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2005

MEASURES FOR THE ADMINISTRATION ON IMPORT AND EXPORT LICENSE FOR DUAL-USE ITEMS AND TECHNOLOGIES

Ministry of Commerce, General Administration of Customs

Decree of the Ministry of Commerce and the General Administration of Customs

No.29

Measures for the Administration on Import and Export License for Dual-use Items and Technologies were discussed and adopted by the
Ministry of Commerce and the General Administration of Customs. It is hereby promulgated and shall enter into force as of the date
of January 1, 2006.

Minister of the Ministry of Commerce, Bo Xilai

Director-General of the General Administration of Customs, Mu Xinsheng

December 31, 2005

Measures for the Administration on Import and Export License for Dual-use Items and Technologies

Chapter I. General Provisions

Article I.

These Measures are formulated in accordance with the provisions in the Foreign Trade Law of the People’s Republic of China, the Customs
Law of the People’s Republic of China and relevant administrative regulations for the purposes of guaranteeing national security
and public interests, of fulfilling the obligations in the international treaties and conventions that China has concluded and joined,
and of strengthening the administration on import and export license for dual-use items and technologies.

Article II.

“The administrative regulations” as mentioned in these Measures refer to Regulations of the People’s Republic of China on Control
of Nuclear Export, Regulations of the People’s Republic of China on Export Control of Nuclear Dual-use Goods and Related Technologies,
Regulations of the People’s Republic of China on Export Control of Missiles and Missile-Related Items and Technologies, Regulations
of the People’s Republic of China on Export Control of Dual-use Biological Agents and Related Equipment and Technologies, Regulations
of the People’s Republic of China on the Administration of Controlled Chemicals, Regulations of the People’s Republic of China on
the Administration of Precursors and Chemicals used in Production of Narcotic Drugs and Psychotropic Substances, and Measures on
Export Control of Certain Chemicals and Related Equipment and Technologies.

The dual-use items and technologies as mentioned in these Measures refer to the items and technologies controlled by the aforesaid
administrative regulations.

Article III.

The Ministry of Commerce shall be in charge of the nationwide administration of the import and export license for dual-use items and
technologies, responsible for formulating measures, regulations and regimes for the administration of the import and export license
for dual-use items and technologies, for supervising and inspecting the implementation of measures for the administration of the
import and export license for dual-use items and technologies, and for granting penalties on the violations.

Article IV.

The Ministry of Commerce shall, in cooperation with the General Administration of Customs, formulate and promulgate the Controlling
List of the Import and Export License for Dual-use Items and Technologies (please refer to Annex I, and hereinafter referred to as
the Controlling List). And the Ministry of Commerce and the General Administration of Customs may make readjustments on the Controlling
List and promulgate them in the form of announcement.

Article V.

Authorized by the Ministry of Commerce, the Quota and License Administrative Bureau (hereinafter referred to as the License Bureau)
of the Ministry of Commerce shall be nationwide in charge of the unified administration and guidance of the issuing of the import
and export license for dual-use items and technologies, and it shall be responsible to the Ministry of Commerce.

The License Bureau and the provincial competent departments of commerce authorized by the Ministry of Commerce (hereinafter referred
to as the issuing authorities) shall be responsible for the issuing of the import and export license for dual-use items and technologies;
under the unified administration from the License Bureau, the provincial competent departments of commerce shall, within their authorized
areas, be responsible for the issuing of the import and export license for dual-use items and technologies. And the Name List of
the Authorities Responsible for the Issuance of the Import and Export License for Dual-use Items and Technologies (please refer to
Annex II) is annexed thereinafter.

Article VI.

An import or exit license for dual-use items and technologies shall be applied for, no matter in what form, the dual-use items and
technologies subject to the Controlling List are import or export, passing through the territory of the People’s Republic of China,
transfer, and transportation of (please refer to Annex III. for the pattern of the license).

The antecedent provisions shall be applicable to the in-and-outs of dual-use items and technologies between the areas without the
territory of the People’s Republic of China and such customs specially-supervised zones and bonded localities as bonded zones and
export processing zones etc.

The in-and-outs of dual-use items and technologies between the areas within the territory of the People’s Republic of China and such
customs specially-supervised zones and bonded localities as bonded zones and export processing zones etc., or between the aforesaid
customs specially-supervised zones and bonded localities need no import or exit license for dual-use items and technologies.

Article VII.

The exporter and importer, when dealing import and export of dual-use items and technologies, shall present to the customs authorities
his/her import or exit license for dual-use items and technologies, upon which, the customs authorities concerned shall, in accordance
with the provisions in the Customs Law, accept the declaration and handle the formalities of examination and clearance.

Article VIII.

In accordance with the provisions in relevant administrative regulations, where the exporter knows or should know or receives notices
from relevant administrative authorities of the State Council that his/her items and technologies to be exported have the risk of
being used in weapons of mass destruction and their related means of delivery, an export license shall be applied for towards the
items and technologies concerned, whether included in the Controlling List or not, and an export license for dual-use items and technologies
shall be handled in accordance with these Measures.

In case that the exporter, when dealing export, finds that his/her items and technologies to be exported have the risk of being used
in weapons of mass destruction and their related means of delivery, he/she shall timely report to relevant administrative authorities
of the State Council and actively cooperate to adopt measures to cease the function of the contract.

Article IX.

The exporter and importer shall initiatively present to the customs authorities his/her import or exit license for dual-use items
and technologies, and the legal liabilities arising from the exporter’s failure to do so shall be assumed by the exporter himself/herself.

The customs authorities have the power to doubt whether the imported or exported commodities of the importer and exporter belong to
the category of dual-use items and technologies, and the importer and exporter shall, as stipulated, apply to relevant administrative
authorities in charge for an import or export license, or apply to the commerce authorities in charge for the issuing of relevant
attestation indicating that the aforesaid commodities do not belong to the controlled category; and the provincial competent departments
of commerce shall accept the application and put forward treatment opinions, which then shall be submitted to the Ministry of Commerce
for examination and decision. The customs authorities shall handle relevant formalities for such importer or exporter as fails to
present his/her import or export license for dual-use items and technologies or relevant attestation (please refer to Annex IV. for
its pattern) from the Ministry of Commerce.

Article X.

These Measures shall be applicable to the administration of the import and export license for temporally-controlled dual-use items
and technologies.

Chapter II. The Application and Issuance of the Import and Export License for Dual-use Items and Technologies

Article XI.

The importer or exporter shall, after acquiring the document of approval from relevant administrative authorities in charge, apply,
upon this document concerned, to the local issuing authorities for the import or export license for dual-use items and technologies
( the enterprise controlled by the central authorities in Beijing shall apply to the License Bureau for the license):

i.

The document of approval for the import and export of nuclear, nuclear dual-use items, dual-use biological agents, related chemicals,
missile-related items, precursors and chemicals used in production of narcotic drugs and psychotropic substances, and computers shall
be the approval sheet for the import or export of dual-use items and technologies issued by the commerce authorities in charge, hereinto,
the handling of relevant formalities for the export of nuclear materials shall be based upon the document of approval from the Commission
of Science, Technology and Industry for National Defense.

The application of the foreign-funded enterprise for the import or export license shall be based upon the Approval Sheet of the Ministry
of Commerce for the Foreign-funded Enterprise on the Import/Export of Precursors and Chemicals used in Production of Narcotic Drugs
and Psychotropic Substances.

ii.

The document of approval for the import/export of controlled chemicals shall be the approval sheet for the import/export of controlled
chemicals issued by the State Leading Group Office for the Implementation of the Convention on the Banning of Chemical Weapons, and
the importer/exporter of controlled chemicals shall apply to the License Bureau for the import/export license for dual-use items
and technologies.

Article XII.

The export of dual-use items and technologies in the forms of international communication, exchange, cooperation, donation, assistance,
service etc. shall be regarded as normal export, and the exporter shall, as stipulated, apply for the export license, and an export
license for dual-use items and technologies shall be handled in accordance with these Measures.

Article XIII.

The application of the import/export license for dual-use items and technologies may be advanced through the Internet, and when import/export
license for dual-use items and technologies is applied for, these documents as follows shall be submitted:

i.

Relevant document of approval as stipulated in Article XI. of these Measures; and

ii.

The original copy of the official letter (letter of introduction) of the importer/exporter, the effective identity certificate of
the receiver of the importer/exporter, and the application form for the import/export license for dual-use items and technologies
submitted through the Internet.

With regard to such special circumstances as that the applicant/receiver is of different locality from the issuing authorities, etc.,
as result of which, other person needs to be entrusted to apply/receive the import/export license for dual-use items and technologies,
the entrustee shall submit the original copy of the official letter of entrust (thereinto the reason for entrust and the identity
of the entrustee shall be specified) issued by the importer/exporter and the effective identity certificate of the entrustee.

Article XIV.

The issuing authorities, after receiving the document of approval (including electronic text and data) and relevant documents issued
by relevant administrative authorities in charge and checking for faults, issue the import/export license for dual-use items and
technologies within 3 work days.

Article XV.

The import license for dual-use items and technologies shall be subject to the mechanisms of “one license, more uses” and “one license
to one customs”, and such words as “not used for once only” shall, at the same time, be printed in the remark column of the import/export
license for dual-use items and technologies.

The export license for dual-use items and technologies shall be subject to the mechanisms of “one license, one use” and “one license
to one customs”. In case that the export license for the same commodity subject to the same contract needs to be handled lot by lot,
the exporter shall, upon application, submit documents of approval of corresponding quantity for the export of dual-use items and
technologies issued by relevant administrative authorities in charge. And the number of lots for the same turn of application shall
not exceed 12 at most.

