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2007

SUPPLEMENTARY CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING THE ADMINISTRATIVE MEASURES AND THE WORKING RULES FOR THE COLLECTION AND PAYMENT OF INCOME TAX OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES

The State Administration of Taxation

Supplementary Circular of the State Administration of Taxation on Relevant Issues Concerning the Administrative Measures and the Working
Rules for the Collection and Payment of Income Tax of Enterprises with Foreign Investment and Foreign Enterprises

GuoShuiHan[2001]No.319

April 30, 2001

The state taxation bureaus of all the provinces, autonomous regions, municipalitie directly under the Central Government and municipalities
separately listed on the State plan, the local taxation bureau of Shenzhen and the Yangzhou College for Further Studies on Taxation:

On the work of the collection and payment of income tax of enterprises with Foreign investment and foreign enterprises, the State
Administration of Taxation has issued the amended “Administrative Measures for the Collection and Payment of Income Tax of Enterprises
with foreign investment and Foreign Enterprises” (hereinafter referred to as “Measures”) and the “Working Rules for the Collection
and Payment of Income Tax of Enterprises with Foreign Investment and Foreign Enterprises” (hereinafter referred to as “Rules”) (GuoShuiFa
[2001] No.9). The relevant issues concerning the implementation of the Measures and Rules are hereby clarified as follows:

1.

On the administration of taxation assistance by taxpayer branches:

The administration of taxation assistance by taxpayers that have set up branches or business offices (hereinafter referred to as “business
offices”) in different regions is the joint function and duty of the taxation departments, therefore a system of taxation assistance
administration overseeing the business offices of taxpayers shall be established.

1)

The taxation department for the location where the head office or the business office responsible for collecting reports and paying
income tax for the enterprise (hereinafter referred to as “tax collection and payment office”) is located shall, after accepting
the report of annual income tax collection or consolidation of the taxpayer, produce the Certificate of Report of the Collection
or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investmentand Foreign Enterprises (Attachment 1) for the
taxpayer in appropriate time. The certificate shall be sent to the department in charge of taxation of the place where the taxpayer’s
business office is located. The time limit for submitting the certificate as provided by Article 6 of the Measures shall be adjusted
before June 31 of each year.

2)

If the taxation department of the location where the tax collection and payment office is located has found points of clarification
involving the taxpayer’s business office in the examination and evaluation of the tax collection reports and needs to make further
verification, it may send the “Letter for Assistance regarding Taxation Affairs of the Business Office” (Attachment 2) to the taxation
department of the location where the business office of that taxpayer is located, and that taxation department of the place where
that business office is located shall be responsible for the investigation and verification for affairs needing assistance, and shall
write a letter about the result back to the taxation department of the location where the tax collection and payment office is located.
If the taxation department of the place where the business office is located has found, in routine administration or taxation inspection,
problems involving income tax such as reporting less income or listing more costs for the business office, it shall promptly notify
in written form the taxation department of the location where the tax collection and payment office is located to handle the taxation
affairs (Attachment 3).

3)

The taxation department of the place where the business office is located shall abide by the following methods and procedures when
executing Article 6 of the Measures to collect tax on-location from the business office.

a.

The taxation department of the location where the business office is located may collect tax from the business office on-location
only under the following circumstances:

The business office has not submitted, before the time limit (July 31) provided by Article 6 of the Measures, the “Certificate of
Report of the Collection or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investment and Foreign Enterprises”
produced by the taxation department of the place where the tax collection and payment office is located, or other certificates that
can prove that its tax collection and payment office has reported the collection of annual income tax, without having obtained the
approval documents for a reporting extension.

b.

For the business office subject to the circumstances mentioned above, the amount of income tax to be collected may be verified and
calculated, or be verified according to the profit level for the same industry or by other means, and the amount of tax shortfall
shall be calculated and the punishment shall be determined according to the provisions of taxation laws and regulations; but if the
taxpayer’s collection report belongs to a profit loss or tax exemption year, the taxation department of the place where the business
office is located shall notify in written form the taxation department of the place where the tax collection and payment office is
located to make a unified tax adjustment (Attachment 3).

c.

The taxation department of the location where the business office is located shall, after handling the taxation affairs of the business
office according to the provisions mentioned above, notify in written form the taxation department of the place where the tax collection
and payment office is located regarding the relevant information (Attachment 3).

2.

On the examination and appraisal of the report of collection and payment

The collection and payment of enterprise income tax shall be completed within the period provided by tax laws. For this purpose, if
the taxation departments of the localities can not finish the detailed examination and appraisal of the annual report form of the
enterprises according to the full requirements of the Measures for Tax Examination and Appraisal within the period for collection
and payment provided by tax laws before adopting electronic means for examination and appraisal or because of other reasons, they
may make the initial tax examination of the relevant items provided by Item 3 of the Second Paragraph of Article 3 of the “Working
Rules for the Collection and Payment of Income Tax of Enterprises with Foreign Investment and Foreign Enterprises” after receiving
the report form materials submitted by the taxpayer, and shall issue the notification of collection and payment according to the
result of the initial examination and appraisal within the period of collection and payment provided by tax laws. The departments
shall make detailed appraisals on the taxpayers that have points of clarification arise during the initial examination and appraisal,
and shall make relevant taxation adjustments.

Attachments:

1.

Certificate of Report of the Collection or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investment and Foreign
Enterprises

2.

Letter for Assistance regarding Taxation Affairs of the Business Office

3.

Letter of Contact regarding the Taxation Handlings of the Business Office

Attachment 1:Certificate of Report of the Collection or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investment and Foreign
Enterprises

Certificate No. ( ) of the State (local) taxation bureau

To the State (local) taxation bureau:

The _______________________________________________ under your jurisdiction is the business office set up in your place by the ____________________________under
our jurisdiction, and has already collected or consolidated and reported its annual enterprise income tax at this bureau in Month
__ Year __.

Hereby certified.

Name and official seal of the taxation department of the place where the tax collection and payment office is located.

Month__ Day__ Year __

Certificate of Report of the Collection or Consolidation of Enterprise Income Tax of the Enterprises with Foreign Investment and Foreign
Enterprises

Certificate No. ( ) of the State (local) taxation bureau

To the State (local) taxation bureau:

The ____________________________________ under your jurisdiction is the business office set up in your place by the __________________________
administrated by our bureau, and has already collected or consolidated and reported its annual enterprise income tax at this bureau
in Month __ Year __.

Hereby certified.

With greetings

Name and official seal of the taxation department of the place where tax collection and payment office is located

Month __ Day __ Year __

Post code and address of the taxation department:

Person responsible for business contact:

Telephone:

Fax:

Attachment 2:Letter for Assistance regarding Taxation Affairs of the Business Office (Receipt)

No. ( ) of the State (local) taxation bureau

To the State (local) taxation bureau:

The __________________________________ under your jurisdiction is the business office set up in your place by the ________________________
administrated by this bureau, please investigate and verify the following matters regarding that business office:

Matters:

Points of Clarification:

The name and official seal of the taxation department of the place where tax collection and payment is located

Month __ Day __ Year __

Letteistance regarding Taxation Affairs of the Business Office (Receipt)

Letter No. ( ) of the State (local) taxation bureau

The state (local) taxation bureau:

The __________________________________ under your jurisdiction is the business office set up in your place by the ________________________
administrated by this bureau, please investigate and verify the following matters regarding that business office:

Matters:

points of clarification:

Registered address of the business office:

Telephone:

Fax:

With greetings

Name and official seal of the taxation department of the place where the tax collection and payment is located

Month __ Day __ Year __

Post code and address of the department in charge of taxation:

Person responsible for business contact:

Telephone:

Fax:

Attachment 3:Letter of Contact regarding the Taxation Handlings of the Business Office

Letter No. ( ) of the State (local) taxation bureau

The State (local) taxation bureau:

The ____________________________________ under your jurisdiction is the business office set up in your place by the __________________________
administrated by our bureau.

Address of the business office:

Telephone:

Fax:

According to the Law of the People’s Republic of China on Income Tax of Enterprises with Foreign Investment and Foreign Enterprises
and the provisions of the “Supplementary Circular on Relevant Issues Concerning the Administrative Measures and Working Rules for
the Collection and Payment of Income Tax of Enterprises with Foreign Investment and Foreign Enterprises,” we will handle, based on
our verification, the income tax of that business office of Year __ as follows:

1.

The amount of taxable income that the business office has not collected and reported as determined by our bureau:

1)

Verified amount: ___________________.

2)

Amount appraised and calculated according to the profit margins of the same industry: _____________________.

3)

Amount appraised and calculated by other means: _______________.

2.

The amount of unreported to be collected and the punitive amount calculated by this bureau:

Applicable tax rate (actual collection rate): __________ Tax amount to be collected: _______________. Late fee ___________________
Punitive amount: ____________________.

3.

The taxation affairs submitted by this bureau to you for handlings:

1)

The amount of income that the business office has failed to report: ________________.

2)

The amount expenses over-claimed by the business office: ___________.

3)

The amount of profit (loss) of this business office for which your bureau must make taxation adjustment and handlings because the
taxpayer is considered to belongs to a profit loss (tax exemption) year: _______.

4)

Other matters: _________________________________________.

Name and official seal of the taxation department of the place where the business office is located

Month __ Day __ Year __

Postal code of the taxation department: Address:

Person responsible for business contact:

Telephone:

Fax:



 
The State Administration of Taxation
2001-04-30

 






JUDGES LAW

Judges Law of the People’s Republic of China

(Adopted at the 12th Meeting of the Standing Committee of the Eighth National People’s Congress on February 28, 1995,
promulgated by Order No. 38 of the President of the People’s Republic of China on February 28, 1995, and amended in accordance with
the Decision on Amending the Judges Law of People’s Republic of China adopted at the 22nd Meeting of the Standing Committee of the
Ninth National People’s Congress on June 30, 2001) 

Contents 

Chapter I     General Provisions 

Chapter II    Functions and Duties 

Chapter III   Obligations and Rights 

Chapter IV    Qualifications for a Judge 

Chapter V     Appointment and Removal 

Chapter VI    Posts to Be Avoided 

Chapter VII   Grades of Judges 

Chapter VIII  Appraisal 

Chapter IX    Training 

Chapter X     Awards 

Chapter XI    Punishment 

Chapter XII   Salary, Insurance and Welfare 

Chapter XIII  Resignation and Dismissal 

Chapter XIV   Retirement 

Chapter XV    Petition and Complaint 

Chapter XVI   Commission for Examination and Assessment of Judges 

Chapter XVII  Supplementary Provisions 

 

Chapter I 

General Provisions 

Article 1   This law is enacted in accordance with the Constitution to enhance the quality of judges, to strengthen the
administration of judges, and to ensure that the People’s Courts independently exercise judicial authority according to law, that
judges perform their functions and duties according to law and that law is administered impartially. 

