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CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON TAX ISSUES RELATED TO THE IMPLEMENTATION OF THE DECISION OF THE CPC CENTRAL COMMITTEE AND STATE COUNCIL ON STRENGTHENING TECHNICAL INNOVATION, DEVELOPMENT OF HIGH-TECH AND REALIZATION OF ITS INDUSTRIALIZATION

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation on Tax Issues Related to the Implementation of the Decision
of the CPC Central Committee and State Council on Strengthening Technical Innovation, Development of High-tech and Realization of
its Industrialization

CaiShuiZi [1999] No.273

November 2, 1999

The General Administration Customs, Finance Departments and the State and Local Tax Bureaus of provinces, autonomous regions, municipalitie
directly under the Central Government and municipalities separately listed on state plans, Xinjiang Production and Construction Corps:

In order to implement the spirit of the Decision of the CPC Central Committee and State Council on Strengthening Technical Innovation,
Development of High-tech and Realization of Its Industrialization (ZhongFa [1999] No.14), encourage technical innovation and the
development of the new and high-tech enterprises, the circular concerning tax matters is made as follows:

1.

Value-added Tax

(1)

For general taxpayers that sell computer software products developed and produced on their own, the part of the actual tax burden
exceeding 6 percent shall all be refunded right after its collection after the tax is levied according to the 17 percent statutory
tax rate.

(2)

Small-scale taxpayers of production enterprises which produce and sell computer software products shall pay the value-added tax according
to the 6 percent tax rate; small-scale taxpayers of commercial enterprises which sell computer software products shall pay the value-
added tax according to the 4 percent tax rate, and the tax authorities may issue the special value-added tax receipts on behalf of
them in light of the different tax rates.

(3)

With regard to the software products sold together with the computer network, computer hardware and machinery equipment, its sales
amount shall be separately calculated. If it is not calculated separately or the calculation is unclear, its value-added tax shall
be levied according to the tax rate applicable to the computer network, computer hardware and machinery equipment and the tax shall
not be refunded.

(4)

Computer software products refer to the storage medium which record the computer programs and its related files (including the soft
disk, hard disk, light disk and etc.). Business tax shall be levied on the computer software registered with the State Copyright
Bureau whose copyright and ownership are transferred together at its sale. No value- added tax shall be collected.

2.

Business Tax

(1)

The income derived from technology transfer, technology development and their related technology consultation and technology service
offered by the units or individuals (including enterprises with foreign investment, the research and development centers invested
and set up by foreign businesses, foreign enterprises and foreign nationals) shall be exempt from the business tax.

Technology transfer refers to the act of a transferor to transfer non- gratuitously the ownership or the right of use to its own patent
or non- patented technology to another person.

Technology development refers to the act of a developer, upon entrustment of another person, to research into and develop new technology,
new product, new technique or new material, as well as the system thereof.

Technology consultation refers to the provision of reports concerning a specific technological project on such subjects as feasibility
study, technical projection, special technological investigation, and analysis and evaluation.

Technology consultation and technology services related to the technology transfer and technology development refer to the provision
of technology consultation and technology services by the transferor (or the agent) to help the transferee (or the principal) master
the transferred (or developed upon entrustment) technology according to the provisions of the technological transfer or development
contact. In addition, the payment for the technology consultation and technology services is written on the same invoices with that
for technology transfer ( or development).

(2)

The turnover from technology transfer or development which is exempt from the business tax

a.

Whoever provides existing technology or development results with the drawing sheet or materials as the carrier, its turnover exempt
from the tax shall be all the prices paid by the other party as well as the expenses not included in the prices.

b.

Whoever provides existing technology or development results with the goods as the carrier such as the sample, sample machine or equipment,
its turnover exempt from the tax shall not include the value of the goods. The goods such as the sample, sample machine or equipment
shall be subject to the value-added tax in accordance with relevant provisions. The transferor (or the agent) shall separately indicate
the value of the goods and that of technology transfer or development. If the price of the goods is obviously undervalued, the competent
taxation authorities shall appraise and fix the price for taxation in accordance with the provisions of Article 16 of the Rules
for the Implementation of the Provisional Regulations of the People’s Republic of China on Value- added Tax.

c.

