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METHODS FOR THE FORMATION OF THE JUDICIARY OF THE MACAO SPECIAL ADMINISTRATIVE REGION

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The Preparatory Committee for the Macao Special Administrative Region of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1999-07-03 Effective Date  1999-07-03  


Methods for the Formation of the Judiciary of the Macao Special Administrative Region

(Adopted at the Ninth Plenary Session of the Preparatory Committee for the Macao Special Administrative Region of the National People’s Congress on July 3, 1999)

    Article 1  These Methods are formulated in accordance with the Basic Law of Macao Special Administrative Region (hereinafter referred
to as the Basic Law) and the Decision of the National People’s Congress on the Method for the Formation of the First Government,
the First Legislative Council and the First Judiciary of the Macao Special Administrative Region in order to organize the judiciary
of the Macao Special Administrative Region.

    Article 2  The organization of the judiciary of the Macao Special Administrative Region shall reflect the principles of State sovereignty
and smooth transition, and shall comply with the practical situation of Macao.

    Article 3  The Macao Special Administrative Region shall be vested with independent judicial power, including that of final adjudication.

    Article 4  The primary courts, intermediate courts, and Court of Final Appeal shall be established in the Macao Special Administrative
Region.

    Article 5  The primary courts are the courts of first instance in the Macao Special Administrative Region.

    Special courts may be established within the primary courts if necessary. The previous systems concerning
criminal prosecution shall be maintained.

    Article 6  An administrative court shall be established in the Macao Special Administrative Region to exercise jurisdiction over
administrative and tax cases. If a party refuses to accept a judgment by the administrative court, he or she shall have the right
to file an appeal with an intermediate court.

    Article 7  The intermediate courts are the appellate courts for the primary courts and the administrative court, and are at the same
time the court of first instance for relatively important cases.

    Article 8  The Court of Final Appeal is the supreme court in the Macao Special Administrative Region and exercises the power of final
adjudication of the Macao Special Administrative Region.

    The Court of Final Appeal hears appellate cases from inferior courts as well as important first instance cases.

    Article 9  The courts of the Macao Special Administrative Region shall have jurisdiction over all cases in the Region, except that
the restrictions on their jurisdiction imposed by the legal system and principles previously in force in Macao shall be maintained.    

    The courts of the Macao Special Administrative Region shall have no jurisdiction over acts of State such as
defence and foreign affairs.    

    Article 10  The number of judges in courts of the Macao Special Administrative Region at each level shall be: no more than 18 judges
for the  primary court, no more than 2 judges for the administrative court, 5 judges for the intermediate court, 3 judges
for the Court of Final Appeal.

    Article 11  Judges of the courts of the Macao Special Administrative Region at all levels shall be appointed by the Chief Executive
on the recommendation of an independent commission composed of local judges, lawyers and eminent persons.

    Judges shall be chosen on the basis of their Professional qualifications. Judges shall be chosen mainly from
local legal professionals who are permanent residents of the Region and who meet the criteria, and qualified judges of foreign nationality
may also be employed.

    Article 12  The primary courts, intermediate courts and Court of Final Appeal each shall have a president who shall be chosen from
among judges and appointed by the Chief Executive.

    The President of the Court of Final Appeal of the Macao Special Administrative Region shall be a Chinese citizen
who is a permanent resident of the Region.

    The appointment and removal of the President of the Court of Final Appeal shall be reported to the Standing
Committee of the National People’s Congress for the record.

    Article 13  The procuratorates shall be established in the Macao Special Administrative Region. The procuratorates shall exercise
procuratorial functions as vested by law, independently and free from any interference.

    Article 14  The procuratorates of the Macao Special Administrative Region shall have one Procurator-General, and approximately 20
procurators.

    The Procurator-General of the Macao Special Administrative Region shall be a Chinese citizen who is a permanent
resident of the Region.

    The Procurator-General of the Macao Special Administrative Region shall be nominated by the Chief Executive
and appointed by the Central People’s Government.

    Procurators shall be nominated by the Procurator-General and appointed by the Chief Executive.

    Article 15  The president and judges of the courts of the Macao Special Administrative Region at all levels, the Procurator-General,
and procurators must uphold and abide by the Basic Law, and shall have Bachelor degree or higher in laws and shall have legal profession
experience.

    Article 16  When assuming office, the President of the Court of Final Appeal and Procurator-General, judges and procurators of the
Macao Special Administrative Region must take an oath in accordance with the Basic Law.






DONATION FOR PUBLIC WELFARE UNDERTAKINGS

Category  BASCI CIVIL LAW Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1999-06-28 Effective Date  1999-09-01  


Law of the People’s Republic of China on Donation for Public Welfare Undertakings

Contents
Chapter I  General Provisions
Chapter II  Donation and Acceptance of Donation
Chapter III  Usage and Management of Donated Property
Chapter IV  Preferential Measures
Chapter V  Legal Liability
Chapter VI  Supplementary provisions

(Adopted at the Tenth Meeting of the Standing Committee of the Ninth National People’s Congress on June 28,1999; promulgated by the
Order No. 19 of the President of the People’s Republic of China on June 28, 1999 and effective as of September 1, 1999)

Contents

    Chapter I  General Provisions

    Chapter II  Donation and Acceptance of Donation

    Chapter III  Usage and Management of Property Donated

    Chapter IV  Preferential Measures

    Chapter V  Legal Liability

    Chapter VI  Supplementary Provisions

Chapter I  General Provisions

    Article 1  This Law is enacted with a view to encouraging donation, standardizing the act of donation and acceptance of donation,
protecting the lawful rights and interests of donors, donees and beneficiaries, and promoting the development of public welfare undertakings.

    Article 2  On the condition that natural persons, legal persons, and other organizations voluntarily donate property to legally established
public welfare associations and not-for-profit public welfare institutions without any compensation, and the donated property is
used for public welfare undertakings, this Law shall be applied.

    Article 3  Public welfare undertakings mentioned in this Law refer to following matters:

    (1)activities of relieving disasters, helping the poor, assisting the
disabled as well as other social groups and individuals in trouble;

    (2)education, science, culture, public health, and sports;

    (3)environmental protection, construction of public facilities;

    (4)other social and public welfare undertakings promoting the development and progress of society.

    Article 4  Donation shall be made on a voluntary basis and without compensation, compulsory apportions or apportions in disguised
form are prohibited, the engagement of for-profit activities in the name of donation shall not be permitted.

    Article 5  The use of donated property shall be subject to the willingness of a donor, and conforms to the purpose of public welfare,
the donated property shall not be misappropriated for other purposes.

    Article 6  The making of donation shall be in conformity with laws and regulations; it shall not go against social morality, nor
impair public interests and other citizens’ legal rights and interests.

    Article 7  Property and its increment accepted as donation by public welfare associations is social and public property, which is
protected by laws of the State; no unit or individual may appropriate, seize, or damage it.

    Article 8  The State supports the development of public welfare undertakings, and gives supports and preferential treatments to public
welfare associations and not-for-profit public welfare institutions with a nature of.

    The State encourages natural persons, legal persons and other organizations to make donations to public welfare
undertakings.

    Natural persons, legal persons and other organizations making outstanding contributions to donation for public
welfare undertakings are to be given commendation by the people’s governments or the relevant departments. Before giving public commendation
to a donor, comment for the donor shall be obtained in advance.
Chapter II  Donation and Acceptance of Donation

    Article 9  Natural persons, legal persons and other organizations may make donations to public welfare associations and not-for-profit
public welfare institutions comforting to their wishes of making donation. The property they donate shall be legal property on which
they have the right of disposition.

    Article 10  Public welfare associations and not-for-profit public welfare institutions may accept donation in accordance with this
Law.

    Public welfare associations mentioned in this Law refer to legally established foundations, charity organizations
and other associations that hold the principle of developing public interests.

