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2007

MEASURES OF THE CUSTOMS ON THE SUPERVISION OF THE GOODS TRANSITED BETWEEN CUSTOMS OFFICES

The General Administration of Customs

Order of the General Administration of Customs

No.89

The Measures of the Customs of the People’s Republic of China on the Supervision of the Goods Transited between Customs Offices discussed
and adopted at the working meeting of the General Administration of Customs on September 3, 2001, are hereby promulgated, and shall
come into force on October 15, 2001. The original Circular of the General Administration of Customs on Promulgating “Measures of
the Customs of the People’s Republic of China on the Supervision of Goods Shipped by Landway and Transited between Customs Offices
in Guangdong Region” (ShuJian [2001] No. 21), the Circular of the General Administration of Customs on Promulgating “Measures of
the Customs of the People’s Republic of China on the Supervision of Goods Shipped for Import and Export and Transited between Customs
Offices Along the Yangtse River” (ShuJian [2001] No. 22), and the Circular on Promulgating the “Measures of the Customs of the People’s
Republic of China on Goods Transited between Customs Offices” (ShuJianYi [1992] No. 1337) shall be repealed simultaneously.

The General Administration of Customs

September 30, 2001

Measures of the Customs on the Supervision of the Goods Transited between Customs Offices

Chapter I General Provisions

Article 1

These Measures are enacted in accordance with the Customs Law of the People’s Republic of China with a view to strengthening the supervision
on the goods transited between customs offices and providing conveniences to the consignees and the consigners to go through customs
formalities.

Article 2

The goods transited between customs offices are the goods under the supervision of the Customs. Unless otherwise provided (see Attachment
1), formalities of transition between customs offices may be handled for all imported and exported goods. The Customs shall affix
seals on the imported and exported goods transited between customs offices.

Article 3

The goods transited between customs offices shall be carried by a carrier who has been registered at the customs. The Customs shall
limit the scope of routes for the transition between customs offices, and shall limit the time for the transportation of the goods,
while the carrier shall carry the goods to the designated place as required by the Customs.

The Customs may, as needed in its work, send functionaries to escort the goods transited between customs offices. The consignee and
consigner of the goods or their agents, and the carrier shall, in accordance with the relevant provisions, pay the escort fee to
the Customs and provide conveniences.

Article 4

A surveillance area approved by the Customs shall be established in the place of destination or the place of consignment where goods
are transited between customs offices. The goods transited between customs offices shall be deposited, loaded, unloaded or inspected
within the customs surveillance area. Where, under a particular circumstance, the goods need to be deposited, loaded, unloaded, or
inspected out of the customs surveillance area, the party concerned shall apply to the Customs in advance, and the Customs shall
supervise them in accordance with the relevant provisions.

Article 5

The Customs’ inspection on the goods transited between customs offices shall be carried out by the customs at the place of destination
or at the place of consignment. The customs at the place where the goods enter or depart from the territory may also, when necessary,
inspect or re-inspect the goods.

Article 6

Without the Customs’ approval, no one shall open, pick up, deliver, forward, change, repack, mortgage, pledge, take lien of or transfer
the goods transited between customs offices or change the identification marks on such goods, use the goods for other purposes or
dispose of them by any other means.

Article 7

The consignee or consigner of the goods transited between customs offices or his agent may go through the formalities of transition
between customs offices in any of the following three methods:

(1)

by declaring in advance at the customs at the place of destination or at the place of consignment;

(2)

by means of direct transition, that is, by directly filling out the declaration document of the goods transited between customs offices
at the customs at the place where the goods enter the territory or at the place of consignment;

(3)

by means of transshipment, that is, the carrier inside the territory or his agent shall uniformly declare at the customs at the territory-transit
place or at the place of consignment.

Article 8

The electronic data in the declaration of the goods transited between customs offices shall have the same legal binding force as the
written documents. The data wrongly filled or transmitted may, upon consent by the Customs, be amended or cancelled if there is a
justifiable reason. For the goods transited between customs offices that the Customs has decided to inspect, the contents in the
declaration may not be amended or cancelled.

The List of Goods Carried by the Automobile Entering the Territory (Attachment 2) or the List of Goods Carried by the Automobile Departing
from the Territory (Attachment 3) with respect to transportation by highway within Guangdong province shall be regarded as a written
document for the declaration in the transition between customs offices, and shall have the legal binding force.

Article 9

With respect to the goods transited between customs offices, if the party concerned has declared at the customs in advance, the customs
at the place where the goods enter the territory may, when unable to read the data on the imported goods which are to be transited
between customs offices due to a certain reason, handle the formalities of transition between customs offices in accordance with
the relevant provisions on direct transition of the goods.

Article 10

Unless otherwise provided, the Customs shall supervise the goods which are carried from one place which has a customs to another by
means of transiting the imported goods between customs offices.

Article 11

Where the means of transport or the driver needs to be changed during the transportation of the goods transited between customs offices
due to traffic suddenness or any other reason, the carrier or the driver shall notify the nearby customs; the nearby customs shall,
after checking and approving the change, supervise the change and notify in writing the customs at the place where the goods enter
the territory or at the place of destination, or, at the customs at the place where the goods depart from the territory or at the
place of consignment.

Article 12

When the goods transited between customs offices incur any damage, deficiency or loss during the storage or transportation of them
within the country, the carrier, the owner of the goods and the responsible person of the depository shall, except for force majeure,
bear the responsibility of tax payment.

Chapter II Supervision on Imported Goods Which Are to Be Transited between Customs Offices

Article 13

With respect to the goods transited between customs offices, the party concerned shall, within 14 days as of the date when the means
of transportation is declared for entering the territory, go through the formalities of transition between customs offices at the
customs at the place where the goods enter the territory, and shall, within 14 days as of the date when the goods are carried to
the customs at the place of destination within the time period limited by the Customs, go through the formalities of customs declaration
at the customs at the place of destination. Where the party concerned has failed to go through the formalities within the time limit,
he shall be imposed upon a fee for delayed declaration in accordance with the relevant provisions.

Article 14

With respect to the imported goods which are to be transited between customs offices, the tax shall be levied on the basis of the
tax rate and exchange rate on the day when the goods arrive at the customs at the place of destination. Where the party concerned
has declared at the customs in advance, the applicable tax rate and exchange rate shall be those on the day when the customs at the
place of destination receives the information on transition and release transmitted by the customs at the place where the goods enter
the territory. In case of major adjustment with the tax rate or exchange rate during the transportation of the goods, the tax shall
be calculated on the basis of the tax rate and exchange rate on the day when the goods transited between customs offices arrive at
the customs at the place of destination.

Article 15

With respect to the goods transited between customs offices, if the consignee of the imported goods or his agent has declared at the
customs in advance, he shall, before going through the formalities of transition of the imported goods between customs offices at
the customs at the place where the goods enter the territory, input the electronic data of the Customs Declaration Form for Imported
Goods at the Customs at the place of destination. The customs at the place of destination shall accept the electronic declaration
in advance, and shall handle the formalities of transition, cancellation after verification, acceptance of documents, examination
and release, etc. after the goods have been carried to the surveillance area of the customs at the place of destination.

Article 16

With respect to the goods transited between customs offices, after the consignee or his agent who has declared at the customs in advance
has filled out and input the Customs Declaration Form for Imported Goods at the customs at the place of destination, the computer
will automatically create an Declaration Document on the Imported Goods Which Are to Be Transited between Customs Offices (see Attachment
4) and will transmit it to the customs at the place where the goods enter the territory.

Article 17

With respect to the goods transited between customs offices, if the consignee or his agent has declared at the customs in advance,
he shall provide the customs at the place where the goods enter the territory with the serial number of the “Declaration Document
on the Imported Goods Which Are to Be Transited between Customs Offices”, and shall submit the following documents to go through
the formalities of transition between customs offices:

(1)

the “Verification and Release List of Imported Goods Which Are to Be Transited Between Customs Offices” (see Attachment 5); where
the goods are transported by highway within Guangdong province, the List of Goods Carried by the Automobile Entering the Territory
shall be submitted for examination;

(2)

the Register of the Customs of the People’s Republic of China on Goods Carried by the Automobile Inside the Territory Which Carries
the Goods Under the Supervision of the Customs (hereinafter referred to as the Register on Goods Carried by the Automobile) or the
Vessel Supervision Book;

(3)

bill of lading.

