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2005

CIRCULAR BY THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON FURTHER BROADENING THE BUSINESS SCOPE OF INDIVIDUAL INDUSTRIAL AND COMMERCIAL HOUSEHOLDS ESTABLISHED BY HONG KONG AND MACAO RESIDENTS IN THE MAINLAND

Circular by the State Administration for Industry and Commerce on Further Broadening the Business Scope of Individual Industrial and
Commercial Households Established by Hong Kong and Macao Residents in the Mainland

No.189 [2005] of the State Administration for Industry and Commerce

The administrations for industry and commerce of all provinces, autonomous regions, municipalities directly under the Central Government,
cities under separate state planning and cities at the deputy provincial level,

In order to promote the amalgamation of the economy of the Mainland and Hong Kong and Macao, and support the economic development
and social stability of Hong Kong and Macao, on the basic of Mainland/Hong Kong and Macao Closer Economic Partnership Arrangements
(hereinafter referred to as the Arrangements) in 2003 and the Mainland/Hong Kong and Macao Supplementary Agreements in 2004 to the
Arrangements, and upon the approval of the State Council, the Mainland and the governments of Hong Kong and Macao signed the Supplementary
Agreement II to the Mainland/Hong Kong Closer Economic Partnership Arrangement and the Supplementary Agreement II to the Mainland/Macao
Closer Economic Partnership Arrangement respectively on October 18 and 21 of 2005, In accordance with the relevant provisions of
the Supplementary Agreements II to the Arrangements (For the detail, please see Attachment I), , the business scope of the individual
industrial and commercial households, which are established in the Mainland by the Chinese citizens of the permanent residents of
Hong Kong and Macao (hereinafter referred to as the Hong Kong and Macao residents) , shall be further broadened on the basis of the
original Agreements. In order to ensure the smooth progressing of the work, we hereby give notices on the relevant issues as follows:

I.

Since January 1, 2006, for any Hong Kong or Macao resident who establishes an individual industrial and commercial household in the
Mainland, the following industries will be added to the business scope of which he may apply for registration:

1.

the import and export of goods and technology;

2.

service of taking photos and printing enlarged photos;

3.

laundry and dyeing service

4.

repair and maintenance of automobiles and motorcycles.

II.

As for the individual industrial and commercial households established by Hong Kong and Macao residents applying for conducting the
business of import and export of goods and technology, the industry and commerce registration organs shall check and ratify the business
scope as “import and export of goods and technology” After a Hong Kong or Macao resident applicant has obtained the business license
for an individual industrial and commercial household, he shall, according to the provisions of Measures for Archival Filing and
Registration of Foreign Trade Operators (No.14 [2004] of the Ministry of Commerce), transact the archival filing and registration
at the department in charge of foreign trade, and may conduct the import and export of goods and technology after transacting relevant
formalities at the departments of customs, quality inspection, foreign exchange control, taxation, and etc. In case the business
of import and export of goods and technology conducted by the applicant falls within the projects restricted by any law or administrative
regulation, he may not start the operation until after having obtained the license from the department in charge of foreign trade
according to relevant provisions of the Foreign Trade Law.

III.

Any Hong Kong or Macao resident who pursue the business of repair and maintenance of automobiles and motorcycles according to the
relevant provisions of the Regulations on Road Transport and the Circular on Relevant Issues concerning Granting Advance Approval
to the Individual Industrial and Commercial Households Established by Hong Kong and Macao Residents in the Mainland (No.28 [2005]
of the Ministry of Commerce) by the Ministry of Commerce and other seven departments, shall first transact the advance approval formalities
for the trade name and the name of the individual industrial and commercial household at the industry and commerce registration organ,
and then apply for advance licensing with the administrative organ of road at the level of the county where the business is located
, with the hold of identity certificate, identity verification certificate and the Notice on Advance Approval for the Trade Name
and the Name of Individual Industrial and Commercial Household of Hong Kong and Macao Residents, submit the photocopies of relevant
certificates and documents to transact the advance license formalities. After having obtained the advance license, he may transact
the formalities for registration of individual business upon with the hold of the certificate of license at the industry and commerce
registration organ according to law.

IV.

After the business scope of individual industrial and commercial households established by Hong Kong and Macao residents in the Mainland
is broadened, the other relevant issues should still be execute according to the relevant provisions of the Several Opinions for
the Registration Administration on the Application for Establishing Individual Industrial and commercial households in the Mainland
by Hong Kong and Macao Residents (No.190 [2004] of the State Administration for Industry and Commerce) of the State Administration
for Industry and Commerce.

V.

All the localities shall, pursuant to the prescribed time and requirements, submit semi-annual reports and annual reports on the
National Statistical Form for the Registration of Individual Industrial and Commercial Households of Hong Kong and Macao Residents
as well as the relevant work situation respectively before June 15 and December 1 of the current year. In the case of any new situation
or new problem encountered in the work, please duly report to the department of individual and private economy supervision of the
State Administration for Industry and Commerce. The fax telephone is 010-68050283￿￿and the contact telephone is 010-68028439￿￿68013300
to 5809 or 5811.

Attachment:

I.

Provisions of the Supplementary Agreement II to the Arrangement concerning Establishing Individual Industrial and Commercial Households
in the Mainland by Hong Kong and Macao Residents (Omitted)

II.

National Statistical Form for Registration of Individual Industrial and Commercial Households of Hong Kong and Macao Residents (Omitted)

The State Administration for Industry and Commerce

December 8, 2005



 
The State Administration for Industry and Commerce
2005-12-08

 






NOTICE OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON MEASURES FOR ADMINISTRATION OF ADJUSTING BANK POSITION OF SETTLEMENT AND SALES OF FOREIGN EXCHANG






the State Administration of Foreign Exchange

Notice of the State Administration of Foreign Exchange on Measures for Administration of Adjusting Bank Position of Settlement and
Sales of Foreign Exchang

No.69 [2005] of the State Administration of Foreign Exchange

The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange of all provinces, autonomous
regions, and municipalities directly under the Central Government, the SAFE branches of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo;
all policy banks, state-owned commercial banks, and joint-stock commercial banks

In order to further develop foreign exchange market, enhance the flexibility and initiative of designated foreign exchange banks with
respect to the business of settlement and sale of foreign exchange and the management of foreign exchange, the state administration
of foreign exchange decides to adjust the measures for administration of the turnover position of settlement and sale of the foreign
exchange, and carry out the administration of general position of SSFE. According to Regulation of the People’s Republic of China
on Foreign Exchange Control and Interim Measures for Settlement and Sales of and Payment in Foreign Exchange by Designated Foreign
Exchange Banks (Order No. 4 [2004] of the People’s Bank of China) and other provisions, this Notice is hereby issued as follows:

1.

General position of Settlement and Sales of Foreign Exchange (SSFE) refers to the foreign exchange position formed through the transaction
between RMB and foreign currencies which is hold by designated foreign exchange banks (hereinafter referred to as “banks”). General
position of SSFE is formed in the business, by banks and subject to provisions of foreign exchange administration, of settlement
and sales of foreign exchange for customers and foreign exchange settlement and sale operations for self-purposes as well as participation
in the inter-bank foreign exchange market transaction.

2.

The State Administration of Foreign Exchange and its branches (hereinafter referred to as “foreign exchange bureaus”) shall, according
to balance of international payment, volume of exchange settlement and sales, domestic and foreign currencies as well as factors
such as asset status, verify general position of SSFE of banks and apply quota management. The lower limit of the management intervals
of general position of SSFE, at present stage, is zero while the upper limit is the quota authorized by foreign exchange bureaus.

3.

Banks which apply for approval or adjustment to quota of general position of SSFE shall provide the following materials to foreign
exchange bureaus:

(1)

Report of application;

(2)

Bases of approval or estimation and calculation about the quota of general position of SSFE;

(3)

Lists of combination of domestic and foreign currencies and balance sheet in foreign currencies within the territory in the latest
half year before application; and

(4)

Other documents and materials required by the State Administration of Foreign Exchange

As to foreign-funded banks, which have operated RMB business, applying for approval of quota of general position of SSFE at the first
time, they shall submit permission document, authorized by China Banking Regulatory Commission, of operating RMB business.

