enhance their awareness of flood control.

They should, according to flood control planning and flood prevent ion schemes, establish and perfect the flood control system as
well as systems for hydrology, meteorology, communications, early warning and monitoring of flood and waterlogging in order to improve
the capability for flood control. They should organize units and residents within flood control areas to actively take part in flood
control work and take measures for flood control and flood evasion in the light of local conditions.

   Article 32 People’s government s of provinces, autonomous regions and municipalities directly under the Central Government in places where flooded
areas or flood storage and detention areas are located should, as required by flood control planning, organize relevant departments
and units to formulate safety and construction work plans for flooded areas and flood storage and detention areas, to bring under
control population growth within flood storage and detention areas, to move residents in a planned way out of flood storage and detent
ion areas which are frequently in use, and to take other necessary safety and protective measures.

Regions and units directly benefiting from flood storage and detention areas should bear obligations of compensation and aid to flood
storage and detent ion areas as required by the state. The State Council and relevant people’s government s of provinces, autonomous
regions and municipalities directly under the Central Government should establish a system to support and give compensations and
aids to flood storage and detent ion areas.

The State Council and relevant people’s government s of provinces, autonomous regions and municipalities directly under the Central
Government may formulate measures for control of safety and construction within flooded areas and flood storage and detention areas
and measures for giving support, compensations and aids to flood storage and detention areas.

   Article 33 Where a construct ion project not intended for flood control is to be carried out within a flooded area or a flood storage and detention
area, the possible impact of floodwater on the construct ion project and the possible impact of the construction project on flood
control should be assessed, a flood impact assessment report be provided and precautions be put forward.

When submitted for approval according to the procedures set by the state for capital construction, the feasibility study report of
the construction project should include the flood impact assessment report having been examined and approved by the relevant water
conservancy administrative department.

Flood impact assessment reports for oilfields, railways, highways, mines, power plants, telecommunications installations and pipelines
to be built within flood storage and detent ion areas should include flood control and flood evasion plans arranged by construction
units themselves. When the construction project is to be put into operation or use, their flood control works should pass the acceptance
by the water conservancy administrative department. Houses built within flood storage and detention areas shall have flat roofs.

   Article 34 Flood control work should focus on large and medium–sized cities, trunk lines of major railways and highways as well as large–sized
key enterprises and their safety be guaranteed.

Cities, economic development zones, industrial and mining areas and important state agricultural production bases under the threat
of floodwater should be protected as key areas and necessary flood control works constructed. 1n urban construction, no one may,
without authorization, stuff or block up originally existing river courses, ditches, branching streams and waterlogging lakes, pools
or depressions, or demolish originally existing embankments used for flood control. If it is really necessary to stuff or block up
or demolish them, consent should be obtained from the water conservancy administrative department and the case be reported to the
people’s government of the city for approval.

   Article 35 The scope of administration and protection of state–owned flood control works should be determined by people’s governments at or
above the county level according to the state provisions before the completion and acceptance of the projects according to the approved
design.

The scope of protect ion of collective–owned flood control works should be determined according to the provisions of people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government Within the scope of protection of flood
control works, exploding, drilling wells, quarrying stones, collecting earth or other operations endangering the safety of flood
control works are prohibited.

   Article 36 People’s governments at all levels should organize the relevant departments to intensify the regular inspection, supervision and
administration over dams of reservoirs. For those dams in danger which fail to conform to the designed flood standards and anti–earthquake
defence requirements, or have serious quality defects, the department in charge

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME POLICY-CONCERNED ISSUES CONCERNING TAX REFUND FOR EXPORTED GOODS

The State Administration of Taxation

Circular of the State Administration of Taxation on some Policy-concerned Issues Concerning Tax Refund for Exported Goods

GuoShuiHan [1998] No.720

December 3, 1998

State taxation bureaus of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan:

Recently, some issues occurring during the execution of the policy of export taxation refund has be reported by relevant regions,
after investigation, the following should be clarified:

I.