The parent of microbial bacterium spawn and the new animal and plant varieties provided to supplement the biological technology shall
be included in the turnover exempt from the business tax. But the microbial bacterium spawn sold in a large scale shall be subject
to the value- added tax.

(3)

The procedure for examination and approval of the tax exemption

a.

A taxpayer engaged in technology transfer or development who applies for exemption of business tax shall, with the written technological
transfer or development contact at hand, go to the administrative department of science and technology at the provincial level in
the place where the taxpayer is located for identification. Then the taxpayer shall, with the relevant written contact and the opinions
of the competent department of science and technology on examination and verification thereof at hand, report it to the local competent
taxation authorities at the provincial level for examination and approval.

If the transfer of technology by foreign enterprises and foreign individuals from outside our territory to the territory of China
needs to be exempt from business tax, the technological transfer or development contact in writing, the written application of the
taxpayer or its/his agent, and the certificate of examination and verification issued by the administrative department of science
and technology at the provincial level in the place where the transferee is located shall, after examination and verification by
the competent taxation authorities at the provincial level, be submitted to the State Taxation Administration for approval.

b.

Before it is examined and approved by the department of science and technology and the department of taxation, the taxpayer shall
first pay the business tax in accordance with relevant provisions. After it is examined and approved by the department of science
and technology and the department of taxation, the business tax to be paid later shall be set off by the tax already paid. If no
taxable act of business tax takes place within the coming year, or the taxable amount is not enough to set off that of exemption,
the taxpayer may apply to the tax authorities in charge of the collection for refund of the tax.

3.

Income tax

(1)

Where the social forces including the enterprises (with the exception of enterprises with foreign investment and foreign enterprises),
institutions, social organizations, individuals and private businesses provide funds to support non-associated scientific research
institutions and schools of higher education to research into and develop new products, new technology and new technique, the research
and development funds derived therefrom shall be subject to examination, verification and determination by the tax authorities in
charge. The supporting funds may totally be deducted from its current year’s taxable income. (Another version of translation: With
respect to the research and development funds derived from research and development of new products, new technology and new technique
conducted by non-associated scientific research institutions and schools of higher education with the financial support of the social
forces including the enterprises (with the exception of enterprises with foreign investment and foreign enterprises), institutions,
social organizations, individuals and private businesses, the supporting funds may, after examination and determination by the tax
authorities in charge, totally be deducted from its current year’s taxable income.) If its current year’s taxable income is not enough
to set off its supporting funds, it may not be carried forward to set off.

The non-associated scientific research institutions and schools of higher education refer to those scientific research institutions
and schools of higher education not subordinated to or invested by the supporting enterprises and the results of their scientific
research are not only provided to the said enterprises.

The financial support provided by enterprises to their subordinated scientific research institutions and schools of higher education
for the funds of research and development may not set off their taxable income.

Where enterprises and other social forces provide the scientific research institutions and schools of higher education with funds
for research and development and apply for set-off of the taxable income, they shall provide the project plan for research and development,
and the certificate of receipt of funds issued by the scientific research institutions and schools of higher education in addition
to other relevant materials required by the tax authorities. If they are unable to provide the relevant materials, the tax authorities
may not accept.

(2)

The actual pay-roll of a software development enterprise may be deducted from its taxable income.

4.

Income tax for enterprises with foreign investment and foreign enterprises

Where an enterprise with foreign investment or a foreign enterprise provides the scientific research institutions and schools of higher
education with funds for research and development, the funds may totally be deducted from the taxable income of the supporting enterprise
by reference to measures for taxation on donation provided by the Income Tax Law of the People’s Republic of China for Enterprises
with Foreign Investment and Foreign Enterprises.

5.