Article 18

With respect to the imported goods which are to be transited between customs offices, if the party concerned has declared at the customs
in advance, he shall, within 5 days as of the date when the electronic data are declared, go through the formalities of transition
between customs offices at the customs at the territory-transit place. And if he fails to go through the formalities of transition
between customs offices at the customs at the place where the goods enter the territory within the time limit, the customs at the
place of destination shall cancel the electronic data declared at the customs in advance.

Article 19

With respect to the goods directly transited between customs offices, the consignee of the goods or his agent shall input the data
of the declaration of transition at the place where the goods enter the territory, and shall directly go through the formalities
of transition between customs offices.

Article 20

With respect to the goods directly transited between customs offices, the consignee of the goods or his agent shall go through the
formalities of transition between customs offices at the customs at the place where the goods enter the territory with the following
documents:

(1)

the Declaration Document on the Imported Goods Which Are to Be Transited between Customs Offices; where the goods are transported
by highway within Guangdong province, the List of Goods Carried by the Automobile Entering the Territory shall be submitted for examination;

(2)

the Register on Goods Carried by the Automobile or the Vessel Supervision Book.

Article 21

With respect to the transshipped goods with through bill of lading or consignment note which are to be transited between customs offices
and need to be re-loaded onto another means of transportation inside the territory, the carrier inside the territory or his agent
shall, after the consignee or his agent has gone through the formalities of customs declaration for import at the customs at the
place of destination, go through the formalities of transiting the goods between customs offices in a batch process.

Article 22

With respect to the transshipped goods to be transited between customs offices, the agent of the means of transportation shall go
through the formalities of transition between customs offices at the customs at the place where the goods enter the territory with
the following documents:

(1)

the Declaration Document on the Imported Goods Which Are to Be Transited between Customs Offices;

(2)

the Written Notification for the Transshipment of Imported Goods (see Attachment 6);

(3)

for imported transshipped goods, the paper manifest of cargo listing the port at the place of destination.

For transshipped goods entering the territory by air, the connected consignment note shall be submitted.

Chapter III Supervision on Goods Transited Between Customs Offices Which Are to Be Exported

Article 23

With respect to the goods transited between customs offices, if the party concerned has declared in advance at the customs for export,
the consigner of the goods or his agent shall, before the goods are carried to the customs surveillance area at the place of consignment,
fill and input the electronic data into the Customs Declaration Form for Goods to Be Exported at the customs at the place of consignment,
and the customs at the place of consignment shall accept the electronic application in advance. The party concerned shall, within
5 days after the electronic data are declared, carry the goods to the customs surveillance area at the place of consignment and go
through the formalities of transition, examination and release, etc.. In case he fails to do so within the time limit, the customs
at the place of consignment shall cancel the electronic data declared at the customs in advance.

Article 24

With respect to the goods directly transited between customs offices which are to be exported, the consigner of the goods or his agent
shall, after the goods have been carried to the customs surveillance area at the place of consignment, fill and input the electronic
data into the Customs Declaration Form for Goods to Be Exported at the customs at the place of consignment, and the customs at the
place of consignment shall accept the electronic application, and handle the formalities of transition, examination and release,
etc..

Article 25

With respect to the goods declared at the customs in advance directly transited between customs offices which are to be exported,
the consigner or his agent shall fill out and input the electronic data into the Customs Declaration Form for Goods to Be Exported
at the place of consignment. After the customs at the place of consignment has completed the formalities of release, the computer
will automatically create the data on the Declaration Document on the Goods Transited between Customs Offices Which Are to Be Exported
(Attachment 7), and will transmit them to the customs at the place where the goods depart from the territory.

Article 26

With respect to the goods declared at the customs in advance directly transited between customs offices which are to be exported,
the consigner or his agent shall go through the formalities of transition between customs offices for export at the customs at the
place of consignment with the following documents:

(1)

the Customs Declaration Form for Goods to Be Exported;

(2)

the Register on Goods Carried by the Automobile or the Vessel Supervision Book;

(3)

where the goods are transported by highway within Guangdong province, the List of Goods Carried by the Automobile Departing from the
Territory shall also be submitted.

Article 27

After the goods declared at the customs in advance and directly transited between customs offices which are to be exported have arrived
at the place where the goods depart from the territory, the consigner or his agent shall, with the Register on Goods Carried by the
Automobile or the Vessel Supervision Book, and the Customs Declaration Form for Goods to Be Exported and the Declaration Document
on the Goods Transited between Customs Offices Which Are to Be Exported or the List of Goods Carried by the Automobile Departing
from the Territory (for goods transported by highway within Guangdong province), which are issued by the customs at the place of
consignment, go through the formalities at the customs at the place where the goods depart from the territory for the goods transited
between customs offices to depart from the territory.

Article 28

With respect to the transshipped goods with through bill of lading or consignment note which are needed to be reloaded onto another
means of transportation inside the territory and are to be exported, the carrier or his agent shall, after the consigner has gone
through the formalities of customs declaration for export at the customs at the place of consignment, go through the formalities
of transiting the goods between customs offices in a batch process as required by the manifest of cargo listing the outward means
of transport.

Article 29

With respect to the transshipped goods which are to be exported, the consigner or his agent shall go through the formalities for release
at the customs at the place of consignment, and the agent of the means of transportation shall input and submit the following documents
to the customs at the place of consignment:

(1)

Declaration Document on the Goods Transited between Customs Offices Which Are to Be Exported;

(2)

the electronic or paper manifest of cargo listing the outward means of transport;

(3)

the Register on Goods Carried by the Automobile or the Vessel Supervision Book .

The customs at the place of consignment shall issue the Written Notification for the Transshipment of Goods to Be Exported (see Attachment
8) after granting the approval. The customs at the place where the goods depart from the territory shall verify the above said documents,
and handle the formalities for the transshipped goods to depart from the territory.

Article 30

Where the outward means of transport may not be determined until the goods are carried to the place where the goods depart from the
territory, or the name, voyage schedule, or bill of lading number of the original means of transportation is changed, the party concerned
may re-input or amend the relevant data at the place where the goods depart from the territory, and go through the formalities for
the goods to depart from the territory.

Chapter IV Cancellation after Verification

Article 31

The customs at the place of destination may not handle the transition or cancellation after verification until the imported goods
which are to be transited between customs offices are carried to the customs surveillance area at the place of destination.

Where the imported bulk goods which are to be transited between customs offices are carried in batches, the customs at the place of
destination shall handle the formalities of transition and cancellation after verification for the whole goods after the first batch
of goods have been carried to the customs surveillance area at the place of destination, and the consigner or his agent shall meanwhile
go through the formalities of customs declaration for import for the whole goods.

The customs at the place of destination shall handle the examination and release for the rest of the goods in accordance with the
relevant provisions. After the last batch of goods has arrived, the customs at the place of destination shall complete the cancellation
after verification for the whole goods.

Article 32

The customs at the place where the goods depart from the territory may not handle the transition or cancellation after verification
until the goods transited between customs offices which are to be exported are carried to the customs surveillance area at the place
where the goods depart from the territory. After the goods have actually left the territory, the customs at the place where the goods
depart from the territory shall cancel the clean manifest of cargo after verifying it, and shall send the feedback to the customs
at the place of consignment, while the customs at the place of consignment shall, based on the feedback, issue the proving sheet
of the relevant customs declaration form.

Article 33

The means of transportation in transition shall not carry the goods transited between customs offices for a second time before the
transition and cancellation after verification have been completed.

Chapter V Supplementary Provisions

Article 34

Terms used in these Measures are defined as follows:

(1)

The term “goods transited between customs offices” shall refer to:

a.

the goods entering the territory, for which the party concerned applies to the customs for the transition between customs offices
and for transporting to another place which has customs, and goes through the customs formalities for import;

b.

the goods supervised and released by the customs at the place where the goods depart from the territory, for which the party concerned
has gone through the customs formalities for export at the place of consignment and which are being carried to the place where the
goods depart from the territory;

c.

the goods carried from one place which has customs inside the territory to another, which need to be supervised by the customs.

(2)

“the place where the goods enter the territory”: the port where the goods enter the customs area.

(3)

“the place where the goods depart from the territory”: the port where the goods leave the customs area.

