2004

URGENT CIRCULAR OF THE PEOPLE’S BANK OF CHINA AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE PROHIBITION OF PURCHASE OF FOREIGN EXCHANGE FOR ADVANCE REDEMPTION OF LOAN

The People’s Bank of China, the State Administration of Foreign Exchange

Urgent Circular of the People’s Bank of China and the State Administration of Foreign Exchange on the Prohibition of Purchase of Foreign
Exchange for Advance Redemption of Loan

YinChuan [1998] No.53

August 31,1998

Branches the People’s Bank of China in all provinces, autonomous regions, and municipalities directly under the Central Government,
and in Shenzhen Economic Zone; Branches of the State Administration of Foreign Exchange in all provinces, autonomous regions, and
municipalities directly under the Central Government, and in Shenzhen Economic Zone; Industrial and Commercial Bank of China,Agricultural
Bank of China,China Construction Bank,China investment Bank, Bank of Communication,CITIC Industrial Bank,China Everbright Bank,China
Huaxia Bank,China Minsheng Banking Corp., Guangdong Development Bank, Shenzhen Development Bank,China Merchants Bank, Fujian Xinye
Bank, Shanghai Pudong Development Bank:

Since this year, some enterprises are found to have illegally applied for extension of Renminbi loan through various means to purchase
foreign exchange for advance redemption of debts in foreign currencies. Such actions violated the provisions governing the control
over the credit and capital account, intensified the pressure on balance of the payments, endangered the national financial security,
so they must be prohibited strictly. For this purpose, on August 20, People’s The bank of China and State Administration of Foreign
exchange have jointly issued the Circular on Relevant Issues Governing the Prohibition of Purchase of Foreign Exchange for Advance
Redemption of Loan. It is hoped that every commercial the banks, enterprises and concerned parties shall implement it earnestly.

In order to carry out this work satisfactorily, we make the following notice again:

I.

Commercial the bank shall strengthen their control over the credit.

Each commercial the bank shall improve its financial services and extend timely loan in Renminbi based on the principle of credit
to actively and positively support enterprises’ production, marketing and construction, and the export and import trade; at the same
time it shall strengthen its credit management. First, they shall recall the due principal and interest of loan in Renminbi according
to the laws and strictly prohibit the borrowing enterprises to purchase foreign exchange with Renminbi to make advance redemption
of debts in foreign currencies while defaulting the principal and interest of due loan. Secondly, the newly extended loan shall be
strictly sticked to the terms of loan and be confined to the production and construction. Thirdly, the bank of deposit have the right
to check, investigate and stop enterprises defaulting the principal and interest of due loan in Renminbi and peculating the fund
for production and construction to purchase foreign exchange for advance redemption of debts in foreign currencies.

II.

SAFE shall strengthen their control over the payments of foreign exchange under the capital account.

All foreign exchange payments under capital account shall be approved by SAFE. In case of foreign exchange payments under capital
account, own foreign exchange shall be firstly used and foreign exchange can be purchased for the insufficient part.

SAFE should control restrictly the redemption of foreign loans, the change of foreign loans into loans and the own-operated loan of
foreign exchange in advance. In the event that there is no clause of advance redemption of foreign debts in the borrowing contract,
the advance the payments is not allowed; if there is the clause of advance repayment, it shall first be repaid with their own foreign
exchange after the examination and approval by SAFE and the debtor can’t purchase foreign exchange to pay the debts.

SAFE shall not grant permission for intercity purchase of foreign exchange for repayment of debts, the permission for the purchase
of foreign exchange for abroad investment in equity or in credit and that for the purchase of foreign exchange for the repurchase
of shares and bonds in foreign currencies. Before December 31 1998, SAFE shall not allow the purchase of foreign exchange with Renminbi
to pay the domestic foreign exchange loan. The repurchase with other foreign exchange must be approved by SAFE.

III.

Designated foreign exchange the banks shall strengthen their business control over the capital account transaction.

Every designated foreign exchange the bank must handle such transactions as the purchase, the sale and the payments of foreign exchange
under capital account, the domestic appropriation and transfer of account and the opening of the special account with the presence
of the approval or authorized documents by SAFE.

Every designated foreign exchange the bank can not handle the sale of foreign exchange for the advance redemption of foreign debts,
that of entrusting loan(s) in foreign exchange and that of proprietary loan(s) in foreign exchange without authorization; or handle
the intercity sale of foreign exchange for repayment of loan unauthorizedly.

IV.

Risk control over the foreign exchange business under capital account shall be strengthened by financial institutions.

Sub-branches or more subordinate branches of every designated foreign exchange the bank shall not handle the purchase, the sale and
the payments of foreign exchange, the domestic appropriation and transfer of account and the opening, the purchase and the payments
of special account under capital account any more. If the above-mentioned businesses have been operated, they shall be passed over
to next higher institutions in charge before September 30 1998.

Non-the bank financial institutions shall not engage in settlement of foreign trade without exception.

The registration of foreign debts for non-the bank financial institutions and leasing company with foreign investment is changed.
Periodic registration is changed to transaction by transaction register and the repayment of principal and interest of loan shall
be examined and approved by SAFE transaction by transaction.

In extending loan in foreign exchange, each financial institution shall include the clause of “Registration of foreign exchange loan
in foreign exchange must be finished within 15 days since the signing of the contract” in the loan contract. And the repayment of
principal and interest shall be approved by SAFE.

V.

Make a comprehensive check over the advance redemption with purchased foreign exchange and handle severely the violating personnel.

Every head office of commercial the banks shall strengthen its control over credit, prohibit to extend loan in Renminbi for enterprises
to purchase foreign exchange for advance redemption of debts. It shall raise detailed requirements and organize concerned personnel
to carry out the check over the implementation by every branch.

The branches of State Administration of Foreign exchange shall recheck the approvals and all the foreign the payments under capital
account transaction by transaction.

The provincial (autonomous regional, municipal) branches and city branches of the People’s bank of China shall select some enterprises
with relatively big amount of foreign exchange payments under capital account to check their source of Renminbi for purchase of foreign
exchange, the approval of foreign exchange payments and the sale of foreign exchange under capital account. After August 20, if any
cases of extending loans for enterprises to purchase foreign exchange for advance redemption, any cases of giving approval to enterprises
to make advance redemption or any cases of and selling foreign exchange to enterprises in violation of relevant regulations occur,
they must be quickly checked and verified and the leader in direct charge of the affair shall be dismissed from post and the acting
personnel shall be penalized seriously; if violating criminal law, they shall be punished according to the laws.

Branches the People’s Bank of China in all provinces, branches of the State Administration of Foreign Exchange and the General Banks
of various commercial banks shuold delieved the circular to the leader of every level and the related persons right now, the issue
on carring out should be replied to the People’s Bank of China and the State Administration of Foreign Exchange before the date of
September 15.



 
The People’s Bank of China, the State Administration of Foreign Exchange
1998-08-31

 







SEVERAL ISSUES OF THE SUPREME PEOPLE’S COURT THAT SHALL BE TAKEN INTO CONSIDERATION IN CURRENT ECONOMIC TRIALS




The Supreme People’s Court

Several Issues of the Supreme People’s Court that shall be Taken into Consideration in Current Economic Trials

Under the new situations, with a view to assuring that the economic trials are carried out surrounding the central target and the
overall situation of the Party and the state, and sticking to the guiding thoughts of providing service for economic construction
and providing judicial guard and service for the construction of socialist economic system, at present, the following issues shall
be taken into consideration in the economic trial in the People’s Court:

(1)

Issues concerning provision of legal guard and service for the transformation of state-owned enterprises

Along with the further deepening of the transformation of state-owned enterprises, cases of various kinds of disputes arising from
the transformation of state-owned enterprise such as reorganization, unite, merge, lease, contract, transfer and adoption of stock
system and stock cooperation system are increasing. But the laws and regulations concerning the transformation of enterprises are
relatively lagged behind; the policy and methods vary from region to region. The transformation of enterprises in some places do
not conform with provisions and violate the basic principles of the laws, which makes more difficulties in the trial of cases. In
dealing with this kind of cases, following issues shall be specified:

1.

Sticking to the active and prudent principle. The courts at all levels shall understand completely that the transformation of state-owned
enterprise is an important strategic decision of the Party and the country in constructing the socialist market economic system and
stabilizing the socialist economic system, and shall be in an active attitude, exercise the function of trial to provide effective
judicial guard and excellent judicial service to the transformation of state-owned enterprise, and shall start from the overall interest
of the state to handle each cases involving the transformation of state-owned enterprise carefully and prudently.

2.

Sticking to the principle that the legal principle and the transformation policy of the state are connected with each other. Sticking
to legal principle means to deal with cases in accordance with the Constitution, the General Principles of Civil Law, the Law of
State-owned Industrial Enterprise, the Corporation Law and related administrative regulations. Where there are explicit provisions
in law, the case shall be handled in accordance with law; where there is no explicit provision in law, the case shall be handled
in accordance with policy; and where there is no explicit provision in both the law and policy, the case shall, sticking to starting
from reality and weighing, be handled according to the criteria of “three favorables”. Where the provisions provided for by local
government governing the transform of enterprises are in conflict with the central guideline, policy and existing laws, the government
shall be advised to sort out and amend related documents so that the relevant documents promulgated by local governments are legal,
fair and reasonable. With respect to the transformation documents made by local governments that violate the central guideline, policy
and existing laws, an account shall be made timely to relevant authorities and these documents cannot be the proof in dealing with
cases.

3.

Issues concerning the bearing of liabilities after the transformation of enterprise shall be dealt with carefully. In hearing cases
involving the transformation of enterprise, the transformation of enterprise shall be supported firmly and the activities to infringing
on the national interest and the legal rights and interests of creditor by using the transformation shall be punished according to
law. At present, the occurrence that the debt assumer is changed without the acknowledgement of the creditor is relatively predominant.
This kind of illegal act has brought harms to the state and other creditors’ interests, to which great importance shall be attached.
With regard to the problem on assumption of the former debts after transformation of enterprise, it shall be solved according to
different circumstances: where a new assumer is confirmed for the debts of the transformed enterprise before transformation and has
the creditor’s consent, the validity shall be determined; where the new confirmed assumer, even without the consent of the creditor,
has adequate capability to discharge the debts, and the creditor’ interests are little affected, the new debtor may be determined
to assume the liabilities in the light of actual circumstances; With respect to the acts that infringe the national interest of the
rights and interest of the creditor such as changing the debtor without authorization, turning banks into figureheads, evading and
avoiding debts by the chance of restructuring of enterprise, the invalidity shall be determined in accordance with the provisions
of the General Principles of the Civil Law and the Corporation Law; Where only the asset of the transformed enterprise rather than
the debt of the transformed enterprise has been dealt with, in accordance with the relevant provisions set forth in the General Provisions
of Civil Law, the debt before transformation shall in general be born by the enterprise after transformation within the extent equivalent
to the assets thus received.

4.

Attaching importance to well organizing asset evaluation. The problems of the unconformity with standard in the asset evaluation in
the transformation of enterprise are predominant and there are many disputes and hidden trouble. Some enterprises did not employ
competent institute to conduct asset evaluation in the transformation; some did evaluation, though, it is of great arbitrariness
of undervaluation or overvaluation. Asset evaluation is the objective requirement in determining the actual value of tangible and
intangible assets of enterprise and also an effective method to prevent the loss of state-owned assets. The people’s court shall
advise the relevant governmental departments in charge of the transformation to attach importance to this work and supervise and
urge relevant evaluation institutions to conduct legally the evaluation according to the legal, factual, scientific, fair and reasonable
evaluation principle. In accordance with the administrative measures and the rules of implementation of the evaluation of state-owned
assets, the evaluation of the assets of state-owned enterprises shall be conducted by the institution legally eligible.

5.

Issues of carefully dealing with the preservation of the fund of state-owned enterprise. The technology reform fund, difficulty solving
fund and grain purchasing fund granted by the People’s Bank of China in accordance with the directions of the leaders in the State
Council are closed-end fund controlled by the state and have great importance in the implementation of structure adjustment and the
going on wheels of reform of state-owned enterprise. The local courts shall not adopt preservation measures such as fund freezing
to this part of closed-end fund, let alone the executive measures such as enforced appropriation.

(2)

Issues concerning the standardizing in accordance with law the trial of bankruptcy case

After the seminar on the trial of bankruptcy case of the courts around the country in March this year, all courts earnestly implement
the spirit of the seminar and take effective measures to standardize in accordance with law the trial of enterprise’s bankruptcy
case, which has gained obvious achievements. But recently, still there are some problems in the trial of enterprise’s bankruptcy
case in some courts; the main problem thereof is that in some pilot cities, the bankruptcy of enterprise does not abide by relevant
provisions of the State Council to convert the asset into money and close the enterprise; there are cases of transferring all asset
in disguised form; and that the bankruptcy of state-owned enterprise in non-pilot cities adopt the special policies of the State
Council. With respect to this, certain issues are hereby reaffirmed:

1.

Strictly follow the scope of the application of relevant documents of the State Council. The courts at all levels, in hearing the
enterprise’s bankruptcy case, shall not expand the applicable scope of the documents, Guo Fa (1994) No.59 and Guo Fa (1997) No. 10.
The bankruptcy of the state-owned enterprise in pilot cities, if the above-mentioned documents are applicable, shall be listed in
the State Enterprise Merger & Bankruptcy and Reemployment Plan.