4.

Foreign exchange bureaus, on the entity principle, verify the quota of general position of SSFE and carry routine administration into
execution.

(1)

General position of SSFE of policy banks and national commercial banks are administered by the state administration of foreign exchanges.

(2)

General position of SSFE of urban commercial banks, rural commercial banks, rural cooperative financial institutions, foreign-funded
banks (Branches of foreign commercial banks are regarded as corporation.) shall be managed by local branches of the state administration
of foreign exchange (including foreign exchange administrative departments. Hereinafter referred to as foreign exchange branches).
As for the foreign commercial bank which has more than two branches within the territory of China, the general position of SSFE of
its branches can be administered, according to the relevant provisions in Notice of the State Administration of Foreign Exchange
concerning Concentrated Management of Turnover Position in Foreign Exchange Settlement and Sale of Foreign-Funded Banks within the
Territory of China (No. 50 [2005] of the State Administration of Foreign Exchange) uniformly in a centralized way, which is in charge
of the foreign exchange branch where the foreign commercial bank branches, responsible for performing the duties of concentrated
management, is located. With respect to the general position of SSFE of foreign-funded banks, which carry out the functions of business
market in inter-bank foreign exchange market, it shall be reported, after preliminary examination done by local foreign exchange
branches, to the State Administration of Foreign Exchange for uniformly approved.

Foreign exchange branches can authorize the central sub-branches within their own jurisdictions to conduct routine management of the
general position of SSFE of banks.

5.

Foreign exchange branches shall make assessment and supervision to the general position of SSFE of banks on a daily basis. The banks
shall manage the general position of SSFE over the whole systems of banks on a daily basis so as to keep the general position of
SSFE within the quota authorized by foreign exchange branches when each trading day ends. As for those who temporarily exceed the
quota, the amount shall be adjusted within the quota before the ending of next trading day.

6.

In a month after the day this notice comes into effect, Chinese-funded banks and foreign-funded banks which have operated RMB business
shall apply to foreign exchange branches for approval of the quota of general position of SSFE. Before the approval, those previously
fixed by the State Administration of Foreign Exchange shall continue to be valid.

7.

Foreign-funded banks which haven’t run RMB business still conduct the quota management about the special RMB account for exchange
settlement and sales according to Detailed Rules for the Implementation of the Settlement, Sale and Payment of Foreign Exchange by
Foreign-funded Banks (No.202 [1996] of the People’s Bank). In a month after the day the foreign-funded bank is authorized by China
Banking Regulatory Commission to operate RMB business, the foreign-funded bank shall apply to foreign exchange branch for the quota
of general position of SSFE.

8.

Banks shall accords with the requirements of these attachments in the notice and other provisions of foreign exchange administration,
and submit statistical report on general position of SSFE to foreign exchange branches.

9.

As for those banks who have violated provisions of administration of general position of SSFE, they shall be punished by foreign exchange
branches in accordance with the provisions of administration Regulation of the People’s Republic of China on Foreign Exchange Control,
Interim Measures for Settlement and Sales of and Payment in Foreign Exchange by Designated Foreign Exchange Banks (Decree of the
People’s Bank of China No.4. 2002) and other relevant provisions concerning foreign exchange administration.

10.

In case of any conflict in previous provisions with the present notice, the latter shall prevail. Notice on Strengthening the Administration
of Quota of the Turnover Position of Settlement and Sale of the Foreign Exchange in Designated Foreign Exchange Banks (Hui Guan Han
[1996] No. 130), Emergency Notice on Restatement of properly Managing the Reporting work of Daily Statement of Information about
SSFE and Turnover Position in Foreign Exchange Settlement and Sale and Revising relevant contents of records (Hui Guan Han [1998]
No.32) and Notice of the State Administration of Foreign Exchange on relevant issues concerning adjusting Report Form of Turnover
Position in Foreign Exchange Settlement and Sale in Banks (Hui Guan Han [2003] No.133) shall be repealed as of the date of implementation
of this notice.

All the branches of the SAFE shall promptly transmit this notice to urban commercial banks, rural commercial banks, rural cooperative
financial institutions and foreign-funded banks within its own jurisdictions upon receipt of it.

Annex: Requirements of Statistics on General Position of SSFE

State Administration of Foreign Exchange

September 22. 2005 Annex:Requirements of statistics on general position of SSFE

1.

Reporting time and methods of SSFE daily report

On the principle that general position of SSFE should be administrated by SAFE and its branches according to locality jurisdiction,
designated foreign exchange banks (hereinafter referred to as “banks”) shall submit SSFE daily report of each trading day to corresponding
foreign exchange bureaus in the next trading day. In case of any holiday at the expiry, the time limit may be extended.

(1)

SSFE daily report of policy banks, and national commercial banks shall be submitted respectively to the SAFE through fax and Email
(electronic documents takes the form of EXCEL) before 10:30 Am in the next trading day. FAX: 010-68402303; Email: shzh-hj@mail.safe.gov.cn

(2)

Specific submitting time and methods of SSFE daily report of other banks are in accordance with the requirements of all branches of
the State Administration of Foreign Exchange.

In case any foreign commercial bank administered general position of SSFE uniformly in a centralized way, SSFE daily report shall
be submitted to the local foreign exchange branch by foreign commercial bank branch which is in charge of performing duties of concentrated
management. Statistical items in the SSFE daily report shall be the summarized data of the whole branches of the foreign commercial
banks within the territory of China.

2.

Statistical description of SSFE daily report

(1)

Description of items

A.

SSFE for customers in a day shows the statistics of the amount of spot SSFE business managed by the whole bank system in a day.

B.

SSFE for self-purposes of the banks shows the statistics of the amount of self-purpose SSEF business managed by the whole bank system
in a day in accordance with foreign exchange administration provisions.

C.

Long-term SSFE Performance in a day shows the statistics of the performance amount of long-term SSFE business managed by the whole
bank system in a day to customers.

D.

Spot foreign exchange transaction among banks in a day shows the statistics of the amount of spot foreign exchange transaction, participated
by the whole bank system, in inter-bank foreign exchange market in a day.

E.

Long-term foreign exchange transaction Performance among banks in a day shows the statistics of the performance amount of long-term
foreign exchange transaction, participated by the whole bank system, in inter-bank foreign exchange market in a day. The scope of
statistics is confined to long-term transaction of full payment, not including long-term transaction of netting.

2.

Calculable relation of items

A.

￿￿7￿￿￿￿￿￿1￿￿￿￿￿￿2￿￿￿￿￿￿3￿￿￿￿￿￿4￿￿￿￿￿￿5￿￿￿￿￿￿6￿￿

B.

Balance (2),(3),(4) = settlement of exchange -Csales of exchange

Balance (5), (6) = buying – selling

3.

Others

A.

Concerning the linkage of reports

(a) For those Chinese-funded banks which are operating or not operating long-term SSFE business, once they started managing the position
of SSFE, “the financial position of SSFE of the previous day” in the FESS daily report as at the first day of exchange shall be calculated
as the amount at the end of the previous exchange day and the fixed adjustment amount.

(b) For those Foreign-funded banks, “the financial position of SSFE of the previous day” in the FESS daily report as at the first
day of exchange shall be calculated as the total amount of specific RMB accounts and cash accounts at the end of the previous exchange
day (including all on-process funds in the day) in negative value of US dollars. The exchange rate must be adopted as the same as
the closing rate of US dollars to RMB in the inter-banks exchange market that People’s Bank of China announced in the current day.
The fixed adjustment amount in foreign-funded banks must be adjusted above zero within 10 exchange days after adopting managing SSFE.

B.

Banks should meet all following requirements and record both internal and external large-amount settlements and sales of foreign exchange
transactions for each single transaction day in “notes” section of the SSFE daily report:

(a) The single settlement or sales of foreign exchange transaction, which the amount exceeds equivalence of $US 5000000 under current
accounts.