(4)

“the place of destination”: the place to which the imported goods which are to be transited between customs offices are carried for
customs declaration.

(5)

“the place of consignment”: the place to which the goods transited between customs offices which are to be exported are carried for
customs declaration and consignment.

(6)

“carrier”: the enterprise approved by the customs to carry goods transited between customs offices.

Article 35

the General Administration of Customs shall be responsible for the interpretation of these Measures.

Article 36

These Measures shall come into force on October 15, 2001. The original Circular of the General Administration of Customs on Promulgating
“Measures of the Customs of the People’s Republic of China on the Supervision of Goods Shipped by Landway and Transited between Customs
Offices in Guangdong Region” (ShuJian [2001] No. 21), the Circular of the General Administration of Customs on Promulgating “Measures
of the Customs of the People’s Republic of China on the Supervision of Goods Shipped for Import and Export and Transited between
Customs Offices along the Yangtse River” (ShuJian [2001] No. 22), and the Circular on Promulgating the “Measures of the Customs of
the People’s Republic of China on Goods Transited between Customs Offices” (ShuJianYi [1992] No. 1337) shall be abrogated at the
same time.

Attachments:

1. List of Articles Whose Transition between Customs Offices is Restricted(omitted)

2. List of the Customs of the People’s Republic of China on Goods Carried by the Automobile Entering the Territory(omitted)

3. List of the Customs of the People’s Republic of China on Goods Carried by the Automobile Departing from the Territory(omitted)

4. Declaration Document of the Customs of the People’s Republic of China on the Imported Goods Which Are to Be Transited between Customs
Offices(omitted)

5. Verification and Release List of Imported Goods Which Are to Be Transited Between Customs Offices(omitted)

6. Written Notification of the People’s Republic of China for the Transshipment of Imported Goods(omitted)

7. Declaration Document of the Customs of the People’s Republic of China on the Goods Transited between Customs Offices Which Are
to Be Exported(omitted)

8. Written Notification of the People’s Republic of China for the Transshipment of Goods to Be Exported(omitted)



 
The General Administration of Customs
2001-09-30

 






SUPPLEMENTARY CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ADMINISTRATION OF TAX REFUND (EXEMPTION) FOR EXPORTED GOODS BASED ON CATEGORIES OF ENTERPRISES

e02658,e03487200108022001080220040601State Administration of Taxationepdf/e03943.pdfE34exported goods, tax refund (exemption), categories of enterprises, western regions, export enterprises, place of incorporation, Category
A, Category Be03943Supplementary Circular of the State Administration of Taxation on the Administration of Tax Refund (Exemption) for Exported Goods
Based on Categories of EnterprisesGuo Shui Fa [2001] No. 83All bureaus of state tax of various provinces, autonomous regions, municipalities directly under the Central Government and cities
specifically designated in the state plan:For the purpose of further improving the measures for the administration of tax refund (exemption) for exported goods based on categories
of enterprises, and upon the approval of the Ministry of Foreign Trade and Economic Cooperation through negotiation, related issues
are hereby supplemented as follows:1.Tax authorities in charge of export tax refund in all regions shall carry out the administration of export enterprises under their
jurisdiction based on categories of the said enterprises and carefully implement all kinds of policies in strict compliance with
the provisions of the Circular of the State Administration of Taxation on the Administration of Tax Refund (Exemption) for Exported
Goods Based on Categories of Enterprises (Guo Shui Fa [1998] No. 95) and this Supplementary Circular.(1)to give priority to enterprises of Category A and B for tax refund in case of insufficient refund indicators;(2)to strictly examine tax refund documents and electronic information of an enterprise of Category C, and intensify efforts of accounting
and supervision over financial affairs of the enterprise;(3)to make an enterprise of Category D enjoy a tax refund once a semi-year and submit the case to the department in charge of administration
of import & export taxes under the provincial tax bureau for examination and approval;(4)to within 20 working days in principle complete the handling of a tax refund application filed by an export enterprise, tax refund
documents and electronic information of which are authentic, complete and found correct.2.Measures for administration of export enterprises in western regions based on the categories of the said enterprises shall be adjusted
in part, and other aspects in respect of the said enterprises’ tax refund (exemption) for exported goods shall conform to related
provisions of the Circular of the State Administration of Taxation on the Administration of Tax Refund (Exemption) for Exported Goods
Based on Categories of Enterprises (Guo Shui Fa [1998] No. 95) and this Supplementary Circular.(1)Export enterprises in western regions shall, according to pertinent provisions of the State Council, refer to the export enterprises
whose places of incorporate are located in Chongqing municipality directly under the Central Government, provinces of Sichuan, Guizhou,
Yu’nan, Xizang, Shanxi, Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia and Guangxi as well as Hu’nan Provincial Xiangxi Tujia-Miao
Autonomous Prefecture and Hubei Provincial Enshi Tujia-Miao Autonomous Prefecture.(2)An enterprises of Category A located in western regions must meet all the following requirements concurrently:1)being required to act as a productive enterprise with the right to import or export, which produces such products with a common cycle
for more than half year as vessels and heavy electron-mechanical equipment.Specific industries and products thereof shall, after decided by the state tax bureaus at the provincial level of a place where an
export enterprise resides through negotiation with the competent department in charge of foreign trade and economic cooperation at
the same level in the same place, be reported to the State Administration of Taxation for examination and approval;2)having an amount of foreign exchange earned each year reaching more than $ 20 million;3)having never brought about issues concerning tax fraud;4)having a sizeable volume of assets which may be left as a pledge for refunded (exempted) tax payment in case of tax fraud cases or
issues on wrong tax refund; and5)having a sound financial system.(3)An enterprise of Category B located in western regions must meet all the following requirements concurrently:1)having an amount of foreign exchange earned reaching $ 15 million dollars or more on a yearly basis (For a productive enterprise,
the annual foreign exchange earning may be eased to more than $ 10 million dollars a year.)2)having never brought about tax fraud or issues suspected of being involved in the said tax fraud in recent 3 years;3)having a sizeable volume of assets which may be left as a pledge for refunded (exempted) tax payment in case of tax fraud cases or
issues on wrong tax refund; and4)having a sound financial system.3.This Circular shall be implemented as of the date of issuance.State Administration of TaxationAugust 2, 2001



 
State Administration of Taxation
2001-08-02

 






SUPPLEMENTARY CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE TECHNOLOGY DEVELOPMENT EXPENSES OF ENTERPRISES WITH FOREIGN INVESTMENT TO BE DEDUCTED FROM THE TAXABLE INCOME

The State Administration of Taxation

Supplementary Circular of the State Administration of Taxation on the Technology Development Expenses of Enterprises with Foreign
Investment to be Deducted from the Taxable Income

GuoShuiHan [2001] No.405

June 8, 2001

The State Administration of Taxation of the various provinces, autonomous regions, municipalities directly under the center government
and municipalities separately listed on the State plan, the Administration of Local Taxation of ShenZhen city:

The relevant issues on how additional calculations and deductions of the expenses addressed in the “Circular of the State Administration
of Taxation on Relevant Issues Concerning the Technology Development Expenses of Enterprises with Foreign Investment to be Deducted
from the Taxable Income” (GuoShuiFa [1999] No. 173, hereinafter referred to as the “Circular”) shall be applied to the expenses arisen
from the technology development which enterprises with foreign investment carried out themselves or by entrusting others, as well
as from the technology development services they provide upon entrustment, are hereby further clarified as follows:

I.

Where an enterprise with foreign investment applies, in accordance with the Circular, for the deduction of its taxable income for
an additional 50% of its incurred technological development expenses, it shall devise in advance a plan for the technological project
development and a budget for the technology development expenses, as well as establish a special office or appoint professionals
responsible for the implementation of the said plan and budget. It should also be able to accurately collect and check the actual
amount of technology development expenses.

II.

Where an enterprise with foreign investment, in the process of technology development, cooperates with another organization such
as an enterprise, an organ, a government-sponsored institution, or a scientific research institution, etc. (hereinafter referred
to as “another entity”) or entrusts another entity to develop a new product, a new technology or a new process for the purpose of
solely or jointly possessing the results of technology development, it may, in accordance with the Circular, enjoy preferential treatment
for the deduction of taxable income for an additional 50% of all incurred technology development expenses (including expenses paid
to an entrusted party) as provided by Article 1 and Article 2 of the Circular.

