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2006

REPLY OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON HOW TO DEAL WITH THE SITUATION THAT AN ENTERPRISE DISCLAIMS ITS BUSINESS LICENSE AFTER ITS APPLICATION FOR REGISTRATION IS VERIFIED AND APPROVED

The State Administration for Industry and Commerce

Reply of the State Administration for Industry and Commerce on How to Deal with the Situation that an Enterprise Disclaims its Business
License After its Application for Registration is Verified and Approved

GongShangQiZi [2000] No.289

December 4, 2000

Hubei Administration for Industry and Commerce:

We have studied your Request for Instructions on How to Deal with the Situation that an Enterprise Disclaims its Business License
After its Application for Registration is Verified and Approved (EGongShangZhuZi [2000] No.154) and now reply as follows:

According to the Regulations for Controlling the Registration of Enterprises as Legal Persons and the Regulations on Company Registration
Administration, a business entity is only legitimized after the competent registration authority approves its application and issues
the business license. Therefore those that fail to claim their business license for corporate entities within 6 months after the
approval of their applications for registration may be revoked of their registration and deprived of further issuance of the business
license for corporate entities by the competent registration authority. Businesses operating without claiming their business license
for corporate entities after the approval of their applications for registration should be duly punished for operating without a
business license.



 
The State Administration for Industry and Commerce
2000-12-04

 






CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON REGULATING THE AUTHORIZATION FOR EXAMINING AND APPROVING EXTERNAL GUARANTEE PERFORMANCE

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Regulating the Authorization for Examining and Approving External Guarantee
Performance

Huifa [2000] No.84

June 28, 2000

Each branch of State Administration of Foreign Exchange (SAFE), Beijing, Chongqing Foreign Exchange Administration Department, the
branch of Dalian, Qingdao, Ningbo, Xiamen and Shenzhen SAFE:

In order to normalize the authorization for examining and approving external guarantee performance, we hereby inform you the following
principles to comply with:

1.

External guarantee performance shall be approved according to the principle of domiciled jurisdiction. The domiciled SAFE branch is
responsible for approving the performance of legal external guarantee under its jurisdiction according to relevant regulations. The
approval document shall be transmitted to SAFE headquarter for record.

2.

Performance of substantive illegal external guarantee (the external guarantee that had not been approved by SAFE before contract signed)
shall be reported to SAFE headquarter for approval after be examined by domiciled SAFE branch.

3.

Performance of procedural illegal external guarantee (the external guarantee that had been approved by SAFE before the contract signed
or the guarantee need not be approved, but has not been registered with the SAFE according to regulations) shall be approved by domiciled
SAFE branch after corresponding penalty been given to the guarantor. The result of penalty and the approval document shall be transmitted
to SAFE headquarter for record.



 
The State Administration of Foreign Exchange
2000-06-28

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING NON-PURSUANCE OF THE CONSTRUCTION FEES OF CULTURAL UNDERTAKINGS OF THE YEAR 1997 WHICH SHALL HAVE BEEN PAID BY ENTERPRISES WITH FOREIGN INVESTMENT OR FOREIGN ENTERPRISES

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning Non-pursuance of the Construction Fees of Cultural Undertakings of the
Year 1997 which shall have been Paid by Enterprises with Foreign Investment or Foreign Enterprises

GuoShuiHan [2000] No.647

August 21, 2000

According to the opinion of the State Administration of Taxation,

issues concerning levying construction fees of cultural undertakings on enterprises with foreign investment and foreign enterprises
may be handled in the spirit of the Letter of the Ministry of Finance and the State Administration of Taxation on Non-Pursuance of
the Construction Fees of Cultural Undertakings of the Year 1997 which should have been paid by Enterprises with Foreign Investment
and Foreign Enterprises (CaiShuiZi [1998] No.156). The construction fees of cultural undertakings of Enterprises with Foreign Investment
and Foreign Enterprises for the year 1997 shall not be levied any more.



 
The State Administration of Taxation
2000-08-21

 






CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES LAW

Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures

(Adopted at the First Session of the Seventh National People’s Congress on April 13, 1988 and promulgated by Order
No.4 of the President of the People’s Republic of China on April 13, 1988; amended according to the Decision on Revision of the Law
of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures adopted at the 18th Meeting of the Standing Committee
of the Ninth National People’s Congress on October 31, 2000) 

Article 1 This Law is formulated to expand economic cooperation and technological exchange with foreign countries and to promote
the joint establishment, on the principles of equality and mutual benefit, by foreign enterprises and other economic organizations
or individuals (hereinafter referred to as the foreign party) and Chinese enterprises or other economic organizations (hereinafter
referred to as the Chinese party) of Chinese-foreign contractual joint ventures ( hereinafter referred to as contractual joint ventures
) within the territory of the People’s Republic of China. 

Article 2  In establishing a contractual joint venture, the Chinese and foreign parties shall, in accordance with the provisions
of this Law, prescribe in their contractual joint venture contract such matters as the investment or conditions for cooperation,
the distribution of earnings or products, the sharing of risks and losses, the manners of operation and management and the ownership
of the property at the time of the termination of the contractual joint venture. 

A contractual joint venture which meets the conditions for being considered a legal person under Chinese law shall acquire the status
of a Chinese legal person in accordance with law. 

Article 3  The State shall, according to law, protect the lawful rights and interests of the contractual joint ventures and
of the Chinese and foreign parties. 

A contractual joint venture shall abide by Chinese laws and regulations and may not injure the public interests of China. 

The relevant State authority shall exercise supervision over the contractual joint ventures according to law. 

Article 4  The State shall encourage the establishment of productive contractual joint ventures that are export-oriented or
technologically advanced. 