Article 2   Judges are judicial persons who exercise the judicial authority of the State according to law, and they include
the presidents, vice-presidents, members of judicial committees, chief judges and associate chief judges of divisions, judges and
assistant judges of the Supreme People’s Court, local People’s Courts at various levels and special People’s Courts such as military
courts. 

Article 3   Judges shall faithfully implement the Constitution and laws, and serve the people wholeheartedly. 

Article 4   Judges, when performing their functions and duties according to law, shall be protected by law. 

Chapter II 

Functions and Duties 

Article 5    The functions and duties of a judge are as follows : 

(1) to take part in a trial as a member of a collegial panel or to try a case alone according to law; and 

(2) to perform other functions and duties as provided by law. 

Article 6   Presidents, vice-presidents, members of judicial committees, and chief judges and associate chief judges of
divisions shall, in addition to the judicial functions and duties, perform other functions and duties commensurate with their posts.
Chapter III 

Obligations and Rights 

Article 7   Judges shall perform the following obligations: 

(1) to strictly observe the Constitution and laws; 

(2) to take facts as the basis and laws as the criterion when trying cases, to handle cases impartially, and not to bend the law
for personal gain; 

(3) to protect the litigation rights of the participants in proceedings according to law; 

(4) to safeguard the State interests and public interests, and to safeguard the lawful rights and interests of natural persons, legal
persons and other organizations; 

(5) to be honest and clean, faithful in the discharge of duties, to observe discipline and professional ethics; 

(6) to keep State secrets and the secrets of judicial work; and 

(7) to accept legal supervision and supervision by the masses. 

Article 8   Judges shall enjoy the following rights: 

(1) to have the power and working conditions which are essential to the performance of the functions and duties of judges; 

(2) to brook no interference from administrative organs, public organizations or individuals in trying cases according to law; 

(3) to be not removed, demoted or dismissed from the post, and to be not given a sanction, without statutory basis and without going
through statutory procedures; 

(4) to be remunerated for work and to enjoy insurance and welfare benefits; 

(5) to enjoy safety of the person, property and residence as ensured by law; 

(6) to receive training; 

(7) to lodge petitions or complaints; and 

(8) to resign their posts. 

Chapter IV 

Qualifications for a Judge 

Article 9   A judge shall possess the following qualifications: 

(1) to be of the nationality of the People’s Republic of China; 

(2) to have reached the age of 23; 

(3) to endorse the Constitution of the People’s Republic of China; 

(4) to have fine political and professional quality and to be good in conduct; 

(5) to be in good health; and 

(6) to have worked in law for at least two years in the case of a graduate from a four-year course in the law specialty of an institution
of higher education or a graduate from a four-year course in a non-law specialty of such an institution who possesses the professional
knowledge of law, and to have worked in law for at least three years in the case of the said graduate to be appointed judge of a
Higher People’s Court or the Supreme People’s Court; to have worked in law for at least one year in the case of a person holding
a Master of Law degree or Doctor of Law degree; or a person holding a master’s degree or doctor’s degree of non-law specialty who
possesses the professional knowledge of law, and to have worked in law for at least two years in the case of the said person to be
appointed judge of a Higher People’s Court or the Supreme People’s Court. 

The judicial persons who, before this Law is implemented, do not possess the qualifications as provided by sub-paragraph (6) of the
preceding paragraph shall receive training. The specific measures shall be formulated by the Supreme People’s Court. 

Where it is really difficult to apply the provisions in sub-paragraph (6) of the first paragraph regarding the academic qualifications,
such qualifications for judges may, upon examination and approval by the Supreme People’s Court and within a limited period of time,
be relegated to include graduates from a two-or-three-year course in the law specialty of an institution of higher education. 

Article 10   None of the following persons may hold the post of a judge: 

(1) persons who have been subjected to criminal punishment for commission of a crime; or 

(2) persons who have been discharged from public employment. 

Chapter V 

Appointment and Removal 

Article 11   A judge shall be appointed or removed from the post in accordance with the limit of authority for, and procedures
of, appointment or removal as prescribed by the Constitution and laws. 

The President of the Supreme People’s Court shall be elected or removed by the National People’s Congress. The vice-presidents, members
of the judicial committee, chief judges and associate chief judges of divisions and judges shall be appointed or removed by the Standing
Committee of the National People’s Congress upon the suggestions of the President of the Supreme People’s Court. 

The presidents of the local People’s Courts at various levels shall be elected or removed by the local People’s Congress at various
levels. The vice-presidents, members of the judicial committees, chief judges and associate chief judges of divisions and judges
shall be appointed or removed by the standing committees of the people’s congresses at the corresponding levels upon the suggestions
of the presidents of those courts. 

The appointment or removal of the presidents of the Intermediate People’s Courts set up in prefectures of the provinces or autonomous
regions or set up in the municipalities directly under the Central Government shall be decided on by the standing committees of the
people’s congresses of provinces, autonomous regions or municipalities directly under the Central Government on the basis of the
nominations made by the respective councils of chairmen. The vice-presidents, members of the judicial committees, chief judges and
associate chief judges of divisions and judges shall be appointed or removed by the standing committees of the people’s congresses
of the provinces, autonomous regions or municipalities directly under the Central Government upon the suggestions of the presidents
of the Higher People’s Courts. 

The presidents of the local People’s Courts at various levels set up in the national autonomous areas shall be elected or removed
by the people’s congresses at various levels of the national autonomous areas. The vice-presidents, members of the judicial committees,
chief judges and associate chief judges of divisions and judges shall be appointed or removed by the standing committees of the people’s
congresses at the corresponding levels upon the suggestions of the presidents of those courts. 

The assistant judges of the People’s Courts shall be appointed or removed by the presidents of the courts where they work. 

The measures for the appointment or removal of the presidents, vice-presidents, members of the judicial committees, chief judges
and associate chief judges of divisions and judges of the Special People’s Courts such as the military courts shall be formulated
by the Standing Committee of the National People’s Congress separately. 

Article 12   Persons to be appointed judges for the first time shall be selected, through strict examination and appraisal,
from among those who have passed the uniform national judicial examination and who are the best qualified for the post, in conformity
with the standards of having both ability and political integrity. 

Persons to be appointed presidents or vice-presidents of People’s Courts shall be selected from among the best judges and other people
who are best qualified for the post. 

Article 13   If a judge is found to be in any of the following circumstances, a suggestion shall be submitted according
to law for his or her removal from the post: 

(1) having forfeited the nationality of the People’s Republic of China; 

(2) having been transferred out of a court; 

(3) having no need to maintain his or her original post after a change of post; 

(4) being determined to be incompetent in the post through appraisal; 

(5) being unable to perform the functions and duties of a judge for a long period of time due to poor health; 

(6) having retired from the post; 

(7) having resigned the post, or having been dismissed; or 

(8) being disqualified from continuing to hold the post because of violation of discipline or law or commission of a crime. 

Article 14   Once the organ discovers that the appointment of a person as judge made by it is in violation of the provisions
of this Law governing the qualifications for judges, it shall revoke the appointment. Where a court at a higher level discovers that
the appointment of a judge made by a court at a lower level is in violation of the provisions governing the qualifications for judges,
the former shall suggest to the latter that it revoke the appointment in accordance with law or that the it, in accordance with law,
suggest to the standing committee of the people’s congress at the same level that it revoke the appointment. 

Article 15   No judges may concurrently be members of the standing committees of the people’s congresses, or hold posts
in administrative organs, procuratorial organs, enterprises or institutions, or serve as lawyers. 

Chapter VI 

Posts to Be Avoided 

Article 16   Judges who are connected by husband-wife relationship, or who are directly related by blood, collaterally
related within three generations, or closely related by marriage may not, at the same time, hold the following posts: 

(1) the president, vice- presidents, members of the judicial committee, chief judges or associate chief judges of divisions in the
same People’s Court; 

(2) the president, vice-presidents, judges or assistant judges in the same People’s Court; 

(3) the chief judge, associate chief judges, judges or assistant judges in the same division; or 

(4) presidents or vice-presidents of the People’s Courts at the levels next to each other. 

Article 17   No judge may, within two years after leaving his or her post from a People’s Court, serve as an agent ad litem
or a defender in the capacity of a lawyer. 

No judge may, after leaving his or her post from a People’s Court, serve as an agent ad litem or a defender in a case being handled
by the court where he or she previously held a post. 

No spouse or children of a judge may serve as an agent ad litem or a defender in a case being handled by the court where the judge
holds a post. 

Chapter VII 

Grades of Judges 

Article 18   Judges are divided into twelve grades. 

The President of the Supreme People’s Court is the Chief Justice, and judges from the second to the twelfth grade are composed of
associate justices, senior judges and judges. 

Article 19   Grades of judges shall be determined on the basis of their posts, their actual working ability and political
integrity, their professional competence, their achievements in judicial work and their seniority. 

Article 20   Measures for the establishment of the grades and for their evaluation and promotion shall be formulated separately
by the State. 

Chapter VIII 

Appraisal 

Article 21   Appraisal of judges shall be conducted by the People’s Courts the judges belong to. 

Article 22   The appraisal of judges shall be carried out objectively and impartially, through the combined efforts of
the leaders and masses, and routinely and annually. 

Article 23   The appraisal of judges shall include their achievements in judicial work, their ideological level and moral
character, their competence in judicial work and their mastery of law theories, their attitude in and style of work. However, emphasis
shall be laid on their achievements in judicial work. 

Article 24   The results of the annual appraisal shall fall into three grades: excellent, competent and incompetent. 

The results of appraisal shall be taken as the basis for award, punishment, training, removal or dismissal of a judge, and for readjustment
of his or her grade and salary. 

Article 25   A judge shall be informed of the result of the appraisal in written form. If the judge disagrees with the
result, he or she may apply for reconsideration. 

Chapter IX 

Training 

Article 26   Theoretical and professional training for judges shall be carried out in a planed way. 

The principles of integrating theory with practice, giving lectures in light of the needs, and emphasizing practical results shall
be applied in the training of judges. 

Article 27   The judges colleges and universities of the State and other institutions for training judges shall, in accordance
with relevant regulations, undertake the task of training judges. 

Article 28   The results of the studies of judges and appraisals made during their training shall be taken as one of the
bases for their appointment and promotion. 