III.

For an enterprise entrusted to provide technology development services, if all expenditures incurred from providing the entrusting
party with technology development services do not fall within the scope of its technological development expenses, but belong to
“the operational costs and expenses of the business of technology development services for an enterprise engaged in such business”
provided in Article 1 and Article 2 of the Circular, and belong to the fees charged by the enterprise entrusted to provide technology
development services; the entrusting party shall determine in accordance with the Circular and Article 2 of this Supplementary Circular
whether the fees it charged when entrusted to provide technology development services shall be regarded as technology development
expenses, for which the enterprise may enjoy the preferential treatment of a taxable income deduction by an additional 50%. Therefore,
the entrusted enterprise may enjoy the preferential treatment of a taxable income deduction by an additional 50% of the expenditures
incurred in its business of providing technology development services.



 
The State Administration of Taxation
2001-06-08

 






CIRCULAR OF THE CHINA SECURITIES REGULATORY COMMISSION ON GUARANTEE OF SECURITY COMPANIES

The China Securities Regulatory Commission

Circular of the China Securities Regulatory Commission On Guarantee of Security Companies

ZhengJianFa [2001] No.69

April 24, 2001

All security regulatory offices, representative offices, special commissioner’s offices and all security companies:

The issues concerning guaranty of security companies are as follows, in a bid to standardize guarantee activities of security companies
and forestall risks that may be caused by guarantee activities of security companies:

1.

According to the Circular on the Adjustment of Calculating Rules of Security Companies’ Net Assets of the Commission, (ZhengJianJiGouZi
[2000] No.223), security companies with net assets below the floor qualification for comprehensive security companies (200 million
RMB) prescribed by the Commission, shall not provide guarantee for other persons. Those qualified for guarantee provision shall disclose
in detail the guarantee matters in the annotations of accounting statements and the explanation of net assets status.

2.

The guaranteed amount a security company provides should not exceed 20% of its net assets.

3.

All security companies shall strictly abide by the Industrial Pact on Financing or Financing in Disguised Form in Stock Underwriting
of the Security Industry Association of China (ZhongZhengXieZi [2000] No.20) and shall not provide loan guarantee for enterprises
in stock underwriting.

4.

Security companies, which are not qualified for guarantee provision shall, since the date of the issuing of this circular review former
guarantee, and disclose in detail the information of review in the explanation of net capital status.

5.

Security companies shall not provide guarantee for clients who get loans in order to trade stocks.

6.

Security companies which provide guarantee against the provisions stated above, or disclose guarantee matters in an inaccurate, false
or delayed way, and the responsible staff, shall be punished, exclusively or concurrently, by way of criticism circular, warning,
suspension or even cancellation of the business qualification, suspension or even cancellation of the occupational qualification.



 
The China Securities Regulatory Commission
2001-04-24

 






REGULATIONS GOVERNING CHINESE NATIONALS WHO ENTER THE DOMESTIC B-SHARE STOCK MARKET

CIRCULAR OF THE GENERAL OFFICE OF THE MINISTRY OF LABOR AND SOCIAL SECURITY CONCERNING ISSUES ON PERFECTING THE POLICY OF ENDOWMENT INSURANCE OF WORKERS IN CITIES AND TOWNS

The General Office of the Ministry of Labor and Social Security

Circular of the General Office of the Ministry of Labor and Social Security Concerning Issues on Perfecting the Policy of Endowment
Insurance of Workers in Cities and Towns

LaoSheTingHan [2001] No.286

December 30, 2001

Labor and Social Security Department of Guangxi Chuang Autonomous Region:

Your department’s Request for Instructions on Whether the Bankrupted Enterprises Shall Pay Social Insurance Fees during the Period
of Self-saving (GuiLaoSheBaoZi [2001] No. 25) has been received. After study, our reply is as follows:

According to prevision that “the bankrupted enterprises which carry out social insurance shall pay the overall social planning fees
they owed till the day when they are declared bankruptcy by people’s court.” of the Official and Written Reply of Till When the Overall
Social Planning Fees shall be Paid by the Bankrupted Enterprises which Carry out Social Insurance (FaFu [1996] No. 17) of the Highest
People’s Court, we consider that the enterprises which are applying to be declared bankruptcy shall pay the social insurance fees
for their workers and stuffs during the period of ordination or re-ordination; The enterprises which have been declared bankruptcy
by people’s court’s judgment may not pay the social insurance fees from the day that they were declared bankruptcy by people’s court’s
judgment.

There is no provision on whether enterprises declared bankruptcy by people’s court’s judgment can operate business of self-saving
according to the authorization or permission of the liquidation committee during the period of bankruptcy liquidation. We deem that
enterprises which operate business of self-saving according to the authorization or permission of the liquidation committee during
the period of bankruptcy liquidation and still pay salary to workers and stuffs, may pay social insurance fees according to the relevant
regulations. Your department can deal it based on practical situation.



 
The General Office of the Ministry of Labor and Social Security
2001-12-30

 






DECREE OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE GENERAL ADMINITRATION OF CUSTOMS

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

Decree of the Ministry of Foreign Trade and Economic Cooperation and the General Adminitration of Customs

No.24

The “Detailed Rules for the Implementation of the Administration of Import of Certain Machinery and Electronic Products” are hereby
promulgated in accordance with the “Foreign Trade Law of the People’s Republic of China”, the “Regulations of the People’s Republic
of China on the Administration of Import and Export of Goods” and the “Measures on the Administration of Import of Machinery and
Electronic Products”, and shall come into force on January 1, 2002. The “Attestations on Import of Machinery and Electronic Products”
issued by the Ministry of Foreign Trade and Economic Cooperation before January 1, 2002 shall continue to be valid within the validity
period, and shall be invalidated after the expiry as the validity period shall not be extended.

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

Mu Xinsheng, Director General of the General Administration of Customs

December 20, 2001 Attachment:Detailed Rules for the Implementation of the Administration of Import of Certain Machinery and Electronic Products

Article 1

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

Article 2

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

Article 3

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

Article 4

The qualifications and conditions for applying for importing certain machinery and electronic products are as follows:

(1)

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

(2)

the entity applying for import shall be enpost_titled to operate the certain products in application;

(3)

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

(4)

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

(5)

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

Article 5

Whoever applies for the import of certain machinery and electronic products shall provide the following documents:

(1)

report on applying for importing certain machinery and electronic products;

(2)

application form for import of machinery and electronic products (as indicated in Attachment 1);

(3)

business license and legal documents for the administrative department to approve the business scope (copies);

(4)

the “Notice of Bid Evaluation Result of International Invitation for Bidding” issued by the institution in charge of international
invitations for bidding shall be provided at the same time if the certain products are imported by means of international invitation
for bidding;

(5)

other documents needed to be provided.

Article 6

The principles for approving the import of certain machinery and electronic products are as follows:

(1)

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

(2)

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

(3)

to consider the actual effective performance of the entities applying for import in respect of the import of the certain products
in the latest three years;

(4)

to properly consider the newly increased entities applying for import;

(5)

other factors needed to be considered.

Article 7

An entity applying for import shall, when importing certain products, truthfully fill in the “Application Form for Import of Machinery
and Electronic Products” in duplicate, and go through the verification formalities in the institution in charge of foreign trade
and economic cooperation of the province, autonomous region, municipality directly under the Central Government, coastal city open
to the world or special economic zone, as well as the office for the import and export of machinery and electronic products of the
relevant department under the State Council (hereinafter referred to as “the local institution in charge of foreign trade and economic
cooperation” and “the departmental office of machinery and electronic products”. If no office of machinery and electronic products
is established in the department, the entity applying for import shall go through the verification formalities in the institution
in charge of foreign trade and economic cooperation located in the place of its industrial and commercial registration or legal person
registration. After the verification by the local institution in charge of foreign trade and economic cooperation and the departmental
office of machinery and electronic products, the entity applying for import shall apply to the MOFTEC for going through the import
formalities.

Article 8

Upon receipt of the importing entity’s application, the MOFTEC shall, within 30 days, check the application and decide on whether
issuing the “Import License for Machinery and Electronic Products” (as indicated in Attachment 2).

Article 9

The importing entity shall conclude contracts with foreign parties and purchase exchanges with the “Import License for Machinery and
Electronic Products”, and the customs and handle the inspection and release formalities with the “Import License for Machinery and
Electronic Products”.