The formula (exempted or offset tax = offshore price of export goods * quote price of foreign exchange to RMB * refund rate – refund
fulfilled) listed in Article 1 of the Circular on Budget Management Concerning Tax Exemption, Offsetting and Refund(CaiYuZi [1998]
No.242) promulgated by the Ministry of Finance, the State Administration of Taxation and the People’s Bank of China and in Article
4 of the Circular of the Ministry of Finance and the State Taxation Administration on Tax Exemption, Offsetting and Refund for Export
Goods of Productive Enterprises Enpost_titled to Foreign Business(CaiShuiZi [1997] No.50), only applies to export goods manufactured with
domestic materials or parts. As to the export goods of imported materials or parts, according to Supplementary Circular of the Ministry
of Finance and the State Administration of Taxation on Some Issues Concerning the Taxation of Export Goods (CaiShuiZi [1997] No.14)
and the document CaiShuiZi [1997] No.50, the price of imported materials or parts approved by the Customs should be detracted from
the offshore price while computing tax exemption or offsetting. The formula should be: tax exemption or offsetting = (offshore price
of export goods * quote price of foreign exchange to RMB – taxable price of imported materials or parts approved by the Customs)
* refund rate – refund fulfilled.

II.

The tax rate and refund rate mentioned in Paragraph 2 of Article 2 of the document coded CaiShuiZi [1997] No. 14 of the Ministry
of Finance and the State Administration of Taxation refer to the tax rate and refund rate for export goods.

III.

From now on, the tax rate for export coal shall be 40% of 13%, and specialized certificate of payment should be offered; accordingly,
the Circular of the Ministry of Finance and the State Administration of Taxation on the Restoration of Specialized Certificate of
Value-added Tax Payment for Export Goods(CaiShuiZi [1996] No.8), where it is provided that 3% specialized invoice of tax be offered,
shall be suspended from execution. Specialized certificate of added-value tax may be offered for mechanic and electric products sold
to refund-allowable enterprises winning a bidding by manufacturers, whether the bid winner is enpost_titled to export business or not.

 
The State Administration of Taxation
1998-12-03

 




CIRCULAR OF THE STATE DEVELOPMENT PLANNING COMMISSION, THE STATE ECONOMIC AND TRADE COMMISSION, THE PEOPLE’S BANK OF CHINA ON RELEVANT ISSUES CONCERNING STRENGTHENING CONTROL OVER SALE OF EXCHANGE UNDER CAPITAL ACCOUNT

The State Development Planning Commission, the State Economic and Trade Commission, the People’s Bank of China

Circular of the State Development Planning Commission, the State Economic and Trade Commission, the People’s Bank of China on Relevant
Issues Concerning Strengthening Control over Sale of Exchange Under Capital Account

JiWaiZi [1998] No.992

June 15,1998

Province, autonomous region, the Development Planning Commission of municipality directly under the Central Government, the Economic
and Trade Commission, the branch of People’s Bank of China :

Because of having adopted proper and effective policies and measures and the emergence of new means of investment and financing, in
recent years there has been an increase of foreign investment in the infrastructure and the issue of H share listed abroad and B
share listed within China also have progressed greatly, which have consequently made the sale amount of exchange under capital account
grow in a relatively fast speed and at the same time exerted pressure on the supply of Renminbi to some extent. In order to strengthen
supervision and control over sale of foreign exchange under capital account, following matters concerning the control over sale of
exchange under capital account with approval from State Council are hereby pronounced:

1.

On the premise of continual adoption of moderately tight monetary policy, domestic financial institutions are encouraged to make use
of new financing means to participate in financing of Renminbi in the projects of domestic and foreign funds. Efforts to restructure
should be strengthened to reduce excessive dependence of infrastructure projects on foreign funds.

2.

Within the current limits of authority to examine and approve, no localities and departments are allowed to divide up projects surmounting
the prescribed quota of foreign fund into projects under the quota or deliberately lower down the total investment amount so as to
examine and approve by themselves. In event of foreign-funded projects of BOT, financing of projects outside China, portfolio financing
(ABS) etc., they must be all examined and approved by State Development Planning Commission or by State Council through State Development
Planning Commission without exception.