Article 5  For the purpose of applying for the establishment of a contractual joint venture, such documents as the agreement,
the contract and the articles of association signed by the Chinese and foreign parties shall be submitted for examination and approval
to the department in charge of foreign economic relations and trade under the State Council or to the department or local government
authorized by the State Council (hereinafter referred to as the examination and approval authority). The examination and approval
authority shall, within 45 days from the date of receiving the application, decide whether or not to grant approval. 

Article 6 When the application for the establishment of a contractual joint venture is approved, the parties shall, within 30 days
from the date of receiving the certificate of approval, apply to the administrative department for industry and commerce for registration
in order to obtain a business license. The date of issue of the business license of contractual joint venture shall be the date of
its establishment. 

A contractual joint venture shall, within 30 days of its establishment, carry out tax registration with the tax authorities. 

Article 7  If the Chinese and foreign parties, during the period of operation of their contractual joint venture, agree through
consultation to make major modifications to the contractual joint venture contract, they shall report to the examination and approval
authority for approval; if the modifications include items involving statutory industry and commerce registration or tax registration,
they shall register the modifications with the administrative department for industry and commerce and with the tax authorities. 

Article 8  The investment or conditions for cooperation contributed by the Chinese and foreign parties may be provided in cash
or in kind, or may include the right to the use of land, industrial property rights, non-patent technology or other property rights. 

Article 9  The Chinese and foreign parties shall, in accordance with the provisions of the laws and regulations and the agreements
in the contractual joint venture contract, duly fulfil their obligations of contributing full investment and providing the conditions
for cooperation. In case of failure to do so within the prescribed time, the administrative department for industry and commerce
shall set another time limit for the fulfillment of such obligations; if such obligations are still not fulfilled by the new time
limit, the matter shall be handled by the examination and approval authority and the administrative department for industry and commerce
according to relevant State regulations. 

The investments or conditions for cooperation provided by the Chinese and foreign parties shall be verified by an accountant registered
in China or the relevant authorities, who shall provide a certificate after verification. 

Article 10  If a Chinese or foreign party wishes to make an assignment of all or part of its rights and obligations prescribed
in the contractual joint venture contract, it shall be subject to consent of the other party or parties and report to the examination
and approval authority for approval. 

Article 11  A contractual joint venture shall conduct its operational and managerial activities in accordance with the approved
contract  and articles of association for the contractual joint venture. The right of a contractual joint venture to make its
own operational and managerial decisions shall not be free from any interference. 

Article 12   A contractual joint venture shall establish a board of directors or a joint managerial institution which shall,
according to the contract or the articles of association for the contractual joint venture, decide on the major issues concerning
the venture. If the Chinese or foreign party assumes the chairmanship of the board of directors or the directorship of the joint
managerial institution, the other party shall assume the vice-chairmanship of the board or the deputy directorship of the joint managerial
institution. The board of directors or the joint managerial institution may decide on the appointment or employment of a general
manager, who shall take charge of the daily operation and management of the contractual joint venture. The general manager shall
be accountable to the board of directors or the joint managerial institution. 

If a contractual joint venture, after its establishment, chooses to entrust a third party with its operation and management, it shall
be subject to the unanimous consent of the board of directors or the joint managerial institution, report to the examination and
approval authority for approval, and register the change with the administrative department for industry and commerce. 

Article 13  The employment, dismissal, remuneration, welfare benefits, occupational protection, labour insurance, etc. of the
staff members and workers of a contractual joint venture shall be specified in contracts concluded in accordance with law. 

Article 14   The staff and workers of a contractual joint venture shall, in accordance with law, establish their trade
union organization to carry out trade union activities and protect their lawful rights and interests. 

A contractual joint venture shall provide the necessary conditions for the venture’s trade union to carry out its activities. 

Article 15   A contractual joint venture shall establish its account books within the territory of China, file its accounting
statements according to relevant regulations and accept supervision by the financial and tax authorities. 

If a contractual joint venture, in violation of the provisions prescribed in the preceding paragraph, does not establish its account
books within the territory of China, the financial and tax authorities may impose a fine on it, and the administrative department
for industry and commerce may order it to suspend its business operation or may revoke its business license. 

Article 16  A contractual joint venture shall, by presenting its business license, open a foreign exchange account with a bank
or any other financial institution which is permitted by the exchange control authorities of the State to conduct transactions in
foreign exchange. 

A contractual joint venture shall handle its foreign exchange transactions in accordance with the State regulations on foreign exchange
control. 

Article 17   A contractual joint venture may obtain loans from financial institutions within the territory of China and
may also obtain loans outside the territory of China. 

Loans to be used by the Chinese and foreign parties as investment or conditions for cooperation, and their guarantees shall be provided
by each party on its own. 

Article 18  The various kinds of insurance coverage of a contractual joint venture shall be furnished by insurance institutions
within the territory of China. 

Article 19 A contractual joint venture may, within its scope of operation approved, import materials it needs and export products
it produces. A contractual joint venture may, in adherence to the principles of fairness and rationality, purchase on both the Chinese
and the world market the raw and semi-processed materials, fuels and other materials it needs within the approved scope of operation. 

Article 20  A contractual joint venture shall, in accordance with State regulations on tax, pay taxes and may enjoy the preferential
treatment of tax reduction or exemption. 

Article 21  The Chinese and foreign parties shall share earnings or products, undertake risks and losses in accordance with
the agreements prescribed in the  contractual joint venture contract. 

If, upon the expiration of the period of a venture’s operation, all the fixed assets of the contractual joint venture, as agreed
upon by the Chinese and foreign parties in the contractual joint venture contract, are to belong to the Chinese party, the Chinese
and foreign parties may prescribe in the contractual joint venture contract the ways for the foreign party to recover its investment
ahead of time during the period of the venture’s operation. If the foreign party, as agreed upon in the contractual joint venture
contract, is to recover its investment prior to the payment of income tax, it shall apply to the financial and tax authorities, which
shall examine and approve the application in accordance with State regulations concerning taxes. 