The mechanism of “one license, more uses” refers to that such license may be used for more than once but less than twelve times within
its term of validity and that the customs authorities shall sign on each imported volume of goods on the column of “Customs Clearance
Remark” at the back of such license; the mechanism of “one license, one use” refers to that such license may only be used once upon
declaration; and the mechanism of “one license to one customs” refers to that such license may only be used for declaration upon
one customs.

Article XVI.

The import/export license for dual-use items and technologies is of four copies in duplicate, among which, the first copy is used
for the customs authorities to handle formalities, the second copy for the customs authorities to keep record and check, the third
copy for the bank to handle settlement of exchange, and the fourth copy for the issuing authorities to keep record.

Article XVII.

The importer/exporter, when applying for the import/export license for dual-use items and technologies, shall act according to the
facts and practice no fraud, and such fraudulent and illicit means as using counterfeit contracts and documents are strictly prohibited
in obtaining the import/export license for dual-use items and technologies.

Chapter III. Treatment for Special Cases

Article XVIII.

The exceeded volume of the large and/or bulk dual-use items subject to the mechanism of “one license, one use”, upon customs declaration,
shall not be above 5% of the given volume in the export license for dual-use items and technologies. With regard to the large and/or
bulk dual-use items subject to the mechanism of “one license, more uses”, each actual import volume of them shall be deducted from
the total licensed volume, and when the last import volume under the same license undergoing customs declaration, the exceeded amount
shall be calculated according to the actual remaining licensed volume, which shall be within 5% of the given upper limit for exceeded
volume.

Article XIX.

With regard to the items on display for the exhibitions in the areas without the territory of the People’s Republic of China, the
exporter shall, upon the document of approval issued by the examination and approval authorities in charge of economic and trade
exhibitions in the areas without the territory of the People’s Republic of China, apply, as stipulated, for the export license for
dual-use items and technologies, and such license shall be handled in accordance with these Measures.

With regard to the not-for-sale items on display, such words as “not-for-sale items on display” shall be specified in the remark column
of the export license for dual-use items and technologies. And the exporter shall, within 6 months as of the end of the exhibitions,
transport exactly the not-for-sale items on display concerned into the territory of the People’s Republic of China, and the customs
authorities shall verify and cancel these items concerned upon the exit documents. Under special circumstances, a deferment may be
applied for to the customs authorities, and such deferment shall not be above 6 months at most.

Article XX.

Such sample goods or experimental samples belonging to the category of dual-use items and technologies as are to be transported into
the territory without the People’s Republic of China shall be regarded as normal export, and the exporter shall apply, as stipulated,
for the export license for dual-use items and technologies, and such license shall be handled in accordance with these Measures.

Article XXI.

The precursors and chemicals used in production of narcotic drugs and psychotropic substances and potassium permanganate carried about
by the entry-exit personnel shall be subject to the provisions in the Regulations of the People’s Republic of China on the Administration
of Precursors and Chemicals used in Production of Narcotic Drugs and Psychotropic Substances, accepting supervision and control from
the customs authorities.

Article XXII.

Another provisions, if existing, for the administration of such specially-supervised exported dual-use items and technologies as the
parts and components for civil aviation etc. shall be abided by.

Article XXIII.

Relevant prerequisites shall be necessary for the exporter dealing with such dual-use items and technologies as involved in the state-owned
trade management and the commodities subject to export quota.

Chapter IV. Supervision and Inspection

Article XXIV.

The import/exit license for dual-use items and technologies shall be exclusively used by the applicant of such license.

No import/exit license for dual-use items and technologies may be sold, transferred, altered, forged or changed.

Article XXV.

The import/exit license for dual-use items and technologies shall be used within the approved term of validity, and shall be automatically
invalidated when the term of validity expires, and no clearance may be granted by the customs authorities.

Article XXVI.

The term of validity of no import/exit license for dual-use items and technologies may, in general, exceed 1 year.

The import/exit license for dual-use items and technologies may be used transannually but with a term of validity to March 31 of the
next year; and a license, if the term of validity expires, may be reissued by the issuing authorities in accordance with the term
of validity of the former license.

Article XXVII.

Once an import/exit license for dual-use items and technologies is issued, no unit or individual may alter the contents of such license.

Where there is necessity to alter the contents of such license, the importer/exporter shall, within the term of validity of such license,
reapply to relevant administrative authorities in charge for the permit of import/export, and apply, upon the former license and
the new document of approval, to the issuing authorities for the import/exit license for dual-use items and technologies.

Article XXVIII.

The importer and consignee as specified in the import license for dual-use items and technologies shall be consistent with the dealing
unit and consignee unit specified in the customs declaration form for imported goods; and the exporter and consignor as specified
in the export license for dual-use items and technologies shall be consistent with the dealing unit and consignor unit specified
in the customs declaration form for exported goods,

Article XXIX.

In case that such an import/exit license for dual-use items and technologies as has been received is lost, the importer/exporter shall
timely report in written form to relevant administrative authorities in charge, to the issuing authorities of the lost license and
to the customs authorities at such port as specified in the lost license, and publish in the national economic newspapers and periodicals
a “lost property notice”, upon which, the issuing authorities shall cancel this lost license after ascertaining that it has not been
used in customs clearance, and reissue a new license in accordance with the contents of the former license.

Article XXX.

The importer/exporter shall well keep the documents for the import/export of dual-use items and technologies and relevant data for
five years, ready for the inspection of relevant administrative authorities in charge.

Article XXXI.

Any unit or individual shall be encouraged to report to the Ministry of Commerce and the customs authorities about the importer/exporter’s
acts in violation of the provisions in relevant national laws, regulations and these Measures. The Ministry of Commerce and the customs
authorities shall keep secret for the reporters, and investigate in and prosecute these acts possibly in violation of laws and regulations;
if checked and found to be true, the authorities in charge may, as stipulated, grant rewarding to the reporters.

Article XXXII.

The issuing authorities shall timely transmit the license-issuing data so as to guarantee the importer/exporter’s smooth customs declaration
and the examination of the customs authorities; the examination data feed backed by the customs authorities shall be earnestly treated,
and a periodical inspection shall be made on the utilization of the import/exit license for dual-use items and technologies so as
to find out the existing problems. The License Bureau shall quarterly submit to the Ministry of Commerce the checked examination
data feed backed by the customs authorities.

Article XXXIII.

No issuing authorities may, exceeding or beyond their powers, issue the import/exit license for dual-use items and technologies, and
such license issued in such ways shall be invalid.

The Ministry of Commerce shall revoke such aforesaid license, once detected. And the issuing authorities shall give clear replies
to the problems concerning the aforesaid license discovered by the customs authorities during their daily supervision and control
or their case-treatment.

Article XXXIV.

Authorized by the Ministry of Commerce, the License Bureau shall inspect the issuing authorities. The inspection shall include the
implementation of these Measures by the issuing authorities, and stress shall be put on the inspection of such problems as the possible
illicit license-issuing of the issuing authorities by exceeding or beyond their powers and other violations of these Measures. The
inspection mode shall be a combination of the periodical or unperiodical self-inspection by the issuing authorities themselves and
the selective inspection by the License Bureau.

The License Bureau shall submit the results of inspection to the Ministry of Commerce.

Chapter V. Legal Liabilities

Article XXXV.

Anyone who imports/exports dual-use items and technologies without approval or beyond the licensed extent shall be punished in accordance
with relevant laws and administrative regulations, and if a crime is constituted, criminal responsibilities shall be investigated
according to law.

Article XXXVI.

Anyone who smuggles dual-use items and technologies in violation of the provisions in these Measures shall be granted administrative
penalties by the customs authorities in accordance with the Customs Law of the People’s Republic of China and the Implementation
Regulations of the People’s Republic of China on Customs Administrative Penalties, and if a crime is constituted, criminal responsibilities
shall be investigated according to law.

Article XXXVII.

Anyone who forges, alters or trades an import/export license for dual-use items and technologies shall be investigated for criminal
liabilities according to law in accordance with the provisions in the Criminal Code on the crimes of illegal business, or of forging,
altering or trading the documents, certificates and seals of the state organs, and if the circumstance is not serious enough to be
subject to criminal penalties, an administrative penalty shall be given in accordance with the Customs Law of the People’s Republic
of China and the provisions in other relevant laws and administrative regulations.

Anyone who acquires the import/export license for dual-use items and technologies by fraudulence and other illicit means shall be
revoked of his/her license according to law by the Ministry of Commerce, and be administered a warning, or be imposed a fine of less
than RMB 30,000 Yuan.

Article XXXVIII.

Anyone who, in violation of the provisions in Article XIX., fails to transport back on schedule and exactly the non-for-sale items
on display subject to the administration of the export license for dual-use items and technologies and to render them for verification
and cancellation by the customs authorities, shall, in accordance with relevant provisions, be disposed by the customs authorities,
who then shall report relevant situations to the Ministry of Commerce and the examination and approval authorities in charge of economic
and trade exhibitions in the areas without the territory of the People’s Republic of China. And the exporter concerned shall be administered
a warning by the Ministry of Commerce or be imposed a fine of less than RMB 10,000 Yuan.

Article XXXIX.

In accordance with the Foreign Trade Law of the People’s Republic of China, the Ministry of Commerce may, within the time limit of
more than 1 year and less than 3 years as of the date of entry into force of the administrative penalty decision in accordance with
the provisions in from Article XXXV. to Article XXXVIII. or of the criminal penalty verdict, forbid the violator from engaging in
relevant business activities related to foreign trade.

Article XL.