    Not-for-profit public welfare institutions mentioned in this Law refer to legally established educational
institutions, institutions for scientific research, medical and public health institutions, social and public cultural institutions,
social and public physical institutions and social welfare institutions, etc, which are engaged in public welfare undertakings and
do not aim at making profit.

    Article 11  When natural disaster happens or the donors out of the territory require the people’s governments at or above the county
level or their departments to be the donees, the people’s governments at or above the county level or their departments may accept
the donation, and manage the donated property according to the relevant provisions of this Law.

    The people’s governments at or above the county level or their departments may transfer the property they
accept as donation to public welfare associations or not-for-profit public welfare institutions; may also distribute the property
in light of the donors’ wishes or use it to initiate public welfare work, however, the people’s governments at or above the county
level and their departments themselves shall not a beneficiary.

    Article 12  Donors may make a donation agreement with donees in terms of the sorts, quality, quantity and use of donated property.
Donors have the right to decide quantity, use and forms of donation.

    Donors shall perform the donation agreement according to law, and transfer the donated property to donees
in accordance with the time limit and forms agreed upon in the agreement.

    Article 13  When donating property to initiate a public welfare project, the donor shall make a donation agreement with the donor,
agreeing on the capital, construction, management and use of the projects.

    For a donated public welfare project, the unit accepting the donation shall undergo examination and approval
procedures according to the provisions of the State, and shall alone, or together with the donor, organize the construction. The
quality of the project shall conform to the standards of the State.

    After the completion of a donated public welfare project, the unit accepting the donation shall report particulars
to the donors about the construction, use of construction capital, and check-and-acceptance of quality of the project.

    Article 14  A donor may head the donated project with his name for commemoration; for a project wholly donated by a donor or a project
constructed with the capital mainly donated by the donor, the donor may propose the post_title of the project, and then submit to the
people’s government at or above the county level for approval.

    Article 15  As to property donated by donors outside the territory, the donee shall undergo entry procedures according to the relevant
provisions of the State; where the donated property is under the management of license, the donee shall undergo the procedures for
applying and obtaining a license according to the relevant provisions of the State, the Customs shall check, clear and supervise
the property on the basis of the license.

    If overseas Chinese make donations, the department of the people’s governments at or above the county level
in charge of overseas Chinese affairs may assist to undergo entry procedures, and provide help to the donors in implementing the
projects.
Chapter III  Usage and Management of Donated Property

    Article 16  After accepting a donation, the donee shall issue a legal and valid receipt to the donor, register the donated property
on a record, and management the property in a proper way.

    Article 17  Public welfare associations shall use the donated property to imburse activities and undertakings conforming to their
principles. Property donated for salvation shall be promptly used for salvation. The amount of capital used for imbursing public
welfare undertakings by a foundation every year shall not be less than the proportion prescribed by the State.

    A public welfare association shall strictly abide by the relevant provisions of the State, and actively keep
and increase the value of the donated property according to principle of legality, safety and effect.

    A not-for-profit public welfare institution shall use the donated property to develop public welfare undertakings
of its own, and shall not misappropriate the property for other purposes.

    As to property not easy for storage or transportation, or exceeding actual necessity, the donee may sell it,
the income therefrom shall be used for the purpose of the donation.

    Article 18  Where a donation agreement has been made between the donee and the donor, the donee shall use the property according to
the purpose agreed upon, and shall not change the uses of the donated property without authorization. If it is really necessary to
change the uses of the property, consent form the donor shall be obtained.

    Article 19  The donees shall, according to the relevant provisions of the State, establish and perfect financial and accounting systems
and systems for using donated property, strengthen the management of donated property.

    Article 20  The donees shall report to the relevant governmental departments the use and management of the donated property every
year, and accept supervision. When necessary, the relevant governmental departments may audit their finance.

    The Customs shall conduct supervision and management on donated articles import duties of which are reduced
or exempted,

    The overseas Chinese affairs department under the people’s government at or above the county level may take
part in supervising the use and management of the property donated by oversea Chinese.

    Article 21  Donors have rights to donees with respect to the use and management of donated property, and put forward suggestion and
opinion. As to the inquiries of the donors, the donees shall make truthful replies.

    Article 22  Donees shall publicize the donation and use as well as management of the donated property, and accept supervision of the
society.

    Article 23  Public welfare associations shall practise strict economy, and decrease managerial cost; salary of staff members and administrative
expenses shall be paid from interest and other income according to the standards prescribed by the State.
Chapter IV  Preferential Measures

    Article 24  When donating property for public welfare undertakings according to the provisions of this Law, corporations and other
enterprises may be given  preferential treatment in enterprise income tax according to the provisions of laws and administrative
regulations.

    Article 25  When donating property for public welfare undertakings according to the provisions of this Law, Natural persons, individual
businesses of industry and commerce may be given preferential treatment in individual income tax according to the provisions of laws
and administrative regulations.

    Article 26  As to materials donated from abroad to public welfare associations and not-for-profit public welfare institutions for
public welfare undertakings, import duties and value-added tax in import may be reduced or exempted according to the provisions of
laws and administrative regulations.

    Article 27  As to donated projects, the local people’s governments shall give support and preference.
Chapter V  Legal Liability

    Article 28  Without permission of a donor, if a donee presumes to change the nature and uses of the donated property, the relevant
department of the people’s government at or above the county level shall order to make corrections, and give a warning. Where the
making of corrections is refused, upon approval of the donor, the people’s government at or above the county level may hand over
for management the property to public welfare associations or not-for-profit public welfare institutions that have identical or similar
principles.

    Article 29  Whoever misappropriates, seizes or embezzles donated property shall be ordered by the relevant departments of the people’s
government at or above the county level to return the misused money or articles, and shall also impose a fine; the direct responsible
persons shall be punished by units to which they belong according to the relevant provisions; where a crime is constituted, criminal
liability shall be investigated according to law.

    The money and articles returned or recovered according to the provisions of the preceding paragraph shall
be used for their original purposes and uses.

    Article 30  In the course of donation, whoever commits any one of the following acts shall be punished according to the relevant provisions
of laws and regulations; where a crime is constituted, criminal liability shall be investigated according to law.

    (1)to evade foreign exchange, to wangle foreign exchange;

    (2)to evade or dodge tax;

    (3)to engage in smuggling activities;

    (4)with no permission of the Customs and not paying due tax, to sell, transfer or use for other purposes within
the territory the donated property that is imported with a reduced or exempted tax.

    Article 31  The staff members in the unit accepting the donation who abuse their powers, neglect their duties or practise favoritism
for personal interests, thereby causing heavy losses to donated property, shall be punished by the unit to which they belong according
to the relevant provisions; where crimes are constituted, criminal liabilities shall be investigated.
Chapter VI  Supplementary provisions

    Article 32  This Law shall take effect as of September 1, 1999.






CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE GENERAL OFFICE OF THE MINISTRY OF SCIENCE AND TECHNOLOGY ON TRANSMITTING THE CIRCULAR ON THE IMPLEMENTATION OF INTEREST RATE FOR EXPORT CREDIT OF HIGH/NEW TECHNOLOGICAL PRODUCTS

The General Office of the Ministry of Foreign Trade and Economic Cooperation, the General Office of the Ministry of Science And Technology

Circular of the General Office of the Ministry of Foreign Trade and Economic Cooperation and the General Office of the Ministry of
Science and Technology on Transmitting the Circular on the Implementation of Interest Rate for Export Credit of High/new Technological
Products

WaiJingMaoJiZi [1999] No.14

September 24, 1999

Foreign trade and economic cooperation commissions (departments, bureaus) and commissions of science and technology of the various
provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State
plan, Shenyang, Suzhou, Wuhan, Nanjing, Guangzhou, Chengdu and Xi’an City, and foreign trade and economic enterprises managed by
the Central Government:

With a view to implementing the strategy of “flourishing trade by means of science and technology” and to pushing forward export of
high/new technological products, the Import and Export Bank of China has issued the Circular on the Implementation of Interest Rate
for Export Credit of High/new Technological Products (JinChuYinJiFa [1999] No. 205). The Circular is hereby transmitted to you, and
please strengthen communication and coordination with the Import and Export Bank of China and its representative offices at the various
localities. If you have any question in implementing it, please contact in time with the Department of Science and Technology of
the Ministry of Foreign Trade and Economic Cooperation and the Department of Development Planning of the Ministry of Science and
Technology.

