ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF CUSTOMS ON THE ANNULMENT OF SOME REGULATORY DOCUMENTS FORMULATED BY THE GENERAL ADMINISTRATION OF CUSTOMS TO COORDINATE CHINA’S ACCESSION TO THE WTO

The General Administration of Customs

Announcement of the General Administration of Customs on the Annulment of Some Regulatory Documents Formulated by the General Administration
of Customs to Coordinate China’s Accession to the WTO

[2001] No.15

December 7, 2001

To coordinate China’s accession to the WTO and implement the overall planning of the State Council, the General Administration of
Customs conducted a review of the regulatory documents it formulated and decree that the following documents be nullified as of December
11, 2001:

Circular on the Principles for Approaching Specific Issues in Implementing the Preferential Taxation Policy for Imported Goods of
Enterprises with Foreign Investment (ShuShuiZi [1987] No.564) of the General Administration of Customs, the Ministry of Finance and
the Ministry of Foreign Trade and Economic Cooperation

Circular on the Interpretation of the Names of Commodities Controlled by Import and Export Licensing (JianYiHuoZi [88] No.125) of
the Department of Supervision No.1 of the General Administration of Customs and the Department of Foreign Trade Administration of
the Ministry of Foreign Trade and Economic Cooperation

Circular for Reiterating the Principles for Regulating Commodities Controlled by Import and Export Licensing and Defining the Range
of Some Commodities Controlled by Export Licensing (JianYiHuoZi [1990] No. 75) of the Department of Supervision No.1 of the General
Administration of Customs and the Department of Foreign Trade Administration of the Ministry of Foreign Trade and Economic Cooperation

Circular for the Promulgation of the Rules for the Implementation of the Interim Provisions on the Use of Preferential Taxation to
Promote the Nationalization of Automobiles (ShuShui [1992] No. 746) of the General Administration of Customs

Circular for the Implementation of Specific Implementing Provisions of the State Council on Taxation Policy Adjustment for Enterprises
with Foreign Investment (ShuShui [1996] No.237) of the General Administration of Customs and the Ministry of Foreign Trade and Economic
Cooperation

Circular of the General Administration of Customs for Issuing the Rules for the Implementation of the General Administration of Customs
of the People’s Republic of China on Preferential Tariffs and Duties for the Nationalization of Camcorders (ShuShui [1997] No.603)

It is hereby announced.