2.

Strictly forbidding the bankruptcy of the enterprise in non-pilot cities to take the ride to apply special policies. The bankruptcy
of the state-owned enterprise outside the pilot area and the bankruptcy of non-state-owned enterprise in pilot cities and non-pilot
cities shall be implemented in accordance with the provisions concerning the bankruptcy and debt repayment procedures of legal persons
in the Bankruptcy Law of Enterprise of the People’s Republic of China (Trial) and the Civil Procedure Law of the People’s Republic
of China. The application by free riding of the special policies as prescribed in the documents of the State Council is strictly
forbidden.

3.

To hold pass in each stage of the enterprise’s bankruptcy case. The stages as in file registration, asset liquidate, asset evaluation
shall be carefully carried out in accordance with the requirements of the Supreme People’s Court; the guidance and supervision of
the liquidation team shall be especially strengthened. The transference of the whole enterprise under disguised form shall be strictly
prevented; it shall take endeavors to realize the asset of the bankrupted enterprise and to close the bankrupted enterprise. The
court shall make full reliance of the leadership of the Party’s committee to strengthen the contact and harmonization with related
governmental authorities and shall actively coordinate related governmental authorities to arrange the employees of the bankrupted
enterprise to maintain the social stability.

(3)

Issues concerning the dealing in accordance with law of the case involving the rectification of finance orders

During the process of rectifying the finance order, cleaning up the “three arbitraries in finance” and closing the financial institutions
whose assets can’t offset the debts, the people’s court shall pay attention to following matters:

1.

It is necessary to build up the awareness of overall situation. The rectification of finance order and dissolve financial risks are
the important measures adopted by the central authorities to assure the continuing and stable development of the national economy
of our country. The people’s court shall build up the awareness of overall situation, exercising the function of trial to assure
firmly the the work go on wheels. The arrangement and requirements in the circular of the Supreme People’s Court on the trial of
finance cases in February this year shall be further implemented and realized, starting from the overall situation of preventing
and dissolving financial risks to mediate and deal with cases of financial disputes in strict accordance with financial laws and
regulations, provisions of relevant documents of the State Council and the spirit of relevant documents of the Supreme People’s Court.
It is not allowed that each one goes his own way for regional or partial profit so as to hinder or influence the progress of this
work.

2.

Issues concerning the case of some closed financial institutions. In recent years, the State Council closed some non-bank financial
institutions and a few commercial banks and designated some financial institutions to take the trusteeship of their credits and debts.
The Supreme People’s Court issued respective circulars on how to deal with the case of these closed institutions. Because these closed
institutions have many branches involved in an extended financial business and many public deposits and overseas deposits, under
the present situation, that the state adopted administrative measures to close and rectify is beneficial in overall situation to
maintain the social stability, the image of the state and protect the rights and interests of the creditors. The dealing with such
kind of problem afterwards shall still implement the requirements as put forward by Xiao Yang, the president of the Supreme People’s
Court, in the symposia of the presidents of higher courts on 2 July this year, i.e. “with respect to the economic dispute cases of
the commercial banks and other financial institutions closed by the State Council, those that have not instituted an act shall no
be accepted; those that have been accepted shall discontinue the action; those that the verdict has come into effect shall suspend
the execution. The trial and execution will be resumed after the circular from the Supreme People’s Court”.

3.

Issues concerning the case of cooperation funds of farmers. In accordance with the provisions of the document Zhong Fa (1997) No.
19, the rectification of the cooperation funds of farmers shall be led, organized and harmonized by local governments in accordance
with policies. The people’s court shall be prudent in dealing with cases of the dispute arising from cooperation funds of farmers.
The dispute arising from the cooperation fund of farmers as the debtor and the dispute between the funds and farmers shall be dealt
with by the rectification authorities in accordance with the policies of the State Council, except the necessary assistance to the
cooperation funds of farmer to liquidate and collect debt as required by the authorities in charge of the rectification.

4.

Issues concerning the case of arbitrary funds raising. At present, all regions and departments are all conducting the rectification
of the “three arbitraries in finance”, i.e. arbitrary funds raising, arbitrary approval of financial institutions and arbitrary operation
of financial business, under the unified arrangement of the Central Committee of the Party and the State Council. In accordance with
the provisions of the document Guo Ban Fa (1998) No. 126 of the Office of the State Council, the principle in rectifying the “three
arbitrary in finance” is “The one that is in charge shall rectify, the one that approves shall take responsible, the one that uses
money shall pay the debt, the one that provides guaranty shall bear respective liability”. So, the dispute arising from the arbitrary
funds raising from random object without being legally approved, especially the disputes arising from the illegal funds raising shall
be dealt with by related authorities.

5.

Issues concerning the freezing of the account of securities institutions and the fund appropriation wherefrom. The freeze and appropriation
of deposit of the stockholders kept in the account of securities institutions will affect the transaction of the stockholders, which
easily causes disputes and leads to instability of the stock market and the society. Thus all courts shall be prudent in appropriating
fund from the frozen account of securities. The nature of the account and the fund shall be checked before measures are adopted.
Under the circumstances that the proprietary account of the securities institutions is not separated from the agency account, only
the fund that has been found out to be the fund of the securities institutions may be frozen and appropriated. The Supreme People’s
Court has issued two circulars on this matter, all courts shall pay full attention to this issue.

(4)

Issues concerning the case involving rural areas

To assure the implementation of the basic policies of the Party concerning rural areas is the basic guiding ideology for the people’s
court in dealing with cases involving rural areas. At present, the maintenance of the stability of the overall situation of the rural
areas and the long-term stability of the policies of the Party concerning rural areas shall be emphasized. The unification of the
protection of the rights and interests of the collective economy in rural areas and the protection of the rights and interests of
farmers shall be stuck to and the unification of the legal effects of trial and the social effect thereof shall be stuck to.

1.

To do a good job in the trial of the case of the disputes arising from the land contract in rural areas. The stabilizing of the land
contract policies and extending the land contract term directly concern the enthusiasm of farmers and the development and stability
of rural areas. It shall be specified that the household contract operation is a layer within the collective economic organization,
and is the base of this kind of dual operation system when compared with another layer, the collective unified operation. The Decision
of the Central Communist Party on Certain Material Problems in the Work in Agriculture and Rural Areas as passed in Third Plenary
Session of the Fifteenth Central Committee of the Communist Party pointed out that: “The key point in stabilizing and perfecting
the dual operation system is to stabilize and perfect the land contract relationship. The policy to prolong 30 years of the land
contract term shall be firmly stuck to and the laws and regulations that can assure the long-term stability of the land contract
relationship in rural areas shall be promulgated without delay to grant a long-term and protected land use right to farmers”. In
the trial of the case of land contract, this Central policy shall be carefully implemented and the land contract right and production
self-determination rights and rights to gain proceeds from operation shall be protected by practical measures. The illegal activities
such as arbitrarily increase the land contract fees, tearing up the contract, more than one contract in one land, taking back the
land for high price contract, shortening the contract term shall be corrected strictly in accordance with laws.

2.

Doing a good job in the trial of the dispute arising from the contract for sale and purchase of agriculture products and byproducts.
It is an important policy of the Party’s adherence to market orientation in the reform of rural areas to reform the sale and purchase
system of agriculture products, encourage the farmers to come into the circulation zone and to foster the market of agriculture products
and the market of productive elements so that the rural economy throws away the limitation of natural economy and the fetter of planned
economy. Under the new circumstances that the marketization extend are increasing in all stages of the sale and purchase of agriculture
production, the strict performance of all kinds of sale and purchase contracts for agriculture products and byproducts is very important
to the promotion of the reform in rural areas and the stable development of agriculture. In the trial of the cases of this kind of
dispute, it shall start from the maintenance of the legal effect of the contract, to punish in accordance with law the activities
that violate contracts, rescind contracts and other activities that infringe on the legal rights and interests of farmers. At present,
in the trial of cases of the circulation of foodstuffs, the three policies that the open purchase of extra foodstuff by protecting
price, the foodstuff collection and reservation enterprises shall sell with a profitable price, and foodstuff purchase fund operate
in a closed cycle shall be firmly implemented, and such violating activities as the low price sale of foodstuffs by foodstuff dealers
shall be punished in accordance with laws to assure the smooth going of the reform of the circulation system of foodstuffs.

3.

The cases of farmers harmed by production and sale of counterfeited and inferior seeds, fertilize and pesticide shall be tried timely.
The activities to produce and sell counterfeited and inferior seeds, fertilize and pesticide cause great harms to agriculture production
and impair greatly the interest of farmers. This kind of cases shall be tried timely and proper measures shall be taken to reduce
loss and actually protect the rights and interest of farmers. It shall be guarded against to hear a case just for the sake of this
case. The punishment of the producer and seller involved shall be attached importance to and the criminal clues thus found shall
be referred to other competent authorities.

(5)

Issues concerning the trial of cases involving foreign elements and cases involving Hong Kong and Macao interests

In recent years, the economic disputes cases involving foreign elements and cases involving Hong Kong and Macao interests increase
largely; the people’s courts shall pay especial attention to the following issues at the time of trials:

1.

Paying adequate attention to the influence of Asian financial crisis to the trial of the cases involving foreign elements. Attention
shall be paid at any moment to the new instances resulting from Asian financial crisis in the cases of disputes arising from Chinese-foreign
joint venture investment, the equity transfer of Chinese-foreign joint venture enterprise, contracts for international sales of goods
and other international economic and trade, to the study of new problems thereof and put forward corresponding countermeasures. At
the same time, attentions shall be paid to the influence of the return of Hong Kong and Macao SAR to the motherland and the steps
and measures taken in the process of joining the World Trade Organization to the import and export trade, foreign trade system and
the reform of foreign trade operation mechanism and to the new problems that have come out or are about to come out in the economic
trial.

2.

The issues concerning jurisdiction shall be dealt with prudence. In the trial of cases involving foreign element, the state sovereignty
principles shall be stuck to. The case that shall be accepted by the court of our country in accordance with law shall be accepted
firmly in accordance with law. In accepting cases, special attention shall be paid to the provisions of the Civil Procedure Law,
strictly examining the connecting factors of the facts of the case so that the jurisdiction can be precisely determined. Where both
parties are not the enterprises of our country and there is no actual relation between the disputes and our country and the investigation,
evidence obtaining and execution are of real difficulties, the parties may be informed to institute litigation in the courts of other
countries.

3.

Issues concerning the exit prohibition shall be prudently handled. In the trial of cases involving foreign elements or Hong Kong or
Macao interests, the measures to prohibit the concerned party to leave the boundary may only be applied to such circumstances that
the party has involved in un-concluded economic litigation that can’t be tried or executed if the party concerned leaves the boundary.
Where the overseas legal person is involved in the un-concluded economic litigation within the territory, the legal representative
and the manager in charge of business may be prohibited to leave the boundary. Where the foreign-funded enterprise whose assets can’t
offset its debt, it shall be dealt with in accordance with the Corporation Law and the Law of the People’s Republic of China on Chinese-foreign
Equity Joint Ventures; the representatives and investors of the foreign party shall not be prohibited to leave the boundary. Only
where the foreign shareholder has deliberated fraudulence in the investment may the legal representative of the foreign shareholder
be prohibited to leave the boundary. Where it is really necessary to prohibit the foreign party to leave the boundary, it shall be
carried out in accordance with the provisions of Law of the People’s Republic of China on Control of the Entry and Exit of Aliens.
Special attention shall be paid to the rules that the implementation shall be with good reason, with advantage and with restraint
and that prohibition the concerned foreign party to leave the boundary does not mean to limit the personal freedom of the party.
Any limit of the personal freedom of the party shall be refrained strictly in accordance with law.

4.

Issues concerning the stop of payment of the fund under credit letter. Credit letter is a main payment method of international settlement.
Disputes arising from credit letter are increasing along with the continued expansion of opening-up and increasing of foreign trade.
In recent years, the freeze taken by the courts of our country on the fund under credit letter has attracted great attentions of
the international legal world and the finance world and some improper freeze of the courts of our country has caused losses of international
credit and property to the banks of our country. So we drafted the Provisions on Certain Issues of the Determination to Stop the
Payment of Fund under Credit Letter (draft) for discuss. In dealing with these issues, one is to stick to the independent principle
of credit letter and not to stop the payment of the fund under the credit letter due to the disputed arising from the contract for
international sale of goods and other basic contracts; two is that the payment can only be stopped, as required by the applicant
and with the guaranty of the applicants, where there is adequate evidence that the seller (the beneficiary) is conducting fraudulency
under credit letter or providing fake bills. Three is that even it is under the second circumstances as mentioned above, but the
credit letter has been accepted and transferred, or the credit letter has been negotiated, the payment shall not be stopped by determination.
Because in such case, the fraudulence can’t be stopped and by contrary, the rights and interests of the bona fide third party will
be impaired and the issuing bank will be sued outside our country and may lose the suit. Some courts violate the above principles
to abuse the payment stop measures, which not only can’t recover loss, but also deteriorate the loss. Thus all courts shall hold
the pass strictly and require the applicant to bear, in accordance with the law, the losses due to the freeze after mistake application.

5.