Tax on import & export

(1)

The equipment for self-use imported by enterprises (including enterprises with foreign investment and foreign enterprises) to make
products listed in the Catalogue of the State New & High-tech Products and the technology, accessories and the spare parts imported
together with the equipment according to the contract shall be exempt from customs duty and the import-linked value-added tax with
the exception of those commodities included in the Catalogue of Imports Not Exempt from Tax for Domestic Investment Projects provided
by the Document GuoFa [1997] No. 37.

(2)

Where enterprises (including enterprises with foreign investment and foreign enterprises) introduce the advanced technologies listed
in the Catalogue of the State New & High-tech Products, the software charges paid to a person outside our territory as provided by
the contract shall be exempt from customs duty and the import-linked value-added tax.

Software charges refer to the patent royalties, trademark fees, and the expenses for technical know-how, computer software, materials
and etc. paid by the taxpayer of imports to the seller outside of our territory for the manufacturing, use, publication, distribution
and broadcasting of the imports’ technology and contents within our territory.

(3)

With respect to the products listed in the Catalogue for Export of China’s New & High-tech Commodities issued by the Ministry of Science
and Technology and the Ministry of Foreign Trade and Economic Cooperation, if the rate of tax refunded for its export is lower than
that of tax levied, the tax levied may, subject to the examination and verification of the State Administration of Taxation, be refunded
according to the rate of tax levied and the current provisions for administration of tax refund for export after the product is exported.

6.

Scientific research institutions’ transformation of mechanism

(1)

The scientific research institutions directly subordinated to the central authorities and those subordinated to the provincial and
prefecture (municipal) authorities shall, after their transformation of mechanism, be exempt from the income tax for enterprises
and the tax on use of urban land within the five years from 1999 to 2003.

The scientific research institutions mentioned in this article do not include those with mechanism already transformed or merged with
enterprises as well as all those engaged in social science research.

(2)

The scientific research institutions which enjoy the above-mentioned preferential tax policies shall report it to the local tax authorities
in charge with the enterprises’ industrial and commercial registration information obtained after their transformation of mechanism
and go through relevant procedures for tax reduction or exemption according to the provisions.

7.

This circular shall enter into force as of October 1, 1999.



 
The Ministry of Finance, the State Administration of Taxation
1999-11-02

 






CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE EXECUTION OF THE CIRCULAR CONCERNING THE RELEVANT ISSUES OF SOFTWARE EXPORTS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on the Execution of the Circular Concerning the Relevant Issues of Software
Exports

HuiFa [2001] No.28

February 22, 2001

The sub-administrations of the State Administration of Foreign Exchange; the departments of foreign exchange administration of Beijing
and Chongqin; and the sub-administrations of Dalian, Qingdao, Ningbo, Xiamen and Shenzhen:

In order to promote the software export enterprises to export their products and earn foreign exchange income, the relevant issues
of the execution of item 7) of Article 1 of the Circular Concerning the Relevant Issues of Software Exports (WaiJingMaoJiFa [2000]
No.680 ) (hereinafter referred to as the Circular) promulgated jointly by the Ministry of Foreign Trade and Economic Cooperation,
the Ministry of Information Industry, the State Administration of Taxation, the General Administration of Customs, the State Administration
of Foreign Exchange and the State Administration of Statistics are hereby defined as follows:

1.

The domestic-funded software enterprises of self-management export (hereinafter referred to as “enterprises”) that meet the conditions
for account opening as provided by the Circular shall, when applying to the foreign exchange administrations for opening accounts
of foreign exchange settlement, provide the “Certificate of Cognizance of Software Enterprise” issued by the competent department
under the Ministry of Information Industry, apart from providing the relevant materials as provided for in the Procedures for the
Keeping of Limited Amount of Foreign Exchange Income by Domestic-funded Enterprises.

2.

When making the examination and verification of account opening of an enterprise, the foreign exchange administration shall examine
and verify whether the enterprise is in the “List of Honorable Enterprises”, and shall determine the maximum limit of the account
on the basis of 15% of the sum of cancellation after verification of export earnings in foreign exchange of last year issued by the
foreign exchange administration of the place where the enterprise is located. The sum cancelled after verification of export earnings
in foreign exchange that is used to determine the limit shall be kept together with the materials for account opening, for the purpose
of check and verification.