Chapter X 

Awards 

Article 29   Judges who have made significant achievements and contributions in judicial work, or performed other outstanding
deeds shall be rewarded. 

The principle of combining moral encouragement with material reward shall be applied in rewarding judges. 

Article 30   Judges who have any of the following achievements to their credit shall be rewarded: 

(1) having achieved notable successes in enforcing laws and handling cases impartially; 

(2) having accumulated rich experience in judicial practice that may serve as a guide in judicial work; 

(3) having made proposals for the reform of judicial work that have been adopted and have produced remarkable results; 

(4) having performed outstanding deeds in safeguarding the interests of the State, the collective and the people against heavy losses; 

(5) having performed outstanding deeds by bravely fighting against illegal or criminal acts; 

(6) having made judicial proposals that have been adopted and have produced remarkable results, or having scored outstanding successes
in publicizing the importance of the legal system and guiding the work of the people’s mediation committees; 

(7) having scored outstanding achievements in protecting State secrets and secrets of judicial work; or 

(8) having performed other meritorious deeds. 

Article 31   The awards include: Citation for Meritorious Deeds, Merit Citation Class III, Merit Citation Class II, Merit
Citation Class I, and a post_title of honour. 

The awards shall be authorized and procedures gone through in accordance with relevant regulations. 

Chapter XI 

Punishment 

Article 32   No judge may commit any of the following acts: 

(1) to spread statements damaging the prestige of the State; to join illegal organizations; to take part in such activities as assembly,
procession and demonstration against the State; and to participate in strikes; 

(2) to embezzle money or accept bribes; 

(3) to bend law for personal gain; 

(4) to extort confessions by torture; 

(5) to conceal or falsify evidence; 

(6) to divulge State secrets or secrets of judicial work; 

(7) to abuse functions and powers; and to infringe upon the lawful rights and interests of natural persons, legal persons or other
organizations; 

(8) to neglect his or her duty so as to wrongly judge a case or to cause heavy losses to the party concerned; 

(9) to delay the handling of a case so that work is adversely affected; 

(10) to take advantage of the functions and powers to seek gain for himself or herself or other people; 

(11) to engage in profit-making activities; 

(12) to meet the party concerned or his or her agent without authorization and attend dinners or accept presents given by the party
concerned or his or her agent; or 

(13) to commit other acts in violation of law or discipline. 

Article 33   A judge who has committed any of the acts listed in Article 32 of this Law shall be given sanctions; if the
case constitutes a crime, he or she shall be investigated for criminal responsibility in accordance with law. 

Article 34   The sanctions include: a disciplinary warning, a demerit recorded, a grave demerit recorded, demotion, dismissal
from the post and discharge from public employment. 

The salary of a judge who has been dismissed from the post shall at the same time be reduced and his or her grade be demoted. 

Article 35   A sanction shall be authorized and procedures gone through in accordance with relevant regulations. 

Chapter XII 

Salary, Insurance and Welfare 

Article 36   The salary system and scales for judges shall, in light of the characteristics of judicial work, be formulated
by the State. 

Article 37   The system under which the salaries of judges are increased regularly shall be practiced. The salary of a
judge who has been confirmed through appraisal as being excellent or competent may be raised in accordance with regulations; the
salary of a judge who has made special contributions may be raised in advance in accordance with regulations. 

Article 38   Judges shall enjoy judicial allowances, regional allowances and other allowances and insurance and welfare
benefits as prescribed by the State. 

Chapter XIII 

Resignation and Dismissal 

Article 39   If a judge requests resignation, he or she shall present an application in written form before he or she shall
be removed in accordance with the procedures as provided by law. 

Article 40   A judge shall be dismissed if he or she is found to be in any of the following circumstances: 

(1) to be confirmed by annual appraisal as being incompetent for two successive years; 

(2) to be unqualified for the present post and decline to accept other assignments; 

(3) to refuse to accept reasonable transfer, which is necessitated by restructuring of the judicial organ or reduction of the size
of the size of the staff; 

(4) to have stayed away from work without leave or to have overstayed his or her leave without good reason for fifteen days or more
in succession, or for thirty days or more in a year aggregated; or 

(5) to fail to perform a judge’s duty, and make no rectification after criticism. 

Article 41   A judge who is dismissed shall be removed from the post in accordance with the procedures as provided by law. 

Chapter XIV 

Retirement 

Article 42   The retirement system regarding judge shall, in light of the characteristics of judicial work, be formulated
separately by the State. 

Article 43   After retirement judges shall enjoy the insurance of old-age pension and other benefits as prescribed by the
State. 

Chapter XV 

Petition and Complaint 

Article 44   If a judge disagrees with the sanction given to him or her or the disposition of his or her case by a People’s
Court, he or she may, within 30 days from the date of receiving the decision on the sanction or disposition, apply for reconsideration
to the organ which gave the sanction or disposed of the case and shall have the right to appeal to the organ at a level higher than
the organ which gave the sanction or disposed of the case. 

The organ that receives the appeal must make a decision on it in accordance with regulations. 

During the period of reconsideration or petition, execution of the decision on a sanction or disposition made with regard to a judge
shall not be suspended. 

Article 45   If a State organ or any of its functionaries commits an act infringing upon the rights of a judge as provided
by Article 8 of this Law, the judge shall have the right to make a complaint. 

If an administrative organ, a public organization or an individual interferes in a case that a judge is trying according to law,
that organ, organization or individual shall be investigated for responsibility according to law. 

Article 46   The petition or complaint made by a judge shall be true to facts. If a judge makes up a story or lodges a
false accusation against an innocent person, he or she shall be investigated for responsibility according to law. 

Article 47   Where the sanction given to a judge or the disposition of hie or her case is wrong, it shall be put right
without delay; if it has damaged the judge’s reputation, the reputation shall be rehabilitated, the ill effects shall be eliminated
and an apology shall be made; if it has caused financial losses to the judge, compensations shall be made. The persons who are directly
responsible for retaliation shall be investigated for responsibility according to law. 

Chapter XVI 

Commission for Examination and Assessment of Judges 

Article 48   A People’s Court shall establish a commission for examination and assessment of judges. 

The functions and duties of a commission for examination and assessment of judges are to guide the training, examination, appraisal
and assessment of judges. Specific measures in this regard shall be formulated separately. 

Article 49   The number of persons on a commission for examination and assessment of judges shall be five to nine. 

The chairman of a commission for examination and assessment of judges shall be assumed by the president of the court it belongs to. 

Chapter XVII 

Supplementary Provisions 

Article 50   In light of the need of judicial work, the Supreme People’s Court may shall, in conjunction with the relevant
departments, formulate measures to fix the proportion of judges to other staff members in the People’s Courts at different levels. 

Article 51   The State institutes a uniform judicial examination system for persons to be appointed judges or procurators
for the first time, or to obtain the qualifications for lawyer. The judicial administration department under the State Council shall,
in conjunction with the Supreme People’s Court and the Supreme People’s Procuratorate, formulate implementation measures for judicial
examination. The judicial administration department under the State Council shall take charge of the implementation of the measures. 

Article 52   The executors of the People’s Courts shall be administered with reference to the relevant provisions of this
Law. 

Measures for the administration of the clerks of the People’s Courts shall be formulated by the Supreme People’s Court. 

The administrative judicial personnel of the People’s Courts shall be administered in accordance with the relevant regulations of
the State. 

Article 53   This law shall go into effect as of July 1, 1995.

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






CIRCULAR OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON PROMPT AND EFFICIENT COMPLETION OF BUSINESS REGISTRATION CANCELLATION PROCEDURES

The State Administration for Industry and Commerce

Circular of the State Administration for Industry and Commerce on Prompt and Efficient Completion of Business Registration Cancellation
Procedures

GongShangQiZi [2001] No.238

August 29,2001

Administrations for industry and commerce in various provinces, autonomous regions, municipalities directly under the Central Government:

In recent years, some local governments have closed and repealed some enterprises in succession. Some enterprises lacking in adequate
knowledge of related enterprise registration administration laws and regulations did not duly complete the registration cancellation
procedures with competent authorities upon completion of their liquidation work, resulting in delayed cancellation of some enterprises.
To prevent similar problems from reoccurring, this circular on issues of enterprise registration cancellation is given as follows:

I.

Each local administration of industry and commerce should conduct a special review of the enterprises which competent government authorities
have decided to close and repeal but whose registration still remains short of cancellation. As for enterprises that should have
cancelled their registration, related departments should be urged for prompt completion of the procedures. As for enterprises who
fail to complete the registration cancellation procedures due to unfinished settlement of their equity and liabilities, competent
departments of the enterprises and the liquidation group should be urged to speed up the settlement of equity and liabilities. Businesses
failing to effect the registration cancellation procedures on other grounds should actively coordinate with related departments to
find solutions to the impeding difficulties.

II.

Each local administration of industry and commerce should report this matter to the provincial, autonomous region or municipal government
for guidance on and support for its work in this regard and carefully implement the review of enterprises canceling their registration.



 
The State Administration for Industry and Commerce
2001-08-29

 






INTERIM PROVISIONS ON THE ADMINISTRATION OF CHINESE-FOREIGN JOINT VENTURE AND CHINESE-FOREIGN COOPERATIVE JOB INTERMEDIARY INSTITUTIONS

The Ministry of Labor and Social Security, the State Administration for Industry and Commerce

Decree of the Ministry of Labor and Social Security and the State Administration for Industry and Commerce

No.14

The Interim Provisions on the Administration of the Establishment of Chinese-foreign Joint Venture and Chinese-foreign Cooperative
Job Intermediary Institutions have been adopted at the 7th executive meeting of the Ministry of Labor and Social Security (MLSS)
on May 8, 2001 and, upon the consent of the Ministry of Foreign Trade and Economic Relations (MOFTEC), are hereby promulgated for
implementation as of December 1, 2001.

Minister of the Ministry of Labor and Social Security: Zhang Zuoji

Director of the State Administration for Industry and Commerce (SAIC): Wang Zhongfu

October 9, 2001

Interim Provisions on the Administration of Chinese-foreign Joint Venture and Chinese-foreign Cooperative Job Intermediary Institutions

Article 1

These Provisions have been formulated in accordance with the Labor Law, the Law on Chinese-foreign Equity Joint Enterprises and the
Law on Chinese-foreign Cooperative Enterprises for the purpose of standardizing the establishment of Chinese-foreign joint venture
and Chinese-foreign cooperative job intermediary institutions and protecting the lawful rights and interests of the job seekers and
the employing entities.

Article 2

These Provisions shall be observed in the establishment of Chinese-foreign joint venture and Chinese-foreign cooperative institutions
for the purpose of job intermediary activities.