If, according to the provisions of the preceding paragraph, the foreign party is to recover its investment ahead of time during the
period of the venture’s operation, the Chinese and foreign parties shall, as stipulated by the relevant laws and agreed in the contractual
joint venture contract, be liable for the debts of the venture. 

Article 22  After the foreign party has fulfilled its obligations under the law and the contractual joint venture contract,
the profits it receives as its share, its other legitimate income and the funds it receives as its share upon the termination of
the venture, may be remitted abroad according to law. 

The wages, salaries or other legitimate income earned by the foreign staff and workers of contractual joint ventures, after the payment
of the individual income tax according to law, may be remitted abroad. 

Article 23   Upon the expiration or termination in advance of the term of a contractual joint venture, its assets, claims
and debts shall be liquidated according to legal procedures. The Chinese and foreign parties shall, in accordance with the agreement
specified in the contractual joint venture contract, determine the ownership of the venture’s property. 

A contractual joint venture shall, upon the expiration or termination in advance of its term, cancel its registration with the administrative
department for industry and commerce and the tax authorities. 

Article 24   The period of operation of a contractual joint venture shall be determined through consultation by the Chinese
and foreign parties and shall be clearly specified in the contractual joint venture contract. If the Chinese and foreign parties
agree to extend the period of operation, they shall apply to the examination and approval authority 180 days prior to the expiration
of the venture’s term. The examination and approval authority shall decide whether or not to grant approval within 30 days from the
date of receiving the application. 

Article 25  Any dispute between the Chinese and foreign parties arising from the execution of the contract or the articles of
association for a contractual joint venture shall be settled through consultation or mediation. In case of a dispute which the Chinese
or foreign parties is unwilling to settle through consultation or mediation, or of a dispute which they have failed to settle through
consultation or mediation, the Chinese and foreign parties may submit it to a Chinese arbitration agency or any other arbitration
agency for arbitration in accordance with the arbitration clause in the contractual joint venture contract or a written agreement
on arbitration concluded afterwards. 

The Chinese or foreign party may bring a suit in a Chinese court, if no arbitration clause is provided in the contractual joint venture
contract and if no written agreement is concluded afterwards. 

Article 26  The detailed rules for the implementation of this Law shall be formulated by the department in charge of foreign
economic relations and trade under the State Council and reported to the State Council for approval before implementation. 

Article 27   This Law shall go into effect as of the date of its promulgation.

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






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE LEVY OF THE BUSINESS TAX ON THE TRANSFER OF THE INTANGIBLE ASSETS CONDUCTED BY THE FOREIGN ENTERPRISES

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning the Levy of the Business Tax on the Transfer of the Intangible Assets
Conducted by the Foreign Enterprises

GuoShuiFa [2000] No.70

April 24, 2000

According to the stipulations in the Circular of the State Administration of Taxation Concerning the Levy of the Business Tax on the
Income arising from the Transfer of Intangible Assets into Chinese Territory conducted by Foreign Enterprises (No.4 in 1998 issued
by the State Administration of Taxation) and the Written Reply of the State Administration of Taxation Concerning the Levy of the
Business Tax on the Transfer of Intangible Assets to Our Country conducted by Foreign Enterprises (No.797 in 1998 replied in letter
by the State Administration of Taxation), the income arising from the transfer of intangible assets into Chinese territory conducted
by foreign enterprises should be levied of the business tax following January 1, 1994. But some regions did not know whether income,
arising from contracts for the transfer of intangible assets signed before the end of 1993 between foreign enterprises and units
located in Chinese territory but gained after 1994, should be levied of the business tax. After study now make the following stipulations:

Income, arising from contracts for the transfer of intangible assets signed before the end of 1993 between the foreign enterprises
and units located in Chinese territory, should not be levied of the business tax whenever it would be earned by foreign enterprises.



 
The State Administration of Taxation
2000-04-24

 






ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF CUSTOMS AND THE STATE ADMINISTRATION FOR ENTER-EXIT INSPECTION AND QUARANTINE CONCERNING THE ADJUSTMENT OF THE CATALOGUE OF ENTER-EXIT GOODS THAT SHALL BE INSPECTED AND QUARANTINED BY ENTER-EXIT INSPECTION AND QUARANTINE AUTHORITIES

The General Administration of Customs, the State Enter-exit Supervision and Quarantine

Announcement of the General Administration of Customs and the State Administration for Enter-exit Inspection and Quarantine Concerning
the Adjustment of the Catalogue of Enter-Exit Goods that shall be Inspected and Quarantined by Enter-exit Inspection and Quarantine
Authorities