Issues concerning the support and supervision of international commercial arbitration. Arbitration and action are closely related
as two methods of solving international economic and trade disputes. The court shall support the arbitration institutions in foreign
business to exercise jurisdiction in accordance with law, and after receiving the request transferred by the arbitration institutions
or the application made by concerned parties, shall not only take property preservation measures in accordance with laws or conduct
implementation in accordance with law, but also pay attention to the exercise of the supervision powers as granted by laws to deny
the execution of or revoke the awards of the arbitration institutions. The dealing with the arbitration with foreign elements or
foreign arbitration by the courts of our country not only concerns the rights and interests of the parties but also has great influence
to the international commercial arbitration and relates to the international fames of the courts of our country so that all courts
shall pay much attention to it. In the process of specific trial of these issues, one is that the validity of the arbitration agreement
shall be examined; where there is arbitration agreement between parties, the court shall respect the validity of the agreement and
shall not accept the action instituted by the parties; two is the recognition of the validity of the arbitration agreement involving
foreign elements shall apply correct laws and in general shall apply the laws of the country where the arbitration is agreed to occur;
and refer to international usage for recognition. Only under the circumstances that Chinese laws are specified to be applied may
the validity be recognized in accordance with article 17 and 18 of the Arbitration Law, Three is that the issues concerning the
revoke of the awards of the arbitration involving foreign elements shall be examined strictly in accordance with article 71 of the
Arbitration Law and Paragraph 1, article 260 of the Civil Procedure Law. The examination scope can’t be extended arbitrarily. The
confirmation of some issues in the arbitration procedures may look up in the materials and files of the arbitration trial. Four is
that the convention on the recognition and enforcement of foreign arbitral awards shall be strictly abided by in the dealing with
the recognition and enforcement of foreign arbitral awards as applied by the concerned parties. The deny of the validity of the arbitration
awards with foreign elements, revoke of the arbitration awards with foreign elements, denial to recognize and enforce of foreign
arbitral awards shall be approved by the Supreme People’s Court in advance in accordance with relevant provisions. The fees and examination
time limits of the recognition and enforcement of foreign arbitral awards shall subject to the Provisions on the Fees and Examination
Time Limits of the Recognition and Enforcement of Foreign Arbitral Awards issued recently by the People’s Supreme Court.

(6)

Certain Important Issues Concerning the Application of Guaranty Law

The Guaranty Law is an important law in the social and economic life in our country and has great importance to the promotion of fund
finance and commodity circulation, to the assurance of the realization of creditor’s rights and to the development of socialist market
economy. Courts at all levels met a lot of law application problems in the trial practice within these 3 years since the implementation
of the Guaranty Law. The Supreme People’s Court based on the collection of the problems met in the trial practice and summary of
the trail experience in all places, are carrying on the draft of the judicial interpretation of the Guaranty Law without delay. Because
this law involves a lot of aspects, concerns every aspects of the social and economic life and relates to the basic theories of creditor’s
right law and law relating to rights over things, there are many issues require for further research though the judicial interpretation
has requested the opinions of many. I just talk about certain issues here for discussion:

1.

Issues concerning the failure to make clear agreement on the guaranty terms. The guaranty term is an important issue of the Guaranty
law. At present, the transactions in the market mainly adopt credit guaranty and the parties do not have standardized agreement on
the guaranty term. There are serious disputes between the parties while in trial of related cases; even the adjudicatory personnel
do not share the same opinion. The main problem arises from the circumstance that the parties fails to have a clear agreement on
the guaranty term, for example, the agreement that “the guaranty liability lasts till the repayment of principal and interest” does
not have an agreed specific expiring date of the guaranty term, then should it be deemed to be half an year as in reference to the
“no agreement” as prescribed in the Guaranty Law or to be two years as in reference to the provisions of limitation of action. We
hold that: anyway this circumstance does not equal to that the parties do not have an agreement, it is only no specified date in
the agreement and it is improper to be dealt with as in accordance with the provisions of no agreement. So, it will be more proper
to be two years as in reference to the provisions of limitation of action. But what shall be specified is that this period of time
is guaranty term and has a different nature with the limitation of action and so it does not have the suspension and interruption
as does in

LAW ON THE EXCLUSIVE ECONOMIC ZONE AND THE CONTINENTAL SHELF OF THE PEOPLE’S REPUBLIC OF CHINA

Law on the Exclusive Economic Zone and the Continental Shelf of the People’s Republic of China

(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. 6 of the President of the People’s Republic of China on June 26, 1998) 

Article 1  This Law is enacted to ensure that the People’s Republic of China exercises its sovereign rights and jurisdiction
over its exclusive economic zone and its continental shelf and to safeguard its national maritime rights and interests. 

Article 2  The exclusive economic zone of the People’s Republic of China covers the area beyond and adjacent to the territorial
sea of the People’s Republic of China, extending to 200 nautical miles from the baselines from which the breadth of the territorial
sea is measured. 

The continental shelf of the People’s Republic of China comprises the sea-bed and subsoil of the submarine areas that extend beyond
its territorial sea throughout the natural prolongation of its land territory to the outer edge of the continental margin, or to
a distance of 200 nautical miles from the baselines from which the breadth of the territorial sea is measured where the outer edge
of the continental margin does not extend up to that distance. 

The People’s Republic of China shall determine the delimitation of its exclusive economic zone and continental shelf in respect of
the overlapping claims by agreement with the states with opposite or adjacent coasts, in accordance with the equitable principle
and on the basis of international law. 

Article 3  The People’s Republic of China exercises its sovereign rights over the exclusive economic zone for the purpose of
exploring, exploiting, conserving and managing the natural resources of the waters superjacent to the sea-bed and of the sea-bed
and its subsoil, and in its other activities for economic exploitation and exploration of the zone, such as production of energy
from water, currents and winds. 

The People’s Republic of China exercises jurisdiction over the establishment and use of artificial islands, installations and structures,
marine scientific research, and the protection and preservation of the marine environment in the exclusive economic zone. 

The natural resources in the exclusive economic zone referred to in this Law consist of living and non-living resources. 

Article 4  The People’s Republic of China exercises its sovereign rights over the continental shelf for the purpose of exploring
it and exploiting its natural resources.  

The People’s Republic of China exercises jurisdiction over the establishment and use of artificial islands, installations and structures,
marine scientific research, and the protection and preservation of the marine environment on the continental shelf. 

The People’s Republic of China has the exclusive right to authorize and regulate drilling on the continental shelf for all purposes. 

The natural resources of the continental shelf referred to in this Law consist of the mineral and other non-living resources of the
sea-bed and subsoil, and the living organisms that belong to sedentary species— organisms which, at the harvestable stage, either
are immobile on or under the sea-bed or are unable to move except in constant physical contact with the sea-bed or the subsoil. 

Article 5  All international organizations, foreign organizations or individuals that wish to enter the exclusive economic zone
of the People’s Republic of China for fishing shall be subject to approval of the competent authorities of the People’s Republic
of China and shall comply with its laws and regulations as well as the accords and agreements it has signed with the states concerned. 

The competent authorities of the People’s Republic of China shall have the right to take all necessary conservation and management
measures to ensure that the living resources in the exclusive economic zone are protected from the danger of over-exploitation. 

Article 6  The competent authorities of the People’s Republic of China shall have the right to conserve and manage straddling
species, highly migratory species, marine mammals, anadromous stocks that originate in the rivers of the People’s Republic of China,
and catadromous species that spend the greater part of their life cycle in the waters of the People’s Republic of China. 

The People’s Republic of China enjoys the primary interests in the  anadromous stocks that originate in its rivers. Article
7  All international organizations, foreign organizations or individuals that wish to explore the exclusive economic zone of
the People’s Republic of China or exploit the natural resources on its continental shelf or for any purpose to drill on the continental
shelf shall be subject to approval of the competent authorities of the People’s Republic of China and shall comply with the laws
and regulations of the People’s Republic of China. 

Article 8  The People’s Republic of China has the exclusive right to construct and to authorize and regulate the construction,
operation and use of the artificial islands, installations and structures in its exclusive economic zone and on its continental shelf. 

The People’s Republic of China exercises exclusive jurisdiction over the artificial islands, installations and structures in its
exclusive economic zone and on its continental shelf, including jurisdiction with regard to customs, fiscal, health and safety laws
and regulations, and laws and regulations governing entry into and exit from the territory of the People’s Republic of China. 

The competent authorities of the People’s Republic of China shall have the right to establish safety belts around the artificial
islands, installations and structures in the exclusive economic zone and on the continental shelf and may take appropriate measures
in these belts to ensure safety both of navigation and of the artificial islands, installations and structures. 

Article 9  All international organizations, foreign organizations or individuals that wish to conduct marine scientific research
in the exclusive economic zone or on the continental shelf of the People’s Republic of China shall be subject to approval of the
competent authorities of the People’s Republic of China and shall comply with the laws and regulations of the People’s Republic of
China. 

Article 10  The competent authorities of the People’s Republic of China shall have the right to take all necessary measures
to prevent, reduce and control pollution of the marine environment for the protection and preservation of the marine environment
in the exclusive economic zone and on the continental shelf. 

Article 11  All states shall, on the premise that they comply with international law and the laws and regulations of the People’s
Republic of China, enjoy the freedom of navigation in and flight over its exclusive economic zone, the freedom to lay submarine cables
and pipelines and the convenience of other lawful uses of the sea related to the freedoms mentioned above in the exclusive economic
zone and on the continental shelf of the People’s Republic of China. The routes for the submarine cables and pipelines shall be subject
to consent of the competent authorities of the People’s Republic of China. 

Article 12  The People’s Republic of China may, in the exercise of its sovereign rights to explore its exclusive economic zone
and to exploit, conserve and manage the living resources there, take such necessary measures as visit, inspection, arrest, detention
and judicial proceedings in order to ensure that the laws and regulations of the People’s Republic of China are complied with. 

The People’s Republic of China has the right to take necessary measures against violations of its laws and regulations in its exclusive
economic zone and on its continental shelf and to investigate for legal responsibility according to law, and may exercise the right
of hot pursuit. 

Article 13  The People’s Republic of China exercises, in accordance with international law and other relevant laws and regulations
of the People’s Republic of China, the rights in its exclusive economic zone and on its continental shelf that are not provided for
in this Law. 

Article 14  The provisions in this Law shall not affect the rights that the People’s Republic of China has been enjoying ever
since the days of  the past. 

Article 15  The Government of the People’s Republic of China may formulate relevant regulations on the basis of this Law. Article
16  This Law shall go into effect as of the date of promulgation.

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




CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING TRANSMITTING SUGGESTIONS SUBMITTED BY THE MINISTRY OF CIVIL AFFAIRS ON FURTHER STRENGTHENING THE MANAGEMENT OF CEMETERIES

Category  CIVIL ADMINISTRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-05-19 Effective Date  1998-05-19  


Circular of the General Office of the State Council Concerning Transmitting Suggestions Submitted by the Ministry of Civil Affairs
on Further Strengthening the Management of Cemeteries


APPENDIX: SUGGESTIONS ON FURTHER STRENGTHENING THE MANAGEMENT OF

(May 19, 1998)

    Reform in the funeral system is to carry out a social reform changing
customs and traditions as a component part in the construction
of socialist
spiritual civilization. The management of cemeteries is the important content
of the reform of the funeral system. For over 40 years since the founding of
our People’s Republic, gratifying achievements have been made in our country’s
reform of the funeral system. However, there are still some problems we cannot
ignore in the construction and management of cemeteries. For instance, some
localities approve the construction of cemeteries without planning, resulting
in the waste of land resources, the deterioration of ecological environment
and the prevalence of feudal superstition on the excuse of making funeral
arrangements; some units operating cemeteries (or pagoda cemeteries) conduct
illegal marketing activities such as pyramid sales of and speculation in
graves and cells for the storage of ashes, which have infringed on the
interests of the masses and produced some factors of insecurity. These
problems gravely affect the reform of the funeral system and the construction
of socialist material and spiritual civilization. Local people’s governments
at various levels and units concerned should make full understanding of the
importance of the construction and management of cemeteries, conscientiously
strengthen the leadership and take resolute and effective measures to
intensify the management of cemeteries and do a good job in the reform of the
funeral system.

    With the approval of the State Council, we hereby transmit to you the
Suggestions Submitted by the Ministry of Civil Affairs on Further
Strengthening the Management of Cemeteries. You are required to implement them
seriously in the light of actual situations.

APPENDIX: SUGGESTIONS ON FURTHER STRENGTHENING THE MANAGEMENT OF
CEMETERIES (Submitted by the Ministry of Civil Affairs on January 6, 1998)

    In recent years, local departments of civil affairs at various levels have
made some achievements in strengthening the management of cemeteries
(including facilities for the storage of ashes such as pagoda cemeteries, the
same below) in accordance with the Report Submitted by the Ministry of Civil
Affairs on Strengthening the Management of Cemeteries and the Provisional
Measures of the Ministry of Civil Affairs for the Management of Cemeteries,
approved and transmitted by the State Council, and have made positive
contributions to promoting the reform of the funeral system. However, there
are still some problems at present we cannot ignore in the construction and
management of cemeteries. Some departments, units or individuals, in defiance
of the provisions of the state on the management of cemeteries, approve the
construction of cemeteries without planning, resulting in the waste of land
resources and the deterioration of ecological environment, and consequently, a
large quantity of activities of feudal superstition have reappeared and
funeral arrangements become more extravagant following outmoded conventions.
Some units operating cemeteries, for the purpose of seeking illegitimate
profits, confuse cells for the storage of ashes with general commodities, use
appreciation as bait, deceive the masses into scrambling for the cells by
purchase, unscrupulously conduct illegal marketing activities of pyramid sales
and speculation, which have infringed on the interests of the masses and
produced some factors of insecurity. These problems gravely affect the reform
of the funeral system and the construction of socialist material and spiritual
civilization. In order to conscientiously implement the Regulations on the
Administration of Funeral Activities promulgated by the State Council, protect
land resources, promote the construction of material and spiritual
civilization and maintain social stability, actual and effective measures must
be taken to further strengthen the management of cemeteries. Accordingly, we
hereby offer the following suggestions.

