DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON RATIFYING THE TREATY OF GOOD-NEIGHBORLINESS AND FRIENDLY COOPERATION BETWEEN THE PEOPLE’S REPUBLIC OF CHINA AND THE ISLAMIC REPUBLIC OF PAKISTAN

The National People’s Congress Of The People’s Republic Of China

Decision of the Standing Committee of the National People’s Congress on Ratifying the Treaty of Good-Neighborliness and Friendly Cooperation
between the People’s Republic of China and the Islamic Republic of Pakistan

August 28, 2005

The 17th Session of the Standing Committee of the Tenth National People’s Congress has decided to ratify the Treaty of Good-Neighborliness
and Friendly Cooperation between the People’s Republic of China and the Islamic Republic of Pakistan, which was signed by Wen Jiabao,
Premier of the State Council, on behalf of the People’s Republic of China in Islamabad on April 5, 2005.

The National People’s Congress Of The People’s Republic Of China
2005-08-28

NOTICE OF THE STATE ADMINISTRATION OF TAXATION, THE MINISTRY OF FINANCE AND THE MINISTRY OF STATE LAND AND RESOURCES ABOUT STRENGTHENING THE ADMINISTRATION OF LAND TAX COLLECTION

2005070120050701the State Administration of Taxation, the Ministry of Finance, the Ministry of State Land and Resourcesepdf/e04429.pdfE61, Nland, tax, basic land pricee04429Notice of the State Administration of Taxation, the Ministry of Finance and the Ministry of State Land and Resources about Strengthening
the Administration of Land Tax CollectionThe departments (bureaus) of finance, the bureaus of local taxes and the land resources departments (bureaus) of all provinces, autonomous
regions, municipalities directly under the Central Government and cities specifically designated in the state plan, Yangzhou Taxation
Institute, the Bureau of state land and resources of Xinjiang Production and Construction Corps,In order to carry out the guidelines and policies of the State Council about strengthening and improving the macro-control, further
strengthen the administration of land tax collection (including urban and township land use tax, land value-added tax, deed tax and
tax on occupation of cultivated land, similarly hereinafter), bring into full play the adjustment role of taxation on economic activities,
promote the economic and intensive utilization of land, enhance cooperation of departments, we hereby make the following notice on
relevant issues concerned,1.The local tax, finance and the administrative departments of land resources at various levels shall earnestly implemented the State
laws and regulations and policies governing land tax collection and land administration, jointly study with relevant departments
about the methods and measures of strengthening the land tax collection, communicate with each other about information by various
means of information sharing, reporting, joint work and conference etc., so as to promote the cooperation and coordination between
relevant departments. Local bureaus of tax and finance shall actively contact the administrative department of the state land and
resources in that area, actively study the measures of strengthening tax collection, ways of information sharing and methods of operation
and coordination.2.Administrative departments of state land and resources at all levels shall provide existing materials of cadastre and relevant land
price, including materials of right-holder’s name, conditions of land ownership, land grade and price etc., facilitate the tax departments’
acquisition of conditions about owner and usage of land, so as to promote the administration of land tax collection.With respect to the land obtained by means of requisition, grant, and transfer as well as renting land use right or altering land
registration, administrative departments of state land and resources shall notify the local tax and finance departments of relevant
information in time after handling the land-use procedures. The materials of cadastre and relevant land rice obtained from administrative
departments of state land and resources may only be used for the purpose of taxation by local tax and finance departments at various
levels. Local tax and finance departments at various levels are responsible to keep secret as required by administrative departments
of state land and resources.Local departments of tax and finance at all levels shall make full use of materials of cadastre and relevant land price, so as to
promote the administration of land tax collection. The archives and database of land tax sources shall be established and improved
and the information in tax source registration archives and land tax database shall be updated in time according to the changes.
Comparison between the relevant information such as cadastre obtained from administrative departments of state land and resources
and the relevant information of real estate tax collection shall be conducted regularly, so as to find out the land whose tax fails
to be collected, analyze the existing problems in tax collection and the causes, submit opinions and solutions, and further regulate
the measures of land tax collection, finally reach the goal of “fully and extensively tax every land that is supposed to be”.3.If finding out the case that taxpayer fails to handle land use procedure or land registration during tax collection, local tax and
finance departments at various levels shall inform the administrative department of state land and resources in that area of the
relevant information in time, for the convenience of strengthening the administration of land by departments of state land and resources.Departments of state land and resources at all levels shall handle the procedure of land registration after checking the certificate
of tax payment (or tax reduction or exemption) issued by taxpayer in accordance with the Provisional Regulations of The People’s
Republic of China on Deed Tax, the Provisional Regulations of The People’s Republic of China on Land Appreciation Tax. With respect
to those who didn’t issue the certificate of tax payment (or tax reduction or exemption), no relevant procedures shall be handled.
After the land registration procedure is finished, certificate of tax payment (or tax reduction or exemption) shall be filed with
materials of ownership registration for reference.4.For the convenience of taxpayer, local departments of tax and finance and administrative departments of state land and resources at
all levels shall actively negotiate with each other, create conditions and establish the service windows of tax collection in places
of land registration and places of examination and approval.5.uring checking conditions of used land and investigating illegal cases concerning land, administrative departments of state land and
resources at all levels shall, in addition to handling the cases in accordance with relevant provisions, verify the tax payment (or
tax reduction or exemption) certificates of taxpayers when finding out those who illegally transfer (grant) land. With respect to
those who can’t issue the certificate of tax payment (or tax reduction or exemption), the relevant information shall be reported
in time to the local departments of tax and finance. The basic work such as dynamic monitor to evaluation of land price and confirmation
as well as update of basic land price shall be earnestly done well; the transaction of land market and tax-related evaluation shall
be regulated, so as to prevent national tax evasion. Departments of finance shall actively cooperate with administrative departments
of state land and resources in carrying out inspection concerning land administration.6Local tax and finance departments at all levels shall make full use of the existing achievements, made by administrative departments
of state land and resources, of defining the level and grade about urban and township land as well as the basic land price, rationally
divide and adjust the level of urban and township land use tax and the standard of the amount of tax, bring into better play the
adjustment role of taxation on economic activities and land proceeds. Great support shall be given to administrative departments
of state land and resources for the work of defining the level and grade of land and updating the basic land price, and existing
tax source registration files and relevant information about real property values in tax source database shall be provided in time.T, in accordance with the materials provided by administrative departments of state land and resource on land-grading, study and analyze
the conditions of defining level and grade of urban and township land use tax and fixing applicable amount of tax, and then report
to the people’s government at provincial level for approval. With the approval of the people’s government at the level of the province,
the department of local tax at the level of province shall conduct comprehensive balance of the tax amount standards of cities, towns
and counties, so that the defining level and grade of urban and township land use tax and the fixed standard of tax amount is able
to objectively reflect the differences of land price and proceeds among all regions.All local tax departments at the level of city, town and county shall study and analyze, in accordance with the defining level and
grade materials provided by administrative departments of state land and resources, the conditions of defining level and grade of
urban and township land use tax and applicable tax amount. Timely adjustments, subject to authority limits of tax administration,
shall be done to those whose level and grade was irrationally defined or those whose amount of urban and township land use tax is
relatively low.7.With respect to the additional expenditure used through the cooperation from administrative departments of state land and resources,
necessary financial support shall be provided by local departments of finance.8.All local departments of tax and finance and administrative departments of state land and resources shall, taking local situation
into consideration, negotiate with each other, jointly study and work out specific measures of carrying out this notice and submit
copies to the State Administration of Taxation, the Ministry of Finance and the Ministry of State Land and Resources.the State Administration of Taxationthe Ministry of Financethe Ministry of State land and ResourcesJuly 1, 2005

the State Administration of Taxation, the Ministry of Finance, the Ministry of State Land and Resources
2005-07-01

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES CONCERNING THE FOREIGN EXCHANGE ADMINISTRATION OF OVERSEAS INVESTMENT IN BORDER AREAS

State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Foreign Exchange Administration of Overseas
Investment in Border Areas

Hui Fa [2005] No.14

The branches and offices of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, municipalities
directly under the Central Government, as well as the SAFE branches of municipalities of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

For the purpose of further implementing the development strategy of “going out” and promoting foreign trade and economic relations
with neighboring countries, relevant issues concerning the foreign exchange administration of overseas investment in border areas
are hereby notified as follows:

Border areas as used herein shall refer to such areas as prefecture-level cities and nationality autonomous prefectures, which are
situated within the Chinese inland boundary and border on neighboring countries.