3.

In case of various kinds of projects utilizing foreign funds and having a need of sale of exchange, yearly plan of fund for sale based
by year should be added in the feasibility report presented for examination. When examining and approving the feasibility report
of the project, the government agencies in charge of the examination and approval should check and determine the prescribed quota
for sale. Copy of the feasibility report approved by examining government agencies concerned should be sent to State Administration
of foreign exchange having the same authority to provide basis for state administration of foreign exchange to learn into the trend
of sale of exchange under capital account.

4.

Establishment of record and registration system of sale of exchange under capital accounts. For those foreign-funded projects needing
sale of exchange (including the issuing of B share listed within China and the share listed abroad), institutions with a project
over the prescribed quota should go through record and registration of sale of exchange in State Administration of Foreign Exchange
within 30 days since the date of approval of the feasibility report of the project in question. Institutions with a project below
the quota should finish record and registration of purchase of foreign exchange in local branch of State Administration of foreign
exchange. Those projects not having been recorded and registered should not be granted the right to sale exchange.

5.

If it is needed to issue B share within China and issue share abroad, listed companies having a direct demand for foreign exchange
should be given priority. For those listed companies having a direct demand for foreign exchange, the need for sale of exchange should
be added into the prospectus of the company. Exchange incomes can be deposited in Chinese banks in Hong Kong after approval and can
be taken back for sale of exchange by installments according to the progress of use of funds in domestic projects.

6.

If found having committed activities of interest arbitrage through sale of exchange, enterprises which have borrowed foreign commercial
loans, should be dealt according to relevant provisions.



 
The State Development Planning Commission, the State Economic and Trade Commission, the People’s Bank of China
1998-05-29

 







CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS ON THE LEFTOVER TARIFF ISSUES CONCERNING UNEVALUATED EQUIPMENT IMPORTS BY FOREIGN INVESTORS OF PROJECTS OF PROCESSING WITH CUSTOMERS’ MATERIALS

The General Customs Administration

Circular of the General Administration of Customs on the Leftover Tariff Issues Concerning Unevaluated Equipment Imports by Foreign
Investors of Projects of Processing with Customers’ Materials

ShuShui[1998]No.315

June 5, 1998

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

The State Council made the decision on the first half of 1997 to extend the period for deferred tariff payment of non-evaluated equipments
imported after April 1, 1996 by foreign investors of projects of processing with customers’ materials to December 31, 1997. The tariff
can be paid by installments in 5 years calculated from January 1, 1998 with an annual payment of 20 % of the total amount. With the
approval of the State Council, the General Administration of Customs and the Ministry of Finance decide, in order to encourage the
development of processing trade and ensure policy continuity, that the aforementioned equipments shall enjoy tariff exemption treatment
according to the Circular of the State Council on Adjusting the Tariff Policy of Equipment Imports (GuoFa [1997] No. 37).

Relevant customs please conduct examination on non-evaluated equipments enjoying deferred tariff payment (including bail payment)
treatment upon receiving this Circular. Except for goods listed in the Catalogue of Imported Goods of Foreign Invested Projects Enjoying
No Tariff Exemption, cases involving other goods defined hereinabove shall be wound up as tariff exemption ones with relevant procedures
duly handled. All competent customs shall intensify follow-up supervision in accordance with relevant provisions concerning equipments
with tariff exemption or reduction.

It is hereby notified.



