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2005

MEASURES FOR THE ADMINISTRATION OF BANK CARD BUSINESS






Measures for the Administration of Bank Card Business

(People’s Bank of China January 27th, 1999)

Chapter I General Provisions

Article 1

In order to enhance the administration of bank card business, prevent the risks in bank card business and safeguard the legitimate
rights and interests of commercial banks, cardholders, specially engaged entities and other parties concerned, the present Measures
are constituted subject to the Law of the People’s Republic of China on the People’s Bank of China, the Law of the People’s Republic
of China on Commercial Banks, the Regulations of the People’s Republic of China on the Administration of Foreign Exchanges and the
related administrative laws and regulations.

Article 2

Bank card as referred to in the present Measures are the credit payment instruments issued by commercial banks (including postal
financial institutions, similarly hereafter) to the society, which have some or all such functions as consumption credit, transfer
and settlement and depositing and withdrawing cash, etc..

Without the approval of the People’s Bank of China, no commercial bank may issue any bank card.

Article 3

All the commercial banks, cardholders and merchants that handle the bank card business within the territory of the People’s Republic
of China and other parties concerned shall abide by the provisions of the present Measures.

Article 4

Commercial banks shall, on the basis of negotiation and mutual benefit, carry out information sharing, merchant sharing, machine
sharing and other types of combination in bank card business.

Chapter II Categorization and Definition

Article 5

Bank cards are divided into credit cards and debit cards.

Bank cards may be divided into Renminbi cards and foreign currency cards in light of the type of the currency; entity cards (commercial
card) and individual cards in light of the objective of issuance; and magnetic cards and integrated circuit (IC) cards in light of
the information carrier.

Article 6

Credit cards may be divided into credit cards and quasi-credit cards subject to whether it has deposited an imprest in the card-issuing
bank.

Credit card permits the cardholder to consume before payment within the credit limit granted by the card-issuing bank.

Quasi-credit card requires the cardholder to deposit a certain amount of imprest in the card-issuing bank in advance as provided for
by this bank, and permits the cardholder to overdraw, when the balance in the account of imprest is not sufficient to pay, within
the credit limit provided for by the card-issuing bank.

Article 7

Debit cards may be divided into cards for transferring accounts (including savings cards, similarly hereinafter), cards for special
purposes and stored-value cards. Overdrawing is not included in the function of the debit cards.

Article 8

The card for transferring accounts belongs to the debit card, which performs a utility of real-time deduction of accounts. Its functions
comprise transfer, settlement, depositing and withdrawing cash, and consumption.

Article 9

The card for special purpose means the debit card, which is used in certain designated location for any special purpose. Its functions
comprise transfer, settlement, depositing and withdrawing cash.

Special purpose means that it shall be used other than in the industries of general merchandise, catering, restaurant and entertainment.

Article 10

Stored-value card is the purse-style debit card which requires payment in advance, and the money of the cardholder is transferred
into this card by the card-issuing bank as required by the cardholder, and then when a transaction is made, the money is deducted
from the card.

Article 11

Co-branded/affinity card is an supplementary product of bank card issued by a commercial bank in cooperation with a profitable/non-profitable
institution, the category of the bank card it supplements must be a category that has the approval of the People’s Bank of China
and the issuance and operation of the said category of the bank card shall comply with the business regulations or administrative
measures accordingly.

The card-issuing bank and the co-branded entities shall promise a certain discount or special services for the cardholders when any
consumption using the cards occurs to any of the co-branded entities. If any cardholder obtains and uses the affinity card, it indicates
their support to the affinity entities.

Article 12

Integrated circuit (IC) card may be applied to a single category of bank card, and to a combined category of bank cards as well.

Chapter III Examination and Approval of Bank Card Business

Article 13

Any commercial bank that develops the bank card business shall meet the requirements as follows:

(1)

it shall have been opened for three years or more and have a sound foundation for handling retail business;

(2)

it shall comply with the indicators as issued by the People’s Bank of China for asset-liability ratio administration and surveillance
and it shall have a sound business performance;

(3)

it shall have set up a scientific and perfect internal control system for this business and have specific procedures for the examination
and approval of internal authorization;

(4)

it shall have qualified management and technical personnel and administrative department accordingly;

(5)

it shall have a safe and efficient computer processing system;

(6)

it shall have the qualification for developing the foreign exchange business and have the corresponding operational and administrative
expertise for the foreign exchange business in case of issuing any foreign currency card;

(7)

other requirements as provided for by the People’s Bank of China.

Article 14

A commercial bank that satisfies the aforesaid requirements may apply for developing the bank card business to the People’s Bank
of China and shall file the materials as follows:

(1)

an application report that demonstrating the necessity and feasibility and performing market forecasts;

(2)

articles of association or administrative measures for the bank card, draft card designs;

(3)

internal control system and risk prevention measures;

(4)

a testing report concerning system security and qualified technical standards as issued by the competent authorities of science and
technology of the People’s Bank of China;

(5)

other materials as required by the People’s Bank of China.

Article 15

The articles of association of any bank card of a card-issuing bank shall indicate items as follows:

(1)

the name, category, functions and purposes of the card;

(2)

the target for issuing the card, requirements and procedure of the application for the card;

(3)

the using scope of the card (including the limitations in using the card) and the using introduction;

(4)

the interest rate applicable to the account of the card, charging items and rates against the cardholder;

(5)

the rights and obligations of the card-issuing bank, the cardholder as well as other parties concerned;

(6)

other items as required by the People’s Bank of China.

Article 16

The limits of the administrative authority and procedures for the examination and approval of a bank card are as follows:

(1)

Where a commercial bank develops any kind of the bank card business, it shall separately constitute uniform articles of association
or business management measures under the provisions of the People’s Bank of China on enhancing internal control and the administration
of authorization and credit granting, and shall submit them to the headquarters of the People’s Bank of China for examination and
approval.

In case the headquarters of the commercial bank is not in Beijing, the said articles of association or business management measures
shall be firstly submitted to the local central sub-branch of the People’s Bank of China, after approval upon examination, and then
be transmitted to the headquarters of the People’s Bank of China for examination and approval.

(2)

Where a commercial bank has already engaged in the business of credit card or transfer card, it may apply for issuing co-branded/affinity
cards, cards for special purposes and stored-value cards to the People’s Bank of China; where a commercial bank has already engaged
in the Renminbi credit card business, it may apply to for issuing foreign currency credit cards the People’s Bank of China.

(3)

As regards a commercial bank that proposes to issue national affinity cards, IC cards or stored-value cards, it shall be submitted
to the headquarters of the People’s Bank of China for examination and approval.

(4)

In case any branch of a commercial bank develops the bank card business as approved by the headquarters of the People’s Bank of China,
it shall be submitted to the local branch of the People’s Bank of China for filing with the approval document of the People’s Bank
of China and the authorization document of its headquarters.

If a branch of a commercial bank proposes to issue cards for special purposes or co-branded cards that may only be used in certain
regions, it shall be submitted to the local central sub-branch of the People’s Bank of China for filing with the authorization document
of the headquarters of the commercial bank or the agreement concluded by both co-branded parties.

(5)

In case of any alteration of the name of any bank card or amendment of the articles of association on bank card by a commercial bank,
it shall be submitted for examination and approval to the People’s Bank of China.

Article 17

A foreign-funded financial institution that proposes to develop bank card acceptance business shall apply to the People’s Bank of
China for approval.

Bank card acceptance business refers to the domestic or foreign currency settlement service provided by a contractual bank for its
merchants.

Chapter IV Interest Calculation and Charging Rates

Article 18

Bank card interest calculation shall contain the calculation of the interests to be collected and the calculation of the interests
to be paid. The card-issuing bank shall examine and calculate both the said interests in light of the provisions of the Financial
Rules for Financial and Insurance Enterprises.

Article 19

With respect to the deposits in the accounts of quasi-credit cards and debit cards (excluding stored-value cards), interests shall
be calculated and paid by the card-issuing bank according to the deposit interest rate of the same term and same grade and the methods
for interest calculation as provided for by the People’s Bank of China.

The interests on the deposits in the accounts of credit cards and the currency value of the stored-value cards (including the electronic
purses of IC cards) may not be calculated and paid by any card-issuing bank.

Article 20

Where a credit cardholder has non-cash transactions, he may enjoy the favorable terms as follows:

(1)

Treatment of enjoying interest-free payment in a certain period. A period from the booking date of the bank to the date when payment
is due as provided for by the card-issuing bank shall be the interest-free period with the longest term of 60 days. The cardholder
may enjoy this treatment if he repays all the used funds of the bank before the date when payment is due and no interest may be paid
for any non-cash transaction.

(2)

Treatment of minimum payment. In case it is difficult for the cardholder to repay all the funds of the bank before the date when payment
is due, the minimum amount may be paid as provided for by the card-issuing bank.

Article 21

A credit cardholder may not enjoy the treatment of interest-free payment period when choosing to repay the minimum amount or using
the card in excess of the credit limit approved by the card-issuing bank, but shall pay overdraft interests on the unpaid amount
as calculated from the book date of the bank upon the stipulated interest rate.

A credit cardholder may not enjoy the treatment of interest-free payment period and the treatment of minimum payment when withdrawing
cash or overdrawing quasi-credit card, but the overdraft interests that are calculated from the book date of the bank upon the stipulated
interest rate shall be paid for the cash transaction or overdraft.

Article 22

In case a credit cardholder fails to repay the minimum payment or uses the credit card in excess of the credit limit, a fine for
delayed payment or charge fees for exceeding the credit limit shall be imposed by the card-issuing bank upon 5 percent of the unpaid
amount or the amount spent in excess of the credit limit.

Article 23

The overdraft of credit card shall be calculated and collected for compound interest on a monthly basis and the overdraft of quasi-credit
card shall be calculated and collected for simple interest on a monthly basis. The overdraft interest rate shall be 0.05 percent
of the daily interest rate and shall be consist with the adjustment of the daily interest of the People’s Bank of China.

Article 24

A commercial bank, when handling bank card acceptance business, shall collect settlement handling charges against the merchants under
the standards as follows:

(1)

the settlement handling charges may not be lower than 2 percent of the trading value for the hotel, catering, entertainment, tourism
or other related industries;

(2)

the settlement handling charges may not be lower than 1 percent of the trading value for any other industry.

Article 25

The settlement handling charges for a trans-bank transaction shall be distributed in light of the proportion as follows:

(1)

It is clearly that 90 percent of the settlement handling charges collected against the merchants shall be distributed to the card-issuing
bank, while 10 percent to the acceptance bank in a city which has not established an information exchange center;

The commercial banks may perform the trans-bank transaction by way of apportioning the machines, deputizing for each other, and charging
free mutually upon negotiations as well.

(2)

It is clearly that 80 percent of the settlement handling charges collected against the merchants shall be distributed to the card-issuing
bank, while 10 percent to the acceptance bank and 10 percent to the information exchange center in a city which has established an
information exchange center,.

Article 26

Where a cardholder performs trans-bank withdrawal at ATM, the cost thereof shall be accepted by the cardholder himself/herself, and
the charging rates shall be adopted as follows:

(1)

in case a cardholder performs any withdrawal within the city where the card is obtained, the fees thereof shall be no more than Renminbi
2 yuan;

(2)

in case a cardholder performs any withdrawal beyond the city where the card is obtained, the fees thereof shall be no less than Renminbi
8 yuan.

It is obvious that 70 percent of the commission charges obtained from a trans-bank withdrawal at ATM shall be distributed to the bank
that owns the ATM, while 30 percent to the information exchange center.

Article 27

Where a commercial bank develops bank card acceptance business outside the territory of China as an agency, it shall collect settlement
handling charges, which shall be no more than 4 percent of the trading value, against the merchants.

In case an agency agreement on bank card acceptance business is concluded by a bank within the territory of China and an institution
outside the territory of China, it is clearly that 37.5 percent of the commission charges paid by the merchants shall be distributed
to the bank within the territory of China, while 62.5% to the institution outside the territory of China.