Article 3

The administrative departments of labor and social security, the administrative departments of foreign trade and economic cooperation
and the administrations for industry and commerce shall, within their respective functions and duties, be responsible for the approval,
registration, administration, supervision and inspection of Chinese-foreign joint venture and Chinese-foreign cooperative job intermediary
institutions.

In order to set up a Chinese-foreign joint venture and Chinese-foreign cooperative job intermediary institution, the approval of the
administrative department of labor and social security of the people’s government on the provincial level (hereinafter referred to
as labor and social security department) and the administrative department of foreign trade and economic cooperation shall be obtained
and registration shall be gone through at the local administration for industry and commerce of the place where the enterprises is
to be situated that is authorized by the SAIC. No solely foreign-capital job intermediary institution may be established.

The representative offices of foreign enterprises in China and the foreign chambers of commerce established in China may not engage
in any job intermediary activities.

Article 4

The Chinese-foreign joint venture and Chinese-foreign cooperative job intermediary institutions shall carry out their business activities
on the basis of law, and their lawful business activities shall be subject to the protection of Chinese law.

Article 5

A Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institution may be engaged in any and all of the following
businesses:

1.

providing intermediary services to the job seekers and employing entities both at home and abroad;

2.

providing services in employment guidance and consultation;

3.

collecting and distributing information about the labor markets;

4.

holding job fairs after obtaining the consent of the department of labor and social security on the provincial level or the department
of labor and social security on the prefecture level authorized thereby;

5.

engaging in other services as ratified by the department of labor and social security on the provincial level or the department of
labor and social security on the prefecture level authorized thereby;

Relevant provisions of the state shall be applicable to the intermediary services provided by the Chinese-foreign joint venture and
Chinese-foreign job intermediary institutions to the Chinese citizens in helping them to seek employment overseas and to the representative
offices of foreign enterprises within China in their seeking of Chinese employees.

Article 6

The following conditions shall be satisfied in the application for establishing a Chinese-foreign joint venture or Chinese-foreign
cooperative job intermediary institution, and formalities shall be completed in accordance with the procedures as provided in articles
7 and 10 of these Provisions:

1.

The foreign investor that applies for establishing a Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary
institution shall be a legal person that is engaged in the job intermediary business and shall have experience in job intermediary
services in the country where it is registered and shall have good credit standing;

2.

The Chinese investor that applies for establishing a Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary
institution shall be a legal person that is eligible for engagement in the job intermediary business and shall have good credit standing;

3.

The Chinese-foreign joint venture or Chinese-foreign cooperative institution to be established shall have a registered capital of
not less than 300,000 USD, 3 or more full-time employees that have the credentials for engaging in the job intermediary services,
a definite scope of business, articles of incorporation, rules for management, and fixed offices and facilities necessary for carrying
out business. The key business operators shall have experience in providing job intermediary services.

Article 7

To establish a Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary institution, an application shall be
filed to the department of foreign trade and economic cooperation on the provincial level of the place where the institution is to
be established, and relevant documents of the Chinese-foreign joint venture or Chinese-foreign cooperative institution to be established
shall be submitted at the same time.

After having received the application, the department of foreign trade and economic cooperation on the provincial level shall transfer
the documents as mentioned below to the department of labor and social security on the same level:

1.

registration certificates of both the Chinese and foreign parties (in photocopy);

2.

career certificates (in photocopy) and resumes of the major business operators;

3.

resumes and employment credentials of the future full-time employees;

4.

certificates for the use of domicile;

5.

certificates of business scope to be engaged in;

6.

other documents as provided in laws or regulations.

Article 8

The department of labor and social security on the provincial level shall, after receiving the documents that have been transferred
thereto as pursuant to Article 7 of these Provisions, give a reply within 15 days. If the applicant has satisfied the conditions,
a certification document shall be issued for approving the establishment of the Chinese-foreign joint venture or Chinese-foreign
cooperative job intermediary institution; where the applicant has not satisfied the conditions, reasons shall be given and the documents
as mentioned above shall be returned to the department of foreign trade and economic cooperation on the provincial level.

Article 9

The department of foreign trade and economic cooperation shall, within 30 days after receiving the certification document of the department
of labor and social security on the same level approving the establishment of the Chinese-foreign joint venture or Chinese-foreign
cooperative institution, decide whether to approve or disapprove. If approval is to be granted, an approval certificate shall be
issued to the Chinese-foreign joint venture or Chinese-foreign cooperative institution; if approval is not to be granted, it shall
notify the applicant.

Article 10

Any applicant that have obtained approval shall, within 30 days after receiving the certificate of approving the Chinese-foreign joint
venture or Chinese-foreign cooperative enterprise, apply for registration at the local administration for industry and commerce of
the place where the enterprise is to be situated that has been authorized by the SAIC, and shall, within 10 days after completing
the registration, go through the procedures of filing archives at the department of labor and social security on the provincial level
or the department of labor and social security on the prefecture level authorized thereby.

Article 11

If there is any change in the investors, proportion of shares of the Chinese-foreign joint venture or Chinese-foreign cooperative
job intermediary institution or any branch is to be established, the approving procedures as provided in these Provisions shall be
followed so as to obtain the approval of the original approving authority, relevant alteration procedures shall be completed at the
administration for industry and commerce, and the procedures for filing archives shall be completed at the department of labor and
social security.

Article 12

The Provisions for the Administration of Labor Markets and other relevant provisions for the administration of enterprises with foreign
investment shall be applicable to the administration of Chinese-foreign joint venture and Chinese-foreign cooperative job intermediary
institutions.

Article 13

These Provisions shall be applicable by reference to the Chinese-foreign joint venture or Chinese-foreign cooperative job intermediary
institutions established by investors from the Hang Kong Special Administrative Region, Macao Special Administrative Region or investors
from Taiwan within the Mainland of China.

Article 14

These Provisions shall enter into force as of December 1, 2001.



 
The Ministry of Labor and Social Security, the State Administration for Industry and Commerce
2001-10-09

 






AGREEMENT ON ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENTS BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS

AGREEMENT ON ENCOURAGEMENT AND RECIPROCAL PROTECTION OF INVESTMENTS BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE
GOVERNMENT OF THE KINGDOM OF THE NETHERLANDS

The Government of the People’s Republic of China and the Government of the Kingdom of the Netherlands (hereinafter referred to as
the “Contracting Parties”),

Desiring to strengthen their traditional ties of friendship and to extend and intensify the economic relations between them, particularly
with respect to investments by the investors of one Contracting Party in the territory of the other Contracting Party,

Recognising that agreement upon the treatment to be accorded to such investments will stimulate the flow of capital and technology
and the economic development of the Contracting Parties and that fair and equitable treatment of investment is desirable,

Have agreed as follows:

Article 1

DEFINITIONS

For the purpose of this Agreement,

1.

The term “investment” means every kind of asset invested by investors of one Contracting Party in the territory of the other Contracting
Party, and in particular, though not exclusively, includes:

(a)

movable and immovable property and other property rights such as mortgages and pledges;

(b)

shares, debentures, stock and any other kind of participation in companies;

(c)

claims to money or to any other performance having an economic value associated with an investment;

(d)

intellectual property rights, in particular copyrights, patents, trade-marks, trade-names, technological process, know-how and goodwill;

(e)

business concessions conferred by law or under contract permitted by law, including concessions to search for, cultivate, extract
or exploit natural resources.

Any change in the form in which assets are invested does not affect their character as investments.

2.

The term “investor” means,

(a)

natural persons who have the nationality of either Contracting Party in accordance with the laws of that Contracting Party;

(b)

economic entities, including companies, corporations, associations, partnerships and other organizations, incorporated and constituted
under the laws and regulations of either Contracting Party and have their seats in that Contracting Party, irrespective of whether
or not for profit and whether their liabilities are limited or not.

3.

The term “returns” means the amounts yielded from investments, including profits, dividends, interests, capital gains, royalties and
other legitimate income.

4.

For the purposes of this Agreement, the term “territory” means respectively:

– for the People’s Republic of China, the territory of the People’s Republic of China (including the territorial sea and air space
above it)as well as any area beyond its territorial sea within which the People’s Republic of China has sovereign rights of exploration
for and exploitation of resources of the seabed and its sub-soil and superjacent water resources in accordance with Chinese law and
international law;

– for the Kingdom of the Netherlands, the territory of the Kingdom of the Netherlands and any area adjacent to the territorial sea
which, under the laws applicable in the Kingdom of the Netherlands, and in accordance with international law, is the exclusive economic
zone or continental shelf of the Kingdom of the Netherlands, in which the Kingdom of the Netherlands exercises jurisdiction or sovereign
rights.

Article 2

PROMOTION AND ADMISSION OF INVESTMENTS

Each Contracting Party shall encourage investors of the other Contracting Party to make investments in its territory and admit such
investments in accordance with its laws and regulations.

Article 3

TREATMENT OF INVESTMENT

1.

Investments of investors of each Contracting Party shall all the time be accorded fair and equitable treatment in the territory of
the other Contracting Party. Investments of the investors of either Contracting Party shall enjoy the constant protection and security
in the territory of the other Contracting Party.

2.

Neither Contracting Party shall take any unreasonable or discriminatory measures against the management, maintenance, use, enjoyment
and disposal of the investments by the investors of the other Contracting Party.

3.

Each Contracting Party shall accord to investments and activities associated with such investments by the investors of the other Contracting
Party treatment no less favourable than that accorded to investments and activities by its own investors or investors of any third
State.

4.

Each Contracting Party shall observe any commitments it may have entered into with the investors of the other Contracting Party with
regard to their investments.

5.

If the provisions of law of either Contracting Party or obligations under international law existing at present or established hereafter
between the Contracting Parties in addition to the present Agreement contain a regulation, whether general or specific, entitling
investments by investors of the other Contracting Party to a treatment more favourable than is provided for the present Agreement,
such regulation shall, to the extent that it is more favourable, prevail over the present Agreement.

6.

The provisions of paragraphs 1 to 5 of this Article shall not be construed so as to oblige one Contracting Party to extend to the
investors of the other Contracting Party the benefit of any treatment, preference or privilege by virtue of:

(a)

agreements establishing customs unions, economic unions, monetary unions or similar institutions, or on the basis of interim agreements
leading to such unions or institutions:

(b)

any international agreement or international arrangement relating wholly or mainly to taxation;

(c)

any international agreement or arrangement for facilitating small scale investments in border areas.