    1. To Conscientiously Develop a Programme for Making Rectifications in the
Management of Cemeteries

    People’s governments of provinces, autonomous regions and municipalities
directly under the Central Government shall organize departments of civil
affairs, public security, land administration, industry and commerce
administration and other relevant departments in concentrating their work on
developing a programme for making rectifications in the management of
cemeteries during a period of time.

    (1) Scope of Rectification

    a. Illegal cemeteries, referring to those constructed without the approval
of departments (or bureaux) of civil affairs under provinces, autonomous
regions or municipalities directly under the Central Government, as well as
those constructed in cooperation with overseas investors by absorbing overseas
investments (including from Hong Kong, Macau and Taiwan) without the approval
of the Ministry of Civil Affairs and the State Planning Commission.

    b. Units operating cemeteries, though established with approval, building
facilities for feudal superstition in cemeteries, conducting illegal marketing
activities or putting cemeteries into operation without the acceptance
procedures upon completion of the construction projects.

    c. Non-profit-making cemeteries selling graves and cells for the storage
of ashes, engaging in marketing activities.

    (2) Measures of Rectification

    a. Illegal cemeteries constructed within the areas in which the
construction of cemeteries is prohibited by the state must be banned and the
land occupied shall be handled by departments of land administration according
to law. Local people’s governments shall, in the light of specific conditions,
work out actual and feasible measures to properly solve problems involved.

    b. With regard to illegal cemeteries constructed in barren hills or
wasteland and with a small amount of tombs, local governments shall order
units constructing these cemeteries to move tombs to legal cemeteries; if the
amount of tombs is so large that it is difficult to move them for the time
being, sale of graves shall be stopped and units constructing these cemeteries
shall plant trees to beautify the environment within a time limit and subject
themselves to supervision of the government department in charge of funeral
activities, or shall pay fees for maintaining cemeteries and fees for planting
trees and transfer cemeteries to the government department in charge of
funeral activities for management. Upon expiration of the period for use of
graves, tombs must be moved and the land be restored to its original state.

    With regard to illegal cemeteries really needed in localities and not
contravening the planning for the construction of cemeteries, units
constructing cemeteries shall go through the examination and approval
procedures and subject themselves to supervision of the government department
in charge of funeral activities.

    c. Those who build facilities for feudal superstition or conduct
activities of feudal superstition in cemeteries shall be ordered to stop
activities of feudal superstition and demolish facilities for feudal
superstition within a time limit. Anyone who disturbs the social order in
disregard of dissuasion shall be penalized in accordance with the Regulations
on Administrative Penalties for Public Security.

    d. Illegal marketing activities such as pyramid sales of and speculation
in graves and cells for the storage of ashes shall be banned resolutely by
taking some measures and shall be penalized according to relevant provisions.

    e. Non-profit-making cemeteries selling graves and cells for the storage
of ashes in violation of provisions shall be ordered to stop the marketing
activities. Sales of graves and cells for the storage of ashes shall be
treated as illegal acts of transfer.

    f. Illegal cemeteries constructed without approval after the promulgation
of the Regulations on the Administration of Funeral Activities shall be
handled in accordance with the provisions of Article 18 of these Regulations.

    2. To Further Strengthen the Management of Cemeteries and Take Tight
Control of the Development of Cemeteries

    (1) To take tight control of the development of cemeteries. Departments of
civil affairs in provinces, autonomous regions and municipalities directly
under the Central Government shall, in accordance with the provisions of the
Regulations on the Administration of Funeral Activities and in the light of
actual situations, work out the planning for the construction of cemeteries as
soon as possible and, upon examination and approval of the people’s government
at the corresponding level, submit it to the Ministry of Civil Affairs for the
record. Construction of new cemeteries shall be suspended before acceptance of
the record by the Ministry of Civil Affairs. Efforts shall be made to
introduce the modes of handling ashes such as ashes storage, planting trees
with ashes and ashes scattering, in which no land or less land will be
occupied. The construction of facilities for the storage of ashes shall be
planned rationally in the light of the population and its distribution in a
locality. In areas having not the conditions to practise cremation, cemeteries
for remains must be planned in a scientific manner by selecting sites of
cemeteries in barren hills and wasteland, banning the occupation of cultivated
land and forest land and advocating deep burials without grave mounds left.
Restrictions shall be placed on the development of cemeteries in areas
practising cremation because cemeteries there shall be deemed as a way of
transition to handle ashes at the present stage and not the aim of our reform
in the funeral system. Departments of civil affairs in all localities must
comply with the provisions of the Regulations on the Administration of Funeral
Activities and the planning for the construction of cemeteries and shall be
stricter from now on in examining and approving the construction of cemeteries.

    (2) To place strict restrictions on the land areas and periods for use of
graves. From now on, any tomb for burying ashes of one or two persons shall
not cover an area of above one square metre; any tomb for burying remains of a
single person not above four square metres and any tomb for burying remains of
two persons not above six square metres. From now on, 20 years shall not be
exceeded in principle as the period for use of graves and cells for the
storage of ashes.

    (3) To conscientiously strengthen the internal management of units
operating cemeteries. Attention shall be paid to plant trees and beautify
cemeteries, advocate small-size and diversified gravestones and give more
cultural and artistic flavours. Units operating cemeteries shall strengthen
the collection and administration of fees for maintenance of cemeteries and
fees for planting trees in cemeteries, set up a special account, use the fees
for specified purposes and subject themselves to supervision of the department
of civil affairs at the next higher level. Within cemeteries constructing
facilities for feudal superstition and engaging in activities of feudal
superstition shall be strictly prohibited. Constructing cemeteries for
clansmen and cemeteries for persons alive shall be strictly prohibited.

    (4) In principle all units operating cemeteries shall not establish
trans-provincial sales agencies. If it is necessary to establish such agencies
due to special circumstances, approval shall be obtained from departments of
civil affairs at the provincial level in two places where the unit operating a
cemetery is located and where the sales agency is to be located. The
department for administration of industry and commerce shall handle the
registration procedure according to relevant provisions and documents of
approval from departments of civil affairs at the provincial levels in two
places.

    (5) Pyramid sales of and speculation in graves and cells for the storage
of ashes shall be strictly prohibited. Prices of graves and cells for the
storage of ashes shall be fixed reasonably and marked clearly. For supply or
sale of graves and cells for the storage of ashes, subscribers shall be
required to present the certification of cremation (in areas practising
cremation) or the certification of death (in reformed areas practising burials
in the ground) and measures shall be taken, such as using standardized burial
and arrangement certificates and establishing a strict system for sales and
registration, in order to prohibit pyramid sales and speculation and protect
the legitimate interests of the masses.

    (6) Departments of civil affairs in provinces, autonomous regions and
municipalities directly under the Central Government shall strengthen the
management of cemeteries within their respective administrative regions. An
annual inspection system for cemeteries shall be established and perfected, by
which annual inspections of cemeteries (including ones constructed in
cooperation with overseas investors) shall be conducted seriously in
conjunction with other relevant departments. Cemeteries having passed annual
inspections may be allowed to continue their business, and those who fail in
annual inspections shall be ordered to make corrections within a fixed time
limit and, if they refuse to do so within the time limit, shall be ordered
jointly by other relevant departments to suspend the business for
rectifications. The results of annual inspections shall be made public for
supervision.

    3. Local People’s Governments at All Levels Should Strengthen Leadership
and Relevant Departments Should Support and Closely Cooperate with Each Other.

    Local people’s governments at all levels and all relevant departments
should proceed from the considerations of the whole country’s interests,
deepen their understanding of the significance of strengthening the management
of cemeteries, conscientiously strengthen leadership and place the
rectifications programme in cemeteries on the top of their agenda. The
rectifications programme involves a wide range of subjects and is difficult to
develop. Therefore, people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government should, in the light of
actual situations of localities and in accordance with the Regulations on the
Administration of Funeral Activities and other relevant provisions, work out
detailed measures for the rectifications programme in cemeteries and should
coordinate their actions well and take actual and effective steps of
implementation. Meanwhile, attention should be paid to publicity and education
in order to gain the understanding and support from the broad masses of the
people, develop the rectifications programme vigorously and steadily, really
remove obstacles and resolve problems in the work and ensure the smooth
progress in rectifications. Departments of civil affairs at all levels should
play their roles as competent authorities, perform their functions in real
earnest, report problems emerging in the rectifications in time to the local
people’s government, offer suggestions for resolving these problems and act
as capable advisers and assistants. Considerations shall be given to
departments of civil affairs at the grass-roots level and agencies for the
administration of funeral activities by bringing into full plan their roles to
promote the smooth progress in rectifications. Departments for public
security, industry and commerce administration and land administration and
other relevant departments should firmly support and closely cooperate with
each other and, under the unified leadership of the local government, develop
the programme for rectifications in cemeteries. People’s governments at the
grass-roots level or relevant departments that have approved the construction
of cemeteries beyond their respective terms of reference should take vigorous
actions to assist departments of civil affairs in making rectifications in
cemeteries to which they granted approval.

    Departments (or bureaux) of civil affairs in provinces, autonomous regions
and municipalities directly under the Central Government should report in time
the progress in making rectifications in cemeteries to local people’s
governments and the Ministry of Civil Affairs.






REGULATIONS ON THE PROTECTION OF POWER FACILITIES

Regulations on the Protection of Power Facilities

     (Promulgated by the State Council on September 15, 1987 and revised according to the January 7, 1998 decision on Power Facility Protection
Regulations)

CHAPTER ONE GENERAL PROVISIONS

CHAPTER TWO SCOPE OF POWER FACILITIES AND PROTECTION ZONES TO BE

PROTECTED

CHAPTER THREE PROTECTIONS TO POWER FACILITIES

CHAPTER FOUR MOVES TO REMOVE OF HAMPERINGS BETWEEN POWER FACILITIES

AND OTHER FACILITIES

CHAPTER FIVE REWARDS AND PUNISHMENTS

CHAPTER SIX SUPPLEMENTARY PROVISIONS

   Article 1 This set of regulations is formulated with a view to ensuring the smooth-going of power production and construction and a sure protection
to public security.

   Article 2 The regulations are eligible to be applied to all power facilities including power generating equipment, power transforming equipment
and power transmission lines and their related ancillary equipment (the same below).

   Article 3 Power facilities shall be protected by concerted efforts of power administrative departments, public security organs, power enterprises
and the common people.

   Article 4 Power facilities are protected by law from any harm brought about by units or individuals whatsoever. Any unit or individual is obliged
to protect power facilities and has the right to stop or report to power administrative departments or public security organs acts
that threaten or sabotage power facilities.

Power enterprises should strengthen the protection of power facilities. Proper measures should be adopted to stop acts that jeopardize
power facilities.

   Article 5 The power administrative department under the State Council shall exercise supervision, examination, guidance and coordination with
regard to the protection of power facilities.

   Article 6 The functions and responsibilities of protecting power facilities exercised by power administrative departments at and above the
county level are:

1. To supervise and examine the implementation of this set of regulations and detailed rules formulated in compliance with this set
of regulations.

2. To publicize and promote works of power facilities protection.

3. To set up power line protection organizations in cooperation with related departments and units along the power transmission lines
and improve the responsibility system for the protection.

4. To be responsible for the safety and protection of the power facilities within their jurisdiction areas in cooperation with local
public security departments.

   Article 7 Public security organs at all levels are responsible for uncovering and punishing acts and cases that sabotage power facilities or
mob-rob or steal power facilities and supplies.

CHAPTER TWO SCOPE OF POWER FACILITIES AND PROTECTION ZONES TO BE

   Article 8 Protection should be effected to the following power facilities and power transforming equipment:

1. Facilities inside power plants, power transformation stations, current exchange stations and switching stations.

2. All kinds of special pipes and conduits (ditches), ash storage sites, wells, pumping stations, water cooling towers, oil depots,
dikes and dams, railways, roads, bridges, docks, fuel loading and unloading equipment, lightening arresters, fire-fighting equipment
and other related ancillary equipment outside power plants and power transformation stations.

3. Reservoirs, dams, water inlet, water diversion tunnels (including branch tunnels, water diversion canals, voltage adjustment wells
(towers), open-air high-voltage conduits, premises, water discharge canals, communications facilities between premises and dams and
other related ancillary equipment used by hydropower stations.

   Article 9 Scope of power transmission lines and facilities to be protected:

1. Overhead power lines: poles and towers, basements, wires, gounding devices, conducting wires, lightening arresting wires, metal
tools, insulators, pole or tower climbing ladders and foot-grapnels, cross- navigation channel wire protection facilities, line patrol
(protection) stations, patrol and overhaul special roads, ships and bridges, marks and other related ancillary equipment.

2. Power cable lines: overhead, underground and underwater power cables and cable connection devices, cable conduits, cable tunnels,
cable ditches, cable bridges, cable wells, lids, man-holes, stone mark, water mark plates and other related ancillary equipment.