Overseas investment in border areas as mentioned herein shall refer to the establishment of various enterprises or the purchase and
the holding of shares in neighboring countries by enterprises, corporations or other economic organizations (including individual
households) (hereinafter referred to as investment subjects in border areas) registered in border areas of our country to engage
in production and operating activities.

Relevant branches of the SAFE may, within limits of their own authority, extend the authority vested with central sub-branches of
foreign exchange located inside border areas within the jurisdiction of such branches in examining the source of foreign exchange
funds for overseas investment, and shall file a report on such authority with the SAFE for record.

For projects funded by investment subjects in border areas by means of utilizing subjects’ own foreign exchange or domestic foreign
exchange loans or purchasing foreign exchange, central sub-branches of foreign exchange located inside border areas may, within the
scope of the aforesaid authority, directly provide opinions for the examination of the source of foreign exchange funds.

Overseas investment in border areas shall go through the procedure of overseas investment registration in accordance with pertinent
regulations for the administration of overseas investment.

Investment subjects in border areas, if contributing their investment in RMB, may go through the formalities of overseas investment
registration with the SAFE branches where such subjects reside on presentation of materials laid down in Article 4 hereof.

Where overseas investment (including the overseas investment failing to undergo both the examination of the source of foreign exchange
funds for overseas investment and the registration of foreign exchange for overseas investment, and another kind of overseas investment
having undergone the examination of the source of foreign exchange funds for overseas investment but failing to undergo the registration
of foreign exchange for overseas investment) in border areas has taken place prior to the entry into force of this Circular, subjects
of such overseas investment may present the following materials to SAFE branches where such subjects are located for making up the
registration formality of foreign exchange for overseas investment with such branches.

(1)

application filed by investment subjects in border areas in terms of making up registration (including date and place when and where
overseas investment enterprises were established, their operating status and types);

(2)

materials attesting the registration by enterprises having made investment abroad with administrative departments for investment (or
for industry and commerce) in countries where such enterprises are located;

(3)

overseas enterprises’ balance sheets of the past year which have been examined (it is not necessary for investment subjects in border
areas that are individual households to provide the sheet.);

(4)

contracts of joint or cooperative ventures or articles of association thereof, all of which are necessary to be separately provided
by overseas joint or cooperative ventures; and

(5)

other materials required by the SAFE.

Should investment subjects in border areas make their investment in kinds, they shall, after the contribution has been made in investment
abroad in the form of materials, handle the formalities of balance verification and writing-off of no export proceeds in foreign
exchange with SAFE branches, upon the strength of presenting instruments for verification and writing-off of the export proceeds
in foreign exchange, customs declaration bills for export goods and the original of the Certificate of the Registration of Foreign
Exchange for Overseas Investment as well as the photocopy thereof. Such branches shall, upon processing the verification and writing-off
formality for enterprises, clearly write down on the Certificate of the Registration of Foreign Exchange for Overseas Investment
the actual amount, currency and date in respect of the verification and writing-off.

SAFE branches located in border areas shall give more publicity to relevant regulations and policies for the administration of overseas
investment, and actively encourage enterprises to contribute investment abroad subject to related provisions.

The present Circular shall come into effect as of April 1, 2005.

State Administration of Foreign Exchange

March 3, 2005

State Administration of Foreign Exchange
2005-03-03

MEASURES FOR THE QUARANTINE SUPERVISION AND ADMINISTRATION OF WOODEN PACKAGES OF IMPORTED GOODS

General Administration of Quality Supervision, Inspection and Quarantine

Order of the General Administration of Quality Supervision, Inspection and Quarantine

No.84

The Measures for the Quarantine Supervision and Administration of Wooden Packages of Imported Goods, which were deliberated and adopted
at the executive meeting of the General Administration of Quality Supervision, Inspection and Quarantine on December 31, 2005, are
hereby promulgated, and shall come into force as of January 1, 2006.

Li Changjiang, General Director of General Administration of Quality Supervision, Inspection and Quarantine

December 31, 2005

Measures for the Quarantine Supervision and Administration of Wooden Packages of Imported Goods

Article 1

These Measures are formulated for regulating the quarantine supervision and administration of wooden packages of imported goods,
preventing harmful forest organism entering into China along with the wooden packages of imported goods, protecting the forests and
ecological environment of China and facilitating the import and export of goods in accordance with the Law of the People’s Republic
of China on the Entry and Exit Animal and Plant Quarantine.

Article 2

The “wooden packages” as mentioned in these Measures refers to the wooden materials used for carrying, packing, matting, supporting
or fastening goods, such as wooden cases, wooden crates, wooden pallets, wooden frames, wooden casks (except the oak casks for containing
the wine), wooden shafts, wooden wedges, wooden pads, crossties and wooden linings, etc.

The “wooden packages” as mentioned in these Measures excludes the artificial composed wooden packaging materials, or the wooden packing
materials which are deeply processed by heating or pressing, etc. (such as veneers, flakeboards or fiberboards, etc.), and the revolved
cut cores from wooden sheets, scobs, wood-wools, wooden shavings, as well as the wooden materials which are 6mm thick or less.

Article 3

The General Administration of Quality Supervision, Inspection and Quarantine (hereinafter referred to as the GAQSIQ) shall be uniformly
responsible for the quarantine supervision and administration of wooden packages of imported goods throughout the country.

The entry and exit inspection and quarantine institutions established by the GAQSIQ in all the regions (hereinafter referred to as
the inspection and quarantine institutions) shall be responsible for the quarantine supervision and administration of wooden packages
of imported goods in their respective regions.

Article 4

The wooden packages used for imported goods shall be, under the surveillance of the competent quarantine department of the export
country or region and according to the requirement of International Plant Protection Convention (hereinafter referred to as IPPC),
subject to harm-elimination treatment and be affixed with IPPC special marks. The method of harm-elimination treatment and special
marks shall be accord with those as announced by the GAQSIQ.

Article 5

Where the wooden packages are used for imported goods, the consignor thereof or his agent shall report to the inspection and quarantine
institution for inspection. The inspection and quarantine institution shall handle them according to the following circumstances:

(1)

The wooden packages affixed with IPPC special marks shall be subject to quarantine by selective examination according to the provisions,
and be immediately discharged if no living harmful organism is found; or be carried out the harm-elimination treatment by the
consignor thereof or his agent under the supervision if any living harmful organism is found;

(2)

The wooden packages that are not affixed with IPPC special marks shall be subject to harm-elimination treatment or be destroyed under
the surveillance of the inspection and quarantine institution; or

(3)

If the IPPC special mark can’t be confirmed whether the wooden packages are affixed with at the time of reporting for inspection,
the inspection and quarantine institution shall carry out the quarantine by selective examination according to the provisions. If
the wooden packages are verified as having been affixed with IPPC special marks upon selective inspection and no living harmful
organism is found, they shall be discharged. If any living harmful organism is found, the consignor thereof or his agent shall carry
out the harm-elimination treatment of wooden packages under the supervision. And if the wooden packages have not been affixed with
IPPC special marks upon selective inspection, they shall be subject to harm-elimination treatment or be destroyed.

Article 6

The inspection and quarantine institution may carry out the emphasized quarantine by selective inspection to the imported goods for
which no report for inspection is made and the wooden packages are always used, and it shall handle them in light of the following
circumstances when carrying out selective inspection:

(1)

Immediately discharging them if it is verified upon selective inspection that no wooden package is used; or

(2)

Handling them according to Article 5 of these Measures and giving them administrative punishment according to the relevant provisions
if it is found upon selective inspection that the wooden packages are used.

Article 7

Where the situation of lawbreaking of wooden packages is serious, , the inspection and quarantine institution shall, after reporting
it to the GAQSIQ and getting the approval, supervise the consignor thereof or his agent to return the wooden packages together
with the goods.

Article 8

When an on-the-spot quarantine is conducted on the wooden packages, the emphasis shall be put on whether the long-horned beetles,
white ants, clothes moths, horntails, buprestidae, curculionoidea or other borer and moth pests are carried. The cut open inspection
shall be carried out for any sign harmed by insect on the wooden packages, and a sample shall be obtained and sent to the laboratory
for inspection when there is any disease symptom of suspected coniferae material eelworm,.