(b) The single settlement or sales foreign exchange transaction, which the amount exceeds equivalence of $US 10000000 under capital
accounts.

(c) All settlement or sales of foreign exchange transactions under current accounts for single customer every month, which the total
amount exceeds equivalence of $US 10000000.

(d) All settlement or sales of foreign exchange transactions under capital account for single customer every month, which the total
amount exceeds equivalence of $US 20000000.

C.

All amounts of foreign currencies in the SSFE report should be transferred into US dollars and recorded in integer. htm/e04334.htmSynthetic Position of SSFE Daily Report Form

￿￿

￿￿

Synthetic Position of SSFE Daily Report Form(    )

￿￿

Trade date:                              Unit: 10,000 USD￿￿

ITEM

SERIAL NO.

AMOUNT

Synthetic position of SSFE of the previous day

￿￿1￿￿

 

External SSEF of the day

BALANCE

￿￿2￿￿

 

INCLUDING

SETTLEMENT OF FOREIGN EXCHANGE

￿￿ 

 

SALES OF FOREIGN EXCHANGE

￿￿ 

 

Internal SSEF of the day

BALANCE

￿￿3￿￿

 

SETTLEMENT OF FOREIGN EXCHANGE

￿￿ 

 

 

SALES OF FOREIGN EXCHANGE

￿￿ 

 

 

Future external SSEF performance of the day

BALANCE

￿￿4￿￿

 

SETTLEMENT OF FOREIGN EXCHANGE

￿￿ 

 

 

SALES OF FOREIGN EXCHANGE

￿￿ 

 

 

Spot foreign exchange of inter-banks of the day

BALANCE

￿￿5￿￿

 

SETTLEMENT OF FOREIGN EXCHANGE

￿￿ 

 

 

SALES OF FOREIGN EXCHANGE

￿￿ 

 

 

Future foreign exchange performance of inter-banks of the day

BALANCE

￿￿6￿￿

 

SETTLEMENT OF FOREIGN EXCHANGE

￿￿ 

 

 

SALES OF FOREIGN EXCHANGE

￿￿ 

 

 

Synthetic Position of SSFE of the day

￿￿7￿￿

 

NOTES:

￿￿

￿￿

￿￿

Date:                                    

Department Seal and Signature:



THE CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE CEASE OF EXPORT TAX REFUND TO SUCH PRIMARY STEEL PRODUCTS AS BULLET

The Ministry of Finance, The State Administration of Taxation

The Circular of the Ministry of Finance and the State Administration of Taxation on the Cease of Export Tax Refund to Such Primary
Steel Products as Bullet

Cai Shui [2005] No.57

The finance bureaus (departments) of all provinces, autonomous regions, municipalities directly under the central government, cities
directly under state planning, the finance bureau of Xinjiang Production and Construction Corps:

From April 1, 2005, as authorized by the State Council, the policy of export tax refund to the primary steel products as under the
tariff code 7203, 7205, 7206, 7207, 7218 and 7224 shall be ceased. The specific enforcing date shall subject to the export date specified
by the customs on the “customs declaration of export goods (for export tax refund only)”.

It is hereby notified.

The Ministry of Finance

The State Administration of Taxation.

March 28, 2005

 
The Ministry of Finance, The State Administration of Taxation
2005-03-28

 



REPLY OF THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT TAXATION MEASURES FOR THE MATERIALS AND PARTS PICKED UP FROM BONDED WAREHOUSES AND EXPORT SUPERVISED WAREHOUSES

the State Administration of Taxation

Reply of the State Administration of Taxation on the Relevant Taxation Measures for the Materials and Parts Picked up from Bonded
Warehouses and Export Supervised Warehouses

Guo Shui Han [2005] No. 1153

The Shanghai Municipal Administration of State Taxation,

Your Request for Instruction as to Whether the Tax Exemption Certificates for the Processing Trade with Imported Materials Can Be
Issued for the Materials and Parts Picked up from Bonded Warehouses and Export Supervised Warehouses (Hu Guo Shui Jin [2005] No.
49 ) has been received. Upon deliberation, our official reply is hereby given as follows:

It is informed by the General Administration of Customs that the term “bonded warehouses” shall mean the warehouses as established
upon approval of the Customs exclusively for the storage of bonded imported goods and other goods for which the formalities of customs
clearance have not been gone through, and term “export supervised warehouses” shall mean the special warehouses for storing the goods
for which the export licenses or approval documents have already been obtained or the goods for which the foreign exchange has been
settled and all customs export formalities have been completed. Considering the situation that bonded warehouses are used to store
the imported materials and parts and the export supervised warehouses are used to store the goods for export, we hereby approve that
the tax exemption certificate for the processing trade with imported materials may be issued for the materials and parts that are
purchased by the enterprises from overseas and are picked up from the Customs bonded warehouses and for which the processing brochures
on the imported materials have been prepared; but it may not be issued for the materials and parts that are picked up by the enterprises
from export supervised warehouses.

State Administration of Taxation

December 7, 2005



 
the State Administration of Taxation
2005-12-07

 






MINISTRY OF COMMERCE CIRCULAR ON FIRST NATIONWIDE APPLICATION AMOUNT OF 10 CATEGORIES OF TEXTILES EXPORTED TO EU IN 2006

Ministry of Commerce

Ministry of Commerce Circular on First Nationwide Application Amount of 10 Categories of Textiles Exported to EU in 2006

Shang Mao Han [2005] No. 85

In accordance with Provisional Administration Measures on Textile Export, Provisional Administration Commodity Catalogue of Textile
Exports (hereinafter referred to as “Measures” and “Catalogue”), and the 2006 distribution total of 10 categories of textiles exported
to EU, First Application Amount in 2006 is now notified to nationwide operators as follows (see Appendix for details):

1.

Nationwide achievement distribution total is 75% of annual achievement distribution total.

2.

The application amount of all the operators shall be accounted according to No. 9 and No.10 of Measures. Relevant actual export achievement
could be consulted from “Export Information on Textiles” column of Ministry of Commerce website.

3.

If application amount is more than 1000 pieces (kg), the amount released shall be 75% of the operator’s annual application amount
(see Appendix 1), the rest amount shall be released later. If application amount is no more than 1000 pieces (kg), the amount released
shall be 100% of the operator’s annual application amount (see Appendix 2).

4.

The local responsible commercial sections shall promptly inform the local operators to submit application according to application
amount released by Ministry of Commerce and complete all the data required in the Appendix. The application reports and electronic
data of the local operators shall be submitted to Ministry of Commerce before October 20, so that Ministry of Commerce could notify
Final Distribution Plan accordingly later.

5.

Final Distribution Plan released by Ministry of Commerce shall be considered as the basis of signing and issuing Temporary Licence
of Textile Exports for relevant local operators.

6.

The local responsible commercial sections shall transmit this Circular to the relevant local operators, by informing that the related
data could be consulted from “Export Information on Textiles” column at https://www.mofcom.gov.cn.

7.

China International Electronic Commerce Centre shall be technically prepared in advance.

Appendix :

(1)

First Nationwide Application Amount of 10 Categories of Textiles Exported to EU in 2006 (annual application amount more than 1000
pieces or kg) (omitted)

(2)

First Nationwide Application Amount of 10 Categories of Textiles Exported to EU in 2006 (annual application amount no more than 1000
pieces or kg) (omitted)

Ministry of Commerce

September 22, 2005



 
Ministry of Commerce
2005-09-22

 






CIRCULAR OF THE MINISTRY OF COMMERCE ON THE ADMINISTRATION ACCORDING TO LAW TO CONDUCT WELL THE EXAMINATION AND APPROVAL WORK OF FOREIGN-FUNDED ENTERPRISES

the Ministry of Commerce

Circular of the Ministry of Commerce on the Administration according to Law to Conduct Well the Examination and Approval Work of Foreign-funded
Enterprises

Shang Zi Han [2005] No. 3

The commerce administrative departments of all provinces, autonomous regions, municipalities directly under the Central Government
and cities under separate state planning, the Shanghai Foreign Investment Committee and all the national economic and technological
development zones:

In order to carry out the instructions on “strictly implementing the Administrative License Law and taking the implementation of this
Law as a turning point to progressively boost the reform and innovation of administrative management system and to improve the level
of administration according to law” that are made by Premier Wen Jiabao at the National Videophone Conference on the Administration
according to Law and the spirit of the said Conference, the Ministry of Commerce has, after the Conference, delivered an official
document to notify all local foreign economic and trade (commerce) administrative departments to earnestly study them and put forward
specific requirements on the strict administration according to law to attract foreign investments. For the purpose of further intensifying
the administration according to law and guiding the national economic and trade (commerce) system to conduct well the foreign investment
work, the Circular on some issues is hereby given as follows:

I.