3. Transformers, capacitors, resistors, circuit breakers, isolation switches, lightening arresters, mutual inductors, fuses, measuring
instruments and meters, power distribution rooms, box-type sub-stations and other related ancillary equipment on the power lines.

4. Power dispatch facilities: power dispatching stations, power dispatch communications facilities, power grid dispatch automatic
devices and power grid operation control facilities.

   Article 10 Power line protection zones:

1. Overhead power line protection zones: zones within the two plane areas fromed by the horizontal extension line from the outside
conductor lines and the line vertical to the ground. In usual circumstances, the outer extension distances for all voltage conducting
lines are:

5 meters for 1 – 10 kv 10 meters for 35 – 110 kv 15 meters for 154 – 330 kv 20 meters for 500 kv

In densely populated mining and urban areas, the protection zones for overhead power line may be smaller than what is prescribed above.
But the outer extension distances for all voltage conducting lines should not be smaller than the total distance between the horizontal
distance after the maximum circular sag and maximum windage yaw are computed and the safe distance from buildings, deducting windage
yaw.

2. Power cable route protection zone: the areas between two parallel lines formed by 0.75 meters on both sides of the ground mark
of underground cable route; for sea-bottom cables, the zones should be the water surface between the two parallel lines formed by
two nautical miles on both sides of the line (100 on both sides of the line in port) and no less than 100 meters on both sides of
the line in rivers (not less than 50 meters for mid-sized and small rivers).

CHAPTER THREE PROTECTIONS TO POWER FACILITIES

   Article 11 Power administrative departments at and above the county level shall take following measures to protect power facilities:

1. To put up marks on the boundaries of overhead power line protection zones, specifying the width of the protection zone and the
rules for protection.

2. To put up marks in major roads or navigation sections where power lines cross, specifying the safe distance between the conducting
wires and the objects to cross.

3. To put up permanent marks for underground cables after their completion and notify related departments in writing of the position
of the underground cables.

4. To put up permanent marks for under-water cables after their completion and notify related departments in writing of the positions
of the under-water cables.

   Article 12 Any unit or individual should ensure the safety of power facilities according to related regulations by the State when conducting
explosion operations around power facilities.

   Article 13 No unit or individual is allowed to commit the following acts that would endanger power facilities and power transformation facilities:

1. To gate-crash into power plants or power transformation stations to disrupt production and work order, move or damage marks.

2. To threaten the safe operation of water, oil and heat supply and ash discharge pipelines (ditches).

3. To hamper the use of special feeder railways, roads, bridges and docks.

4. To enter into areas 300 meters from the hydraulic structures in reservoirs used for power generation to engage in fishing by using
explosives, fish nets, swimming, boating or other acts that would threaten the safety of hydraulic structures.

5. Other acts that would endanger power and power transformation facilities.

   Article 14 No unit or individual is allowed to engage in the following acts that would endanger power transmission lines and facilities:

1. To shoot at power lines and related facilities.

2. To throw objects at conducting lines.

3. To fly kite(s) in areas 300 meters from power lines on both sides.

4. To connect electric equipment to conducting wires without authorization.

5. To climb, without authorization, electric poles or towers to lay wires, communications lines, broadcasting lines or install loudspeakers.

6. To use electric poles or towers as anchoring point for lifting or tracting objects.

7. To tie animals, hang up objects or wind crops to electric poles, towers and bracing wires.

8. To fetch soil and do pole stamping, drilling or digging or dump acids, alkaline, salt and other harmful chemicals within the prescribed
scope covered by the base of electric poles or towers and bracing wires.

9. To build roads within the electric line towers (not including areas between poles or towers) or in between electric poles or towers
and bracing wires.

10. To remove devices or supplies from electric poles or towers or bracing wires, remove or damage permanent marks or marking plates.

11. Other acts that would endanger electric line facilities.

   Article 15 Any unit or individual should observe the following rules in the overhead power line protection zones:

1. It is not allowed to pile up crops, grass, garbage, slags, inflammables, explosion-prone objects and other objects that would
affect safe power supply.

2. It is not allowed to operate kilns or slash and burn for growing crops.

3. It is not allowed to put up buildings or structures.

4. It is not allowed to grow plants that would endanger the safety of power facilities.

   Article 16 Any unit or individual should observe the following rules within the power cable line protection zones:

1. It is not allowed to pile up garbage, slages, inflammables, explosion-prone objects, dump acids, soda, salt or other harmful chemicals,
or put up buildings or structures or plant trees or bamboo.

2. It is not allowed to lay in anchor or drag anchor within the sea- bottom cable protection zones.

3. It is not allowed to lay in anchor or drag anchor, catch fish by using explosives or dig sand in river cable protection zones.

   Article 17 Any unit or individual should get the approval of power administrative departments at and above the county level and take safety
measures before carrying out the following operations or activities:

1. To engage in farmland water conservancy capital construction projects or such operations as stamping, drilling and digging.

2. To conduct engineering by putting any part of lifting machinery into the overhead power line protection zones.

3. To go through the power line protection zone at a distance smaller than the safety distance between conducting wires and the objects
to run through.

4. To operate within the power cable line protection zones.

   Article 18 No unit or individual is allowed to conduct the following acts that would endanger the construction of power facilities:

1. To occupy illegally the land requisitioned for the building of power facilities.

2. To alter, remove, damage or pull out measuring poles or marks used by power facility projects.

3. To sabotage or block roads for construction, cut off water sources or power sources used by power facility projects.

   Article 19 No unit or individual is allowed to purchase power facilities and supplies without approval according to the relevant regulations
of the State.

CHAPTER FOUR MOVES TO REMOVE OF HAMPERINGS BETWEEN POWER FACILITIES AND

   Article 20 In construction and protection of power facilities, considerations should be made to avoid or reduce as far as possible losses that
would be brought up to the State, collectives and individuals.

   Article 21 New overhead power line should not be put acrossing areas where there are warehouses holding inflammables or explosion-prone objects.
In usual circumstances, they should not be put across houses and, whereas the houses have to be crossed in special circumstances,
power construction enterprises should adopt safety measures and reach agreement with related units beforehand.

   Article 22 Whereas the presence of hamperings between newly built, rebuilt or expanding public utilities, urban greening area and other projects
that would obstruct existing, newly built, rebuilding or expanding power facilities, related units of the two sides should consult
with one another according to the provisions of this set of regulations and related rules of the State and reach agreements concerning
removal or necessary protective measures, necessary compensations and other matters before engineering can be started.

   Article 23 Power administrative departments shall notify urban construction planning departments of the plan for building, rebuilding or expanding
powe projects approved by the authorities and have the protection zones demarcated.

Urban construction planning departments shall incorporate the plan for building, rebuilding or expanding power facilities into their
urban construction plans.

   Article 24 Whereas the building, rebuilding or expansion of power facility projects should damage farm crops, fell trees, bamboo or require
the removal of buildings or other structures, the power construction enterprises shall give a lump-sum compensation according to
the prescribed provisions by the State.

Power enterprises should trim or cut planted or natural trees or bamboo in the legally demarcated power facility protection zones
that would endanger the safety of power facilities.

CHAPTER FIVE REWARDS AND PUNISHMENTS

   Article 25 A unit or individual should be commended or given a lump-sum reward for one of the following acts:

1. To report or expose acts that sabotage power facilities or mob-rob or steal power facilities.

2. To struggle against acts that sabotage power facilities or against mob-rob or stealing of power facilities and effectively check
the incidents.

3. To perform outstanding deeds in fighting against natural disasters for the protection of power facilities.

4. To perform outstandingly in protecting the safety of power facilities.

   Article 26 For carrying out explosion or other operations around power facilities or within the legally damarcated power facility protection
zones without approval or without adopting safety measures thus endangering the safety of power facilities in violation of the provisions
of this set of regulations, power administrative departments shall order the operators to stop operation, restore to the normal state
and compensate for the losses.

   Article 27 For cases that would endanger power plant equipment, power transformation facilities and power transmission lines in violation of
the provision of this set of regulations, the power administrative departments shall order the violators to correct. Failure to correct
shall be fined for less than RMB10,000.

   Article 28 For cases of opening kilns, burning wasteland for growing crops, lay anchor, drag anchor, fishing by using explosives or dig sand
in the legally demarcated power facility protection zone thus endangering the safety of power facilities in violation of the provisions
of this set of regulations, the power administrative departments shall order the violators to stop operation, restore to the original
and compensate for the losses.

   Article 29 For cases that have violated the provisions of this set of regulations and would endanger the construction of power facilities, the
power administration departments shall order the violators to correct, restore to the original and compensate for the losses.

   Article 30 If a unit or an individual has violated the provisions of this set of regulations and constituted an act that violate the public
security regulations, the public security organ shall punish the case according to the Regulations of the People’s Republic of China
on the Administration and Punishment Concerning Public Security Cases. If a case is serious enough to constitute a crime, the law-enforcement
organ shall fix criminal responsibilities.

CHAPTER SIX SUPPLEMENTARY PROVISIONS

   Article 31 Power administrative department under the State Council may work out datailed rules for the implementation of this set of regulations
in cooperation with related departments of the State Council.

   Article 32 This set of regulations shall be implemented starting from the date of promulgation.

    

Source:MOFTEC






CIRCULAR OF THE MOFTEC AND THE GENERAL ADMINISTRATION OF CUSTOMS ON RELEVANT ISSUES IN IMPORTED EQUIPMENT FOR PROCESSING TRADE

The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs

Circular of the MOFTEC and the General Administration of Customs on Relevant Issues in Imported Equipment for Processing Trade

WaiJingMaoZhengFa [1998] No.383

March 16, 1998

The commissions (departments and bureaus) of foreign trade and economic cooperation of various provinces, autunomous regions, municipalities
under the Central Government and municipalities separately listed on the State plan, Shenzhen Municipal Bureau for Economic Development,
Guangdong Sub-Administration of the General Administration of Customs, customs directly under the General Administration of Customs,
various foreign trade centres and companies directly under the ministries and commissions:

In accordance with the regulations laid down in the Circular of the State Council on Adjusting Taxation Policy on Imported Equipment
(GuoFa [1997] No.37), for “those imported equipment without setting price provided by foreign businessmen for processing trade”,
“except for commodities enlisted in the List of Commodities Imported for Projects with Foreign Investment that Are Not to Be Exempted
from Taxes, no customs duties and import value-added tax shall be levied”. “The processing trade units importing non-price setting
equipment provided by foreign businessmen shall go through the procedures at the customs for import tax exemption according to the
approved contract for processing trade. The customs will check and ratify it, according to those procedures, against the list of
commodities not to be exempted from taxes”. To carry out the above mentioned taxation adjusting policy on imported equipment for
processing trade, the relevant issues are hereby notified as follows:

1.

Non-price setting imported equipment provided by foreign businessmen for processing trade, refers to equipment needed in processing
production, which is provided free of charge by foreign businessmen engaged in processing trade (including processing with provided
materials, processing with imported materials and pro cessing trade by foreign invested enterprises, same below) with the operating
units of processing trade; the operating units need neither payment in foreign exchange for imports, nor payment in the form of processing
fees of price difference.

2.

Imports exempted from taxes and use of non-price setting equipment provided by foreign businessmen must conform to one of the following
conditions:

1)

Having independent factories or workshops exclusively for processing trade (I, e, not producing products processed for home sale)
and that the non-price setting equipment shall be used only within the factories or workshops;

2)

For those processing trade enterprises which have no such factories or workshops and engage in processing trade based on their existing
production capacity and use of non-price setting equipment for processing production, in the terms of their processing trade contract
(agreement), over 70% of their yearly produced processing products must be exported.

3.

For import of non-price setting equipment by the operating units, they should list, in their processing trade contracts (agreements),
provisions of importing non-price setting equipment (I.e, listing that the equipment shall be provided free of charge by foreign
businessmen, without payment by the processing trade operating units for its import in foreign exchange, without payment of processing
fees or price difference), and that an attached Application Form for Filing of Non- Price Setting Equipment for Processing Trade
shall be provided.

4.

The departments of foreign trade and economic cooperation should work according to their administrative power at different levels
for examination and approval and relevant regulations. In examining and approving processing trade contracts (agreements), they shall
check the applications for import of non-price setting equipment against the List of Commodities Imported for Projects with Foreign
Investment that Are Not to Be Exempted from Taxes, and complete procedures for approving such import. In their checking and approving
of imported equipment without setting price, the following contents shall be examined:

1)

Whether or not the applicant conforms to the conditions for tax-free import and the use of non-price setting equipment;

2)

Whether or not the provisions of import of non-price setting equipment stipulated in the processing trade contracts (agreements) conform
to the regulations.

5.

The Customs where the processing trade contracts (agreements) are put on file shall be responsible for the checking, approving and
handling of the procedures for tax-free import of equipment without setting price.

1)

The operating units shall go to the customs for handling tax-free import procedures in accordance with the Approved processing trade
contracts (agreements) and the Application Form for Filing of Non-Price Setting Equipment for Processing Trade;

2)

The customs, after checking and approving the application according to the processing trade contracts (agreements) and the Application
Form for Filing of Non-Price Setting Equipment for Processing Trade approved by the departments of foreign trade and economic cooperation,
and other relevant documents and checking it against the List of Commodities Imported for Projects with Foreign Investment that Are
Not to Be Exempted from Taxes, puts it on file and issues out registration handbooks (with fake-proof label);

3)

The operating units go through declaration procedures at the customs at the ports according to their Registration Handbooks, and the
customs at ports checks and accepts such procedures according to the Registration Handbooks.