Article 9

Where it is necessary to transport the goods to a designated place for quarantine or harm-elimination treatment, the consignor thereof
or his agent shall take necessary measures to prevent the spreading of epidemics as required by the inspection and quarantine institution.
As to the goods transported by containers, the consignor thereof or his agent shall open the containers under the surveillance of
the inspection and quarantine personnel so as to prevent the transmitting and spreading of harmful organism.

As to the goods whose wooden packages shall be subject to the quarantine, except special circumstance, without the approval of the
inspection and quarantine institution, .the goods shall not be unloaded from transporting vehicles or be transported and the wooden
packages shall not be dismantled or abandoned.

Article 10

The bare wooden packages of cross-territory goods as well as the wooden packages of goods imported by batches shall be governed by
these Measures.

The dismantling of lining planks used for ships or planes entering into China from transporting vehicles shall be conducted according
to these Measures. If they are not dismantled from transporting vehicles, they shall be subject to the supervision and administration
of the inspection and quarantine institution, and be subject to harm-elimination treatment or be destroyed if any living harmful
organism is found during the course of supervision and administration.

Article 11

The inspection and quarantine institution shall strengthen the information communication with the competent departments for ports,
customs, transportation and freight forwarding, obtain the information on goods and packages through network connection, electronic
surveillance or examination of the list of goods, etc., and shall make a decision on whether or not to carry out the selective inspection
in light of the specific conditions.

Article 12

The inspection and quarantine institution shall, in light of the quarantine conditions, do a good job in the work relating to the
good-faith records of the importers, exporters and enterprises of wooden packaging marks in the export countries or regions, appraise
the situation of good faith thereof and carry out the graded management. As to the enterprises with good faith, the inspection and
quarantine institution can conduct the quarantine and adopt other convenient measures at the factories or other designated places
after reducing the proportion of selective inspection and making customs clearance in advance. As to the enterprises with bad faith,
the inspection and quarantine institution can adopt the measures of increasing the proportion of selective inspection, etc.. Where
problems occur time after time, the GAQSIQ may circulate a notice to the export country or region, and suspend the import of wooden
packages produced by the relevant mark-affixing enterprises.

Article 13

The wooden packages for the goods that are imported from Hong Kong or Macao Special Administrative Areas (hereinafter referred to
as Hong Kong or Macao) or Taiwan shall be managed by reference to these Measures.

Article 14

In case the wooden packages for the goods that are imported via Hong Kong or Macao are not in line with Article 4 of these Measures,
the consignor thereof or his agent may apply to Hong Kong or Macao inspection and quarantine institution as verified by the GAQSIQ
to carry out harm-elimination treatment and affix IPPC special marks or issue a certificate. When the above-mentioned goods are imported
into China, the inspection and quarantine institution shall conduct selective inspection or quarantine according to these Measures.

Article 15

In order to facilitate the customs clearance, the consignor or his agent of the goods that are imported via Hong Kong or Macao and
for which the wooden packages are not used may apply to Hong Kong or Macao inspection and quarantine institution as verified by the
GAQSIQ to verify the fact that no wooden package is used and issue a certificate. When the above-mentioned goods are imported into
China, the inspection and quarantine institution shall examine the certificates and may not inspect the wooden packages any more,
or may carry out selective inspection where necessary.

Article 16

The wooden packages for the goods carried or mailed by passengers that have not been affixed with IPPC special marks can be permitted
to enter into China if no living harmful organism is found upon quarantine, or shall be subject to the harm-elimination treatment
if any living harmful organism is found.

Article 17

In case of any of the following circumstances, the inspection and quarantine institution shall give administrative sanctions according
to the relevant provisions in the Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine and the
regulation on the implementation thereof:

(1)

No report for inspection is made to the inspection and quarantine institution according to the provisions;

(2)

A report for inspection is not in line with the actual situation;

(3)

The goods with wooden packages are unloaded from transporting vehicles or are transported without approval of the inspection and quarantine
institution; or

(4)

Any other violation of the Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine or the regulation
on the implementation thereof.

Article 18

In case of any of the following circumstances, the inspection and quarantine institution shall give a fine of 30,000 yuan or less:

(1)

The wooden packages are illegally dismantled or abandoned without approval of the inspection and quarantine institution;

(2)

The wooden packages are not subject to harm-elimination treatment or destroyed according to the requirements of the inspection and
quarantine institution; or

(3)

The used IPPC special marks are forged, altered or embezzled .

Article 19

Where an inspection and quarantine institution as verified by the GAQSIQ violates the relevant laws, regulations or these Measures,
the GAQSIQ shall order it to make correction within a time limit or abolish the verification in light of the severity of the circumstances.

Article 20

An inspection and quarantine functionary who seeking for private interests, resorting to frauds, misusing his authorities or neglecting
his duties, and violating the relevant laws, regulations or these Measures shall be given an administrative sanction; or shall be
subject to criminal liabilities if the circumstance is serious and a crime is constituted.

Article 21

The power to interpret these Measures shall remain with the GAQSIQ.

Article 22

These Measures shall come into force as of January 1, 2006. If the relevant rules and regulative documents promulgated prior to the
implementation of these Measures are conflicting with these Measures, the latter shall prevail.

General Administration of Quality Supervision, Inspection and Quarantine
2005-12-31

CIRCULAR OF STATE ADMINISTRATION OF TAXATION ON STRENGTHENING THE ADMINISTRATION OF TAX REFUND (EXEMPTION) FOR EXPORT OF PRODUCTS WITH GOLD INGREDIENT

State Administration of Taxation

Circular of State Administration of Taxation on Strengthening the Administration of Tax Refund (Exemption) for Export of Products
with Gold Ingredient

Guo Shui Han [2005] No. 1211

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

Since the late 2004, export of products with gold ingredient have achieved exceptionally fast growth. In order to prevent frauds of
tax refunds for export, the State Administration of Taxation has successively issued several documents, such as the Circular of the
State Administration of Taxation on Clarifying Some Policies Concerning Tax Refund (Exemption) for Export of Products with Gold Ingredient
(Guo Shui Fa2005No.59) and the Circular of State Administration of Taxation on Relevant Tax Policies for Export of Products with
Gold Ingredient (Guo Shui Fa2005No.125), to appropriately adjust some policies on tax refund (exemption) for export of products
with gold ingredient, and deploy investigation within areas where more products with gold ingredients are exported. For the purpose
of further strengthening the administration of tax refund (exemption) for export of products with gold ingredient and taking strict
precautions against tax frauds, upon deliberation, related issues are hereby released as follows:

For products with gold ingredient exported by export enterprises, it shall be required to go through tax exemption or refund formalities
in all localities subject to the document Guo Shui Fa 2005No.125. Where products with gold ingredient are exported prior to May
1, 2005, tax authorities of places where export enterprises are located must, after conducting an investigation by letter with tax
authorities of commodity origins, and carefully learning about whether irregularities have occurred in production and operation
purchases of raw materials and tax payment affairs of supplier enterprises in recent years, approve tax refund (exemption) for such
export of products with gold ingredient as being eliminated from suspicion of tax frauds; and shall continue the investigation for
sure if facts are not clear thus unable to eliminate the suspicion of tax frauds. Before facts are clear, the handling of tax refund
(exemption) formalities shall be suspended; Where facts are impossible to be made clear or there is suspicion of tax frauds through
investigation, the handling of tax refund (exemption) formalities shall be forbidden. For products with gold ingredient exported
subsequent to May 1, 2005, it shall be required to go through tax exemption formalities in strict compliance with the document Guo
Shui Fa 2005No.125.

All localities shall from now on intensify macro-monitoring of tax refund (exemption) for exceptional growing export of products within
their jurisdiction, assess and analyze voluntarily export trend and impacts of such macro-monitoring upon tax policies concerning
tax refund (exemption) for export, find out problems, plug up loopholes and prevent the occurrence of tax fraud and other tax-related
cases.