Article 4

ENTRY AND SOJOURN OF PERSONNEL

Each Contracting Party shall, with in the framework of its legislation, give sympathetic consideration to application for visas and
working permits to investors of the other Contracting Party engaging in activities associated with investments made in the territory
of that Contracting Party.

Article 5

EXPROPRIATION

1.

Neither Contracting Party shall expropriate, nationalise or take other similar measures (hereinafter referred to as “expropriation”)
against the investments of the investors of the other Contracting Party in its territory, unless the following conditions are met:

a)the expropriation is done in the public interest and under domestic legal procedures;

b)the expropriation is not discriminatory or contrary to any undertaking which the Contracting Party, which takes such measures, may
have given;

c)the expropriation is done against compensation.

2.

The compensation referred to in paragraph 1 c) shall be equivalent to the fair market value of the expropriated investment immediately
before the expropriation measures were taken. The fair market value shall not reflect any change in value because the expropriation
had become publicly known earlier. It shall include interest at the prevailing commercial rate from the date the expropriation was
done until the date of payment and shall, in order to be effective for the affected investors, be paid and made transferable, without
delay to the country designated by the investor concerned and in the currency of the country of the affected investor, or in any
freely convertible currency accepted by the affected investor.

Article 6

COMPENSATION FOR DAMAGES AND LOSSES

Investors of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses owing to war, a
state of national emergency, insurrection, riot or other similar events in the territory of the latter Contracting Party, shall be
accorded by the latter Contracting Party treatment, as regards restitution, indemnification, compensation and other settlements no
less favourable than that accorded to the investors of its own or any third State, whichever is more favourable to the investor concerned.

Article 7

REPATRIATION OF INVESTMENTS AND RETURNS

1.

Each Contracting Party shall, guarantee to the investors of the other Contracting Party the transfer of their investments and returns
held in its territory, including though not exclusively:

(a)

profits, dividends, interests and other legitimate income;

(b)

proceeds obtained from the total or partial sale or liquidation of investments;

(c)

payments pursuant to a loan agreement in connection with investments;

(d)

royalties in relation to the matters in paragraph 1 (d) of Article1;

(e)

payments of technical assistance or technical service fee, management fee;

(f)

payments in connection with contracting projects;

(g)

earnings of investors of the other Contracting Party who work in connection with an investment in its territory.

2.

Nothing in paragraph 1 of this Article shall affect the free transfer of compensation paid under Article 5 and 6 of this Agreement.

3.

The transfer mentioned above shall be made in a freely convertible currency and at the prevailing market rate of exchange applicable
within the Contracting Party accepting the investments on the date of transfer.

Article 8

SUBROGATION

If one Contracting Party or its designated agency makes a payment to its investor under an indemnity given in respect of an investment
made in the territory of the other Contracting Party, the latter Contracting Party shall recognize the assignment of all the rights
and claims of the indemnified investor to the former Contracting Party or its designated agency, by law or by legal transactions,
and the right of the former Contracting Party or its designated agency to exercise by virtue of subrogation any such right to the
same extent as the investor.

Article 9

SETTLEMENT OF DISPUTES BETWEEN CONTRACTING PARTIES

1.

Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement shall, as far as possible,
be settled with consultation through diplomatic channel.

2.

If a dispute cannot thus be settled within six months, it shall, upon the request of either Contracting Party, be submitted to an
ad hoc arbitral tribunal.

3.

Such tribunal comprises of three arbitrators. Within two months of the receipt of the written notice requesting arbitration, each
Contracting Party shall appoint one arbitrator. Those two arbitrators shall, within a further two months, together select a national
of a third State having diplomatic relations with both Contracting Parties as Chairman of the arbitral tribunal.

4.

If the arbitral tribunal has not been constituted within four months from the receipt of the written notice requesting arbitration,
either Contracting party may, in the absence of any other agreement, invite the President of the International Court of Justice to
make any necessary appointments. If the President is a national of either Contracting Party or is otherwise prevented from discharging
the said functions, the Member of the International Court of Justice next in seniority who is not a national of either Contracting
Party, or is not prevented from discharging the said functions, shall be invited to make such necessary appointments.

5.

The arbitral tribunal shall determine its own procedure. The arbitral tribunal shall reach its award in accordance with the provisions
of this Agreement and the applicable principles of international law.

6.

The arbitral tribunal shall reach its award by a majority of votes. Such award shall be final and binding upon both Contracting Parties.
The arbitral tribunal shall, upon the request of either Contracting Party, explain the reasons of its award.

7.

Each Contracting Party shall bear the costs of its appointed arbitrator and of its representation in arbitral proceedings. The relevant
costs of the Chairman and tribunal shall be borne in equal parts by the Contracting Parties.

Article 10

SETTLEMENT OF DISPUTES BETWEEN AN INVESTOR AND A CONTRACTING PARTY

1.

Disputes which might arise between one of the Contracting Parties and an investor of the other Contracting Party concerning an investment
of that investor in the territory of the former Contracting Party shall, whenever possible, be settled amicably between the Parties
concerned.

2.

An investor may decide to submit a dispute to a competent domestic court. In case a legal dispute concerning an investment in the
territory of the People’s Republic of China has been submitted to a competent domestic court, this dispute may be submitted to international
dispute settlement, on the condition that the investor concerned has withdrawn its case from the domestic court. If a dispute concerns
an investment in the territory of the Kingdom of the Netherlands an investor may choose to submit a dispute to international dispute
settlement at any time.

3.

If the dispute has not been settled amicably within a period of six months, from the date either party to the dispute requested amicable
settlement, each Contracting Party gives its unconditional consent to submit the dispute at the request of the investor concerned
to:

(a)

the International Center for Settlement of Investment Disputes, for settlement by arbitration or conciliation under the Convention
on the Settlement of Investment Disputes between States and Nationals of Other States, opened for signature at Washington on 18 March
1963;or

(b)

an ad hoc arbitral tribunal, unless otherwise agreed upon by the parties to the dispute, to be established under the Arbitration Rules
of the United Nations Commission on International Trade Law (UNCITRAL)

4.

The ad hoc tribunal shall decide a dispute in accordance with such rules of law as may be agreed by the parties. In absence of such
agreement the tribunal shall apply the law of the Contracting Party to the dispute (including its rules on the conflict of laws),
the provisions of this Agreement and such rules of international law as may be applicable.

5.

The arbitral awards shall be final and binding on both parties to the dispute.

Article 11

CONSULTATIONS

Either Contracting Party may propose to the other Party that consultations be held on any matter concerning interpretation, application
and implementation of the Agreement. The other Party shall accord sympathetic consideration to the proposal and shall afford adequate
opportunity for such consultations.

Article 12

APPLICATION

This present Agreement shall also apply to investments which have been made prior to its entry into force by investors of the one
Contracting Party in the territory of the other Contracting Party in accordance with the laws and regulations of the Contracting
Party concerned, which were in force at the time the investment was made. The provisions of the present Agreement shall apply irrespective
of the existence of diplomatic or consular relations between the Contracting Parties.

Article 13

TRANSITION

1.

This Agreement substitutes and replaces the Agreement on reciprocal encouragement and protection of investments between the Government
of the People’s Republic of China and the Government of the Kingdom of the Netherlands, signed June 17th, 1985 in Hague.

2.

The present Agreement shall apply to all investments made by investors of either Contracting Party in the territory of the other Contracting
Party, whether made before or after the entry into force of this Agreement, but shall not apply to any dispute or any claim concerning
an investment which was already under judicial or arbitral process before its entry into force. Such disputes and claims shall continue
to be settled according to the provisions of the Agreement of 1985 mentioned in paragraph 1 of this Article.

Article 14

APPLICATION AND TERMINATION OF THE AGREEMENT CONCERNING THE KINGDOM OF THE NETHERLANDS

As regards the Kingdom of the Netherlands, the present Agreement shall apply to the part of the Kingdom of the Netherlands in Europe
and shall also apply to the Netherlands Antilles and to Aruba, unless the notification provided for in Article 15 , paragraph (1)
states otherwise.

Subject to the provisions of Article 15 , the Kingdom of the Netherlands shall be enpost_titled to terminate the application of the present
Agreement separately in respect of the Kingdom of the Netherlands in Europe, of the Netherlands Antilles and of Aruba.

Article 15

ENTRY INTO FORCE, DURATION AND TERMINATION

1.

This Agreement shall enter into force on the first day of the following month after the date on which both Contracting Parties have
notified each other in writing that their respective internal legal procedures necessary therefore have been fulfilled and remain
in force for a period of fifteen years.

2.

Unless notice of termination has been given by either Contracting Party at least six months before the date of the expiry of its validity,
the present Agreement shall be extended tacitly for periods of five years.

3.

With respect to investments made prior to the date of termination of this Agreement, the preceding provisions of Article 1 to 14
shall continue to be effective for a further period of fifteen years from such date of termination.

In Witness Whereof the undersigned, duly authorized thereto by their respective Governments, have signed this Agreement.

Done in two originals at BEIJING on 26 NOVEMBER 2001,in Chinese, Netherlands and English languages, all texts being equally authoritative.
In case of difference of interpretation the English text will prevail.

FOR THE￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿_￿FOR THE

GOVERNMENT OF￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿ GOVERNMENT OF

THE PEOPLE’S REPUBLIC OF￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿ THE KINGDOM OF

CHINA￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿THE NETHERLANDS

Protocol to the Agreement on encouragement and reciprocal protection of investments between the People’s Republic of China and the
Kingdom of the Netherlands

On the signing of the Agreement on encouragement and reciprocal protection of investments between the People’s Republic of China and
the Kingdom of the Netherlands, the undersigned representatives have agreed on the following provisions which constitute an integral
part of the Agreement:

Ad Article 1

The term “investments” mentioned in Article 1 (1) includes investments of legal persons of third State which are owned or controlled
by investors of one Contracting Party in accordance with the laws and regulations of the latter. The relevant provisions of this
Agreement shall apply to such investments only when such third State has no right or abandons the right to claim compensation after
the investments have been expropriated by the other Contracting Party.

The Agreement shall also apply to reinvestments made by investors of one Contracting Party in the territory of the other Contracting
Party and in accordance with the laws and regulations of that Party.

Ad Article 3 , paragraphs 2 and 3

In respect of the People’s Republic of China, paragraphs 2 and 3 of Article 3 do not apply to:

(a)

any existing non-conforming measures maintained within its territory;

(b)

the continuation of any non-conforming measure referred to in subparagraph a);

(c)

an amendment to any non-conforming measure referred to in subparagraph a) to the extent that the amendment does not increase the non-conformity
of the measure, as it existed immediately before the amendment, with those obligations.