[2000] No.1

January 11, 2000

According to the Construction Project of Enter-exit Inspection and Quarantine Authorities Around the Country approved by the State
Council, the former enter-exit hygienic quarantine, animal and plant quarantine authorities and the enter-exit goods quarantine authorities
shall be merged to constitute the enter-exit inspection and quarantine authorities. In order to adapt to the needs of institution
reform, put into effect the management model of “report for quarantine once, sampling once, inspection and quarantine once, hygienic
alleviation of harm once, charge once, visa issuing once “, to further simplify the procedure, be one window towards outside and
facilitate enter and exit, the Table of Types of Enter-exit Goods for Quarantine, the Table for Comparison between Catalogue of Enter-exit
Animal and Plant for Quarantine and HS Catalogue and the Table for Comparison between Catalogue of Imported Foods for Hygienic Inspection
and HS Catalogue (hereafter referred to as “Three Tables”) now are merged and adjusted to be Catalogue of Enter-exit Goods that the
Enter-exit Inspection and Quarantine Authorities shall Carry Out Inspection and Quarantine (hereinafter referred to as the Catalogue
of Goods for Inspection and Quarantine). Three “Three Tables” involved 5,249 coded goods while the catalogue of goods for Inspection
and Quarantine thereby adjusted involve 4113 coded goods. The Catalogue of Goods for Inspection and Quarantine took effect as of
the date February 1, 2000, the Circular Concerning Printing and Distributing the Table of Types of Enter-exit Goods for Quarantine,
the Table for Comparison between Catalogue of Enter-exit Animal and Plant for Quarantine and HS Catalogue and the Table for Comparison
between Catalogue of Imported Foods for Hygienic Inspection and HS Catalogue (State quarantine law cooperation [1994] No.4) of the
State Enter-exit Inspection and Quarantine and the General Administration of Customs was thereby abolished. According to provisions
in the Law of the People’s Republic of China on Inspection on Enter-exit Goods, the Law of the People’s Republic of China on Enter-exit
Animal and Plant Quarantine, the Law of the People’s Republic of China on Food Hygiene, the Customs Law of the People’s Republic
of China, any enter-exit goods that has been listed in the Catalogue of Goods for Inspection and Quarantine shall be quarantined
by enter-exit inspection and quarantine authorities and the customs, by the Customs Clearing Bill of Entering Goods or the Customs
Clearing Bill of Exiting Goods, carry out examination and let go through.



 
The General Administration of Customs, the State Enter-exit Supervision and Quarantine
2000-01-11

 






CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON SUBMISSION OF IMPORT AND EXPORT PLANS FOR ENTERPRISES WITH FOREIGN INVESTMENT IN 2001

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Submission of Import and Export Plans for Enterprises with Foreign
Investment in 2001

WaiJingMaoZiTongJinHanZi [2000] No.768

October 25, 2000

Ministries and commissions of the State Council,commissions (departments, bureaus) of Foreign Trade and Economic Cooperation of various
provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State
plan, China Offshore Petroleum Corporation and China Oil and Gas Group Corporation:

In order to ensure the continuity and stability of the production in foreign-invested enterprises (FIEs), the following notice is
issued concerning the submission of import and export plans for FIEs in 2001:

I.

Scope of the plans

(1)

import plans for goods under general quota and for goods the imported volume of which should be registered (including key industrial
or agricultural goods, asbestos, Cymag, tobacco, tows and veneer boards) to be imported by FIEs for manufacture of products for sale
on domestic market;

(2)

import plan for electric and mechanic products imported by FIEs for investment or self use;

(3)

Export plan of FIEs for products under export licenses;

(4)

import and export plan of FIEs for poisonous chemical products.

II.

Guideline and requirement for the plan

The authorities of foreign trade and economic co-operation shall formulate a complete plan according to the business scopes, production
scales and the ratio between domestic sale and export in the contracts. They should make preliminary examination over the import
and export application of FIEs by making reference to the implementation of the plan in the year 2000. The Plan should be submitted
through “the Network of Regulation System for Import and Export of FIEs together with a formal explanatory document on the data.
The data in the complete plan should be backed by the detailed data of each FIE; otherwise it will be considered invalid.

(1)

For import of key industrial products by FIEs for manufacture of products for sale on the domestic market, chemical fertilizers should
be noted clearly whether it is nitrogenous, phosphate, potash or compound fertilizer; processed oil should be noted whether it is
fuel oil, kerosene or naphtha.

(2)

Export plan

a.

Foreign-invested enterprises which are included in the annual export plan must be FIEs whose export scale has been approved by MOFTEC
or FIEs that had been established before quota or license control and whose export scale has been examined by MOFTEC.

b.

Products exported by FIEs must be self-manufactured products.

c.

Products of which the export quota are subject to the regime of public bidding, payment of fees or involuntary quota shall not be
included in this plan; FIEs exporting such products shall proceed the relevant procedures for export.

(3)

Export and import plan for poisonous chemical products

a.

The import plans of poisonous chemical products in 2001 should be formulated according to the import of such products by FIEs from
1997 to 2000 in the region and to the application of the FIEs. The examination over such applications should be in accordance with
the Principles and Procedures for the Approval of Import of poisonous chemical products by FIEs issued by MOFTEC in 1997 ( [1997]
Waijingmaozi sanhanzi No. 197); and a complete plan should be formulated based on the data collected. The written document, statistic
plans and the information provided by FIEs should be submitted to the Foreign Investment Department of MOFTEC at the meeting on the
regulation of import and export of FIEs. After examination of the submitted documents and statistics, the Foreign Investment Department
will issue the Approval Forms for Import of Poisonous Chemical Products and import licenses can be obtained by the local authorities
of foreign trade or foreign investment.

b.

Export of poisonous chemical products shall continue to follow the Principles and Procedures for the Approval of Import of poisonous
chemical products by FIEs to go through the necessary procedures.

III.

Requirement for the submission of the plans

The Foreign Trade and Economic Co-operation authorities should submit their plans through the network system to the Foreign Investment
Department of MOFTEC before Nov. 20. Their written documents may not be supplemented with the statistics; the statistics transmitted
through the network will be considered final. If their plans are not submitted before this date, they plans will be not approved
by MOFTEC.

For FIEs whose Chinese partner’s competent authority is a Ministry or a Commission under the State Council or China Offshore Petroleum
Corporation or China Oil and Gas Group Corporation, their Applications for import and export plans should be submitted by the Ministry,
Commission or Corporation to the Department of Foreign Investment of MOFTEC before November 20.

IV.

Date and place for the meeting on the regulation of import and export of FIEs shall be notified later.