3.

The sub-administrations shall strictly take the sum cancelled after verification of export earnings in foreign exchange of last year
that actually occurred to the enterprise as the base, and determine the limit of the account of foreign exchange settlement according
to the prescribed proportion. The limit may not be broken without the approval of the general administration.

The sub-administrations shall transmit this Circular to their branches as soon as possible after receiving it.



 
The State Administration of Foreign Exchange
2001-02-22

 






INTERIM GENERAL RULES CONCERNING INSPECTION OF ENTRY AND EXIT TRAINS, TRAIN CREW, PASSENGERS AND LUGGAGE

Category  PUBLIC SECURITY Organ of Promulgation  The Government Administration Council Status of Effect  In Force
Date of Promulgation  1951-05-24 Effective Date  1951-05-24  


Interim General Rules Concerning Inspection of Entry and Exit Trains, Train Crew, Passengers and Luggage



(Promulgated by the Government Administration Council on May 24, 1951)

    1. These General Rules are formulated to unity the inspection work
relating to the entry and exit trains, train crew, passengers, luggage, and
articles passengers carry along in order to ensure the safety of driving, to
maintain the public order in the border areas, to prevent epidemic diseases
from spreading, and to suppress smuggling.

    2. The following government organs shall, in accordance with their
respective competent scope of operations, carry out inspections, at stations
in the country’s border areas, of the entry and exit trains, train crew,
passengers, luggage, and articles passengers carry along.

    (1) Public security organs: It shall be responsible for inspecting
passengers’passports and other certificates, for safeguarding the operations
on trains, and for maintaining the public order in the country’s border areas;
shall work in cooperation with the Customs Office in inspecting trains, train
crew, passengers, luggage, and articles passengers carry along; and, when
necessity arises, shall inspect certain suspicious passengers separately.

    (2) Quarantine organs: It shall be responsible for inspection and
prevention of diseases and epidemic diseases on trains and among train crew
and passengers.

    (3) Customs offices: It shall be responsible for inspecting trains, train
crew, passengers, luggage, and articles passengers carry along, for smuggled
goods; and when necessary, it shall inspect passengers suspicious of smuggling
individually.

    Other government organs, unless specially authorized by the Government
Administration Council, are not permitted to conduct inspections.

    3. To carry out the inspection of the entry and exit trains, train crew,
passengers, luggage, and articles passengers carry along, the railway
authorities shall notify all inspection units concerned to effect a
coordinated inspection at a specified time in accordance with the stipulations
in the preceding article; if no special situation occurs, the inspection shall
be made, in principle, just once.

    4. In principle, inspections are not carried out on board the trains; when
necessity arises, however, a coordinated inspection shall be carried out on
board the trains by the public security organ, the Customs office and the
quarantine organ; the working procedures for such a coordinated inspection
shall be worked out by the organs concerned through consultation.

    5. The inspection of foreign diplomatic personnel shall be carried out in
accordance with the pertinent provisions promulgated by the Ministry of
Foreign Affairs under the Central People’s Government.

    6. In principle, inspections are not carried out on board the domestic
trains, except by the public security organ; however, inspections shall be
carried out by the organs concerned through the railway authorities under
either of the following two circumstances:

    (1) when trains running from or to epidemic-stricken areas, or when
epidemic cases or deaths from epidemic diseases occur on the train, and the
quarantine organ considers it necessary to make an inspection;

    (2) when the train is running close to border area where smuggling is
rampant, or when suspicious cases of smuggling arise and the Customs office
considers it necessary to make an inspection.

    7. At all stations on the country’s borders, the public security organ
shall be responsible for calling and presiding over regular meetings on the
coordination in inspection work; and all organs concerned shall discuss
problems that crop up during the inspections, and exchange views on how to
coordinate their actions, to work in close cooperation under division of
competence, and to simplify operative procedures.