The General Administration of Customs
2001-12-07

TRUST LAW

Trust Law of the People’s Republic of China



	(Adopted at the 21st Meeting of the Standing Committee of the Ninth National People’s Congress on April 28, 2001 and promulgated by Order No. 50 of the President of the People’s Republic of China on April 28, 2001) Contents Chapter I General Provisions Chapter II Creation of a Trust Chapter III Trust Property Chapter IV The Parties Concerned in a Trust Section 1 The Settler Section 2 The Trustee Section 3 The Beneficiary Chapter V Modification in and Termination of a Trust Chapter VI The Charitable Trust Chapter VII Supplementary Provisions Chapter I General Provisions Article 1 This Law is enacted in order to regulate trust relationship, to standardize trust acts, to protect the lawful rights and interests of the parties involved in a trust, and to promote the healthy development of trust undertakings. Article 2 For purposes of this Law, trust refers to that the settler, based on his faith in trustee, entrusts his property rights to the trustee and allows the trustee to, according to the will of the settler and in the name of the trustee, administer or dispose of such property in the interest of a beneficiary or for any intended purposes. Article 3 This Law shall be applicable to the settlers, trustees, and beneficiaries (hereinafter collectively referred to as the “parties concerned”) that engage in civil, business or public welfare trust activities within the People’s Republic of China. Article 4 With regard to trustees that engage in trust activities in the form of trust institutions, the State Council shall formulate specific measures for the organization and administration of such institutions. Article 5 When carrying out trust activities, the parties concerned must obey laws and administrative regulations and observe the principles of voluntariness, fairness and good faith, and they may not impair the interests of the State and the public. Chapter II Creation of a Trust Article 6 A trust shall be created for lawful trust purposes. Article 7 To create a trust, there must be definite property under the trust, and such property must be the property lawfully owned by the settler. For purposes of this Law, the property includes the lawful property right. Article 8 The creation of a trust shall take the form of writing. The form of writing shall consist of trust contracts, testament, or other documents specified by laws and administrative regulations. Where a trust is created in the form of trust contract, the trust shall be deemed created when the said contract is signed. Where a trust is created in any other form of writing, the trust is deemed created when the trustee accepts the trust. Article 9 The following items shall be stated clearly in the written documents required for the creation of a trust: (1) purposes of the trust; (2) the names and addresses of the settler and trustee; (3) the beneficiary or beneficiaries; (4) the scope, types and status of the assets under trust; and (5) the form and means through which the beneficiary gains benefits from the trust. In addition to the items mentioned above, the period of the trust, the methods for the administration of the property under trust, remuneration payable to the trustee, manner for appointing another trustee, the cause for termination of the trust, etc. may be stated clearly. Article 10 Where laws or administrative regulations stipulate that registration formalities shall be gone through for the creation of a trust, such formalities shall be gone through accordingly. Anyone who fails to go through the registration formalities prescribed in the preceding paragraph shall go through the formalities as required; otherwise, the trust shall have no effect. Article 11 Under any one of the following circumstances the trust shall be invalid: (1) The purposes of the trust constitute a violation of laws or administrative regulations, or impair public interest. (2) The property under trust cannot be fixed; (3) The settler creates the trust with unlawful property or with property which, according to this law, may not be used for creating a trust; (4) The trust is created specially for the purpose of taking legal actions or for recovering debts; (5) The beneficiary or beneficiaries cannot be determined; and (6) Other circumstances stipulated in laws or administrative regulations. Article 12 Where a settler creates a trust to the detriment of the interest his creditors, the creditors shall have the right to apply to the People’s Court for revoking the trust. Where the People’s Court revokes the trust according to the provisions of the preceding paragraph, the benefits already derived from the trust by the bona tide trustee shall not be affected. The right of application prescribed in the first paragraph of this Article shall be terminated if it is not exercised within one year beginning from the date the creditor knows of or should know of the reasons for the revocation of the trust. Article 13 For the creation of a testamentary trust, the provisions in the Law of Succession concerning testamentary succession shall be observed. Where the person designated in a testament refuses or is unable to act as a trustee, the beneficiary shall appoint another person as the trustee; where the beneficiary is a person who has no civil capacity or limited capacity for civil conduct, his guardian shall appoint the trustee on his behalf. If there are other provisions in the testamentary instrument for governing the appointment of a trustee such provisions shall prevail. Chapter III Trust Property Article 14 The property obtained by the trustee due to a trust accepted is trust property. The property obtained by the trustee through administering, using or disposing of the trust property or by other means falls within trust assets. No property the circulation of which is prohibited by laws and administrative regulations may be deemed trust property. The property the circulation of which is restricted by laws and administrative regulations may be deemed trust property upon approval given, in accordance with law, by the competent department concerned. Article 15 The trust shall be differentiated from other property that is not put under trust by the settler. Where, after a trust is created, the settler dies or is dissolved or cancelled according to law, or is declared bankrupt, and the settler is the sole beneficiary, the trust shall be terminated, and the trust property shall be his legacy liquidation property; where the settler is not the sole beneficiary, the trust shall subsist, and the trust property shall not be his legacy or liquidation property; but if the settler is one of the co-beneficiaries and dies or is dissolved, or cancelled according to law, or is declared bankrupt, his right to benefit from the trust shall be deemed his legacy or liquidation property. Article 16 The trust property shall be segregated from the property owned by the trustee (hereinafter referred to as his “own property”, in short), and may not included in, or made part of his own property of the trustee. Where the trustee dies or the trustee as a body corporate is dissolved, removed or is declared bankrupt according to the law, and the trusteeship is thus terminated, the trust property shall not be deemed his legacy or liquidation property. Article 17 No compulsory measures may be taken against the trust property unless one the following circumstances arises: (1) where, before the creation of the trust, the creditors enjoyed the priority right to be paid with the trust property and may exercise this right according to law; (2) where the creditors demand repayment of the debts incurred by the trustee in the course of handling trust business; (3) where taxes are levied on the trust property itself; and (4) other circumstances prescribed by law. Where compulsory measures are taken against the trust property in violation of the provisions in the preceding paragraph, the settler, trustee and beneficiary shall have the right to raise their objections to the People’s Court. Article 18 The claims arising from the administration or disposition of trust assets by the trustee may not be used to offset the liabilities incurred by the trustee’s own property. The claims arising from the administration and disposition of the trust assets of different settlers may not be used to offset the liabilities incurred by the trustee likewise. Chapter IV The Parties Concerned in a Trust Section 1 The Settler Article 19 The settler shall be a natural person, a legal person, or an organization established in accordance with law, that has full capability for civil conduct. Article 20 The settler shall have the right to know the administration, use and disposition of, and the income and expenses relating to, his trust property, and the right to request the trustee to give explanations in this regard. The settler shall have the right to check, transcribe or duplicate the trust accounts related to his trust property and other documents drawn up in the course of dealing with trust business. Article 21 If, due to special reasons unexpected at the time the trust is created, the methods for administrating the trust property are not favorable to the realization of trust purposes or do not conform to the interests of the beneficiary, the settler shall have the right to ask the trustee to modify such methods. Article 22 Where the trustee disposes of the trust property in breach of the purposes of the trust, or causes losses to the trust property due to his departure from his administrative duties or improper handling of trust business, the settler shall have the right to apply to the People’s Court for annulling such disposition and the right to ask the trustee to restore the property to its former state or make compensation. Where a transferee of the said trust property accepts the property while knowing the violation of the purposes of the trust, he shall return the property or make compensation. Where the settler does not exercise the right of application prescribed in the preceding paragraph within one year beginning from the date he comes to know or should have known the reason for annulling the disposition, such right shall cease to exist. Article 23 Where the trustee disposes of the trust property against the purposes of the trust or commits gross negligence in administering, using or disposing of the trust property, the settler shall have the right to dismiss the trustee according to the provisions in the trust documents or apply to the People’s Court for dismissing him. Section 2 The Trustee Article 24 The trustee shall be a natural person or legal person who has full capability for civil conduct. Where there are other provisions governing qualifications of a trustee laid down in laws or administrative regulations, those provisions shall prevail. Article 25 The trustee shall abide by the provisions in the trust documents and handle trust business for the best interests of the beneficiary. In administering the trust property, the trustee shall be careful in performing his duties and fulfill his obligations with honesty, good faith, prudence and efficiency. Article 26 Except obtaining remuneration according to the provisions of this Law, the trustee may not seek interests for himself by using the trust property. Where the trustee, in violation of the provisions of the preceding paragraph, seeks interests for himself by using the trust property, the interests gained therefrom shall be integrated into the trust property. Article 27 The trustee may not convert the trust property into his own property. Where the trustee converts the trust property into his own property, he shall restore the trust property into its former state; where losses are caused to the trust property, he shall bear the responsibility to pay compensation. Article 28 The trustee may not conduct inter transaction between his own property and trust assets or between the trust assets of different settlers, unless it is otherwise stipulated in the trust documents or is consented by the settlers or beneficiary and the inter transaction is conducted at fair market price. Where the trustee, in violation of the provisions in the preceding paragraph, causes losses to the trust property, he shall bear the responsibility to pay compensation. Article 29 The trustee shall administer the trust property separately from his own property and keep separate accounting books, and he shall do the same with regard to the trust property of different settlers. Article 30 The trustee shall handle trust business himself, but may entrust another person to handle such affairs on his behalf where the trust documents provide otherwise or he has to do so for reasons beyond his control. Where the trustee, in accordance with law, entrusts another person to handle trust business on his behalf, he shall bear the responsibility for the acts committed by that person in handling such affairs. Article 31 Where there are two or more trustees in the same trust, they are co-trustees. The co-trustees shall handle trust business jointly, but where the trust documents stipulate that the trustees may separately handle certain specified affairs, such stipulations shall prevail. If the co-trustees disagree with each other when handling trust business jointly, the matter shall be dealt with in accordance with the provisions in the trust documents; where there are no provisions in this regard in the documents, the settler, beneficiary or the party interested shall make a decision. Article 32 The co-trustees who incur debts to a third party in the course of handling trust business shall bear joint and several responsibilities for clearing the debts. The intention expressed by the third party to any one of the co-trustees shall be equally effective to the other co-trustees. Where one of the co-trustees disposes of the trust property against the purposes of the trust or causes losses to the trust property due to his departure from his administrative duties or his improper handling of trust business, the other co-trustees shall bear joint and several responsibility for compensation. Article 33 The trustee shall keep complete records of the trust business handled. The trustee shall, at regular intervals every year, report to the settler and beneficiary on the administration and disposition of the trust property and the income and expenses relating to the property. The trustee shall, in accordance with law, have the obligation to keep confidential minutes relating to the settler, the beneficiary and trust business handled. Article 34 The trustee shall have the obligation to pay the beneficiary benefits from the trust with the limits of the trust property. Article 35 The trustee shall have the right to obtain remuneration as agreed in the trust documents. Where there is no such agreement in the documents, a supplementary agreement may be made with the consent given by the parties concerned after consultation; in the absence of a prior or supplementary agreement, no remuneration may be asked for. The agreed remuneration may, with the consent given by the parties concerned after consultation, be increased or decreased. Article 36 Where the trustee disposes of the trust property against the purposes of the trust or causes losses to the trust property due to his departure from his administrative duties or his improper handling of trust business, he may not ask to be paid before he restores the property to its former state or makes compensation. Article 37 The charges paid and the debts owed to a third party by the trustee in the course of handling trust business shall be borne by the trust property. Where the trustee effects such payment in advance with his own property, he shall have the priority right to be paid with the trust property. The debts owed to a third party or the losses suffered by himself as a result of his departure from his administrative duties or his improper handling of trust business shall be borne by him with his own property. Article 38 After the creation of a trust, with the consent of the settler and beneficiary, the trustee may resign. Where there are other provisions in this Law governing the resignation of the trustee of a public welfare trust, those provisions shall prevail. Where the trustee resigns, he shall, before another trustee is appointed, continue to perform the duties of administering the trust business. Article 39 Under one of the following circumstances, the trustee’s appointment shall be terminated: (1) he dies or is declared dead according to law; (2) he is declared to be a person with no or restricted capability for civil conduct; (3) his trusteeship is removed or he is declared bankrupt; (4) his trusteeship is dissolved in accordance with law or he forfeits his legal qualifications; (5) he resigns or is dismissed; or (6) other circumstances stipulated in laws or administrative regulations. When the trustee’s appointment is terminated, his successor, or the supervisor of heritage, guardian or liquidator shall keep the trust property, and help the new trustee to take over the trust business. Article 40 Where the trustee’s appointment is terminated, a new trustee shall be appointed according to the provisions in the trust documents; where there are no such provisions in the documents, the settler shall make the appointment; where the settler does not make the appointment or is incapable of doing so, the beneficiary shall designate one; where the beneficiary is a person with no or restricted capacity for civil conduct, his guardian shall, in accordance with law, make the appointment on his behalf. The new trustee shall take up the rights and obligations of the former trustee in the handling of trust business. Article 41 Where the trustee is found to be under one of the circumstances listed in subparagraphs 3 to 6 of the first paragraph Article 39 of this law and his appointment is thus terminated, he shall produce a report on the trust business handled and go through the formalities for the handing over of the trust property and affairs to the new trustee. Upon acceptance of the report, mentioned in the preceding paragraph, by the settler or beneficiary, the original trustee shall be exempted from the liability for issues listed in the report, except for the illegitimate acts committed by him. Article 42 Where the appointment of one of the co-trustees is terminated, the trust property shall be administered and disposed of by the rest of the trustees. Section 3 The Beneficiary Article 43 The beneficiary is the person that enjoys the right to benefit from a trust. He may be a natural person, legal person or an organization established according to law. The settler may be a beneficiary and may also be the only beneficiary under the same trust. The trustee may be a beneficiary but may not be the only beneficiary under the same trust. Article 44 The beneficiary shall enjoy the right to benefit from a trust beginning from the date the trust becomes effective, unless otherwise stipulated in the trust documents. Article 45 The co-beneficiaries shall enjoy the benefits from a trust according to the provisions in the trust documents. Where no percentage or methods for distribution of the benefits from the trust are specified in the documents, all the beneficiaries shall enjoy the benefits equally. Article 46 The beneficiary may give up the right to benefit from a trust. Where all the beneficiaries give up the right to benefit from a trust, the trust shall be terminated. Where some of the beneficiaries give up the right to benefit from a trust, the right given up shall go to the person in following order of precedence: (1) the persons specified in the trust documents; (2) the other beneficiaries; and (3) the settler or his successor. Article 47 Where the beneficiary cannot repay the matured debts, his right to benefit from a trust may be used to repay the debts, except this is restricted by provisions in laws, administrative regulations and trust documents. Article 48 The beneficiary may, in accordance with law, transfer his right to benefit from a trust or have the right succeeded to, except this is restricted by provisions in the trust documents. Article 49 The beneficiary may exercise the rights that the settler enjoys us as stipulated in Article 20 through 23 of this Law. If the beneficiary, while exercising the said rights, holds views differing from those of the settler, he may apply to the People’s Court for decision. Where the trustee commits the act listed in the first paragraph of Article 22 of this Law and one of the co-beneficiaries applies to the People’s Court for annulling the disposition of the trust property, the decision made by the People’s Court to such an effect shall be effective to all the co-beneficiaries. Chapter V Modification in and Termination of a Trust Article 50 Where the settler is the only beneficiary, he or his successor may revoke the trust. Where it is otherwise provided for in the trust documents, the provisions there shall prevail. Article 51 After a trust is created, the settler may replace the beneficiary or dispose of his right to benefit from the trust under one of the following circumstances: (1) the beneficiary commits a major tort against the settler; (2) the beneficiary commits a major tort against the other co-beneficiaries; (3) the change or disposition wins the consent of the beneficiary; and (4) other circumstances stipulated in the trust documents. Under one of the circumstances listed in subparagraphs (1), (3) and (4) in the preceding paragraph, the settler may revoke the trust. Article 52 A trust will not be terminated due to the facts that the settler or trustee dies, loses his capacity for civil conduct, the trusteeship is dissolved or canceled according to law or he is declared bankrupt, neither will it be terminated due to the fact that the trustee resigns, except it is otherwise stipulated in this Law or the trust documents. Article 53 Under one the following circumstances, a trust shall be terminated: (1) the cause for its termination specified in the trust documents arises; (2) the continuance of the trust goes against the purposes of the trust; (3) the purposes of the trust have been realized or cannot be realized; (4) the parties concerned, through consultation to terminate it; (5) the trust is cancelled; (6) the trust is revoked. Article 54 Where a trust is terminated, the trust property shall be owned by the person specified in the trust documents; where there are no such specifications in the documents, the following order of precedence shall be applied for determining the ownership: (1) the beneficiary or his successor; and (2) the settler or his successor. Article 55 After the ownership of the trust property is determined according to the provisions in the preceding Article, the trust shall be deemed subsisting while the trust assets are being transferred to the owner, and the owner shall be deemed the beneficiary. Article 56 Where a trust is determined, the People’s Court takes compulsory measures with regard to the original trust property according to the provisions of Article 17 of this Law, the owner shall be deemed the person against whom the measures are taken. Article 57 When, after a trust is terminated, the trustee, in accordance with the provisions of this Law, exercises the right to request for remuneration or to obtain compensation from the trust property, he may have a lien on the property or raise the request to the owner of the property. Article 58 Where a trust is terminated, the trustee shall make a liquidation report on the trust business handled. Where the beneficiary or the owner of the property has objections to the report, the trustee shall be exempted from the liability for issues listed in the report, except for the illegitimate acts committed by him. Chapter VI The Charitable Trust Article 59 The provisions in this Chapter are applicable to public welfare trusts where there are no provisions in this Chapter with regard to some matters, the provisions in this Law or other related laws shall be apply. Article 60 A trust created for one of the following purposes in the interest of public welfare is a public welfare trust: (1) relief for the poor; (2) relief assistance to people suffering from disasters; (3) helping the disabled; (4) developing education, science, technology, culture, art and sports; (5) developing medical and public health undertakings; (6) developing undertakings for the protection of the environment and maintaining ecological environment; and (7) developing other public welfare undertakings. Article 61 The State encourages the development of public welfare trusts. Article 62 A public welfare trust shall be created and its trustee shall be appointed with approval by relevant public welfare undertaking administration authority (hereinafter refer to as the “public welfare administration authority, in short”). Without approval by the public welfare administration authority, no one may carry out activities in the name of a public welfare trust. The public welfare administration authority shall support activities conducted by welfare trusts. Article 63 No property under a public welfare trust or the income from it may be used for non-public welfare purposes. Article 64 Trust supervisors shall be appointed for public welfare trusts. Trust supervisors shall be specified in the trust documents. Where there are no such specifications, they shall be designated by the public welfare administration authority. Article 65 The trust supervisor shall have the right, in his own name, to file a lawsuit or the other legal acts in the interests of the beneficiary. Article 66 No trustee of a public welfare trust may resign without the approval of the public welfare administration authority. Article 67 The public welfare administration authority shall inspect the trustee as to how he handles the public welfare affairs and disposes of the property. The trustee shall, at least once a year, makes a report on the trust business handled and the status of assets disposed of, and upon acceptance by the trust supervisor, the report shall be submitted to the public welfare administration authority for examination and approval, and the trustee shall announce the report. Article 68 Where the trustee for a public welfare trust goes against his obligations under the trust, or is unable to perform his duties, the public welfare administration authority shall replace the trustee. Article 69 If, after a public welfare trust is created, an event unforeseeable at the time of the creation of the trust occurs, the public welfare administration authority may, on the basis of the purposes of the trust, revise the related articles in the trust document. Article 70 Where a public welfare trust is terminated, the trustee shall, within 15 days from the date the cause for the termination arises, report to the public welfare administration authority the cause for its termination and the date the trust is terminated. Article 71 Where a public welfare trust is terminated, the trustee shall make a liquidation report on the trust business handled and, upon acceptance by the trust supervisor, submitted it to the public welfare administration authority for examination and approval, and the report shall be announced by the trustee. Article 72 Where, upon termination of a public welfare trust, there is no owner of the trust property, or such owner is not a specified member of the general public, the trustee shall, upon approval by the public welfare administration authority, use the trust property for purposes similar to the original ones, or transfer it to public welfare organizations or other public welfare trusts having similar purposes. Article 73 Where the public welfare administration authority violates the provisions of this Law, the settler, trustee and beneficiary shall have the right to file a lawsuit at the People’s Court. Chapter VII Supplementary Provisions Article 74 This Law shall go into effect as of October 1, 2001.