 
The General Customs Administration
1998-06-05

 







INTERIM MEASURES FOR TRIAL IMPLEMENTATION OF TRAVEL AGENCIES WITH CHINESE AND FOREIGN INVESTMENT

e0108219981029the State Council20020101

The National Tourism Administration, the Ministry of Foreign Trade and Economic Cooperation

Interim Measures for Trial Implementation of Travel Agencies with Chinese and Foreign Investment

Decree [1998] No.11 of the National Tourism Administration, the Ministry of Foreign Trade and Economic Cooperation

(Approved by the State Council on October 29,1998, Promulgated by Decree No.11 of the National Tourism Administration and the Ministry
of Foreign Trade and Economic Cooperation on December 2,1998)

Article 1

These Measures are formulated in accordance with the Law of the People’s Republic of China on Chinese and Foreign Equity Joint Ventures
and the Regulations on Administration of Travel Agencies as well as other relevant laws and regulations for the purposes of further
expanding the opening up of tourist industry and promoting the development of tourist industry.

Article 2

These Measures are applicable to travel agencies with Chinese and foreign investment (hereinafter referred to as joint investment
travel agencies) that are established within the Chinese territory by foreign companies or enterprises and Chinese companies or enterprises.

Article 3

In applying for establishing a joint investment travel agency, the Chinese joint venture partner shall meet the following requirements:

(1)

It is an international travel agency;

(2)

Its average rate of outside contacts exceeded 30,000 persons per year during the 3 years before the application;

(3)

Its gross sales in the travel business per year exceeded 50,000,000 yuan during the 3 years before the application;

(4)

It is a regular member of the Chinese Tourism Association.

Article 4

In applying for establishing a joint investment travel agency, the foreign joint venture partner shall meet the following requirements:

(1)

It is a travel agency with international travel operations or an enterprise that owns a wholly-funded travel agency with international
travel operations;

(2)

Its annual gross sales in the travel business exceed US$50,000,000;

(3)

It has acceded to an international or a domestic computer reservation network or has built its own computer reservation system;

(4)

It is a regular member of its home country’s tourism association.

Article 5

A joint investment travel agency to be established shall meet the following requirements:

(1)

Its registered capital shall be no less than RMB 5,000,000 yuan;

(2)

It shall take the form of a limited liability company;

(3)

The proportion of the Chinese joint venture’s investment to the registered capital shall be no less than 51%;

(4)

Its legal representative shall be appointed by the Chinese side;

(5)

It has business premises, facilities and staff that are commensurate with demands; and

(6)

The duration of joint venture shall be no longer than 20 years.

Article 6

A joint investment travel agency shall, in accordance with the provisions on operating inbound tourism by international travel agencies,
pay a deposit in guarantee of travel agency quality.

Article 7

The examining and approving procedures for joint investment travel agencies are:

(1)

Chinese joint venture partner shall submit to the departments of tourism administration of the provinces (autonomous regions, municipalities
under the Central Government) or municipalities separately listed on the State plan in the localities where they are located the
project proposals, feasibility study reports and other documents for establishing a travel agency joint investment. The provincial
departments of tourism administration shall, after their preliminary examination, transfer and report thereon to the National Tourism
Administration.

Where the Chinese joint venture partner are enterprises directly under the Central Government, their competent departments shall,
after their preliminary examination, transfer and report thereon to the National Tourism Administration.

The National Tourism Administration shall, in accordance with the relevant laws and regulations of the State on tourism administration;
examine and approve the submitted documents.

(2)

Chinese joint venture partner shall, after obtaining the reply of approval of the National Tourism Administration, submit to the provincial
competent departments of foreign economic and trade in the localities where they are located the contracts, articles of association
and other documents of the joint investment travel agencies to be established. The provincial competent departments of foreign economic
and trade shall, after their preliminary examination, transfer and report thereon to the Ministry of Foreign Trade and Economic Cooperation.

Where the Chinese joint venture partners are enterprises directly under the Central Government, their competent departments shall,
after their preliminary examination, transfer and report thereon to the Ministry of Foreign Trade and Economic Cooperation.

The Ministry of Foreign Trade and Economic Cooperation shall, in accordance with the relevant laws and regulations of the State on
foreign investment, examine and approve the submitted documents.