The Ministry of Commerce may suspend or cancel the license-issuing entrustment of such issuing authorities as violate Article XXXIII.
of these Measures by issuing license through exceeding or beyond their powers.

Article XLI.

The employees of the issuing authorities, who commit such activities as neglecting their duties, engaging in malpractice for personal
gain, or abusing their power, which constitute crimes, shall be investigated for criminal responsibilities according to law; and
if crimes are not constituted, they shall be transferred from their posts and be given administrative sanctions according to law.

Chapter VI. Supplementary Provisions

Article XLII.

Where the Ministry of Commerce makes readjustments on the entrusted issuing authorities, the former issuing authorities, as of the
date of readjustment, shall no longer issue the import/export license for dual-use items and technologies. And such import/export
license for dual-use items and technologies as the importer/exporter has received before the date of readjustment shall still be
valid during its term of validity.

Article XLIII.

The Ministry of Commerce and the General Administration of Customs are responsible for the interpretation of these Measures in accordance
with their respective duties.

Article XLIV.

These Measures shall enter into force as of the date of January 1, 2006.

And Interim Measures for the Administration of Export License for Sensitive Items and Technologies (Decree No.9 of the Ministry of
Commerce and the General Administration of Customs in 2003, Announcement No.74 of the Ministry of Commerce and the General Administration
of Customs in 2003), Circular of the General Administration of Customs on the Issue concerning the Exit Supervision and Control of
Enterprises Dealing such Services as Aviation Engine Repair etc. in Bonded Zones (Shu Fa Fa [2004] No.235), Circular of the General
Offices of the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation on the Issue concerning
the Examination and Clearance of Export License for Sensitive Items and Technologies by the Customs Authorities (Shu Ban Fa [2002]
No.89) and Circular of the Department of Politics and Law and the Department of Supervision and Control on the Issue concerning Specifying
the Supervision and Control of the Customs Authorities on Export License for Sensitive Items and Technologies (Zheng Fa Han [2004]
No.2) shall be annulled as of the same date.

And these Measures shall prevail in case that any conflict occurs between these Measures and Measures for the Administration of License
for the Export of Goods (Decree No.27 of the Ministry of Commerce) and Measures for the Administration of License for the Import
of Goods (Decree No.28 of the Ministry of Commerce).

Annexes:

1.

Controlling List of the Import and Export License for Dual-use Items and Technologies (omitted)

2.

Name List of the Authorities Responsible for the Issuance of the Import and Export License for Dual-use Items and Technologies (omitted)

3.

The Import License of the People’s Republic of China for Dual-use Items and Technologies (omitted)

4.

Relevant Attestation of the Ministry of Commerce (omitted)



 
Ministry of Commerce, General Administration of Customs
2005-12-31

 






CIRCULAR ON RELATED ISSUES CONCERNING AUTOMATIC IMPORT LICENSING ADMINISTRATION

Department of Foreign Trade, Ministry of Commerce

Circular on Related Issues Concerning Automatic Import Licensing Administration

Shang Mao Jin Zi [2005] No. 42

To authorities authorized by the Ministry of Commerce to issue licenses to commodities listed in Catalogue 1 and Catalogue 3 subject
to automatic import licensing administration, and various related import enterprises:

Notice is hereby given that:

In order to facilitate the Customs declaration of enterprises, as of December 25, 2005, license-issuing authorities shall begin to
issue Automatic Import Licenses (excluding Automatic Import Licenses granted to vegetable oil) for the next year instead of Automatic
Import Licenses for the current year. Import enterprises required to make declaration to the Customs by the end of the year shall
be requested to collect Automatic Import Licenses for the current year before December 25.

From January 1, 2006, the Ministry of Commerce will exercise automatic import licensing administration over such six commodities as
copper ore concentrates, coal, diethylene glycol terephthalate, vegetable oil, scrape steel and waste paper, and at the same time,
cancel automatic import licensing administration over plywood boards, color photographic materials and chemical fabrics (codes of
part of commodities) listed in Catalogue 1.

Various related enterprises shall, if importing copper ore concentrates, be requested to collect Automatic Import Licenses from accredited
representative offices of the Ministry of Commerce in accordance with territorial jurisdiction; if importing other commodities, shall
be requested to collect Automatic Import Licenses from competent financial departments of various provinces, autonomous regions,
municipalities directly under the Central Government, municipalities separately listed in the State plan and the Xinjiang Production
and Construction Crops:

Since the first working day in 2006, authorities authorized by the Ministry of Commerce to issue licenses shall begin to accept, register
and put on file the application filed by qualifying enterprises and importers on behalf of such enterprises for importation, for
Automatic Import Licenses of soybean oil, palm oil and rapeseed oil. Where in 2005 having obtained tariff quota certificates of soybean
oil, palm oil and rapeseed oil which had been shipped by the end of 2005 and were required to arrive in the early 2006, enterprises
and exporters thereof may, from December 25 to 31, 2005, apply to the license issuing authorities (Beijing Enterprises under the
supervision of State-owned Assets Supervision and Administration Commission shall apply to Quota Licensing Bureau of the Ministry
of Commerce) for going through formalities of collecting new Automatic Import Licenses, with original tariff quota certificates and
shipping notes. The valid period for changing new Automatic Import Licenses shall expire on January 30, 2006.

Department of Foreign Trade, Ministry of Commerce

December 19, 2005



 
Department of Foreign Trade, Ministry of Commerce
2005-12-19

 






OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON THE TAX REFUND TO SMALL-SCALE TAXPAYER FOREIGN-FUNDED ENTERPRISES FOR THEIR PURCHASE OF HOME EQUIPMENTS

the State Administration of Taxation

Official Reply of the State Administration of Taxation on the Tax Refund to Small-scale Taxpayer Foreign-funded Enterprises for Their
Purchase of Home Equipments

Guo Shui Han [2005] No. 1092

Qingdao Municipal Bureau of State Taxation:

Your bureau’s “Request for Instruction on the Tax Refund to Small-scale Taxpayer Foreign-funded Enterprises for Their Purchase of
Home Equipments” (No. 155 [2005] of Qingdao Municipal Bureau of National Taxes) has been received. We hereby give the following reply
after deliberation:

Considering the actual situation that, for the time being, the anti-forgery VAT tax-control certification system is unable to handle
the special VAT invoices for small-scale taxpayers, we consent after deliberation that, before the anti-forgery VAT tax-control certification
system is enabled to handle the special VAT invoices for small-scale taxpayers, your Bureau may, on the condition that the special
VAT invoices obtained for home equipment by the small-scale taxpayer foreign-funded enterprises under your jurisdiction are confirmed
inerrable through investigation by letter, handle the tax refund matters according to the current provisions on export tax refund.

State Administration of Taxation

November 14, 2005



 
the State Administration of Taxation
2005-11-14

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE CONCERNING PRE-TAX DEDUCTIONS OF THE TAXPAYERS’ DONATIONS TO THE EMERGENCY RELIEF PROMOTION CENTER OF THE MINISTRY OF CIVIL AFFAIRS

the State Administration of Taxation

Circular of the State Administration of Taxation on the Issue Concerning Pre-tax Deductions of the Taxpayers’ Donations to the Emergency
Relief Promotion Center of the Ministry of Civil Affairs

Guo Shui Han [2005] No. 953

The state taxation bureaus, local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government and cities specifically designated in the state plan:

The Emergency Relief Promotion Center of the Ministry of Civil Affairs is a public institution for public welfare undertakings established
upon the approval of the Central Organization Commission, for the purpose of assisting the government and the relevant departments
to help the entities and individuals who are in danger and in emergent need of relief. In accordance with the relevant legal provisions
of the Interim Regulation of the People’s Republic of China on Enterprise Income Tax, Individual Income Tax Law of the People’s Republic
of China and the Regulation for the Implementation thereof, a taxpayer’s donations to the Emergency Relief Promotion Center of the
Ministry of Civil Affairs, the amount of donations which is less than 3% of the taxable annual income of enterprise income tax or
less than 30% of the taxable income of income tax declared by an individual, shall be permitted to be deducted prior to tax payment.

State Administration of Taxation

October 13, 2005



 
the State Administration of Taxation
2005-10-13

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON RATIFYING THE CONVENTION ON ELIMINATING THE EMPLOYMENT AND OCCUPATION DISCRIMINATION IN 1958

the Standing Committee of the National People’s Congress

Decision of the Standing Committee of the National People’s Congress on Ratifying the Convention on Eliminating the Employment and
Occupation Discrimination in 1958

August 28, 2005

The 17th session of the Standing Committee of the Tenth National People’s Congress decides to ratify the Convention on Eliminating
the Employment and Occupation Discrimination in 1958, which was adopted at the 42nd conference of the International Labor Organization
on June 25, 1958, and simultaneously declares that before the Government of the People’s Republic of China gives a separate notice,
the Convention on Eliminating the Employment and Occupation Discrimination in 1958 doesn’t apply to Hong Kong Special Administrative
Region of the People’s Republic of China for the time being.



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

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON APPROVING THE CONVENTION OF UNIFYING SEVERAL RULES ON INTERNATIONAL AIR TRANSPORT

Decision of the Standing Committee of the National People’s Congress on Approving the Convention of Unifying Several Rules on International
Air Transport

Adopted on February 28, 2005

As proposed by the State Council to be deliberated and approved, the 14th session of the 10th Standing Committee of the National People’s
Congress decides to approve the Convention of Unifying Several Rules on International Air Transport, which was adopted by the International
Civil Aviation Organization at Montreal on May 28, 1999; furthermore, it is concurrently declared that the Convention for the Unification
of Certain Rules Relating to International Carriage by Air does not apply to the Hong Kong SAR of the PRC for the time being until
the Government of the PRC otherwise informs.



