ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF CUSTOMS, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, STATE ECONOMIC AND TRADE COMMISSION CONCERNING ADJUSTING THE STANDARDS OF EVALUATION OF ENTERPRISE MANAGEMENT

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

Announcement of the General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, State Economic and
Trade Commission Concerning Adjusting the Standards of Evaluation of Enterprise Management

[2001] No.5

June 21, 2001

Upon deliberation, the evaluation standards for classified management of enterprises are hereby adjusted and proclaimed as follows:

1.

The evaluation standards of enterprises of catalogue A provided in article six of Regulations on the Classified Management of Enterprises
of the Customs of the People’s Republic of China “no records of smuggling and rule violating actions for two consecutive years” has
been adjusted to “no records of smuggling and rule violating actions for six months in a row”. The stated “six months” refers to
the six months prior to the date of evaluation enterprise management categories.

2.

The following rule violating actions may not be regarded as the records of the evaluation of classified enterprise management.

(1)

The action that doesn’t involve import or export licensing or custom duties;

(2)

The action that involves import or export licensing or custom duties but the fine by the customs is under (including) 10,000 RMB yuan.

3.

The announcement shall enter into force as of July 1, 2001.