Chapter V Account and Trade Management

Article 28

Where an individual applies for obtaining a bank card (excluding stored-value cards), he shall provide his valid identity certificate
as provided for by the public security department for the card-issuing bank, an inscribed account shall be opened for him upon the
qualification examination of the card-issuing bank.

Where an entity opens a basic deposit account in any financial institution that is within the territory of China, it shall apply for
obtaining an entity card on the basis of the license for opening an account issued by the People’s Bank of China upon examination;

A bank card and its account may be used exclusively by the cardholder as approved by the card-issuing bank and may not be leased or
lent.

Article 29

The funds in the account of a Renminbi entity card shall be deposited from the basic deposit account of the entity by transfer, no
cash may be deposited or withdrawn, and no revenue from merchandise sales may be deposited into the account of the entity card.

Article 30

The funds in the account of a foreign currency entity card shall be deposited from the foreign exchange account of the entity by
transfer, and no cash of foreign currency may be deposited or withdrawn within the territory of China. The foreign exchange account
of the entity shall meet the requirements as follows:

(1)

it shall be opened subject to the related provisions of the People’s Bank of China concerning the administration of foreign exchange
accounts within the territory of China;

(2)

the scope of revenue and expenditure thereof shall comprise payment content accordingly.

Article 31

The funds deposited in the account of the Renminbi card of an individual shall include the cash he holds, or the wage, legal personal
compensation for services and investment returns of the individual which are deposited by account transfer.

Article 32

The funds deposited in the account of the individual foreign currency card shall be cash of the foreign currency he/she holds or
the funds transferred from his/her foreign exchange account (including foreign banknote account). The transfer and deposit of such
account shall be handled pursuant to the Measures of the State Administration of Foreign Exchange for the Administration of Individual
Foreign Exchange.

As regards the withdrawal of the foreign currency cash through an individual foreign currency card within the territory of China,
it shall be handled under the individual foreign exchange control system of China.

Article 33

No settlement of foreign exchange may be made for a foreign currency card in principle within the territory of China except that
it is within the scope or the regions designated by the State Administration of Foreign Exchange.

Article 34

A cardholder may apply for canceling his account after paying off all the money for transactions, principal and interest of overdraft
and the related charges. The capital in a Renminbi entity account shall be transferred into the basic savings account of the entity,
the capital in a foreign currency entity card shall be transferred into the foreign exchange account of the entity accordingly when
canceling an account and no cash may be drawn.

Article 35

A Renminbi entity card may be used for the settlement of the funds for commodity transactions and labor service provision, but no
overdrawing may be performed; the transfer of foreign exchange shall be handled by the local branch of the People’s Bank of China
if it surpasses the starting point provided for by the People’s Bank of China,.

Article 36

The cash withdrawal of credit card shall be authorized by a card-issuing bank on every deal, the accumulated amount of the cash withdrawn
each day for each card may not in excess of Renminbi 2000 yuan.

An upper limit shall be set by the card-issuing bank for the withdrawal made on ATM, the accumulated amount of the cash withdrawn
each day for each card shall be less than Renminbi 5000 yuan.

Article 37

The face value or the value stored in a stored-value card shall be no more than Renminbi 1000 yuan.

Article 38

Where a commercial bank issues the affinity card, it may not grant any donation or pay any other fees to any affinity entity from
its income.

Article 39

In case a card-issuing bank handles such business as deposit, withdrawal, account transfer, settlement or any other transaction for
a cardholder upon password or any other electronic information, the electronic information record generated therefrom shall be the
valid vouchers of this transaction. The card-issuing bank may use the itemized record or detailed list of the transaction as supporting
vouchers for the accounts.

Article 40

The original documents, which are generated from the transaction made with a bank card through any interconnected terminal, shall
be kept for two years at least for reference.

Chapter VI Bank Card Risk Management

Article 41

A card-issuing bank shall examine and verify the credit status of an applicant for credit card seriously and determine the valid
guarantee and method of guarantee upon the strength of the credit status of the applicant.

A card-issuing bank shall recheck the credit status of a credit cardholder regularly and adjust the credit limit of the cardholder
subject to the alteration of the credit status.

Article 42

A system for approval authorization shall be established by any card-issuing bank to define the approval power and transaction limit
of its internal staff of different levels specifically.

Article 43

A card-issuing bank shall enhance the administration of the name list of stop payment, and shall receive and send this list timely.

Article 44

A card-issuing bank, when handling any agency business through a debit card, may not make advance payment for the cardholder or the
client.

Article 45

A card-issuing bank shall comply with the following risk control indicators for the credit card business:

(1)

as regards an individual card, the amount occurred in a single overdraft by a same cardholder shall be no more than Renminbi 20,000
yuan (including the equivalent of foreign currency); as regards an entity card, the said amount no more than Renminbi 50,000 yuan
(including the equivalent of foreign currency).

(2)

as regards an individual card, the monthly overdraft balance of a same account shall be less than Renminbi 50,000 yuan (including
the equivalent of foreign currency); as regards an entity card, the said balance less than 3 percent of the comprehensive credit
limit granted by the card-issuing bank to the entity. The monthly overdraft balance of an entity without comprehensive credit limit
shall be less than Renminbi 100,000 yuan (including the equivalent of foreign currency).

(3)

the total overdraft of a foreign currency card may not be more than 80 percent of the guarantee money (including the amount from pledging
the certificate of deposits) of the cardholder.

(4)

the monthly average overdraft balance newly occurred in more than 180 days (including 180 days, similarly hereinafter) as of the date
when the present Measures implement may be in excess of 15percent of the monthly average amount of the total overdraft balance.

Article 46

The overdraft term of a quasi-credit card shall not exceed 60 days. The minimum payment of a credit card in the first month may not
be lower than 10 percent of the overdraft balance of that month.

Article 47

In case of any overdrawing or defrauding business, a card-issuing bank may recover the money through the channels as follows:

(1)

deducting the cardholder’s guarantee money, disposing the collaterals or pledged articles in accordance with the related laws;

(2)

recovering the overdrawn amount from the guarantor;

(3)

recovering the money by judicial procedures.

Article 48

Where it is not enough to offset the loss after taking the measures listed in Article 47 by a card-issuing bank, it shall be handled
pursuant to the Measures for the Administration of the Reserves for Bad Loans.

Article 49

As regards a recovered overdraft that is already canceled, the principal and interest thereof shall be added to the reserves for
bad loans.

Article 50

In case a branch of a commercial bank pays for participating in the bank card information exchange center of the city where it is
located, it shall apply to the headquarters thereof for approval.

Chapter VII Duties and Responsibilities between the Bank Card Parties

Article 51

The rights of a card-issuing bank are as follows:

(1)

it has the right to perform an examination of the credit status of an applicant, require for its personal information, decide whether
to issue bank card to an applicant and determine the overdraft limit of a credit cardholder as well.

(2)

it is enpost_titled to recover the overdraft made by a cardholder. If any cardholder fails to repay the overdraft amount within the prescribed
time limit, the card-issuing bank has the right to apply for lawful protection and investigate the legal liabilities of the cardholder
or the related parties concerned in accordance with the related laws.

(3)

as regards a cardholder that fails to abide by its articles of association, it has the right to cancel the qualification thereof and
may authorize the related entity to take the bank card back.

(4)

it may neglect the reporting of loss of the electronic purse in any stored-value card or IC card.

Article 52

The obligations of a card-issuing bank are as follows:

(1)

The related materials concerning the use of bank card shall be offered for an applicant for bank card, including the articles of association,
introductions and charging rates. Any current cardholder may require for the aforesaid materials as well.

(2)

A complaint system shall be established focusing on the fairness and effectiveness of bank card services, and the complaint procedures
and telephone number shall be publicized. It shall make a reply regarding the inquiry or requirement of correction from a cardholder
within 30 days.

(3)

The account-checking services shall be offered for cardholders. The account statements shall be provided for cardholders monthly except
for any of circumstances as follows:

(a)

a deposit book or any other transaction log has provided to the cardholder already;

(b)

no transaction incurs since the account statement of the previous month is made and there is no unpaid balance in the account of the
cardholder;

(c)

it has agreed otherwise with the cardholder.

(4)

As regards a bank card account statement as provided by the card-issuing bank to a cardholder, the following items shall be listed:

(a)

value of transaction, account balance (and as regards a credit card, the date when repayment is due, minimum payment and available
credit limit shall also be listed);

(b)

the date when the trading value is recorded into the related account or self-owned account for deduction;

(c)

trading date and category;

(d)

the number of transaction logs;

(e)

name and code number of the merchant acting as the target of payment (excluding the transactions occurring in other places);

(f)

address or telephone number for inquiring or reporting incompatible account statements.

(5)

The service for reporting bank card loss shall be provided by any card-issuing bank for cardholders, a round-clock telephone line
therefrom shall be set, and the card issuing bank shall provide two ways for loss reporting, namely by telephone or in written form,
and the latter is the official way for loss reporting. The responsibilities for loss reporting of both the card-issuing bank and
the cardholder shall be specified in the article of association or the related agreement.

(6)

The importance of password and the liability for its loss to the cardholders shall be clarified in the related articles of association
on bank card or the introductions.

(7)

A card-issuing bank shall be responsible for keeping secret for the credit information of the cardholders.

Article 53

The rights of a cardholder are as follows:

(1)

A cardholder has the rights to enjoy all kinds of services on bank card as promised by the card-issuing bank, supervise the service
quality and complaint the incompetent service if any.

(2)

An applicant or cardholder has the rights to be aware of the functions, use methods, charging items, charging rates, applicable interest
rate and the related calculation formula of the card he selected.

(3)

A cardholder has the right to demand the account statement from the card-issuing bank within the prescribed time limit and is enpost_titled
to inquire into the incompatible content or ask the bank to remedy.

(4)

The cardholder shall assume the responsibility for the alteration of the capital deposited in the debit card no more after going through
the formalities for reporting the loss of a debit card, except it is adjudicated otherwise by the judicial department or arbitral
department.

(5)

A cardholder in enpost_titled to require for the agreement concerning obtaining credit card and shall keep the agreement properly.

Article 54

The obligations of a cardholder are as follows:

(1)

An applicant shall give truthful application materials to a card-issuing bank and provide guarantee consistent with the related requirements
as provided for by the card-issuing bank.

(2)

A cardholder shall abide by the articles of association of the card-issuing bank and the related articles of the Agreement on Obtaining
Bank Card.

(3)

In case of any alterations of the address or occupation of a cardholder or guarantor, the card-issuing bank shall be informed in written
form timely.

(4)

No cardholder may refuse to pay the fees owed to the card-issuing bank with an excuse of having any dispute with any merchant.

Article 55

In case a commercial bank develops a merchant that accepts bank card business, it shall sign an acceptance agreement with the merchant,

CIRCULAR OF THE PEOPLE’S BANK OF CHINA (PBC) ON ALTERATION OF THE APPLICATION FORMS FOR THE ESTABLISHMENT OF COMMERCIAL PRESENCE IN CHINA BY FOREIGN-CAPITAL FINANCIAL INSTITUTIONS AND RELATED ISSUING PROCEDURES

The People’s Bank of China

Circular of the People’s Bank of China (PBC) on Alteration of the Application Forms for the Establishment of Commercial Presence in
China by Foreign-capital Financial Institutions and Related Issuing Procedures

YinFa [1999] No.122

March 31, 1999

Branches and business management departments of the People’s Bank of China:

With a view to further standardizing the examination and approval of foreign-capital financial institutions and improving the efficiency
of examination and approval for those institutions, samples of the Application Form for the Establishment of Operations in China
by Foreign-capital Financial Institutions and the Application Form for the Establishment of Permanent Representative Offices in China
by Foreign-capital Financial Institutions (see the Attachments) are hereby printed and distributed to you. In addition, the issuing
procedures for the application forms are adjusted as follows: the mode of issuing application forms upon the agreement in principle
of the head office of PBC is replaced by that of issuing application forms the moment the foreign-capital financial institutions
request for the establishment of branches or representative offices. All branches and business management departments, after review
and examination, should submit all application materials including the applications forms together with the results of review and
examination to the head office of PBC for further examination and approval. That is hereby notified.