 
Standing Committee of the National People’s Congress
2005-02-28

 






MEASURES FOR STRATEGIC INVESTMENT BY FOREIGN INVESTORS UPON LISTED COMPANIES

The Ministry of Commerce, China Securities Regulatory Commission, the State Administration of Taxation, the State Administration of
Industry and Commerce, the State Administration of Foreign Exchange

Decree of the Ministry of Commerce, China Securities Regulatory Commission , the State Administration of Taxation, the State Administration
of Industry and Commerce, the State Administration of Foreign Exchange

No. 28

Measures for Strategic Investment by Foreign Investors upon Listed Companies formulated by The Ministry of Commerce, China Securities
Regulatory Commission, State Taxation Administration, State Administration of Industry and Commerce, the State Administration of
Foreign Exchange, are hereby promulgated and shall enter into force 30 days after its promulgation.

Minister of the Ministry of Commerce

President of China Securities Regulatory Commission

Director General of the State Administration of Taxation

Director General of the State Administration for Industry and Commerce

Director General of the State Administration of Foreign Exchange

December 30, 2005

Measures for Strategic Investment by Foreign Investors upon Listed Companies

Article 1

In order to standardize strategic investment of foreign investors on A-shares company (hereinafter referred to as listed company)
after the reform of non-tradable shares of listed company, to maintain securities market order, to introduce foreign advanced management
experience, technology and capital, to ameliorate structural governance of listed company, to protect the lawful rights of listed
companies and the shareholders, the Measures are hereby enacted in accordance with the requirement of Directive Opinions of China
Securities Regulatory Commission, the State-owned Assets Supervision and Administration, the related laws and acts on supervision
of foreign investment and listed company as well as the Interim Provisions on Foreign Investors’ Acquisition and Merger of Domestic
Enterprises.

Article 2

The Measures apply to such acts as foreign investors(hereinafter referred to as investors) acquired A-shares of the listed company
having finished reform of non-tradable shares and of the new listed companies by means of long-and-mid-term strategic investment
of merger and acquisition(hereinafter referred to as strategic investment) with certain scale.

Article 3

Investors may undertake strategic investment in accordance with the Measures after the approval of the Ministry of Commerce.

Article 4

Strategic investment shall abide by the following principles:

(1)

Abide by the related national laws, rules and related industrial policy, without harming national economic safety and social public
interest;

(2)

Abide by the principle of openness, equity and fairness, maintain the lawful right of listed companies and other shareholders, be
subject to the supervision of government and public and the jurisdiction of China”s judiciary and arbitration;

(3)

Encourage long-and-mid-term investment, maintain normal order of securities market, and prohibit speculation;

(4)

Not impede fair competition, prevent from over-concentrations of domestic related products, and from exclusion or limitation of competition.

Article 5

The following circumstances shall be met for investor to conduct strategic investment:

(1)

To acquire A-shares of listed company by means of contract transfer, regular, issuing of new shares by listed company or otherwise
prescribed by national laws and rules;

(2)

Investment may be conducted by stages, with the proportion of shares obtained after the initial investment no less than 10% of the
shares issued by the company, except special provisions for special industry or the approval by related competent authorities;

(3)

A-shares obtained by listed company shall not be transferred within three years;

(4)

As for the industries with specific provisions on share proportion of foreign investors, shares held by the above-mentioned investors
shall accord with the related provisions; as for the regions prohibited from foreign investment, investors shall not invest in the
above-mentioned regions;

(5)

Investment related to state shareholder of listed companies shall accord with the related provisions on state asset management.

Article 6

Investors shall conform to the following requirements:

(1)

Foreign legal person or other organizations set and operated lawfully, steady finance, sound credit and experienced management;

(2)

The total amount of abroad real asset shall not be less than USD0.1 billion or the total amount of real asset under supervision no
less than USD 0.5 billion; or the total amount possessed by its parent company no less than USD0.1 billion or the total amount
of real asset under supervision no less than USD 0.5 billion;

(3)

Wholesome governance structure, sound inner control system, and standardized operation;

(4)

Without several penalty from abroad supervision organs within three years (including its parent company).

Article 7

Strategic investment conducted through new shares introduction by listed companies shall be undertaken in accordance with the following
procedures:

(1)

Resolution on new shares introduction by board of directors of the listed company to investors and on revision draft of articles of
association;

(2)

Resolution on new shares introduction by corporate shareholder of the listed company to investors and on revision draft of articles
of association;

(3)

Introduction contract signed by the listed company and investor(s);

(4)

Application documents submitted by the listed company to the Ministry of Commerce in accordance with Article 12 of the Measures,
special provisions prevail when available;

(5)

The listed company, after the receipt of the approval from the Ministry of Commerce on strategic investment by investors upon the
listed company, shall submit the introduction application documents to China Securities Regulatory Commission and subsequently obtain
its approval;

(6)

The listed company, after the completion of introduction, shall draw the approval certificate of foreign invested enterprises by the
Ministry of Commerce and thereby register alteration in the administrative authorities of industry and commerce.

Article 8

Strategic investment by means of contract transfer shall be handled in accordance with the following procedures:

(1)

Resolution of strategic investment by board of directors of the listed company via investors and by means of contract transfer;

(2)

Resolution of strategic investment by board of directors of the listed company via investors and by means of contract transfer;

(3)

Stock transfer contract signed by the transferor and the investor;

(4)

Related application documents submitted by the investor to the Ministry of Commerce in accordance with Article 12 of the Measures,
special provisions prevail when available;

(5)

The investor with shares in the listed company, after having received the above-mentioned approval, shall handle confirmation procedures
of stock transfer in the concerned stock exchange, conduct registration transfer procedures in securities registration and clearing
institutions and submit them to China Securities Regulatory Commission for filling and record keeping;

(6)

The listed company, after the completion of contract transfer, shall come to the Ministry of Commerce for approval certificate of
foreign-invested enterprise and thereby conduct alteration registration in the administrative authorities of industry and commerce.

Article 9

The investor, with the intention to substantially control the listed company by means of contract transfer, after having received
the approval in accordance with item (1) ,item(2), item (3) and item(4) in Article 8 , shall submit the acquisition statement and
the related documents to China Securities Regulatory Commission, and after the check and approval by China Securities Regulatory
Commission, conduct stock transfer confirmation procedures, transact registration transfer procedure in securities registration
and clearing institutions. The listed company, after completion of the above-mentioned procedures, shall conduct in accordance with
item(6) of Article 8 .

Article 10

The investor conducting strategic investment upon the concerned listed company shall fulfill statement, announcement and other legal
obligations in accordance with Securities Law of the People”s Republic of China and the related provisions of China Securities Regulatory
Commission.

Article 11

The Investor, to continue strategic investment upon the listed company with itself as the shareholder, shall conduct in accordance
with the means and procedures prescribed in the Measures.

Article 12

The listed company or investor shall submit the following documents to the Ministry of Commerce:

(1)

Strategic investment application ( its form is shown in Appendix 1)

(2)

Strategic investment project (its form is shown in Appendix 2)

(3)

Introduction contract or share transfer agreement;

(4)

Position paper of recommendation institutions (concerned with introduction) or legal letter;

(5)

Commitment letter of continued shareholding by investors;

(6)

Certificate that the investor did not suffer severe penalty from domestic and abroad custody, and whether the investor suffered from
otherwise penalties;

(7)

Registration certificate with lawful notarization and certification for the investor, identity certificate of the legal person( or
authorized representative);

(8)

Balance sheet of the investor in recent three years with the audit of certified public accountant;

(9)

The documents to be submitted in accordance with the provisions in item(1), item (2), item(3), item (5), item(6) shall receive the
approval from the legal representative of the investor or the signature from its authorized representative, for the latter occasion,
confirmation signed by the legal representative and related notarization and certification;

(10)

Other documents prescribed by the Ministry of Commerce.

The Chinese original version of the above-mentioned documents shall be submitted, except that the original version and the Chinese
translation of the documents listed in item (7) and item (8) shall be submitted.

The Ministry of Commerce, within 30 days after receipt of all the above-mentioned documents, shall give the official reply, the duration
of validity of which is 180 days.

Article 13

Foreign company (“parent company”) in conformity with the requirement in Article 6 of the Measures may conduct strategic investment
via its overseas subsidiaries (“investors”). The investor, besides submitting the documents prescribed in Article 9 of the Measures,
shall submit to the Ministry of Commerce the irrevocable commitment letter where the parent company bears joint and several liabilities
on the investment of the investor.

Article 14

The investor, within 15 days after the receipt of the official approval by the Ministry of Commerce, shall open its foreign exchange
account. The investor, after the receipt of capital in foreign exchange for strategic investment from overseas, shall, in accordance
with the related provisions of foreign exchange administration, open special foreign exchange account (acquisition type) exclusively
for foreign investor in the local foreign exchange bureau where the registration office for listed companies locates, and settlement
and exchange of capital in the account and its cancellation procedures shall be conducted in accordance with the provisions related
to foreign exchange administration.

Article 15

The investor may, by holding the approval certificate and lawful identity certificate authorized by the Ministry of Commerce concerning
investment on listed companies, conduct the related procedures in securities registration and clearing institutions.

As for the non-tradable stocks held by the investor prior to its reform or the stocks held by the investor prior to the initial public
offering, the securities registration and clearing institutions may ,in accordance with the application of the investor, open the
securities account.

The securities registration and clearing institutions shall, in accordance with the related measures, formulate the corresponding
provisions.

Article 16

The investor shall, within 15 days after the capital settlement and exchange, start up its strategic investment and, within 180 days
after the receipt of official approval, complete its strategic investment.