 
The Ministry of Foreign Trade and Economic Cooperation
2000-10-25

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE SETTLEMENT FOR THE TAXPAYERS OBTAINING THE FALSE SPECIAL INVOICE OF VALUE-ADDED TAX WITHOUT ACKNOWLEDGEMENT

The State Administration of Taxation

Circular of the State Administration of Taxation on the Settlement for the Taxpayers Obtaining the False Special Invoice of Value-added
Tax without Acknowledgement

GuoShuiFa [2000] No.187

November 16, 2000

It is reported recently that how to deal with the buyers receiving the false added-values tax special invoice drawn by the sellers
without acknowledgement of buyers (drawees) is not clear. After study, it is now clarified as follows:

The buyers should not be handled in name of tax-evading and defraud of export tax rebate if the real transaction occurs and the sellers
use the special invoice of the province (autonomous region and municipality separately listed on the State plan) where he stays,
and on which gives clear indication of the name and seal of sellers, goods quantity, sum and tax sum ex fact and there is no evidence
that shows the acknowledgement of the buyers that the special invoice is obtained illegally. But according to the law, the buyers
should not be granted receipts tax or exports or tax-rebate, the receipts credit and export tax rebate should be recovered.

If the buyers can obtain the legal and valid special invoice drawn by the anti-counterfeit taxation control system from the sellers
or the one drawn by hand with the certificate of the local tax authority of the sellers or with the indication that the investigation
for the false invoice drawn by the sellers is undergoing, the buyers should be granted receipts credit or exports tax rebate by the
local tax authority of the buyers.

If there is evidence that shows the buyers know the invoice is obtained illegally before receipts credit or exports tax rebate, the
buyers should be handled according to Circular of the State Administration of Taxation on the Handling of Drawing the False Added-value
Tax Special Invoice by the Taxpayers (GuoShuiFa [1997] No.134) and Supplementary Circular of the State Administration of Taxation
of Circular on the Handling of Drawing the False Added-value Tax Special Invoice by the Taxpayers (GuoShuiFa [2000] No.182).

The Circular shall enter into force as of the date of issuance.



 
The State Administration of Taxation
2000-11-16

 






CIRCULAR OF THE STATE ECONOMIC AND TRADE COMMISSION, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE GENERAL ADMINISTRATION OF CUSTOMS ON PARTIALLY ALTERING COMMODITY LISTS OF IMPORT PRODUCT OF PROCESSING TRADE IN RESTRICTION

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

Circular of the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation and the General Administration
of Customs on Partially Altering Commodity Lists of Import Product of Processing Trade in Restriction

GuoJingMaoMaoYi [2000] No.570

June 16, 2000

The Economic and Trade Commission and Foreign Trade Committee of the provinces, autonomous regions, municipalities directly under
the Central Government, municipalities separately listed on the State plan and production and construction crops of Xinjiang, Guangdong
branch of the General Administration of Customs, customs directly under the General Administration of Customs and relevant departments
of State Council:

With a view to implementing the Circular of the General Office of the State Council on Transmitting the Opinions of State Economic
and Trade Commission and Other Departments on Further Perfecting the Deposit Machine Account System of Processing Trade Bank (GuoBanFa
[1999] No.35), the Circular on Confirming Commodity Lists of the First Batch of Import Product of Processing Trade in Prohibition
and in Restriction (GuoJingMaoMaoYi [1999] No.490, hereinafter referred as Commodity Lists) was jointly promulgated by State Economic
and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation and the General Administration of Customs. Now some
alterations of steel products in the Commodity Lists have to be made. The steel products with numbers of the heading 7210300 and
72122000 shall be no longer listed in restrictive commodity list from July 1, 2000.



 
The State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation, the General Administration
of Customs
2000-06-16

 






REGULATIONS ON SUPERVISION AND MANAGEMENT TO MEDICAL INSTRUMENTS

Category  PUBLIC HEALTH AND MEDICINE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  2000-01-04 Effective Date  2000-04-01  


Regulations on Supervision and Management to Medical Instruments

Chapter I General Principles
Chapter II  Management of Medical Instruments
Chapter III  Management to the production, business and Use of medical Instruments
Chapter IV  Supervision of Medical Instruments
Chapter V  Penalty Provisions
Chapter VI  Supplementary Provisions

(Adopted at the 24th Meeting of the State Council on December 28, 1999. promulgated by Decree No. 276 the State Council of the People’s
Republic of China on January 4, 2000, and come into force as of the date April 1, 2000)

Chapter I General Principles

    Article 1  These Regulations are formulated with a view to strengthening the supervision and management of medical instruments, guaranteeing
the safety and effectiveness of medical instruments, and protecting the human physical health and safety of life.

    Article 2  Any unit or individual engaged in the research, manufacture, business operation, use, supervision and management of medical
instruments within the People’s Republic of China shall comply with these Regulations.

    Article 3  The medical instruments in these Regulations mean instruments, equipment, apparatus, material and other articles, separately
or cooperatively, applied to human body, including the required software; the targeted functions by applying them to the surface
or inside of human body are not obtained by means of pharmacology, immunology or metabolism, but it’s likely that these means participate
and contribute to certain auxiliary functions; the use of them is intended to achieve such anticipative goals as follows:
(a) Prevention, diagnosis, treatment, custody and relief to disease;
(b) Diagnosis, treatment, custody, relief and compensation to injury or disability;
(c) Research, replacement and adjustment to dissection or physiological process;
(d) Gestation control.

    Article 4  The medical supervision and management authority of the State Council is responsible for the national supervision and
management of medical instruments.

    The medical supervision and management authorities under local people’s governments at or above county is
responsible for the supervision and management of medical instruments within their administrative regions respectively.

    The medical supervision and management authority of the State Council shall coordinate with the management
department of economic complex under the State Council in carrying out and implementing state policies in medical instruments industry.

    Article 5  The state adopts separate management for medical instruments.

    The first category means those medical instruments whose safety and effectiveness may be adequately ensured
by ordinary management.
The second category means those medical instruments whose safety and effectiveness shall be controlled.

    The third category means to the medical instruments whose safety and effectiveness must be strictly controlled,
which are used to be planted into human body, and be used to support and keep life and with potential danger to human body.