    8. Government inspection personnel shall wear uniforms and the badges and
armbands issued by their respective organs.

    9. The term inspection, as mentioned in these General Rules, refers to the
inspection provisions lists in the various items in Article 2 of these General
Rules. Other Provisions of inspection, such as the control of cargo shipment
and the inspection and examination of goods for taxation as executed by the
Customs office, shall be executed by various organs concerned in accordance
with the existing relevant provisions.

    10. All the inspection organs concerned under the Central Government
shall, in accordance with their respective competent scope of operations, send
immediately to the Ministry of Railways the regulations and decrees concerning
the prohibitions, restrictions and bans to be imposed on the railway
transportation of passengers and cargos; and the same procedure shall be
followed when amendments are made.

    11. These General Rules shall go into effect after their promulgation by
the Government Administration Council. If any former inspection procedures
adopted in various regions conflict with these General Rules, the former shall
be abolished.





PROCEDURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE SUPERVISION OF SMALL VESSELS FROM AND TO HONG KONG AND MACAO

RULES GOVERNING SUPERVISION & CONTROL OVER EXPORTATION OF EXHIBITION GOODS BY THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

ENVIRONMENTAL PROTECTION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

PROVISIONAL REGULATIONS OF THE BANK OF CHINA OF FOREIGN EXCHANGE CERTIFICATE

RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON APPROVING THE INTERIM PROVISIONS OF THE STATE COUNCIL FOR VETERAN CADRES TO LEAVE THEIR POSTS IN ORDER TO REST

Resolution of the Standing Committee of the National People’s Congress on Approving the Interim Provisions of the State Council for
Veteran Cadres to Leave Their Posts in Order to Rest*
(Adopted on September 29, 1980)

____________________ 

*Lixiu ganbu, or “cadres who leave their posts in order to rest,” refers to a specific group of cadres who retire with preferential
treatment. — Trans. 

 

The 16th Meeting of the Standing Committee of the Fifth National People’s Congress decides to approve the Interim Provisions of the
State Council for Veteran Cadres to Leave Their Posts in Order to Rest, which shall be promulgated for implementation by the State
Council. 

Appendix: 

Interim Provisions of the State Council for Veteran Cadres to  

Leave Their Posts in Order to Rest 

(Approved at the 16th Meeting of the Standing Committee of the National People’s Congress on September 29, 1980 and promulgated by
the State Council for implementation on October 7, 1980) 

Through many years of arduous struggle and hard work in revolution and socialist construction, our veteran cadres have made significant
contributions to the country and the people.  They are valuable assets to the Party and the State.  However, as they are
advancing in age, more and more of them are becoming unable to carry on their  regular work. Following the Party’s and the State’s
tradition of showing concern for and taking good care of veteran cadres, the aged and infirm veteran cadres who can no longer do
regular work are being allowed to leave their posts in order to rest (hereinafter referred to as “veteran cadres”), while being held
in high esteem politically and having their well-being well looked after. This is an important measure for the reform and improvement
of our country’s cadre system and an embodiment of the superiority of the socialist system.  It not only benefits the health
of the veteran cadres while enabling them to continue to play a useful role but also facilitates the promotion and growth of younger
cadres.  Hence, the following provisions are formulated. 

Article 1  Aged and infirm cadres in the following categories who can no longer do regular work shall leave their posts in order
to rest: those who joined the revolution during the First or the Second Revolutionary Civil War period; those who joined the revolution
during the War of Resistance Against Japanese Aggression  and now hold a post of deputy county head or other post corresponding
to deputy county head or whose rank is Grade 18 or higher; and those who joined the revolution before the founding of the People’s
Republic of China and now hold a post of deputy prefectural commissioners or other post corresponding to deputy prefectural commissioners
or whose rank is  Grade 14 or higher. 

Cadres who have already retired but meet the qualifications mentioned above shall likewise be treated as veteran cadres. 

Article 2  Approval for cadres to leave their posts in order to rest shall be obtained by their work units from the relevant
departments with the power of appointment and removal of such cadres.  