State Administration of Taxation

December 20, 2005

State Administration of Taxation
2005-12-20

INTERIM MEASURES FOR THE ADMINISTRATION OF BUSINESS-STARTING INVESTMENT ENTERPRISES

Order of the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Finance, the Ministry
of Commerce, the People’s Bank of China, the State Administration of Taxation, the State Administration for Industry and Commerce,
China Banking Regulatory Commission, China Securities Regulatory Commission and the State Administration for Foreign Exchange

No. 39

In order to promote the development of business-starting investment enterprises, regulate their investment operations and encourage
them to make more investment into small and middle enterprises, especially the middle and small high and new technological enterprises,
in accordance with the Company Law of the People’s Republic of China, the Law of the People’s Republic of China on the Promotion
of Small and Middle Enterprises as well as in light of the functions of the relevant departments of the State Council, the Interim
Measures for the Administration of Business-Starting Investment Enterprises have been constituted, deliberated and adopted by the
National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Finance, Ministry of Commerce,
the People’s Bank of China, the State Administration of Taxation, the State Administration for Industry and Commerce, China Banking
Regulatory Commission, China Securities Regulatory Commission, and the State Administration for Foreign Exchange. Upon the approval
of the State Council, the present Measures are hereby promulgated and shall enter into force as of March 1, 2006.
The National Development and Reform Commission

The Ministry of Science and Technology

The Ministry of Finance

The Ministry of Commerce

The People’s Bank of China

The State Administration of Taxation

The State Administration for Industry and Commerce

China Banking Regulatory Commission

China Securities Regulatory Commission

The State Administration for Foreign Exchange

November 15, 2005

Interim Measures for the Administration of Business-Starting Investment Enterprises
Chapter I General Provisions

Article 1

In order to promote the development of business-starting investment enterprises, regulate their investment operations and encourage
them to invest in small and middle enterprises, especially the small and middle high and new technological enterprises, the present
Measures are formulated according to the Company Law of the People’s Republic of China, the Law of the People’s Republic of China
on the Promotion of Small and Middle Enterprises, and other laws and regulations.

Article 2

The term “business-starting investment enterprise” as mentioned in the present Measures refers to enterprise organizations which
are registered and established within the territory of the People’s Republic of China and mainly engage in business-starting investment
activities.

The term “business-starting investment” as mentioned in the preceding paragraph refers to stock right investments that are injected
into business-starting enterprises in expectation of capital gains mainly by way of stock right transfer after the invested business-starting
enterprise becomes mature or relatively mature.

The term “business-starting enterprise” refers to growing enterprises, which are registered and established within the territory of
the People’s Republic of China, and are in the process of establishment or re-establishment, excluding those enterprises that have
got listed in the open market.

Article 3

The state shall adopt archival filing management on business-starting investment enterprises. Any business-starting investment enterprise
that has completed the archival filing procedures according to the present Measures shall be subject to the supervision of the administrative
organ of business-starting investment enterprises, and those whose investment operations accord with the relevant provisions may
enjoy the policy support. Any business-starting investment enterprise that fails to complete the archival filing procedures according
to the present Measures shall not be subject to the supervision of the administrative organ of business-starting investment enterprises,
nor does it enjoy the policy support.

Article 4

The archival filing administrative departments for the business-starting investment enterprises are classified into two levels: the
administrative department of the State Council and the administrative departments of the provinces (including sub-provincial cities).
The administrative department of the State Council shall be the National Development and Reform Commission; the administrative departments
of provinces (sub-provincial cities)shall be determined by the people’s government at the same level, and they shall perform the
corresponding archival filing functions after having been archival filed at the administrative department of the State Council and
shall be subject to the guidance of the administrative department of the State Council in the management business of archival filing
of the business-starting investment enterprises.

Article 5

The Provisions on the Administration of Foreign-funded Business-Starting Investment Enterprises shall apply to foreign-funded business-starting
investment enterprises. Any lawfully established foreign-funded business-starting investment enterprise, whose investment operations
accords to the relevant conditions, may enjoy the relevant policy support granted to business-starting investment enterprises under
the present Measures.

Chapter II The Establishment and Archival Filing of Business-Starting Investment Enterprises

Article 6

The business-starting investment enterprise may be established in the form of a limited liability company, joint stock limited company
or any other enterprise organization as prescribed by law.

The business-starting investment enterprise established in the form of a company may consign another business-starting investment
enterprise or business-starting investment management consulting enterprise as its management consulting institution, whom shall
be responsible for its investment management business. The General Principles of the Civil Law of the People’s Republic of China,
the Contract Law of the People’s Republic of China and other relevant laws and regulations shall apply to the legal relationship
between the client and the agent.

Article 7

To apply for establishing a business-starting investment enterprise or business-starting investment management consulting enterprise,
the applicant shall be directly registered at the administrative department for industry and commerce according to law.

Article 8

The business-starting investment enterprise, that has been registered in the administrative department for industry and commerce
of the state, shall apply for the archival filing at the administrative department of the State Council.

The business-starting investment enterprise, which has been registered at the administrative department for industry and commerce
at the province level or below, shall apply for the archival filing at the local administrative department of the province (sub-provincial
city).

Article 9

To be archival filed at the administrative department, the business-starting investment enterprise shall possess the following conditions:

(1)

It has been registered at the administrative department for industry and commerce;

(2)

Its business scope accords with the provisions of Article 12 of the present Measures;

(3)

The amount of its actual capital contributions is not less than RMB 30 million Yuan or the amount of the initial payment of its capital
contributions is not less than RMB 10 million Yuan, and all investors make a commitment to pay the balance of actual capital contributions
in a sum of not less than RMB 30 million Yuan within 5 years after the registration;

(4)

The number of investors shall not exceed 200. As for a business-starting investment enterprise established in the form of a limited
liability company, the number of investors shall not exceed 50. The amount of investment made by a single investor into a business-starting
investment enterprise shall not be less than 1 million Yuan. All investors shall make investments in monetary form.

(5)

It shall have at least 3 senior managers who have two or more years of business-starting investment or relevant business experience
to take charge of the investment management. If it consign another business-starting investment enterprise or business-starting investment
management consulting enterprise as a management consulting institution to be responsible for its investment management business,
this management consulting institution shall have at least 3 senior managers who have 2 or more years of business-starting investment
or relevant business experience to take charge of the investment management.

The term “senior manager” as mentioned in the preceding paragraph refers to the managerial personnel who hold the position of vice
manager or the higher or equivalent positions.

Article 10

When go through the archival filing formalities at the administrative department, the business-starting investment enterprise shall
submit the following documents:

(1)

The legal documents that regulate the organizational procedures and acts of the business-starting investment enterprise such as the
articles of association, and etc.

(2)

The photocopies of the industrial and commercial registration documents and business license;

(3)

The name list of the investors, and the certificates on commitment to capital contributions and on the already paid capital contributions;
and

(4)

The name list and resumes of the senior managers.

If it consign a management consulting institution to take charge of the investment management business, it shall submit the following
documents besides those as listed above:

(1)

The legal documents that regulate the organizational procedures and the acts of the management consulting institution such as its
articles of association, and etc. ;

(2)

The photocopies of the industrial and commercial registration documents and the business license of the management consulting institution;

(3)

The name list and resume of the senior managers of the management consulting institution ; and

(4)

The agreement on the authorized management.

Article 11

After receiving an archival filing application of a business-starting investment enterprise, the administrative department shall,
within 5 working days, examine whether or not the archival filing application documents are complete, and shall decide whether or
not to accept the application. After accepting the application, it shall, within 20 working days, examine whether or not the applicant
meets the archival filing requirements and issue to it a notice of “Archival Filing Completed” or “Archival Filing Rejected” in written.
If the archival filing application is rejected, the reasons shall be stated in the written notice.

Chapter III The Investment Operations of Business-Starting Investment Enterprises

Article 12

The business scope of a business-starting investment enterprise is limited to:

(1)

business-starting investment operations;

(2)

acting as an agent in the business-starting investment business of other business-starting investment enterprises or individuals;

(3)

business-starting investment consulting services;

(4)

providing business-starting management services for business-starting enterprises; and

(5)

participating in the establishment of business-starting investment enterprises and business-starting investment management consulting
institutions.

Article 13

No business-starting investment enterprise mustn’t engage in any guarantee business or real estate business except for the purchase
of real estate for its own use.

Article 14

The business-starting investment enterprise may make foreign investments with all its assets, of which the investments to enterprises
shall be limited to the unlisted enterprises. However, after an unlisted enterprise has invested in gets listed, its non-transferred
shares as well as the allocated shares shall not be subject to this restriction. It can only deposit its other funds in a bank, or
use them to purchase government bonds or other securities with fixed proceeds.