Attachment I: Application Form for the Establishment of Operations in China by Foreign-capital Financial Institutions (omitted)

Attachment II: Application Form for the Establishment of Permanent Representative Offices in China by Foreign-capital Financial Institutions
(omitted)

 
The People’s Bank of China
1999-03-31

 



CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SIMPLIFYING THE PROCEDURES OF PURCHASE AND PAYMENT OF FOREIGN EXCHANGE FOR TECHNOLOGY-INTRODUCTION BY ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Simplifying the Procedures of Purchase and Payment of Foreign Exchange
for Technology-introduction by Enterprises with Foreign Investment

Huifa [1999] No.319

September 28,1999

Branches of the State Administration of Foreign Exchange, Departments of Foreign Exchange of Beijing and Chongqing, Branches of Foreign
Exchange of Dalian, Qingdao, Ningbo, Xiamen, Shenzhen, Assigned banks of foreign exchange with Chinese investment:

In accordance with relevant regulations of the State Council, SAFE will amend the existing “Circular on Strengthening the Administration
on the Purchase and Payment of Foreign Exchange for Intangible Properties” (HuiGuanHanZi [98] No.092)(hereafter “the Circular”) in
order to simplify the purchase and payment in foreign exchange for technology-introduction by enterprises with foreign investment
as follows:

1.

For the purchase and payment in foreign exchange for technology- introduction by enterprises with foreign investment, the Circular
requires the checking of registration validation for technology and equipment introduction of joint venture issued by MOFTEC and
its branches. Since this document, the approval documents for joint venture (the technology- introduction contract must be notified)
issued by MOFTEC and its branches and the approval license of enterprises with foreign investment will be checked instead of registration
validation. Other documents required by the Circular will remain for checking.

2.

The approved purchase and payment in foreign exchange for technology-introduction by enterprises with foreign investment prior to
this document, the approval documents for joint venture, the confirmation letter (the technology-introduction contract must be notified)
issued by MOFTEC and its branches and the approval license of enterprises with foreign investment will be checked instead of registration
validation. Other documents required by the Circular will remain for checking.

3.

This Circular will come into effect as of the issuing. Other requirements in the Circular remain unchanged.

Every branch should transfer to the sub-branches and the local foreign investment banks as soon as possible after received the circular.
Every assigned banks of foreign exchange with Chinese investment should transfer to its sub-branches as soon as possible. Any problems
encountered in carrying out the circular should be replied to the State Administration of Foreign Exchange in time.



 
The State Administration of Foreign Exchange
1999-09-28

 






PREVENTION OF JUVENILE DELINQUENCY LAW

Law of the People’s Republic of China on Prevention of Juvenile Delinquency

(Adopted at the 10th Meeting of the Standing Committee of the Ninth National People’s Congress on June 28, 1999 and
promulgated by Order No. 17 of the President of the People’s Republic of China on June 28, 1999) 

Contents 

Chapter I     General Provisions 

Chapter II    Education for Prevention of Juvenile Delinquency 

Chapter III   Prevention of Juvenile Misbehaviors 

Chapter IV    Rectification and Treatment of Serious Juvenile Misbehaviors 

Chapter V     Juveniles’ Self-protection Against Crimes 

Chapter VI    Prevention of Juveniles From Committing Crimes Again 

Chapter VII   Legal Responsibility 

Chapter VIII  Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted for the purpose of ensuring that juveniles are physically and mentally healthy, helping juveniles
cultivate good conduct and effectively preventing juvenile delinquency. 

Article 2  The prevention of juvenile delinquency shall be based on education and protection, the work shall be started with
school children and efforts shall be made to prevent, rectify and treat juvenile misbehavior before it is too late. 

Article 3  Juvenile delinquency shall be prevented in a comprehensive way under the organization and leadership of the people’s
governments at all levels. 

The government departments concerned, judicial organs, people’s organizations, relevant public organizations, schools, families,
neighborhood committees in cities and villagers committees in the countryside, etc. shall join efforts and take their respective
responsibilities in preventing juvenile delinquency, and creating a good social environment for the cultivation of physical and mental
health of juveniles. 

Article 4  People’s governments at all levels shall perform the following functions and duties in preventing juvenile delinquency: 

(1) to formulate plans for prevention of juvenile delinquency; 

(2) to organize and coordinate efforts of the relevant government departments for public security, education, culture, the press,
publishing, radio, film and television, industry and commerce, civil affairs, and judicial administration, and other public organizations
in preventing juvenile delinquency; 

(3) to inspect the implementation of this Law and work plans; and 

(4) to analyze and disseminate the experience gained in prevention of juvenile delinquency, and set up and commend advanced units
and individuals. 

Article 5  For prevention of juvenile delinquency, research on education in puberty, psychological corrections and measures
for prevention of crimes shall be improved in light of the physiological and psychological characteristics of juveniles at different
ages. 

Chapter II 

Education for Prevention of Juvenile Delinquency 

Article 6  Juveniles shall be educated in ideals, morality, the legal system as well as in patriotism, collectivism and socialism.
Juveniles who have reached the age of receiving compulsory education shall, while receiving the education mentioned above, be educated
for prevention of crimes. 

Education for prevention of juvenile delinquency is for the purpose of enhancing juveniles’ legal conceptions, helping them heed
the harm done to themselves, their families and the community by their violations of law and criminal actions and become aware of
the legal responsibilities incurred by such violations and actions and of the importance of obeying rules of discipline and laws
and preventing themselves from breaking laws and committing crimes. 

Article 7  The administrative departments for education and schools shall incorporate the education for prevention of crimes
into school plans for education and teaching as the content of legal education, and shall, in combination with the common and frequently-occurring
cases of juvenile delinquency, educate juveniles of different ages in prevention of delinquency respectively. 

Article 8  Judicial administration departments, administrative departments for education and the Communist Youth League and
Young Pioneers organizations shall, in light of specific conditions, arrange and hold exhibitions, give reports and lectures, and
arrange other forms of activities to disseminate the legal system with emphasis on prevention of juvenile delinquency. 

Schools shall, in light of specific conditions, hold activities with education for prevention of juvenile delinquency as the main
content. The administrative departments for education shall take the results of education for prevention of juvenile delinquency
as an important part of assessment of school work. 

Article 9  Schools shall engage full-time or part-time teachers for legal education. Schools may engage after-school legal counselors,
where conditions permit. 

Article 10  Parents and other guardians of juveniles shall take direct responsibility for giving legal education to juveniles.
Schools that conduct education among students in prevention of crimes, shall make their plans for such education known to the parents
and other guardians of the juveniles, who shall carry out the education in combination with the school plans and according to specific
conditions. 

Article 11  Authorities of Children’s Palaces, recreation centers for juveniles and other places for out-of-school activities
shall take education for prevention of juvenile delinquency as an important part of their work and carry out various forms of publicity
and education activities in this respect. 

Article 12  For juveniles who have reached the age of 16 but are under the age of 18 and who are preparing for employment, vocational
education and training institutions and employers shall include legal knowledge and education for prevention of crimes in vocational
training. 

Article 13  The neighborhood committees in cities and villagers’ committees in the countryside shall carry out activities for
the publicity of the legal system with stress on prevention of juvenile delinquency. 

Chapter III 

Prevention of Juvenile Misbehavior 

Article 14  The parents and other guardians of juveniles and schools shall advise juveniles to keep from the following kinds
of misbehavior: 

(1) ) playing truant, staying out at night; 

(2)  carrying controlled knives; 

(3)  fighting, or abusing people; 

(4)  forcibly demanding money or things of value from others; 

(5) stealing, or deliberately damaging property; 

(6) taking part in gambling or gambling in disguised form; 

(7) watching or listening in to pornographic or obscene audio-video products, or reading such stuff; 

(8) going to commercial singing and dancing halls and other such places that are not suitable for juveniles as prescribed by laws
and regulations; and 

(9) other kinds of misbehavior that seriously run counter to social morality. 

Article 15  The parents and other guardians of juveniles and schools shall advise juveniles to keep from smoking and getting
drunk. No business places may sell cigarettes or alcoholic drinks to juveniles. 

Article 16  where middle or primary school students play truant, the school shall get in touch with their parents or other guardians
without delay. 

Where juveniles stay out at night without permission, their parents or other guardians, or the boarding school concerned shall look
for them without delay, or approach a public security organ for help. Whoever allows a juvenile to stay at his or her place at night
shall obtain permission of the juvenile’s parents or other guardians in advance, or inform them or the school concerned of the matter
within 24 hours, or report to a public security organ without delay. 

Article 17  When parents or other guardians of juveniles and schools find that juveniles organize or join gangs that perpetrate
misbehavior, they shall stop the juveniles promptly. When they find that the gangs have violated laws or committed criminal offences,
they shall report the matter to public security organs. 

Article 18  When parents or other guardians of juveniles and schools find that juveniles are instigated or coerced to perpetrate
or lured into illegal or criminal actions, they shall report the matter to public security organs. When the public security organs
receive the reports, they shall immediately investigate and deal with the cases in accordance with law and, where the personal safety
of juveniles is endangered, they shall promptly take effective measures to protect them. 

Article 19  Parents or other guardians of juveniles may not allow juveniles under the age of 16 to be free from their guardianship
and live alone. 

Article 20  Parents or other guardians of juveniles may not give a free rein the juveniles, compel them to run away from home,
or discard their duty of guardianship. 

Where juveniles run away from home, their parents and other guardians shall look for them without delay, or approach public security
organs for help. 

Article 21  Where the parents of juveniles are divorced, both parties shall have the duty to educate their children, and neither
party may fail to perform such duty on the pretext of divorce. 

Article 22  The stepparents and adoptive parents shall perform the same duty for the adolescent children they are supporting
and educating as the duty performed by parents to their adolescent children in prevention of crimes, as prescribed by this Law. 

Article 23  Schools shall enforce education and administration among juveniles who are involved in misbehavior and may not discriminate
against them. 

Article 24  The administrative departments for education and schools shall hold various forms of activities like lectures, informal
discussions and training programs to make known to the participants good, effective educational methods in light of the physiological
and psychological characteristics of juveniles in different stages of growth and to show the teachers, the parents of juveniles and
other guardians how to effectively prevent, and rectify and treat juveniles’ misbehavior. 

Article 25  Where teachers, administrators or workers instigate or coerce juveniles to perpetrate or lure them into misbehavior,
or where these people are ill-behaved, have a baneful influence on and are not suitable for school work, the administrative departments
for education and the school authorities shall dismiss or discharge them; where a crime is constituted, criminal responsibility shall
be investigated in accordance with law. 

Article 26  It is prohibited to set up commercial singing and dancing halls, commercial electronic games centers and other places
that are not suitable for juveniles in the neighborhood of middle or primary schools. The kinds of halls, centers and places mentioned
above shall be specified by people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. 

The halls, centers and places set up before this Law goes into effect shall to be moved to other areas or closed down within a time
limit. 

Article 27  Public security organs shall tighten control for public security around middle and primary schools, promptly stop
and deal with illegal or criminal actions that are committed around such schools. The neighborhood committees in cities and villagers’
committees in the countryside shall assist public security organs in successfully maintaining public security around middle and primary
schools. 

Article 28  Public security stations, neighborhood committees in cities and villagers’ committees in the countryside shall keep
tabs on the schooling and employment of juveniles among temporary resident populations in their administrative areas. With regard
to juveniles among temporary resident populations who perpetrate misbehavior, they shall urge the parents and other guardians of
the juveniles to educate the juveniles effectively and to stop their misbehavior. 