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON REITERATING THE PROVISIONS ON THE PROCEDURES FOR RATING THE CATEGORIZED MANAGEMENT OF ENTERPRISES

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

Circular of the General Administration of Customs and the Ministry of Foreign Trade and Economic Cooperation on Reiterating the Provisions
on the Procedures for Rating the Categorized Management of Enterprises

ShuJianFa [2001] No.325

August 13, 2001

Guangdong Branch, all customs offices directly under the GAC, the commissions (departments or bureaus) of foreign trade and economic
cooperation of all provinces, autonomous regions, municipalities directly under the Central Government and municipalities separately
listed on the State plan:

Ever since October 1999 when the categorized management of enterprises was carried out, relevant measures for management and standards
for categorized ratings have been incessantly improved and therefore better suited the development of the current state of affairs.
Practical experiences show that the implementation of the categorized management of enterprises has played a positive role in strengthening
the supervision of customs offices, encouraging the enterprises’ observation of laws and regulations and in establishing a standardized
and well-established order of import and export. However, in the categorized management of enterprises in the near past, it has been
complained in some places that there exists the problem of easy degradation and difficult promotion and there is the request for
loosening the standard for ratings. In order to promote the development of foreign trade and economic cooperation, according to the
instructions of the leaders of the State Council and to the decision of the inter-ministerial joint meeting of the MOFTEC, the standard
for rating the categorized management of enterprises has been readjusted and jointly publicized by GAC, MOFTEC, and the State Economic
and Trade Commission (SETC) (No. 5 of 2001) for implementation as of July 1, 2001. In order to better carry out the spirit of the
public notice No. 5 and do a better job in the rating of the categorized management of enterprises, the provisions on the procedures
for rating the categorized management of enterprises are reiterated as follows:

According to the provisions of Article 9 of the Circular of the GAC, MOFTEC and SETC Concerning Distributing the Measures of the
People’s Republic of China for the Customs’ Categorized Management of Enterprises (ShuJian [1999] No. 240) and the spirit as reflected
in chapter four of the Detailed Rules for the Implementation of the Measures of the People’s Republic of China for the Customs’ Categorized
Management of Enterprises, the customs’ categorized management of enterprises requests the support and assistance of the departments
like the commissions of foreign trade and economic cooperation, economic and trade commissions, taxation administrations, administrations
of foreign exchange, the Bank of China, etc, requests strengthening the connections and cooperation among them, listening to the
opinions and suggestions thereof and their concerted effort so as to do a good job in the categorized management of enterprises.
In the ratings of the categorized management of enterprises, the customs offices shall invite the above-mentioned departments to
attend the ratings meetings so as to supervise over the ratings. Particular attention should be paid to strengthening the assistance
and cooperation between the customs offices and the local departments of foreign trade and economic cooperation, the communication
of information so as to come to consensus through discussions.

In the process of concrete operations, the customs offices shall take an active and serious attitude so as to formulate systems. The
ratings of the categorized management, particularly the degradation of the enterprises of processing trade in Category A, the customs
offices shall solicit the opinions of the local departments of foreign trade and economic cooperation which are the department in
charge of processing trade and request their participation. The customs offices should treat the opinions of the relevant departments
carefully, being responsible for the enterprises and submit the opinions to the committee on categorized management of enterprises
for discussion and decision. The local departments of foreign trade and economic cooperation shall strengthen their follow-up administration
of the processing trade enterprises, learn in a timely manner the production and management of the enterprises and actively cooperate
with the customs in doing a good job in the categorized management of enterprises.

The General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation
2001-08-13

MEASURES OF THE STATE ENVIRONMENTAL PROTECTION ADMINISTRATION ON THE ADMINISTRATION OF ORGANIC FOOD CERTIFICATION

2001061920010619The State Environmental Protection AdministrationOrder of the State Environmental Protection AdministrationNo.10The Measures on the Administration of Organic Food Certification have been adopted at the bureau affairs meeting of State Environmental
Protection Administration held on April 27, 2001, and are hereby promulgated for implementation.Director General of State Environmental Protection Administration Xie ZhenhuaJune 19, 2001epdf/e01890.pdfMorganic foods, foods, food certificatione01890Measures of the State Environmental Protection Administration on the Administration of Organic Food CertificationChapter I General ProvisionsArticle 1 These Measures are formulated with a view to standardizing the administration of organic food certification, promoting the healthy
and orderly development of organic foods, preventing pollution and destruction of such chemical materials as pesticide and fertilizer,
etc. to the environment, guaranteeing the health of human body, and protecting the ecological environment.Article 2 Organic foods mentioned in these Measures mean the agricultural products and the products processed from them, which meet the following
conditions:(1)meeting the requirements of State standards on food hygiene and the technical specifications for organic foods;(2)not using such chemical materials as pesticide, fertilizer, growth hormone, chemical additive, chemical pigment and antiseptic, etc.
in the process of producing materials or processing products, and not using the genetic engineering technology;(3)having passed the certification of the organic foods certification institution provided in these Measures and using the mark of organic
foods.Article 3 These Measures shall apply to the entities and individuals engaged in organic food certification or production and operation of organic
foods within the territory of the People’s Republic of China.Chapter II Administration on Organic Food Certification InstitutionArticle 4 The State shall implement qualification examination on organic food certification institutions. An entity engaged in organic food
certification must, in accordance with the procedures provided in these Measures, apply to the Organic Food Ratification Committee
established by State Environmental Protection Administration for obtaining the qualification certificate for organic food certification
institution.Article 5 An entity applying for a qualification certificate for organic food certification institution shall meet the following requirements:(1)having an independent qualification as a legal person;(2)having 3 or more technicians with senior technical post_titles in relevant specialties and 5 or more technicians with intermediate technical
post_titles in relevant specialties, who are engaged in full-time organic food certification;(3)having funds, facilities, fixed working site and other relevant working conditions which the organic food certification requires.Article 6 An entity applying for the qualification certificate for organic food certification institution shall file the application to the
Organic Food Ratification Committee, and meanwhile submit the following documents:(1)attesting documents on the qualification as a legal person;(2)attesting documents on the qualifications of the full-time technicians;(3)attesting material on the organic food certification such as funds, facilities, fixed working site and other relevant working conditions;(4)other documents required by the Organic Food Ratification Committee.Article 7 The Organic Food Ratification Committee shall, within 20 days as of its receipt of the application documents, make a decision on whether
to accept the application or not, and notify the applying entity in writing. It shall state the reason if the application is not
accepted.Article 8 The Organic Food Ratification Committee shall complete the examination within 40 days as of its acceptance of the application.The Organic Food Ratification Committee shall issue the qualification certificate for organic food certification institution to the
entity that is examined and has met the qualification requirements.An entity may not be engaged in the organic food certification before obtaining the qualification certificate for organic food certification
institution.Article 9 The qualification certificates for organic food certification institution shall be made and issued by the Organic Food Ratification
Committee.No entity or individual shall forge, alter or transfer the qualification certificate for organic food certification institution.Article 10 An organic food certification institution shall comply with the following principles in organic food certification:(1)justness, fairness and independence;(2)making known the standards, procedures and results of certification;(3)maintaining clients’ technological and business secrets.Article 11 An organic food certification institution shall accept the supervision and inspection of the Organic Food Ratification Committee on
its certification.An organic food certification institution shall carry out regular inspections on the organic foods certified by itself.Article 12 An organic food certification institution shall, within 1 month after it issues the certificate of organic food certification, submit
a copy of the said certificate issued by itself to the Organic Food Ratification Committee for record.Different organic food certification institutions shall cooperate with each other, and share the information on certification.Article 13 An organic food certification institution shall submit an annual work report of the last year to the Organic Food Ratification Committee
by January 15 of each year, and shall accept the assessment in the annual inspection of the Organic Food Ratification Committee.Article 14 An organic food certification institution and its employees shall not be engaged in the non-gratuitous consultation or the production
and operation of organic foods.Article 15 An organic food certification institution shall carry out the organic food certification in compliance with the principles and procedures
provided in these Measures and the technical specifications provided by the Organic Food Ratification Committee, and shall not practice
frauds or deceive the clients.Chapter III Certification Administration of Organic Food Production and OperationArticle 16 An entity or individual engaged in the production or operation of organic foods must, in accordance with the provisions in this Chapter
and the type of the operation of organic food it plans to be engaged in, apply to the organic food certification institution for
the following types of organic food certifications, so as to obtain the corresponding certificate of organic food certifications:(1)certification on base production of organic foods;(2)certification on the processing of organic foods;(3)certification on the trading of organic foods.Article 17 An entity or individual applying for organic food certification shall file a written application for certification to the organic
food certification institution, and provide its/his business license or other qualification documents that can prove its/his lawful
operation.For an application for certification on base production of organic foods, a report on the quality of the base environment and other
relevant documents provided in the technical specifications on organic foods must be submitted in addition.For an application for certification on the processing of organic foods, the following documents must be submitted in addition: an
attestation proving the sources of processing materials to be organic foods, the executive standards for the products, the processing
technology (flow, procedures), the attestation issued by the administrative department for environmental protection at the city (region)
level or above that the processing enterprise’s pollution discharge is reasonable and below the limit permitted, and the other relevant
documents provided in the technical specifications on organic foods.For an application for certification on the trading of organic foods, an attestation proving the sources of the traded products to
be organic foods and the other relevant documents provided in the technical specifications on organic foods must be submitted in
addition.Article 18 An organic food certification institution shall, within 10 days after receiving the written application for certification and the
relevant documents, give its opinion on whether to accept the application or not, and shall state the reason if the application is
not accepted.Article 19 An organic food certification institution shall organize and complete the certification within 90 days as of the date when it agrees
to accept the application.If an entity or individual is certified to be qualified, the organic food certification institution shall issue to it/him the certificate
for base production of organic foods, the certificate for the processing of organic foods and the certificate for the trading of
organic foods (hereinafter referred to as the certificate of conformity of organic food certification in general) on the basis of
the application and the type of the organic food certifications.Article 20 The format of the certificate of conformity of organic food certification shall be uniformly stipulated by the Organic Food Ratification
Committee.The certificate of conformity of organic food certification must be used within the defined scope.No entity or individual shall forge, alter or transfer the certificate of conformity of organic food certification.Article 21 The validity period of a certificate of conformity of organic food certification shall be two years.Where an entity or individual producing or operating organic foods needs to continue using the certificate of conformity of organic
food certification after the validity period of the said certificate has expired, it/he must file a new application to the original
organic food certification institution within 1 month before the expiry of the validity period; the entity or individual who has
not obtained the re-certification for the organic foods in operation shall not continue using the certificate of conformity of organic
food certification.Article 22 The inspection and test on the samples of organic food certification shall be made by an inspection institution recognized by the
relevant department.The monitoring work on the quality of the base environment for organic foods shall be undertaken by the environmental monitoring station
affiliated to the administrative department for environmental protection at the city (region) level or above.Article 23 Where, within the validity period of the certificate of conformity of organic food certification, an entity or individual producing
or operating organic foods is under any of the following circumstances, it/he shall go through the modification formalities in the
organic food certification institution:(1)the entity or individual holding such a certificate has changed;(2)the type (specification) of the product has been changed;(3)the name of the product has been changed;(4)a new trademark is used;(5)the sources of processing materials for the organic foods or the sources of the traded products for the organic foods have been changed.Article 24 An entity or individual engaged in the production or operation of organic foods shall abide by the following provisions:(1)it/he shall accept the supervision and inspection of the organic food certification institution;(2)it/he shall, in case of any modification in the certified contents, report the modification to the organic food certification institution
and go through the formalities for the modification;(3)it/he shall keep the files for the operation and management system and files for the production, processing and trading of the organic
foods;(4)it/he must, when publicizing the organic foods, guarantee the authenticity of the publicized contents;(5)it/he shall hold post trainings for the employees engaged in the business of organic foods in its/his own entity.Article 25 An entity or individual who has obtained the certificate for base production of organic foods shall define the regional scope, mark
the location, set up a protection mark, and make an announcement in time.Chapter IV Administration on the Marks of Organic FoodsArticle 26 An entity or individual who has obtained the certificate of conformity of organic food certification may use the mark of organic foods
on the labels, packages, advertisements and guidebooks of the products provided in its/his certificate of conformity of organic food
certification.Article 27 The figure and pattern of the mark of organic foods shall be uniformly provided by the Organic Food Ratification Committee.When the mark of organic foods is used, it may be magnified or minified in equal proportion according to the needs, but its shape
or color shall not be changed.When the mark of organic foods is used, the number of the certificate of conformity of organic food certification for the product
shall be printed below the figure of the mark at the same time.Article 28 The mark of organic foods must be used within the defined scope.Article 29 No entity or individual shall forge, alter or transfer the mark of organic foods.Article 30 An entity or individual producing or operating organic foods must, when the organic foods are polluted or mixed up with inorganic
foods in the process of production, processing or sale, inform the original organic food certification institution of the situation
in time, cease using the mark of organic foods on such foods, and shall not produce, process or sell them as organic foods.Chapter V Penalty ProvisionsArticle 31 If an organic food certification institution commits any of the following acts in violation of these Measures, it shall be given a
warning by the Organic Food Ratification Committee, and be required to make a rectification within a time limit; where it fails to
meet the requirements within the said time limit, its qualification certificate for organic food certification institution shall
be canceled:(1)to forge, alter or transfer the qualification certificate for organic food certification institution in violation of Paragraph 2,
Article 9 of these Measures;(2)to be assessed unqualified in the annual inspection;(3)to be engaged in the non-gratuitous consultation or in the production and operation of organic foods in violation of Article 14 of
these Measures;(4)to practice frauds or deceive the clients in the process of certification in violation of Article 15 .Article 32 Where any certified organic foods do not meet the requirements on the standards or specifications in the certificate of conformity
of organic food certification, the original organic food certification institution shall temporarily withhold the said certificate
or revoke it according to the specific situation.Chapter VI Supplementary ProvisionsArticle 33 These Measures shall come into force as of the date of their promulgation. The Articles of Association on the Administration of the
Marks of Organic (Natural) Foods (for trial implementation) promulgated by the original State Environmental Protection Administration
in 1995 shall be repealed simultaneously.