    The categorized catalog of medical instruments shall be formulated, adjusted and publicized by the medical
supervision and management authority under the State Council, in accordance with the rules on medical instruments categorization,
in consultation with the health administrative authority of the State Council.

    Article 6 The medical instruments with the aim of providing concrete metrological values by manufacture and use shall conform with the provisions
of Metrological Law. The detailed product catalog shall be formulated and publicized by the medical supervision and management authority
under the State Council in conjunction with the meteorological administrative authority of the State Council.
Chapter II  Management of Medical Instruments

    Article 7  The state encourages to develop new medical instruments. The new medical instruments mean brand-new varieties that haven’t
appeared on domestic market or whose safety, effectiveness and product mechanism haven’t been recognized at home.

    The clinical tryout of new medical instruments belonging to the second or third category shall be conducted
after being approved in accordance with regulations of the medical supervision and management authority of the State Council.

    The new medical instruments of which clinical tryout have been completed and having passed the expert appraisal
sponsored by the medical supervision and management authority of the State Council shall be approved and issued the new product certificates
by the medical supervision and management authority of the State Council.

    Article 8  The state adopts registration system of product manufacture of medical instruments.

    The production of first category medical instruments shall be examined and approved by the medical supervision
and management authority of municipal people’s government with districts, which then issues the registration certificates of product
manufacture.

    The production of second category medical instruments shall be examined and approved by the medical supervision
and management authority of the people’s governments in provinces, autonomous regions or municipalities directly under central authority,
which then issue the registrations certificates of product manufacture.

    The production of third category medical instruments shall be examined and approved by the medical supervision
and management authority of the State Council, which then issues the registration certificate of product manufacture.

    For the manufacture of second or third category medical instruments, clinical verification shall be passed.

    Article 9  The medical supervision and management authorities of the people’s governments in provinces, autonomous regions or municipalities
directly under central authority are responsible for the examination and approval of the clinical tryout or clinical verification
of the second category medical instruments within its own administrative domain. The medical supervision and management authority
of the State Council is responsible for the examination and approval of the clinical tryout or clinical verification of the third
category medical instruments. The clinical tryout or clinical verification shall be conducted at medical institution specified by
the medical supervision and management authorities of the people’s governments at or above provinces level. The medical institution
conducting clinical tryout or clinical verification shall conform to the regulations of the medical supervision and management authority
of the State Council.

    The qualification of the medical institution to conduct clinical tryout or clinical verification shall be
determined by the medical supervision and management authority of the State Council in consultation with the health administrative
authority of the State Council.

    Article 10  The medical institution may develop medical instruments according to its own clinical need, and use the same under direction
of practicing doctor within such institution.

    The second category medical instruments developed by medical institution shall be reported to the medical
supervision and management authority of the people’s governments at or above provinces level for examination and approval; The third
category medical instruments developed by medical institution shall be reported to the medical supervision and management authority
of the State Council for examination and approval.

    Article 11  For the first imported medical instruments, the importing unit shall submit the instructions, quality standards, inspection
methods and other relevant materials, the sample, and the documents evidencing the exporting country’s approval of the manufacture
and sales, of such medical instruments, and only after having been examined and approved and registered by the medical supervision
and management authority of the State Council and obtaining the registration certificate of importation may such unit apply to the
customs for fulfilling import formalities.

    Article 12  The ones declaring registrated medical instruments shall present, the technical specifications, inspection report and
other relevant in accordance with the regulations of the medical supervision and management authority under the State Council.

    The medical supervision and management authority under a municipal people’s government with districts shall
decide whether to grant a registration within 30 working days as from the date of accepting the application; if registration isn’t
granted, written reasons shall be given.

    The medical supervision and management authority under the people’s governments in provinces, autonomous regions
or municipalities directly under central authority shall decide whether to grant a registration within 60 working days as from the
date of accepting the application; if registration isn’t granted, written reasons shall be given.

    The medical supervision and management authority under the State Council shall decide whether to grant a registration
within 90 working days as from the date of accepting the application; if registration isn’t granted, written reasons shall be given.

    Article 13  In the event of any change occurs to the contents of the product registration certificate of medical instruments, the
unit holding such certificate shall apply for modification procedures or re-registration within 30 days as from the date of occurrence
of such change.

    Article 14  The validity period of the product registration certificate of medical instruments is 4 years. The unit holding such certificate
shall apply re-registration within the 6 months prior to the expiration of the product registration certificate.

    If the cessation of production continues for over 2 years, the registration certificate of product manufacture
shall lose effect automatically.

    Article 15  The manufacture of medical instruments shall conform to the state standards of medical instruments; in the absence of
state standards, they shall conform to industrial standards of medical instruments.

    The state standards of medical instruments shall be formulated by the standardization administrative authority
under the State Council in conjunction with the medical supervision and management authority of the State Council. The industrial
standards of medical instruments shall be formulated by the medical supervision and management authority of the State Council.

    Article 16  The instructions for use, labels and packages of medical instruments shall conform to relevant state standards or regulations.

    Article 17  The serial number of the product registration certificate shall be indicated on the medical instruments and the outer
package thereof in accordance with regulations of the medical supervision and management authority of the State Council.

    Article 18  The state adopts re-appraisal and washout systems in medical instruments. The detailed measures shall be formulated by
the medical supervision and management authority of the State Council in consultation with relevant departments of the State Council.
Chapter III  Management to the production, business and Use of medical Instruments

    Article 19  The enterprises manufacturing medical instruments shall conform to the following requirements:
(a) Having professional technical staff appropriate to the medical instruments manufactured;
(b) Having premises and environment for manufacture appropriate to the medical instruments manufactured;
(c) Having manufacture equipment appropriate to the medical instruments manufactured;
(d) Having institution or staff that conducts product quality inspection of the medical instruments manufactured, and inspection equipment.