Article 29  No one may instigate or coerce juvenile to perpetrate or lure them into misbehavior prescribed by this Law, or provide
conditions for them to perpetrate misbehavior. 

Article 30  Publications meant for juveniles may not contain such contents as may induce juveniles to violate law or commit
criminal offenses, or such contents as may impair the physical and mental health of juveniles’ contents that exaggerate violence,
pornography, gambling, terror, etc. 

Article 31  No unit or individual may sell or loan to juveniles publications, audio-video products or electronic publications
which contain such contents as may induce juveniles to violate laws or commit criminal offenses, and such contents as may impair
the physical and mental health of juveniles, contents that exaggerate violence, pornography, gambling, terror, etc. 

No unit or individual may, by means of telecommunications, computer network, etc., provide such contents and information about such
contents that may impair the physical and mental health of juveniles as prescribed by the preceding paragraph. 

Article 32  No programs of radio, film, TV and drama may contain such contents as may impair the physical and mental health
of juveniles, contents that exaggerate violence, pornography, gambling, terror, etc. 

The administrative departments for radio, film and television and the administrative departments for culture shall strengthen administration
of the programs of radio, film, TV and drama and the various showplaces. 

Article 33  Around commercial singing and dancing halls and other places that are not suitable for juveniles, conspicuous no-admittance
signs for juveniles shall be put up, and no juveniles may be admitted into such places. 

Juveniles may not be admitted into commercial electronic games centers except during festivals and holidays specified by the State,
and conspicuous no-admittance signs for juveniles shall be put up there. 

Where it is difficult to judge whether a person is juvenile or not, the worker of such a center may ask person to show his identity
card. 

Chapter IV 

Rectification and Treatment of Serious Juvenile Misbehavior 

Article 34  ” Serious misbehavior ” as used in this Law refers to the following illegal actions that do serious harm to the
community but are not serious enough for criminal punishment: 

(1) gathering people to create disturbance, and disrupting public order; 

(2) carrying controlled knives and refusing to stop doing so after repeated criticisms; 

(3) holding up and beating people many times or forcibly demanding money or things of value from others; 

(4) spreading obscene publications or audio-video products, etc.; 

(5) engaging in licentious or pornographic activities or harlotry; 

(6) committing theft many times; 

(7) taking part in gambling and refusing to stop doing so after repeated criticisms; 

(8) ingesting or injecting drugs; and 

(9) other actions that do serious harm to the community. 

Article 35  When juveniles are found to perpetrate the serious misbehavior as prescribed by this Law, they shall be stopped
doing so without delay. 

When juveniles are found to perpetrate serious misbehavior as prescribed by this Law, their parents or other guardians and the schools
concerned shall coordinate their efforts and take measures to subject them to strict discipline, or may send them to work-study schools
for rectification or treatment, and for education. 

To send juveniles to work-study schools for rectification or treatment, and for education, their parents or other guardians or their
former schools shall submit applications for approval to the administrative departments for education. 

Article 36  Work-study schools shall impose strict control on and enforce education among the juveniles who study there. They
shall, in addition to the same courses offered by ordinary schools, as required by the Law on Compulsory Education, put emphasis
on education in the legal system and help the juveniles to rectify or treat their serious misbehavior in light of the causes for
such misbehavior and the psychological characteristics of the juveniles. 

Families and schools shall show concern for and take good care of the juveniles who study in work-study schools and respect their
personality and dignity, and may not impose physical punishment on, maltreat, or discriminate against them. Juveniles who graduate
from work-study schools shall enjoy equal rights with students who graduate from ordinary schools in entering schools of a higher
grade and in employment, and no unit or individual may discriminate against them. 

Article 37  Juveniles who perpetrate serious misbehaviors, as specified in this Law, that constitute violations of the regulations
governing public security shall be punished for public security by public security organs according to law. Juveniles who are exempted
from punishment because they have not reached the age of 14 or the circumstances are especially minor may be subjected to reprimand. 

Article 38  Where Juveniles are not given criminal punishment because they have not reached the age of 16, their parents or
other guardians shall be ordered to subject them to strict discipline; when necessary, they may also be sheltered for correction
by governments in accordance with law. 

Article 39  During the period when juveniles are sheltered for correction, the executing organs shall make sure that they continue
to receive education in cultural and legal knowledge or vocational techniques; for those who have not finished compulsory education,
the executing organs shall make sure that they continue to receive such education. 

Juveniles who are released from sheltering for correction or from reeducation through labor shall enjoy equal rights with other juveniles
in going back to school and entering schools of a higher grade and in employment, and no unit or individual may discriminate against
them. 

Chapter V 

Juveniles’ Self-protection Against Crimes 

Article 40  Juveniles shall observe laws and regulations and live up to the standards of public morality, be aware of the importance
of self-esteem, self-discipline and self-improvement, increase their ability to distinguish between right and wrong and protect themselves,
and resist of their own volition any inducement to and corrosive influence by various misbehavior and illegal and criminal actions. 

Article 41  Juveniles who are abandoned or maltreated by their parents or other guardians shall have the right to request public
security organs, administrative departments for civil affairs, organizations of the Communist Youth League, women’s federations,
organizations for protection of juveniles or schools, neighborhood committee in cities, or villagers’ committees in the countryside
to furnish them protection. The departments or organizations mentioned above that are request for help shall accept the request and
take measures to help the juveniles immediately where necessary. 

Article 42  When juveniles find that anyone perpetuates actions prohibited by the provisions in Chapter III of this Law or commits
criminal offenses against themselves or other juveniles, they may report to public security organs or competent government departments
through their schools, their parents or other guardians, and they themselves may do so too. The organs or departments that receive
the reports shall promptly investigate and deal with the cases according to law. 

Article 43  Judicial organs, schools and the community shall give especial protection to juveniles who fight and report against
criminal offenses and ensure that they are free from retaliation. 

Chapter VI 

Prevention of Juveniles From 

Committing Criminal Offenses Again 

Article 44  In investigating juveniles who have committed criminal offenses investigating for criminal responsibility, the guidelines
of enlightenment, persuasion and reformation and the principle of taking enlightenment as the dominant factor while making punishment
subsidiary shall be adhered to. 

When handling cases involving juvenile delinquency, judicial organs shall guarantee that juveniles exercise their litigation rights
and get legal assistance, and enlighten them on the legal system in accordance with the physiological and psychological characteristics
of juveniles and the circumstances under which they commit the criminal offenses. 

Juvenile students against whom mandatory penal measures are taken may not be struck off the school roll before the verdicts of the
People’s Courts go into effect. 

Article 45  Trials of criminal cases involving juvenile delinquency in a People’s Court shall be conducted by a juvenile court
formed, in accordance with law, by judges who are familiar with the physical and mental characteristics of juveniles or of such judges
and people’s assessors. 

No cases involving criminal offenses committed by juveniles who have reached the age of 14 but are under the age of 16 shall be heard
in public. Generally, no cases involving criminal offenses committed by juveniles who have reached the age of 16 but are under the
age of 18 shall be heard in public either. 

For cases involving criminal offenses committed by juveniles, no names, dwelling places, photos nor materials from which people can
tell who the juveniles are may be disclosed in news reports, film and television programs and publications. 

Article 46  Juveniles who are detained or arrested or who are serving their sentences shall be jailed, administered and educated
separately from adults. During the period when juvenile delinquents are serving their sentences, the executing organ shall enforce
legal education and conduct vocational and technical training among them. For juvenile delinquents who have not finished compulsory
education, the executing organ shall ensure that they continue to receive such education. 

Article 47  Parents and other guardians of juveniles, schools, neighborhood committees in cities and villagers’ committees in
the countryside shall take effective measures to help educate juveniles who are not given or are exempted from criminal punishment
because they have not reached the age of 16 and juveniles who are sentenced to criminal punishment of non-imprisonment or to criminal
punishment with a suspension of execution or who are released on parole, in order to assist judicial organs in a successful educating
and reforming the juveniles. 

The neighborhood committees in cities or villagers’ committees in the countryside may engage retired persons or other persons who
are exemplary in their ideology and moral character, honest and upright and enthusiastic about educational work among juveniles,
to assist them in doing a good job of educating and reform the juveniles mentioned in the preceding paragraph. 

Article 48  Juveniles who, in accordance with law, are exempted from criminal punishment, sentenced to criminal punishment of
non-imprisonment, sentenced to criminal punishment with a suspension of execution, or released on parole, or for whom criminal punishment
have executed shall enjoy equal rights with other juveniles in going back to school and entering schools of a higher grade and in
employment; no unit or individual may discriminate against them. 

Chapter VII 

Legal Responsibility 

Article 49  Where parents or other guardians of juveniles fail to perform their duties of guardianship and let juveniles perpetrate,
as they like, misbehavior or serious misbehavior specified in this Law, public security organs shall reprimand the parents or other
guardians of the juveniles and order them to subject the juveniles to strict discipline. 

Article 50  Where parents or other guardians of juveniles, in violation of the provisions in Article 19 of this Law, allow juveniles
under the age of 16 to be free from their guardianship and live alone, public security organs shall reprimand the parents and other
guardians of the juveniles and order them to set it right immediately. 

Article 51  Where a member of a public security organ, in violation of the provisions in Article 18 of this Law, fails to investigate
and deal with a case or take effective measures immediately after receiving the report and thus grossly neglects his duty, he shall
be given administrative sanctions; if serious consequences are caused and a crime is constituted, he shall be investigated for criminal
responsibility in accordance with law. 

Article 52  If anyone, in violation of the provisions in Article 30 of this Law, publishes publications which contain such contents
as may induce juveniles to violate laws or commit criminal offenses, or such contents as may impair the physical and mental health
of juveniles, contents that exaggerate violence, pornography, gambling, terror, etc., the publications and his illegal gains shall
be confiscated by the administrative department for publishing, and he shall also be fined not less than 3 times but not more than
10 times his illegal gains; if the circumstances are serious, the publications and his illegal gains shall be confiscated, he shall
be ordered to suspend business for rectification or his license shall be revoked. The persons who are directly in charge and the
other persons who are directly responsible shall be fined. 

Whoever produces or reproduces publications for juveniles which propagate obscenity or sells, loans or spreads such publications
shall be punished for public security in accordance with law; if the violation constitutes a crime, he shall be investigated for
criminal responsibility in accordance with law. 

Article 53  If anyone, in violation of the provisions in Article 31 of this Law, sells or loans to juveniles publications, audio-video
products or electronic publications which contain such contents as may induce juveniles to violate laws or commit criminal offenses,
and such contents as may impair the physical and mental health of juveniles, contents that exaggerate violence, pornography, gambling,
terror, etc., or, by means of telecommunications, computer network, etc., provides such contents and information about such contents
that may impair the physical and mental health of juveniles, the said publications, audio-video products, electronic publications
and his illegal gains shall be confiscated and he shall be fined by the competent government department. 

If any unit commits any action mentioned in the preceding paragraph, the publications, audio-video products, electronic publications
and its illegal gains shall be confiscated, it shall be fined, and the persons who are directly in charge and the other persons who
are directly responsible shall also be fined. 

Article 54  If any cinema, theatre, video-tapes show hall and other show place shows or plays such programs as may impair the
physical and mental health of juveniles, programs that exaggerate violence, pornography, gambling, terror, etc., the audio-video
products which it illegally shows or plays and its illegal gains shall be confiscated by the competent government department, it
shall be fined, and the persons who are directly in charge and the other persons who are directly responsible shall also be fined;
if the circumstances are serious, if shall be ordered to suspend business for rectification or its business license shall be revoked
by the administrative department for industry and commerce. 

Article 55  If commercial singing and dancing halls, other places that are not suitable for juveniles, and commercial TV games
centers, in violation of the provisions in Article 33 of this Law, fail to put up conspicuous no-admittance signs or allow juveniles
to go there, they shall be ordered to set it right, given administrative warning, ordered to suspend business for rectification,
their illegal gains shall be confiscated, and they shall be fined by the administrative department for culture, and the persons who
are directly in charge and the other persons who are directly responsible shall also be fined; if the circumstances are serious,
the administrative department for industry and commerce shall revoke their business licences. 