Article 15

The business-starting investment enterprise may, by signing an investment agreement with the investment enterprise it invests in,
make investments into the unlisted enterprise by way of quasi stock rights such as its stock rights, preferred stocks, convertible
preferred stocks and etc..

Article 16

The investments made by a business-starting investment enterprise into a single enterprise shall not exceed 20% of the total assets
of the business-starting investment enterprise.

Article 17

The business-starting investment enterprise shall, in the articles of association, the agreement on authorized management and other
legal documents, specify the methods for the computation of management and operation fees, or the management consulting expenses
of the management consulting institution, and establish a management cost control mechanism.

Article 18

The business-starting investment enterprise may draw a certain proportion from the actual investment proceeds as the performance-based
remuneration to the managers or to the management consulting institution, and establish a performance incentive mechanism.

Article 19

The business-starting investment enterprise may determine a limited period of existence in advance, which shall not be less than
7 years.

Article 20

The business-starting investment enterprise may enhance its investment capacity by way of financing of creditor’s rights within the
prescribed scope of law.

Article 21

The business-starting investment enterprise shall, according to the relevant provisions of the state on enterprise financial and
accounting, establish and improve internal financial management system and accounting measures.

Chapter IV Policy Support to Business-Starting Investment Enterprises

Article 22

The state and local governments may establish business-starting investment guidance funds to support the establishment and development
of business-starting investment enterprises by way of holding their shares, providing financing guaranties and etc.. The concrete
management measures shall be formulated separately.

Article 23

The state shall adopt tax preferential policies to support the development of business-starting investment enterprises and induce
them to increase investments to small and middle enterprises, especially the small and middle high and new technological enterprises.
The concrete measures shall be separately formulated by the finance and taxation department of the State Council jointly with other
relevant departments.

Article 24

The business-starting investment enterprise may withdraw its investments by transfer of listed equities, transfer of equities by
agreement, buybacks of the invested enterprises or by other means. The relevant departments of the state shall actively advance the
construction of the multi-level system of capital market and improve the investment dropout mechanism for business-starting investment
enterprises.

Chapter V Supervision and Administration on Business-Starting Investment Enterprises

Article 25

The business-starting investment enterprise and its management consulting institution that have been archival filed at the administrative
department shall, according to the provisions of all the articles in Chapters II and III of the present Measures, conduct the investment
operations and shall be subject to the supervision and administration by the administrative department.

Article 26

The business-starting investment enterprise and its management consulting institution that have been archival filed at the administrative
department shall, within 4 months as of the end of each fiscal year, submit their annual financial statements and business reports
audited by certified public accountants to the administrative department, and shall report the significant events occurred during
the process of its investment operation.

The “significant event” as mentioned in the preceding paragraph refers to:

(1)

revisions to the articles of association and other important legal documents;

(2)

increase or decrease of the capital;

(3)

split-up or merger,

(4)

change of senior managers or management consulting institutions; or

(5)

liquidation and termination of business.

Article 27

The administrative department shall, within 5 months as of the end of each fiscal year, conduct an annual inspection on the business-starting
investment enterprise and its management consulting institution to determine whether or not it observes the provisions of all the
articles in Chapters II and III. Where necessary, it may, within the prescribed scope of the relevant articles of Chapters II and
III, irregularly conduct inspections on its investment operations.

To those who fails to conduct investment operations according to the provisions of all the articles in Chapters II and III of the
present Measures, the administrative department shall order it to make corrections within 30 working days. If it fails to make corrections,
its archival filing shall be canceled and from this day on, its new application made for archival filling during the next 3 years
shall be rejected.

Article 28

The administrative departments of all provinces (including sub-provincial cities)shall timely report the situation on the archival
filing of business-starting investment enterprises within their respective jurisdictions to the administrative department of the
State Council, and shall, within 6 months as of the end of each fiscal year, report the situation on the investment operations of
the business-starting investment enterprises that have been listed within the scope of archival filing administration.

Article 29

The administrative department of the State Council shall intensify the guidance to the administrative departments of all provinces
(including sub-provincial cities). To those who fails to implement the administrative responsibilities or fails to manage properly,
it shall propose it to make corrections. If bad consequences are caused, it shall propose it to investigate the relevant managers
liable for their negligence of duties.

Article 30

The business-starting investment industry associations shall, according to the present Measures, relevant laws, rules and regulations,
conduct self-disciplinary management on the business-starting investment enterprises and maintain the rights and interests of this
industry.

Chapter VI Supplementary Provisions

Article 31

The present Measures shall be interpreted by the National Development and Reform Commission jointly with other relevant departments.

Article 32

The present Measures shall enter into force as of March 1, 2006.

National Development and Reform CommissionMinistry of Science and TechnologyMinistry of Finance, Ministry of Commerce,
People’s Bank of China, State Administration of Taxation, State Administration for Industry and Commerce, China Banking Regulatory
Commission, China Securities Regulatory Commission and the State Administration for Foreign Exchange
2005-11-15

REPLY OF THE SUPREME PEOPLE’S COURT AND THE SUPREME PEOPLE’S PROCURATORATE ABOUT RELEVANT ISSUES OF HANDLING CRIMINAL CASES OF INFRINGING UPON COPYRIGHT CONCERNING AUDIO-VISUAL FIXATION

Supreme People’s Court, Supreme People’s Procuratorate

Announcement of the Supreme People’s Court and the Supreme People’s Procuratorate

Interpretation No.12 [2005] of the Supreme People’s Court

This announcement, which was adopted at the 1365th meeting of the Judicial Committee of the Supreme People’s Court on September 26,
2005, and the 39th meeting of the Tenth Procuratorial Committee of the Supreme People’s Procuratorate on September 30, 2005, is hereby
promulgated, and shall come into force on October 18, 2005.

Supreme People’s Court

Supreme People’s Procuratorate

October 13, 2005

Reply of the Supreme People’s Court and the Supreme People’s Procuratorate about Relevant Issues of Handling Criminal Cases of Infringing
upon Copyright concerning Audio-visual Fixation

The higher people’s courts and the people’s procuratorates of all provinces, autonomous regions, and municipalities directly under
the Central Government, military courts and the military procuratorates of the PLA, the Production and Construction Corps branch
of the Higher People’s Court of Xinjiang Uigur Autonomous Region and the people’s procuratorate of Xinjiang Production and Construction
Corps:

After the issuance of the Interpretation of the Supreme People’s Court and the Supreme People’s Procuratorate about Relevant Issues
of Handling Criminal Cases of Infringing upon Copyright concerning Audiovisual Works, some higher people’s courts and the people’s
procuratorates at provincial level have requested instructions about some relevant issues of handling criminal cases of infringing
upon copyright concerning audio-visual fixation. Upon deliberation, you are hereby given a reply as follows:

Aiming at making profits, the act of duplicating and distributing audiovisual works without the permission of the producers, quantity
standard is applicable to the item 2 paragraph 1 and the item 2 paragraph 2 of Article 5 respectively of Interpretation of the Supreme
People’s Court and the Supreme People’s Procuratorate concerning Some Issues on the Specific Application of Law for Handling Criminal
Cases of Infringement upon Intellectual Property Rights.

The act of disseminating the audiovisual works to the public without the permission of their producers through information network
shall be deemed as a “reproduction and distribution” as prescribed in the Item 3 of Article 217 of the Criminal Law.

Hereby replied.

Supreme People’s Court, Supreme People’s Procuratorate
2005-10-13

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON RATIFYING THE FRAMEWORK CONVENTION ON TOBACCO CONTROL OF THE WORLD HEALTH ORGANIZATION

The Standing Committee of the National People’s Congress

Decision of the Standing Committee of the National People’s Congress on Ratifying the Framework Convention on Tobacco Control of the
World Health Organization

Adopted on August 28, 2005

The 17th session of the Standing Committee of the Tenth National People’s Congress decides to ratify the Framework Convention on Tobacco
Control, which was adopted at the 56th conference of the World Health Organization on May 21, 2003, and simultaneously declares that
according to Article 16 of Paragraph 5 of the Framework Convention on Tobacco Control of the World Health Organization, any automatic
cigarette vending machine is prohibited from being used within the territory of the People’s Republic of China.