It will be endeavored to progressively remove the non-conforming measures.

Ad Article 7

1.

With regard to the People’s Republic of China, the transfer referred to in Article 7 of this Agreement shall comply with relevant
formalities stipulated by the present Chinese laws and regulations relating to exchange control.

2.

In this respect the People’s Republic of China shall accord to the investors of the Kingdom of the Netherlands treatment not less
favourable than that accorded to the investors of any third State.

3.

These formalities shall not be used as a means of avoiding the Contracting Party’s commitments or obligations under this Agreement.

4.

The provisions of Article 7 of this Agreement shall not affect the rights and obligations with respect to exchange restrictions that
either Contracting Party has or may have as a member to the International Monetary Fund.

Ad Article 10

The Kingdom of the Netherlands takes note of the statement that the People’s Republic of China requires that the investor concerned
exhausts the domestic administrative review procedure specified by the laws and regulations of the People’s Republic of China, before
submission of the dispute to international arbitration under Article 10 , paragraph 3. The People’s Republic of China declares that
such a procedure will take a maximum period of three months.

FOR THE￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿FOR THE

GOVERNMENT OF￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿GOVERNMENT OF

THE PEOPLE’S REPUBLIC OF￿￿￿￿￿￿ ￿￿ ￿￿￿￿￿￿￿￿￿￿￿￿THE KINGDOM OF

CHINA￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿THE NETHERLANDS



 
The Government of the People’s Republic of China
2001-11-26

 






ANNOUNCEMENT OF THE STATE ADMINISTRATION FOR QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON THE CATALOG OF THE FIRST SET OF ABOLISHED DEPARTMENTAL REGULATIONS






The State Administration for Quality Supervision, Inspection and Quarantine

Order of the State Administration for Quality Supervision, Inspection and Quarantine

No.11

In order to accelerate the transformation of the government functions and improve the administrative level according to law, the State
Administration for Quality Supervision, Inspection and Quarantine has cleaned up the present departmental rules and is now issuing
the First Set of Abolished Departmental Regulations(4 pieces,see attachment) which are abolished at the same date of promulgation.

Director general of the State Administration for Quality Supervision, Inspection and Quarantine Li Changjiang

December 11,2001

Announcement of the State Administration for Quality Supervision, Inspection and Quarantine on the Catalog of the First Set of Abolished
Departmental Regulations htm/e02831.htmAppendix

￿￿

￿￿

Attachment:

Catalog of the State Administration for Quality Supervision, Inspection and Quarantine of the First Set of Abolished Departmental
Regulations

￿￿

Order number 

Name of the departmental regulation 

Promulgating departments 

Promulgation date 

Reason for abolishment

1 

Regulations on the License Administration of Export Mechanical and Electrical Products (for trial implementation) 

Former State Administration for Commodity Inspection, Former State Economic Commission, Office of Mechanical and Electrical
Product Export under the State Council 

Feb.20. 1986 

New regulations have been promulgated

2 

Measures for the Administration of Export Mechanical and Electrical Products and Accreditation of Inspection Laboratories Thereof 

Former State Administration for Commodity Inspection, Office of Mechanical and Electrical Product Export under the State Council 

May 21, 1987 

New regulations have been promulgated

3 

Measures for the Implementation of Accreditation of Export Mechanical and Electrical Product Inspection Laboratories 

Former State Administration for Commodity Inspection, Office of Mechanical and Electrical Product Export under the State Council 

May 25, 1987 

New regulations have been promulgated

4 

Opinions on Strengthening the International Accreditation of Mechanical and Electrical Product Export 

Former State Administration for Commodity Inspection, Office of Mechanical and Electrical Product Export under the State Council 

Feb.10, 1993 

New regulations have been promulgated



RULES FOR THE IMPLEMENTATION OF THE ADMINISTRATION OF IMPORT QUOTAS FOR MACHINERY AND ELECTRONIC PRODUCTS

e00514

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

Order of the Ministry of Foreign Trade and Economic Cooperation and the General Administration of Customs

No.23

The “Rules for the Implementation of the Administration of Import Quotas for Machinery and Electronic Products”, which were, in accordance
with the “Foreign Trade Law of the People’s Republic of China”, the “Regulations of the People’s Republic of China on the Administration
of Import and Export of Goods” and the “Measures on the Administration of Import of Machinery and Electronic Products”, discussed
and adopted at the 10th minister’s working meeting of the Ministry of Foreign Trade and Economic Cooperation in 2001, and which have
been consented by the General Administration of Customs with whom these Detailed Rules were negotiated, are hereby promulgated, and
shall come into force on January 1, 2002. The “Import Quota Attestations” issued by the Ministry of Foreign Trade and Economic Cooperation
before January 1, 2002 shall continue to be valid within the validity period, and shall be invalidated after the expiry as the validity
period shall not be extended.

Minister of the Ministry of Foreign Trade and Economic Cooperation: Shi Guangsheng

December 20, 2001

Rules for the Implementation of the Administration of Import Quotas for Machinery and Electronic Products

Article 1

These Detailed Rules are enacted in accordance with the “Regulations of the People’s Republic of China on the Administration of Import
and Export of Goods” and the “Measures on the Administration of Import of Machinery and Electronic Products” in order to regulate
the administration of the import quotas for machinery and electronic products.

Article 2

These Detailed Rules shall be applicable to the import by importing entities of machinery and electronic products under quotas inside
the customs territory of the People’s Republic of China.

Article 3

The Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China (hereinafter referred to as “the MOFTEC”)
shall be responsible for enacting, adjusting and promulgating jointly with the General Administration of Customs the catalogue of
import quotas for machinery and electronic products, as well as working out the annual plans on national import quotas for machinery
and electronic products and organizing the implementation.

Article 4

The MOFTEC shall, through electronic network system or by other means, carry out exchanges, checks and feedbacks of data with the
customs and other relevant administrative departments, and shall be responsible for inspecting and supervising the implementation
of the import quotas for the machinery and electronic products all over the country.

The institution in charge of foreign trade and economic cooperation of each province, autonomous region, municipality directly under
the Central Government, municipality separately listed on the State plan, coastal city open to the world and special economic zone,
as well as the office for the import and export of machinery and electronic products of each relevant department under the State
Council (hereinafter respectively referred to as “the local institution in charge of foreign trade and economic cooperation” and
“the departmental office of machinery and electronic products”), shall be responsible for inspecting and supervising the implementation
of the import quotas for the machinery and electronic products in its own area or department, and shall report the situation to the
MOFTEC.

Article 5

The MOFTEC shall, before July 31 of each year, promulgate the total quantity of the import quotas of the next year for the machinery
and electronic products all over the country.

The MOFTEC may, on the basis of its needs, adjust the total quantity of the annual quotas for machinery and electronic products, and
shall promulgate such adjustment 21 days before its enforcement.

Article 6

The qualifications and conditions for applying for import quotas for machinery and electronic products are as follows:

(1)

The entity applying for import shall have no such acts in violation of laws or regulations within the latest three years as evasion
of exchange, arbitrage of exchange, fraudulently obtaining tax refund for exports, smuggling, etc.;

(2)

The entity applying for import shall be enpost_titled to operate the products under the quotas in application;

(3)

The entity applying for import shall have the actual effective performance of importing and selling the products under the quotas
in application for a consecutive period of three years;

(4)

The entity applying for import shall have the capabilities of manufacture, sale, maintenance, provision of services and supply of
fittings, which are suitable for the quantity of the quotas in application;

(5)

The entity applying for import shall be in a good financial status;

(6)

Newly increased entities applying for import do not have to fulfill the conditions provided for in Item (3) of this Article;

(7)

An applicant who applies for import quotas for its own use does not have to fulfill the qualifications and conditions provided for
in Items (2), (3), (4) and (5) of this Article, provided that it shall submit a justifiable reason for application and appropriate
quantity of quotas in application.

Article 7

The time for applying for and distributing the import quotas is as follows:

(1)

The entity applying for import shall, during the period from August 1 to August 31 of each year, submit to the MOFTEC the application
for import quotas of the next year for machinery and electronic products, which shall not be accepted after the expiry;

(2)

The MOFTEC shall, before October 31 of each year, distribute the quotas, and issue the “Attestations on Import Quotas for Machinery
and Electronic Products” to the entities applying for import who have obtained the quotas.

Article 8

The time for re-distributing the import quotas is as follows:

(1)

The importing entities holding quotas shall, no later than September 1 of each year, return the quota licenses which cannot be used
up in the present year to the MOFTEC;

(2)

The MOFTEC shall, within 10 working days as of September 1 of each year, re-distribute the quotas stated in the returned quota licenses.

Article 9

The principles for distributing the import quotas are as follows:

(1)

To guarantee the needs in scientific research, education, culture, hygiene and other commonweal careers if the goods are imported
for the importer’s own use;

(2)

To give priority to considering the applications of the importing entities with strong capability of manufacture, sale and provision
of services;

(3)

To consider the actual effective performance of the entities applying for import in respect of the import of products under the quotas
in the latest three years;

(4)

To consider distributing a certain proportion of the total quantity of annual quotas to the newly increased entities applying for
import;

(5)

To properly increase the quantity of quotas of the next year upon request if the quotas of the last year have been used up; or

To deduct the quantity of quotas of the next year if the quotas of the last year have not been used up and the remaining quotas are
not returned within the provided time limit;

(6)

Some certain import quotas shall be distributed in a method of bidding, and the specific measures for administration shall be enacted
and promulgated by the MOFTEC.

Article 10

The procedures for applying for the “Attestation on Import Quotas for Machinery and Electronic Products” are as follows: An entity
applying for import shall, when importing machinery and electronic products subject to quota administration, truthfully fill out
the “Application Form for Import of Machinery and Electronic Products” in duplicate, and provide the application report and other
relevant documents, as well as go through the verification formalities in the relevant local institution in charge of foreign trade
and economic cooperation and the departmental office of machinery and electronic products. If no office of machinery and electronic
products is established in the department, the entity applying for import shall go through the verification formalities in the institution
in charge of foreign trade and economic cooperation located in the place of its industrial and commercial registration or legal person
registration.

Upon verification by the relevant local institution in charge of foreign trade and economic cooperation and the departmental office
of machinery and electronic products, an entity applying for import shall, within the provided time limit for applying for quotas,
apply for and obtain the “Attestation on Import Quotas for Machinery and Electronic Products” from the MOFTEC with the relevant documents
and the “Application Form for Import of Machinery and Electronic Products”.