Since the promulgation and implementation of the Law on Chinese-foreign Equity Joint Ventures in 1979, upon the efforts of 25 years
a perfect legal system regarding the foreign investment absorption has come into being in our country. The Law on Chinese-foreign
Equity Joint Ventures, the Law on Chinese-foreign Contractual Joint Ventures and the Law on Wholly Foreign-funded Enterprises as
promulgated/amended by the National People’s Congress, and the Regulation for the Implementation of the Law on Chinese-foreign Equity
Joint Ventures, the Detailed Rules for the Implementation of the Law on Chinese-foreign Contractual Joint Ventures and the Detailed
Rules for the Implementation of the Law on Wholly Foreign-funded Enterprises as promulgated/amended by the State Council are the
foundation of the legal system of our country on the foreign investment absorption, and are the upper level laws for all provisions
on the examination and approval of investments by foreign businessmen and compatriots in Hong Kong, Macao and Taiwan. Therefore,
any rule or regulation enacted by any department or local government shall comply with the said laws and regulations.

II.

The three laws on the foreign investment and their implementation regulations (detailed rules) have specifically prescribed the legal
examination and approval procedures and the corresponding registration procedures (including the examination and approval of alteration
and the registration of alteration) as well as the relevant requirements for the establishment of foreign-funded enterprises and
enterprises funded by compatriots in Hong Kong, Macao and Taiwan. Therefore, the competent departments of foreign economic and trade
(commerce) departments at all levels shall strictly abide by and implement them, closely cooperate with all departments involved
pursuant to the specific operational procedures for the administration according to law that are formed through the legal practice
for more than 20 years, and do all kinds of work well according to law.

III.

In accordance with the Three Decision Scheme of the Ministry of Commerce delivered by the State Council in 2003, the Ministry of Commerce
shall be the administrative department for the foreign investment absorption of the whole country, and be responsible for guiding
foreign investment affairs of the whole country on a macro basis; analyze and study the foreign investment conditions of the whole
country, regularly submit the relevant trends and suggestions to the State Council, draw up policies on foreign investment, draft
and enforce the reform schemes, participate in drafting medium and long-term development plans on foreign investment utilization;
approve the establishment and alteration of foreign-funded enterprises whose investment amount exceeds the upper limit as prescribed
by the State, whose investments are restricted by the State and which involve the quota and licensing administration; examine and
approve the contracts, articles of association and other significant alterations (the increase and decrease of capital, share transfer
and merger) of large-scaled foreign-funded projects; supervise the implementation of laws, regulations, rules, contracts and articles
of association by foreign-funded enterprises; give guidance to and administrate the attraction and promotion of foreign investment
and the examination and approval of foreign-funded enterprises as well as the import and export affairs of the whole country; carry
out comprehensive coordination and guidance to the relevant specific work of national economic and technological development zones,
guide and coordinate the work in the Suzhou Industrial Park; and be responsible for the statistical work of foreign investments.
The Guiding Directory on Industries Open to Foreign Investment shall be worked out by the National Development and Reform Commission
in collaboration with the Ministry of Commerce and other departments involved, and jointly promulgated by the National Development
and Reform Commission and the Ministry of Commerce.

IV.

The State Council, pursuant to the Administrative License Law and the relevant provisions on the reform of administrative examination
and approval system, delivered an official document in 2004 to specifically check and ratify the administrative licensing (examination
and approval) matters of the Ministry of Commerce concerning the foreign investment, which mainly include: the examination and approval
of the establishment and alteration of foreign-funded enterprises to be examined and approved by the Ministry of Commerce and the
former Ministry of Foreign Trade and Economic Cooperation, the record of the establishment and alteration of foreign-funded enterprises
established upon the approval of the local government, the examination and approval and archival filing of foreign cooperative contracts
for exploring petroleum, natural gas and coal bed gas, geophysical prospecting agreements, joint research agreements and their alterations;
the examination and approval of operating Chinese-foreign equity joint ventures by contract and of operating and managing joint ventures
on commission by enterprises in other countries (regions), the examination and approval of determining the projects of foreign-funded
enterprises involving export quotas and licenses, the examination and approval of branches as no separate legal entity established
by foreign-funded enterprises outside the territory of China as well as the examination and approval of quotas and licenses for part
of the import goods of foreign-funded enterprises.

V.

After the establishment of the Ministry of Commerce according to the resolution of the Second Plenary Session of the 16th Central
Committee of the CPC in 2003, the General Office of the State Council delivered a notice that clearly prescribes that the functions
of the former competent department of foreign trade and economic cooperation as prescribed by the current administrative regulations,
documents of the State Council and departmental rules and normative documents as approved by the State Council shall be performed
by the newly established Ministry of Commerce.(see Annex I for the Circular of the General Office of the State Council on the Ministry
of Commerce’s Performance of the Corresponding Functions as Prescribed by the Current Administrative Regulations and Documents of
the State Council (Guo Ban Fa [2003] No.87 )

VI.

In order to fulfill our country’s commitments for the entry into WTO , our country, pursuant to three laws on the foreign investment
and their implementation regulations (detailed rules), has formulated and promulgated for implementation in succession more than
40 regulations and rules (see Annex II for the details) involving the foreign investment and investment by Hong Kong, Macao and Taiwan
compatriots in service trade sectors, such as finance, insurance, securities, commercial circulation, tourism, telecommunication,
construction, medical treatment and sanitation, transportation, advertisement, conference and exhibition and film and movie production,
and which have been reported to WTO according to the requirements. The mainland has separately signed a Closer Economic Partnership
Arrangement (CEPA) with Hong Kong and Macao, which involves many service trade sectors, and the relevant commitments of CEPA have
been included into the foresaid regulations and rules according to the requirements of the State Council. The establishment of foreign-funded
enterprises and enterprises funded by Hong Kong, Macao and Taiwan compatriots in service trade sectors shall be examined and approved
by the corresponding department of the State Council or other local organs in strict compliance with the principles of examination
and approval, limit of authorities and procedures as prescribed by the regulations and rules as listed in Annex I. In regard to such
fields as the establishment of investment companies, joint-stock limited companies and pioneering investment companies as funded
by foreign businessmen and Hong Kong, Macao and Taiwan compatriots, the merger and split of foreign-funded enterprises and enterprises
funded by Hong Kong, Macao and Taiwan compatriots, the merger of domestic enterprises by foreign capitals and the transfer of corporate
shares of listed companies to foreign businessmen, the corresponding provisions have been formulated in accordance with the three
laws on the foreign investment and their implementation regulations (detailed rules). The investments by foreign businessmen and
Hong Kong, Macao and Taiwan compatriots in such fields shall be examined and approved in accordance with the relevant provisions
currently in force (see Annex III).

VII.