    Article 20  The enterprise running the first category medical instruments shall be reported for the record to the medical supervision
and management authority of the people’s government of province, autonomous region or municipality directly under central authority.

    The enterprise running the second or the third category medical instruments shall be examined and approved
by the medical supervision and management authority of the people’s government of province, autonomous region or municipality directly
under central authority, which then issues the . In the absence of the , the administrative authority for industry and commerce shall not issue business license.

    The validity period of the is 5 years, and upon the expiration thereof such license shall be re-examined and issued. The detailed regulations shall be shall
be formulated by the medical supervision and management authority of the State Council.

    Article 21  Only after obtaining the registration certificate of product manufacture of medical instruments may the enterprise manufacturing
medical instruments start manufacturing the same.

    Article 22  The state adopts mandatory safety verification system with respect to partial third category medical instruments. The
detailed product catalog shall be formulated by the medical supervision and management authority of the State Council in conjunction
with the quality and technology supervisory authority of the State Council.

    Article 23  The enterprises dealing with medical instruments shall conform to the following requirements:
(a) Having premises and environment for business operation appropriate to the medical instruments dealt with;
(b) Having quality inspection staff appropriate to the medical instruments dealt with; and
(c) Having product after-sale servicing ability such as technical training and repair appropriate to the medical instruments dealt
with.

    Article 24  The enterprise running the first category medical instruments shall be reported for the record to the medical supervision
and management authority of the people’s government of province, autonomous region or municipality directly under central authority.

    The establishment of an enterprise dealing with the second or the third category medical instruments shall
be examined and approved by the medical supervision and management authority of the people’s government of province, autonomous region
or municipality directly under central authority, which then issues the . In the absence of the , the administrative authority for industry and commerce shall not issue business license.

    The validity period of the is 5 years, and upon the expiration thereof such license shall be re-examined and issued. The detailed regulations shall be shall
be formulated by the medical supervision and management authority of the State Council.

    Article 25  The medical supervision and management authority of the people’s government of province, autonomous region or municipality
directly under central authority shall decide whether to grant a license within 30 business days as from the date of accepting the
application for or ; if license isn’t granted, written reasons shall be given.

    Article 26  The enterprise dealing with medical instruments and the medical institution shall purchase certified medical instrument
from productive or commercial enterprise with or and inspect certificate of quality product.

    The enterprise dealing with medical instruments shall not trade in medical instruments that are unregistered,
without certificate of quality product, expired, loss of effect or washed out.

    The medical institution shall not use medical instruments that are unregistered, without certificate of quality
product, expired, loss of effect or washed out.

    Article 27  The medical institution shall not repeatedly use one-off use medical instruments; the used shall be destroyed in accordance
with relevant regulations of the state and be recorded.

    Article 28  The state establishes quality accident report system of medical instruments and quality accident publicity system of medical
instruments. The detailed regulations shall be formulated by the medical supervision and management authority under the State Council
in conjunction with health and family planning administrative authorities under the State Council.
Chapter IV  Supervision of Medical Instruments

    Article 29  The medical supervision and management authority under the people’s government at or above county level shall appoint
supervisors of medical instruments. The supervisors of medical instruments are responsible for the supervision and inspection of
enterprises manufacturing or dealing with medical instruments and medical institutions within their administrative domain; when necessary,
they may, in accordance with regulations of the medical supervision and management authority of the State Council, draw samples and
require relevant information, and the unit or individual concerned shall not refuse or disguise. The supervisors are obliged to keep
the samples or information obtained in confidentiality.

    Article 30  The state adopts qualification authentication system in inspection institutions of medical instruments. Only the inspection
institutions having been authenticated by the medical supervision and management authority of the State Council in conjunction with
the quality and technology supervisory authority of the State Council may perform inspection of medical instruments.

    The inspection institution of medical instruments and its staff are obliged to keep the technical information
of the unit being inspected in confidentiality, and shall not engage or participate in the development, manufacture, business operation,
technical consulting and other activities of medical instruments in connection with the inspection.

    Article 31  The medical supervision and management authority under local people’s government at or above county level may seal up
and seize the products and relevant materials that have resulted in quality accident of medical instrument or might result in quality
accident of medical instrument.

    Article 32  For the medical instruments with safety and effectiveness unable to be guaranteed, the medical supervision and management
authority under the people’s government at or above province level shall cancel their product registration certificate. The medical
instruments with cancelled product registration certificate shall not be manufactured, sold or used, and for those having been manufactured
or imported, the medical supervision and management authority of local people’s government at county or above level is responsible
for supervision and disposition.

    Article 33  The product registration implemented by the medical supervision and management authority under municipal people’s governments
with districts at or above county level in violation of provisions of this Regulations shall be rectified within given period ordered
by the medical supervision and management authority under the State Council; in the event of failure to make rectification upon expiry,
the product registration certificate of medical instruments illegally registered shall be cancelled and publicity shall be made.

    Article 34  The advertisement of medical instruments shall be examined and approved by the medical supervision and management authority
under the people’s government at or above province level; without approval, no publishing, broadcasting, handing-out or posting is
allowed.

    The contents of the advertisement of medical instruments shall be based on the instructions for use approved
by the medical supervision and management authority of the State Council or the medical supervision and management authority of the
people’s governments in provinces, autonomous regions or municipalities directly under central authority.
Chapter V  Penalty Provisions

    Article 35  For an enterprise manufacturing without registration certificate of product manufacture of medical instruments in violation
of provisions of this Regulations, the medical supervision and management authority of people’s government at or above county level
shall order the cessation of production, and confiscate the illegally manufactured products and illegal income, and if the illegal
income exceeds RMB 10,000 Yuan, a fine of not less than 3 times and not more than 5 times the illegal income shall be imposed together;
if there is no illegal income or the illegal income is less than RMB 10,000 Yuan, a fine of not less than RMB 10,000 Yuan and not
more than RMB 30,000 Yuan shall be imposed together; if the circumstances are serious, the medical supervision and management authority
of the people’s government in a province, autonomous region or municipality directly under central authority shall cancel its ; if the matter constitutes a criminal offence, criminal liability shall be pursued according to law.