6.

For temporary imports (shorter than half a year) of non-price setting equipment needed in processing trade production (confined to
modeling tools and single set of equipment), the customs shall handle them as temporary import goods, and taxes shall be levied for
over-term imports.

7.

The above mentioned tax-free imported non-price setting equipment shall be regarded as goods under the customs’ supervision and control
from the date of import to the date of export back on the condition that the supervision and control are terminated according to
the regulations by the Customs. Within the term of supervision and control which runs for five years, the goods shall not be sold,
exchanged, transferred, mortgaged or used for other purposes in the mainland.

When the tax-free non-price setting equipment is under the period of supervision and control, the operating units of processing trade
shall have to report in writing in January each year about its use respectively to the departments of foreign trade and economic
cooperation and to the customs. The customs shall check it regularly.

In case the operating units of processing trade terminate or cancel their processing trade contracts for one reason or another, they
may transport back their non-price setting equipment or pay customs duties and import value-added tax according to its value after
deducting depreciation funds for the years it has been used, after its application is approved by the original departments of foreign
trade and economic cooperation and checked by the customs.

8.

In case of transporting back tax-free non-price setting equipment for processing trade, or paying overdue customs duties and import
valueadded tax for the equipment, or the term of supervision and control being overdue, the operating units shall have to go through
in time the procedures for terminating the supervision and control, for which they shall have to submit a written application to
the customs for terminating the supervision and control and the Registration Handbooks for the equipment and other relevant documents.
The supervision and control shall be terminated after being checked and ratified by the customs, and a certificate for the termination
of supervision and control shall be issued out.

9.

In case the imported non-price setting equipment belongs to the category of commodities listed in the Import Commodities for Projects
with Foreign Investment not to Be Exempted from Taxes, the customs shall, according to the rules and regulations of the State, levy
customs duties and import value-added tax on it.

10.

Those operating units violating provisions of Article 2 , 3 and 7 of this circular, or getting tax-free by cheating, evading and dodging
taxes in the name of non-price setting equipment for processing trade, the departments of foreign trade and economic cooperation
shall stop approving their new processing trade contracts (agreements), and the customs shall levy on them full overdue customs duties
and import value- added tax. And they shall be treated seriously in accordance with the Customs Law of the People’s Republic of China,
Detailed Rules for the Implementation of Administrative Penalties of the Customs Law of the People’s Republic of China and other
relevant laws and regulations. Those operating units violating the laws, shall be transferred to the judicial departments to find
out, according to the laws, their criminal responsibilities.

11.

In case the non-price setting equipment involves import quotas products, special or registered products, procedures for quotas, licenses,
registrations or import certificates shall be exempted. Within the supervision and control term (five years), should the supervision
and control be terminated ahead of time and the equipment not to be transported outside the land, supplimentary documents shall be
required according to the laws.

12.

The departments of foreign trade and economic cooperation at different levels and the customs should strengthen cooperation in their
work, reduce the intermediate links and simplify procedures, be strict on examination and approval, and strengthen supervision. They
should adopt workable measures to implement this important adjusting policy of the State Council with effective results.

13.

For those non-price setting equipment which had been imported with customs duties and had been given customs permit with letters of
gurantee prior to January 1, 1998, procedures shall be notified separately.

For questions that might arise in execution, please contact the Ministry of Foreign Trade and Economic Cooperation and the General
Administration of Customs.



 
The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs
1998-03-16

 







MEASURES FOR EXAMINATION AND APPROVAL OF ACCOUNTING FIRMS WITH LIMITED LIABILITY

The Ministry of Finance

Circular of the Ministry of Finance on Printing and Distributing Measures for Examination and Approval of Accounting Firms with Limited
Liability

CaiKuaiXieZi [1998] No.55

July 3,1998

Finance departments (bureaus) of various provinces, autonomous regions, municipalities directly under the Central Government:

Measures for Examination and Approval of Accounting Firms with Limited Liability is hereby delievred to you, please abide by and carry
out accordingly.

Measures for Examination and Approval of Accounting Firms with Limited Liability

Article 1

These Measures are formulated in accordance with the provisions of the Law of the People’s Republic of China on Certified Public Accountants
and other relevant laws and regulations.

Article 2

An accounting firm with limited liability (hereinafter referred to as a firm) is a social intermediary organization in which certified
public accountants contribute capital to initiate its establishment, undertake certified public accountancy and assume limited liability.

Article 3

Establishment of a firm shall be approved by the Ministry of Finance or the finance department (bureau) of the province, autonomous
region or municipality directly under the Central Government.

Article 4

A firm shall assume liability for its debts to the extent of all its assets.

Contributors of a firm shall assume liability to the extent of their respective capital contributions.

Article 5

The following conditions shall be met for the establishment of a firm:

(1)

having more than five promoters who conform to the requirements provided in Article 6 of these Measures;

(2)

having more than 10 full-time practitioners of an age within the age limit for the profession prescribed by the State, including more
than five certified public accountants registered in China;

(3)

having a registered capital of more than RMB300,000 yuan;

(4)

having fixed office premises; and

(5)

other conditions provided by the examining and approving authority.

The finance department (bureau) of the province, autonomous region or municipality directly under the Central Government may, depending
on the specific circumstances of their respective areas, formulate specific provisions on the number of practitioners and certified
public accountants and the amount of registered capital which shall not below those conditions provided in Item 2 and 3 in the preceding
paragraph.

Article 6

A promoter who applies to establish a firm shall meet the following conditions:

(1)

having obtained a certificate of a Chinese certified public accountant, and having more than three years’ experience in conducting
independent audit work in a firm and having a sound professional ethics record;

(2)

being a contributor to the firm;

(3)

not working in other units for obtaining labor remuneration such as wages;

(4)

being of an age within the age limit for the profession prescribed by the State; and

(5)

other conditions provided by the examining and approving authority.

Article 7

A contributor who applies to establish a firm shall meet the following conditions:

(1)

having obtained a certificate of a Chinese certified public accountant;

(2)

practicing business in the firm and not working in other units for obtaining labor remuneration such as wages; and

(3)

other conditions provided by the examining and approving authority.

Article 8

A firm effectuates a chief accountant accountability system, and the chief accountant is the legal representative of a firm.

A promoter shall serve as the chief accountant, and the relevant procedures for recommendation and election and specific requirements
shall be provided by the articles of association of the firm.

Article 9

The name of a firm shall not be preceded by such name as industry or department which can easily cause misunderstanding, nor shall
China or merely the post_title of an area be used as the name of a firm.

Article 10

To establish a firm, a promoter shall submit an application report to the institutes or associations of certified public accountants
of the province, autonomous region or municipality directly under the Central Government where the firm is located, and shall have
the following materials attached thereto:

(1)

articles of association(draft) of the firm;

(2)

promoters’ resume, originals and photocopies of the certified public accountants’ certificates, originals and photocopies of the ID
cards and a work appraisal report issued by their original firms;

(3)

contributors’ resume, originals and photocopies of the certified public accountants’ certificates, originals and photocopies of the
ID cards and a work appraisal report issued by their original firms;

(4)

contributors’ agreement;

(5)

materials relating to the person proposed to serve as the chief accountant;

(6)

certification of capital contribution;

(7)

other certified public accountants’ originals and photocopies of the ID cards, originals and photocopies of the certified public accountants’
certificates and a work appraisal report issued by their original firms;

(8)

other practitioners’ basic information and the photocopies of their ID cards;

(9)

the firm’s internal management system (draft);

(10)

a valid certification of property right of the office premises or the right to use it; and

(11)

other materials required by the examining and approving authority.

The articles of association (draft)of a firm and contributors’ agreement shall be notarized.

Article 11

The articles of association of a firm (draft) shall clearly specify the following matters:

(1)

name and address of the firm;

(2)

scope of business operations;

(3)

registered capital;

(4)

name of the promoters and contributors;

(5)

rights and obligations of contributors;

(6)

forms, time and amount of contributions made by the contributors;

(7)

conditions and methods for an contributor to change his contributions;

(8)

the legal representative;

(9)

measures for the establishment and creation of its internal organizations, its functions and powers and deliberation rules;

(10)

measures of the firm’s dissolution and liquidation; and

(11)

other matters necessary to be stipulated.

Article 12

The contributors’ agreement shall clearly specify the following matters:

(1)

rights of contributors;

(2)

liability which shall be assumed by contributors;

(3)

forms, time and amount of contributions;

(4)

conditions and methods to change contributions; and

(5)

other matters which are required by the examining and approving authority or contributors deem necessary to be clearly specified.

Article 13

The firm’s internal management system (draft) shall include the following systems:

(1)

a personnel management system;

(2)

a financial management system;

(3)

a quality control system of practicing business;

(4)

a business records management system; and

(5)

other management systems which are required by the examining and approving authority or the firm deems necessary to be worked out.

Article 14

The examination and approval of a firm shall be handled in accordance with the following procedures:

(1)

Contributors submit an application report and relevant materials to the institutes of certified public accountants of the province,
autonomous region or municipality directly under the Central Government.

(2)

The institutes of certified public accountants of the province, autonomous region or municipality directly under the Central Government
shall, within 30 days of receipt of the application report, complete its examination, put forward its opinions of approval or disapproval
and make a report to the head of the finance department (bureau) of the province, autonomous region or municipality directly under
the Central Government, and the head of the finance department (bureau) of the province, autonomous region or municipality directly
under the Central Government shall make a decision of approval or disapproval. The applicant shall be notified within 15 days after
the decision of approval or disapproval is made.

(3)

A firm approved by the finance department (bureau) of the province, autonomous region or municipality directly under the Central Government
shall be sent to the Chinese Institute of Certified Public Accountants for reporting to the Ministry of Finance for the record. Where
the Chinese Institute of Certified Public Accountants in its review finds that the examination and approval are improper, it shall
make a report to the Minister-in-charge of the Ministry of Finance within 30 days of receipt of the report for the record, and the
Minister-in-charge of the Ministry of Finance shall decide whether it is necessary to notify the original examining and approving
authority to carry out re-examination.

Article 15

An approved firm shall, within 20 days of receipt of the approval document, obtain an Accounting Firm Practicing Business License
uniformly printed by the Ministry of Finance from the local institute of certified public accountants of the province, autonomous
region or municipality directly under the Central Government and undergo relevant registration formalities in accordance with provisions.

Article 16

A firm shall conduct independent accounting, pay taxes according to law and implement the financial accounting systems for accounting
firms with limited liability formulated by the Ministry of Finance.

Article 17

“More than” or “:within” referred to in these Measures all includes the given figure.

Article 18

These Measures shall enter into force as of the date of promulgation. The Interim Measures on Establishing, Examining and Approving
Accounting Firms with Limited Liability promulgated y the Ministry of Finance on December 31, 1993 (Caikuaixiezi [93] No. 121) shall
be nullified simultaneously.



 
The Ministry of Finance
1998-07-03

 







FIRE PROTECTION LAW

Fire Protection Law of the People’s Republic of China






(Adopted at the 2nd Meeting of the Standing Committee of the Ninth National People’s Congress on April 29, 1998 and
promulgated by Order No. 4 of the President of the People’s Republic of China on April 29, 1998) 

Contents 

Chapter I    General Provisions 

Chapter II   Fire Prevention 

Chapter III  Fire Protection Organizations 

Chapter IV   Fire Fighting and Rescuing 

Chapter V    Legal Responsibility 

Chapter VI   Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted for the purpose of preventing fire and reducing harm caused by fire hazards, safeguarding citizens’
personal safety, the security of public and citizens’ property, maintaining public security and ensuring the smooth progress of the
socialist modernization drive. 

Article 2  In fire protection, the guideline of putting prevention first and combining prevention with fire fighting shall be
applied, the principle of coordinating the efforts of special organs with those of the masses shall be adhered to and the responsibility
system for security against fire shall be practised. 

Article 3  The State Council shall exercise leadership over the work of fire protection and the local people’s governments at
all levels shall be responsible for it. The people’s governments at all levels shall incorporate the work of fire protection into
their plans of national economic and social development to ensure that the work of fire protection is suited to economic and social
development. 

Article 4  The public security department under the State Council shall supervise and administer the work of fire protection
throughout the country; the public security organs of the local people’s governments at or above the county level shall supervise
and administer the work of fire protection within their own administrative regions, and the departments for fire protection of the
public security organs under these people’s governments shall be responsible for exercising such supervision and administration.
The work of fire protection for military installations, for the underground areas of mines and for nuclear power plants shall be
supervised and administered by the units in charge of them. 

Where there are provisions governing the work of fire protection for forests and grasslands in other laws or administrative rules
and regulations, those provisions shall be followed. 

Article 5  All units and individuals shall have the duty of maintaining security against fire, preserving fire protection facilities,
preventing the occurrence of fire and giving an alarm of fire once it occurs. All units and adult citizens shall have the duty of
helping to put out a fire in an organized manner. 

Article 6  The people’s governments at all levels shall constantly disseminate among citizens knowledge about fire protection
so as to enhance their awareness of the importance of fire protection. 

The administrative departments for education, labor, etc. shall incorporate knowledge about fire protection into their teaching and
training programs. 

The competent departments for the press, publishing, broadcasting, film and, television and the other departments concerned shall
have the duty of disseminating knowledge about the importance of security against fire. 