The administrative departments of foreign economic and trade (commerce) at all levels shall, in strict accordance with the procedures
as prescribed by laws and the limit of authorities as provided for by the State Council, examine and approve the investments by foreign
businessmen and compatriots of Hong Kong, Macao and Taiwan. In principle, the alteration formalities for any established foreign-funded
enterprise or enterprise funded by compatriots of Hong Kong, Macao or Taiwan shall be examined and approved by the competent department
that originally examined and approved the establishment of the former enterprise. If an established foreign-funded enterprise or
enterprise funded by Hong Kong, Macao or Taiwan compatriots that is classified into the encouraged category or permitted category
plans to newly increase an investment of $100 million or more, or if an established foreign-funded enterprise or enterprise funded
by Hong Kong, Macao or Taiwan compatriots that is classified into the restricted category plans to newly increase an investment of
$50 million or more, its examination and approval formalities shall be handled by the Ministry of Commerce. If an established foreign-funded
enterprise or enterprise funded by Hong Kong, Macao or Taiwan compatriots that was examined and approved by the former local administrative
department of foreign economic and trade (commerce) or by a department authorized by the State Council expands the business scope
and which involves the special state prescription and therefore, it shall be reported to the Ministry of Commerce for examination
and approval, the Ministry of Commerce shall handle the alteration formalities.

VIII.

The administrative departments of foreign economic and trade (commerce) at all levels shall carry out the spirit of the Administrative
License Law, follow the principles of legality, openness, fairness, transparency and convenience for the public, successively promote
the transformation of governmental functions on the basis of the achievements already obtained and in accordance with the requirements
of the State Council on reforming the administrative examination and approval system, and legally regulate their own examination
and approval and licensing acts.

IX.

Miscellaneous Matters:

Within 30 days after a foreign-funded enterprise or enterprise funded by Hong Kong, Macao or Taiwan compatriots is established or
altered upon the examination and approval of the foreign economic and trade (commerce) administrative department, it shall go through
the establishment registration or alteration registration formalities, foreign exchange registration and customs registration formalities
with the administrative department for industry and commerce, upon the strength of the Approval Certificate of Foreign-funded Enterprises
or the Approval Certificate of Enterprises Funded by Hong Kong, Macao or Taiwan Compatriots as issued by the administrative department
of foreign economic and trade (commerce). According to the arrangements and demands of the State Council on the administrative examination
and approval reform, all regions have made active progresses in simplifying the examination and approval links, and all regions shall
insist on such effective practices as One Continuous Line Service and One-window Service. The local administrative department of
foreign economic and trade (commerce) shall, pursuant to the Law on Chinese-foreign Equity Joint Ventures, the Law on Chinese-foreign
Contractual Joint Ventures, the Law on Wholly Foreign-funded Enterprises as well as their implementation regulations (detailed rules),
report such matters as the establishment and alteration of foreign-funded enterprises and enterprises funded by Hong Kong, Macao
and Taiwan compatriots to the Ministry of Commerce for archival purposes. All the examination and approval matters involving investments
by foreign businessmen and compatriots of Hong Kong, Macao and Taiwan, including applications for tax exemption and tax reduction
for the procurement of homemade equipment by enterprises that require confirmation letters as issued by the examining and approving
organ, shall be handled according to the current measures of each province or municipality, of which, in case the exclusively foreign-owned
enterprises, foreign-funded enterprises in service trade sectors and the established foreign-funded enterprises that fall into the
encouraged category increase their investments, the confirmation letters therefor shall be issued according to the relevant provisions
delivered from 1998 and the current practices.

In order to comprehensively promote the administration according to law and facilitate the personnel who undertake the work relating
to the foreign investment of the administrative departments of commerce at all levels to study, know well and suck the knowledge
of laws and regulations on the foreign investment, the Ministry of Commerce has edited the Newly Compiled Collection of Legal Documents
on Foreign Investment Utilization (1979-2003), which embodies 12 categories of more than 1,000 items of laws, administrative regulations,
ministerial rules and normative documents relating to the foreign investment that have been promulgated since the opening-up and
reform and are still in force. Revised and enlarged editions will be compiled and printed henceforth as the circumstances may require.
All regions shall reinforce the study of laws and regulations on foreign investment and progressively enhance the level of administration
according to law.

The Ministry of Commerce of the People’s Republic of China

January 21, 2005 Annex I:Circular of the General Office of the State Council on the Ministry of Commerce’s Performance of the Corresponding Functions as Prescribed
by the Current Administrative Regulations and Documents of the State Council

Guo Ban Fa [2003] No. 87

All the ministries and commissions of the State Council, all the organs directly under the State Council,

The Institution Reform Plan of the State Council ratified at the 1st Session of the Standing Committee of the Tenth National People’s
Congress and the Circular of the State Council on Establishment of Institutions (Guo Fa [2003] No. 8) has decided to establish the
Ministry of Commerce. The provisions of “three decision scheme” of the Ministry of Commerce further specify the functions thereof,
defining that the whole functions of the former Ministry of Foreign Trade and Economy Cooperation and part of the functions of the
former State Economy and Trade Commission and National Development and Planning Commission shall be subject to the Ministry of Commerce.
With a view of facilitating the Ministry of Commerce carrying out its functions according to law, favoring the implementation of
WTO Rules, upon the approval of the State Council, the Circular is hereby given as follows;

Where the functions of the competent departments under the former Ministry of Foreign Trade and Economy Cooperation are concerned
in the current administrative regulations and the State Council documents as well as the ministerial rules approved by the State
Council and normative documents, they shall be performed by the newly established Ministry of Commerce, and the expression for the
Ministry of Foreign Economy and Trade or the Ministry of Foreign Trade and Economy Cooperation in the concerned articles shall refer
to the Ministry of Commerce. Where the functions of former State Economy and Trade Commission and former National Development and
Planning Commission are concerned in the current administrative regulations and documents of the State Council as well as the ministerial
rules approved by the State Council and normative documents, they shall be performed by the Ministry of Commerce in accordance with
the Institution Reform Plan of the State Council ratified at the tenth National People’s Congress and the Circular of the State Council
on Establishment of Institutions (Guo Fa [2003] No. 8) as well as the provisions of “three decision scheme” of the Ministry of Commerce
approved by the State Council.

General Office of the State Council

October 20, 2003 Annex II:

1.

Regulation of the People’s Republic of China on International Marine Transportation (promulgated by Order No.335 [2001] of the State
Council)

Detailed Rules for the Implementation of the Regulation of the People’s Republic of China on International Marine Transportation (promulgated
by Order No.1 [2003] of the Ministry of Communications)

2.

Interim Measures for the Examination and Approval and Administration of Wholly Foreign-owned Shipping Companies (promulgated by Order
No.1 [2000] of the Ministry of Communications and the Ministry of Foreign Trade and Economic Cooperation)

3.

Regulation of the People’s Republic of China on Sino-foreign Cooperation in the Exploitation of Continental Petroleum Resources (promulgated
by Order No.317 [2001] of the State Council)

4.

Regulation of the People’s Republic of China on Sino-foreign Cooperation in the Exploitation of Offshore Petroleum Resources (promulgated
by Order No.318 [2001] of the State Council)

5.

Provisions on the Administration of Foreign-funded Urban Planning Service Enterprises (promulgated by Order No.116 [2003] of the Ministry
of Construction and the Ministry of Foreign Trade and Economic Cooperation)

6.

Regulation of the People’s Republic of China on the Administration of Foreign-Funded Financial Institutions (promulgated by Order
No.340 [2001] of the State Council)

7.

Regulation of the People’s Republic of China on the Administration of Foreign-funded Insurance Companies (Order No. 336 [2001] of
the State Council)

8.

Rules on the Establishment of Foreign-shared Securities Companies (promulgated by Order No.8 [2002] of the China Securities Regulatory
Commission)

9.

Rules on the Establishment of Foreign-shared Fund Management Companies (promulgated by Order No.9 [2002] of the China Securities Regulatory
Commission)

10.

Provisions on the Administration of Foreign-funded Telecommunications Enterprises (promulgated by Order No. 333 [2001] of the State
Council)

11.

Interim Measures for the Examination and Approval and Administration of the Foreign-funded Railway Goods Transport Services (promulgated
by Order No. 4 [2000] of the Ministry of Communications and the Ministry of Foreign Trade and Economic Cooperation)

12.

Provisions on the Administration of Foreign-funded Road Transport Services (promulgated by Order No. 9 [2001] the Ministry of Communications
and the Ministry of Foreign Trade and Economic Corporation)

13.