The State Environmental Protection Administration
2001-06-19

LAW OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE ADMINISTRATION OF TAX COLLECTION

e00137

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.49

Adopted at the 27th meeting of the Standing Committee of the seventh National People’s Congress on September 4, 1992;

Amended in accordance with the Decisions on Amending the Law of the People’s Republic of China Concerning the Administration of Tax
Collection made at the 12th meeting of the Standing Committee of the seventh National People’s Congress on February 28, 1995;

Revised at the 21st meeting of the Standing Committee of the ninth National People’s Congress on April 28, 2001

The Law of the People’s Republic of China Concerning the Administration of Tax Collection, revised and adopted at the 21st meeting
of the Standing Committee of the ninth National People’s Congress of the People’s Republic of China on April 28, 2001, is hereby
promulgated and shall enter into force as of May 1, 2001.

President of the People’s Republic of China: Jiang Zemin

April 28, 2001

Law of the People’s Republic of China Concerning the Administration of Tax Collection

Chapter I General Provisions

Article 1

This law has been formulated with a view to strengthening the administration of tax collection, regulating tax collection and payment,
guaranteeing the tax revenue of the State, protecting the legitimate rights and interests of taxpayers and promoting economic and
social development.

Article 2

This Law shall apply to the administration of tax collection in respect of all taxes collected by tax authorities in accordance with
the law.

Article 3

The collection of tax or the cessation thereof, the reduction, exemption and refund of tax as well as the payment of tax dodged or
overdue shall be implemented in accordance with the law or, if the State Council is authorized by the law to formulate relevant provisions,
in accordance with the relevant provisions prescribed in administrative regulations formulated by the State Council. No governmental
organs, entities or individuals may be permitted to make without authorization, by violating laws or administrative regulations,
decisions regarding the collection of tax or the cessation thereof, the reduction, exemption or refund of tax, the payment of tax
dodged or overdue or decisions in conflict with other tax laws or administrative regulations.

Article 4

Entities or individuals obligated to pay taxes prescribed in the laws or administrative regulations are the taxpayers.

Entities or individuals obligated to withhold and remit taxes or collect and remit taxes prescribed in the laws or administrative
regulations are the withholding agents.

Taxpayers or withholding agents must pay taxes, or withhold and remit taxes or collect and remit taxes in accordance with the law
or the administrative regulations.

Article 5

The competent tax departments under the State Council shall be in charge of the administration of tax collection for the whole country.
All the national tax bureaus and local tax bureaus shall respectively administer the tax collection in accordance with the scopes
of administration of tax collection stipulated by the State Council. The local people’s government at each level shall strengthen
its leadership or coordination in the administration of tax collection within its jurisdiction, support the tax authorities in performance
of the duties in accordance with the law, and in the computation of the tax amount by national tariff, and the collection of taxes
in accordance with the law. The various departments and entities concerned shall support and assist the tax authorities in the performance
of the duties in accordance with the law.

No entities or individuals shall impede the tax authorities from performing duties in accordance with the law.

Article 6

The State shall systematically furnish the tax authorities at all levels with modern information technologies, strengthen the modernization
of the information system on the administration of tax collection, establish and amplify the information communion system between
tax authorities and other governmental administrative authorities.

Taxpayers, withholding agents and other relevant entities shall, in accordance with relevant provisions of the State, truthfully provide
the tax authorities with information related to tax payment and taxes withheld and remitted or collected and remitted.

Article 7

Tax authorities shall extensively disseminate tax laws and administrative regulations, the knowledge of tax payment, and gratuitously
provide taxpayers with consulting services on tax payment.

Article 8

Taxpayers and withholding agents shall have the right to inquire of the tax authorities about the tax laws and administrative regulations
of the State as well as the information related to tax payment procedures.

Taxpayers and withholding agents shall have the right to require the tax authorities to maintain confidentiality for the information
of the taxpayers and withholding agents. The tax authorities shall maintain confidentiality for the information of the taxpayers
and withholding agents in accordance with the law.

Taxpayers shall, in accordance with the law, have the rights to apply for the reduction, exemption and refund of tax.

Taxpayers and withholding agents shall have the right to statement and the right of defense to the decisions made by tax authorities;
and shall have the rights to apply for administrative reconsideration, institute administrative litigation, ask for State compensation,
etc. in accordance with the law.

Taxpayers and withholding agents shall have the right to bring charges against or make exposure of any tax authority or tax official
for violation of laws or disciplines.

Article 9

Tax authorities shall make the effort to make their officials qualified and efficient for their duties.

Tax authorities and tax officials must enforce the law impartially and devote themselves to their duties, be clean and honest, treat
people politely, provide services courteously, respect the taxpayers and withholding agents and protect the rights of them, and accept
supervisions in accordance with the law.

Tax officials shall not extort or take bribes, commit fraudulence for selfish purposes, neglect their duties, or fail to collect or
under collect the taxes payable; nor shall they abuse their powers to over collect taxes or deliberately make difficulties for taxpayers
and withholding agents.

Article 10

The tax authorities at all levels shall establish and amplify the administrative system of interior restriction and supervision.

The tax authorities at the upper levels shall supervise the enforcement of the law of the tax authorities at the lower levels in accordance
with the law.

The tax authority at each level shall supervise and inspect its officials on the enforcement of laws and administrative regulations
as well as their adherence to the principle of honesty and self-discipline.

Article 11

The duties of the officials in a tax authority who are respectively responsible for collection, administration, check and administrative
reconsideration shall be clearly defined, and the rights and functions of the said officials shall be separated from each other and
checked.

Article 12

Where any tax official has a personal interest with the taxpayer or withholding agent or in the case in violation of tax laws, when
collecting taxes or investigating and disposing of a case in violation of tax laws, he shall withdraw.

Article 13

Any entity or individual shall have the right to make exposures of any acts committed in violation of the law or the administrative
regulations. The authorities who receive such exposures or who are in charge of investigation and disposition shall keep the secret
for the informers. The tax authorities shall grant the informers rewards in accordance with the relevant provisions.

Article 14

The “tax authorities” in this Law means the tax bureaus at all levels, their sub- bureaus, tax stations and tax institutions which
are established in accordance with the provisions of the State Council and announced to the society.

Chapter II Tax Administration

Section 1 Tax Registration

Article 15

Any of the enterprises, branches in other localities established by such enterprises, sites engaged in production or business operations,
individual businesses as well as institutions engaged in production or business operations (hereinafter referred to as “taxpayers
engaged in production or business operations” in general) shall, within 30 days after the receipt of the business license, apply
for the tax registration with the tax authority by producing the relevant documents. The tax authority shall, within 30 days as of
the receipt of such report, examine and verify the relevant documents, and issue tax registration certificates.

The administrative authorities for industry and commerce shall regularly inform tax authorities of the registration and issuance of
business licenses.

The scope of and methods for tax registration by taxpayers and for tax withholding registration formalities by withholding agents
other than those as prescribed in Paragraph 1 of this Article shall be stipulated by the State Council.

Article 16

Where a change occurs in the contents of tax registration of a taxpayer engaged in production or business operations, the taxpayer
concerned shall, within 30 days as of the date of completing the formalities for such change in registration with the administrative
authority for industry and commerce or prior to the application for cancellation of registration to the administrative authority
for industry and commerce, apply for and complete the formalities for the change or cancellation of tax registration with the tax
authority by producing the relevant documents.

Article 17

A taxpayer engaged in production or business operations shall, in accordance with relevant provisions of the State, open a basic deposit
account and other deposit accounts in a bank or other financial institution by producing the tax registration certificates, and shall
report all his account numbers to the tax authority.

The bank or other financial institution shall record the numbers of the tax registration certificates in the accounts of the taxpayer
engaged in production or business operations, and shall record the account numbers of the said taxpayer in the tax registration certificates.

When a tax authority is inquiring about the opening of account of a taxpayer engaged in production or business operations in accordance
with the law, relevant banks and other financial institutions shall provide their assistance.

Article 18

Taxpayers shall use tax registration certificates in accordance with the provisions formulated by the competent tax departments under
the State Council. The tax registration certificates shall not be lent, altered, damaged, traded or forged.

Section 2 Administration of Accounting Books and Supporting Vouchers

Article 19

Taxpayers or withholding agents shall establish accounting books in accordance with relevant laws and administrative regulations,
the provisions formulated by the fiscal or tax department under the State Council, keep accounts based on legitimate and valid vouchers
and conduct accounting.

Article 20

The financial and accounting systems or methods and the accounting software of a taxpayer engaged in production or business operations
shall be submitted to the tax authority for records.

Where the financial and accounting systems or methods of a taxpayer or a withholding agent are in conflict with the relevant tax provisions
formulated by the State Council or the fiscal or tax departments under the State Council, the calculation of the tax payable as well
as the tax withheld and remitted or collected and remitted shall be made in accordance with the relevant tax provisions formulated
by the State Council or the fiscal or tax departments under the State Council.

Article 21

A tax authority is the authority in charge of invoices, and is responsible for the administration and supervision of the printing,
purchase, issuance, acquirement, maintenance, cancellation of invoices.

A entity or individual shall, when purchasing or selling commodities, providing or accepting operational services, and being engaged
in other operational activities, issue, use and acquire invoices in accordance with relevant provisions.

The measures on the administration of invoices shall be formulated by the State Council.

Article 22

Special VAT invoices shall be printed by enterprises designated by the competent tax departments under the State Council; other invoices
shall be printed by enterprises designated by the tax departments of the people’s governments of the provinces, autonomous regions
and municipalities directly under the Central Government in accordance with the provisions made by the competent tax departments
under the State Council.

No enterprises are permitted to print invoices without authorization by the competent tax departments prescribed in the preceding
paragraph.

Article 23

The State may, based on the needs on the administration of tax collection, actively extend and apply tax-control facilities. Taxpayers
shall install and use the tax-control facilities in accordance with the provisions, and shall not damage the tax-control facilities
or alter them without authorization.

Article 24

Taxpayers or withholding agents engaged in production or business operations must maintain accounting books, supporting vouchers for
the accounts, tax payment receipts and other relevant information within the period prescribed by the fiscal or tax departments under
the State Council. Accounting books, supporting vouchers for the accounts, tax payment receipts and other relevant information shall
not be forged, revised or damaged without authorization.