Article 7  Units or individuals that have made outstanding contributions to or have accomplished notable achievements in the
work of fire protection shall be rewarded. 

Chapter II 

Fire Prevention 

Article 8  The people’s governments of cities shall incorporate into their overall urban planning the plans for fire protection,
which include the location of fire-fighting facilities, fire stations, water supply for fire fighting, fire service communications,
passageways for fire engines and fire-fighting equipment, and shall be responsible for mobilizing the competent departments concerned
to carry them out. Where public fire protection facilities or fire-fighting equipment are inadequate or cannot meet practical needs,
the said governments shall see to it that these are increased, rebuilt, installed or upgraded. 

Scientific research in fire protection shall be enhanced, and the use of advanced technology and equipment for fire protection shall
be encouraged. 

Article 9  Factories that produce such hazardous substances as combustibles and explosives, warehouses that store them and the
stations and wharves that are used specially for loading and unloading them shall be built on the outskirts of cities or in relatively
separate, safe areas. Fueling, supplying and voltage regulating stations for combustible or explosive gases or liquids shall be built
in proper locations in conformity with the requirements for preventing fire and explosion. 

Where factories that produce such hazardous substances as combustibles and explosives, warehouses that store them, stations and wharves
that are used specially for loading and unloading them, or fueling, supplying and voltage regulating stations for combustible or
explosive gases or liquids were built at variance with the provisions in the preceding paragraph, the relevant units shall take measures
to have the problem solved within a time limit. 

Article 10  Where a construction project needs to be designed for fire protection in accordance with the national standards
of construction technology for such a project, the designer shall do the designing in conformity with the said standards, and the
construction unit shall submit for examination the blueprint of the design for fire protection and the related data to the department
for fire protection of a public security organ; if they are not examined or fail to pass the examination, the administrative department
for construction may not issue the construction permit and the construction unit may not start work. 

If the design of a construction project for fire protection that has passed examination by the department for fire protection of
the public security organ need be altered, the matter shall be submitted to the said department for examination and approval; without
such examination and approval, no unit or individual may alter the design. 

When a construction project which is designed in accordance with the national standards of construction technology for fire protection
is completed, it shall be inspected for acceptance by the department for fire protection of the public security organ; if the project
is not inspected for acceptance or fails to pass the inspection, it may not be put to use. 

Article 11  All construction components and materials shall conform to the national or trade standards in their properties of
fire prevention. 

Where the national standards of construction technology for fire protection require the use of incombustible or fire retardant materials
in the internal furnishing and decoration of public places, only quality materials which are tested and verified by the inspection
institutions authorized in accordance with the provisions of the Law on Product Quality shall be used. 

Article 12  Before the use or start of business operation of public places, such as song and dance halls, cinemas, theaters,
hotels, restaurants, department stores or markets, an application shall be submitted to the department for fire protection of the
local public security organ for inspection; and these places may only be put to use or start business operation when they pass the
inspection for security against fire. 

Article 13  Where there is a danger of fire when public activities such as large gatherings, fireworks evening parties and lantern
festivals are held, the host units shall, in advance, work out plans for possible fire fighting and emergency evacuation, make sure
that measures for security against fire are taken and apply to the department for fire protection of the public security organ; such
activities may only be held after the said department inspects the venues and considers them qualified for security against fire. 

Article 14  All government departments, public organizations, enterprises and institutions shall perform the following duties
for security against fire: 

(1) to formulate regulations and operating rules for security against fire; 

(2) to practise the responsibility system for security against fire and appoint persons to take charge of fire protection for the
units themselves and for their subordinate departments and teams or groups; 

(3) to disseminate knowledge about fire protection among the employees in light of the characteristics of the units; 

(4) to arrange inspections of fire prevention in order to remove in time any potential fire hazard; 

(5) according to relevant State regulations, to install fire-fighting facilities and apparatus, set up safety signs for fire protection
and conduct regular inspection and maintenance in order that such facilities and apparatus remain in good condition and functional;
and 

(6) to make sure that fire escapes and exits are kept unobstructed and, in compliance with State regulations, set up signs for safe
evacuation from fire. 

Administrative units for residential areas shall, according to the relevant provisions in the preceding paragraph, fulfill their
duties for security against fire and do a good job in this respect. 

Article 15  No dormitories may be built for employees within buildings in which there are workshops or warehouses. 

Where there are already dormitories for employees within buildings in which there are workshops or warehouses, the problem shall
be solved within a time limit. If it is really difficult to do so, necessary measures for fire protection shall be taken, and with
the approval of the department for fire protection of the public security organ, the dormitories may continue to be used as such. 

Article 16  The department for fire protection of the public security organ of the local people’s government at or above the
county level shall designate the units that are dangerously exposed to fire hazards or where once a fire breaks out, it may cause
heavy casualties or heavy losses of property as priority units for fire protection in its administrative region and report the matter
to the said people’s government for the record. 

In addition to the duties prescribed in Article 14 of this Law, the priority units for fire protection shall perform the following
duties for security against fire: 

(1) to keep files on fire protection, determine the key locations for fire protection, install fire danger signs and exercise strict
control; 

(2) to conduct daily fire patrol and keep records of the patrols; 

(3) to train the employees in the skills of fire protection; and 

(4) to work out plans for fire fighting and emergency evacuation, and organize regular fire-fighting drills. 

Article 17  All units and individuals that produce, store, transport, sell or use or destroy such hazardous substances as combustibles
and explosives shall observe the State regulations governing fire protection. 

The units that produce such hazardous substances as combustibles and explosives shall attach to their products information on ignition
points, flash points and explosive limits as well as precautions against fire and explosion. The individually packed such hazardous
substances as combustibles and explosives shall have warning stickers. 

Anyone who enters a place where such hazardous substances as combustibles and explosives are produced or stored shall observe the
State regulations governing fire protection. It is forbidden to enter such a place with any kindling material. It is forbidden to
enter any public places or take any public means of transportation illegally with such hazardous substances as combustibles and explosives. 

Storehouses of combustibles shall be controlled in accordance with the State regulations governing fire protection. 

Article 18  Using naked fire in places that are exposed to fire hazards or explosion is forbidden. Under special circumstances
where naked fire is needed for work, the formalities of examination and approval shall be gone through beforehand in accordance with
relevant regulations. The workers shall follow the regulations governing fire protection and take necessary measures for the purpose. 

Workers who do electric or gas welding or other jobs under the danger of fire and workers who operate automatic fire protection systems
shall have qualification certificates for such jobs and shall strictly follow the operation procedures for fire protection. 

Article 19  The quality of the products for fire protection shall meet the national or trade standards.  It is forbidden
to manufacture, sell or use products for fire protection that are not tested and verified by the inspection institutions authorized
in accordance with the provisions of the Law on Product Quality. 

It is forbidden to use fittings or fire extinguishing agents that do not conform to the national or trade standards in the maintenance
of fire-fighting facilities and apparatus is forbidden. 

No department for fire protection of the public security organs or their members may take advantage of their position to designate
sales agents or brands of fire-fighting products for consumers. 

Article 20  The quality of electric products and gas appliances shall conform to the national or trade standards. Such products
and appliances shall be installed and used and the wire and pipe lines shall be designed and laid in conformity with the State regulations
governing technology for fire protection. 

Article 21  No units or individuals may damage or, without authorization, divert the use of, or remove fire-fighting facilities
or apparatus or let them lie idle, or pile things upon or occupy the areas around the place under which a fire hydrant is installed,
occupy firebreaks or block the passageways for fire engines. 

Before public utilities or urban construction units build roads or stop the supply of power or water or cut off telecommunications
lines, which may make it difficult for fire brigades to quench a fire and rescue people and property, these units shall inform the
local department for fire protection of the public security organ of the matter. 

Article 22  During the harvest time, forest and grassland fire season, major festivals and holidays and the season when fire
occurs frequently, the local people’s governments at different levels shall make arrangements for dissemination of knowledge about
fire protection in light of local conditions, take preventive measures and inspect the preparations made against the occurrence of
fire. 

Article 23  The villagers’ committees and residents’ committees shall mobilize the masses to prevent the occurrence of fire,
making arrangements for working out pledges for fire protection, and inspect the preparations made against the occurrence of fire.
Town and township people’s governments and urban neighborhood offices shall provide guidance in this respect and supervise the work. 

Article 24  Departments for fire protection of public security organs shall, in accordance with law, conduct supervision and
inspection to see that government departments, public organizations, enterprises and institutions observe the laws and regulations
governing fire protection. They shall supervise and inspect the priority units for fire protection at regular intervals. 

When members of the departments for fire protection of the public security organs conduct supervision and inspection, they shall
show their credentials. 

No department for fire protection of the public security organ may make charges for the supervision and inspection it conducts to
examine or inspect before acceptance a construction project for fire protection. 

Article 25  When the department for fire protection of the public security organ detects a potential fire danger, it shall immediately
notify the unit or individual concerned to take measures to remove the danger within a time limit. 

Chapter III 

Fire Protection Organizations 

Article 26  People’s governments at all levels shall set up various forms of fire protection organizations in light of the need
of economic and social development, strengthen such organizations and increase their ability of putting out fires. 

Article 27  The people’s governments of cities shall organize public security fire brigades and full-time fire brigades in conformity
with the standards set by the State for the establishment of fire stations, and these brigades shall shoulder the task of fire fighting. 

People’s governments of towns may organize full-time or volunteer fire brigades in light of the need of local economic development
and fire protection, and these brigades shall shoulder the task of fire fighting. 

In addition to fulfilling the task of fire fighting specified in this Law, the public security fire brigades shall join in rescuing
efforts in other calamities or accidents. 

Article 28  The following units shall organize their own full-time fire brigades for fire fighting: 

(1) nuclear power plants, large power plants, civil airports and large ports; 

(2) large enterprises that produce or store such hazardous substances as combustibles and explosives; 

(3) large warehouses and bases where important flammable goods or materials are stored; 

(4) large enterprises, other than the ones specified in subparagraphs (1), (2) and (3), that are exposed to a greater danger of fire
and are far from the local public security fire brigades; and 

(5) units that are in charge of protecting the ancient architectural complexes included in the list of the major sites of cultural
relics to be protected at the national level and that are far from the local public security fire brigades. 

Article 29  A full-time fire brigade shall be formed in conformity with relevant State regulations and be examined for approval
by the department for fire protection of the public security organ of the people’s government at the provincial level. 

Article 30  Where necessary, volunteer fire brigades consisting of staff members and workers or villagers may be formed by government
departments, public organizations, enterprises, institutions as well as townships and villages. 

Article 31  The department for fire protection of a public security organ shall provide the full-time and volunteer fire brigades
with professional guidance and it shall have the power to mobilize and direct the full-time fire brigades in fire fighting. 

Chapter IV 

Fire Fighting and Rescuing 

Article 32 Anyone who detects a fire shall report it to the police immediately. All units and individuals shall provide free convenience
for such report and may not obstruct it. False fire alarm is strictly forbidden. 

When a fire breaks out in a public place, the workers there shall have the duty to organize evacuation and help people to leave the
scene. 

The unit where a fire breaks out shall organize people to extinguish the fire. The units in the neighborhood shall assist it in the
effort. 

As soon as a fire brigade receives a fire alarm, it shall rush to the scene to rescue the people in distress, eliminate the hazards
and put out the fire. 

Article 33  When the department for fire protection of a public security organ organizes and directs, in a unified manner, the
people to extinguish a fire on the scene, the fire chief shall have the power to make the following decisions where necessary: 

(1) to use any water sources available; 

(2) to stop the supply of electricity, flammable gas and liquid, and restrict the use of fire and electricity; 

(3) to delimit the security area and put part of the traffic under control; 

(4) to make use of the buildings and relevant facilities nearby; 

(5) to pull down or demolish the buildings or structures adjacent to the scene of the fire in order to prevent the fire from spreading;
and 

(6) to mobilize water and power supply units, medical teams, transportation units and others concerned to help put out the fire. 

In the event of a conflagration, the local people’s government concerned shall mobilize people and muster goods and materials needed
for extinguishing the fire. 

Article 34  When taking part in a rescuing effort in calamities or accidents other than fires, the public security fire brigades
shall be under the unified direction of the local people’s government concerned. 

Article 35  When on their way to extinguish fires or carry out rescuing tasks in other calamities or accidents, the fire engines
and fire boats shall not be restricted by the limits of speed, route, direction or traffic signal, and all other vehicles and vessels
and pedestrians shall make way for them and may not pass through or surpass them. Traffic controllers shall ensure quick passage
of the fire engines and fire boats. 

Article 36  No fire engines, fire boats or fire-fighting apparatus, equipment or facilities may be used for purposes that have
nothing to do with fire fighting or rescuing. 

Article 37  When a pubic security fire brigade extinguishes a fire, it may not charge the unit or individual whose buildings
or houses caught fire. 

The cost of fuels and fire-extinguishing agents and wear and tear of apparatus and equipment by full-time or volunteer fire brigades
when helping other units to extinguish fires shall be compensated in accordance with relevant regulations. 

Article 38  Persons who are injured, disabled or killed when helping to extinguish fires shall be given medical treatment or
pensions in accordance with the relevant regulations of the State. 

Article 39  After a fire is extinguished, the department for fire protection of the public security organ shall have the power
to close the scene, where necessary, in order to investigate and determine the cause of the fire, estimate the losses incurred and
find out the responsibility for the accident. 

In the case of a conflagration, the State Council or the people’s government at the provincial level may arrange for an investigation
when it deems it necessary. 