Article 56  Whoever instigates or coerces juveniles to perpetrate or lures them into misbehavior or serious misbehavior as prescribed
by this Law, or provides conditions for juveniles to perpetrate the said misbehavior, if his action constitutes a violation of the
regulations governing public security, shall be punished for public security by a public security organ in accordance with law; if
a crime is constituted, he shall be investigated for criminal responsibility in accordance with law. 

Chapter VIII 

Supplementary Provisions 

Article 57  This Law shall go into effect as of November 1, 1999.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






SUPPLEMENTARY REPLY OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ISSUES CONCERNING ADMINISTRATIVE PENALTIES FOR VIOLATION OF PROVISIONS OF FOREIGN EXCHANGE ADMINISTRATION

The State Administration of Foreign Exchange

Supplementary Reply of the State Administration of Foreign Exchange on Issues Concerning Administrative Penalties for Violation of
Provisions of Foreign Exchange Administration

HuiFa [1999] No.48

February 11, 1999

All subordinate administrations of the State Administration of Foreign Exchange (SAFE), the Departments of Foreign Exchange Administration
of Beijing and Chongqing:

To impose the penalties in cases in violation of laws and regulations on foreign exchange discovered during the examination, on December
25, 1998, SAFE issued the Circular on Issues Concerning Administrative Penalties for Violation of Provisions of Foreign Exchange
Administration, which clarifies the problems that should be paid attention to during the imposition of penalties for violation of
law and regulations on foreign exchange. However, the Penalty Decision and other materials submitted by some subordinate administrations
still reflect such problems as lack of evidence, abuse of penalty criteria and improper application of law. To safeguard the solemnity
of law enforcement for foreign exchange rectification and to successfully complete this examination, supplementary issues that should
attract enough attention in the process of conducting investigation and prosecution for violation of laws and regulations on foreign
exchange are hereby noticed as follows:

1.

Determining the nature of cases in violation of laws and regulations on foreign exchange, legal reference and penalty criteria

Procedures for Investigating and Handling Cases in Violation of Foreign Exchange Administration should be strictly implemented. Cases
of in violation of laws and regulations on foreign exchange should be classified and the penalties should be determined in accordance
with such public rules or regulations as the Regulations of the People’s Republic of China on Foreign Exchange Administration. Documents
coded HuiFa [1998] No.37, 43, 55 and 98 of the State Administration of Foreign Exchange are for internal reference for the penalty
decisions and should not be directly quoted for case classification and penalty decision. Fraudulent purchase of foreign exchange
through letters of credit or collection should be investigated and prosecuted as cases of false customs declaration. Enterprises
that fail to submit customs declaration forms for examination or fail to cancel them after verification through letters of credit
or collection should be punished in accordance with the penalty criteria stipulated in the document coded HuiFa [1998] No.98.

2.

Collection of confiscated fines

During this examination, a large majority of the businesses in violation of the regulations on foreign exchange are foreign trading
companies that serve as import agencies. Full collection of confiscated fines may affect local budgets to some extent. In view of
the consistency of the policy of turning in the confiscated fines in the foreign exchange examination, the proportion of the confiscated
fines to be turned in by local administrations (including sub local administrations) in this examination is hereby adjusted as follows:
50% is turned in to the State Administration of Foreign Exchange and then turned in to the state budget; the other 50% is turned
in to local budgets. The provisions in the document coded HuiFa [1998] No.107 of turning in the confiscated fines in full in this
examination should be terminated. Local administrations that have turned in the confiscated fines in full are kindly requested to
report the situation to the general administration in writing and the general administration will made a refund upon examination.

As for some industries that have special difficulties in turning in the confiscated fines in full within the prescribed time limit,
local administrations should handle strictly and report to the general administration as special cases. While reporting, reasons
should be stated and the financial statements be submitted. The deferred payment should only be granted upon the approval of the
general administration. The period for deferred payment should be no longer than 1 year.

3.

Handover of cases in violation of laws and regulations on foreign exchange

Cases in violation of laws and regulations on foreign exchange involving the evasion of customs duties or smuggling should be handed
over, after administrative penalties are made, to customs where the filing documents were signed to be investigated and punished
for duty evasion or smuggling. Cases in violation of laws and regulations on foreign exchange in which business units in the customs
declaration form belong to “Three Without Enterprises” or fake units should be directly handed over by local administrations of foreign
exchange in those areas to administrations of foreign exchange in areas where the foreign exchange was purchased or sold and be reported
to the general administration for file-keeping purpose.

4.

Treatment in case the main body in violation of laws and regulations on foreign exchange has disappeared.

In case that the suspected enterprise has disappeared and cannot be brought to justice in cases in violation of laws and regulations
on foreign exchange, local administrations should summarize and provide a detailed list, notify administrations of industry and commerce
to cancel the registration of the enterprise, instruct banks to stop offering foreign exchange service to it, and then properly end
the case. The detailed list should be submitted to the general administration for file-keeping purpose.

It is hereby notified.



 
The State Administration of Foreign Exchange
1999-02-11

 






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

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-03-10 Effective Date  1999-04-01  


Interim Provisions on Import Taxes on Articles Taken Into China by Foreigners Permanently Residing in China

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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





REPLY OF THE STATE COUNCIL CONCERNING THE REVISING OF THE PROVISIONS ON REGISTRATION ADMINISTRATION OF LEGAL REPRESENTATIVES OF ENTERPRISE LEGAL PERSON

Category  ADMINISTRATION FOR INDUSTRY AND COMMERCE Organ of Promulgation  the State Council Status of Effect  In Force
Date of Promulgation  1999-06-23 Effective Date  1999-06-23  


Reply of the State Council Concerning the Revising of the Provisions on Registration Administration of Legal Representatives of Enterprise
Legal Person


Appendix: Provisions on Registration Administration of Legal Representatives of Enterprise Legal Person

(Replied by the State Council on June 12, 1999, and promulgated by Decree No. 90 of the State Administration for Industry and Commerce
on June 23, 1999)

    The State Council approved the following revisions made to the Provisions on Registration Administration of
Legal Representatives of Enterprise Legal Person:

    1.Paragraph 1 of Article 7 is revised to Article 6 as follows: ” In applying for modification of the registration
of legal representative, an enterprise legal person shall submit the following documents to the original enterprise registration
organ:

    (1) a document removing the original legal representative of the enterprise;

    (2) a document appointing the new legal representative of the enterprise;

    (3) an application for modification of the registration signed by the original legal representative or the
proposed legal representative.

    Paragraphs 2 and 3 of Article 7 are deleted.

    2.One article is added as Article 7: “Where a limited liability company or a joint stock limited company wishes
to replace its legal representative, a decision shall be made at a meeting convened by the Shareholders’ Meeting, the Shareholders’
General Meeting, or the Board of Directors; however, if the original legal representative cannot or fails to fulfill his duty, thereby
causing the meeting of the Shareholders’ Meeting, the Shareholders’ General Meeting, or the Board of Directors can not be convened
according to legal procedures, the meeting shall be convened and presided over by a director selected by more than half of the directors,
or a shareholder who makes the most investment or holds the biggest vote right of shares or his delegated representative, and at
which a decision shall be made.”

    Moreover, several changes to the expression are made to the Provisions on Registration Administration of Legal
Representatives of Enterprise Legal Person and the order of articles and paragraphs are modified.

    The Provisions on Registration Administration of Legal Representatives of Enterprise Legal Person shall be
revised correspondingly according to this Reply and promulgated by your Bureau.

Appendix: Provisions on Registration Administration of Legal Representatives of Enterprise Legal Person
(Approved by the State Council on February 22,1998, promulgated by Decree No.85 of the State Administration for Industry and Commerce
on April 7,1998, approved and revised by the State Council on June 12, 1999, and promulgated by the Decree No. 90 of the State Administration
for Industry and Commerce on June 23, 1999)

    Article 1  These Provisions are formulated to standardize the registration administration of legal representatives of enterprise
legal person.

    Article 2  These Provisions are applicable to registration administration of legal representatives in registration of enterprise
legal persons (including, here and below, registration of companies).

    Article 3  A legal representative of an enterprise legal person (hereinafter referred to the legal representative) shall, upon the
examination and approval of the enterprise registration organ, obtain the status of the legal representative.

    Article 4  No person under any one of the following circumstances shall serve as a legal representative, nor shall an enterprise
registration organ grant registration upon examination:

    (1) lacking capacity for civil conduct or with limited capacity for civil conduct.

    (2) undergoing criminal punishment or under a criminal coercive measure.

    (3) having been wanted for arrest by public security organs or State security authorities.

    (4) having been sentenced to criminal punishment for the crime of embezzlement and bribery, financial fraud
or for disrupting the order of the socialist market economy, where not more than five years have elapsed since the expiration of
the enforcement period; or having been sentenced to criminal punishment for another crime, where not more than three years have elapsed
since the expiration of the enforcement period; or having been deprived of political rights for committing a crime, where not more
than five years have elapsed since the expiration of the enforcement period.

    (5) having served as the legal representative, director or manager personally responsible for the bankruptcy
liquidation of an the enterprise due to mismanagement, where not more than three years have elapsed since the date of completion
of the bankruptcy liquidation.

    (6) having served as the legal representative of an enterprise that had its business license revoked for violating
the law, where such representative bears individual liability therefor and not more than three years have elapsed since the date
of revocation of the business license.

    (7) burdened with relatively large amounts of personal debts that have fallen due but have not been settled.

    (8) under other circumstances, prescribed by law and the State Council, by which disqualified from serving
as a legal representative.

    Article 5  The procedures for selecting and removing an enterprise legal representative shall comply with the provisions of the law,
administrative regulations and articles of association of a legal person enterprise.

    Article 6  In applying for modification of the registration of legal representative, the enterprise legal person shall submit the
following documents to the original enterprise registration organ:

    (1) a document removing the original legal representative of the enterprise;

    (2) a document appointing the new legal representative of the enterprise;

    (3) the modification of registration application signed by the original legal representative or the proposed
legal representative.

    Article 7  Where a limited liability company or a joint stock limited company wishes to replace its legal representative, a decision
shall be made at a meeting convened by the Shareholders’ Meeting, the Shareholders’ General Meeting, or the Board of Directors; however,
if the original legal representative cannot or fails to fulfill his duty, thereby causing the meeting of the Shareholders’ Meeting,
the Shareholders’ General Meeting, or the Board of Directors can not be convened according to legal procedures, the meeting shall
be convened and presided over by a director selected by more than half of the directors, or a shareholder who makes the most investment
or holds the biggest vote right of shares or his delegated representative, and at which a decision shall be made.

    Article 8  In the event of the occurrence of one of the circumstances listed in Article 4 of these Provisions during the tenure of
office of a legal representative, the enterprise legal person concerned shall apply for a modification of the registration of its
legal representative.

    Article 9  A legal representative shall exercise his functions and powers within the terms of reference prescribed by law, administrative
regulation and articles of association of the enterprise legal person.

    Article 10  The legal representative shall submit to the enterprise registration organ a sample of his signature for the record.

    Article 11  A person, in violation of these Provisions, obtaining the status of legal representative by concealing truth and adopting
deceptive means, shall be ordered to make corrections and fined not less than 10,000 yuan but not more than 100,000 yuan by the enterprise
registration organ; if the circumstances are serious, the enterprise registration shall be rescinded, and the business license of
the enterprise legal person shall be revoked.

    Article 12  If, in violation of these Provisions, there is a failure to apply to register the modification of legal representative
though it should be done, the enterprise registration organ shall order the modification done within a specified time limit; if there
is a failure to modify the registration, after the expiration of the time limit, a fine of not less than 10,000 yuan but not more
than 100,000 yuan shall be imposed; if the circumstances are serious, the enterprise registration shall be rescinded, and the business
license of the enterprise legal person shall be revoked.