Article 11

The importing entity shall apply for and obtain the “Import Quota License” with the “Attestation on Import Quotas for Machinery and
Electronic Products” issued by the MOFTEC. The validity period for the application and obtaining shall be the year when the “Attestation
on Import Quotas for Machinery and Electronic Products” is issued. Where the “Import Quota License” is not applied for or obtained
within the validity period, the “Attestation on Import Quotas for Machinery and Electronic Products” shall be invalidated.

Article 12

The “Attestation on Import Quotas for Machinery and Electronic Products” shall be in quintuplicate with five sheets. The first sheet
(blue, with anti-counterfeiting shading) shall be the document for applying for and obtaining the “Import Quota License”; the second
sheet (green, with white shading) shall be the document for order of goods; the third sheet (red, with anti-counterfeiting shading)
shall be the document kept in the customs for record; the fourth sheet (red, with white shading) shall be the banking document for
the purchase of and payment in foreign exchange; and the fifth sheet (black, with white shading) shall be kept in the quota administration
organ for file.

Article 13

Where, after obtaining the “Attestation on Import Quotas for Machinery and Electronic Products”, the importing entity needs to modify
any content in such items in the “Attestation on Import Quotas for Machinery and Electronic Products” as the importing entity, mode
of trade, uses of products, name, quantity or amount of products (with the range of change exceeding 10%) and performance of equipment,
etc. within the validity period due to a particular reason, it shall go through the formalities of modifying or changing the attestation
in the original organ which issued the attestation with the original “Attestation on Import Quotas for Machinery and Electronic Products”;
the original organ which issued the attestation shall take back the old attestation, and shall print the characters of “(change of
certificates)” in the remark column of the newly issued attestation. Where the amount of actually used exchange does not exceed 10
% of the planned amount, the “Attestation on Import Quotas for Machinery and Electronic Products” does not need to be modified, and
the importing entity shall not, when applying for and obtaining the “Import Quotas License” with the “Attestation on Import Quotas
for Machinery and Electronic Products”, modify any content in such items in the “Attestation on Import Quotas for Machinery and Electronic
Products” as the importing entity, mode of trade, uses of products, name, quantity or amount of products (with the range of change
exceeding 10%) and performance of equipment, etc..

Article 14

Where the “Attestation on Import Quotas for Machinery and Electronic Products” is lost, the importing entity shall immediately report
the loss to the original import quota administration organ, the original license administration organ and the customs at the port
of declaration. If no bad consequence occurs, the importing entity may apply to the MOFTEC for re-issuance.

Article 15

For any entity who concludes contracts with foreign parties before applying for the “Attestation on Import Quotas for Machinery and
Electronic Products” and the “Import Quotas License” in accordance with the provisions in these Detailed Rules, the MOFTEC shall
not re-issue the import quota attestation, and the customs and other administrative department shall deal with the matter in accordance
with the relevant laws and administrative regulations.

Article 16

These Detailed Rules shall also be applicable in any of the following circumstances:

(1)

The imported parts of the products under quotas constitute the feature of a whole machine;

(2)

The products under quotas are imported in processing trade for manufacturing products of domestic sale or for the importer’s own use;

(3)

The products under quotas are imported by enterprises with foreign investment for manufacturing products of domestic sale or for their
own use;

(4)

The products under quotas are imported in such modes of trade as leasing trade, compensation trade, etc.;

(5)

The products under quotas are imported in such manners as gratis aid, donation or present in economic exchanges, etc.;

(6)

The products under quotas, which are purchased outside the territory by Chinese institutions abroad or Chinese enterprises carrying
out construction projects outside the territory, need to be moved back to China for their own use;

(7)

Other circumstances separately provided for in laws and administrative regulations.

Article 17

These Detailed Rules shall not be applicable in any of the following circumstances:

(1)

The products imported in processing trade are re-exported;

(2)

The products under quotas are imported into China’s bonded zones or export processing zones for re-export;

(3)

The products under quotas are temporarily imported under the supervision and administration of the customs;

(4)

The products under quotas are imported by enterprises with foreign investment for investment or for their own use;

(5)

Other circumstances separately provided for in laws and administrative regulations.

Article 18

The power to interpret the present Detailed Rules shall remain with the MOFTEC. In case of any previous relevant provision inconsistent
with these Detailed Rules, these Detailed Rules shall prevail.

Article 19

These Detailed Rules shall enter into force on January 1, 2002.

 
The Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs
2001-12-20

 



OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON VALUE ADDED TAX RELATING TO REPAIR AND REPLACEMENT BUSINESS ACCEPTED FROM ABROAD BY ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Official Reply of the State Administration of Taxation on Value Added Tax Relating to Repair and Replacement Business Accepted from
Abroad by Enterprises with Foreign Investment

GuoShuiHan [2001] No.104

January 20, 2001

The Administration of State Taxation of Xiamen City:

“The Report for Requesting Instructions on Exemption of Value Added Tax relating to Repair and Replacement Business Accepted from
Abroad by Newly Established Enterprises with Foreign Investment” (XiaGuoShui [2000] No.40), as submitted by your Administration has
been received. According to your Report, enterprises with foreign investment established before January 1, 1994 are, in accordance
with relevant provisions of the Circular of the State Administration of Taxation on Taxation of Goods Exported by Enterprises with
Foreign Investment (GuoShuiFa [1999] No.189 ), exempted from value added tax on their incomes received from airplane repair and replacement
business accepted from abroad, and given refund of value added tax already levied on spare parts and materials; there are, however,
no definite provisions concerning taxation on similar business taken by enterprises with foreign investment that were established
after January 1, 1994. In this regard, this Reply is hereby made after due consideration as follows:

In accordance with the provisions of Article 2 of the “Interim Regulations of the People’s Republic of China on Value Added Tax,
“and Article 16 of the State Administration on Taxation’s” Measures for Tax Refund (Exemption) for Exported Goods” (GuoShuiFa [1994]
No.031 ), enterprises with foreign investment established after January 1, 1994 shall be exempted from value added tax on their incomes
from airplane repair and replacement business accepted from abroad and, according to the value added tax invoice and the applicable
rate of refund, given refund of tax paid when purchasing in China spare parts and materials needed for the repairs. Please carry
out these provisions completely.



 
The State Administration of Taxation
2001-01-20

 






CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE AND THE GENERAL ADMINISTRATION OF CUSTOMS ON LAUNCHING A PILOT PROJECT FOR NETWORK EXAMINING THE VERIFICATION OF EXPORT COLLECTION IN FOREIGN EXCHANGE BY ELECTRONIC SYSTEM FOR EXECUTING LAWS AT PORTS

The State Administration of Foreign Exchange, the General Administration of Customs

Circular of the State Administration of Foreign Exchange and the General Administration of Customs on Launching a Pilot Project for
Network Examining the Verification of Export Collection in Foreign Exchange by Electronic System for Executing Laws at Ports

Huifa [2001] No.7

January 22, 2001

Shanghai, Tianjin, and Guangzhou Branch of the State Administration of Foreign Exchange (hereinafter SAFE), Beijing Department of
the SAFE, Guangdong Branch of the General Administration of Customs (hereinafter GAC), and each Customs directly under GAC:

According to the written reply of the State Council to GAC and other 11 government departments on the Written Request on Relevant
Issues Concerning Setting up An Electronic System For Executing Laws At Ports (hereinafter ESELAP), and to the instructions of the
State Council Leaders on Speeding up the Establishment of ESELAP, ESELAP has been developed and tested. It was put into use experimentally
on December 15, 2000 in Beijing, and is planned to operate in Shanghai, Tianjing, and Zhuangzhou at the beginning of February 2001.

A sub-system of ESELAP named Export Collection in Foreign Exchange makes use of the advanced information technology, draws support
from the state telecommunication public network. The enterprise can apply for verification certificate of export collection in foreign
exchange (hereinafter Verification Certificate) by inter-net at any time. SAFE can issue Verification Certificates by inter-net,
set up a live nationwide electronic accounts Database of Verification Certificate in pubic data center, and provide electronic data
of Verification Certificates to the customs and departments collecting state taxes for customs declarations and drawbacks. Thus ESELAP
shall improve foreign exchange supervision by cross-checking electronic data, and prevent lawless persons from using forged, altered,
embezzled, or falsely used paper-made Verification Certificates for foreign exchange evasion, smuggling, and drawbacks.

To ensure smooth experimental operation of the System of Export Collection in Foreign Exchange (hereinafter SECFE), relevant issues
are circulated as follows:

1.

SECFE is a major project of the state to formalize foreign trade and financial order, and to ensure economic safety of the state.
It is also one of the sub-systems of ESELAP that go into experimental operation first. Branches of SAFE in pilot cities and every
customs in the whole country shall attach great importance to the experimental operation of SECFE. Leaders at each level shall personally
organize the work of propaganda, mobilization, and training in their own department, especially the work of implementation. SAFE
and the customs shall each take their own responsibility and cooperate each other closely in order to establish a clear and harmonious
inter-department working mechanism. SAFE shall issue Verification Certificates by inter-net seriously, and ensure the electronic
accounts data of Verification Certificates authentic and correct. Customs shall check the electronic accounts data of Verification
Certificates issued in pilot areas strictly, and stop all kinds of foreign exchange evasion by using forged, altered, embezzled,
and falsely used paper-made Verification Certificates.

2.

SAFE branches in pilot cities shall do following works strictly according to requirement:

(1)

Employing new version Verification Certificates. New Version Verification Certificate refers to one that is stamped with bar code
and special seal for network experiment in the column of term of validity. New version Verification Certificate needs not to be marked
with term of validity. It is regarded as long-term valid.

(2)

The amount of paper-made new version Verification Certificate issued by SAFE to the enterprise shall be the smaller one comparing
the amount applied for by inter-net with that confirmed by the local SECFE that the enterprise can acquire. SAFE shall simultaneously
input the electronic accounts data of Verification Certificate issued to the public data center.

(3)

SAFE shall no longer require the applicant on the spot fill out its name in or affix its name seal to paper-made new version Verification
Certificate. However, before officially using the new version Verification Certificate, the user shall fill out its name or affix
its name seal, and affix its official seal to it.

(4)

When conducting the procedure of verification of export collection in foreign exchange, SAFE shall examine paper-made new version
Verification Certificates, customs declaration form and its special copy for verifying export foreign exchange earnings collected,
check the data in electronic accounts of customs declaration form to see if they show no difference from those in paper-made customs
declaration form. If so, the verification procedure shall be conducted, and the data verified shall be input into the Public Data
Center timely.