    Article 36  For the enterprise manufacturing the second or the third category medical instruments without in violation of provisions of this Regulations, the medical supervision and management authority of people’s government at or above
county level shall order cessation of production, and confiscate the illegally manufactured products and illegal income, and if the
illegal income exceeds RMB 10,000 Yuan, a fine of not less than 3 times and not more than 5 times the illegal income shall be imposed
together; if there is no illegal income or the illegal income is less than RMB 10,000 Yuan, a fine of not less than RMB 10,000 Yuan
and not more than RMB 30,000 Yuan shall be imposed together; if the matter constitutes a criminal offence, criminal liability shall
be pursued according to law.

    Article 37  For the enterprise manufacturing medical instruments not conforming to the state standards or industrial standards of
medical instruments in violation of provisions of this Regulations, the medical supervision and management authority of people’s
government at or above county level shall impose warning, and order cessation of production, and confiscate the illegally manufactured
products and illegal income, and if the illegal income exceeds RMB 5,000 Yuan, a fine of not less than 2 times and not more than
5 times the illegal income shall be imposed together; if there is no illegal income or the illegal income is less than RMB 5,000
Yuan, a fine of not less than RMB 5,000 Yuan and not more than RMB 20,000 Yuan shall be imposed together; if the circumstances are
serious, the original issuing authority shall cancel its registration certificate of product manufacture; if the matter constitutes
a criminal offence, criminal liability shall be pursued according to law.

    Article 38  For the enterprise manufacturing the second or the third category medical instruments without in violation of provisions of this Regulations, the medical supervision and management authority of people’s government at or above
county level shall order cessation of dealing, confiscate the illegally manufactured products and illegal income, and if the illegal
income exceeds RMB 5,000 Yuan, a fine of not less than 2 times and not more than 5 times the illegal income shall be imposed together;
if there is no illegal income or the illegal income is less than RMB 5,000 Yuan, a fine of not less than RMB 5,000 Yuan and not more
than RMB 20,000 Yuan shall be imposed together; if the matter constitutes a criminal offence, criminal liability shall be pursued
according to law.

    Article 39  For the enterprise dealing with medical instruments that are without product registration certificate, without certificate
of quality product, expired, loss of effect or washed out, or purchasing medical instruments from enterprise without or in violation of provisions of this Regulations, the medical supervision and management authority of people’s government at county
or above level shall order cessation of production, confiscate the illegally manufactured products and illegal income, and if the
illegal income exceeds RMB 5,000 Yuan, a fine of not less than 2 times and not more than 5 times the illegal income shall be imposed
together; if there is no illegal income or the illegal income is less than RMB 5,000 Yuan, a fine of not less than RMB 5,000 Yuan
and not more than RMB 20,000 Yuan shall be imposed together; if the circumstances are serious, the original issuing authority shall
cancel its ; if the matter constitutes a criminal offence, criminal liability shall be pursued according to law.

    Article 40  For the enterprise cheating its product registration certificate of medical instruments by furnishing false certificate,
document, information or sample or by other deceitful means at the time of applying for registration of medical instruments, in violation
of provisions of this Regulations, the original issuing authority shall cancel its product registration certificate, not accept its
product registration applications within two years, and impose a fine of not less than RMB 10,000 Yuan and not more than RMB 30,000
Yuan; for products having been manufactured, shall confiscate the illegally manufactured products and illegal income, and if the
illegal income exceeds RMB 10,000 Yuan, a fine of not less than 3 times and not more than 5 times the illegal income shall be imposed
together; if there is no illegal income or the illegal income is less than RMB 10,000 Yuan, a fine of not less than RMB 10,000 Yuan
and not more than RMB 30,000 Yuan shall be imposed together; if the matter constitutes a criminal offence, criminal liability shall
be pursued according to law.

    Article 41  For violation of provisions of Article 34 of these Regulations with respect to advertising of medical instruments, the
administrative authority for industry and commerce shall deal with it in accordance with relevant state laws and regulations.

    Article 42  For medical institution using medical instruments that are without product registration certificate, without certificate
of quality product, expired, loss of effect or washed out, or purchasing medical instruments from enterprise without or in violation of provisions of this Regulations, the medical supervision and management authority of people’s government at county
or above level shall order rectification, impose warning, confiscate the illegally used products and illegal income, and if the illegal
income exceeds RMB 5,000 Yuan, a fine of not less than 2 times and not more than 5 times the illegal income shall be imposed together;
if there is no illegal income or the illegal income is less than RMB 5,000 Yuan, a fine of not less than RMB 5,000 Yuan and not more
than RMB 20,000 Yuan shall be imposed together; the chief responsible officer and other person with direct liability shall be imposed
disciplinary punishment; if the matter constitutes a criminal offence, criminal liability shall be pursued according to law.

    Article 43  For medical institution repeatedly using one-off use medical instruments or failing to destroy the medical instruments
that shall be destroyed, in violation of provisions of these Regulations, the medical supervision and management authority of people’s
government at or above county level shall order rectification and impose warning, and may impose a fine of not less than RMB 5,000
Yuan and not more than RMB 30,000 Yuan shall be imposed; the chief responsible officer and other person with direct liability shall
be imposed disciplinary punishment; if the matter constitutes a criminal offence, criminal liability shall be pursued according to
law.

    Article 44  For medical institution in clinical tryout or clinical verification of medical instruments providing false report in violation
of provisions of these Regulations, the medical supervision and management au

123...10Page 2 of 10

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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