Should the investor fail to duly complete the strategic investment, the official approval from the authorities of examination and
approval automatically ceases to be in force. The investor shall, within 45 days after the invalidation of the official approval
and with the examination and approval of foreign exchange bureau, purchase and exchange the RMB to foreign currency and remit it
out of China.

Article 17

After the completion of strategic investment, the listed company shall, by holding the following documents and within 10 days, come
to the Ministry of Commerce to draw approval certificate for foreign investors:

(1)

Application;

(2)

Official reply from the Ministry of Commerce;

(3)

Share-holding certificate issued by securities registration and clearing institutions;

(4)

Business license and lawful identity certificate of the listed company;

(5)

Articles of association of listed company.

The Ministry of Commerce shall, within 5 days after the receipt of all the above-mentioned documents, promulgate approval certificate
for foreign investment company and note “foreign-invested joint-stock company ( A-shares acquisition and merger) ” .

Where the investor has obtained 25% of a listed company and claimed the shareholding no less than 25% within 10 years, the Ministry
of Commerce shall note “foreign-invested joint-stock company (no lea than 25% of A-shares acquisition and merger)” in the approval
certificate issued for foreign-invested company.

Article 18

The listed company shall, within 30 days after the signature and issuing of approval certificate of foreign-invested enterprises,
apply to the administrative authorities of industry and commerce for the registration for altering company type and submit the following
documents:

(1)

Alteration application signed by the legal representative of the company;

(2)

Approval certificate for foreign-invested enterprises;

(3)

Share-holding certificate issued by securities registration and clearing institutions;

(4)

Lawful business operation certificate for investors after approval and certification;

(5)

Other documents to be submitted in accordance with the requirement of the State Administration of Industry and Commerce.

Should alteration be made after examination and approval, the administrative authorities of industry and commerce shall note in the
column of “enterprise type” of license of business operation “foreign-invested joint limited company (A-shares acquisition and merger)”.
Should the investor hold no less than 25% of its share and commit itself no less than 25% continuously within 10 years, it shall
be noted “foreign-invested joint limited company(A-share acquisition and merger no less than 25%).

Article 19

The listed company shall, within 30 days after the signature and issue of business operation license for foreign-invested companies,
handle related procedures in the concerned authorities of taxation, customs and foreign exchange administration. The administrative
authorities of foreign exchange shall note in the foreign exchange registration certificate “foreign-invested joint limited company
( A-shares acquisition and merger)”. Should the investor for strategic investment have acquired no less than 25% of the shares of
the single listed company or commit itself to continue holding no less than 25% of the shares of the listed company herein, the administrative
authority concerned shall note in the registration certificate of foreign exchange “”foreign-invested joint limited company (no less
than 25% of A-shares acquisition and merger)”.

Article 20

The investor shall not transact securities treatment( with the exception of B-shares), except the following circumstances:

(1)

A-shares held by the investor for strategic investment may be sold after the expiration of shareholding commitment;

(2)

The investor shall, by means of offer, purchase securities concerned in accordance with the related provisions of Securities Law of
the People”s Republic of China, and may, within the period of offer, purchase shares sold by A-shareholders of listed company;

(3)

Non-tradable shares held by the investor before the reform hereof may be sold after the completion of non-tradable shares reform and
the expiration of time limit for share selling;

(4)

Shares held by the investor before the initial public offering may be sold after the expiration of time limit for share selling;

(5)

Should shares held by the investor before the expiration of shareholding commitment need to be transferred for such specific reasons
of bankruptcy, liquidation, mortgage, they may be transferred with the approval from the Ministry of Commerce.

Article 21

Where the share reduction makes the foreign shares of the listed company less than 25%, the listed company shall, within 10 days,
put in record in the Ministry of Commerce and handle such related procedures as the approval certificate of foreign-invested enterprises

Where the share reduction makes the foreign shares of the listed company less than 25% and the investor concerned is the largest single
shareholder, the listed company shall, within 10 days, put in record in the examination and approval authorities and handle such
related procedures as the cancellation of the approval certificate of the foreign-invested enterprises.

Article 22

Where the share reduction makes the foreign shares of the listed company less than 25%, the listed company shall, within 30 days after
the alteration of the approval certificate of foreign-invested enterprises, handle the alteration registration in such administrative
authorities of industry and commerce as change the type of certificate of business operation as “foreign-invested joint limited company(A-share
acquisition and merger)”. The listed company shall, within 30 days of the registration alteration of license of business operation,
handle the alteration registration and the administrative authorities of foreign exchange shall note in the registration certificate
“foreign-invested joint limited company (A-shares acquisition and merger).

Where the share reduction makes the foreign shares of the listed company less than 10% and the investor is the largest single shareholder,
the listed company shall, within 30 days after the cancellation of the approval certificate of foreign-invested enterprises, handle
the alteration registration in the administrative authorities of industry and commerce and the type of the enterprise shall be changed
to joint limited company. The listed company shall, within 30 days after the alteration of the license of business operation, handle
the cancellation procedures of foreign exchange in the administrative authorities of industry and commerce.

Article 23

Where the parent company, via its subsidiaries overseas, conducts strategic investment and duly complete it, the parent company shall,
before the transfer of its subsidiaries overseas, notify the Ministry of Commerce, and put forward application in accordance with
the Measures. The new transferee shall accord with the provision of the Measures and undertake all the rights and obligations of
the parent company and its subsidiaries in the listed company, and fulfill lawful obligations to report and declare to China Securities
Regulatory Commission in accordance with related laws and rules.

Article 24

Where the investor, via A-shares market, transfers its shares hold in the listed company, it shall apply for foreign exchange purchase
and remit in the bureau of foreign exchange where the listed company locates in accordance with the following documents:

(1)

Written application;

(2)

Approval certificate authorized for settlement of exchange via the bureau of foreign exchange in special foreign exchange account(
Purchase type) for foreign investors opened for strategic investment;

(3)

Approval documents for the alteration of the stock ownership structure of the listed company issued by the Ministry of Commerce;

(4)

Certificates related to Securities exchange issued by securities broker institutions;

Article 25

Where the investor holds less than 25% shares of the listed company, its foreign loan shall be handled in accordance with the related
provisions of interior China-Affiliated Corporations.

Article 26

Staff members in related government institution shall devote themselves to their duties, fulfill their duties in accordance with the
related laws, shall not abuse their power to seek improper interest, and shall fulfill the confidential obligation on their acquainted
business secret.

Article 27

Strategic investment by the investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan
shall be handled in accordance with the Measures.

Article 28

The Measures enter into effect as of 30 days after its promulgation.

Appendix 1:Strategic investment application

(1)

Name of the investor

(2)

Name of the objective listed company

(3)

Intention of investment

(Signature of the investor and its authorized representative)

date Appendix 2:Strategic investment project

(1)

Name of the investor and its self-introduction (where its parent company undertakes strategic investment via its subsidiaries, the
investor shall also submit the related documents of the parent company)

(2)

Name of the objective listed company, scope of business , the specific means to obtain shares of the company, amount of shares to
be obtained and its proportion and time limit of its strategic interest in the listed company after it obtainment

(3)

Time limit for continuous shareholding

(4)

Interpretation of correlative relationship between the investor and the objective listed company

(signature of the investor and its authorized representative)

Date



 
The Ministry of Commerce, China Securities Regulatory Commission, the State Administration of Taxation, the State Administration
of Industry and Commerce, the State Administration of Foreign Exchange
2005-12-31

 






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT POLICIES CONCERNING THE STANDARDS FOR THE DEDUCTION OF FEES FROM THE INCOME FROM WAGES AND SALARIES SUBJECT TO INDIVIDUAL INCOME TAX

the Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on the Relevant Policies Concerning the Standards for
the Deduction of Fees from the Income from Wages and Salaries Subject to Individual Income Tax

Cai Shui [2005] No. 183

The public finance departments (bureaus) and local taxation bureaus of all provinces, autonomous regions, municipalities directly
under the Central Government, and cities as specifically designated in the state plan, and the Financial Bureau of Xinjiang Production
and Construction Corps.:

According to the Amendment to the Individual Income Tax Law of the People’s Republic of China which was adopted upon deliberation
at the 18th meeting of the Standing Committee of the Tenth National People’s Congress, the issue concerning the standards for the
deduction of fees from the incomes from wages and incomes subject to individual income tax is hereby notified as follows:

I.

According to the relevant provisions of the newly amended Individual Income Tax, as to the income from wages and salaries, a taxpayer
shall calculate and pay individual income tax after the monthly standard deduction of RMB 1600 Yuan from such income that he actually
derives since January 1, 2006.

II.

The income from wages and salaries shall, according to the unified provisions in the tax laws of the state, be strictly governed by
the policies on “wages, salaries, bonuses, year-end bonuses, dividends, allowances and subsidies, and other incomes related to employment
or appointment. Except for the projects for which the taxes can be reduced and exempted under the unified provisions of the state,
all the incomes falling within the scope of wages and salaries shall be taxed according to the relevant provisions.

III.

After the standard deduction of fees from the income from wages and salaries is raised, all the regions shall implement the uniform
standard, and no region may illegally prescribe tax-free projects or raises the standard for the deduction of fees in any disguised
form. As to a region that illegally raises the standard for the deduction of fees, the amount of public finance transfer payment
shall be reduced correspondingly or the base of local individual income tax shall be decreased. The tax authority may not implement
the deduction standard of fees that a region has illegally raised, and shall report it to the tax authority at the next higher level.

Please implement the Circular accordingly.