Article 3  After leaving his post, a veteran cadre shall in general be helped to settle in the locality where he has been working
or in his native place or in the place where his spouse lives. The State shall encourage veteran cadres to settle in the countryside
or in small or medium-sized cities or towns. 

As regards those who wish to leave the province in which they have been working to go to another province, arrangement shall be made
by the provinces concerned through consultation. The number of cadres to be allowed to settle in Beijing, Tianjin or Shanghai shall
be strictly controlled. In the case of cadres who left the interior to work on the Qinghai-Tibet Plateau and who wish to go back
to the interior after retirement, the provinces, autonomous regions and municipalities concerned shall help them settle accordingly. 

Article 4  The affairs of veteran cadres who plan to settle in the locality where they have been working shall be managed by
their original units. Those who plan to settle in other places (including army cadres who have been transferred to civilian work)
shall have their affairs managed by the cadre or personnel departments in the new places.  Small rest homes may be built when
necessary. 

Article 5  After leaving their posts, veteran cadres shall continue to receive their former standard wages (including reserved
wages), and their material benefits shall remain unchanged. As for other welfare benefits, they shall enjoy the same treatment as
active cadres in their locality who hold the same ranks.  Such treatment shall be fully guaranteed.  Veteran cadres shall
also be given priority in medical care, housing, transport and the supply of daily necessities. 

Veteran cadres who became disabled in line of duty and who need assistance in their daily lives may in general receive for nursing
a sum equivalent to the standard wage of a Grade 2 worker at an ordinary engineering enterprise in the locality.  Those who
for long cannot take care of themselves at all for reasons such as paralysis, may be granted an appropriate amount of money for nursing. 
Subsidies may be extended to those who need medical equipment but cannot afford to buy it. 

If cadres who relocate to other provinces after leaving their posts genuinely need to build new houses, their original work units
shall allocate funds to the new areas where they settle, and these areas shall be responsible for building houses for them. 

Cadres’ rest homes or departments directly in charge of a large number of veteran cadres shall be provided with an adequate number
of cars for the convenience of the veteran cadres. 

Article 6  Veteran cadres shall be placed on a list separate from the regular staff of their original units. Their various necessary
expenses shall be borne by their original units. In the case of cadres who have relocated to other provinces, their original units
shall appropriate funds to the cadre or personnel departments of the new places to pay for their expenses. Medical expenses of relocated
veteran cadres shall still be disbursed by their original units; if such expenses have already been paid by the new places, the cadre
or personnel departments there shall include those expenses in their budgets. 

Cadres who relocate shall receive a lump sum of RMB 150 yuan from their original units as a subsidy, and those who settle in production
brigades in the countryside shall receive 300 yuan. When veteran cadres and their immediate family members whom they provide for
relocate, their train or ship tickets, hotel expenses, luggage transportation fees and food subsidies on the journey shall be disbursed
in accordance with the provisions for travelling subsidies to cadres in office. 

After leaving their posts, veteran cadres shall continue to enjoy home leave according to State provisions. In addition, they may
pay one visit to their parents, children or native places, with their round-trip train or ship tickets paid by the State. 

Article 7  When a veteran cadre dies, the burial subsidy, pension for his family and living allowances for his surviving dependants
in financial difficulty shall be granted the same as for active cadres of the same rank.  

Article 8  Leaders and relevant departments at all levels shall concern themselves with the political and cultural life of veteran
cadres and take concrete measures to enable them to read documents and listen to reports like active cadres of the same ranks so
that they may be timely informed about current principles and policies of the Party and the State. Leaders and departments should
hold regular meetings with veteran cadres or visit them, taking heed of their opinions and demands. 

Article 9  Attention shall be giving to developing the veteran cadres useful abilities. Necessary conditions shall be provided
to those who are able to write or dictate revolutionary memoirs. They shall be encouraged to carry forward the revolutionary tradition,
concern themselves with State affairs and the people’s life, report on problems, make suggestions and do such work as is within their
power. 