    Article 13  All units or individuals shall, if finding a legal representative falling into one of the circumstances listed in Article
4 of these Provisions, have the right to make a disclosure to enterprise registration organ.

    Article 14  These Provisions take effect as of the date of promulgation.





ADMINISTRATIVE RECONSIDERATION LAW

Category  JUDICIAL ADMINISTRATION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1999-04-29 Effective Date  1999-10-01  


ADMINISTRATIVE RECONSIDERATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Contents:
Chapter I  General Provisions
Chapter II  Scope of Administrative Reconsideration
Chapter III  Application of Administrative Reconsideration
Chapter IV  Acceptance of Administrative Reconsideration
Chapter V  Decision of Administrative Reconsideration
Chapter VI  Legal Responsibility
Chapter VII  Supplementary Provisions

(Adopted at the Ninth Meeting of the Standing Committee of the Ninth National People’s Congress on April 29, 1999, promulgated by
Order No.16 of the President of the People’s Republic of China on April 29, 1999, and effective as of October 1, 1999.)

Contents:

    Chapter I General Provisions

    Chapter II Scope of Administrative Reconsideration

    Chapter III Application of Administrative Reconsideration

    Chapter IV Acceptance of Administrative Reconsideration

    Chapter V Decision of Administrative Reconsideration

    Chapter VI Legal Responsibility

    Chapter VII Supplementary Provisions

Chapter I  General Provisions

    Article 1  This Law is enacted pursuant to the Constitution for the purpose of preventing and correcting any illegal or improper
specific administrative acts, protecting the lawful rights and interests of citizens, legal persons and other organizations, safeguarding
and supervising the exercise of functions and powers by administrative organs in accordance with law.

    Article 2  This Law is applicable to a citizen, legal person or any other organization who considers that his or its lawful rights
and interests have been infringed upon by a specific administrative act, and applies for administrative reconsideration to an administrative
organ which accepts the application for administrative reconsideration, and makes a decision of administrative reconsideration.

    Article 3  Administrative organs performing their duties of administrative reconsideration in accordance with this Law are administrative
reconsideration organs. The offices responsible for legal affairs within administrative reconsideration organs shall handle concrete
matters related to administrative reconsideration and perform the following duties:

    (1) accepting applications for administrative reconsideration;

    (2) taking of evidence from organizations and persons concerned, and consulting files and materials;

    (3) reviewing the legality and appropriateness of any specific administrative acts being applied for administrative
reconsideration, and drawing up decisions of administrative reconsideration;

    (4) handling or forwarding applications for reviewing items listed in Article 7 of this Law;

    (5) putting forward proposals, in accordance with statutory authorities and procedures, on disposing acts
violating the provisions of this Law committed by administrative organs;

    (6) handling affairs responding to action, if deciding to bring a suit in circumstances of refusing to accept
the reconsideration decision;

    (7) other duties prescribed by laws and regulations.

    Article 4  Administrative reconsideration organs shall, when performing duties of administrative reconsideration, follow the principles
of being lawful, fairness, openness, timely, and convenient to peoples, insist on correcting every wrong, and ensuring to implement
laws and regulations correctly.

    Article 5  If any citizen, legal person or any other organization refuses to accept an administrative reconsideration decision, he
or it may, in accordance with the provisions of Administrative Procedure Law of the People’s Republic of China, bring an administrative  lawsuit
before a people’s court, except that the administrative decision is, as provided for by law, a final decision.
Chapter II  Scope of Administrative Reconsideration

    Article 6  A citizen, legal person, or any other organization may, in accordance with this Law, file an application for administrative
reconsideration under any one of the following circumstances:

    (1) an administrative sanction, such as warning, fine, confiscation of illegal gains or property, order to
suspend production or business, suspension or rescission of license or permit, administrative attachment, which one refuses to accept;

    (2) a compulsory administrative measure, such as restriction of personal freedom or the sealing up, seizing
or freezing of property, which one refuses to accept;

    (3) an administrative decision of altering, suspending or discharging certificates, such as a license, permit,
credit certificate, credential, which one refuses to accept;

    (4) an administrative decision of confirming ownership or right to use of natural resources, such as land,
mineral resources, rivers, forests, mountains, grasslands, unreclaimed land, beaches, maritime waters, which one refuses to accept;

    (5) infringement upon one’s managerial decision-making power, which, one holds,has been perpetrated by an
administrative organ;

    (6) cases where an administrative organ, which has altered and nullified one’s agricultural contract, is considered
to have infringed upon one’s rights and interests;

    (7) cases where an administrative organ is considered to have illegally raised funds, levied property, apportioned
charge, or demanded the performance of duties;

    (8) cases where an administrative organ is considered to have illegally handled issuing a certificate, such
as a permit, license, credit certificate, or credential, or examining and approving or registering relative items, which one considers
oneself legally qualified to apply for;

    (9) cases where an administrative organ is considered to have failed to perform its statutory duty, according
to law, of protecting one’s rights of the person and of property, and one’s rights to receive education, as one has applied for;

    (10) cases where an administrative organ is considered to have failed to issue a pension, social insurance
money or minimum maintenance fee for living according to law; and

    (11) cases in which other specific administrative acts of an administrative organ are considered to have infringed
upon other lawful rights and interests.

    Article 7  If a citizen, legal person or any other organization considers any of the following provisions, which is the basis of
a specific administrative act of an administrative organ, to be illegal, he or it may, when filing an application for administrative
reconsideration on a specific administrative act, file an application to the administrative reconsideration organ for reviewing the
said provisions:

    (1) provisions of departments under the State Council;

    (2) provisions of local people’s governments at or above the county level and their departments;

    (3) provisions of people’s governments of towns or townships.

    The provisions set forth in the preceding paragraph do not include rules of departments and commissions under
the State Council, and local people’s governments. Review on rules shall be handled according to relevant laws and administrative
regulations.

    Article 8  If an administrative sanction or any other personnel disposition by an administrative organ is refused to accept, appeal
may be made according to the relevant provisions of laws and administrative regulations.

    If mediation or any other disposition on a civil dispute undertaken by an administrative organ is refused
to accept, an application for arbitration may be made or a lawsuit may be brought before a people’s court.
Chapter III  Application of Administrative Reconsideration

    Article 9  Any citizen, legal person or any other organization, who considers that a specific administrative act has infringed upon
his or its lawful rights and interests, may file an application for administrative reconsideration within 60 days from the day when
he or it knows the specific administrative act, except that the time limit prescribed in laws exceeds 60 days.

    If the time limit prescribed by law is delayed due to force majeure or other special reasons, the time limit
shall be accounted continuously from the day when the obstacle is removed.

    Article 10  Any citizen, legal person or any other organization that files an application for administrative reconsideration in accordance
with this Law is an applicant.

    If a citizen who has the right to apply for administrative reconsideration is deceased, his near relatives
may apply for administrative reconsideration. If a citizen who has the right to apply for administrative reconsideration is incompetent
or with limited capacity for civil conduct, his statutory agent may apply for administrative reconsideration on behalf him. If legal
person, or any other organization, that has the right to apply for administrative reconsideration terminates, the legal person or
any other organization that succeeds to its rights may apply for administrative reconsideration.

    Any other citizen, legal person or any other organization that has an interest in a specific administrative
act, for the administrative reconsideration of which an application has already been filed may, file a request for participation
in the administrative reconsideration as a third party.

    If a citizen, legal person or any other organization refuses to accept a specific administrative act undertaken
by an administrative organ and applies for administrative reconsideration, the said administrative organ that undertook the specific
administrative act is the respondent of the application.

    The applicant and the third party may delegate agent(s) to participate in the administrative reconsideration.

    Article 11  An applicant may apply for administrative reconsideration in written or in oral. If an applicant apply for administrative
reconsideration in oral, the administrative reconsideration organ shall transcribe fundamental facts of the applicant, claims of
the administrative reconsideration, and main facts, grounds and time on which the application for administrative reconsideration
is based.

    Article 12  An applicant, who refuses to accept a specific administrative act of the departments under local people’s governments
at or above the county level may apply for administrative reconsideration to the people’s government at the same level; an applicant
may also apply for administrative reconsideration to the competent authority at the next higher level.

    An applicant, who refuses to accept a specific administrative act of an administrative organ, who carries
out vertical management system, such as Customs, banking, tax collection, foreign exchange control, or by a State security organ,
shall apply for administrative reconsideration to the competent authority at the next higher level.

    Article 13  A citizen, legal person, or any other organization that refuses to accept a specific administrative act of local people’s
governments at various levels shall apply for administrative reconsideration to the local people’s government at the next higher
level.

    An applicant who refuses to accept a specific administrative act of a local people’s government at the county
level, which belongs to a dispatched organ legally established by a people’s government of a province or an autonomous region, shall
apply for administrative reconsideration to the dispatched organ.

    Article 14  A citizen, legal person, or any other organization that refuses to accept a specific administrative act of a department
under the State Council, or the people’s government of a province, an autonomous region, or a municipality directly under the Central
Government, shall apply for administrative reconsideration to the department under the State Council, or the people’s government
of the province, the autonomous region, or the municipality directly under the Central Government that undertook the specific administrative
act. The applicant who refuses to accept the administrative reconsideration decision may bring a suit before a people’s court; or
apply to the State Council for a ruling, and the State Council shall make a final ruling according to the provisions of this Law.

    Article 15  A citizen, legal person, or any other organization, who refuses to accept a specific administrative act of an administrative
organ or an organization, except for the administrative organs prescribed in Articles 12, 13, and 14 of this Law, shall apply for
administrative reconsideration in accordance with the following provisions:

    (1) an applicant, who refuses to accept a specific administrative act of a dispatched organ established by
a local people’s government at or above the county  level, may apply for administrative reconsideration to the people’s
government that established the dispatched organ;

    (2) an applicant, who refuses to accept a specific administrative act of a dispatched organ, established by
departments under governments in accordance with the provisions in laws, regulations or rules, in its own name, shall apply for administrative
reconsideration to the department who established the dispatched organ, or the local people’s government at the same level with the
department;

    (3) an applicant who refuses to accept a specific act of an organization authorized by laws or regulations
shall respectively apply for administrative reconsideration to the local people’s government, the department under a local people’s
government, or the department under the State Council, who is directly in charge of the organization;

    (4) an applicant who refuses to accept a specific act of two or more than two administrative organs in their
common name shall apply for administrative reconsideration to their common administrative organ at a higher level;

    (5) an applicant who refuses to accept a specific act of an abolished administrative organ shall apply for
administrative reconsideration to the administrative organ at the next higher level than the administrative organ that carries on
the exercise of functions and powers of the abolished organ.

    Under one of the circumstances listed in the preceding paragraphs, the applicant may also apply for administrative
reconsideration to the local people’s government, in the locality of the specific administration act, at county level, and the local
people’s government at county level accepting the application shall handle the administrative reconsideration in accordance with
the provisions of Article 18 of this Law.

    Article 16  If a citizen, legal person or any other organization applies for administrative reconsideration, and an administrative
reconsideration organ accepts the application in accordance with laws, or if, in accordance with relevant provisions of laws or regulations,
he or it shall first apply to an administrative reconsideration organ for administrative reconsideration and then bring an administrative
suit before a people’s court, if he or it refuses to accept the reconsideration decision, he or it shall not bring an administrative
suit before a people’s court within the statutory time limit for administrative reconsideration.

    If a citizen, legal person, or any other organization brings a suit before a people’s court, and the people’s
court, in accordance with law, accepts the suit, he or it shall not apply for administrative reconsideration.
Chapter IV  Acceptance of Administrative Reconsideration

    Article 17  An administrative reconsideration organ shall, after receiving an application for administrative reconsideration, examine
the application within five days, and it shall inform the applicant in written if it refuses to accept the application in circumstances
where the application for administrative reconsideration does not comply with the provisions in this Law; it shall inform the applicant
to apply to the relative administrative reconsideration organ if the application, not within the scope of administrative reconsideration
applications acceptable to this organ, comply with the provisions in this Law.