Provisions on Foreign-funded Civil Aviation Services (promulgated by Order No.110 [2002] of the Civil Aviation Administration of China,
the Ministry of Foreign Trade and Economic Cooperation and the National Development and Reform Commission)

14.

Measures for the Administration of Foreign-funded International Freight Agency Enterprises (promulgated by Order No.36 [2002] of the
Ministry of Foreign Trade and Economic Cooperation)

15.

Circular on the Relevant Issues concerning the Experimental Establishment of Foreign-Funded Logistics Enterprises (Wai Jing Mao Zi
Tong Yi Han Zi [2002] No.615, promulgated by the Ministry of Foreign Trade and Economic Cooperation)

16.

Measures for the Administration on Foreign Investment in Commercial Fields (promulgated by Order No.8 [2004] of the Ministry of Commerce)

17.

Measures for the Administration of Foreign-funded International Maritime Transportation Enterprises (promulgated by Order No.1 [2004]
of the Ministry of Communications and the Ministry of Commerce)

18.

Interim Measures for the Administration of Sino-foreign Equity and Cooperative Joint Medical Institutions (promulgated by Order No.11
[2000] of the Ministry of Health and the Ministry of Foreign Trade and Economic Cooperation)

19.

Interim Provisions on Foreign-invested Cinemas (promulgated by Order No.21 [2003] of the State Administration of Radio, Film and Television,
the Ministry of Commerce and the Ministry of Culture)

20.

Regulation on the Administration of Travel Agencies (Issued by the State Council on December 11, 2001)

21.

Interim Provisions on the Establishment of Foreign-held and Wholly Foreign-funded Travel Agencies (promulgated by Order No.19 [2003]
of the National Tourism Administration and the Ministry of Commerce)

22.

Several Provisions on the Establishment of Foreign-funded Advertisement Companies (promulgated by Order No.8 [2004] of the State Administration
for Industry and Commerce and the Ministry of Commerce)

23.

Interim Provisions on the Establishment of Foreign-funded Assets Appraisal Institutions (Guo Zi Ban Fa [1997] No.26, promulgated by
the State-owned Assets Management Bureau and the Ministry of Foreign Trade and Economic Cooperation)

24.

Provisions on the Examination and Approval of the Establishment of Foreign-funded Inspection and Appraisal Companies of Import and
Export Commodities (promulgated by the State Administration of Import and Export Commodities Inspection and the Ministry of Foreign
Trade and Economic Cooperation)

25.

Measures for the Examination and Approval, Registration, Supervision and Administration of Certification Institutions, Certification
Trainings and Consultation Institutions (Guo Ren Ke Lian [2002] No.21, promulgated by the Certification and Accreditation Administration
of the People’s Republic of China, the General Administration of Quality Supervision, Inspection and Quarantine, the State Administration
for Industry and Commerce and the Ministry of Foreign Trade and Economic Cooperation)

26.

Interim Measures for the Administration of Chinese-foreign Contractual Accounting Firms (promulgated by Order No.24 [1996] of the
Ministry of Finance)

27.

Interim Measures for the Administration of Examination and Approval of Foreign-funded Lease Companies (promulgated by Order No. 3
[2001] of the Ministry of Foreign Trade and Economic Cooperation)

28.

Rules on the Administration of Foreign-funded Construction Enterprises (promulgated by Order No.113 [2002] of the Ministry of Construction
and the Ministry of Foreign Trade and Economic Cooperation)

29.

Rules on the Administration of Foreign-funded Construction Engineering Design Enterprises (promulgated by Order No.114 [2002] of the
Ministry of Construction and the Ministry of Foreign Trade and Economic Cooperation)

30.

Interim Provisions on the Administration of the Establishment of Sino-foreign Equity and Cooperative Joint Job Intermediary Institutions
(promulgated by Order No. 14 [2001] of the Ministry of Labor and Social Security and the State Administration for Industry and Commerce)

31.

Interim Measures for the Establishment of Sino-foreign Equity Joint Foreign Trade Corporations (promulgated by Order No. 1 [2003]
of the Ministry of Foreign Trade and Economic Cooperation)

32.

Interim Provisions on the Establishment of Foreign-funded Printing Enterprises (promulgated by Order No. 16 [2002] of the General
Administration of Press and Publication and the Ministry of Foreign Trade and Economic Cooperation)

33.

Measures for the Administration of Chinese-foreign Cooperative Audio-video Product Distribution Enterprises (promulgated by Order
No. 28 [2003] of the Ministry of Culture and the Ministry of Commerce)

34.

Measures for the Administration of Foreign-Funded Distribution Enterprises of Books, Newspapers, and Journals (promulgated by Order
No.18 [2003] of the General Administration of Press and Publication and the Ministry of Foreign Trade and Economic Cooperation)

35.

Circular on Strictly Controlling Absorbing Foreign Funds to Establish Foreign-funded Funeral and Interment Service Facilities (Min
Shi Fa [1995] No. 6 , promulgated by the Ministry of Civil Affairs, the State Planning Commission and the Ministry of Foreign Trade
and Economic Cooperation)

36.

Interim Provisions on the Management of Chinese-foreign Joint Job Intermediary Agencies (promulgated by Order No.2 [2003] of the Ministry
of Personnel, the Ministry of Commerce and the State Administration for Industry and Commerce)

37.

Administrative Measures for the Establishment of Foreign-funded Export Procurement Centers (promulgated by Order No. 3 [2003] of the
Ministry of Commerce, the General Administration of Customs, the State Administration of Taxation and the State Administration of
Foreign Exchange)

38.

Interim Provisions on the Establishment of Foreign-funded Convention & Exhibition Companies (promulgated by Order No.1 [2004] of the
Ministry of Commerce)

39.

Interim Provisions on the Administration of Chinese-foreign Equity and Contractual Joint Ventures of Radio and Television Programs
Production and Management (promulgated by Order No.44 [2004] of the State Administration of Radio, Film and Television and the Ministry
of Commerce of the People’s Republic of China)

40.

Interim Provisions on Operation Qualification Access for Movie Enterprises (promulgated by Order No.43 [2004] of the State Administration
of Radio, Film and Television and the Ministry of Commerce)

41.

Other laws, regulations and rules regarding the foreign investments in service trade sectors

Annex III:

1.

Provisions on the Establishment of Foreign-funded Investment Companies

2.

Interim Provisions on Foreign-funded Joint-stock Limited Companies

3.

Interim Provisions for Foreign Investors to Merge Domestic Enterprises

4.

Provisions on the Merger and Split of Foreign-funded Enterprises

5.

Interim Provisions on Foreign-funded Pioneering Investment Enterprises

6.

Circular on Relevant Issues concerning Declaration Procedures for Transfer of State-owned Shares of Listed Companies to Foreign Investors
and Foreign-funded Enterprises

7.

Interim Provisions on Drawing Foreign Capital into the Asset Restructuring and Disposal by Financial Asset Management Companies



 
the Ministry of Commerce
2005-01-21

 






JUDICIAL IMMUNITY FROM COMPULSORY MEASURES CONCERNING THE PROPERTY OF FOREIGN CENTRAL BANKS LAW

Law of the People’s Republic of China on Judicial Immunity from Compulsory Measures Concerning the Property of Foreign Central Banks

Order of the President of the People’s Republic of China 

No. 41 

The Law of the People’s Republic of China on Judicial Immunity from Compulsory Measures Concerning the Property of Foreign Central
Banks, adopted at the 18th Meeting of the Standing Committee of the Tenth National People’s Congress of the People’s Republic
of China on October 25, 2005, is hereby promulgated and shall go into effect as of the date of promulgation. 

Hu Jintao 

President of the People’s Republic of China 

October 25, 2005 

 

(Adopted at the 18th Meeting of the Standing Committee of the Tenth National People’s Congress on October 25, 2005) 

Article 1 The People’s Republic of China grants to foreign central banks’ property the judicial immunity from the compulsory measures
of property preservation and execution, except where a foreign central bank, or a government to which a central bank is subordinate,
gives up such immunity in writing, and where the property which is designated to be used for property preservation and execution. 