The Standing Committee of the National People’s Congress
2005-08-28

NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE OF THE TAXATION POLICIES FOR THE PILOT REFORM OF SHARE-TRADING

Ministry of Finance, State Administration of Taxation

Notice of the Ministry of Finance and the State Administration of Taxation on the Issue of the Taxation Policies for the Pilot Reform
of Share-trading

Cai Shui [2005] No.103

To the departments (bureaus) of public finance, the bureaus of state taxation and local taxation of all provinces, autonomous regions,
municipalities directly under the Central Government and cities under separate state planning, the Public Finance Bureau of Xinjiang
Production and Construction Corps, and the financial supervision commissioners’ offices of the Ministry of Finance stationed in all
provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning:

With a view to accelerating the development of the capital market and the entire circulation of stock market and promoting the smooth
implementation of the pilot reform of share-trading, the notice on the issue of the tax policies for the pilot reform of share-trading,
upon approval of the State Council, is notified as follows:

The stamp tax on the stock transfer, which occurs during the course of the pilot reform of share-trading when a non-circulation stock
shareholder makes payment of consideration to a circulation stock shareholder, shall be temporarily exempted.

II.

The enterprise income taxes and individual income taxes on the income of shares, cash, etc. paid by a non-circulation stock shareholder
to a circulation stock shareholder by way of payment consideration during the course of the pilot reform of share-trading shall be
temporarily exempted.

III.

The aforesaid provisions shall come into force as of the date of promulgation.

Ministry of Finance

State Administration of Taxation

June 13, 2005

Ministry of Finance, State Administration of Taxation
2005-06-13

MEASURES FOR THE ADMINISTRATION OF IMPORT OF AUTOMOBILE COMPONENTS AND PARTS FEATURING COMPLETE VEHICLES

the General Administration of Customs, the National Development and Reform Commission, the Ministry of Finance, the Ministry of Commerce

Order of the General Administration of Customs, the National Development and Reform Commission, the Ministry of Finance and the Ministry
of Commerce of the People’s Republic of China

No. 125

The Measures for the Administration of Import of Automobile Components and Parts Featuring Complete Vehicles, which were formulated
by the General Administration of Customs, the National Development and Reform Commission, the Ministry of Finance and the Ministry
of Commerce according to the Policies on Developing the Automobile Industry and other relevant provisions, are hereby promulgated
and shall come into force as of April 1, 2005.

The Director General of the General Administration of Customs

The Director of the National Development and Reform Commission

The Minister of the Ministry of Finance

he Minister of the Ministry of Commerce

February 28, 2005

Measures for the Administration of Import of Automobile Components and parts Featuring Complete Vehicles

Chapter I General Provisions

Article 1

For the purpose of regulating and strengthening the administration of import of automobile components and parts, and promoting the
healthy development of the automobile industry, the present Measures are formulated in accordance with relevant laws.

Article 2

The present Measures shall apply to the supervision and administration on the import of automobile components and parts featuring
complete vehicles, which are necessary for the manufacture of automobiles, of automobile manufacturing enterprises ratified or archived
by the relevant departments of the State.

Where an automobile manufacturing enterprise imports automobile components and parts on completely knocked down (CKD) or semi-knocked
down (SKD) basis, it may make declarations and pay duties to the Customs at its locality, which does not need to follow the present
Measures.

Article 3

Automobiles mentioned in the present Measures shall refer to power-driven vehicles of Class M and Class N prescribed in the “Classification
of Power-Driven Vehicles and Trailers” (GB/T15089-2001 the National Standards of the People’s Republic of China).

The power-driven vehicle of Class M shall refer to a power-driven vehicle that has at least 4 wheels and is used for carrying passengers;
the power-driven vehicle of Class N shall refer to a power-driven vehicle that has at least 4 wheels and is used for carrying cargo.

Article 4

The automobile assembly (system) mentioned in the present Measures shall include vehicle body (including cab) assembly, engine assembly,
transmission assembly, drive axle assembly, non-drive axle assembly, vehicle frame assembly, steering system, braking system, and
etc.

Article 5

The “Featuring complete vehicles” and “featuring assemblies (systems)” referred to as in the present Measures shall mean that the
imported automobile components and parts used by an automobile manufacturing enterprise bear the features of a complete vehicle when
they are assembled or the features of the assembly (system) when they are assembled.

Article 6

The General Administration of Customs, the National Development and Reform Commission (hereinafter referred to as the NDRC), the Ministry
of Commerce and the Ministry of Finance shall administer the import of automobile components and parts featuring complete vehicles
in accordance with the present Measures.

The General Administration of Customs, the NDRC, the Ministry of Commerce and the Ministry of Finance shall form a Leading Group for
Administration of the Import of Automobile Components and parts Featuring Complete Vehicles (hereinafter referred to as the Leading
Group). The Office of the Leading Group shall be set up at the General Administration of Customs, and be responsible for daily affairs
of the Leading Group. The National Special Center for the Verification of Complete Vehicle Features (hereinafter referred to as the
Verification Center) shall accept the entrustment of the General Administration of Customs to be responsible for verifying whether
or not certain imported components and parts bear the features of complete vehicles or assembly (system).

Chapter II Archival Administration

Article 7

Where an automobile manufacturing enterprise uses imported automobile components and parts to make automobiles for sale on domestic
markets, it shall, according to the present Measures, make a self-test on whether or not the imported components and parts used in
the vehicles bear the features of a complete vehicle. If they are determined to bear the features of a complete vehicle after the
self-test, the manufacturing enterprise shall, prior to the import of the automobile components and parts, submit the relevant types
of vehicles to the General Administration of Customs for archival purposes. The different vehicle types of a same automobile-manufacturing
enterprise shall be archived separately.

If the manufacturing enterprise believes that the foresaid components and parts do not bear the features of a complete vehicle after
the self-test, it shall apply to the General Administration of Customs for reexamination. The General Administration of Customs shall
entrust the Verification Center to make a simple reexamination or an on-spot reexamination. If they are found upon reexamination
to bear the features of a complete vehicle, the manufacturing enterprise shall conduct a supplementary archival filing; however,
if they are found upon reexamination not to bear the features of a complete vehicle, they do not need to be archived.

An automobile-manufacturing enterprise shall, when applying to the NDRC to be listed into the “Announcement of Road Power-Driven Vehicle
Manufacturing Enterprises and Products” or applying to the Ministry of Commerce for an automatic import license, provide the result
of self-test on the vehicle type involved; if the imported components and parts do not bear the features of a complete vehicle, it
shall provide the reexamination opinions of the General Administration of Customs in addition.

The NDRC shall mark the words of “complete vehicle features” in the “Announcement of Road Power-Driven Vehicle Manufacturing Enterprises
and Products” for the vehicle types produced with the imported components and parts and bearing the features of a complete vehicle,
while the Ministry of Commerce shall mark the words of “complete vehicle features” on the automatic import license for the imported
components and parts featuring complete vehicles.

Article 8

The archived vehicle types shall be the products which have been listed into the “Announcement of Road Power-Driven Vehicle Manufacturing
Enterprises and Products” of the NDRC.

Article 9

When applying for archiving, the manufacturing enterprise shall provide the following materials:

(1)

basic information of the enterprise;

(2)

the annual manufacture plan of the archived vehicle types;

(3)

a list on the classification of the components and parts of the archived vehicle types and the price ratios thereof; the total price
of the archived vehicle types, the price of domestically produced components and parts, and the price of imported components and
parts (calculated on the basis of tax-free prices);

(4)

a list of domestic and foreign suppliers of all components and parts purchased for producing the archived vehicle types, and a list
of the varieties of goods they supply;

(5)

the certification proving that the enterprise is listed into the “Announcement of Road Power-Driven Vehicle Manufacturing Enterprises
and Products”.

Article 10

The General Administration of Customs shall, after receiving the application materials for archiving, distribute the relevant materials
for archiving to the NDRC, the Ministry of Commerce and the directly subordinate Customs office at the enterprise’s locality which
shall conduct archival administration upon their respective duties receiving the materials for archiving.

Article 11

The directly subordinate Customs at the enterprise’s locality shall, after receiving the materials for archiving as sent by the General
Administration of Customs, check them up, register and archive the qualified automobile manufacturing enterprises and qualified vehicle
types, and notify such automobile manufacturing enterprises as well.