    Except for the provisions in the preceding paragraph, an administrative reconsideration organ shall be considered
to accept the administrative reconsideration application from the day when the office responsible for legal affairs receives the
application.

    Article 18  The people’s government that, according to the provisions prescribed in the second paragraph of Article 15 of this Law,
receives an administrative reconsideration application shall transfer an administrative reconsideration application that, according
to the first paragraph of Article 15 of this Law, shall be accepted by another administrative reconsideration organ to the relative
administrative reconsideration organ and inform the applicant within seven days from the day when it receives the administrative
application. The administrative reconsideration organ that receives the transferred application shall handle it in accordance with
the provisions of Article 17 of this Law.

    Article 19  If, in accordance with relevant laws or regulations, a citizen, legal person or any other organization shall first apply
to an administrative reconsideration organ for administrative reconsideration and then bring a suit before a people’s court, the
administrative reconsideration organ refuses to accept the application or fails to make a decision on the expiration of the time
limit, the applicant may, in accordance with law, bring a suit before a people’s court from the day when he or it receives a written
refusal-of-acceptance decision or within 15 days after the time limit for administrative reconsideration expires.

    Article 20  If a citizen, legal person, or any other organization applies to an administrative reconsideration organ for administrative
reconsideration according to law, and the administrative reconsideration organ refuses to accept the application without due reasons,
administrative organs at the higher level shall order it to accept the application and may also, if necessary, accept the application
directly.

    Article 21  During the time of administrative reconsideration, execution of the specific administrative act shall not be suspended.
Execution of the specific administrative act may be suspended under one of the following circumstances:

    (1) where suspension of execution is deemed necessary by the applied;

    (2) where suspension of execution is deemed necessary by the administrative reconsideration organ;

    (3) where suspension of execution is decided by the administrative reconsideration organ at the request of
the applicant because the administrative reconsideration organ considers the request to be reasonable;  

    (4) where suspensions of execution is required by the provisions of laws.
Chapter V  Decision of Administrative Reconsideration

    Article 22  Administrative reconsideration shall, in principle, examine the application in written. Except for the circumstances where
the applicant makes a require or the office responsible for legal affairs of the administrative reconsideration organ deems it necessary,
the administrative reconsideration organ may investigate facts among the organizations and citizens concerned and listen to the views
of the applicant, the respondent of the application, and the third party.

    Article 23  The office responsible for legal affairs of the administrative reconsideration organ shall send a duplicate of the application
form for administrative reconsideration or a copy of the transcript of the administrative reconsideration application to the respondent
of the application within 7 days from the day of acceptance of the application for administrative reconsideration. The respondent
of the application shall reply in written within 10 days from the day of the receipt of the duplicate of the application form or
the copy of the transcript of acceptance, and provides the evidence, grounds, and other relevant documents, on the basis of which
the specific administrative act has been undertaken.

    The applicant and the third party may consult the reply in written and the evidence, grounds, and other relevant
materials, on the basis of which the specific administrative act has been undertaken, and the administrative reconsideration organ
shall not refuse the requirement except that those involve State secrets, business secrets, or the private affairs of individuals.

    Article 24  In the proceeding of administrative reconsideration, the respondent of the application shall not collect evidence from
the applicant and other organizations or individuals concerned by himself.

    Article 25  Before a decision of administrative reconsideration is made, the applicant who applies for the withdrawal of the application
for administrative reconsideration may withdraw his application after stating grounds, and the administrative reconsideration ceased
in case of the withdrawal of the administrative reconsideration application.

    Article 26  If the applicant applies for reviewing the relevant provisions listed in Article 7 of this Law, along with the application
for administrative reconsideration, and the administrative reconsideration organ has the authority to handle the provisions, the
administrative reconsideration organ shall make a decision in accordance with law within 30 days; if the administrative reconsideration
organ has no authority to handle the provisions, it shall transfer, in accordance with the legal procedures, to the administrative
organ who has the authority to handle them within 7 days. During the period of handling, the specific administrative act shall be
suspended to execute.

    Article 27  In examining a specific administrative act undertaken by the respondent of the application, the administrative reconsideration
organ considers the grounds, on the basis of which the specific administrative act has been undertaken, are illegal, if the administrative
reconsideration organ has the authority to handle them, the organ shall, in accordance with law, handle them within 30 days; if the
administrative reconsideration organ has not authority to handle them, the organ shall transfer the application to the State organ
who has authority to handle them within 7 days according to the legal procedure. During the period of handling, the specific administrative
act shall be suspended to execute.

    Article 28  The office responsible for legal affairs of an administrative reconsideration organ shall examine the specific administrative
act undertaken by the respondent of the application, put forward its opinions and make the decision of administrative reconsideration
after the approval of the responsible persons of the administrative reconsideration organ or the assent after the group discussion,
in accordance with the following provisions:

    (1) if the facts are clearly ascertained by a specific administrative act, the evidence for the act is conclusive,
the application of grounds is correct, the procedure is legal, and the content of the act is proper, the specific administrative
reconsideration act shall be sustained by decision;

    (2) the applied who fails to perform the statutory duties shall be required to perform the duties within a
fixed time by decision;

    (3) if a specific administrative act has been undertaken in one of the following circumstances, the act shall
be annulled, altered, or confirmed as illegal by decision; if the specific administrative act is altered, or confirmed as illegal
by decision, the applied may be ordered to undertake a specific administrative act anew within a fixed time:

        a. ambiguity of essential facts, and inadequacy of evidence;

        b. erroneous application of grounds;

        c. violation of legal procedures;

        d. excess of authority or abuse of powers;

        e. obvious inappropriateness of the specific administrative act.

    (4) if the respondent of the application fails to reply in written, or provide the evidence, grounds, and
other relevant materials for a specific administrative act that has been undertaken, the specific administrative act shall be considered
to have no evidence and grounds and be annulled by decision.

    If an administrative reconsideration organ orders the respondent of the application to undertake a specific
administrative act anew, the respondent of the application must not, based on the same fact and reason, undertake a specific administrative
act identical or essentially identical with the original specific administrative act.

    Article 29  An applicant may put forward the request for administrative compensation along with applying for administrative reconsideration,
and in cases where damages shall be paid in accordance with the relevant provisions of the State Compensation Law, the administrative
reconsideration organ shall make a decision to order the respondent of the application to pay the damages according to law, simultaneous
with a decision to annul or alter the specific administrative act or to confirm the specific administrative act as illegal.

    If in applying for administrative reconsideration, an applicant does not apply for administrative compensation,
an administrative reconsideration organ shall order the respondent of the application to return the property, abolish the measures
of sealing up, seizing, or freezing the property, or compensate the corresponding amount, simultaneous with making a decision to
annul or alter a fine, or to annul a specific administrative act, such as illegally raising funds, confiscating property, levying
property, apportioning charge, and sealing up, seizing, or freezing property.

    Article 30  If a citizen, legal person, or any other organization considers that a specific administrative act of an administrative
organ has infringed upon his or its ownership and right to use, which are acquired according to law, of natural resources, such as
land, mineral resources, rivers, forests, mountains, grasslands, unreclaimed land, beaches, maritime waters, he or it shall first
apply for administrative reconsideration and then bring a suit before a people’s court according to laws if he or it refuses to accept
the administrative reconsideration decision.

    According to the decisions of the State Council or the people’s governments of provinces, autonomous regions
and municipalities directly under the Central Government to prospect and confirm or adjust administrative divisions into districts,
or to requisition lands, an administrative reconsideration decision, which is made by the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government, to confirm ownership and right to use of natural resources, such
as land, mineral resources, rivers, forests, mountains, grasslands, unreclaimed land, beaches, maritime waters, is a final riling.

    Article 31  An administrative reconsideration organ shall make an administrative reconsideration decision within 60 days from the
day of acceptance of application, except for the circumstances where the time of administrative reconsideration set in laws is shorter
than 60 days. If circumstances are complex, and an administrative reconsideration organ fails to make a decision within the prescribed
time limit, the responsible persons of the administrative reconsideration organ may approve an proper extension of the time limit
within 30 days, and the extension of the time limit shall be informed to the applicant and the respondent of the application.

    An administrative reconsideration organ that makes an administrative reconsideration decision shall draw up
a written administrative reconsideration decision on which the organ shall stamp a seal.

    Once thew written administrative reconsideration decision is served, the decision is instantly legally effective.

    Article 32  The respondent of the application shall perform the administrative reconsideration decision. If the respondent of the
application does not perform or delays performing the administrative reconsideration decision without due reasons, the administrative
reconsideration organ or an relevant administrative organ at higher

CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON TAX ISSUES RELATED TO THE IMPLEMENTATION OF THE DECISION OF THE CPC CENTRAL COMMITTEE AND STATE COUNCIL ON STRENGTHENING TECHNICAL INNOVATION, DEVELOPMENT OF HIGH-TECH AND REALIZATION OF ITS INDUSTRIALIZATION

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Tax Issues Related to the Implementation of the Decision
of the CPC Central Committee and State Council on Strengthening Technical Innovation, Development of High-tech and Realization of
its Industrialization

CaiShuiZi [1999] No.273

November 2, 1999

The General Administration Customs, Finance Departments and the State and Local Tax Bureaus of provinces, autonomous regions, municipalitie
directly under the Central Government and municipalities separately listed on state plans, Xinjiang Production and Construction Corps:

In order to implement the spirit of the Decision of the CPC Central Committee and State Council on Strengthening Technical Innovation,
Development of High-tech and Realization of Its Industrialization (ZhongFa [1999] No.14), encourage technical innovation and the
development of the new and high-tech enterprises, the circular concerning tax matters is made as follows:

1.

Value-added Tax

(1)

For general taxpayers that sell computer software products developed and produced on their own, the part of the actual tax burden
exceeding 6 percent shall all be refunded right after its collection after the tax is levied according to the 17 percent statutory
tax rate.

(2)

Small-scale taxpayers of production enterprises which produce and sell computer software products shall pay the value-added tax according
to the 6 percent tax rate; small-scale taxpayers of commercial enterprises which sell computer software products shall pay the value-
added tax according to the 4 percent tax rate, and the tax authorities may issue the special value-added tax receipts on behalf of
them in light of the different tax rates.

(3)

With regard to the software products sold together with the computer network, computer hardware and machinery equipment, its sales
amount shall be separately calculated. If it is not calculated separately or the calculation is unclear, its value-added tax shall
be levied according to the tax rate applicable to the computer network, computer hardware and machinery equipment and the tax shall
not be refunded.

(4)

Computer software products refer to the storage medium which record the computer programs and its related files (including the soft
disk, hard disk, light disk and etc.). Business tax shall be levied on the computer software registered with the State Copyright
Bureau whose copyright and ownership are transferred together at its sale. No value- added tax shall be collected.

2.

Business Tax

(1)

The income derived from technology transfer, technology development and their related technology consultation and technology service
offered by the units or individuals (including enterprises with foreign investment, the research and development centers invested
and set up by foreign businesses, foreign enterprises and foreign nationals) shall be exempt from the business tax.

Technology transfer refers to the act of a transferor to transfer non- gratuitously the ownership or the right of use to its own patent
or non- patented technology to another person.

Technology development refers to the act of a developer, upon entrustment of another person, to research into and develop new technology,
new product, new technique or new material, as well as the system thereof.

Technology consultation refers to the provision of reports concerning a specific technological project on such subjects as feasibility
study, technical projection, special technological investigation, and analysis and evaluation.

Technology consultation and technology services related to the technology transfer and technology development refer to the provision
of technology consultation and technology services by the transferor (or the agent) to help the transferee (or the principal) master
the transferred (or developed upon entrustment) technology according to the provisions of the technological transfer or development
contact. In addition, the payment for the technology consultation and technology services is written on the same invoices with that
for technology transfer ( or development).