This is hereby the notification.



 
The General Office of the Ministry of Foreign Trade and Economic Cooperation, the General Office of the Ministry of
Science And Technology
1999-09-24

 







CIRCULAR THE GENERAL OFFICE OF THE GENERAL ADMINISTRATION OF CUSTOMS ON TON THE EXEMPTION OF SUPERVISION FEE CONCERNING XINJIANG COTTON UNDER THE POLICY OF STALLING COTTON IN CUSTOMS WAREHOUSES FOR PROCESSING TRADE

The General Office of the General Customs Administration

Circular the General Office of the General Administration of Customs on ton the Exemption of Supervision Fee Concerning Xinjiang
Cotton under the Policy of Stalling Cotton in Customs Warehouses for Processing Trade

ShuBanShui [1999] No.313

October 22, 1999

Guangdong Customs Bureau and all customs bureaus directly under the General Administration of Customs:

After the distribution of the Circular on Printing and Distributing the Interim Measures for the Administration of Stalling Xinjing
Cotton in Customs Warehouses for Processing Trade (JiJingMao [1999] No. 352) and the Circular of the General Administration of Customs
on Distributing the Interim Measures for the Administration of the Warehouses for Stalling Xinjiang Cotton for Processing Trade and
of the Wares Thereof (ShuShui [1999] No.238), some customs bureaus have reported to the General Administration of Customs for instructions
on whether supervision fee should be levied on Xinjiang cotton which is stalled in customs warehouses for processing trade (hereinafter
referred to as Xinjiang Cotton). Taking into consideration that the objective of the Xinjiang Cotton policy is to solve the overstock
problem of Xinjiang Cotton, to lighten enterprises’ burden, to encourage domestic enterprises to use Xinjiang cotton for the export
processing trade, and to maintain and increase the market share of China’s textiles and clothing exports, the General Administration
of Customs decided, after careful study, to exempt both the Xinjiang Cotton stalled in customs warehouses and the Xinjiang Cotton
imported by enterprises of processing trade from these warehouses from customs supervision fee.

Please act upon accordingly, and contact the Department of Tariff of the General Administration of Customs for any problems that occur
during the implementation.



 
The General Office of the General Customs Administration
1999-10-22

 







SUPPLEMENTARY CIRCULAR OF THE GENERAL ADMINISTRATION CUSTOMS, THE STATE ECONOMIC COMMISSION,THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING SOME ISSUES OF THE CLASSIFIED MANAGEMENT STANDARD OVER THE ENTERPRISES

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

Supplementary Circular of the General Administration Customs, the State Economic Commission,the Ministry of Foreign Trade and Economic
Cooperation Concerning some Issues of the Classified Management Standard over the Enterprises

ShuJian [1999] No.817

December 13, 1999

The General Administration Customs of Guangdong branch, the customs directly under the General Administration Customs, trade and economic
commissions (economic commissions and planning and economic commissions) and foreign trade and economic commissions (departments,
bureaus) of the various provinces, autonomous regions, municipalitie directly under the Central Government and municipalities separately
listed on the State plan:

With a view to further doing well the work of the classified management over the enterprises and to perfecting in coordination the
bank deposit account system for processing trade enterprises so as to better embodying the spirit in evaluating and approving the
classified management over the enterprises, of differentiation of technical infringements and substantial infringements committed
by enterprises, approved by the State Council after request for its instructions, the supplementary notice on the issues concerning
the evaluation of the standards for the classified management over the enterprises are made and notified as follows:

1.

For enterprises conforming to the conditions prescribed in Article 29 of the Detailed Rules for the Implementation of the Measures
for the Classified Management over the Enterprises of the Customs of the People’s Republic of China (ShuJian [1999] No. 345), the
bank deposit account system shall not be implemented to them by the Customs.

For processing trade enterprises evaluated and approved in accordance with the Article 6 of the Measures for the Implementation of
the Classified Management over the Enterprises of the Customs of the People’s Republic of China (ShuJian [1999] No. 240) to be applicable
to Category A management, the Customs shall continue to implement to them “the shadow” system of the bank deposit account, and accordingly
shall be exempt from the deposit for security if the commodities they import belong to the category of restrictive import commodities.

The standards stipulated in the relevant documents must strictly be followed in evaluating and approving enterprises applicable to
Category a management; meanwhile a dynamic management of the enterprises shall be implemented. In case the enterprises are founded
out to have committed smuggling or infringements. The Customs shall readjust in time their management classification.

2.

The fines for the enterprises infringement below 10000 yuan RMB (including 10000 yuan RMB) shall not be filed as record for evaluation
and approval of Category C management.

3.

Enterprises having committed infringements twice or for several times a year but their infringements are not exceeding 0.1% of the
number of their declarations at the customs, shall not be filed as record for evaluation and approval of Category C management.

4.

Infringements occurred after June 1, 1999 shall be filled as record for evaluation and approval of Category C management.

5.

The various Customs should make, in accordance with the provisions of the present Notice, correspondent readjustment of the management
classification applicable to the enterprises evaluated and approved before.

6.

The various Customs are requested to publish on December 20, 1999 the manuscript of the announcement appended to this Notice.

The above should be enforced. If any question arises, please report in time.

Attachment: Announcement of the Customs over Regulating the Classified Management Standard over the Enterprises(omitted).



 
The General Administration Customs, the Ministry of Foreign Trade and Economic Cooperation, the State Economic Commission
1999-12-13

 







AMENDMENT TO CRIMINAL LAW

Category  CRIMINAL Organ of Promulgation  The Standing  Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1999-12-25 Effective Date  1999-12-25  


Amendment to Criminal Law of the People’s Republic of China


Appendix: Criminal Law of the People’s Republic of China(Version 1999)
Contents
Chapter I  The Tasks, Basic Principles and Scope of Application of the
Chapter II  Crimes
Chapter III  Punishments
Chapter IV  The Concrete Application of Punishments
Chapter V  Other Provisions
Chapter I  Crimes of Endangering the State Security
Chapter II  Crimes of Endangering Public Security
Chapter III  Crimes of Undermining the Socialist Market Economic Order
Chapter IV  Crimes of Infringing upon the Rights of the Person and the
Chapter V  Crimes of Property Violation
Chapter VI  Crimes of Obstructing the Administration of Public Order
Chapter VII  Crimes of Endangering Interests of National Defence
Chapter VIII  Crimes of Embezzlement and Bribery
Chapter IX  Crimes of Dereliction of Duty
Chapter X  Crimes Contrary to Duties Committed by servicemen
Supplementary Provisions
Appendix I
Appendix II

(Adopted at the 13th Meeting of the Standing Committee of the Ninth National People’s Congress on December25,1999 and shall come
into force as ?of the date of promulgation)

    In order to punish the crimes disrupting the order of socialist market economy and safeguard the smooth progress
of socialist modernization construction, Criminal Law is supplemented and amended as follows:

    1. A new clause shall be added to behind Article 162 and arranged as part of contents of Article 162:
Whoever conceals or intentionally destroys accounting vouchers, account books or financial and accounting reports that shall be kept
according to law, shall, If circumstances are serious, be sentenced to fixed-term imprisonment of not more than five years or criminal
detention, and shall impose or shall impose only, a fine of not less than 20,000 yuan and not more than 200,000 yuan.