Article 10  All localities and departments shall give more effective guidance in the work concerning veteran cadres. Departments
at and above the county level shall assign one leading comrade to be in charge of this work. Cadre or personnel departments and units
where there are such veteran cadres shall, when conditions permit, appoint full-time or part-time cadres to make a success of this
work in close cooperation with other relevant departments. It is essential to conduct political and ideological education among those
who are involved in this work, so that they will try their best to help quickly solve the practical problems confronted by veteran
cadres, imparting to them the warm feelings of the Party and the State. Healthy tendencies to hold veteran cadres in high esteem
and take good care of them should be cultivated among the cadres and the masses. 

Article 11  These Provisions shall go into effect as of the month they are issued.  They shall be applicable to cadres
working in Party and government departments, people’s organizations, State enterprises and institutions as well as to State cadres
who have been assigned to work in enterprises and institutions under collective ownership.  Where past provisions are at variance
with these Provisions, these Provisions shall prevail. 

Article 12  Rules for the implementation of these Provisions shall be formulated and issued by the State Personnel Bureau upon
approval by the State Council.

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






INTERIM PROCEDURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE SUPERVISION AND CONTROL OVER BONDED GOODS AND BONDED WAREHOUSES

PROVISIONAL RULES OF THE CUSTOMS GOVERNING THE SUPERVISION AND CONTROL OF IMPORT AND EXPORT GOODS AND MATERIALS NEEDED FOR THE COOPERATIVE EXPLORATION AND EXPLOITATION

Provisional Rules of the Customs of the People’s Republic of China Governing the Supervision and Control of Import and Export Goods
and Materials Needed For the Cooperative Exploration and Exploitation

     (Effective Date:1981.10.01–Ineffective Date:)

   Article 1. These Rules have been made in accordance with the Provisional Customs Law of the People’s Republic of China and the spirit of Document
No. 211 (1980) promulgated by the State Council, for the purpose of facilitating the importation and exportation of the goods and
materials needed for the cooperative exploration and exploitation of the offshore petroleum of our country.

   Article 2. The Customs shall, in accordance with the documents and contracts (including sub-contracts–the same hereinafter) approved by the
State Council or its authorised organs, exercise supervision and control over all the goods and materials imported and exported by
the oil companies for the exploration and exploitation of the offshore petroleum of our country.

After the determination of an engineering project, the oil company concerned should immediately submit the above-mentioned documents
and contracts to the local Customs and the Customs of entry and exit. It should also, before entry, submit for Customs inspection,
the manifest of the goods and materials and equipment (including the supplementary manifest) corresponding with the import plan verified
and approved by the competent organ. These goods and materials, if verified by the Customs to be for productive purpose within the
scope of the engineering project, may be imported upon the approved manifest, without applying for a separate import licence (but
the import of machinery equipment should still be reported, beforehand, to the specific authorizing department for approval). Import
licences issued by foreign trade control organs should be submitted for verification with regard to goods and materials outside the
scope of the engineering project, goods and materials not for direct productive purpose and imported by the oil company in accordance
with a temporary plan, and goods and materials covered by import licence according to relevant State provisions.

   Article 3. At the time of importation and exportation of the goods and materials, the oil company or its agent should fill out the Declaration
Form of Imports (Exports) in duplicate, and submit it together with the invoices, packing list and other relevant papers and documents
to the Customs for the completion of Customs formalities of entry and exit.

In the case of the goods and materials imported or exported at the places other than the place where the company is located, the declarant
should fill out the Declaration Form of Imports (Exports) in triplicate, and declare to the Customs of entry in the case of importation,
and to the local Customs in the case of exit, for the completion of the transhipment formalities. The declarant should entrust the
forwarding agent with delivering the Customs Cover, along with the cargo in question, to the Customs of destination or exit. The
forwarding agent must keep intact the Customs seals affixed by the Customs on the cargo or on the means of conveyance.

   Article 4. At the time of Customs examination of the import and export cargoes, the cargo-owner or his agent must be present and unpacking the
goods himself. In case the cargo needs to be examined at places other than the places under Customs supervision and control, permission
should be sought from the Customs beforehand, and special fees paid in accordance with the Customs regulations.