(2)

The turnover from technology transfer or development which is exempt from the business tax

a.

Whoever provides existing technology or development results with the drawing sheet or materials as the carrier, its turnover exempt
from the tax shall be all the prices paid by the other party as well as the expenses not included in the prices.

b.

Whoever provides existing technology or development results with the goods as the carrier such as the sample, sample machine or equipment,
its turnover exempt from the tax shall not include the value of the goods. The goods such as the sample, sample machine or equipment
shall be subject to the value-added tax in accordance with relevant provisions. The transferor (or the agent) shall separately indicate
the value of the goods and that of technology transfer or development. If the price of the goods is obviously undervalued, the competent
taxation authorities shall appraise and fix the price for taxation in accordance with the provisions of Article 16 of the Rules
for the Implementation of the Provisional Regulations of the People’s Republic of China on Value- added Tax.

c.

The parent of microbial bacterium spawn and the new animal and plant varieties provided to supplement the biological technology shall
be included in the turnover exempt from the business tax. But the microbial bacterium spawn sold in a large scale shall be subject
to the value- added tax.

(3)

The procedure for examination and approval of the tax exemption

a.

A taxpayer engaged in technology transfer or development who applies for exemption of business tax shall, with the written technological
transfer or development contact at hand, go to the administrative department of science and technology at the provincial level in
the place where the taxpayer is located for identification. Then the taxpayer shall, with the relevant written contact and the opinions
of the competent department of science and technology on examination and verification thereof at hand, report it to the local competent
taxation authorities at the provincial level for examination and approval.

If the transfer of technology by foreign enterprises and foreign individuals from outside our territory to the territory of China
needs to be exempt from business tax, the technological transfer or development contact in writing, the written application of the
taxpayer or its/his agent, and the certificate of examination and verification issued by the administrative department of science
and technology at the provincial level in the place where the transferee is located shall, after examination and verification by
the competent taxation authorities at the provincial level, be submitted to the State Taxation Administration for approval.

b.

Before it is examined and approved by the department of science and technology and the department of taxation, the taxpayer shall
first pay the business tax in accordance with relevant provisions. After it is examined and approved by the department of science
and technology and the department of taxation, the business tax to be paid later shall be set off by the tax already paid. If no
taxable act of business tax takes place within the coming year, or the taxable amount is not enough to set off that of exemption,
the taxpayer may apply to the tax authorities in charge of the collection for refund of the tax.

3.

Income tax

(1)

Where the social forces including the enterprises (with the exception of enterprises with foreign investment and foreign enterprises),
institutions, social organizations, individuals and private businesses provide funds to support non-associated scientific research
institutions and schools of higher education to research into and develop new products, new technology and new technique, the research
and development funds derived therefrom shall be subject to examination, verification and determination by the tax authorities in
charge. The supporting funds may totally be deducted from its current year’s taxable income. (Another version of translation: With
respect to the research and development funds derived from research and development of new products, new technology and new technique
conducted by non-associated scientific research institutions and schools of higher education with the financial support of the social
forces including the enterprises (with the exception of enterprises with foreign investment and foreign enterprises), institutions,
social organizations, individuals and private businesses, the supporting funds may, after examination and determination by the tax
authorities in charge, totally be deducted from its current year’s taxable income.) If its current year’s taxable income is not enough
to set off its supporting funds, it may not be carried forward to set off.

The non-associated scientific research institutions and schools of higher education refer to those scientific research institutions
and schools of higher education not subordinated to or invested by the supporting enterprises and the results of their scientific
research are not only provided to the said enterprises.

The financial support provided by enterprises to their subordinated scientific research institutions and schools of higher education
for the funds of research and development may not set off their taxable income.

Where enterprises and other social forces provide the scientific research institutions and schools of higher education with funds
for research and development and apply for set-off of the taxable income, they shall provide the project plan for research and development,
and the certificate of receipt of funds issued by the scientific research institutions and schools of higher education in addition
to other relevant materials required by the tax authorities. If they are unable to provide the relevant materials, the tax authorities
may not accept.

(2)

The actual pay-roll of a software development enterprise may be deducted from its taxable income.

4.

Income tax for enterprises with foreign investment and foreign enterprises

Where an enterprise with foreign investment or a foreign enterprise provides the scientific research institutions and schools of higher
education with funds for research and development, the funds may totally be deducted from the taxable income of the supporting enterprise
by reference to measures for taxation on donation provided by the Income Tax Law of the People’s Republic of China for Enterprises
with Foreign Investment and Foreign Enterprises.

5.

Tax on import & export

(1)

The equipment for self-use imported by enterprises (including enterprises with foreign investment and foreign enterprises) to make
products listed in the Catalogue of the State New & High-tech Products and the technology, accessories and the spare parts imported
together with the equipment according to the contract shall be exempt from customs duty and the import-linked value-added tax with
the exception of those commodities included in the Catalogue of Imports Not Exempt from Tax for Domestic Investment Projects provided
by the Document GuoFa [1997] No. 37.

(2)

Where enterprises (including enterprises with foreign investment and foreign enterprises) introduce the advanced technologies listed
in the Catalogue of the State New & High-tech Products, the software charges paid to a person outside our territory as provided by
the contract shall be exempt from customs duty and the import-linked value-added tax.

Software charges refer to the patent royalties, trademark fees, and the expenses for technical know-how, computer software, materials
and etc. paid by the taxpayer of imports to the seller outside of our territory for the manufacturing, use, publication, distribution
and broadcasting of the imports’ technology and contents within our territory.

(3)

With respect to the products listed in the Catalogue for Export of China’s New & High-tech Commodities issued by the Ministry of Science
and Technology and the Ministry of Foreign Trade and Economic Cooperation, if the rate of tax refunded for its export is lower than
that of tax levied, the tax levied may, subject to the examination and verification of the State Administration of Taxation, be refunded
according to the rate of tax levied and the current provisions for administration of tax refund for export after the product is exported.

6.

Scientific research institutions’ transformation of mechanism

(1)

The scientific research institutions directly subordinated to the central authorities and those subordinated to the provincial and
prefecture (municipal) authorities shall, after their transformation of mechanism, be exempt from the income tax for enterprises
and the tax on use of urban land within the five years from 1999 to 2003.

The scientific research institutions mentioned in this article do not include those with mechanism already transformed or merged with
enterprises as well as all those engaged in social science research.

(2)

The scientific research institutions which enjoy the above-mentioned preferential tax policies shall report it to the local tax authorities
in charge with the enterprises’ industrial and commercial registration information obtained after their transformation of mechanism
and go through relevant procedures for tax reduction or exemption according to the provisions.

7.

This circular shall enter into force as of October 1, 1999.



 
The Ministry of Finance, the State Administration of Taxation
1999-11-02

 






OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE CATALOGUE OF THE NATIONAL PROTECTED KEY WILD PLANTS (THE FIRST BATCH)

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-09-09 Effective Date  1999-09-09  


Official Reply of the State Council Concerning the Catalogue of the National Protected Key Wild Plants (the First Batch)


State Forestry Administration and the Ministry of Agriculture:    The State Council approves the Catalogue of the National Protected Key
Appendix: The Catalogue of the National Protected Key Wild Plants

(Approved by the Document No.92[1999] of the State Council on August 4,

1999, promulgted by Decree No. 4 of the State Forestry Administration and
the Ministry of Agriculture on Septomber 9, 1999)

State Forestry Administration and the Ministry of Agriculture:    The State Council approves the Catalogue of
the National Protected Key
Wild Plants (the First Batch) and this Catalogue shall be promulgated and
implemented jointly by you.

Appendix: The Catalogue of the National Protected Key Wild Plants
(the First Batch)

         SCIENTIC  NAMENS                  
PROTECTED  CLASSES

                                            
CLASS I   CLASS II

         Pteridophytes

Angiopteridaceae                                        

  Angiopteris sparsisora                                  II    

  Archangiopteris bipinnata                              
II    

  Archangiopteris henryi                                  II    

                                                  
Aspleniaceae                                            

  Phyllitis japonica                                      II    

                                                  
Athyriaceae                                            

  Cystoathyrium chinense                        I

                                                  
Blechnaceae                                            

  Brainea insignis                                        II

                                                  
Christenseniaceae                                      

  Christensenia assamica                                  II

                                                        

                                                  
Cyatheaceae spp.                                          II

                                                        
Dicksoniaceae spp.                                        II

Dryopteridaceae                                        

  Cyrtomium hemionitis                                    II

  Sorolepidium glaciale                        
I

                                                        

Helminthostachyaceae                                    

  Helminthostachys zeylanica                              II

                                                        

Isoetaceae                                              

  Isoetes spp.  *                              
I

                                                  
Parkeriaceae                                            

  Ceratopteris spp.  *                                    II

         SCIENTIC  NAMENS                  
PROTECTED  CLASSES

                                            
CLASS I   CLASS II


Platyceriaceae                                          

  Platycerium wallichii                                  
II

                                                  
Polypodiaceae                                          

   Neocheiropteris palmatopedata                          II

Sinopteridaceae                                        

   Sinopteris grevilleoides                              
II

      Gymnospermae                            

Cephalotaxaceae                                        

   Cephalotaxus lanceolata                                II

   Cephalotaxus oliveri                                  
II

                                                        
Cupressaceae                                            

  Calocedrus macrolepis                                  
II

  Chamaecyparis formosensis                              
II

  Cupressus chengiana                                    
II

  Cupressus gigantea                            I

  Fokienia hodginsii                                      II

  Thuja koraiensis                                        II

                                                  
Cycadaceae                                              

  Cycas spp.                                    I

                                                  
Ginkgoaceae                                    
I

  Ginkgo biloba                                
I

                                                  
Pinaceae                                                

   Abies beshanzuensis                          I

   Abies chensiensis                                      II

   Abies fanjingshanensis                      
I

   Abies yuanbaoshanensis                      
I

   Abies ziyuanensis                            I

   Cathaya argyrophylla                        
I

   Keteleeria davidiana var. formosana                    II

   Keteleeria hainanensis                                
II

         SCIENTIC  NAMENS                  
PROTECTED  CLASSES

                                            
CLASS I   CLASS II

Keteleeria pubescens                                    
II
Larix chinensis                                          II
Larix mastersiana                                        II
Picea brachytyla var. complanata                        
II
Picea neoveitchii                                        II
Pinus densiflora var. dabeshanensis                      II
Pinus fenzeliana var. dabeshanensis                      II
Pinus koraiensis                                        
II
Pinus kwangtungensis                                    
II
Pinus squamata                                
I
Pinussylvestris var. sylvestriformis            I
Pinus wangii                                            
II
Pseudolarix amabilis                                    
II
Pseudotsuga spp.                                        
II

                                                  
Taxaceae                                              

  Amentotaxus formosana                        
I

  Amentotaxus yunnanensis                      
I

  Pseudotaxus chienii                                    
II

  Taxus spp.                                    I

  Torreya spp.                                            II

                                                  
Taxodiaceae                                            

   Glyptostrobus pensilis                      
I

   Metasequoia glyptostroboides                
I

   Taiwania cryptomerioides                              
II

      Angiospermae                    


Acanthochlamydaceae                                    

   Acanthochlamys bracteata                              
II

                                                  
Aceraceae                                              

   Acer catalpifolium                                    
II

   Acer yangjuechi                                        II

         SCIENTIC  NAMENS                  
PROTECTED  CLASSES

                                            
CLASS I   CLASS II

   Dipteronia dyerana                                    

                                                    
Alismataceae                                              

  Ranalisma rostratum   *                      
I

  Sagittaria natans     *                                
II

                                                    
Apocynaceae                                            

  Parepigynum funingense                                  II

  Rauvolfia serpentina                                    II

                                                    

1...262728Page 27 of 28

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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