    Where a unit commits the crime mentioned in the preceding paragraph,
it is fined, and the persons who are directly in charge and the other
persons who are directly responsible for the crime shall be punished in
accordance with the provisions of the preceding paragraph.

    2. The Article 168 of Criminal Law shall be amended as:

    If the staff of a State-owned company or enterprise, because of
seriously neglecting his duties or abusing his powers, causes bankruptcy
or heavy losses to the company or enterprise, and results in heavy losses
of the interests of the state, he shall be sentenced to fixed-term
imprisonment of not more than three years or criminal detention: if
resulting in especially heavy losses of the interests of the state, he
shall be sentenced to fixed-term imprisonment of not less than three years
but not more than seven years.

    If the staff of a State-owned institution commits the acts mentioned in the preceding paragraph, and results
in heavy losses of the interests ?of the state, he shall be punished in accordance with the provisions of preceding paragraph.

    If the staff of a State-owned company, enterprise or institution practices illegalities for personal interests
or by fraudulent means and commits the crimes mentioned in the preceding two paragraphs, he shall be given a heavier punishment
in accordance with the provisions of the first paragraph.

    3. The Article 174 shall be amended as:

    Whoever establishes commercial banks, stock exchanges, futures exchanges, securities companies, futures brokering
companies, insurance companies or any other financial departments without the approval of the relevant state departments in charge,
he shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall impose, or shall
impose only, a fine of not less than 20,000 yuan but not more than 200,000 yuan;

    If the circumstance is serious, he shall be sentenced to fixed-term imprisonment of not less than three years
but not more than 10 years and shall also impose a fine of not less than 50,000 yuan but not more than 500,000 yuan.

    Whoever forges, alters or transfers the licenses for operation or documents of approval of commercial banks,
stock exchanges, futures exchanges, securities companies, futures brokering companies, insurance companies, or any other financial
institutions shall be punished in accordance with the provisions of the preceding paragraph.

    Where a unit commits any of the crimes mentioned in the preceding two paragraphs, it shall be fined, and
the persons who are directly in charge and the other persons who are directly responsible for the crime shall be punished in accordance
with the provisions of the first paragraph.

    4. Article 180 shall be amended as:

    Any insider of inside information about any stock exchange transactions or futures trading, or anyone illegally
obtaining such information, prior to the publication of the information that concerns stock issuing, stock exchange transactions
or futures trading , or that has a vital bearing  on the stock or futures price, buys or sells the said stock or is engaged
in futures trading relating to the said inside information, or divulges the said information shall , if the circumstances are serious,
be sentenced to fixed-term imprisonment of not more than five years or criminal detention and shall also, or shall only, be fined
not less than one time but not more than five times the illegal gains; if the circumstances are especially serious, he shall be
sentenced to fixed-term imprisonment of not less than five years but not more than ten years and shall also be fined not less than
one time but not more than five times the illegal gains.

    Where a unit commits the crime as mentioned in the preceding paragraph, it shall be fined, and the persons
who are directly in charge and the other persons who are directly responsible for the crime shall be sentenced to fixed-tem imprisonment
of not more than five years or criminal detention.

    The ranges of inside information and insiders shall be determined in accordance with the provisions of laws
or administrative regulations.

    5. The Article 181 of Criminal Law shall be amended as:

    Where whoever fabricates and spreads false information affecting stock exchange or futures trading, and disrupts
the stock exchange market and futures exchange market he shall, if the consequences are serious, be sentenced to fixed-term imprisonment
of not more than five years or criminal detention and shall also, or shall only, be fined not less than 10,000 yuan but not more
than 100,000 yuan .

    Any employee of stock exchanges, futures exchanges, securities companies or futures brokering companies or
any member of securities associations, futures associations or departments for securities and futures administration who deliberately
provides false information or forges, alters or destroys transaction records in order to cajole investors into buying or selling
securities or futures contracts and results in serious consequences, shall be sentenced to fixed-term imprisonment of not more
than five years or criminal detention and shall also, or shall only , be fined not less than 10,000 yuan but not more than 100,000
yuan ; if the circumstances are especially serious , he shall be sentenced to fixed-term imprisonment of not less than five years
but not more than ten years and shall also be fined not less than 20,000 yuan but not more than 200,000 yuan .

    Where a unit commits any of the crimes mentioned in the preceding two paragraphs, it shall be fined, and
the persons who are directly in charge and the other persons who are directly responsible for the crime shall be sentenced to fixed-term
imprisonment of not more than five years or criminal detention.

    6. Article 182 of Criminal Law shall be amended as;

    Whoever commits any of the following acts by rigging stock, futures business prices in order to obtain illegitimate
profits or transfer risks shall, if the circumstances are serious, be sentenced to fixed-term imprisonment of not more than five
years or criminal detention and shall also, or shall only, be fined not less than one time but not more than five times the illegal
gains:
(1) Centralizing capital superiority and holding stock or holding the superiority of stock or taking advantage of stock to buy or
sell jointly or continuously, and to milk securities and trading prices of futures by individual or joint plot;
(2) Conducting the trade of securities and futures each other by initially stipulated time, price and method, or buying or selling
the securities unowned and affecting the prices of securities and futures or the amount ?of the trade of securities and futures;
(3) Affecting stock or futures prices or the amount of stock or futures transactions by taking himself as the counterpart of transaction
and trading in stocks with himself without transferring ownership of the stock ?, or taking himself as the counterpart of transaction
and buying or selling his own futures contracts;
(4) Rigging stock or futures prices by any other means.

    Where a unit commits any of the crimes mentioned in the preceding paragraph, it shall be fined, and the persons
who are directly in charge and the other persons who are directly responsible for the crime shall be sentenced to fixed-term imprisonment
of not more than five years or criminal detention.

    7. Article 185 of Criminal Law shall be amended as:

    The members of commercial banks, stock exchanges, futures exchanges, securities companies, futures brokering
companies, insurance companies or any other financial institutions taking advantage of his position, and misappropriating money
belonging to the unit to which he belongs or any client shall be convicted and punished according to the provisions of Article
272 of this Law.

    Any members of State-owned commercial banks, stock exchanges, futures exchanges, securities companies, futures  brokering
companies, insurance companies or any other State-owned financial institutions or any person who is assigned by a State-owned commercial
bank, stock exchange, futures exchange, securities company , futures brokering company, insurance company or any other State-owned
financial institution to a financial institution that is not owned by the State to be engaged in public service commits the act
mentioned in the preceding paragraph, he shall be convicted and punished according to the provisions of Article 384 of this Law.

    8. An item shall be added to Article 225 of Criminal Law and be arranged as the item 3:

    illegally engaged in securities , futures or insurance business without the approval of the relevant state
department in charge.
The original item 3 shall be rearranged as item 4.