After a fire is extinguished, the unit where the fire breaks out shall, in compliance with the requirement of the department for
fire protection of the public security organ, protect the scene, submit itself to investigation into the accident and truthfully
provide the facts about the fire. 

Chapter V 

Legal Responsibility 

Article 40  Any unit that commits one of the following acts in violation of the provisions of this Law shall be ordered to set
it right within a time limit; if it fails to do so, it shall be ordered to suspend construction, stop using the project, or suspend
production or business, and it may also be fined: 

(1) to start construction before submitting the design of the project for fire protection to the department for fire protection of
a public security organ for examination or the design fails to pass the examination; 

(2) to put to use a completed construction project which, as required by law, should be designed for fire protection, before it is
inspected for acceptance by the department for fire protection or after it fails to pass the inspection; or 

(3) to use a public place or start business operation before the place undergoes inspection for fire protection or after it fails
to pass the inspection. 

The unit that commits one of the acts mentioned above shall be penalized according to the provisions in the preceding paragraph,
and the persons who are directly in charge and the other persons who are directly  responsible shall be given a disciplinary
warning or be fined. 

Article 41  Any unit that, in violation of the provisions of this Law, holds mass activities in danger of fire, such as a large
gathering, a fireworks evening party or a lantern festival, the department for fire protection of the public security organ shall
order it to remove the danger immediately; if this cannot be done, the department shall order it to stop holding such activities
and may also impose a fine on the unit. 

The unit that commits one of the acts mentioned above shall be penalized according to the provisions in the preceding paragraph,
and the persons who are directly in charge and the other persons who are directly responsible shall be given a disciplinary warning
or be fined. 

Article 42  Any unit that, in violation of the provisions of this Law, constructs a project below the technological standards
of fire protection, uses construction components and materials that do not conform to the national or trade standards in their properties
of fire prevention, or uses disqualified furnishing or decorating materials shall be ordered to set it right within a time limit;
if it fails do so, it shall be ordered to suspend construction and may also be fined. 

The unit that commits any of the acts mentioned above shall be penalized according to the provisions in the preceding paragraph,
and the persons who are directly in charge and the other persons who are directly responsible shall be given a disciplinary warning
or be fined. 

Article 43  Any government department, public organization, enterprise or institution that, in violation of the provisions of
this Law, fails to perform its duty for fire protection shall be ordered to do it within a time limit; if it fails to do so, the
persons who are directly in charge and the other persons who are directly responsible shall be given administrative sanctions or
a disciplinary warning in accordance with law. 

Any profit-making unit that commits one of the following acts shall be ordered to set it right within a time limit; if it fails to
do so, it shall be ordered to suspend production or business operation and may also be fined, and the persons who are directly in
charge and the other persons who are directly responsible shall be fined: 

(1) failing to remove the hidden danger of fire in time; 

(2) failing to install fire-fighting facilities and apparatus in accordance with the relevant regulations of the State; or 

(3) failing to ensure unobstructed fire escapes or exits. 

Any unit that builds dormitories for employees within buildings in which there are workshops or warehouses shall be penalized in
accordance with the provisions in the second paragraph. 

Article 44  Any unit that, in violation of the provisions of this Law, manufactures or sells fire-fighting products that are
not tested and verified by the inspection institutions authorized in accordance with the provisions of the Law on Product Quality
shall be ordered to stop violating the provisions, its products and illegal gains shall be confiscated and it shall be given a heavier
punishment in accordance with the provisions of the Law on Product Quality. 

If a unit that is in charge of maintaining or checking fire-fighting facilities and apparatus and does such maintaining and checking
in violation of the regulations governing the technology for fire protection, it shall be ordered to set it right within a time limit
and` may also be fined, and the persons who are directly in charge and the other persons who are directly responsible shall be given
a disciplinary warning or be fined. 

Article 45  Any unit where electric products or gas appliances are installed or wire or pipe lines are laid at variance with
the regulations governing the technology for fire protection shall be ordered to have it set right within a time limit; if this is
not done, it shall be ordered to stop using them. 

Article 46  Any individual who, in violation of the provisions of this Law, produces, stores, transports, sells, or uses or
destroys such hazardous substances as combustibles and explosives shall be ordered to stop violating the provisions and may be given
a disciplinary warning, be fined or be detained for not more than 15 days. 

Any unit that commits one of the acts mentioned above shall be ordered to stop violating the provisions and may be given a disciplinary
warning or be fined, and the persons who are directly in charge and the other persons who are directly responsible shall be punished
in accordance with the provisions in the preceding paragraph. 

Article 47 Anyone who, in violation of the provisions of this Law, commits one of the following acts shall be given a disciplinary
warning, be fined or be detained for not more than 10 days: 

(1) to enter, in violation of the regulations governing fire protection, a place where such hazardous substances as combustibles
and explosives are produced or stored; 

(2) to work illegally with naked fire or, in defiance of prohibitions, to smoke or use naked fire in places that are exposed to the
danger of fire or explosion; 

(3) to prevent others from giving an alarm of fire or to give a false alarm; 

(4) to deliberately hinder the fire engines or fire boats from rushing to the scene of a fire or to disrupt order on the scene; 

(5) to refuse to obey command of the fire chief, thus obstructing fire fighting; or 

(6) to cause the occurrence of a fire inadvertently, which incurs no serious losses. 

Article 48  Any unit or individual that, in violation of the provisions of this Law, commits one of the following acts, shall
be given a disciplinary warning or be fined: 

(1) to instigate or force others to work at risks in violation of the regulations governing fire protection, which causes no serious
consequences; 

(2) to pile things upon or occupy the place under which a fire hydrant is installed, occupy firebreaks, block passageways for fire
engines, damage or without authorization divert the use of, or remove fire-fighting facilities or apparatus, or let them lie idle;
or 

(3) to fail to remove a major potential fire danger within the time limit set by the department for fire protection of the public
security organ. 

The unit that commits one of the acts mentioned above shall be penalized in accordance with the provisions in the preceding paragraph,
and the persons who are directly in cha

CIRCULAR OF THE STATE COUNCIL CONCERNING THE ORGANIZATIONAL STRUCTURE OF ADVISORY AND COORDINATING ORGANS AND PROVISIONAL ORGANS

Category  STATE INSTITUTIONS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-03-29 Effective Date  1998-03-29  


Circular of the State Council Concerning the Organizational Structure of Advisory and Coordinating Organs and Provisional Organs



(March 29, 1998)

    People’s government of the province, autonomous region and municipality
directly under the Central Government, ministries and commissions of the State
Council, organizations directly under the State Council:

    In accordance with the Plan for the Readjustment of Advisory and
Coordinating Organs and Provisional Organs of the State Council approved
through deliberation at the First Plenary Meeting of the State Council, the
restructuring and readjustment of advisory and coordinating organs and
provisional organs of the State Council are hereby circulated as follows:

    1. Advisory and Coordinating Organs and Provisional Organs of the State
Council through Restructuring and Readjustment

    State National Defence Mobilization Committee, its specific work shall be
undertaken by the State Development Planning Commission, the Headquarters of
the General Staff and the General Logistics Department;

    Special Committees of the Central Military Commission and the State
Council, its specific work shall be undertaken by the Commission of Science,
Technology and Industry for National Defence;

    State Frontier Defence Commission, its specific work shall be undertaken
by the Headquarters of the General Staff;

    Air Traffic Control Commission of the Central Military Commission and the
State Council, its specific work shall be undertaken by the Headquarters of
the General Staff;

    National Committee for Patriotic Public Health Campaign, its specific
work shall be undertaken by the Ministry of Public Health;

    National Greening Committee, its specific work shall be undertaken by the
State Forestry Bureau;

    Academic Degrees Committee of the State Council, it shall separately
establish an agency under the Ministry of Education;

    State Flood Control and Drought Relief Headquarters, it shall separately
establish an agency under the Ministry of Water Resources;

    Women and children’s Work Coordinating Committee of the State Council, its
specific work shall be undertaken by the All-China Women’s Federation;

    National Group for the Development of Army-People Relations, its specific
work shall be undertaken by the Ministry of Civil Affairs and the General
Political Department;

    Committee for Completion of the Three Gorges Project under the State
Council, it shall separately establish an agency;

    Disabled Persons’ Work Coordinating Committee of the State Council, its
specific work shall be undertaken by the China Disabled Persons’ Federation;

    Development Leading Group for Poverty Relief under the State Council, it
shall separately establish an agency under the Ministry of Agriculture;

    Tariff Policy Commission of the State Council, its specific work shall be
undertaken by the Ministry of Finance;

    China Committee of the International Decade for Natural Disaster
Reduction, its specific work shall be undertaken by the Ministry of Civil
Affair;

    Science, Technology and Education Leading Group of the State Council, its
specific work shall be undertaken by the Ministry of Science and Technology
and the Ministry of Education;

    State Leading Group for Performance of the Convention for Prohibiting the
Use of Chemical Weapon, its specific work shall be undertaken by the State
Petroleum and Chemical Industry Bureau;

    Working Group for Transferring Retired Offices to Civilian Jobs under the
State Council, its specific work shall be undertaken by the Ministry of
Personnel;

    State Commission for Economic Restructuring, its specific work shall be
undertaken by the Economic Restructuring Office of the State Council.

    Besides, the State Council Office for Correcting Malpractices in All
Trades and Professions will retain its name but have the Ministry of
Supervision undertaking its work.

    2. Advisory and Coordinating Organs and Provisional Organs of the State
Council to be Dissolved

    National Committee on Mineral Resources shall be dissolved and its
functions transferred to the Ministry of Land and Natural Resources;

    State Radio Management Commission shall be dissolved and its functions
transferred to the Ministry of Information Industry;

    Environmental Protection Committee of the State Council shall be dissolved
and its functions transferred to the State Bureau of Environment Protection;

    Leading Group for Settling Ex-Servicemen and Retired Officers under the
State Council shall be dissolved and its functions transferred to the Ministry
of Civil Affairs;

    Securities Commission of the State Council shall be dissolved and its
functions transferred to the Securities Supervisory and Regulatory Commission
of China;

    Military Goods Trade Leading Group of the Central Military Commission and
the State Council shall be dissolved and its functions transferred to the
Commission of Science, Technology and Industry for National Defence;

    Housing System Reform Leading Group of the State Council shall be
dissolved and its functions transferred to the Ministry of Construction;

    Negotiation Committee on the General Agreement on Tariffs and Trade shall
be dissolved and its functions transferred to the Ministry of Foreign Trade
and Economic Co-operation;

    National Narcotics Control Leading Group shall be dissolved and its
functions transferred to the Ministry of Public Security;

    National Anti-Smuggling Leading Group shall be dissolved and its functions
transferred to the General Administration of Customs;

    Leading Group for Foreign Investment of the State Council shall be
dissolved and its functions transferred to the Ministry of Foreign Trade and
Economic Co-operation;

    Coordination Group for Restructuring the Foreign Exchange System under the
State Council shall be dissolved and its functions transferred to the People’s
Bank of China;

    Coordination Group for Restructuring the Financial System under the State
Council shall be dissolved and its functions transferred to the Ministry of
Finance;

    Leading Group for Fixing Boundaries under the State Council shall be
dissolved and its functions transferred to the Ministry of Civil Affairs;

    Informationization Leading Group under the State Council shall be
dissolved and its functions transferred to the Ministry of Information
Industry;

    Coordination Group for Co-operation in Economy, Trade and Technology with
African Countries under the State Council shall be dissolved and its functions
transferred to the Ministry of Foreign Trade and Economic Co-operation.

    Besides, the following organs shall be deprived of their names:

    State Port Office shall be abolished and its tasks transferred to the
General Administration of Customs;

    Machinery and Electrical Products Import and Export Office of the State
Council shall be abolished and its tasks transferred to the Ministry of
Foreign Trade and Economic Co-operation;

    Planning Group for the Collating and Publication of Ancient Books shall be
abolished and its tasks transferred to the Press and Publication
Administration of China;

    Harness-Tai-Lake Leading Group under the State Council and the
Harness-Huai-River Leading Group under the State Council shall be abolished
and their tasks transferred to the Ministry of Water Resources.

    All other advisory and coordinating organs and provisional organs will be
abolished and those which retain their name previously will not exist any
longer.






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON IMPOSING THE CONSTRUCTION FEE FOR CULTURAL UNDERTAKINGS ON ENTERPRISES WITH FOREIGN INVESTMENT, FOREIGN ENTERPRISES AND FOREIGN INDIVIDUALS

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Imposing the Construction Fee for Cultural Undertakings
on Enterprises with Foreign Investment, Foreign Enterprises and Foreign Individuals

CaiShuiZi [1998] No.14

January 22, 1998

Interim Measures for the Administration of Levying the Construction Fee for Cultural Undertakings stipulated by the Ministry of Finance
and the State Administration of Taxation (CaiShuiZi [1997] No.95, hereinafter referred to as Measures) has been approved on June
17, 1997 by the State Council and promulgated for the implementation on July 7, 1997. It prescribes in the Measures that the enterprises
and individuals paying the sales tax of show business and advertising should be the obligors of the construction fee for cultural
undertakings. According to this, the enterprises with foreign investment, foreign enterprises and foreign individuals with above-mentioned
obligation to pay tax should pay the construction fee for cultural undertakings.

 
The Ministry of Finance, the State Administration of Taxation
1998-01-22

 




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...