   Article 5. Cargoes imported (including those imported by means of lease) within the duty-exemption limits approved by State organs shall be
released duty-free by the Customs; the portion of import cargo in excess of the above-mentioned limits shall be released, only after
the Customs duties and industrial and commercial (consolidated) tax have been levied by the Customs in accordance with the regulations.

Goods and materials imported temporarily may be accorded duty-free treatment, provided that the oil company concerned completes the
declaration formalities with the local Customs and guarantees to re-ship them abroad within six months. In this case, the oil company
should pay a cash deposit not less than the total amount of the payable duties and undertake to re-ship the goods and materials abroad
within the stipulated time-limit. The deposit shall be refunded on re-shipment abroad of the goods and materials. If, owing to special
circumstances, the goods and materials imported temporarily cannot be re-shipped abroad within the prescribed time-limit, the oil
company should apply to the Customs for extension. If the re-shipment is still not undertaken within the extended time-limit, the
oil company should, in accordance with the present Rules, go through Customs formalities for entry, and pay Customs duties and the
industrial and commercial (consolidated) tax.

   Article 6. Import goods and materials may be delivered only after completion of the Customs formalities, or with the special permission of the
Customs; the export goods and materials may be loaded and shipped abroad only after completion of the Customs formalities and under
the Customs supervision and control.

   Article 7. The commission warehouses set up by foreign businessmen at the oil bases shall be dealt with by the Customs in accordance with the
Provisional Rules Governing the Supervision and Control over Bonded Cargo and Bonded Warehouses. But if the goods and materials for
sale on commission and the spare parts and components for use in maintenance are to be turned into importation, the levying of, or
the exemption from, the duty on them shall be dealt with in accordance with Article 5 of the present Provisional Rules.

   Article 8. Import goods and materials which are not declared to the Customs or on which the Customs duty is not paid within three months from
the date of the declared entry of the means of conveyance, shall be dealt with by the Customs in accordance with the relevant provisions.

   Article 9. For foreign engineers and technicians who come to China on exploration and exploitation business, the competent departments should
submit regularly to the Customs the lists of their names in quadruplicate, which will be sent respectively to the Customs at the
port of entry, the local Customs, and the Guangzhou and Kowloon Customs. They shall be treated by the Customs according to the regulations
concerning the control of import and export baggage and articles carried, and articles imported and exported by post, by foreign
engineers and technicians who are invited to come to work in China.

Baggage and articles carried by our engineers and technicians on entering and leaving the Chinese territories on business, shall be
dealt with in accordance with the State Council-approved Regulations Concerning the Entry and Exit of the Baggage and Articles Carried
by Our Workers Who Go to Work Abroad; and the provisions in the Supplementary Circular to Document No. 517 (79) promulgated jointly
by the Ministry of Foreign Trade, the Ministry of Foreign Affairs, the Ministry of Economic Relations with Foreign Countries and
the Ministry of Finance.

   Article 10. The following cases shall be dealt with by the Customs each on its merits, in accordance with the relevant provisions of the Provisional
Customs Law of the People’s Republic of China:

(1) False declaration;

(2) The units concerned taking delivery of or loading the import and export goods and materials not yet released by the Customs;

(3) Smuggling through the means of import and export goods and materials;

(4) Sale, without permission, of the goods and materials which have been released duty-free by the Customs;

(5) The goods and materials imported temporarily on Customs verification and approval, being not re-shipped abroad within the prescribed
time-limit, and not redeclared for the completion of the Customs formalities in accordance with the relevant regulations;

(6) Unauthorizedly breaking Customs Cover, or Customs seals, or losing Customs Cover;

(7) Other cases in violation of the Customs regulations.

   Article 11. Whenever deemed necessary for the work, the Customs may set up working offices or station officers at the offshore exploration and
exploitation bases. The oil companies and sub-companies should provide free office and living accommodation, and extend living facilities.

   Article 12. The present Provisional Rules shall come into force on October 1, 1981.

    





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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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