Article 10

The validity period of the “Import License for Machinery and Electronic Products” and of the modified, changed or extended “Import
License for Machinery and Electronic Products” shall be one year. Where the importing entity needs to change any content in the relevant
items of the “Import License for Machinery and Electronic Products” within the validity period due to a particular reason, it shall
go through the formalities of modifying or changing the license in the original organ issuing the license with the original “Import
License for Machinery and Electronic Products”; the original organ issuing the license shall take back the old license, and shall
print the characters of “(change of certificate)” in the remark column of the newly issued license. Where the amount of actually
used exchange does not exceed 10 % of the planned amount, the “Import License for Machinery and Electronic Products” does not need
to be modified. Where the period of the “Import License for Machinery and Electronic Products” needs to be extended within the validity
period due to any particular reason, the importing entity shall apply to the original organ issuing the license for going through
the formalities of changing the license for extension, and the period of the “Import License for Machinery and Electronic Products”
shall be extended for only once.

Article 11

Where the “Import License for Machinery and Electronic Products” is lost, the importing entity shall immediately report the loss to
the original organ issuing the license. If, after verification by the original organ issuing the license, no bad consequence occurs,
the “Automatic Import License” shall be re-issued.

Article 12

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

(1)

the imported parts of certain products constitute the feature of a whole machine;

(2)

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

(3)

the certain products are imported by enterprises with foreign investment for manufacturing products of domestic sale;

(4)

the certain products are imported in such modes of trade as leasing trade, compensation trade, etc.;

(5)

the certain products are imported in such a manner as gratis aid, donation or present in economic exchanges, etc.;

(6)

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

(7)

other circumstances separately provided for in laws and administrative regulations.

Article 13

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

(1)

the certain products imported in processing trade are used for re-export;

(2)

the certain products are imported into China’s bonded zones or export processing zones for re-export;

(3)

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

(4)

the certain products are imported by foreign-funded enterprises for investment or for their own uses;

(5)

other circumstances separately provided for in laws and administrative regulations.

Article 14

The MOFTEC is responsible for the interpretation of these Detailed Rules. In case of any previous relevant provision inconsistent
with these Detailed Rules, these Detailed Rules shall prevail.

Article 15

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



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

 






CATALOGUE OF THE DEPARTMENTAL RULES THAT THE STATE ECONOMIC AND TRADE COMMISSION HAS DECIDED TO ABOLISH

The State Economic and Trade Commission

Catalogue of the Departmental Rules that the State Economic and Trade Commission has Decided to Abolish

Order [2001] No.24 of the State Economic and Trade Commission

December 4, 2001

In order to fit in with the needs in the reform and opening, the construction of socialist market economic system as well as the new
situation after China’s accession to the World Trade Organization, speed the transformation of governmental functions, and improve
the level of administration in accordance with the law, the State Economic and Trade Commission has cleaned up the present departmental
rules up to the end of 2000. After the clean-up, the State Economic and Trade Commission has made the following decisions:

I.

Eight departmental rules whose main contents do not fit in with the laws, administrative regulations or the guidelines or polices
of the Party or the State, shall be abolished (for the catalogue, see Attachment 1).

II.

Five departmental rules whose applicable period has expired or whose governing objects no longer exist, thus having actually been
invalidated, are hereby declared to be invalidated (for the catalogue, see Attachment 2).

These Decisions shall come into force on the date of its promulgation.

Attachment 1:Catalogue of the Departmental Rules(8 pieces) that the State Economic and Trade Commission has Decided to Abolish

Serial number: 1

Name of the Rules: Interim Measures on Examining and Approving the Establishment of Companies Owned by the Whole People

Promulgation date and promulgator: December 28, 1992; the Office of Economic and Trade under the State Council

Remark: The main contents do not fit in with the Company Law of the People’s Republic of China adopted and promulgated by the Standing
Committee of the National People’s Congress on December 29, 1993.

Serial number: 2

Name of the Rules: Interim Measures on the Supervision and Punishment concerning the Quality of Cotton

Promulgation date and promulgator: May 10, 1994; the State Economic and Trade Commission

Remark: They have been substituted for by the Regulations on the Supervision and Administration of the Quality of Cotton promulgated
by the State Council on August 3, 2001.

Serial number: 3

Name of the Rules: Notice on Trying out the Measures on Increasing in Some Cities State-owned Industrial Enterprises’ Own Production
and Operation Funds

Promulgation date and promulgator: October 13, 1994; the State Economic and Trade Commission

Remark: The main contents do not fit in with the present financial and tax policies of the State.

Serial number: 4

Name of the Rules: Interim Provisions of the State Economic and Trade Commission on the Appointment of Supervisors

Promulgation date and promulgator: July 13, 1995; the State Economic and Trade Commission

Remark: They have been substituted for by the Interim Regulations on Boards of Supervisors of State-owned Enterprises promulgated
by the State Council on March 15, 2000.

Serial number: 5

Name of the Rules: Measures on the Administration of Bidding on Machinery and Electronic Equipment

Promulgation date and promulgator: November 8, 1996; the State Economic and Trade Commission

Remark: They have been substituted for by the Bidding Law of the People’s Republic of China adopted and promulgated by the Standing
Committee of the National People’s Congress on August 30, 1999.

Serial number: 6

Name of the Rules: Interim Measures on the Administration of the Qualification of Institutions of Invitation for Bidding on Machinery
and Electronic Equipment

Promulgation date and promulgator: November 8, 1996; the State Economic and Trade Commission

Remark: They have been substituted for by the Bidding Law of the People’s Republic of China adopted and promulgated by the Standing
Committee of the National People’s Congress on August 30, 1999.

Serial number: 7

Name of the Rules: Measures of the State Economic and Trade Commission on Awarding Scientific Research Achievements

Promulgation date and promulgator: December 22, 1999; the State Economic and Trade Commission

Remark: The main contents do not fit in with the provisions of the State on establishing scientific and technological awards.

Serial number: 8

Name of the Rules: Detailed Rules for the Implementation of the Measures of the State Economic and Trade Commission on Awarding Scientific
Research Achievements

Promulgation date and promulgator: September 19, 2000; the State Economic and Trade Commission

Remark: The main contents do not fit in with the provisions of the State on establishing scientific and technological awards.

Attachment 2:The Catalogue of the Departmental Rules(5 pieces) that the State Economic and Trade Commission has Decided to invalidate

Serial number: 1

Name of the Rules: Provisions on Strengthening the Administration of the Video Tape Recorder Market

Promulgation date and promulgator: August 19, 1991; the Office of Production under the State Council

Remark: The video tape recorder market has been opened, and the work on striking smuggling has been included in the rectification
and regulation of market economic order. The applicable period has expired, and the provisions have actually been invalidated.

Serial number: 2

Name of the Rules: Measures on Inspecting in Piles the Quality of Coal Transited at the Qinhuangdao Port (for Trial Implementation)

Promulgation date and promulgator: December 14, 1992; the Office of Economic and Trade under the State Council.

Remark: The Measures were enacted temporarily mainly with regard to the work of that time on the quality of coal at Qinhuangdao Port,
and they have actually been invalidated.

Serial number: 3

Name of the Rules: Provisions on Inspecting in Piles the Quality of Coal Transited at the Qinhuangdao Port (for Trial Implementation)

Promulgation date and promulgator: December 14, 1992; the Office of Economic and Trade under the State Council.

Remark: The Provisions were enacted temporarily mainly with regard to the work of that time on the quality of coal at Qinhuangdao
Port, and they have actually been invalidated.

Serial number: 4

Name of the Rules: Measures on the Administration of Foreign Trade Transport Plans

Promulgation date and promulgator: September 26, 1996; the State Economic and Trade Commission.

Remark: With the change in the system of administration of foreign trade transport and the strengthening of the port transport capacity,
it is no longer necessary to apply the planed administration on foreign trade transport. The applicable period has expired, and the
measures have actually been invalidated.

Serial number: 5

Name of the Rules: Opinions on Earnestly Strengthening and Improving the Enterprise Administration by Surrounding the Two Major Objects
within Three Years

Promulgation date and promulgator: February 24, 1999; the State Economic and Trade Commission.

Remark: They were directory regulations for work for that phase of time. The applicable period has expired, and the opinions have
actually been invalidated.