(3)

For the projects for which establishment has been approved, the Chinese joint venture partner shall undertake the formalities of registration
and taxation registration in accordance with the provisions on the basis of the Approval Certificate for Enterprise with Foreign
Investment issued by the Ministry of Foreign Trade and Economic Cooperation and the License for Operating Business of Travel Agency
issued by the National Tourism Administration.

Article 8

The following documents shall be submitted in applying for establishing a travel agency with joint investment:

(1)

materials certifying the qualification of the Chinese joint venture partner, including: a copy of its business license, the License
for Operating Business of Travel Agency, annual business examination reports for the previous 3 years before the application and
the testimonial of regular membership of the relevant tourism association;

(2)

materials certifying the qualification of the foreign joint venture partner, including: a copy of its registration certificate, a
certificate of credit worthiness issued by its banker, papers certifying its financial position issued by an accounting firm, a certificate
of access to a network issued by the relevant computer company, a certificate of regular membership of the home country’s tourism
association and the annual report of the year before the application;

(3)

project proposal for the joint investment travel agency;

(4)

feasibility study report for the joint investment travel agency;

(5)

the contract and articles of association of the joint investment travel agency;

(6)

other materials whose submission is required by laws, regulations or the examining and approving authority.

Article 9

Each foreign joint venture may invest to establish only one joint investment travel agency within the Chinese territory.

Article 10

No joint investment travel agency is allowed to establish branches during the trial period.

Article 11

A joint investment travel agency may operate both inbound and domestic travel businesses.

Article 12

A joint investment travel agency is not allowed, for the time being, to operate its business for Chinese citizens to travel to a foreign
country, the Hong Kong Special Administrative Region, Macao and Taiwan.

Article 13

Where operating special travel programs and programs for travel to special regions, a joint investment travel agency shall report
same to the National Tourism Administration and the relevant departments for approval.

Article 14

A joint investment travel agency shall not organize and arrange any programs which include obscenity, gamble, drug-taking or any other
programs which are hazardous to social morality and physical and mental health of the people; nor shall it organize any programs
which are injurious to the State interests and national dignity of the People’s Republic of China; nor shall it organize any programs
which contain features that are forbidden by China’s laws and regulations.

Article 15

Engagement of tourist guides within the Chinese territory by joint investment travel agencies shall be conducted in accordance with
the relevant provisions of the State.

Article 16

Joint investment travel agencies shall subject themselves to the administration of tourism administration departments.

Article 17

Joint investment travel agencies must submit statements on finance, accounting and statistics to tourism administration departments
and other relevant departments in accordance with the relevant provisions, and accept business inspection.

Article 18

The income and expenditure in foreign exchange of a joint investment travel agency shall be dealt with in accordance with the relevant
measures on enterprises foreign investment.

Article 19

Joint investment travel agencies must abide by the laws and regulations of the People’s Republic of China, and subject themselves
to the jurisdiction of China’s laws and regulations. Their appropriate business activities and lawful rights and interests shall
be protected by China’s laws and regulations.

Joint investment travel agencies that commit any acts violating China’s laws and regulations shall be dealt with according to the
relevant laws and regulations.

Article 20

Where the provisions of these Measures are violated, the tourism administration departments shall impose punishments in accordance
with the Regulations on Administration of Travel Agencies and the Rules for Implementation of the Regulations on Administration of
Travel Agencies.

Article 21

During the period of implementation of these Measures, the Interim Measures for Examining and Approving the Establishment of First
Category Travel Agencies with Chinese and Foreign Investment within the State Tourist and Holiday Resorts remain in effective.

Article 22

The establishment of joint investment travel agencies by investors from the Hong Kong Special Administrative Region, Macao or Taiwan
together with those from within the mainland shall be handled by reference to these Measures.

Article 23

The National Tourism Administration and the Ministry of Foreign Trade and Economic Cooperation shall be responsible for the interpretation
of these Measures.

Article 24

These Measures enter into force as of the date of promulgation.



 
The National Tourism Administration, the Ministry of Foreign Trade and Economic Cooperation
1998-12-02

 







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...