Section 3 Filing Tax Returns

Article 25

Taxpayers must, in accordance with the laws and administrative regulations, and in keeping with the time limit and contents for filing
tax returns determined by the tax authorities in accordance with the provisions in laws and the administrative regulations, truthfully
file tax returns, submit tax return statements, financial and accounting statements as well as other information on tax payment required
by the tax authorities based on practical needs.

Withholding agents must, in accordance with the laws and administrative regulations, or the time limit and contents for filing tax
returns determined by the tax authorities in accordance with the provisions in laws and the administrative regulations, truthfully
submit reporting schedules on taxes withheld and remitted or collected and remitted as well as other relevant information required
by the tax authorities based on practical needs.

Article 26

Taxpayers and withholding agents may directly file tax returns or submit reporting schedules on the taxes withheld and remitted or
collected and remitted in tax authorities directly or by post, data telegram or by other means in accordance with relevant provisions.

Article 27

Where a taxpayer or withholding agent is unable to file tax returns or to submit reporting schedules on the taxes withheld and remitted
or collected and remitted within a prescribed time limit, the filing of the tax returns or the submission of the reporting schedules
may be postponed upon check and approval by the tax authority,.

Where the filing of the tax returns or submission of the reporting schedules prescribed in the preceding paragraph is postponed upon
check and approval, the taxes shall be prepaid within the period of tax payment in accordance with the amount of taxes actually paid
in the last period or assessed by the tax authority, and the tax settlement shall be handled within the postponed period upon check
and approval.

Chapter III Tax Collection

Article 28

The tax authorities shall collect taxes in accordance with the laws and administrative regulations. They shall not collect, cease
to collect, over collect, under collect, collect in advance, postpone the collection of or apportion taxes in violation of the laws
or administrative regulations.

The amount of agricultural taxes payable shall be assessed in accordance with the laws and administrative regulations.

Article 29

Except for tax authorities, tax officials and the entities and personnel entrusted by tax authorities in accordance with the law or
the administrative regulations, no entity or individual may collect taxes.

Article 30

Withholding agents shall fulfill their obligations of withholding or collecting taxes in accordance with the laws and administrative
regulations. The tax authorities shall not impose any tax withholding or collection requirements on the entities or individuals who
are not obligated to withhold or collect tax in accordance with the law or the administrative regulations.

When a withholding agent is withholding or collecting taxes in accordance with the law, the taxpayer shall not refuse to pay taxes.
If the taxpayer refuses to pay taxes, the withholding agent shall promptly report the case to the tax authority for disposition.

The tax authorities shall, in accordance with the relevant provisions, pay a handling fee to withholding agents for withholding or
collecting taxes.

Article 31

A taxpayer or withholding agent shall pay or remit taxes within the time limit prescribed in the laws or administrative regulations,
or determined by the tax authority in accordance with the laws and administrative regulations.

Where a taxpayer is unable to pay taxes within a prescribed time limit because of special difficulties, he may, upon approval of the
State tax bureau or local tax bureau of a province, autonomous region, municipality directly under the Central Government, defer
the tax payment for a period of not more than three months.

Article 32

Where a taxpayer fails to pay taxes or a withholding agent fails to remit taxes within a prescribed time limit, the tax authority
shall, in addition to ordering the taxpayer or withholding agent to pay or remit the taxes within the prescribed time limit, impose
a late fee at the rate of 0.05% per day of the amount of taxes in arrears, on the day the tax payment is overdue.

Article 33

A taxpayer may submit a written application for tax reduction or exemption to the tax authority in accordance with the laws and administrative
regulations.

Applications for tax reduction or exemption shall be examined and approved by the authorities designated for examination and approval
of tax reduction or exemption as prescribed in the laws or administrative regulations. The decisions on tax reduction or exemption
made by the people’s governments at all local levels, the competent departments of the people’s governments at all levels, entities
or individuals without authorization and in violation of the laws or administrative regulations shall be null and void. The tax authorities
shall not execute such decisions, and shall report to the tax authorities at the upper level.

Article 34

When a tax authority collects taxes, it must issue tax payment receipts to the taxpayers. A withholding agent shall, when withholding
or collecting taxes, issue tax withholding or collection vouchers if the taxpayer so requires.

Article 35

Where a taxpayer is in any of the following circumstances, the tax authority shall have the right to assess the amount of taxes payable
by the taxpayer:

(1)

accounting books are not required necessarily to be established in accordance with the laws and administrative regulations;

(2)

accounting books are required by the laws and administrative regulations to be established but have not been established;

(3)

a taxpayer destroys accounting books without authorization or refuses to provide information on tax payment;

(4)

although accounting books have been established, the accounting entries have not been entered in an appropriate manner or the information
on costs, receipt vouchers and expense vouchers are incomplete, causing difficulties in conducting an audit;

(5)

a taxpayer who is obligated to pay taxes fails to go through tax filing procedures within a prescribed time limit and, after having
been ordered by the tax authority to file tax returns within a prescribed time limit, still fails to file the tax returns within
the prescribed time limit;

(6)

the taxation basis filed by a taxpayer is obviously much lower, and without reasonable ground.

Specific procedures and methods for tax authorities to assess the amount of taxes payable shall be stipulated by the competent tax
departments under the State Council.

Article 36

The receipt or payment of charges or fees in business transactions between an enterprise (or institution or site engaged in production
or business operations) established in China by a foreign enterprise and its associated enterprises, shall be made at arm’s length
prices. Where the receipt or payment of charges or fees is not made at arm’s length prices and results in a reduction of the taxable
income, the tax authorities shall have the right to make reasonable adjustments.

Article 37

Tax authority shall assess the amount of taxes payable by a taxpayer engaged in production or business operations who does not apply
for tax registration in accordance with relevant provisions or by a taxpayer temporarily engaged in business operations, and shall
order them to pay taxes. Where the said taxpayer refuses to pay taxes, the tax authority may distrain his commodities or goods, the
value of which shall be equivalent to the amount of taxes payable. Where the amount of taxes payable is paid after the goods or commodities
have been distrained, the tax authority must immediately release the distrainment and return the distrained commodities or goods
to the entity or individual. Where the amount of taxes payable is still not paid after the distrainment, the commodities or goods
which have been distrained may, upon approval of the commissioner of a tax bureau (or a sub-bureau thereof) at the county level or
above, be sold by auction or sold off in accordance with the law, the proceeds from the commodities or goods sold by auction or sold
off may be used to make good the amount of taxes payable.

Article 38

Where a tax authority has grounds for deeming that a taxpayer engaged in production or business operations has any act of evading
tax payment obligations, the tax authority may, prior to the prescribed date of the tax payment, order the taxpayer to pay the taxes
payable within a prescribed time limit. In the event that the tax authority discovers there is obvious evidence that the taxpayer
has transferred or concealed its taxable commodities, goods and other properties, or taxable income within the prescribed time limit,
the tax authority may order the taxpayer to provide a guaranty for tax payment. If the taxpayer is unable to provide a guaranty for
tax payment, the tax authority may, upon approval of the commissioner of a tax bureau (or a sub-bureau thereof) at the county level
or above, adopt the following preservative measures of taxation:

(1)

notify in writing the banks or other financial institutions with which the taxpayer has opened an account to freeze the taxpayer’s
deposits of an amount equivalent to the amount of taxes payable temporarily;

(2)

distrain or seal up the taxpayer’s taxable commodities, goods or other properties, the value of which is equivalent to the amount
of taxes payable.

If the taxpayer makes the tax payment within the time limit as prescribed in the preceding paragraph, the tax authority must immediately
release the preservative measures of taxation. If the taxpayer fails to make the tax payment at the expiration of the time limit,
the tax authority may, upon approval of the commissioner of a tax bureau (or a sub-bureau thereof) at the county level or above,
notify in writing the bank or other financial institution with which the taxpayer has opened an account to withhold and remit the
amount of tax from the taxpayer’s deposits which have been frozen, or sell by auction or sell off in accordance with law the commodities,
goods or properties which have been distrained and use the proceeds from the commodities, goods or properties sold by auction or
sold off to make good the amount of taxes payable.

The necessary lodgings and articles of an individual and his dependent family members to make a living shall not be within the scope
of the preservative measures of taxation.

Article 39

Where a taxpayer has made the tax payment within the time limit, but the tax authority fails to immediately release the preservative
measures of taxation, thus causing losses to the legitimate rights and benefits of the taxpayer, the tax authority shall bear compensation
liabilities.

Article 40

Where a taxpayer engaged in production or business operations or a withholding agent fails to pay or remit taxes, or a tax payment
guarantor fails to pay the guaranteed amount of taxes within the prescribed time limit, the tax authority shall order him to pay
the taxes within a specified time limit. If they fail to pay the taxes within the specified time limit, the tax authority may, upon
approval of the commissioner of a tax bureau (or a sub-bureau thereof) at the county level or above, adopt the following mandatory
enforcement measures:

(1)

notify in writing the bank or other financial institution with which the taxpayer, withholding agent or tax payment guarantor has
opened an account to withhold and remit the amount of taxes from its deposits;

(2)

distrain, seal up or sell by auction or sell off in accordance with the law the commodities, goods, or other properties of the taxpayer,
withholding agent or tax payment guarantor, the value of which shall be equivalent to the amount of taxes payable, and to use the
proceeds from the commodities, goods or properties sold by auction or sold off to make good the amount of taxes payable.

At the time when the tax authority is adopting the mandatory measures, it shall adopt the relevant mandatory measures to collect the
late fee which has not been paid by the taxpayer, withholding agent or tax payment guarantor.

The necessary lodgings and articles of an individual and his dependent family members to make a living shall not be within the scope
of the mandatory enforcement measures.

Article 41

The power to adopt the preservative measures of taxation or mandatory enforcement measures prescribed in Article 37 , 38 and 40 shall
not be exercised by any entity or individual other than the statutory tax authorities.

Article 42

Any of the tax authorities must adopt preservative measures of taxation or mandatory enforcement measures according to the legal authority
and the legal proceedings, and shall not seal up or distrain the necessary lodgings or articles of a taxpayer himself and his dependent
family members to make a living.

Article 43

Where a tax authority abuses its powers and illegally adopts preservative measures of taxation or mandatory enforcement measures,
or improperly adopts preservative measures of taxation or mandatory enforcement measures, thus causing losses to the legitimate rights
and interests of a taxpayer, a withholding agent or a tax payment guarantor, it shall bear compensation liabilities in accordance
with the law.

Article 44

Where a taxpayer or his legal representative who has not paid the amount of taxes payable needs to leave China, he shall pay the taxes
payable and the late fee or provide a guaranty to the tax authority before leaving the country. If the taxpayer neither pays the
taxes payable and the late fee nor provides a guaranty, the tax authority may notify the exit authority to stop the taxpayer from
leaving the country.

Article 45

When a tax authority is collecting taxes, the taxation shall have precedence over unsecured credits unless otherwise prescribed in
the law; if the event which a taxpayer has not paid the amount of tax payable happens before the taxpayer mortgages or pledges his
properties or before the taxpayer’s properties are retained, the taxation shall be prior to the right of mortgage, the right of pledge
and the lien.

Where a taxpayer has not paid the amount of taxes payable, and meanwhile he is imposed on a fine or confiscation of illegal proceeds
upon the decision by an administrative authority, the taxation shall have precedence over the fine and the confiscation of illegal
proceeds.

Tax authorities shall regularly announce the circumstances of the unpaid amount of taxes payable by taxpayers.

Article 46

Where a taxpayer has not paid the taxes payable but mortgages or pledges his properties, he shall state the fact of not paying the
taxes payable to the mortgagee or the pledgee. The mortgagee or the pledgee may request the tax authority to provide relevant information
on the taxpayer’s not paying the taxes payable.

Article 47

When distraining commodities, goods or other properties, the tax authority must issue a receipt for the distrained items. When sealing
up commodities, goods or other properties, the tax authority must write out a list of these items.