 
The State Economic and Trade Commission
2001-12-04

 






CIRCULAR OF THE STATE ADMINISTRATION FOR QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON QUICK AND CONVENIENT INSPECTION AND QUARANTINE MEASURES FOR HIGH/NEW TECHNOLOGICAL PRODUCTS

The State General Administration for Quality Supervision and Inspection and Quarantine

Circular of the State Administration for Quality Supervision, Inspection and Quarantine on Quick and Convenient Inspection and Quarantine
Measures for High/new Technological Products

GuoZhiJianBianHan [2001] No.498

October 31, 2001

The inspection and quarantine bureaus directly under the General Administration:

According to relevant provisions of the State Council and after the investigation and decision of the State Administration for Quality
Supervision, Inspection and Quarantine, the principle of “dealing with special thing in special ways and dealing with urgent matters
in quick manner ” will apply to the inspection and quarantine on import and export of products of large-size manufacturing enterprises
with high/new technology, with a view to supporting the development of high/new technological industry and promoting trade and expanding
export. And the applied quick and convenient inspection and quarantine procedures are set out as follows:

1.

Software companies with annual export of over USD 5 million or integrated circuit enterprises with annual export of over 50 million
dollars, which engage in high/new technology production and whose products have been listed in the Export Catalogue of High/new Technology
Products of China compiled by the Ministry of Science and Technology, the Ministry of Foreign Trade and Economic Cooperation, the
Ministry of Finance, the State Administration of Taxation and the General Administration of Customs, shall be subject to priority
quick and convenient inspection and quarantine procedures on the prerequisite of effective supervision.

2.

Enterprises satisfying the standards stated above can apply for inspection with the local inspection and quarantine authority upon
presenting the Exam and Approval Form of Recording For Large-sized High/new Technological Enterprises Subject to Quick and Convenient
Customs Clearance Procedures after shipment of the imported goods and before their arrival at the port, or after the production of
export goods and before their package, where the name, specification and quantity of the import, or export goods can be confirmed.

3.

The imported high/new technological goods with wooden package shall be quarantined collectively in the designated zone. Where the
goods can be disassembled and transportation will not be affected, if necessary, the goods may be separated from their wooden package
and be released, followed by disposal of the wooden package at a later stage.

4.

Personnel shall be sent, with priority, for process inspection and supervision over high/new technological export of large-sized enterprises
and to assist the enterprises to establish quality guarantee system. Inspected items do not need to be examined again when the enterprises
go through formal export procedure. Large-scale high-tech export can be examined and released directly without repeated check by
the port authority upon presenting relevant documents issued and transmitted by the local authority after being inspected by the
local authority.

5.

Goods in wooden package exported to the US, Canada, EU, Australia and Brazil shall be handled with priority and collectively quarantined
by the inspection and quarantine authority upon application of the enterprises. Quarantine certificate shall be given with priority
to the wooden package within the valid quarantine period.

And problem occurring in implementation shall be reported in time.



 
The State General Administration for Quality Supervision and Inspection and Quarantine
2001-10-31

 






REGULATIONS ON THE ADMINISTRATION OF PRINTING INDUSTRY

The State Council

Regulations on the Administration of Printing Industry

No.315

Regulations on the Administration of Printing Industry was adopted at the 43rd Executive Meeting of the State Council on July 26,
2001 and is hereby promulgated, and shall enter into force on the date of promulgation.

Premier of the State Councils: ZhuRongJi

August 2,2001

Regulations on the Administration of Printing Industry

Chapter 1 General Provisions

Article 1

These Regulations are formulated in order to strengthen the administration of printing industry, to protect the lawful rights and
interests of the operators of printing industry and the public interests of the society, and to promote the socialist spiritual civilization
and material civilization.

Article 2

These Regulations apply to the operations of printing publications, printed matters of package and decoration, and other printed matters.

Publications referred to in these Regulations include newspapers, journals, books, maps, New Year pictures, pictures, wall calendars,
picture albums and the binding and layout, and cover of audio and video products and electrical publications, etc. Printed matters
of package and decoration referred to in these Regulations include trademark signs, advertisement publicity material and the printed
matters of paper, metal, plastic, etc, which are used as product package or decoration. Other printed matters referred to in these
Regulations include documents, data, charts, tickets, certificates, visiting cards, etc. Operations of printing referred to in these
Regulations include operational activities of typesetting, plate making, printing, binding, copying, photographic reproducing, mimeographing,
etc.

Article 3

The operators of printing industry must abide by the relevant laws, regulations and rules, and stress the social benefits. Publications,
printed matters of package and decoration and other printed matters that contain reactionary, pornographic or superstitious contents
and other contents publicly prohibited by state orders shall be prohibited from printing.

Article 4

The administrative department of publishing of the State Council shall be in charge of the supervision and administration of the printing
industry of the whole country. The administrative departments in charge of publishing administration of the people’s governments
at the county level and above (hereinafter referred to as administrative departments of publishing) shall be responsible for the
supervision and administration of the printing industry within their respective administrative areas.

The public security departments, administrative departments and other relevant departments of industry and commerce of the people’s
governments at the county level and above shall be responsible for the relevant supervision and administration of printing industry
within their respective scope of duties.

Article 5

The operators of printing industry shall establish and perfect the system of printing undertaking validation, the system of printing
undertaking registration, the system of printed matter keeping, the system of printed matter delivery, and the system of destroying
the shopworn and defective products produced in printing activities. The specific measures shall be formulated by the administrative
department of publishing of the State Council jointly with the public security department of the State Council. If the operators
find illegal and criminal acts in the printing operations, they shall report timely to the public security departments or the administrative
departments of publishing.

Article 6

The social organizations of printing industry shall, under the guidance of the administrative departments of publishing, adopt self
administration according to their articles of association.

Chapter 2 Establishment of Printing Enterprises

Article 7

The state adopts the license system for printing operations. No unit or individual may undertake printing operations without obtaining
the license for printing operations according to these Regulations.

Article 8

The following conditions are required to be met when establishing a printing enterprise:

1)

having the name and articles of association of the enterprise;

2)

having definite business scope;

3)

having the operating place and necessary operating conditions such as fund and equipment, etc, that meet the needs of the business
scope;

4)

having the organizational framework and personnel that meet the needs of the business scope; and

5)

other conditions provided by the relevant laws and regulations.

When examining and approving the establishment of a printing enterprise, the planning of the state on the total number, structure
and layout of printing enterprises shall be observed in addition to the provisions prescribed in the preceding paragraph.

Article 9

To establish an enterprise engaged in the operations of printing publications, printed matters of package and decoration, and other
printed matters, the applicant shall apply to the administrative department of publishing of the people’s government of the province,
autonomous region or municipality directly under the Central Government where the enterprise is located; and among which, to establish
an enterprise that especially engaged in visiting card printing, the applicant shall apply to the administrative department of the
people’s government at the county level where the enterprise is located. The applicant that is approved after examination may obtain
the license for printing operations; and shall, according to the relevant provisions of the state and with the license for printing
operations, apply to the public security department, and after being approved and obtaining the license for special industry, the
applicant shall, with the license for printing operations and the license for special industry, apply for registration to the administrative
department of industry and commerce, and draw the business license.

No individual may undertake the operations of printing publications, and printed matters of package and decorations; where individuals
undertake the operations of printing other printed matters, they shall go through the procedures for examination and approval according
to the provisions of the preceding paragraph.

Article 10

The administrative department that accepts the application for establishing an enterprise engaged in printing operations shall make
the decision to approve or not within 60 days since the date of receiving the application. If the establishment application is approved,
the license for printing operations shall be issued; if the establishment application is not approved, the applicant shall be notified
and the reasons be explained to him.

The license for printing operations shall indicate the types of the printing operations that the printing enterprise is engaged in.

The license for printing operations shall not be sold, rent, lent or transferred through other means.

Article 11

If an operator of printing industry applies to operate concurrently or to change the printing operations of publications, printed
matters of package or decoration or other printed matters, or to Attachment other operators of the printing industry to itself/himself,
or to establish new operators of printing industry because of merger or division, he shall go through the procedures according to
the provisions of Article 9 of these Regulations.