(5)

If new version Verification Certificate has no electronic accounts data, or electronic accounts show difference from paper-made vouchers,
the SAFE branch who issued it shall accept the enterprise inquiry timely. The SAFE who accepts the inquiry shall resolve all of the
problems in 5 working days. If the difference is derived from wrong paper-made vouchers, mistakes shall be corrected with the vouchers,
if is from wrong electronic accounts data, the data shall be corrected or supplemented. SAFE shall ensure the accuracy of the paper-made
vouchers of new version Verification Certificate and electronic accounts data, as well as the consistence between them.

3.

Each customs in pilot cities shall do following works strictly according to requirement:

(1)

When conducting the procedure of customs declaration for the enterprise, customs shall adhere to the principle of one copy of Verification
Certificate, one copy of customs declaration form.

(2)

Before declaring exports to customs, the enterprise shall record the serial number of the new version Verification Certificate at
the same customs that it will declare to by inter-net in advance. The customs shall not accept unrecorded Verification Certificate.

(3)

Customs who check new version Verification Certificate by external network shall examine case by case the consistence (including the
serial number of the Verification Certificates, the name of enterprise, etc.) between paper-made Verification Certificate and electronic
accounts on the spot of export declaration. For Customs who check new version Verification Certificates automatically by internal
network, the computer shall automatically compare relevant contents (including the serial number of the Verification Certificate,
name code of the enterprise) between the customs declaration form and the electronic accounts data of new version Verification Certificate.
Examination shall be strengthened on the spot of export declaration to ensure voucher-to-voucher consistence, and voucher-to-electronic
data consistence of customs declaration form and new version Verification Certificate.

(4)

When conducting the procedure of customs clearance, customs shall write their opinion in the column of Check and Release by Customs,
and make a note of been used in electronic accounts data of new version Verification Certificates by computer or by hand.

(5)

In the case that goods are returned in full-amount, customs who check new version Verification Certificate by external network shall
delete the information of corresponding customs declaration form, and at the same time mark the electronic accounts data of new version
Verification Certificate with Goods Returned by hand. For customs who check new version Verification Certificate automatically by
internal network shall delete the information of corresponding customs declaration form, the computer shall at the same time automatically
mark the electronic accounts data of new version Verification Certificate with Goods Returned.

(6)

In the case that customs declaration form is returned because of being filled incorrectly, customs shall reinstate electronic accounts
data of corresponding new version Verification Certificate as Unused.

(7)

Customs shall ensure the accuracy of the paper-made vouchers of customs declaration form and electronic accounts data, as well as
the consistence between them. If customs declaration form has no electronic accounts data, or electronic accounts data show difference
from paper-made vouchers, the customs who issued it shall accept the enterprise inquiry timely. The customs that accept the inquiry
shall resolve all of the problems in 5 working days. If the difference is derived from wrong paper-made vouchers, mistakes shall
be corrected with the vouchers. If it is from wrong electronic data, the data shall be corrected or supplemented.

4.

Timetable for experimental operation of SECFE

(1)

As of February 8, 2001, export enterprises in Beijing shall apply for new version Verification Certificates by inter-net, and apply
for paper-made new version Verification Certificates with SAFE by presenting their IC card. New version Verification Certificate
shall begin to be employed as of February 18. Customs nationwide shall check the electronic accounts data of paper-made new version
Verification Certificates in Beijing by network as of February 18. Unused old version paper-made Verification Certificates of the
enterprise can not be used any longer as of the same day. All of them shall be returned to SAFE for being written off in 1 month.

(2)

As of March 15, 2001, every enterprise in Shanghai, Tianjin, and Guangzhou shall apply for new version Verification Certificates by
inter-net, and apply for paper-made new version Verification Certificates with SAFE by presenting its IC card. New version Verification
Certificate shall begin to be employed as of April 1, 2001. Customs nationwide shall check the electronic accounts data in these
cities by network when enterprises in these cities begin to use paper-made new version Verification Certificate for customs declaration.
Unused old version paper-made Verification Certificates of the enterprise can not be used any longer as of April 1. All of them shall
be returned to SAFE for being written off in 1 month.

(3)

SECFE is planned to operate nationwide as of June 1, 2001. Every enterprise, SAFE branch, and customs shall operate according to the
requirement of SECFE.

5.

An Announcement is distributed here as an attachment to you for smooth experimental operation of SECFE. Please make it pubic in relevant
media and put it up at the office spot of SAFE and customs according to the course of experimental operation.

If there is any problem during the implementation, please report to SAFE of GAC in time.

Hotline to SAFE: 010-68518956

Hotline to GAC: 010-65195656



 
The State Administration of Foreign Exchange, the General Administration of Customs
2001-01-22

 






INTERIM RULES OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION OF THE PEOPLE’S REPUBLIC OF CHINA ON THE HEARING OF INVESTIGATION ON SAFEGUARD MEASURES

The Ministry of Foreign Trade and Economic Cooperation

Order of the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China

No.11

The Interim Rules on the Hearing of Investigation on Safeguard Measures, examined and adopted at the executive meeting on February
10, 2002, are hereby promulgated, and shall come into force on March 13, 2002.

Minister of the Ministry of Foreign Trade and Economic Cooperation Shi Guangsheng

February 10, 2002

Interim Rules of the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China on the Hearing of Investigation
on Safeguard Measures

Article 1

These Rules are enacted in accordance with the relevant provisions in the Regulation of the People’s Republic of China on Safeguard
Measures in order to ensure the fairness and justness of the investigation on safeguard measures and maintain the lawful rights and
interests of the interested parties.

Article 2

These Rules shall be applicable to the hearings held by the Ministry of Foreign Trade and Economic Cooperation in the process of investigating
safeguard measures for the purpose of determining the increase of the quantity of imported products and the causality between such
increase and the damage thereof.

Article 3

The Import and Export Fair Trade Bureau of the Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as “the
Import and Export Fair Trade Bureau”) shall specifically organize the hearings as mentioned in these Rules.

Article 4

The hearings mentioned in these Rules shall be held publicly. While the hearings involving State secrets, commercial secrets or personal
privacy may be held in other ways upon the decision by the Import and Export Fair Trade Bureau.

Article 5

The Import and Export Fair Trade Bureau shall hold a hearing upon the application by an interested party. The Import and Export Fair
Trade Bureau may, when necessary, decide to hold a hearing of its own accord.

Article 6

Where the Import and Export Fair Trade Bureau holds a hearing of its own accord, it shall notify the interested parties in advance,
and shall apply the relevant provisions in these Rules.

Article 7

The interested parties referred to in these Rules shall be the applicants for investigation of safeguard measures, the governments
of the exporting countries (regions), the governments of the countries (regions) of origin, the known export operators and import
operators, and other interested organizations and individuals.

Article 8

An interested party requesting a hearing shall file a written application for such a request to the Import and Export Fair Trade Bureau.

The application shall include the following contents:

(1)

the name, address and relevant information of the applicant for the hearing;

(2)

the application items;

(3)

the reason for the application.

Article 9

The Import and Export Fair Trade Bureau shall, within 15 days after the receipt of the written application of an interested party
for a hearing, decide on whether to hold the hearing or not, and shall notify the relevant interested parties in time.

Article 10

The notice of the Import and Export Fair Trade Bureau on deciding to hold a hearing shall include the following contents:

(1)

the decision on holding the hearing;

(2)

the reason for the decision on holding the hearing;

(3)

the time, place and relevant requirements for each interested party to register before the hearing;

(4)

other matters relating to the hearing.

Article 11

Each interested party shall, after receiving the notice on deciding to hold a hearing, register himself/itself in the Import and Export
Fair Trade Bureau in time according to the contents and requirements in the notice, and shall submit a written outline of his/its
speaking in the hearing and the relevant evidence.

Article 12

The Import and Export Fair Trade Bureau shall, within 20 days as of the deadline for registration as determined in the notice on deciding
to hold the hearing, decide on the time, place, president and agenda of the hearing, and shall notify the interested parties registered.

Article 13

The president of the hearing shall exercise the following powers in the hearing:

(1)

to preside the hearing conference;

(2)

to confirm the identifications of the participants to the hearing;

(3)

to maintain the order of the hearing;

(4)

to raise questions to each interested party;

(5)

to decide on whether to permit each interested party to submit supplementary evidence and whether to invite the experts to appraise
the evidence brought forth;

(6)

to decide to suspend or terminate the hearing;

(7)

other matters needed to be decided on in the hearing.

Article 14

Each interested party of a hearing may either have its legal representative or principle responsible person participate the hearing,
or entrust 1 to 2 agents to participate the hearing.

Article 15

An interested party participating a hearing shall bear the following obligations:

(1)

to be present at the hearing on time and at the designated place;

(2)

to obey the hearing disciplines and the arrangements by the president of the hearing;

(3)

to truthfully answer the questions raised by the president of the hearing.

Article 16

A hearing shall be held according to the following procedures:

(1)

the president of the hearing announces the beginning of the hearing, and reads out the hearing disciplines;

(2)

the president of the hearing checks the participants;

(3)

the interested parties make their statements;

(4)

the president of the hearing enquires the interested parties;

(5)

the interested parties make their final statements;

(6)

the president announces the close of the hearing.

Article 17

The purpose of the hearing lies in providing opportunities for the investigation organ in further collecting information as well as
for each interested party in stating its opinions and in submitting its evidence, therefore, no debate procedure is set up.

Article 18

Records shall be made in the hearing, on which the president of the hearing, the recorder and each interested party participating
the hearing shall immediately sign their names or affix their seals. Where an interested party refuses to sign its name or affix
its seal, the president of the hearing shall clearly write down the relevant information on the records of the hearing.

Article 19

In case of any of the following circumstances, the Import and Export Fair Trade Bureau may decide to postpone or cancel the hearing:

(1)

the applicant for the hearing meets with events or acts of force majeure, and has submitted the written application for postponing
or canceling the hearing;

(2)

the investigation on safeguard measures is terminated;

(3)

other matters for which the hearing should be postponed or canceled.

Article 20

After the factors for postponing a hearing have been eliminated, the Import and Export Fair Trade Bureau shall immediately resume
the hearing, and shall notify the interested parties registered.

Article 21

The form of the notices mentioned in these Rules shall be the announcement by the Ministry of Foreign Trade and Economic Cooperation,
or other forms adopted by the Import and Export Fair Trade Bureau under particular circumstances.

Article 22

The working language used in hearings shall be Chinese.

Article 23

The Ministry of Foreign Trade and Economic Cooperation shall be responsible for the interpretation of these Rules.

Article 24

These Rules shall enter into force on March 13, 2002.



 
The Ministry of Foreign Trade and Economic Cooperation
2001-02-10

 






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CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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