Article 48

Where a taxpayer has the circumstance of merger or division, he shall report to the tax authority, and make a full payment of taxes
in accordance with the law. Where the taxpayer fails to make a full payment of taxes at the time of its merger, the merged taxpayer
shall continue to perform the unfinished tax payment obligations; where the taxpayer fails to make a full payment of taxes at the
time of its division, the divided taxpayers shall bear joint liabilities for the unfinished tax payment obligations.

Article 49

A taxpayer who has not paid a large amount of taxes payable shall report to the tax authority before he disposes of his immovable
properties or large amount of assets.

Article 50

Where a taxpayer who has not paid the taxes payable causes any loss to the State taxation due to his idleness in exercising his mature
credits, or waiving his mature credits, or gratuitously transferring his properties, or transferring his properties at an obviously
unreasonable low price but the transferee knows the fact, the tax authority may exercise its rights of subrogation and rescission
in accordance with the provisions in Article 73 , 74 of the Contract Law.

Where the tax authority exercises its rights of subrogation and rescission in accordance with the preceding paragraph, the taxpayer
who has not paid the taxes payable shall not be released from his tax payment obligations unperformed and the legal liabilities he
shall bear.

Article 51

Once the tax authority finds that a taxpayer has paid an amount of taxes in excess of the taxes payable, the authority shall immediately
refund the excess amount to the taxpayer. Where a taxpayer discovers that he has paid an amount of taxes in excess of the taxes payable
within three years from the date the tax payment has been made, he may claim a refund of the excess amount of taxes from the tax
authority plus the bank deposit interest of the time period. Upon examination and verification of the case, the tax authority shall
immediately refund the excess amount of taxes. Where refund from the State treasury is involved, the excess amount of taxes shall
be refunded in accordance with relevant laws and administrative regulations on the administration of the State treasury.

Article 52

Where a taxpayer or withholding agent fails to pay taxes or underpay taxes due to the fault of the tax authority, the tax authority
may, within three years, require the taxpayer or withholding agent to pay the taxes in arrears, but they shall not impose any late
fee.

Where a

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON CHINESE-FOREIGN EQUITY JOINT VENTURES

The National People’s Congress

Order of the President of the People’s Republic of China

No. 48

The Decision of the National People’s Congress concerning revising for the Law of the People’s Republic of China on Chinese-Foreign
Equity Joint Venture adopted by the Fourth Session of the Ninth National People’s Congress on March 15, 2001 are hereby promulgated
and shall come into force as of the day of promulgation.

President of the People’s Republic of China, Jiang Zemin

March 15, 2001

Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures

Article 1

With a view to expanding international economic co-operation and technical exchange, the People’s Republic of China permits foreign
companies, enterprises, other economic organizations or individuals (hereafter referred to as “foreign joint ventures”) to joint
with Chinese companies, enterprise or other economic organizations (hereafter referred to as “Chinese joint ventures”) in establishing
joint ventures in the People’s Republic of China in accordance with the principle of equality and mutual benefit and subject to approval
by the Chinese Government.

Article 2

The Chinese Government protects, in accordance with the law, the investment of foreign joint ventures, the profits due to them and
their other lawful rights and interest in a joint venture, pursuant to the agreement, contract and articles of association approved
by the Chinese Government.

Joint ventures shall follow the provisions of the laws and regulations of the People’s Republic of China in all their activities.

The state does not practice nationalization and expropriation of a joint venture; under special circumstances, the state, in accordance
with the needs of social public interest, expropriates a joint venture pursuant to legal procedures and offers corresponding compensations.

Article 3

The joint venture agreement, contract and articles of association signed by the parties to the venture shall be submitted to the competent
authorities of foreign economic relations and trade (hereafter referred to as approval authorities), and the approval authorities
shall, within three months, decide whether to approve or disapprove them. After approval, the joint venture shall register with the
state competent authorities of administration for industry and commerce to obtain a license to do business and start operations.

Article 4

A joint venture shall take the form of a limited liability company.

The proportion of the investment contributed by the foreign joint venture (s) shall generally not be less than 25% of the registered
capital of a joint venture.

The parties to the venture shall share the profits, risks and losses in proportion to their respective contributions to the registered
capital.

No assignment of the registered capital of a joint venture shall be made without the consent of the other parties to the venture.

Article 5

Each party to a joint venture may make its investment in cash, in kind or in industrial property rights, etc.

The technology and the equipment that serve as a foreign joint ventures investment must be advanced technology and equipment that
actually suit our country’s needs. If the foreign joint venture causes losses by deception through the intentional use of backward
technology and equipment, it shall pay compensation for the losses.

The investment of a Chinese joint venture may include the right to the use of a site provided for the joint venture during the period
of its operation. If the right to the use of the site does not constitute a part of a Chinese joint ventures investment, the joint
venture shall pay the Chinese Government a fee for its use.

The various investments referred to above shall be specified in the joint venture contract and articles of association, and the value
of each (excluding that of the site) shall be jointly assessed by the parties to the venture.

Article 6

A joint venture shall have a board of directors, which shall have its size and composition stipulated in the contract and the articles
of association after consultation between the parties to the venture, and the directors shall be appointed and replaced by the parties
to the venture. The Chairman and the vice-chairman are determined by the parties to the venture or elected by the board of directors.
Either party of the Chinese-foreign joint ventures may be the chairman and the other shall assume the office of vice-chairman. In
handling major problems, the board of directors shall reach a decision through consultation by the parties to the venture, in accordance
with the principle of equality and mutual benefit.

The board of directors is empowered, pursuant to the provisions of the articles of association of the joint venture, to discuss and
decide all major problems of the venture: expansion programmes, proposals for production and operating activities, the budget for
revenues and expenditures, distribution of profits, plans concerning manpower and pay scales, the termination of business and the
appointment or employment of the president, the vice-president(s), the chief engineer, the treasurer and the auditors, as well as
their powers and terms of employment, etc.

The offices of president and vice-president(s) (or factory manager and deputy manager(s) shall be assumed by the respective parties
to the venture.

Contracts shall be entered into in accordance with the law to prescribe the recruitment, dismissal, remuneration, welfare, labor protection,
labor insurance, etc..

Article 7

The staff employees of the joint venture may establish trade unions in accordance with the law, carry out the activities of the trade
union and defend the lawful rights and interests of the employees.

Joint ventures shall provide necessary conditions for the activities of the trade unions thereof.

Article 8

After payment, pursuant to the provisions of the tax laws of the People’s Republic of China, of the joint venture income tax on the
gross profit earned by the joint venture and after deduction from the gross profit of a reserve fund, a bonus and welfare fund for
staff and workers, and a venture expansion fund, as provided in the articles of association of the joint venture, the net profit
shall be distributed to the parties to the joint venture in proportion to their respective contributions to the registered capital.

A joint venture may enjoy the preferential treatment of reduction of or exemption from tax pursuant to relevant state taxation laws
or administrative decrees.

A foreign joint venture that reinvests in China its share of the net profit may apply for refund of a part of the income taxes already
paid.

Article 9

A joint venture shall, with its business license, open a foreign exchange account at the banks or other financial organizations approved
by the state foreign exchange control administrative organs to handle foreign exchange business.

The pertinent foreign exchange transactions of a joint venture shall be conducted in accordance with the regulations on foreign exchange
control of the People’s Republic of China.

In its operating activities a joint venture may directly raise funds from foreign banks.

All insurances of joint ventures shall be procured at the insurance companies within the territory of the People’s Republic of China.

Article 10

The Joint venture may purchase the materials such as raw materials, fuels, etc. as needed within the approved scope of business either
on the domestic or international market according to the principle of fairness and reasonableness.

A joint venture is encouraged to market its products outside China. Export products may be distributed to foreign markets through
the joint venture directly or through associated agencies, and they may also be distributed through China’s foreign trade agencies.
Products of the joint venture may also be distributed in the Chinese market.

Whenever necessary, a joint venture may establish branches outside China.

Article 11

The net profit that a foreign joint venture receives after fulfilling its obligations under the laws and the agreement and the contract,
the funds it receives at the time of the joint venture’s scheduled expiration or early termination, and its other funds may be remitted
abroad in accordance with the foreign exchange regulations and in the currency specified in the joint venture contract.

A foreign joint venture shall be encouraged to deposit in the Bank of China foreign exchange that it is enpost_titled to remit abroad.

Article 12

The wages, salaries and other legitimate income earned by the foreign staff and workers of a joint venture, after payment of the individual
income tax under the tax laws of the People’s Republic of China, may be remitted abroad in accordance with the foreign exchange regulations.

Article 13

The contract period of a joint venture may be decided differently according to its particular line of business and circumstance. The
joint ventures of some trades should decided the contract period; and other may or may not decide the contract period. A joint venture
that has set a contract period should, if the parties to the joint venture agree to extend the contract period, apply to the approval
authorities six months ahead of the expiration of the contract period. The latter should make the decision of approval or disapproval
within one month as of the date of application.

Article 14

In case of heavy losses, failure of a party to fulfill the obligations prescribed by the contract and the articles of association,
force majeure, etc, the contract may be terminated through consultation and agreement by the parties to the venture, subject to approval
by the approval authorities and to registration with the state competent authorities of administration for industry and commerce.
In cases of losses caused by a breach of contract, the financial responsibility shall be borne by the party that has violated the
contract.

Article 15

Disputes arising between the parties to a joint venture that the board of directors cannot settle through consultation may be settled
through mediation or arbitration by a Chinese arbitration agency or through arbitration by another arbitration agency agreed upon
by the parties to the venture.

Where no arbitration clauses have been included in the joint venture contract or no written arbitration agreement have been reached
after a dispute arises, any party may bring a suit with the people’s court.

Article 16

This Law shall come into force on the date of its promulgation.

The National People’s Congress
2001-03-15

ANNOUNCEMENT OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, THE GENERAL ADMINISTRATION OF CUSTOMS AND THE STATE ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON ANNOUNCING THE CATALOGUE OF COMMODITIES PROHIBITED FROM IMPORT (THE 2ND BATCH)

Announcement of the Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs and the State Administration
of Quality Supervision, Inspection and Quarantine on Announcing the Catalogue of Commodities Prohibited from Import (the 2nd batch)

[2001] No.37
December 1, 2001

Under the Regulations of the People’s Republic of China on the Administration of the Import and Export of Goods and Decree No. 10,
[2001] of the Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs and the State Administration
of Quality Supervision, Inspection and Quarantine of the People’s Republic of China, the Catalogue of Commodities Prohibited from
Import (the 2nd batch) is hereby promulgated and shall come into effect as of January 1, 2002.

Attachment

Attachment:

Catalogue of Commodities Prohibited from Import (2nd batch)

Catalogue of Old Mechanical and Electrical Products Prohibited From Import

No.

Commodity Code

Commodity Name

73110010

Steel Containers for Compressed or Liquefied Gas

73110090

Other Steel Containers for Compressed or Liquefied Gas

73211100

Home Cooking Range that may Use Gaseous Fuel

73218100

Other Home Appliances that may Use Gaseous Fuel

76130090

Aluminium Containers for Compressed or Liquefied Gas (Not for Retail Sales)

84021110

Boilers for Power Generation with Evaporation Capacity of 900 Tons/Hour or More

84021190

Other Water-Tube Boilers with Evaporation Capacity above 45 Tons/Hour

84021200

Water-Tube Boilers with Evaporation Capacity Not More Than 45 Tons/Hour

84021900

Other Steam Boilers, including Composite Boilers

84022000

Overheating Water Boilers

84031010

Home Water Boilers

84031090

Other Water Boilers for Central Heating

84041010

Auxiliary Equipments for Steam Boilers and Overheating Water Boilers

84041020

Auxiliary Equipments for Central Heating Boilers

84042000

Condensers with Water Vapor or Other Steam Power Plants

84161000

Stove Burners that Uses Liquid Fuel

84162011

Stove Burners that Uses Natural Gas

84162019

Stove Burners that Uses Other Gaseous Fuel

84162090

Stove Burners that Uses Powdery Solid Fuel

84163000

Mechanical Stokers and its Mechanical Fire Grates and Mechanical Ash Discharging Devices, etc.