If the operator of printing industry changes the main registration items such as the name, legal representative or principal, domicile
or operating place, etc, or terminates the printing operations, he shall change or write off the registration with the public security
department and administrative department of industry and commerce that handled the registration, and shall report to the administrative
department that approved the establishment for record.

Article 12

The state allows the establishment of Chinese and foreign equity joint printing enterprises, Chinese and foreign cooperative joint
printing enterprises, and allows the establishment of enterprises with foreign investment engaged in the operations of printing printed
matters of package and decoration. The specific measures shall be formulated by the administrative department of publishing of the
State Council jointly with the department in charge of foreign trade and economy of the State Council.

Article 13

If a unit wishes to establish printing factories (institutes) of its own, it must go through the procedures for registration with
the administrative department of publishing of the people’s government at the county level or above, and shall report to the public
security department for record according to the relevant provisions of the state; if such a printing factory (institute) involves
the printing of state secrets, the unit shall also go through the procedures for registration with the secrecy departments.

Printing factories (institutes) established inside the units may undertake printing operations; those that wish to undertake printing
operations must go through the procedures according to the provisions of this chapter.

Chapter 3 Printing of Publications

Article 14

The state encourages the enterprises engaged in operations of printing publications to print the publications that reveal the new
excellent cultural achievements of China and foreign countries, and lays stress on the printing of traditional cultural elaborate
works and valuable academic works.

Article 15

The enterprises engaged in the operations of publication printing may not print the publications that are prohibited publicly by the
state orders from publishing or the publications published by non-publishing units.

Article 16

To print publications, the unit that entrusts the printing shall sign the printing contract with the printing enterprise according
to the relevant provisions of the state.

Article 17

When accepting the entrustment of the publishing unit to print books and journals, a printing enterprise must validate, receive and
keep the printing trust deed sealed by the publishing unit, and shall, before printing, report to the administrative department of
publishing of the people’s government of the province, autonomous region or municipality directly under the Central Government where
the publishing unit is located; if the printing enterprise accepts the entrustment of the publishing unit that is not located in
the province, autonomous region, municipality directly under the Central Government where the printing enterprise is located to print
books and journals, the printing trust deed shall be reported to the administrative department of publishing of the people’s government
of the province, autonomous region, municipality directly under the Central Government where the printing enterprise is located for
record in advance. The format of the printing trust deed shall be prescribed by the administrative department of publishing of the
State Council uniformly, and shall be uniformly printed by the administrative departments of publishing of the people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government.

When accepting the entrustment of the publishing unit to print newspapers, a printing enterprise must validate the license for newspaper
publishing; when accepting the entrustment of the publishing unit to print additional editions, supplements of newspapers and journals,
the printing enterprise must also validate the documents of administrative departments of publishing in charge that approve the publishing
of the additional editions and supplements.

Article 18

When accepting the entrustment to print publications of internal data, the printing enterprise must validate the printing permission
issued by the administrative department of publishing of the local people’s government at the county level or above. When accepting
the entrustment to print publications of internal data containing religious contents, the printing enterprise must validate the approving
documents of the administrative department in charge of religious affairs of the people’s government of the province, autonomous
region and municipality directly under the Central Government and the printing permission issued by the administrative department
of publishing of the people’s government of the province, autonomous region and municipality directly under the Central Government.

The administrative department of publishing shall make the decision to issue the printing permission or not within 30 days since the
date of receiving the application for printing the publications of internal data or printing the publications of internal data containing
religious contents, and shall notify the applicant of the decision; if no decision is made after the time limit, it is regarded that
the approval has been granted.

Article 19

When accepting entrustment to print foreign publications, a printing enterprise must, by presenting the relevant legal proving documents
of copyright, obtain the approval of the administrative department of publishing of the people’s government of the province, autonomous
region or municipality directly under the Central Government; the foreign publications printed must be transported outside China
and may not be issued or distributed within the borders.

Article 20

A unit that entrusts the printing must print the name, address of the publishing unit, the book number, issue number or edition number,
publishing date or issuing date, the real name and address of the enterprise that accepts the entrustment to print the publications,
and other relevant items on the publications printed in accordance with the relevant provisions of the state.

The printing enterprise shall keep a sample of the publication printed according to the entrustment for checking-up for 2 years since
the date of completing the printing of the publication.

Article 21

A printing enterprise may not illegally print publications of others without permission, may not sell, print more or accept the entrustment
of a third party to print more of the publications printed according to the entrustment without authorization, may not sell, rent,
lend or transfer by other means the paper types and printing negatives of the publication to other units or individuals.

Article 22

A printing enterprise may not seek subscription for or sell the publications, and may not counterfeit or usurp other’s name to print
or sell the publications.

Chapter 4 Printing of Printed Matters of Package and Decoration

Article 23

An enterprise engaged in the printing of printed matters of package and decoration may not print counterfeited, falsely registered
trademark signs, and may not print the advertisement publicity material and printed matters used as product package and decoration
that are prone to misleading the consumers.

Article 24

When accepting entrustment to print registered trademark signs, a printing enterprise shall validate the copy of the Trademark Registration
Certificate signed by the administrative department of industry and commerce at the county level of the place where the person who
registered trademark lives, and shall check the registered trademark pattern provided by the trustor; when accepting the entrustment
of the person who is licensed to use the registered trademark to print registered trademark signs, the printing enterprise shall
also validate the licensing contract of the use of registered trademark. The printing enterprise shall keep the copy of the Trademark
Registration Certificate signed by the administrative department of industry and commerce, the registered trademark pattern, and
the copy of the licensing contract of the use of registered trademark it has validated and checked for 2 years for checking-up.

If the state has other provisions on the printing of registered trademark signs, the printing enterprise shall also abide by those
provisions.

Article 25

When accepting entrustment to print advertisement publicity material, and printed matters used as product package and decoration,
a printing enterprise shall validate the business license of the unit or the resident identity cards of the individuals that entrusted
the printing; when accepting the entrustment of advertisement operators to print advertisement publicity material, the printing enterprise
shall also validate the qualification certificates of advertisement operations.

Article 26

When accepting entrustment to print printed matters of package and decoration, a printing enterprise shall hand over all of the finished
products, half-finished products and wasters of the printed matters, and the printing negatives, paper types, photographic plates,
manuscripts, etc, to the unit or individual that entrusted the printing, and may not keep those things without authorization.

Article 27

When accepting entrustment to print foreign printed matters of package and decoration, a printing enterprise must report to the administrative
department of publishing of the people’ s government of the province, autonomous region, municipality directly under the Central
Government of the place where the enterprise is located for record in advance; and the printed matters of package and decoration
must be transported outside China and may not be sold within the borders.

Chapter 5 Printing of Other Printed Matters

Article 28

The printing of documents, material, charts, etc, that are marked with secrecy shall be handled according to the relevant laws, regulations
and rules of the state.

Article 29

To print notices, announcements, employee’s cards for important activities, traffic permits, or tickets circulated in the society,
the unit that entrusts the printing must present the certificate of the department in charge, and shall go through the procedures
for printing permission with the public security department of the place where the printing enterprise is located, and shall print
at the printing enterprise designated by the public security department. The printing enterprise designated by the public security
department must validate the certificate of the department in charge and the certificate of printing permission of the public security
department, and shall keep the copy of the certificate of the department in charge and the copy of the certificate of printing permission
of the pubic security department for 2 years for checking-up; and may not entrust others to print the printed matters mentioned above.

To print the value instruments or unvalued instruments used inside the organs, organizations, armies, enterprises or institutions,
or the special certificates such as the letters of introduction, employee’s cards, member’s cards, passes, degree certificates, academic
background certificates or other academic certificates, etc, that bear the unit names, the unit that entrusts the printing must provide
the certificate of printing entrustment. And the printing enterprise must validate the certificate of printing entrustment.

The printing enterprise may not keep the samples, specimen pages of the printed letters prescribed in the preceding two paragraphs;
if the samples, specimen pages do need to be kept because of business reference needs, the approval of the unit that entrusted the
printing shall be obtained, and the countermark of “sample”, “specimen page” shall be sealed on the printed letters kept which shall
be preserved in good conditions and may not be lost.