    9. This amendment shall come into force as of the date of promulgation.

Appendix: Criminal Law of the People’s Republic of China(Version 1999)
(Adopted at the Second Session of the Fifth National People’s Congress
on July 1, 1979, revised at the Fifth Session of the Eighth National
People’s Congress on March 14, 1997  revised for the second time in
accordance with the Amendment to the Amendment to Criminal Law of the
People’s Republic of China promulgated by Order No.27 of the President of
the People’s Republic of China on December 25, 1999)
Contents

  Part One  General Provisions

    Chapter I  The Tasks, Basic Principles and Scope of Application of the

               Criminal Law

    Chapter II  Crimes

      Section 1  Crimes and Criminal Responsibility

      Section 2  Preparation for a Crime, Criminal Attempt and Discontinuation

                 of a Crime

      Section 3  Joint Crimes

      Section 4  Crimes committed by a unit

    Chapter III  Punishments

      Section 1  Types of Punishments

      Section 2  Public Surveillance

      Section 3  Criminal Detention

      Section 4  Fixed-term Imprisonment and Life Imprisonment

      Section 5  The Death Penalty

      Section 6  Fines

      Section 7  Deprivation of Political Rights

      Section 8  Confiscation of Property

    Chapter IV  The Concrete Application of Punishments

      Section 1  Sentencing

      Section 2  Recidivists

      Section 3  Voluntary Surrender and Rendering Meritorious Service

      Section 4  Combined Punishment for Several Crimes

      Section 5  Suspension of Sentence

      Section 6  Commutation of Punishment

      Section 7  Parole

      Section 8  Limitation

    Chapter V  Other Provisions

  Part Two  Specific Provisions

    Chapter I  Crimes of Endangering the State Security

    Chapter II  Crimes of Endangering Public Security

    Chapter III  Crimes of Undermining the Socialist Market Economic Order

      Section 1  Crimes of Production and Sale of Fake or Substandard

                 Commodities

      Section 2  Crimes of Smuggling

      Section 3  Crimes of Impairing Order of Administering upon Companies

                 and Enterprises

      Section 4  Crimes of Undermining Order of Administering upon Banking

      Section 5  Crimes of Financial Fraud

      Section 6  Crimes of Endangering Taxes Collection and Administration
?     Section 7  Crimes of Infringing upon Intellectual Property Rights

      Section 8  Crimes of Disturbing Market Order

    Chapter IV  Crimes of Infringing upon the Rights of the Person and the

                Democratic Rights of Citizens

    Chapter V  Crimes of Property Violation

    Chapter VI  Crimes of Obstructing the Administration of Public Order

      Section 1  Crimes of Disturbing Public Order

      Section 2  Crimes of Impairing Judicial Activities

      Section 3  Crimes of Impairing Regulations of National Boundary

                 (Borderline)

      Section 4  Crimes of Impairing Regulations of Cultural Relics

      Section 5  Crimes of Endangering Public Health

      Section 6  Crimes of Undermining Protection of Environmental Resource

      Section 7  Crimes of Smuggling, Trafficking in, Transporting and

                 Manufacturing Narcotic Drugs

      Section 8  Crimes of Organizing, Forcing, Luring, Sheltering and

                 Introducing Women into Prostitution

      Section 9  Crimes of Manufacturing, Trafficking in and Disseminating

                 Pornographic Articles

    Chapter VII  Crimes of Endangering Interests of National Defence

    Chapter VIII  Crimes of Embezzlement and Bribery

    Chapter IX  Crimes of Dereliction of Duty

    Chapter X  Crimes Contrary to Duties Committed by Servicemen

  Supplementary Provisions

    Part One  General Provisions
Chapter I  The Tasks, Basic Principles and Scope of Application of the
Criminal Law

    Article 1  This Law is formulated with a view to punishing crimes and
protecting the people, and in accordance with the Constitution, and in
the light of the concrete experiences in fighting against crimes
and the actual circumstances.

    Article 2  The tasks of the Criminal Law of the People’s Republic
of China are to use criminal punishments to fight against all criminal acts
in order to defend the security of the State; to defend the political
power of the people’s dictatorship and socialist system; to protect
property owned by the State and the property collectively owned by the
working people; to protect the citizens’ privately owned property;
to protect the citizens’ rights of the person and their democratic and
other rights; to maintain public order and economical order, and to safeguard
the smooth progress of the cause of the socialist revolution and socialist
construction.

    Article 3  Where an act is expressly defined in laws as a criminal act, it
shall be determined and punished as a criminal act in accordance with the law;
where an act is not expressly defined in the laws as a criminal act, it shall
not be determined and punished as a criminal act.

    Article 4  Anyone who commit a crime shall be equal in applying the law.
No one is privileged to be beyond the law.

    Article 5  The lightness or heaviness of the punishments shall be in
accordance with the criminal acts and the criminal responsibility of
the criminals.

    Article 6  This Law is applicable to anyone who commits a crime
within the territory of the People’s Republic of China, unless the case is
covered by special legal provisions.

    This Law is also applicable to anyone who commits a crime on board
a ship or an aircraft of the People’s Republic of China.

    If the criminal act or its consequence takes place within the territory
of the People’s Republic of China, the crime shall be deemed to have been
committed within the territory of the People’s Republic of China.

    Article 7  This Law is applicable to the citizens of the People’s
Republic of China who commit crimes prescribed in this Law outside the
territory of the People’s Republic of China; however, they may not be
investigated if for those crimes this Law prescribes a maximum punishment
of fixed-term imprisonment of not more than three years.

    This Law is applicable to state functionaries and servicemen of the
People’s Republic of China who commit crimes outside the territory of the
People’s Republic of China.

    Article 8  This Law may be applicable to any foreigner who commits
a crime outside the territory of the People’s Republic of China,
against the state of the People’s Republic of China or against its citizens,
if for that crime this Law prescribes a minimum punishment of fixed-term
imprisonment of not less than three years; however, this does not
apply to a crime that is not punishable according to the law of the place
where it was committed.

    Article 9  This Law is applicable to the crimes prescribed in the
international treaties concluded or acceded to by the People’s Republic of
China and over which the People’s Republic of China has criminal jurisdiction
within its obligation in accordance with the treaties.

    Article 10  If any person commits a crime outside the territory of the
People’s Republic of China for which according to this Law he would
bear criminal responsibility, he may still be dealt with according to this
Law, even if he has already been tried in a foreign country. However, if
he has already received criminal punishment in the foreign country, he
may be exempted from punishment or given a mitigated punishment.

    Article 11  The criminal responsibility of foreigners who enjoy
diplomatic privileges and immunities shall be resolved through diplomatic
channels.

    Article 12  If an act committed after the founding of the People’s
Republic of China and before the entry into force of this Law was not deemed
a crime under the laws in force at the time, those laws shall apply. If the
act was deemed a crime under the laws in force at that time and is subject to
prosecution under the provisions of Section 8, Chapter IV of the General
Provisions of this Law, criminal responsibility shall be investigated
according to those laws. However, if this Law does not deem it a crime or
imposes a lighter punishment, this Law shall apply.

    The effective judgments made in accordance with the laws in force at that
time before the entry into force of this Law, shall keep their effectiveness.
Chapter II  Crimes

    Section 1  Crimes and Criminal Responsibility

    Article 13  A crime refers to an act that endangers the sovereignty
and territorial integrity and security of the state; dismembers the state and
subverts the political power of the people’s dictatorship and overthrows
the socialist system; disrupts social order and economic order; violates
property owned by the state or collectively owned by the working people;
violates the citizens’ privately owned property or infringes upon the
citizens’ rights of the person and their democratic and other rights; and any
other act that endangers society and is punishable according to law. However,
an act that is clearly of minor importance and little harm shall not be
considered a crime.

    Article 14  An intentional crime refers to a crime committed by a
person who clearly knows that his act will produce socially dangerous
consequences but who wishes or allows such consequences to occur.

    Criminal responsibility shall be borne for intentional crimes.

    Article 15  A negligent crime refers to a crime committed by a
person who should have foreseen that his act would possibly produce
socially dangerous consequences but who fails to do so through negligence
or, having foreseen the consequences, readily believes that they can be
avoided, the result being that these consequences do occur.

    Criminal responsibility shall be borne for negligent crimes only when
the law so provides.

    Article 16  If an act in fact results in harmful consequences due to
unavoidable or unforeseeable causes rather than intent or negligence, it
shall not be a crime.

    Article 17  Any person who has reached the age of 16 and who
commits a crime shall bear criminal responsibility.

    Any person who has reached the age of 14 but not the age of 16 and
who commits homicide, intentionally injuring another person resulting in
serious bodily injury or death, rape, robbery, selling narcotic drugs, arson,
causing explosion, or spreading poisons, shall bear criminal responsibility.