84171000

Stoves and Ovens for Heat Treatment Such as Roasting and Melting of Metal Ore or Metal

84178010

Coking Ovens

84178020

Incinerators for Radioactive Wastes

84178090

Unnamed Non-electrothermal Industrial or Laboratory Furnaces and Ovens

85209000

Unnamed Tape Recorders and Other Sound Recording Apparatuses

85219090

Unnamed Apparatuses for Video Signal Recording or Replaying

90181100

ECG Recorders

90181210

B Type Supersonic Diagnostic Sets

90181291

Color Supersonic Diagnostic Sets

90181299

Unnamed Supersonic Scanning Devices

90181300

MRI Devices

90181400

Scintigraphic apparatus

90181930

Patient Monitors

90181990

Unnamed Electric Diagnosis Devices

90182000

Ultraviolet Ray and Infrared Ray Devices

90183100

Injectors, Whether with Pinhead or Not

90183210

Pipy Metal Pinheads

90183220

Suture Needles

90183900

Other Needles, Vessels, intubattons and the Similarities

90184100

Dental Drills, Which May Be Assembled with Other Dental Equipments at the Same Base

90184910

Dentistry Chairs Equipped with Dental Equipments

90184990

Unnamed Dentistry Apparatuses and Instruments

90185000

Other Eye Apparatuses and Instruments

90189010

Stethoscopes

90189020

Apparatuses and Instruments for Blood Pressure Measurement

90189030

Endoscopes

90189040

Kidney Dialysis Equipments (Artificial Kidneys)

90189050

Diathermy Equipments

90189060

Blood Transfusion Apparatuses

90189070

Anaesthesia Apparatuses

90189090

Other Apparatuses and Instruments for Medical Treatment, Surgery or Veterinary

90221200

X-ray Computed Tomography Apparatus

90221300

Other Dentistry X-ray Applicat

REGISTRATION MEASURES OF MOTOR VEHICLES IN THE PEOPLE’S REPUBLIC OF CHINA (DECREE NO. 56)

MEASURES FOR THE INVITATION OF BID FOR EXPORT COMMODITY QUOTAS

The Ministry of Foreign Trade and Economic Cooperation

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

No.11

The Measures for the Invitation of Bid for Export Commodity Quotas which is enacted according to the Foreign Trade Law of the People’s
Republic of China and the Regulation of the People’s Republic of China on the Administration of the Import and Export of Goods has
been passed at the ninth executive meeting of the ministers of the Ministry of Foreign Trade and Economic Cooperation of the year
2001 and is hereby promulgated for implementation as of January 1, 2002.

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

October 20, 2001

Measures for the Invitation of Bid for Export Commodity Quotas

Chapter I General Provisions

Article 1

The present Measures have been formulated according to the Foreign Trade Law of the People’s Republic of China and the Regulation
of the People’s Republic of China on the Administration of the Import and Export of Goods for the purpose of perfecting the administrative
system of export commodity quotas, establishing a mechanism of fair competition, safeguarding the overall interests of the state
and the lawful rights and interests of the export enterprises and maintaining the normal order of foreign trade activities.

Article 2

An invitation for bid may be carried out for the export of commodities subject to the administration of quotas. The export enterprises
onerously obtains uses the export commodity quotas as determined by the state by independently submitting a bid for competition.

Article 3

The Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as “MOFTEC”) is in charge of the uniform administration
of the invitation for bid for the export commodity quotas and is responsible for determining and publicizing the types of commodities
as well as the total amount of commodities subject to the invitation for bids.

Article 4

The principles of “efficiency, impartiality, openness and fair competition” shall be followed in the invitation for bid for the quotas
of export commodities.

Article 5

The present Measures shall be applicable to the commodities subject to the invitation for bid which are to be exported to the global
markets in all kinds of trade methods, including the export by way of general trade, processing with imported materials, processing
materials supplied by customers, barter trade, border trade, compensation trade, etc. and the commodities subject to the invitation
for bid which result from the contracting of projects and labor services export, however, with the exception of those for which there
are otherwise provisions by the State Council.

Article 6

The principles for determining the commodities subject to the invitation for bid are:

bulk resources commodities that are not renewable;

the commodities that occupy a leading position in the international market and the prices of which are not easily affected by the
volume of export;

the commodities that are in oversupply, in relatively dispersed management and are liable to dumping at low prices and thus causing
antidumping litigations of foreign countries.

the commodities that are subject to the administration of export quotas as prescribed in the multi-lateral and bilateral agreements
as concluded between China and those countries that has set limits for the commodities.

Chapter II Administrative Organs for the Invitation for Bids

Article 7

The MOFTEC is responsible for the leadership and supervision of invitations for bids via the Committee for the Invitation for Bid
for Export Commodity Quotas (hereinafter referred to as “CIBECQ”) which is directly responsible to the MOFTEC. The CIBECQ consists
of the leaders of the MOFTEC and the members from relevant departments and bureaus under the MOFTEC.

Article 8

The CIBECQ has the following functions and duties:

determining, according to the different circumstances, the times of invitations for bids for specific commodities, the quantity of
quota for each invitation for bid, the way of invitation for bid and the proportion of each way of invitation for bid within the
total invitations for bids;

examining the plans for the invitations for bids for the export commodity quotas, taking charge of the opening and appraisals of bids,
and examining the result of bid-winning of the invitations for bid for quotas;

releasing all kinds of notices, public announcements and decisions, etc concerning the invitations for bids for quotas;

accepting the quotas submitted by the office of invitation for bids and the record-keeping of the transfer of quotas;

inspecting the collection of the caution money for winning bids and bid-winning money as well as the use of the quotas;

checking and ratifying the list of enterprises for tendering bids according to the qualifications for the tendering of bids.

The department in-charge under the MOFTEC shall be responsible for the routine work of the CIBECQ.

Article 9

The CIBECQ shall set up offices for the invitation for bid for export commodity quotas (hereinafter referred to as “OIB”) within the
relevant chambers of commerce for import and export according to the types of commodities subject to the invitation for bid.

The OIBs shall be responsible for the specific work of implementing the invitations for bids. The OIBs shall consist of representatives
from the relevant chambers of commerce for import and export, the China Society of Enterprises with Foreign Investment and other
relevant departments for the coordination among different industries and shall be responsible to the CIBECQ.

The relevant chambers of commerce for import and export shall be responsible for the routine work of their respective OIB.

Article 10

The functions and duties of the OIBs are: drawing out plans of invitations for bids for specific commodities according to the opinions
of different industries; reviewing the list of enterprises to be allowed to tender bids according to the qualifications for the tendering
of bids; participating in the opening and appraisal of bids, checking the payment of caution money for winning bids and the bid-winning
money by the enterprises; accepting the quotas submitted by the enterprises, accepting and ratifying the applications of the enterprises
for transferring their quotas; tracking and keeping informed of the use of quotas and licenses as well as the changes in the commodities
subject to invitations for bids and the markets thereof, and report such information to the CIBECQ; printing and issuing bid-winning
certification document according to uniform formats and relevant provisions, and handling other matters relating to the invitation
for bid as requested by the CIBECQ.

Chapter III Qualifications for the Invitation for Bid

Article 11

Qualifications for the invitation for bid

The invitation for bid for export commodity quotas shall be carried out by means of public invitations and negotiated invitations.
Different ways of bid invitations may be adopted for different commodities.

Any export enterprise (including enterprises with foreign investment) that has the qualifications for import and export business operations,
has been registered at the administrations for industry and commerce, and has joined relevant chambers of commerce for import and
export (in case of an enterprise with foreign investment, it has joined the China Society of Enterprises wtih Foreign Investment),
and whose volume of export or amount of export supply of relevant commodities has come up to a certain rate may participate in the
bid invitations after being registered at relevant OIBs and satisfying the conditions of bid invitations. The qualifications for
the public invitations and negotiated invitations of different commodities shall be separately formulated by the MOFTEC according
to the present Measures on the basis of different commodities.

Article 12

Examination of the qualifications for the tendering of bids

The commissions, departments and bureaus of all provinces, autonomous regions, municipalities directly under the Central Government
and the municipalities separately listed on the State plan (hereinafter referred to as “local departments of foreign trade”) shall
make preliminary examinations over the qualifications of the bid-tendering enterprises of the locality according to the requirements
of the CIBECQ and submit relevant materials. The OIBs shall carry out reviews of the qualifications of the bid-tendering enterprises
within the prescribed time limits and report the results of reviews together with relevant materials to the CIBECQ for examination
and approval.

Article 13

The export performances of the bid-tendering enterprises shall be based on the statistics of the customs offices.

Chapter IV Rules and Procedures for the Appraisal of Bids

Article 14

The CIBECQ shall take charge of the bid invitations for export commodity quotas.

Article 15

In any of the following circumstances, an electronic bid shall be deemed as an invalid bid:

a bid that the enterprise applies to the OIB for invalidation prior to the opening of bids;

a bid serviced after the prescribed deadline;

a same enterprise has successfully serviced more than two (including two) bids before the deadline without regard whether the bids
are the same or not;

other circumstances under which a bid shall be invalidated according to the present Measures.

Article 16

In the case of a public invitation, the enterprises may independently decide the price for tendering their bids. The CIBECQ may, according
to the specific situations, predetermine and publicize the minimum price for tendering bids.

If the price in the bid tendered by an enterprise is too high or is obviously against the history of prices, the bid shall be deemed
as an invalid one.

The minimum price for tendering a bid in negotiated invitations may be determined by the CIBECQ according to the average profits of
specific commodities exported, the market situation of the export commodities, the bid-winning prices for the quotas in the past
years and other relevant elements.

Article 17

In order to avoid the over-concentration or over-decentralization of bid-winning quotas, the CIBECQ may set a maximum and minimum
limit for specific commodities. A bid that is higher than the maximum limit or lower than the minimum limit shall be deemed as an
invalid one.

Article 18

The enterprises shall tender their bids by way of electronic bids prior to the prescribed time limit, and the electronic version of
the bids shall prevail. Only one bid may be submitted for a same commodity in a same way. An enterprise that cannot submit its electronic
bid prior to the prescribed time limit shall be deemed as automatically quitting the bid tendering.

Article 19

The determination of the bid-winning enterprises

In the case of public invitations: All the eligible bid-tendering enterprises shall be arrayed in terms of the prices of the bids
with the highest coming first, and the quantity of bids of the bid-tendering enterprises shall be accumulated according to the sequence.
When the accumulated quantity of bids tendered is identical to the total amount bids invited for, the enterprise that falls within
the total amount of accumulated (namely, the total amount of bids invited) shall be a bid-winning enterprise.

If the sum of the bids tendered by the enterprises that fall within the minimum limit for winning the bid exceeds the quantity of
remained quotas, all such enterprises shall be the winners of the bid.

In the case of a negotiated invitation: All the enterprises whose bidding prices are not lower than the minimum prices as prescribed
by the CIBECQ shall be the winners of the bid.

Article 20

The determination of the bid-winning prices and quantities

The bid-winning prices of the bid-tendering enterprises in a public invitation shall be the prices of the tendered bids. The bid-winning
prices of the bid-tendering enterprises in a negotiated invitation shall be separately determined by the CIBECQ according to the
specific situations of the different commodities.

The determination of the bid-winning quantities

(1)

In a public invitation, the bid-winning quantity of the bid-winning enterprise shall be the quantity of the tendered bids. If the
total sum of the tendered bids of the enterprises that fall within the minimum bid-winning prices exceeds the quantity of the remained
quotas, the enterprises whose price is above the limit shall share the remained quotas among themselves. If the total sum of the
bid-winning quantities is lower than the minimum bid-tendering quantity, they shall be deemed as failing the bid.