Article 30

When accepting entrustment to print articles for religious use, a printing enterprise must validate the approving documents of the
administrative department in charge of religious affairs of the people’ s government of the province, autonomous region, municipality
directly under the Central Government and the certificate of printing permission issued by the administrative department of publishing
of the people’ s government of the province, autonomous region, municipality directly under the Central Government; the administrative
departments of publishing of the people’ s government of the province, autonomous region, municipality directly under the Central
Government shall make the decision on whether to issue the certificate of printing permission or not within 10 days since the date
of receiving the application for printing articles for religious use, and shall notify the applicant of the decision; if no decision
is made after the time limit, it is regarded that the approval is granted.

Article 31

Individuals engaged in the operations of printing other printed matters may not print the documents, material, charts, etc that are
marked with secrecy, may not print notices, announcements, employee’s cards for important activities, traffic permits, or tickets
circulated in the society, may not print the valued or unvalued instruments used inside the organs, organizations, armies, enterprises
or institutions, may not print the special certificates such as letters of introduction, employee’s cards, member’s cards, passes,
degree certificates, academic background certificates, or other academic certificates, and may not print articles for religious use.

Article 32

Those accepting entrustment to print other foreign printed matters must report to the administrative departments of publishing of
the people’ s government of the province, autonomous region, municipality directly under the Central Government of their locations
for record; and those printed matters must be transported outside China and may not be sold within the borders.

Article 33

No printing enterprise or individual engaged in the operations of printing other printed matters may illegally print the other printed
matters of others without permission, neither may they sell, print more or accept the entrustment of a third party to print more
of the other printed matters printed according to entrustment without authorization, or sell, rent, lend or transfer the paper types
and printing negatives of the other printed matters printed according to entrustment to other unit or individual.

Chapter 6 Punishment Rules

Article 34

Those, in violation of the provisions of these Regulations, establishing printing enterprises without authorization or undertaking
the printing operations without authorization shall be banned by the public security departments and the administrative departments
of industry and commerce according to the legal authority of the departments, and the printed matters and illegal earnings, and the
special tools, equipment by which the illegal acts were conducted shall be confiscated, a fine of more than 5 times and less than
10 times of the earnings from illegal operations shall also be imposed on them if the earnings from illegal operations are 10,000
Yuan or more; a fine of more than 10, 000 Yuan and less than 50,000 Yuan shall also be imposed on them if the earnings from illegal
operations are less than 10,000 Yuan; and the criminal responsibilities shall be investigated into if a crime is constituted.

The printing factories (institutes) established inside the units without going through the procedures according to the provisions
of Chapter 2 of these Regulations shall be punished according to the provisions of the preceding paragraph, if they undertake printing
operations.

Article 35

If an operator of the printing industry, in violation of the provisions of these Regulations, has committed any of the following acts,
the administrative department of publishing of the local people’s government shall order him to stop the illegal act, order him to
stop business for internal rectification, confiscate the printed matters and illegal earnings, and shall impose a fine of more than
5 times and less than 10 times of the illegal earnings on him if the illegal earnings are 10, 000 Yuan or more; a fine of more than
10,000 Yuan and less than 50,000 Yuan shall be imposed on him if the illegal earnings are less than 10, 000 Yuan; the former license-issuing
organ shall revoke the license if the circumstances are serious; and criminal responsibilities shall be investigated into according
to law if a crime is constituted.

1)

without obtaining the permission of the administrative department of publishing, operating concurrently or changing the printing operations
of publications, printed matters of package and decoration or other printed matters without authorization, or annexing other operators
of the printing industry to itself/himself without authorization;

2)

having not gone through the procedures according to the provisions of these Provisions when establishing new operators of the printing
industry because of merger or division; or

3)

selling, renting, lending or transferring the license for printing operations by other means.

Article 36

If an operator of the printing industry prints the publications, printed matters of package and decoration, or other printed matters
that contain the contents prohibited by Article 3 of these Regulations, and this he is fully aware of or should have known, or prints
the publications prohibited publicly by state orders or the publications published by non-publishing units, the administrative department
of publishing and the public security department of the local people’s government at the county level or above shall order him to
stop business for internal rectification, confiscate the printed matters and illegal earnings, and a fine of more than 5 times and
less than 10 times of the earning from illegal operations shall be imposed on him if the earning from illegal operations are 10,
000 Yuan or more; if the earnings from illegal operations are less than 10, 000 Yuan, a fine of more than 10, 000 Yuan and less than
50, 000 Yuan shall also be imposed on him; the former license-issuing organ shall revoke the license if the circumstances are serious;
and the criminal responsibilities shall be investigated into according to law if a crime is constituted.

Article 37

If an operator of the printing industry has committed any of the following acts, the administrative department of publishing and the
public security department of the local people’s government at the county level or above shall order him to make corrections and
give him warnings according to their legal authorities; if the circumstances are serious, they shall order him to stop business for
internal rectification, or the former license-issuing organ shall revoke the license:

1)

having not established the system of printing undertaking validation, the system of printing undertaking registration, the system
of printed matter keeping, the system of printed matter delivery, and the system of destroying the shopworn or defective products
produced in the printing activities;

2)

failing to timely report to the public security department or administrative department of publishing when finding illegal and criminal
acts in the printing operations;

3)

having not reported to the administrative department that formerly approved the establishment when changing the main registration
items such as the name, legal representative or principal, domicile or operating place, etc, or when terminating the printing operations;
and

4)

having not kept the material for checking-up according to the provisions of these Regulations.

If a unit, in violation of the provisions of these Regulations, establishes internal printing factories (institutes) without going
through the procedures for registration with the administrative department of publishing or secrecy department of the local people’s
government at the county level or above, and without reporting to the public security department for record according to the relevant
provisions of the state, the administrative department of publishing, the secrecy department, the public security department of the
local people’s government at the county level or above shall order it to make corrections and give it warnings according to their
legal authorities; and shall order it to stop business for internal rectification if the circumstances are serious.

Article 38

If an enterprise engaged in the operations of printing publications has committed any of the following acts, the administrative department
of publishing of the local people’s government at the county level or above shall give it warnings and confiscate its illegal earnings,
if the earnings from illegal operations are 10,000 Yuan or more, a fine of more than 5 times and less than 10 times of the earnings
from illegal operations shall be imposed on the enterprise; if the earnings from illegal operations are less than 10,000 Yuan, a
fine of more than 10,000 Yuan and less than 50,000 Yuan shall be imposed on the enterprise; if the circumstances are serious, the
enterprise shall be ordered to stop business for internal rectifications, or the former license-issuing organ shall revoke the license;
if a crime is constituted, the criminal responsibilities shall be investigated into:

1)

when accepting the entrustment of other unit/ enterprise, having not validated the printing trust deed, the relevant certificates
or printing permission certificate, or having not submitted the printing trust deed to the administrative department of publishing
for record according to the provisions of these Regulations;

2)

counterfeiting or usurping the name of other unit/ enterprise to print publications;

3)

illegally printing the publications of other unit/ enterprise without permission;

4)

illegally printing more or selling the publications printed according to entrustment;

5)

seeking subscription for or selling the publications;

6)

selling, renting, lending or transferring through other means the paper type and printing plates of the publications printed according
to the entrustment of the publishing units without authorization; and

7)

accepting entrustment to print foreign publications without approval or having not transported all of the foreign publications printed
outside China.

Article 39

If an enterprise engaged in the operations of printing printed matters of package and decoration has committed any of the following
acts, the administrative department of publishing of the local people’s government at the county level or above shall give it warnings
and shall confiscate its illegal earnings, if the earnings from illegal operations are 10,000 Yuan or more, a fine of more than 5
times and less than 10 times of the earnings from illegal operations shall be imposed on the enterprise; if the earnings from illegal
operations are less than 10,000 Yuan, a fine of more than 10,000 Yuan and less than 50,000 Yuan shall be imposed on the enterprise;
if the circumstances are serious, the enterprise shall be ordered to stop business for internal rectifications or the former license-issuing
organ shall revoke the license; if a crime is constituted, the criminal responsibilities shall be investigated into:

1)

when accepting the entrustment to print registered trademark signs, having not validated or checked the copy of the Trademark Registration
Certificate signed by the administrative department of industry and commerce, the registered trademark patterns or the copy of the
licensing contract of the use of registered trademark;

2)

when accepting the entrustment to print advertisement publicity material or the printed matters used as product package and decoration,
having not validated the business license of the unit or the resident identification card of the individual that entrusted the printing,
or when accept

1...456...15Page 5 of 15

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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