    Any person who has reached the age of 14 but not the age of 18 and
who commits a crime shall be given a lighter or mitigated punishment.

    If a person is not punished because he has not reached the age of 16,
the head of his family or his guardian shall be ordered to discipline and
educate him. When necessary, he may also be taken in by the government
for reeducation.

    Article 18  If a mental patient causes dangerous consequences at a
time when he is unable to recognize or control his own conduct, and such
a circumstance is confirmed by a forensic doctor, he shall not bear criminal
responsibility, but his family members or guardian shall be ordered to keep
him under strict surveillance and arrange for his medical treatment. When
necessary, he may also be arranged for medical treatment under coercion by
the government.

    Any person whose mental illness is of an intermittent nature shall
bear criminal responsibility if he commits a crime when he is in a normal
mental state.

    Any mental patient who does not lose completely the ability to recognize
or control his own conduct and commits a crime shall bear criminal
responsibility, but he may be given a lighter or mitigated punishment.

    Any intoxicated person who commits a crime shall bear criminal
responsibility.

    Article 19  Any deaf-mute or blind person who commits a crime
may be given a lighter or mitigated punishment or be exempted from punishment.

    Article 20  Where a person conducts an act to stop an unlawful
infringement in order to avert an immediate and unlawful infringement of
the state’s interest or of the public interest or of his own or another
person’s rights of the person, or property rights, or other rights, resulting
in harm to the unlawful infringer, such an act shall be justifiable defence,
and criminal responsibility shall not be borne for such an act.

    Criminal responsibility shall be borne if justifiable defence apparently
exceeds the limits of necessity and causes serious harm; however, a
mitigated punishment or exemption from punishment shall be given.

    Where a defence is conducted to an immediate violent crime of committing
physical assault, committing homicide, robbery, rape, kidnapping, and other
crimes seriously endangering the security of a person, and it causes bodily
injury or death to the unlawful infringer, such an act shall not be defence
that exceeds the limits of necessity, and criminal responsibility shall not
be borne for such an act.

    Article 21  Criminal responsibility shall not be borne for an act that
a person is compelled to commit in an emergency to avert an immediate
danger to the state’s interest or the public interest or to his own or another
person’s rights of the person or property rights or other rights, and that
causes harm.

    Criminal responsibility shall be borne if an act committed in an
emergency to avert danger exceeds the limits of necessity and causes
undue harm; however, a mitigated punishment or exemption from punishment
shall be given.

    The provisions of the first paragraph of this Article with respect to
averting danger to oneself shall not apply to a person who is charged with
specific responsibility in his post or profession.

    Section 2  Preparation for a Crime, Criminal Attempt and Discontinuation
of a Crime

    Article 22  Preparation for a crime refers to the preparation of the
instruments or the creation of the conditions for a crime.

    An offender who prepares for a crime may, in comparison with one
who completed the crime, be given a lighter or mitigated punishment or
be exempted from punishment.

    Article 23  A criminal attempt refers to a case where an offender
has already begun to commit a crime but is prevented from completing
it for reasons independent of his will.

    An offender who attempts to commit a crime may, in comparison
with one who completed the crime, be given a lighter or mitigated punishment.

METHOD FOR THE SELECTION OF THE CANDIDATE FOR THE FIRST CHIEF EXECUTIVE OF THE MACAO SPECIAL ADMINISTRATION REGION

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1999-01-16 Effective Date  1999-01-16  


Method for the Selection of the Candidate for the First Chief Executive of the Macao Special Administration Region of the People’s
Republic of China



(Adopted at the Fifth Plenary Meeting of the Preparatory Committee for the

Macao Special Administrative Region of the National People’s Congress on
January 16, 1999)

    Article 1  In accordance with the Basic Law of the Macao Special
Administrative Region ( hereinafter referred to as “the Basic Law”) and the
Decision of the National People’s Congress on the Method for the Formation
of the First Government, the First Legislative Council and the First
Judiciary of the Macao Special Administrative Region, this Method is
formulated in order to select the candidate for the first Chief Executive
of the Macao Special Administrative Region.

    Article 2  The candidate for the first Chief Executive shall be nominated
in accordance with the principle of fairness, impartiality, publicity,
democracy, and probity.

    Article 3  The candidate for the first Chief Executive must have the
following qualifications:

    1. A Chinese citizen who is a permanent resident of Macao with no right of
abode in any foreign  country or consenting to give up the right of abode in
any foreign country;

    2. Not less than 40 years of age;

    3. Have ordinarily resided in Macao for a continuous period of not less
than 20 years;

    4. Support the Basic Law;

    5. Give allegiance to the People’s Republic of China and the Macao Special
Administrative Region.

    Among these qualifications, “not less than 40 years old” means already
being 40 by the cutoff date of the enrollment of the election; “have
ordinarily resided in Macao for a continuous period of not less than 20
years” means having ordinarily resided in Macao for a continuous period of not
less than 20 years by the cutoff date of the enrollment of the election,
calculation of such a period shall include the time of going abroad for
study, business or visiting relatives and friends when residing in Macao.

    Article 4  Current in-service public servants who intend to participate in
the selection of the First Chief Executive must resign their public service
and leave their post while enunciating their intention of participation.

    Article 5  People who intend to participate in the selection of the First
Chief Executive shall attend in their individual capacities. People who are
members of political parties must secede from these political parties while
enunciating their intention of participation.  

    Article 6  The selection of the first Chief Executive shall be taken charge
by the Chair Meeting of the Preparatory Committee for the Macao Special
Administrative Region of the People’s Republic of China (hereinafter referred
to as “the Chair Meeting of the Preparatory Committee”).

    Article 7  The first Chief Executive shall be selected through the method
of nomination by the Selection Committee for the First Government of the Macao
Special Administrative Region (hereinafter referred to as “the Selection
Committee”). The following are the specific procedures:

    A. Enrollment and Qualification Verification

    People who intend to participate in the selection of the first Chief
Executive shall enunciate their intention of participation to the Chair
Meeting of the Preparatory Committee in written form and shall submit a
Resume Form of Participant for the Office of the First Chief Executive of the
Macao Special Administrative Region of the People’s Republic of China while
enrolling for the selection. Participants for the selection of the Chief
Executive shall not be members of the Selection Committee. If a member of
the Selection Committee intends to participate in the selection, he must
simultaneously resigned his post in the Selection Committee while enunciating
his intention to participate in the selection. The vacancy shall be disposed
in accordance with Article 12 of the Method for the Formation of the
Selection Committee for the First Government of the Macao Special
Administrative Region of the People’s Republic of China.

    The Chair Meeting of the Preparatory Committee shall be responsible for
the verification of qualification of people who have submitted Resume Form,
and when necessary may require them to provide certifying papers concerning
matters they wrote in the Form. People who have the qualification become
participants for the selection of the first Chief Executive and the Chair
Meeting of the Preparatory Committee shall publicize the list of the
participants.

    B. Nomination and Determination of Candidates

    The Selection Committee shall, on the basis of the list of participants,
bring forward candidates for the office of the first Chief Executive by secret
ballot after consultation. Each member of the Selection Committee may nominate
one candidate. When counting nomination ballots, the scrutineer elected
by the members of the Selection Committee shall oversee the counting.
Participants who nominated by not less than 20 members of the Selection
Committee become candidates for the office of  the first Chief Executive, who
shall be subsequently affirmed by the Chair Meeting of the Preparatory
Committee.

    The list of candidates and their brief introduction shall be printed and
distributed to all members of the Selection Committee and shall be announced
to the public.

    C. Election

    The Chair Meeting of the Preparatory Committee shall convene plenary
session of the Selection Committee. The candidates for the office of the first
Chief Executive shall report to the plenary session of the Selection Committee
their personal status and their administrative plans, and shall answer
questions from members of the Selection Committee.