Article 12

The automobile manufacturing enterprise shall, after registration and archival filing, provide the Customs at the locality with a
guaranty for the total amount of duties in light of the import plan on the automobile components and parts before such automobile
components and parts are imported. The amount of the guaranty for the total amount of duties shall not be lower than the total amount
of duties paid by the enterprise for its average amount of monthly import of components and parts.

The automobile manufacturing enterprise shall, in light of the quantity of archived vehicle types and the adjusted import plan, timely
apply to the Customs office at its locality for modifying the amount of guaranty for the total amount of duties. The Customs shall,
after verifying the amount to be unerring, go through the relevant procedures for modifying the guaranty amount.

Chapter III Administration on Customs Clearance

Article 13

When importing automobile components and parts featuring complete vehicles, the automobile manufacturing enterprise shall make declaration
to the Customs office at its locality and pay duties as well.

Where an automobile manufacturing enterprise imports automobile components and parts featuring complete vehicles from a port other
than ports at its locality, it shall, after finishing the procedures for archival registration and guaranty for the total amount
of duties, apply to the Customs office at its locality for the customs transfer transport.. And the Customs shall go through the
customs transfer procedures according to the relevant provisions on the customs transfer transport.

The preceding paragraph shall not apply to the import of other automobile components and parts not featuring complete vehicles.

Article 14

When making declaration to the Customs, the enterprise shall submit to the Customs the customs declaration of imported goods, the
permit for automatic import of automobile components and parts which bears the mark of “complete vehicle features”, other related
permits as well as the attached documents required by the Customs.

Article 15

When some automobile components and parts featuring complete vehicles are imported, if permit certificates are involved, such certificates
shall be verified during the customs clearance. The column concerning the nature of duties levy or exemption in the customs declaration
of imported goods shall be filled with the words “complete vehicle character”; while the column of consignee shall be filled with
the name of the automobile manufacturing enterprise.

As to automobile components and parts of different vehicle types, the custom declarations shall be filled separately.

Article 16

When some automobile components and parts featuring complete vehicles are imported, the Customs shall go through the relevant import
procedures pursuant to the relevant provisions on the administration of bonded goods, and shall list them into the Customs’ statistics
in light of the import situation.

Chapter IV Standards for Verification of Complete Vehicle Features and the Verification thereof

Article 17

To verify the complete vehicle features, the automobile manufacturing enterprise shall file an application to the General Administration
of Customs, who shall entrust the Verification Center to conduct the verification. The Customs shall, according to the “Verification
Report” issued by the Verification Center, determine the applicable duty rate and duty-paid price, and handle the procedures for
levying duties. The measures for verifying the complete vehicle features of the imported automobile components and parts shall be
separately formulated and promulgated by the General Administration of Customs.

Article 18

The Verification Center shall, in pursuance of the instruction of the General Administration of Customs, make verification of relevant
vehicle types of the automobile manufacturing enterprises, and issue the verification reports accordingly.

Article 19

The automobile manufacturing enterprise shall, within 10 days after the archived vehicle types have been assembled into the first
batch of complete vehicles, apply to the General Administration of Customs for verification of complete vehicle features. The Verification
Center shall, within 1 month after accepting the instruction of the General Administration of Customs, finish the verification of
the relevant vehicle types and issue the verification report.

As for the vehicle types put into production before the present Measures come into force, the automobile manufacturing enterprise
shall finish the self-test within 1 month after the present Measures come into force, and report the self-test result to the General
Administration of Customs. If the self-test result indicates that the components and parts bear the complete vehicle features, the
automobile manufacturing enterprise shall, within 10 days after finishing the self-test, have them archived in the General Administration
of Customs, and apply to the General Administration of Customs for verification of complete vehicle features; however, if the foresaid
result indicates that they do not bear the complete vehicle features, the automobile manufacturing enterprise shall apply to the
General Administration of Customs for reexamination. If they are found upon the reexamination to bear the complete vehicle features,
the automobile manufacturing enterprise shall, within 10 days after the reexamination result is promulgated, file an application
to the General Administration of Customs for supplementary archiving, and apply to the General Administration of Customs for verification
of complete vehicle features. The Verification Center shall, in pursuance of the instruction of the General Administration of Customs,
finish the verification of the archived vehicle types that have been put into production within 3 months, and issue a verification
report.

Article 20

The vehicle type verified by the Verification Center shall be the basic-type vehicle. Where any imported components and parts are
selected on the base of the verified basic-type vehicle, the automobile manufacturing enterprise shall provide the Customs office
at its locality and the Verification Center with the selected type, and truthfully make declaration at the time of selection. After
the Verification Center has reexamined the said type and issued a report, the Customs office shall make adjustments when verifying
the duty-paid value and calculating the duties.

Where the situation of complete vehicle features changes during the process of manufacture, the automobile manufacturing enterprise
may apply to the General Administration of Customs for re-verification of the basic-type vehicle. The Customs shall, on the basis
of the new verification report issued by the Verification Center, determine the duty-paid value for the calculation of duties. If
the vehicle type is verified no longer to bear the features of a complete vehicle, the Customs shall no longer conduct administration
on this vehicle type according to the present Measures.

Article 21

Under any of the following circumstances, the imported automobile components and parts shall be considered bearing the features of
a complete vehicle:

(1)

importing CKD or SKD to assemble automobiles;

(2)

if, within the scope as prescribed in Article 4 of the present Measures:

importing both the vehicle body (including the cab) assembly and engine assembly to assemble vehicles;

importing either the vehicle body (including the cab) assembly or engine assembly, and 3 or more other assemblies (systems) to assemble
vehicles;

importing 5 or more assemblies (systems) other than the vehicle body (including the cab) assembly and the engine assembly to assemble
vehicles.

(3)

The total price of the imported components and parts is not less than 60% of the total price of the complete vehicle type. The standard
for verifying complete vehicle features as described herein shall go into effect on July 1, 2006.

Article 22

Under any of the following circumstances, the imported automobile components and parts shall be considered bearing the features of
an automobile assembly (system):

(1)

importing whole sets of knocked-down components and parts to assemble an assembly (system);

(2)

importing key components and parts or sub-assemblies to assemble an assembly (system), and the import of key components and parts
or sub-assemblies reaches or exceeds the specified quantity (see attachments 1 and 2 for detail);

(3)

The total price of the imported components and parts is not less than 60% of the total price of the assembly (system).

Article 23

Where the imported components and parts used by a domestic automobile assembly (system) manufacturing enterprise to produce assemblies
(systems) do not bear the features of the assembly (system), such assembly (system) shall be deemed as a home-made assembly (system).

Article 24

Where a domestic automobile manufacturing enterprise or a manufacturing enterprise of components and parts essentially processes the
imported components and parts (excluding assemblies, sub-assemblies) and the semi-finished articles used for making components and
parts, the produced auxiliary components and parts shall be deemed as home-made components and parts.

The “essentially processes” mentioned herein shall mean that products, after being processed, can reach the standards of essential
change as described in the “Ordinance of the People’s Republic of China on the Place of Origin of Imported and Exported Goods”.

Article 25

When the Verification Center verifies the complete vehicle features of an archived vehicle type, the automobile manufacturing enterprise
shall actively cooperate with it, and submit the following documents:

(1)

an application report for verification;

(2)

the self-test report of the enterprise;

(3)

the “List of Components and parts to be Purchased for the Archived Vehicle Type” (see Attachment 3 for detail);

(4)

other documents that are considered necessary by the Verification Center.

Article 26

Where an automobile manufacturing enterprise should but fails to file an application for archiving or for verification of complete
vehicle features, the General Administration of Customs may instruct the Verification Center to make verification.

Chapter V Duty-Levying Principles and the Calculation of Duties

Article 27

The imported automobile components and parts of complete vehicle features shall, from the time of the customs clearance until the
duties are paid, be subject to the supervision of the Customs office at the enterprise’s locality by according to the bonded goods.
In order to improve the efficiency of administration, the automobile manufacturing enterprises shall, where it is possible, have
connected with the Customs office at their respective localities through electronic network.

Article 28

After the imported automobile components and parts are produced and assembled into complete vehicles, the automobile manufacturing
enterprise shall file duty returns to the Customs which shall make classification and levy duties according to the relevant provisions
in the “Customs Law of the People’s Republic of China” (hereinafter referred to as the Customs Law), the “Regulation of the People’s
Republic of China on Import and Export Duties” and the “Customs Import and Export Tariff of the People’s Republic of China”.