(2)

The bid-winning quantity in a negotiated bid:

a. The bid-winning quantity of an enterprise shall be calculated according to the following formula:

Bid-winning quantity of the enterprise = total amount of bid invitation * [amount of money tender by the enterprise (price for quota
in the tender bid * the quantity in the tendered bids) / the total sum of the money in the tendered bids of all bid-winning enterprises
(price for quota in the tender bid * the quantity in the tendered bids)] or

b. The maximum bid-winning quantity of an enterprise shall be the quantity of the bids tendered thereby.

The total bid-winning amount shall of an enterprise with foreign investment for a whole year shall be limited to the scale of export
of the enterprise as ratified by the MOFTEC.

Article 21

The CIBECQ shall publicize public announcements of bid invitations on designated mass media.

Article 22

The OIBs shall publicize the preliminary results of bid winning within the prescribed time limit after the bid appraisal is finished.
In case any bid-tendering enterprise is in doubt, it may interrogate the competent OIB within 2 working days after the preliminary
result of bid winning is publicized. The OIB shall, within 3 working days after the publication, report the preliminary bid-winning
results to the CIBECQ for examination and approval.

Article 23

After examining and approving the result of bid winning, the CIBECQ shall inform the OIBs in time and publicize the names of the bid-winning
enterprises.

Chapter V Bid-winning Money

Article 24

The payment of the bid-winning money

The bid-winning enterprises determined according to the rules for appraising the bids shall pay caution money for winning the bid
and bid-winning money according to relevant provisions. The proceeds from the bid invitations shall be turned into the Central Fund
for Developing Foreign Trade.

The CIBECQ shall open special accounts at designated banks for the collection of caution money and bid-winning money. The specific
matters may be entrusted to relevant chambers of commerce for import and export for handling.

The OIBs shall report to the CIBECQ about the collection of the caution money within 5 working days after the deadline for collecting
the caution money expires.

Article 25

The bid-winning enterprises shall pay caution money and bid-winning money according to the following provisions and such money may
not be paid by other enterprises instead:

The bid-winning enterprises shall transfer the caution money for winning bids to the accounts at designated banks by way of checks,
bills, or remittances within the prescribed time limit. The specific proportion of the caution money for winning bids shall be separately
determined by the CIBECQ according to the specific situations of the commodities. The caution money will not be refunded without
regard to the use of the quotas won in the bids.

Prior to applying for an export license each time, the bid-winning enterprise shall pay the balance of the bid-winning money to the
designated bank accounts according to the quota specified in the application for export license.

Article 26

The OIB concerned shall, after receiving the bid-winning money paid by the enterprise, issue a certification document to the enterprise
concerning the application for an export license of commodities subject to quota administration.

Chapter VI Turn-over, Transfer, Acceptance and Withdrawal of Quotas

Article 27

Where a bid-winning enterprise cannot use or use up the bid-won quotas, it shall turn over or transfer the quotas according to prescribed
procedures.

Article 28

The time for turning over the quotas of export commodities subject to bid invitation shall be determined by the CIBECQ according to
the specific situations of different commodities.

Article 29

A bid-winning enterprise may not file an application for transferring its quotas of export commodities until it has paid the bid-winning
money to the designated bank accounts according to the proportion as set down by the CIBECQ.

Article 29

Both parties to the transfer of the quotas shall submit their application for transferring and accepting the quotas to the OIB concerned
for examination and approval. The transferee of the quotas shall have the qualifications for tendering bids. The measures for encouraging
or restricting the transfer of bid-won quotas between different commodities shall be separately determined by the CIBECQ.

Article 30

The bid-won quotas for which the bid-winning money is not paid in full amount at the expiration of the prescribed time limit shall
be deemed by the CIBECQ as unusable and be withdrawn by the CIBECQ, and the caution money already paid shall not be refunded. The
specific date for withdrawing the quotas shall be separately determined by the CIBECQ, and the a certain proportion of the withdrawn
quotas shall be deemed as wasted quotas and be calculated in the rate of waste quotas.

Article 31

With regard to the quotas that have been withdrawn or turned over and other remained quotas, the CIBECQ may hold additional bid invitations
according to the largeness of the quotas or it may deal with the quotas by other means as ratified by the MOFTEC.

Chapter VII Export Licenses

Article 32

The bid-won quotas shall be valid for the current year. After obtaining the quotas, the enterprise shall apply to the designated authorities
for export licenses during the valid term of the quotas.

The list of names of the enterprises that have won bids of quotas together with the bid-winning quantities shall be subject to the
examination and approval of the MOFTEC and distributed to the license-issuing authorities and the local departments of foreign trade.

Article 33

All relevant license-issuing authorities shall issue export licenses according to the Rules on the Administration of Export Licenses
on the basis of the certification documents issued by the OIB concerned to prove the winning of bids.

Chapter VIII Penalty Provisions

Article 34

Any individual, organization or enterprise that violates the provisions of the present Measures by disturbing the bid invitations
shall be subject to administrative punishment by the MOFTEC according to the seriousness of the offense. If the offense has constituted
a criminal offence, it shall be turned over to the judicial departments for assuming penal liabilities.

Article 35

Any enterprise or individual shall be enpost_titled to report or complain about the fraudulent activities that occur as against the provisions
of the present Measures in the process of inviting for bids. If the afore-mentioned activities is affirmed through investigations,
the MOFTEC shall be enpost_titled to veto the bid-winning results.

Article 36

Any member from the CIBECQ or the OIBs that violates the provisions of the present Measures may be given a punishment by the MOFTEC
according to the seriousness of the offense or even be handed over to the judicial organs for assuming penal liabilities.

Article 37

If any enterprises collude in tendering bids or make false reports of their qualifications for bid tendering or disturbing the bid
invitations by any other means, the bid-won quotas thereof shall be withdrawn by the CIBECQ and the enterprises involved shall be
disqualified for tendering bids for the same commodity for one to three years.

Article 38

If any enterprise that has won a bid fails to pay caution money for winning bids according to relevant provisions, the CIBECQ shall
withdraw the quotas won in the bids and disqualify it for tendering bids for relevant commodities for one to three years.

Article 39

The quotas that are not turned over or transferred according to relevant provisions nor are they acquired before the valid period
of the quotas nor are they used after being acquired shall be deemed as wasted quotas. The enterprises whose bid-won quotas exceed
a certain proportion shall be disqualified for tendering bids for the export of the commodity for one to three years according to
the seriousness of the waste. The specific punishments shall be determined by the CIBECQ according to the specific conditions of
the different commodities.

Article 40

If activities of any of the offending enterprise as mentioned in the circumstances of the present chapter have constituted the intentional
disruption of bid invitations and the circumstances are serious enough, the CIBECQ may disqualify the enterprise for tendering bids
for a single commodity or all commodities permanently and may be handed over to the judicial organs for punishment.

Article 41

If any bid-winning enterprise fails to pay bid-winning money (including caution money for winning bids) according to relevant provisions
due to force majeure, it shall submit within a reasonable time period a certificate issued by relevant organs, and may, upon the
approval of the CIBECQ, be exempted from part or all of its liabilities.

Article 42

If the rate of obtaining export licenses for a certain commodity is relatively low due to the international market, the relevant bid-winning
enterprises may be exempted from part or all of their liabilities upon the approval of the CIBECQ.

Chapter IX Supplementary Provisions

Article 43

The expenses incurred from the bid invitation for export quotas itself by the MOFTEC, the CIBECQ, the OIBs and all local departments
of foreign trade shall be handled in accordance with the principle of separation between revenue and expenditure, and the MOFTEC
shall examine the expenses and make budgets for each year so that the Ministry of Finance will allocate from the Central Fund for
Developing Foreign Trade and have expenses settled at the end of the year.

Article 44

No entity, organization or individual may disseminate any rule, public announcement or notice, etc relating to the bid invitation
of export commodities quotas without the approval of the MOFTEC or the CIBECQ.

Article 45

The power to interpret the present Measures shall remain with the MOFTEC.

Article 46

The present Measures shall enter into force as of January 1, 2002. The original Measures for the Bid Invitation for Quotas of Export
Commodities and the Rules for the Implementation of the Measures for the Bid Invitation for Quotas of Export Commodities (GuanFa
[1998] No. 974 of the MOFTEC) shall be concurrently nullified.

The Ministry of Foreign Trade and Economic Cooperation
2001-12-20

ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF CUSTOMS ON CONFIRMING THE ORIGIN OF IMPORTED GOODS IN ADVANCE

The General of Administration Customs

Announcement of the General Administration of Customs on Confirming the Origin of Imported Goods In Advance

[2001] No. 17

December 5, 2001

In order to confirm the country of origin of cargoes imported by the consignees and the concerning party in advance, the State Customs
plan to implement the system of confirming the country of origin of cargoes imported in advance from Dec.11th 2001. The following
should be clarified:

The consignees and other person who direct relation to the cargoes imported can apply for the customs to confirm the country of origin
of cargoes imported in advance with warrant.

II.

The applicant should apply for the direct customs to confirm the country of origin of cargoes imported in advance and state the reason
of the application.

III.

The applicant should fill in the application form for the country of origin of cargoes imported (see attachment) and summit the following
files:

(I)

Identity file of the applicant

(II)

Statement about the cargoes imported, includes but not confines to:

The import cargoes’ name, specification, type, serial number of tax regulations and commodity instruction and etc.

The country (region) of the exported cargoes or the certificate of origin issued by the relevant institutions in the country of origin
of cargoes

Variety, specification, type, price, origin of the raw material made from imported cargoes

The processing procedure, the working flow, the technique, processing place and added-value of processing and etc.

(III)

The transacting files of the imported cargoes, such as contract, letter of intent, enquiry of price, quotation and invoice and etc.

(IV)

The other files required by the customs

The applicant should mend the files according to the requirement of customs when the incomplete files proposed by the applicant affect
the confirmation of the country of origin in advance by the customs.

IV.

Within 150 days from the day when the customs receive the written application and all the necessary files, the decision about the
confirmation of the country of origin in advance by the customs should be made and notified the applicant under Interim Regulation
on the Country of Origin of Imported Cargoes by the State Customs of PRC.

The decision about the confirmation of the country of origin in advance made by the customs remains effective in all the entries and
exits on the premise of that regulations, facts and conditions under which the decision has been made hereinabove are unchangeable.

VI.

The decision about the confirmation of the country of origin in advance made by the customs is invalid until one of the following
occurs:

(I)

The principles of the country of origin by which the confirmation is made have changed,

(II)

The judicatory or administrative review examines the pre-confirmation and gives a different verdict.

If the decision of the pre-confirmation is invalid due to hereinabove, the implement of pre-confirmation by the previous principles
still effects.

VII.

The inconsistence between the importation and information for applying for the pre-confirmation leads to invalid of the decision of
pre-confirmation. The customs should confirm the country of origin of imported cargoes under the Interim Regulation on the country
of origin of imported cargoes by the State Customs of PRC.

VIII.

If the applicant discontents the decision of confirm the country of origin of imported cargoes made by the customs or the consignee
discontents the confirmation of the country of origin of the real imported cargoes by the decision of customs, they can apply for
the administrative review or sue the People court for it.

IX.

The requirement for keeping secret for the files of the confirmation of the country of origin should be declared while submitting
and met by the customs. It is not disclosed until the applicant agrees except required legally.

Attachment: Application for the confirmation of the country of origin of imported cargoes(form) (omitted)

The General of Administration Customs
2001-12-05

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2007

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LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON CHINESE-FOREIGN EQUITY JOINT VENTURES

ANNOUNCEMENT OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, THE GENERAL ADMINISTRATION OF CUSTOMS AND THE STATE ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON ANNOUNCING THE CATALOGUE OF COMMODITIES PROHIBITED FROM IMPORT (THE 2ND BATCH)

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ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF CUSTOMS ON CONFIRMING THE ORIGIN OF IMPORTED GOODS IN ADVANCE

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

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CONSTITUTION ACT, 1982 – page 18

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CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

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CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7