Ministry of Finance

State Administration of Taxation

December 19, 2005



 
the Ministry of Finance, the State Administration of Taxation
2005-12-19

 






CIRCULAR OF THE SAT ON INTERPRETATION AND IMPLEMENTATION OF SOME CLAUSES IN THE ARRANGEMENT BETWEEN THE MAINLAND AND MACAO SAR ON THE AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME






the State Administration of Taxation

Circular of the SAT on Interpretation and Implementation of Some Clauses in the Arrangement between the Mainland and Macao SAR on
the Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income

Guo Shui Han [2005] No. 1081

The bureaus of state taxation and local taxation of all provinces, autonomous regions, municipalities directly under the Central Government,
and cities specifically designated in the state plan, Yangzhou Taxation Institute,

The Arrangement between the Mainland and Macao Special Administrative Region of China on the Avoidance of Double Taxation and Prevention
of Fiscal Evasion with Respect to Taxes on Income (hereinafter referred to as the Arrangement) was signed on December 27, 2003 and
entered into force as of January 1, 2004. With a view to further enhancing the implementation of the Arrangement, in light of the
major problems arising in all areas during the implementation of this Arrangement and according to the negotiations between the tax
authorities of both sides about the implementation of this Arrangement, the interpretations of the relevant clauses and other problems
are hereby clarified as follows:

I.

With regard to the relationship between the stylistic rules and layout of the Arrangement and the tax regulations

The Arrangement is a set of legal norms set forth for the purposes of avoiding double taxation with respect to the same income as
well as coordinating and dividing the taxation jurisdiction of both sides on the basis of the current tax regulations of both sides.
When there is any discrepancy between the Arrangement and tax code, the Arrangement shall prevail. Besides, according to the common
practice, the principle of “choosing the one which is more preferable” shall be complied with in dealing with the relationship between
the Arrangement and the tax regulations, that is to say, when a tax treatment as provided in a tax regulation is more preferable
than that provided in the Arrangement, the tax regulations may prevail.

The stylistic rules and layout of the Arrangement are the same as those of agreements concluded with foreign countries concerning
the avoidance of double taxation, which not only include provisions on the avoidance of double taxation but also the contents concerning
the prevention of fiscal evasion. On this account, all areas should pay attention to preventing any taxpayer from evading any tax
by taking the advantage of the Arrangement.

II.

With regard to the interpretations of the some clauses of the Arrangement

1.

Article 2 , the tax categories of Macao to which the Arrangement shall apply are:

(1)

The occupation tax, which was formerly limited to company employees, is also applicable to civil servants, teachers and other government
personnel. This tax is similar to the individual income tax.

(2)

The income supplement tax, which is similar to the enterprise income tax, includes the taxes levied on the income of individual operators.
No voucher or stamp tax may be imposed as a supplement tax when such tax is collected.

(3)

The voucher & stamp tax as listed in the Arrangement is a supplemental tax, which is not an independent tax.

2.

Article 8 , Shipping, Air and Land Transportation

(1)

This Article applies not only to the Mainland’s tax categories except for income tax, but also to the business tax.

(2)

Paragraph 2. In consideration of the diversified forms of cooperative business operations in the transportation sector and in line
with the common practices, the incomes and profits derived from engaging in trans-regional transport by cooperative enterprises of
both sides, which have been resident legal persons in the Mainland under the relevant law shall be taxed in the Mainland.

3.

Article 11 , Interest

Considering that the Arrangement provides a more preferable restricted tax rate on interest, in order to prevent the abuse of this
Article, all areas should make sure that the persons who enjoy the treatment of this Article are residents of either of or both sides
when implementing the provisions of Paragraphs 2 and 3 of this Article regarding the deduction and exemption of interest income tax.
Upon confirmation of the tax authority of Macao, the “offshore banks” and other financial institutions established in Macao do not
fall into the scope of Macao residents.

4.

Article 15 , Non-independent Personal Services

The term “incomes derived from non-independent personal services” refers to the salaries, wages and other similar remunerations derived
from employment (generally, there are fixed employers). According to the provisions of Item 2 of Paragraph 2, an income may be taxed
at the place where it derives as long as it meets any of the three requirements. With regard to the frequent comes and goes of working
personnel of both sides, and entries and exits or comes and goes within the same day, the State Administration of Taxation, the State
Administration of Taxation addressed the relevant problems by issuing the Circular of the State Administration of Taxation about
Some Problems concerning the Implementation of Tax Agreements and Individual Income Tax Law Relating to Individuals Who Have No Domicile
within the Territory of China (Guo Shui Fa [2004] No.97). Such problems confronted by the trans-regional working personnel should
be handled in accordance with the above-mentioned provisions.

III.

About the determination of identity of residents

1.

With regard to the determination of identity of residents of Macao Special Administrative Region:

According to Article 4 of the Arrangement, the following procedures may be followed in the determination of residents of Macao Special
Administrative Region (hereinafter referred to as the Macao residents):

(1)

The determination of legal person

Whether or not a company, enterprise or any other economic organization is a Macao resident should be determined according to the
Certificates of Resident Status (For the format of the Certificate, See the Annex) issued by Macao Tax authority. At the same time,
the location of its actual management and control center, its legal person certificate (duplicate) and business information (such
as its registered name, business scope, etc.) should be taken into consideration as well.

(2)

The determination of natural person

As for a Macao individual who comes to the Mainland engage in any activity upon employment or provide labor service, his identity
should be determined according to the information about his domicile, employment or labor service, and his tax obligations in Macao
reported by himself, as well as by checking his identity card, home-visiting certificate, information about the company or enterprise
that assigns him to the Mainland, and the Application Form for Certificate of Resident Status (For the format of the Application
Form, see the Annex) issued by, and bears the seal of, Macao tax authority.

2.

With regard to the determination of identity of residents of the Mainland

Where a taxpayer with the identity of a Mainland resident who derives any income from Macao applies for enjoying the treatments of
the Arrangement, he must submit a Certificate of Mainland Resident Status to the Macao tax authority . The aforesaid Certificate
of Mainland Resident Status (See the format of the Certificate of Mainland Resident Status . All areas may print and produce such
certificates on their own initiatives if necessary.) may be issued by the Mainland tax authority at the county (city) level of the
place where the taxpayer is located after the taxpayer’s application documents have been examined and approved by that tax organ.
Where a resident as mentioned in Article 4 of the Arrangement files an application with the Macao tax authority for enjoying the
treatments prescribed in the Arrangement, if the relevant forms (including application forms for enjoying the treatments prescribed
in the Arrangement with the Mainland on the Avoidance of Double Taxation with respect to: 1. dividends and interest proceeds; 2.
royalties and independent personal service proceeds; 3. pension and non-independent personal service proceeds; and 4. other proceeds)
required by the Macao tax authority are subject to certification by the Mainland tax authorities, the taxation bureaus of all areas
should show cooperation.

IV.

The contact and negotiation between the competent authorities of both sides

Where a tax authority at any level raises any objection during the implementation of the Arrangement, and it is necessary to contact
and negotiate with the Macao Special Administrative Region, it shall report to the State Administration of Taxation, which will contact
and negotiate with Macao tax authority in a centralized manner.

Annexes:

1.

The Government of Macao Special Administrative Region ?C Certificate of Resident Status (Omitted)

2.

Macao Special Administrative Region – Application Form for Certificate of Resident Status (Omitted)

3.

The Examination and Approval Form for Certificate of Mainland Resident Status

4.

The Certificate of Mainland Resident Status

State Administration of Taxation

November 14, 2005 htm/e04525.htmAnnex 3

￿￿

￿￿

Annex 3

Examination and Approval Form for Certificate of Mainland Resident Status

￿￿

Applicant

Individual

Name

 

Company or Organization

Name

 

Responsible person

 

Ratified by

 

Approval Date

 

￿￿￿￿(Note: This page should be preserved by the competent tax authority for reference)

￿￿

Annex 4

No.               

Certificate of Mainland Resident Status

￿￿

￿￿￿￿State Administration of Taxation (applicable to implementation of the Arrangement Between the Mainland and Macao for the Avoidance
of Double Taxation)
This is to certify:
￿￿￿￿1. Place of residence or information about the headquarters

Individual

Name:             

Occupation:             

Domicile or Abode:                  

Company or Organization

Name:              

Address of the Headquarters:           ￿￿￿￿￿￿￿￿    

￿￿￿￿2. The following incomes derived (to be derived) from Macao Special Administrative Region

Income Items

Name of Payer

Address of Payer

Amount

Date of Payment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

￿￿￿￿3. When this person pays the taxes on the above-mentioned incomes, he is a Mainland resident as provided for in the Arrangement between
the Mainland and Macao Special Administrative Region of China on the Avoidance of Double Taxation and Prevention of Fiscal Evasion
with Respect to Taxes on Income.

Signed by:              

Date of signature:             
Stamped by of the competent tax authority at the county (city) level



RULES ON THE ADMINISTRATION OF INTERNET NEWS INFORMATION SERVICES

Information Office of the State Council, Ministry of Information Industry

Rules on the Administration of Internet News Information Services

Order No.37 [2005] of the Information Office of the State Council , Ministry of Information Industry

September 25, 2005

Chapter I General Provisions

Article 1

The present Rules are formulated in order to regulate Internet news information services, satisfy the demands of the general public
for Internet news information, safeguard the national security and public interest, protect the legitimate rights and interests of
Internet news information service providers, and promote the healthy and orderly development of Internet news information services.

Article 2

Those who provide Internet news information services with the territory of the People’s Republic of China shall abide by the present
Rules.

News information as mentioned in the present Rules refers to the news information on current affairs and politics, including the relevant
reports and commentaries on politics, economy, military affairs, foreign affairs, and other public affairs, as well as the relevant
reports and commentaries on social emergencies.