    Members of the Selection Committee shall vote by secret ballot. Each
member may  vote for one candidate. Ballots voting for one candidate are
valid, and those voting for more than one candidates are invalid.

    Members of the Selection Committee shall elect mutually a scrutineer to
oversee the balloting. If the number of ballots is equal to or less than the
number of balloters, the vote is valid; if the number of ballots is more than
the number of balloters, the vote is invalid and must be hold again.

    The candidate who receives more than half of the votes of members of the
Selection Committee shall be elected. If no candidate receives more than half
of the votes, then the two leading candidates shall enter into a second round
vote and the one receiving more votes in the second round shall be elected.

    The scrutineer shall report the voting result to the Chair Meeting of the
Preparatory Committee, who shall then announce the voting result to the public.

    Article 8  The procedure selecting the candidate for the first Chief
Executive shall be completed within 45 days after the establishment of the
Selection Committee.

    Article 9  Participants and candidates for the first Chief Executive shall
not carry out personal abuse on each other and shall not bribe members of the
Selection Committee or offer or promise to offer them any benefits.

    The Chair Meeting of the Preparatory Committee shall be responsible for
supervising the vote and handling appeals.

    Article 10  After the recommended candidate for the first Chief Executive
is elected, the Preparatory Committee shall report to the Central Government
for appointment.

    Article 11  Matters not stipulated in this Method may be
supplemented by the Plenary Session of the Preparatory Committee in accordance
with the proposal of the Chair Meeting of the Preparatory Committee.

    Article 12  The Chair Meeting of the Preparatory Committee shall be
responsible for the interpretation of this Method.






PROPOSALS ON STRENGTHENING SAFETY IN PRODUCTION

Category  LABOR Organ of Promulgation  The General Office of the State Council Status of Effect  In Force
Date of Promulgation  1999-03-20 Effective Date  1999-03-20  


Proposals on Strengthening Safety in Production



(Submitted by the State Economic and Trade Commission on March 8, 1999, promulgated by the General Office of the State Council on March 20, 1999)

    Safety in production has an important bearing on the security of the State
and of the people’s lives and property, and is of vital importance to the
stability of the society and the healthy development of economy. In recent
years, the localities and departments have earnestly implemented the policy
“safety and prevention are the top priority”; they have done a lot of work
in constructing the legal system for safety in production, establishing the
mechanism for safety in production, strengthening the control over hidden
peril of accidents and the handling of accidents, establishing the
responsibility system of safety in production, promoting education and
publicity of safety in production, Great achievements have been made
national-widely in the aspect of safety in production. However, in recent
period, in some localities and industries the situation of safe production
has become serious, major casualty accidents occur now and then. In order to
redress the serious situation and better the work of safety in production,
proposals are put forward as follows:

    1.Implementing earnestly important instructions on the work in relation
to safety in production made by leaders of the Central Party, strengthening
guidance on the work of safety in production, and putting into effect the
responsibility system of safety in production.

    (1) Jiang Zemin and other leaders of the Central Party have made series
of significant instructions on safety in production, which have a very import
significance in doing a good job in relation to the safety in production at
present and in the future and should be implemented earnestly by all
localities, departments and enterprises. In year 1999 we will celebrate the
50th anniversary of the People’s Republic of China, welcome the return of
Macao, therefore doing a good job in relation to safety in production has
special significance, leaders at various levels must have a clear perception
into current situations, pay great attention to safety in production, and
comprehend the instructions given by the leaders of the Central Party, they
should, form the aspect of emphasizing politics, maintaining stability,
promoting economical and social development as well as taking responsibility
for people, properly deal with the relation between safety in production and
economic development, between safety in production and economic returns. It
is a must to continue to implement the policy “safety and prevention are the
top priority”, overcome carelessness, get rid of laxation, emphasize the work
of preventing accidents in safety in production, and strive to avoid the
occurrence of injuries and serious accidents.

    (2) All localities and departments should take responsibility of managing safety in production, strengthening
the leadership of safety in production, include the work in relation to safety in production into local and departmental economy
and social developments, solve the problems in the safety in production timely and effectively. In reforming and reshuffling enterprises,
the work in relation to safety in production cannot be weakened, instead should be strengthened. Supervisory and managerial teams,
especially the basic teams should be well organized and stabilized; in the mean time more capital should be invested for safety in
production, technical development should be accelerated.

    (3) Enterprises should strictly implement laws, regulations and  policies on safety in production,
voluntarily accept supervision of the State and industrial management. The responsibility system of safety in production should be
carried out, bylaws on safety in production should be formulated and improved, working conditions of workers and staff should be
bettered, necessary equipment for labor protection should be provided to workers and staff. Legal representatives of enterprises
are the first responsible persons for safety in production, they should take overall responsibility for safety in production.

    2.Strengthening supervisory work of safety in production, enhancing legal construction and systemization of
safety in production, and intensifying the execution of law.

    (1) All localities and departments should strengthen on-the-spot supervision over safety in production, especially
in those dangerous industries, such as transportation, coal-mining, electricity, oil, chemical industry, construction, forestry,
commerce, entertainment; they should reinforce the work of examining project designs, check and acceptance after completion of projects,
including those newly built, rebuilt and enlarged. As to those projects with inadequate matching safety equipment and in substandard
quality, they should not be put into use and production. Boiler and other pressure containers should be under strict quality supervision
and inspection, the substandard products are forbidden to be sold and used. The supervisory work of producing, selling and using
labor protection equipment should be strengthened. The check, evaluation, supervision and control of hidden peril of accidents and
danger sources should be reinforced. The safety authentication of dangerous equipment and facilities should be strengthened; the
management of examining the enterprise leaders and specialists should be enhanced. Effective supervisory work of the common people
should be carried out.

    (2) Considering the economic restructure, all localities and departments should comprehensively administer
the dangerous industries and enterprise, decisively close illegal mines which have unreasonable overall arrangement and bad production
condition in accordance with unified planning of the State, reorganize and close the” five kinds of small factories”( glass factories,
cement factories, oil-refining factories, thermal power plants, and steel plants) which own backward technology, or waste resources,
or make low-grade products, or pollute the environment, or cannot accord with the requirement of safety in production.          

    (3) Reinforcing the legal system establishment of safety in production. On the basis of existing regulation
and bylaws, it is a must to speed up the work of complementing and consummating regulations, standards and bylaws for safety in production.
All localities and departments in charge of supervising safety in production should collaborate closely, execute law strictly, punish
illegal acts according to the law; it is also a must to achieve the aims that the laws must be observed and strictly enforced, and
law-breakers must be prosecuted so as to ensure the effective implementation of laws and regulation on safety in production.

    3.Reinforcing the education and publicity of safety in production and training of personnel, improving the
awareness of safety of the whole society.

    (1) Publicity departments at various levels and enterprises should adopt
manifold forms of education, spread the idea of safety in production widely
and deeply, especially strengthen the publicity of laws and regulations on
safety in production. Media should actively co-operate, portray advanced
elements in safety in production, and vigorously publicize the idea of safety
in production. As to heavy accidents and illegal acts against laws and
regulations on safety in production, it is a must to expose them, employ
typical examples to educate workers and staff, so that they would know law,
stand by law, heighten their consciousness of rule of law, advance the
consciousness of security and self-protection. Schools, universities should
also properly educate students, inform them of the idea of safe production,
persistently launch the activity of “the week of safe production” every year.

    (2) Reinforce the training and examining work of managers and personnel in charge of supervising safe production,
improve their managing ability in the aspect of safe production. The enterprise staff, especially peasants have to take the training
for safe production and obtain qualification, otherwise they cannot be permitted to work. Employees in special industries have to
take special training for safe production and obtain special qualification.

    4.Strengthening the work of reporting and statistics on accidents and dealing with problems arising from accidents.