As to the imported components and parts believed to be of the features of a complete vehicle by the Verification Center, the Customs
shall classify them as complete vehicles, and shall calculate and levy the Customs duties and import value-added taxes at the rates
for complete vehicles; for those that are found not bearing the features of a complete vehicle, the Customs shall classify them as
components and parts, and shall calculate and levy the Customs duties and import value-added taxes at applicable rates.

Article 29

When the Customs classifies the imported components and parts of complete vehicle features as complete vehicles for the purpose of
levying duties, if the import Customs duties and import value-added taxes for those components and parts as supplied by matched manufacturers
have been paid at the time of import, and the automobile manufacturing enterprise can provide certificates on payment of such duties
or taxes, the already paid duties and taxes shall be deducted.

Where an enterprise does not use the automobile components and parts imported according to the present Measures to produce complete
vehicles within 1 year, it shall, within 30 days as of expiry of the 1-year term, file duty returns to the Customs which shall levy
duties in accordance with the relevant provisions.

Article 30

The present Measures shall apply to the automobiles manufactured under the processing trade but sold in domestic market.

The enterprise engaging in manufacture of automobiles for processing trade shall, before applying for domestic sale of its automobile
products assembled with the imported automobile components and parts that bear the complete vehicle features, apply to the General
Administration of Customs according to the present Measures for supplementing the archival filing procedures, and accept the verification
by the Verification Center. With respect to those that bear the complete vehicle features, the Customs shall, on the basis of the
verification result, calculate and levy duties at applicable rates as prescribed in the present Measures upon the strength of the
“Approval Certificate for Domestic Sale of Bonded Imported Materials, Components and Parts for Processing Trade” and corresponding
import permit certificates submitted by the enterprise, and levy the supplemental interest on the tax paid in delay of all the imported
components and parts.

Automobile manufacturing enterprises within a bonded zone, an export processing zone or any other particular Customs supervision area
shall, before applying for domestic sale of its automobile products assembled with the automobile components and parts which have
entered the zone or area and bear the features of a complete vehicle, apply to the General Administration of Customs according to
the present Measures for supplementing the archival filing procedures, and accept the verification by the Verification Center. As
to those components and parts featuring complete vehicles, the Customs shall, on the basis of the verification result, handle the
relevant procedures upon the strength of the relevant import permit certificates and levy duties in light of the actual conditions
of domestic sale.

Article 31

The automobile manufacturing enterprise shall, as of the next month after the Verification Center issues the verification report on
the components and parts featuring complete vehicles, file duty returns to the Customs office at the enterprise’s locality before
the 10th working day of each month. The Customs office shall calculate and levy the Customs duties and import value-added taxes,
at the rate for complete vehicles, in a centralized way on the imported components and parts used by the automobile manufacturing
enterprise in the last month to make relevant vehicle types.

When filing duty returns for the first time, the automobile manufacturing enterprise shall as well file the duty returns on the imported
components and parts which have been used for making complete vehicles before the verification report is issued.

Article 32

The automobile manufacturing enterprise shall, within 30 days after the Verification Center issues a verification report on failure
to bear the features of a complete vehicle, declare to the Customs office at its locality the imported automobile components and
parts for which the duties has not been paid. The Customs office shall calculate and levy the Customs duties and import value-added
taxes at the rates for automobile components and parts, and no longer conduct administration on the relevant vehicle types in accordance
with the present Measures.

Article 33

Where none of the archived vehicle types of an automobile manufacturing enterprise is verified to be of complete vehicle features
by the Verification Center, and the enterprise has paid off the duties, the Customs office shall notify the enterprise to go through
procedures for canceling the guaranty for the total amount of duties.

Article 34

When filing duty returns to the Customs office at its locality, the automobile manufacturing enterprise shall submit the following
documents:

(1)

the verification report by the Verification Center;

(2)

the manufacture quantity of complete vehicles of the type in the last month (except that the vehicle type is found, upon verification,
not to bear the features of a complete vehicle);

(3)

a list of automobile components and parts of relevant vehicle types which were imported last month and have been used for assembling
complete vehicles (except that the components and parts are found, upon verification, not to bear the features of a complete vehicles);

(4)

other documents considered necessary by the Customs.

Article 35

The enterprise shall, when declaring to the Customs its automobile components and parts featuring complete vehicles, fill out the
words “Duty Levied upon Complete Vehicle” in the column on the nature of levy or exemption and “CIF” in the column of methods of
bargain; when declaring to the Customs its automobile components and parts not featuring complete vehicles, the enterprise shall
fill out the words “Duty Levied on Components and parts” in the column on the nature of levy or exemption and “CIF” in the column
of methods of bargain.

Chapter VI Legal Liability

Article 36

Whoever violates the present Measures by smuggling or by committing any act in violation of the Customs supervision provisions shall
be punished by the Customs in light of the “Customs Law” and the “Implementing Regulation of the People’s Republic of China on Administrative
Penalties Imposed by the Customs”. If a crime is constituted, he shall be subject to criminal liabilities according to the law.

Article 37

Where an automobile manufacturing enterprise violates the relevant provisions of the present Measures when applying for listing itself
into the “Announcement of Road Power-Driven Vehicle Manufacturing Enterprises and Products” and applying for archiving and not truthfully
declaring the imported components and parts featuring complete vehicles, or the components and parts imported by it in bulk delivery
bears the features of a complete vehicle and it fails to apply to the General Administration of Customs for archiving prior to the
import, the NDRC shall suspend its relevant vehicle types from being listed into the “Announcement of Road Power-Driven Vehicle Manufacturing
Enterprises and Products” and resume its qualification after the automobile manufacturing enterprise has made a correction.

Chapter VII Supplementary Provisions

Article 38

The present Measures shall come into force as of April 1, 2005.

Attachments:

Table for Defining Assemblies (Systems)(omitted)

Defined Scope of Components and parts of Automobile Assemblies (Systems)(omitted)

List of Components and parts to Be Purchased for the Archived Vehicle Type(omitted)

the General Administration of Customs, the National Development and Reform Commission, the Ministry of Finance, the
Ministry of Commerce
2005-02-28

1...131415...28 Page 14 of 28

2005

AMENDMENT TO THE CRIMINAL LAW OF THE PEOPLE’S REPUBLIC OF CHINA

DONATIONS FOR PUBLIC WELFARE LAW

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON RATIFYING THE TREATY OF GOOD-NEIGHBORLINESS AND FRIENDLY COOPERATION BETWEEN THE PEOPLE’S REPUBLIC OF CHINA AND THE ISLAMIC REPUBLIC OF PAKISTAN

NOTICE OF THE STATE ADMINISTRATION OF TAXATION, THE MINISTRY OF FINANCE AND THE MINISTRY OF STATE LAND AND RESOURCES ABOUT STRENGTHENING THE ADMINISTRATION OF LAND TAX COLLECTION

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES CONCERNING THE FOREIGN EXCHANGE ADMINISTRATION OF OVERSEAS INVESTMENT IN BORDER AREAS

MEASURES FOR THE QUARANTINE SUPERVISION AND ADMINISTRATION OF WOODEN PACKAGES OF IMPORTED GOODS

CIRCULAR OF STATE ADMINISTRATION OF TAXATION ON STRENGTHENING THE ADMINISTRATION OF TAX REFUND (EXEMPTION) FOR EXPORT OF PRODUCTS WITH GOLD INGREDIENT

INTERIM MEASURES FOR THE ADMINISTRATION OF BUSINESS-STARTING INVESTMENT ENTERPRISES

REPLY OF THE SUPREME PEOPLE’S COURT AND THE SUPREME PEOPLE’S PROCURATORATE ABOUT RELEVANT ISSUES OF HANDLING CRIMINAL CASES OF INFRINGING UPON COPYRIGHT CONCERNING AUDIO-VISUAL FIXATION

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON RATIFYING THE FRAMEWORK CONVENTION ON TOBACCO CONTROL OF THE WORLD HEALTH ORGANIZATION

NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE OF THE TAXATION POLICIES FOR THE PILOT REFORM OF SHARE-TRADING

MEASURES FOR THE ADMINISTRATION OF IMPORT OF AUTOMOBILE COMPONENTS AND PARTS FEATURING COMPLETE VEHICLES

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