Article 2 For the purposes of this Law, a foreign central bank means the central bank of a foreign country and of a regional economic
integration organization, or the financial administration institution exercising the functions of a central bank. 

For the purposes of this Law, the property of foreign central banks includes the cash, notes, bank deposits, securities, foreign
exchange reserve and gold reserve of the foreign central banks and the banks’ immovable property and other property. 

Article 3 Where a foreign country grants no immunity to the property of the central bank of the People’s Republic of China or to
the property of the financial administration institutions of the special administrative regions of the People’s Republic of China,
or the immunity granted covers less items than what are provided for in this Law, the People’s Republic of China shall apply the
principle of reciprocity. 

Article 4 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 MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE CONCERNING PRE-INCOME-TAX DEDUCTION OF THE INSURANCE GUARANTEE FUNDS PAID BY INSURANCE COMPANIES

the Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on the Issue Concerning Pre-income-tax Deduction of the
Insurance Guarantee Funds Paid by Insurance Companies

Cai Shui [2005] No. 136

The public finance departments (bureaus), bureaus of state taxation and those of local taxation of all provinces, autonomous regions,
municipalities directly under the Central Government and municipalities under separate state planning, the Financial Bureau of Xinjiang
Production and Construction Corps:

With a view to effectively preventing and eliminating financial risks, maintaining financial stability, and guaranteeing the benefits
of policy holders, and in accordance with the Measures for the Administration of Insurance Guarantee Funds, you are hereby notified
of the issue concerning pre-income-tax deduction of the insurance guarantee funds paid by insurance companies:

I.

The insurance guarantee funds paid by insurance companies in accordance with the following provisions can be deducted before taxation
on the basis of the actual amount:

1.

As for the property insurance, accidental injury insurance or short-term health insurance, the amount deductible may not exceed 1%
of the retention premium;

2.

As for long-term life insurance with a guaranteed interest rate or long-term health insurance, the amount deductible may not exceed
0.15% of the retention premium;

3.

As for long-term life insurance without a guaranteed interest rate, the amount deductible may not exceed 0.05% of the retention premium;
and

4.

As for other insurance products, the amount deductible may not exceed the proportions as provided by the CIRC.

II.

Where an insurance company is under any of the following circumstances, the insurance guarantee funds it has paid may not be deducted
before taxation:

1.

The balance of the insurance guarantee funds of a property insurance company, comprehensive reinsurance company or property reinsurance
company reaches up to 6% of its total assets; or

2.

The balance of the insurance guarantee funds of a life insurance company, health insurance company or life reinsurance company reaches
up to 1% of its total assets.

III.

This Circular shall go into effect as of January 1, 2005. Paragraph 2 of Article 12 of the “Circular of the State Administration
of Taxation on Some Issues concerning Income Tax for Financial Insurance Enterprises” (Guo Shui Han [2000] No. 906) shall be abolished
simultaneously.

the Ministry of Finance

the State Administration of Taxation

September 17, 2005



 
the Ministry of Finance, the State Administration of Taxation
2005-09-17

 






CIRCULAR OF THE PEOPLE’S BANK OF CHINA FOR THE BANK OF COMMUNICATIONS AND OTHER 5 COMMERCIAL BANKS TO UNDERTAKE THE LEADING UNDERWRITING OF SHORT-TERM FINANCING BONDS

Circular of the People’s Bank of China for the Bank of Communications and Other 5 Commercial Banks to Undertake the Leading Underwriting
of Short-term Financing Bonds

Yin Fa [2005] No. 174
July 7, 2005

The Bank of Communications, CITIC Industrial Bank, China Minsheng Bank, China Merchants Bank, Industrial Bank and Shanghai Pudong
Development Bank,

We have received your application materials for undertaking the underwriting of short-term financing bonds. According to the related
provisions of the Measures for the Administration on Short-term Financing Bonds (Decree [2005] No. 2 of the People’s Bank of China)
and the Procedures for the Underwriting of Short-term Financing Bonds (see the Announcement No. 10, 2005 of the People’s Bank of
China), a circular is hereby rendered as follows.

1.

It is approved that the Communications, CITIC Industrial Bank, China Minsheng Bank, China Merchants Bank, Industrial Bank and Shanghai
Pudong Development Bank may undertake the leading underwriting of short-term financing bonds.

2.

You shall fulfill the obligations according to the Measures for the Administration on Short-term Financing Bonds and the Procedures
for the Underwriting of Short-term Financing Bonds.

3.

You are requested to contact the National Inter-bank Funding Center and China Government Securities Depository Trust & Clearing
Co. Ltd., and well make the related preparations.



 
The People’s Bank of China
2005-07-07

 






MEASURES FOR THE IMPLEMENTATION OF ADMINISTRATIVE PUNISHMENTS OF THE MINISTRY OF COMMERCE (FOR TRIAL IMPLEMENTATION)

the Ministry of Commerce

Order of the Ministry of Commerce of the People’s Republic of China

No. 1

The Measures for the Implementation of Administrative Punishments of the Ministry of Commerce (for Trial Implementation), which were
adopted at the 18th executive meeting of the Ministry of Commerce after deliberation on December 29, 2004, are hereby promulgated
and shall go into effect as of March 1, 2005.

Minister of the Ministry of Commerce Bo Xilai

January 7, 2005

Measures for the Implementation of Administrative Punishments of the Ministry of Commerce (for Trial Implementation)

Article 1

For the purpose of regulating the imposition of administrative punishments by the Ministry of Commerce, ensuring the legality and
effectiveness of administrative punishments, protecting the legitimate rights and interests of citizens, legal persons and other
organizations and safeguarding the public interest and economic order, the present Measures are formulated in accordance with the
Law of People’s Republic of China on Administrative Penalty.

Article 2

The present Measures shall apply to the imposition of administrative punishments by the Ministry of Commerce.

Article 3

The “administrative punishments” as mentioned in the present Measures refers to the disciplinary punishments imposed by the Ministry
of Commerce in accordance with the provisions of laws, administrative regulations and rules, on any citizen, legal person, or any
other organization in violation of the administration order.

Article 4

The principals of justness and openness shall be followed in the imposition of administrative punishments so as to ensure the rights
of citizens, legal persons or other organizations to state their cases, to defend themselves, to request hearings and to apply for
administrative reconsideration or administrative litigation.

Article 5

Any administrative punishment imposed by the Ministry of Commerce shall be based on laws, administrative regulations and rules and
shall be implemented in compliance with the legal procedure.

Article 6

Administrative punishments shall be imposed within the prescribed limits of functions and powers of the Ministry of Commerce. No affiliated
organization of the Ministry of Commerce (including instrumentalities, all accredited representatives’ offices, public institutions
directly under administration, etc.) may impose any administrative punishment in its own name.

The Ministry of Commerce may not entrust any organization as prescribed in Article 19 of the Law on Administrative Penalty to impose
any administrative punishment if there is no such provision in any law, administrative regulation or rule.

Article 7

The Ministry of Commerce shall adopt a system that can integrate case investigation with trial for such administrative punishments
as warnings and fines of no more than 30,000 Yuan RMB (hereinafter referred to as minor administrative punishments).

The Ministry of Commerce shall adopt a system that can separate case investigation from trial for any administrative punishment except
those as mentioned in the first paragraph (hereinafter referred to as serious administrative punishments).

Article 8

For any case involves administrative punishment to be imposed by the Ministry of Commerce, the investigation organ shall be the working
department involved in the case. The said working department, if necessary, may investigate the case in collaboration with other
departments concerned.

Article 9

Where any department of the Ministry of Commerce finds any act of any citizen, legal person or any other organization in violation
with the administration order, the investigation shall be started in a timely manner.

Article 10

Where a minor administrative punishment is to be imposed after the conclusion of the investigation, the investigation organ shall,
in accordance with the provisions of Article 31 of the Law on Administrative Penalty, inform in writing the parties concerned of
the fact, reason and basis of the administrative punishment and shall notify them of the right to state their cases and the right
to defend themselves.