Internet news information services as mentioned in the present Rules include the services of publishing news information via Internet,
providing electronic bulletin services on current affairs and politics, and transmitting communicative information on current affairs
and politics to the public.

Article 3

Internet news information service providers shall, when undertaking Internet news information services, abide by the Constitution,
laws and regulations, stick to the direction of serving the people and socialism, uphold the correct media guidance, and maintain
the national interest and public interest.

The state encourages Internet news information service providers to disseminate healthy and civilized news information which is beneficial
to the improvement of the qualities of the nation, beneficial to economic development and conducive to social progress.

Article 4

The Information Office of the State Council is responsible for supervising and administering the Internet news information services
throughout China. The information offices of the people’s government of the provinces, autonomous regions, or municipalities directly
under the Central Government are responsible for supervising and administering the Internet news information services within their
own jurisdiction.

Chapter II Establishment of Internet News Information Service Providers

Article 5

Internet news information service providers are classified into the following three categories:

(1)

Internet news information service providers established by news entities to publish the news other than those that have not been published
and broadcasted by the said entities, to provide electronic bulletin services relating to current affairs and politics, and to transmit
communicative information of current affairs and politics to the public;

(2)

Internet news information service providers established by non-news entities to republish news information, to provide electronic
bulletin services relating to current affairs and politics, and to transmit communicative information of current affairs and politics
to the public;

(3)

Internet news information service providers established by news entities to publish the news information which has been published
or broadcasted by the said news entities.

The establishment of the Internet news information service providers prescribed in Items 1 and 2 of the preceding paragraph shall
be subject to the examination and approval of the Information Office of the State Council according to the Decision of the State
Council on Establishing Administrative License for the Administrative Examination and Approval Items Really Necessary To Be Retained
and other relevant administrative regulations.

The establishment of Internet news information service providers prescribed in Item 3of Paragraph 1 of this Article shall filed for
record with the Information Office of the State Council or the information office of the people’s government of the province, autonomous
region, or municipality directly under the Central Government.

Article 6

Where an Internet news information service provider is jointly established by a news entity and a non-news entity, and the proportion
of equity owned by the news entity is no less than 51%, it shall be deemed as established by the news entity; while if the proportion
of equity owned by the news entity is less than 51%, such an Internet news information service provider shall be deemed as established
by the non-news entity.

Article 7

The applicant shall satisfy the following conditions when applying for the establishment of an Internet news information service provider
as prescribed in Item 1 of Paragraph 1 of Article 5 of the present Rules:

(1)

Having sound rules and regulations on the management of Internet news information services;

(2)

Having not less than 5 full-time news editors who have engaged in the news work in a news entity for more than 3 years;

(3)

Having the necessary place, equipment and funds, and the sources of the funds being legal.

An institution which is allowed to apply for establishing an Internet news information service provider as prescribed in the preceding
paragraph shall be a news entity of the central government, a news entity directly under the people’s government of a province, autonomous
region, or municipality directly under the Central Government, or a news entity directly under the people’s government of a city
where the people’s government of the province or autonomous region is located.

With regard to the examination and approval of the establishment of an Internet news information service provider as prescribed in
Paragraph 1 of this Article, the applicant shall satisfy not only the conditions prescribed in this Article, but also the requirements
of the Information Office of the State Council on the total quantity, structure and layout for the development of the Internet news
information service industry.

Article 8

When applying for establishing an Internet news information service provider as prescribed in Item (2) of Paragraph 1 of Article 5
of the present Rules, the applicant shall not only satisfy the conditions prescribed in Items 1 and 3 of Paragraph 1 of Article
7 of the present Rules, but also have not less than 10 full-time news editors, among whom there shall be not less than 5 news editors
who have engaged in the news work in a news entity for more than 3 years.

An organization that is allowed to apply for establishing an Internet news information service provider as prescribed in the preceding
paragraph shall be a legal person that has lawfully established for more than 2 years to provide Internet information services, and
has not been given any administrative sanction within the latest 2 years due to violation of laws, regulations and rules for the
administration of Internet information services. If the applicant organization is a legal person of enterprise, its registered capital
may not be less than RMB 10 million Yuan.

With regard to the examination and approval of the establishment of an Internet news information service provider prescribed in Paragraph
1 of this Article, the applicant shall satisfy the conditions as prescribed in this Article, but also the requirements of the Information
Office of the State Council on the total quantity, structure and layout for the development of the Internet news information service
industry.

Article 9

No organization may establish an Internet news information service provider in the form of Sino-foreign joint venture, Sino-foreign
cooperation or wholly foreign operation.

Where an Internet news information service provider cooperates with a Sino-foreign joint equity enterprise, or a Sino-foreign cooperative
enterprise or a wholly foreign owned enterprise either inside or outside the territory of China in the business relating to Internet
news information services, it shall report to the Information Office of the State Council for security evaluation.

Article 10

When applying for establishing an Internet news information service provider prescribed in Item 1 or Item 2 of Paragraph 1 of Article
5 of the present Rules, the applicant shall fill out an application registration form, and submit the following materials:

(1)

Rules and regulations on the management of Internet news information services;

(2)

Certificate on the property right or use right of the place, and the certificate on the sources and amount of funds;

(3)

Qualification certificates of news editors.

An institution applying for the establishment of an Internet news information service provider as prescribed in Item 1 of Paragraph
1 of Article 5 of the present Rules shall submit a certificate on the news entity’s eligibility as well. An organization applying
for the establishment of an Internet news information service provider as prescribed in Item 2 of Paragraph 1 of Article 5 of the
present Rules shall submit a testimonial on the status of legal person as well.

Article 11

A news entity of central government shall file an application to the Information Office of the State Council when applying for the
establishment of an Internet news information service provider as prescribed in Item 1 or Item 2 of Paragraph 1 of Article 5 of
the present Rules; while a news entity directly under the people’s government of a province, autonomous region, or municipality directly
under the Central Government or a news entity or non-news entity directly under the people’s government of a city where the people’s
government of a province or autonomous region is located shall file an application to the Information Office of the State Council
through the local information office of the people’s government of the province, autonomous region, or municipality directly under
the Central Government to the Information Office of the State Council.

Where an application is filed through the information office of the people’s government of the province, autonomous region, or municipality
directly under the Central Government, the information office of the people’s government of the province, autonomous region, or municipality
directly under the Central Government shall, within 20 days fro the date of receiving the application, conduct on-site inspection
and propose its preliminary examination opinions to the Information Office of the State Council; the Information Office of the State
Council shall, within 40 days from the date of receiving the preliminary examination opinions, make the decision of whether not to
approve it. If the application is filed directly to the Information Office of the State Council, the Information Office of the State
Council shall, within 40 days from the date of receiving the application, conduct on-site inspection and make the decision of whether
not to approve it. In the case of approval, it shall issue a license for Internet news information services; In the case of disapproval,
it shall notify in writing the applicant of such decision and the reason therefor.

Article 12

Where an Internet news information service provider as prescribed in Item 3 of Paragraph 1 of Article 5 of the present Rules is established
by a news entity of the central government, it shall be filed the Information Office of the State Council for the record within 1
month from the date of providing Internet news information services; if it is established by any other news entity, it shall be filed
for the record with the local information office of the people’s government of the province, autonomous region, municipality directly
under the Central Government within 1 month from the date of providing Internet news information services.

When going through the formalities for archival filing, the applicant shall fill out a registration from of archival filing, and submit
its rules and regulations on the management of Internet news information services as well as the certificate on the news entity’s
eligibility.

Article 13

An Internet news information service provider shall, according to the relevant administrative regulations for the administration of
Internet information services, go through the relevant formalities with the telecommunication administrative department after being
established under the present Rules.

Article 14

If an Internet news information service provider as prescribed in Item 1 or Item 2 of Paragraph 1 of Article 5 of the present Rules
plans to change its name, domicile, legal representative, person-in-charge, equity structure, service items, website or web address,
etc., it shall apply to the Information Office of the State Council for reissuing the license for Internet news information services.
In accordance with the relevant provisions on telecommunication administration, where the change needs to be reported to the competent
telecommunication department for approval or for issuance of a new license or for record, such matters shall be handled according
to the relevant provisions.

If an Internet news information service provider as prescribed in Item 3 of Paragraph 1 of Article 5 of the present Rules plans to
change its name, domicile, legal representative, person-in-charge, equity structure, website or web address, etc., it shall report
again to the original archival filing organ for record. However, if, the proportion of equity owned by the news entity is less than
51% after the equity structure is changes, the said news entity shall go through the formalities for licensing according to the present
Rules. In accordance with the relevant provisions on telecommunication administration, where the change needs to be reported to the
competent telecommunication department for approval, for the issuance of a permit or for record, such matters shall be handled according
to the relevant provisions.

Chapter III Regulation of Internet News Information Services

Article 15

An Internet news information service provider shall provide Internet news information services according to the approved service items.

Article 16

In case an Internet news information service provider as prescribed in Item 1 or Item 2 of Paragraph 1 of Article 5 of the present
Rules republishes any news information or transmits any communicative information on current affairs and politics to the public,
it shall republish and transmit the news information published by either news entities of the Central Government or news entities
directly under the people’s government of a province, autonomous region, or municipality directly under the Central Government, give
a clear indication of the sources of the news information, and may not misrepresent the contents of the original news information.

An Internet news information service provider as prescribed in Item 2 of Paragraph 1 of Article 5 of the present Rules may not publish
the news information gathered and edited by itself.

