INTERIM PROVISIONS ON IMPORT TAXES ON ARTICLES TAKEN INTO CHINA BY FOREIGNERS PERMANENTLY RESIDING IN CHINA

(Adopted by the State Council on January 3, 1999, promulgated by the General Administration of Customs on March 10, 1999, effective as of April 1, 1999)

    Article 1  These Provisions reformulated in order to implement opening-up policy, strengthen international exchange and promote the
development of foreign trade and economy.

    Article 2  For permanent resident offices established by foreign enterprises, news agencies, economic and trade organizations, cultural
associations and foreign legal persons upon approval by competent departments of the People’s Republic of China, if their permanent
residents such as foreign citizens, overseas Chinese and dwellers form Hong Kong, Macao and Taiwan (including their spouses and minor
children living with them) as well as other permanent residents (hereinafter referred to as permanent residents), who have been allowed
to enter into China and have lived in China for more than one year, import articles for self use, these Provisions shall be applied.
These persons include:

    (1) permanent residents in permanent resident offices established in China by foreign enterprises, economic,
trade and cultural organizations;

    (2) permanent residents in permanent resident offices established in China by foreign non-government organizations
of economic, trade and cultural associations;

    (3) permanent correspondents of permanent foreign news agencies in China;

    (4) permanent foreign residents in Chinese-foreign equity joint ventures, cooperative joint ventures and wholly
foreign-funded enterprises in China;

    (5) foreign experts (including experts from Hong Kong, Macao and Taiwan) and overseas Chinese experts who
have been long working in China;

    (6) foreign students and overseas Chinese students who have been long studying in China.

    Article 3  Articles for self use such as household pickup camera, camera, portable radio cassette player, portable laser phonograph
and portable computer taken into China by the six categories of permanent residents mentioned above who live in China for more than
one year (i.e. their work visas or study visas are valid for more than one year) when they enter into China for the first time during
the term of validity of their visas are exempted from import taxes, upon the examination and verification by the competent Customs
at the places where they are situated, with the limit of only one for each variety; taxes shall be levied according to the provisions
on articles exceeding the limit.

    Article 4  Teaching and researching articles such as books, materials, instruments for scientific research, tools, samples and reagents
taken into China by foreign experts (including experts from Hong Kong, Macao and Taiwan) and overseas Chinese experts conforming
to the provisions of Article 2 are exempted from import taxes within the reasonable number for self use.

    Article 5  Articles other than those as stipulated in Articles 3 and 4 taken into China by above-mentioned foreigners during the
period of living, working and studying in China shall be handled in accordance with the Measures of the Customs of the People’s Republic
of China for Supervision and Control over Belongs and Articles Carried by Passengers Entering or Exiting China.

    Article 6  Imported duty-free articles prescribed above shall be supervised and controlled by the Customs according to its relevant
provisions on duty-free import articles.

    Article 7  Articles taken into China by permanent residents (including their spouses and minor children coming with them and residing
in China) working for embassies ( or consulates) of foreign countries (including regions) in China, special organizations of the
United Nations and permanent resident (representative) offices of international organizations shall be handled in accordance with
current provisions.

    Article 8  If there is any divergence between previous policies and provisions and these Provisions, these Provisions shall prevail.

    Article 9  The General Administration of Customs are to formulate implementing rules in accordance with these Provision.

    Article 10  These Provision take effect as of April 1, 1999.