Where any party concerned requests to make statements or to defend himself, the request shall be set forth within 3 days from receipt
of the written notice. The investigation organ shall fully attend to the opinion of the party concerned and re-examine the relevant
matters concerned.

Article 11

If the investigation organ has re-examined the statements and defense of the parties concerned, and comes to the conclusion that a
minor administrative punishment shall be imposed, it shall make an Administrative Punishment Decision and shall, after soliciting
the opinions of the institution of legal affairs of the Ministry of Commerce, report it to the relevant leaders of the Ministry.

Article 12

In the process of soliciting opinions as prescribed in Article 11 , if the institution of legal affairs deems that a serious administrative
punishment shall be imposed, the investigation organ shall handle the matter according to provisions of Article 13 of the present
Measures.

Article 13

Where a serious administrative punishment is to be imposed after conclusion of the investigation, the investigation organ shall write
a Termination Report for Case Investigation, which shall be transferred to the Administrative Punishment Committee of the Ministry
of Commerce along with all the materials of the case.

The real situation, investigation process, relevant evidences of the case and the laws and regulations violated shall be elaborated
in the Termination Report for Case Investigation, and a preliminary opinion of the treatment of the case and the basis thereof shall
also be included.

Article 14

The Administrative Punishment Committee established by the Ministry of Commerce functions as the trial authority for cases that involves
serious administrative punishments to be imposed by the Ministry of Commerce. The Administrative Punishment Committee shall try the
cases by way of holding hearings or trial meetings, etc.

The institution of legal affairs of the Ministry of Commerce is the working body of the Administrative Punishment Committee, which
shall take charge of organizing and arranging trial meetings and hearings of the Administrative Punishment Committee, preparing relevant
legal documents and undertaking the routine work of the Administrative Punishment Committee.

Article 15

After the Termination Report for Case Investigation and the case materials are transferred to the Administrative Punishment Committee,
the institution of legal affairs shall conduct a preliminary examination.

Article 16

Where the institution of legal affairs deems that some specific facts are ambiguous in the case, it may demand an explanation from
the investigation organ.

The institution of legal affairs, when necessary, may directly investigate into relevant entities and individuals to find out the
truth.

Article 17

Where the institution of legal affairs, upon examination, deems that the facts in the case are ambiguous or the evidences are not
sufficient, it may remand the case to the investigation organ for supplementary investigation.

Article 18

Where the institution of legal affairs, upon examination, deems that the major fact therein is clear and the evidences are sufficient,
it shall put forward a preliminary opinion for treatment according to law. If any administrative punishment is to be imposed, it
shall, in accordance with the provisions of Article 31 of the Law on Administrative Penalty, inform in writing the parties concerned
of the fact, reason and basis of the administrative punishment to be imposed, and notify them of the right to make statements and
the right to defend themselves according to law.

If any party concerned requests to make statement or defense, the request shall be set forth within 3 days from receipt of the written
notice. The institute of legal affairs shall fully attend to the opinions of the party concerned and re-examine the case.

Article 19

Before making any decision on the administrative punishment by imposing a larger amount of fine, ordering the suspension of production
or business, or by revoking any permit or license, the Ministry of Commerce shall notify in writing the parties concerned of the
right to request for hearing.

Article 20

Where any party concerned requests for holding a hearing, the Administrative Punishment Committee of the Ministry of Commerce shall
arrange the hearing in accordance with the provisions of Section III, Chapter V of the Law on Administrative Penalty.

Article 21

After re-examination or hearing, the institution of legal affairs shall submit all the case materials to the Administrative Punishment
Committee, which shall try the case in form of a trial meeting.

Article 22

The Administrative Punishment Committee shall examine the following matters of a case:

(1)

Whether or not the facts of illegality are clear;

(2)

Whether or not the evidences are conclusive;

(3)

Whether or not it is in compliance with the legal procedure;

(4)

Whether or not the statements and defending explanations of the parties concerned are well-grounded;

(5)

Which law or regulation shall apply;

(6)

The category and extent of punishment.

Article 23

Through collective discussions and sufficient negotiations, the Administrative Punishment Committee shall put forward the following
opinions for treatment in light of different circumstances of the cases concerned:

(1)

Whoever is suspected of constituting a crime shall be reported to the competent leader of the Ministry by the investigation organ
and, upon the approval thereof, be transferred to the judicial body;

(2)

Where the facts are not deemed as illegal, no administrative punishment may be imposed;

(3)

Where the illegal act is venial and may be exempted from punishment according to law, no administrative punishment may be imposed.

(4)

Where the illegal act shall be subject to administrative punishment, the institution of legal affairs shall, in light of the trial
opinions of the Administrative Punishment Committee, make an Administrative Punishment Decision, and report it to the competent leader
of the Ministry for approval.

Article 24

After the Administrative punishment Decision is made, the investigation organ shall, in accordance with the provisions of Article
40 of the Law on Administrative Penalty and Section II, Chapter VII of the Civil Procedural Law, deliver it to the parties concerned
on the spot, or serve it on the parties concerned or on the agent thereof within 7 days since the date when the Decision is made.
The investigation organ shall keep the return receipt of service, and file all after the conclusion of the case.

The addressee shall give a clear indication of the date of receipt on the return receipt of service and affix his signature or seal
on it. The date of receipt indicated by the addressee shall be the service date. For the service by way of mail, the service date
shall be the date of receipt as indicated on the registered return receipt.

Article 25

The parties concerned shall carry out the administrative punishment decision within the time limit as specified in the Administrative
Punishment Decision. In case anyone fails to carry out the administrative punishment decision within the prescribed period, the Ministry
of Commerce may take the measures prescribed in Article 15 of the Law on Administrative Penalty for enforcement.

Article 26

Where the Ministry of Commerce implements administrative punishments by imposing fines and confiscating illegal gains, it shall adopt
a system of separation of fines from collections. The fines and confiscated illegal gains shall be input into the special account
for fines and confiscated money as opened by the Ministry of commerce in the fine-collection organization. The fines and confiscated
money shall all be turned over to the State Treasury.

Article 27

Where the parties concerned truly have financial difficulties and need to defer the payment of fines or to pay them by installments,
they shall, before the payment date as prescribed in the Administrative Punishment Decision, file an application with the investigation
organ, with related certification materials (including financial reports) enclosed.

Article 28

The investigation organ shall, after receipt of an application, deliberate it in collaboration with the institution of legal affairs
of the Ministry of Commerce, put forward opinions, report it to the competent leader of the Ministry and, upon the approval thereof,
make a Reply to the Deferment of Payment or Payment by Installments.

Article 29

Where the parties concerned are approved to defer the payment of fines or pay them by installments, they shall make the payment within
the specific period as prescribed in the Reply to the Deferment of Payment or Payment by Installments, and shall not apply again
for further deferring payment or paying by installments.

Where the parties concerned fail to gain the approval, they shall pay the fines within the specific period as prescribed in the Reply
to the Deferment of Payment or Payment by Installments.

Article 30

After the implementation of administrative punishment decision is concluded, the investigation organ shall file the case materials
in a timely manner. The materials to be archived shall mainly include such case-related materials as the Termination Report for Case
Investigation, the pre-notification of administrative punishment, the materials of statements and explanations of the parties concerned,
the notes of hearings, the Administrative Punishment Decision, the return receipt of service and the related evidentiary materials.

Article 31

The Administrative Punishment Decision shall be made public on the website of the Ministry of Commerce for public inquiry, unless
any national secret, business secret, or individual privacy is involved.

Article 32

The present Measures shall not apply to the administrative punishment for the personnel in the instrumentalities of the Ministry as
imposed by the Ministry of Commerce, or any other decision on personnel treatment.

Article 33

The power to interpret the present Measures shall be vested in the Ministry of Commerce.

Article 34

The present Measures shall go into effect as of March 1, 2005.



 
the Ministry of Commerce
2005-01-07

 






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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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