Article 17

In case an Internet news information service provider as prescribed in Item 1 or Item 2 of Paragraph 1 of Article 5 of the present
Rules republishes any news information, it shall conclude a written agreement with the news entity of the Central Government or the
news entity directly under the people’s government of a province, autonomous region, or municipality directly under the Central Government.
The Internet news information service provider established by a news entity of the Central Government shall submit a copy of the
agreement to the Information Office of the State Council for record; while any other Internet news information service provider shall
submit a copy of the agreement to the relevant local information office of the people’s government for record.

A news entity of the Central Government or a news entity directly under the people’s government of a province, autonomous region,
or municipality directly under the Central Government shall check the other party’s license for Internet news information services
when concluding the agreement as prescribed in the preceding paragraph. And it may not provide any news information to an entity
that has no license for Internet news information services.

Article 18

In case a news entity of the Central Government plans to cooperate with an Internet news information service provider as prescribed
in Item 2 of Paragraph 1 of Article 5 of the present Rules in Internet news services other than making contributions, it shall,
10 days before engaging in business cooperation, report it to the Information Office of the State Council; in case any other news
entity plans to cooperate with an Internet news information service provider prescribed in Item 2 of Paragraph 1 of Article 5 of
the present Rules in Internet news services other than making contributions, it shall, 10 days before engaging in business cooperation,
report it to the relevant local information office of the people’s government of the province, autonomous region, or municipality
directly under the Central Government.

Article 19

The news information published or transmitted by an Internet news information service provider as well as its any electronic bulletin
service on current affairs and politics may not include any of the following contents:

(1)

Those in contravention of basic principles as determined in the Constitution;

(2)

Those that endanger national security, disclose state secrets, subvert the power of the State, or undermine national unification;

(3)

Those harmful to the honor or interests of the State;

(4)

Those provoking ethnic hatred or discrimination, or undermining ethnic solidarity;

(5)

Those breaking religious policies of the State, or blazoning forth evil cults or superstition;

(6)

Those spreading any rumor to disturb the public order and destroy the social stability;

(7)

Those spreading obscenity, eroticism, gambling, violence and terrorism or abetting the commission of crimes;

(8)

Those that insult or slander others, or infringe upon the legitimate rights and interests of others;

(9)

Those that instigate others to hold any assembly, to form any association, or to parade or demonstrate in unlawful ways, or assemble
a crowd to disturb the public order;

(10)

The activities carried out in the name of an illegal non-government organization;

(11)

Those containing other contents as prohibited by any law or administrative regulation of the State.

Article 20

An Internet news information service provider shall establish the liability system for news content management. It may not publish
or transmit the news information containing any content in violation of Paragraph 1 of Article 3 or Article 19 of the present Rules.
Where the electronic bulletin services on current affairs and politics provided by it is found to contain any content violating Paragraph
1 of Article 3 or Article 19 of the present Rules, it shall immediately cut out such content, keep relevant records, and provide
them to the relevant department for reference in case of need.

Article 21

An Internet news information service provider shall put on record the contents of the news information it has published or transmitted,
as well as the time and Internet web address. The back-up of such records shall be kept for at least 60 days, and shall be available
to the relevant department for reference in case of need.

Chapter IV Supervision and Administration

Article 22

The Information Office of the State Council and the information office of the people’s government of each province, autonomous region,
or municipality directly under the Central Government shall carry out supervision over and inspection of Internet news information
service providers according to law; the relevant entities and individuals shall be cooperative in this regard.

The working staff of the Information Office of the State Council or the information office of each people’s government of the province,
autonomous region, or municipality directly under the Central Government shall show their law enforcement certificates when conducting
on-site inspections according to law.

Article 23

The Information Office of the State Council and the information office of the people’s government of each province, autonomous region,
municipality directly under the Central Government shall carry out supervision over the Internet news information services. Where
the news information published or transmitted by an Internet news information service provider or the electronic bulletin services
provided by it is found to contain any content in violation of Paragraph 1 of Article 3 or Article 19 of the present Rules, it
shall notify the Internet news information service provider to cut out such content. The Internet news information service provider
shall cut out such content immediately, keep relevant records, and provide them to the relevant department for reference in case
of need.

Article 24

An Internet news information service provider as prescribed in Item 1 or Item 2 of Paragraph 1 of Article 5 of the present Rules
shall submit an annual business report to the Information Office of the State Council within the prescribed time limit each year
if it is established by a news entity of the Central Government; while if it is established by any other news entity or non-news
entity, it shall, through the relevant local information office of the people’s government of the province, autonomous region, or
municipality directly under the Central Government, submit an annual business report to the Information Office of the State Council
within the prescribed time limit each year.

The Information Office of the State Council may, on the basis of the reported information, conduct inspections of the Internet news
information service provider’s management rules, personnel qualifications and service items, etc.

Article 25

Internet news information service providers shall submit themselves to the public supervision.

The Information Office of the State Council shall publicize its website, web address and telephone number for tip-offs, accept the
tip-offs of the general public and deal with them according to law. The tip-offs falling within the scope of other administrative
department’s duties shall be transferred to that department.

Chapter V Legal liabilities

Article 26

Where an Internet news information service provider unlawfully provides Internet news information services in violation of Paragraph
2 of Article 5 of the present Rules, or provides Internet news information services beyond the ratified service items in violation
of Article 15 of the present Rules, the Information Office of the State Council or the information office of the people’s government
of the province, autonomous region, municipality directly under the Central Government ((as the case may be) shall, within the limits
of their respective functions and powers, order it to stop the illegal activities, and impose on it a fine of not less than 10,000
Yuan nor more than 30,000 Yuan. If the circumstances are serious, the telecommunications administrative department shall, in light
of the written confirmation opinions of the Information Office of the State Council or the local information office of the people’s
government of the province, autonomous region, or municipality directly under the Central Government, and in accordance with the
relevant administrative regulations for the administration of Internet information services, stop the Internet news information service
provider’s Internet information services or order the Internet access service provider to stop providing access service to the Internet
news information service provider.

Article 27

Where the news information published or transmitted by an Internet news information service provider contains any content prohibited
in Article 19 of the present Rules, or, in this case, the Internet news information service provider refuses to perform its obligations
of cutting out such content, the Information Office of the State Council or the relevant local information office of the people’s
government of the province, autonomous region, municipality directly under the Central Government (as the case may be) shall give
it a warning, and may impose on it a fine of 10,000 Yuan but not less than 30,000 Yuan, in addition. If the circumstances are serious,
the telecommunications administrative department shall, in light of the written confirmation opinions of the relevant competent department,
and in accordance with the relevant administrative regulations for the administration of Internet information services, stop the
Internet news information service provider’s Internet information services or order the Internet access service provider to stop
providing access service to the Internet news information service provider.

Where the news information published or transmitted by an Internet news information service provider contain any content in violation
of Paragraph 1 of Article 3 of the present Rules, the Information Office of the State Council or the information office of the people’s
government of the province, autonomous region, or municipality directly under the Central Government (as the case may be) shall,
within the limits of their respective functions and powers, punish the Internet news information service provider in light of the
types and extents of punishment as prescribed in the preceding paragraph.

Article 28

Where an Internet news information service provider, in violation of Article 16 of the present Rules, republishes any illegally sourced
news information, or publishes any news information gathered and edited by itself, or misrepresents any content of the original news
information, the Information Office of the State Council or the information office of the people’s government of the province, autonomous
region, municipality directly under the Central Government (as the case may be) shall, within the limits of their respective functions
and powers, order it to make corrections, give it a warning and impose on it a fine of not less than 5,000 Yuan nor more than 30,000
Yuan.

Where an Internet news information service provider fails to indicate the source of any news information in violation of Article 16
of the present Rules, the Information Office of the State Council or the relevant local information office of the people’s government
of the province, autonomous region, or municipality directly under the Central Government (as the case may be) shall, within the
limits of their respective functions and powers, order it to make corrections, give it a warning, and may impose on it a fine of
not less than 5,000 Yuan nor more than 20,000 Yuan.

Article 29

Where an Internet news information service provider commits any of the following acts in violation of violates the present Rules,
the Information Office of the State Council or the relevant local information office of the people’s government of the province,
autonomous region, or municipality directly under the Central Government (as the case may be) shall, within the limits of their respective
functions and powers, order it to make corrections, give it a warning, and may impose on it a fine of not more than 30,000 Yuan:

(1)

Failing to perform the obligation of applying for the record;

(2)

Failing to perform the obligation of making a report;

(3)

Failing to perform the obligations of making records, preserving or providing the back-up of the records.

Article 30

Where an Internet news information service provider violates Paragraph 2 of Article 17 of the present Rules by providing news information
to an entity that has no license for Internet news information services, the persons in charge and other persons held directly liable
shall be given administrative sanctions in accordance with the law.

Article 31

Where any of working staff of the Information Office of the State Council or of the local information office of the people’s government
of a province, autonomous region, or municipality directly under the Central Government, or any of working staff of the telecommunication
administrative department neglects his duties, abuses his power, practices favoritism, thus causing serious consequence, he shall
be investigated for criminal liabilities according to law if a crime is constituted; if no crime is constituted, the persons in charge
and other persons held directly responsible shall be given administrative sanctions in accordance with the law.

Chapter VI Supplementary Provisions

Article 32

News entities as mentioned in the present Rules refers to the newspaper offices, radio stations, television stations and news agencies
established according to law; among which, news entities of the central government shall include the news entities established by
all relevant departments of the state organs under the Central Government.

Article 33

The present Rules shall go into effect as of the date of promulgation.

Information Office of the State Council

Ministry of Information Industry

September 25, 2005

 
Information Office of the State Council, Ministry of Information Industry
2005-09-25

 



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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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