    After the accidents happened, units concerned should timely report the situations to local government and
supervisory department in charge of safe production. Supervisory departments in charge of safe production at various levels should
reinforce the work of accident counting and reporting, insure that information be timely, correctly, and comprehensively conveyed.
As for the accidents in which three or more persons died, the relevant departments should report it timely to the State  Economics
and Trade Commission the relevant departments of the State Council. Among them, the especially heavy accidents should be immediately
reported to the State Council. Governments and relevant departments at various levels should seriously deal with the especially heavy
accidents in accordance with the relevant provisions. As for the accidents caused by carelessness and peccancy, the relevant leaders
and personnel in charge should be investigated for responsibility and be punished according to the related provisions; if crimes
are constituted, criminal responsibilities should be investigated by judiciary organs. The State Economics and Trade Commission is
in charge of organizing and harmonizing the work in relation to the investigation and handling of especially heavy accidents, and
replying investigation results of especially heavy accidents, major issues should be reported to the State Council for decision.






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING TAXATION POLICY ON PROMOTION OF APPLICATION OF SCIENTIFIC AND TECHNOLOGICAL ACHIEVEMENTS

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation Concerning Taxation Policy on Promotion of Application
of Scientific and Technological Achievements

CaiShuiZi [1999] No.45

May 27, 1999

Finance departments (bureaus), state and local taxation bureaus of all provinces, autonomous regions, municipalities directly under
the Central Government and municipalities separately listed on the State plan:

In order to carry out the Law of People’s Republic of China on the Progress of Science and Technology and the Law of People’s Republic
of China on the Promotion of Application of Scientific and Technological Achievements, and to encourage the development of high/new
technology industry, the circular regarding taxation policy of the research and development of high/new technology and the transmission
of scientific achievements of scientific research institutions and colleges and universities, after the approval of State Council,
is notified hereby as follows:

1.

The technology transference income of scientific research institutions continues being exempted from business tax, and the technology
transfer income of colleges and universities is exempted from sales tax since May 1, 1999.

2.

The technological services income gained by scientific research institutions and colleges and universities, in various industries
and from technological achievements transference, technological training, technological consultancy, technological service and technological
contract shall be exempted temporarily from enterprise income tax.

3.

Since July 1, 1999, where scientific research institutions and colleges and universities which transmit the scientific and technological
achievements tied to a position grant personal premium in the form of share rights such as stock or proportion of capital contribution
and so on, the person who has been granted premium temporarily need not pay individual income tax at the time of gaining the stock
or proportion of capital contribution. And income tax shall be paid when profits are gained by shares or proportion of capital contribution
or interests are gained by transference of shares or proportion of capital contribution.

The relevant specific implementing rules are to be promulgated by the State Administration of Taxation.



 
The Ministry of Finance, the State Administration of Taxation
1999-05-27

 







CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE STATE ECONOMIC AND TRADE COMMISSION ON THE ISSUES OF EVALUATING STANDARDS AND EXAMINATION AND APPROVAL PROCEDURES FOR THE CLASSIFIED MANAGEMENT OVER THE PROCESSING TRADE ENTERPRISES

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

Circular of the General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation and the State Economic and
Trade Commission on the Issues of Evaluating Standards and Examination and Approval Procedures for the Classified Management over
the Processing Trade Enterprises

ShuJian [1999] No.522

July 12, 1999

The General Administration of Customs Guangdong branch, the various customs directly under the General Administration of Customs,
foreign trade and economic cooperation commissions (departments, bureaus) and economic and trade commissions (economic commissions
and economic planning commissions) of the various provinces, autonomous regions, municipalitie directly under the Central Government
and municipalities separately listed on the State plan :

With a view to implementing the Opinions of the State Economic and Trade Commission and other Departments On further Perfecting the
Bank Deposit Account System for Processing Trade Transmitted by the General Office of the State Council (GuoBanFa [1999] No. 35),
in accordance with the spirit of instructions by the leaders of the State Council, the inter- ministerial conference on processing
trade has adopted at its second session the evaluating standards and examination and approval procedures for the classified management
of the processing trade enterprises, the relevant issues of which are notified as follows:

1.

Conditions for Processing Trade Enterprises Not to Implement the Bank Deposit Account System

Processing trade enterprises evaluated and approved by the Customs for applicable to the management under Category A, in accordance
with the provisions of the Article 6 of the Implementation Procedures of the Customs of the People’s Republic of China for the Classified
Management of Enterprises, jointly distributed by the General Administration of Customs, the Ministry of Foreign Trade and Economic
Cooperation and the State Economic and Trade Commission (ShuJian [1999] No. 240), and meeting one of the following conditions, the
Customs may not implement to them the bank deposit account system:

(1)

Bonded factories where Customs commissioners are sent for supervision or a computer internet management system is established by the
Customs in charge;

(2)

Processing trade engaged in processing in planes, ships and other special professions;

(3)

Enterprises whose total import and export value exceeds over 30 million U.S. dollars (including 30 million U.S. dollars) a year or
self-operated productive enterprises whose total export value exceeds 10 million U.S. dollars (including 10 million U.S. dollars)
a year, or enterprises whose total processing export value exceeds 10 million U.S. dollars (including 10 million dollars).

2.

Processing Trade Enterprises Applicable to Examination and Approval Standards for the Management under Category C

(1)

Enterprises having one of the conditions enlisted in the Article 9 of Document ShuJian No. 240, the Customs shall implement to them
management under Category C.

(2)

The “infringement” called in Clause one of the Article 9 of Document ShuJian No. 240, is interpreted as fines decided by the Customs
for the infringement of the enterprises as defined in Chapter 3 of the Detailed Rules for the Implementation of Administrative Penalties
of the Customs Law of the People’s Republic of China and that the decision for fines has come into force. But the fines for infringement
below 1000 yuan RMB (including 1000 yuan RMB) shall not be recorded for evaluating enterprises.

(3)

The time limit for examining and approving the infringement and smuggling of the enterprises is August 1, 1998, namely the infringement
and smuggling behaviours happened after this time shall be recorded as reference for evaluating classified management over the enterprises.

3.

Evaluating Procedures for Classified Management over Processing Trade Enterprises

(1)

Councils for classified management over the enterprises shall be established by the various Customs.

(2)

The Customs having jurisdiction over the enterprises shall raise the list of enterprises managed over under Category A that are not
to apply the bank deposit account system, and send out copies of the list within 7 work days to the departments of foreign trade
and economic cooperation commissions, economic and trade commissions, taxation, foreign exchange control and Bank of China, etc.
where the enterprises are located (at regional and municipal level and above, the same below) for seeking their opinions. The above
mentioned departments should feed back their opinions within 7 work days; if they disagree to the categories determined for certain
enterprises, they should submit to the Customs detailed statement and demonstration material for reconsideration by the Customs;
if the departments feed back no opinion within the prescribed time, it will be deemed that they have no different opinion.

(3)

Should the Customs find out that the enterprises have committed infringement or smuggling, they shall readjust at any time, in accordance
with the relevant files, the management categories for these enterprises to Category C or D. For enterprises examined and approved
for applicable to the management under Category C or D, the Customs should send on the date of examination and approval copies of
a list of them to the departments of foreign trade and economic cooperation commissions, economic and trade commissions, taxation,
foreign exchange control and Bank of China, etc. where the enterprises are located, and shall start management over them under Category
C or D from 3 days (the third day) after the date of examination and approval.

(4)

The Customs shall not announce to the public the management categories applicable to the enterprises, but should inform these to the
enterprises concerned (enterprises applicable to Category B are excluded). If the enterprises disagree to the categories approved
by the Customs after examination, they may apply for reconsideration in accordance with the Law of Administrative Reconsideration
of the People’s Republic of China.

Please carry out the above completely.



 
The General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, the State Economic and
Trade Commission
1999-07-12

 







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...