CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS ON THE LEFTOVER TARIFF ISSUES CONCERNING UNEVALUATED EQUIPMENT IMPORTS BY FOREIGN INVESTORS OF PROJECTS OF PROCESSING WITH CUSTOMERS’ MATERIALS

The General Customs Administration

Circular of the General Administration of Customs on the Leftover Tariff Issues Concerning Unevaluated Equipment Imports by Foreign
Investors of Projects of Processing with Customers’ Materials

ShuShui[1998]No.315

June 5, 1998

Guangdong Customs and all customs and universities and colleges directly under the General Administration of Customs:

The State Council made the decision on the first half of 1997 to extend the period for deferred tariff payment of non-evaluated equipments
imported after April 1, 1996 by foreign investors of projects of processing with customers’ materials to December 31, 1997. The tariff
can be paid by installments in 5 years calculated from January 1, 1998 with an annual payment of 20 % of the total amount. With the
approval of the State Council, the General Administration of Customs and the Ministry of Finance decide, in order to encourage the
development of processing trade and ensure policy continuity, that the aforementioned equipments shall enjoy tariff exemption treatment
according to the Circular of the State Council on Adjusting the Tariff Policy of Equipment Imports (GuoFa [1997] No. 37).

Relevant customs please conduct examination on non-evaluated equipments enjoying deferred tariff payment (including bail payment)
treatment upon receiving this Circular. Except for goods listed in the Catalogue of Imported Goods of Foreign Invested Projects Enjoying
No Tariff Exemption, cases involving other goods defined hereinabove shall be wound up as tariff exemption ones with relevant procedures
duly handled. All competent customs shall intensify follow-up supervision in accordance with relevant provisions concerning equipments
with tariff exemption or reduction.

It is hereby notified.

The General Customs Administration
1998-06-05

INTERIM MEASURES FOR TRIAL IMPLEMENTATION OF TRAVEL AGENCIES WITH CHINESE AND FOREIGN INVESTMENT

e0108219981029the State Council20020101

The National Tourism Administration, the Ministry of Foreign Trade and Economic Cooperation

Interim Measures for Trial Implementation of Travel Agencies with Chinese and Foreign Investment

Decree [1998] No.11 of the National Tourism Administration, the Ministry of Foreign Trade and Economic Cooperation

(Approved by the State Council on October 29,1998, Promulgated by Decree No.11 of the National Tourism Administration and the Ministry
of Foreign Trade and Economic Cooperation on December 2,1998)

Article 1

These Measures are formulated in accordance with the Law of the People’s Republic of China on Chinese and Foreign Equity Joint Ventures
and the Regulations on Administration of Travel Agencies as well as other relevant laws and regulations for the purposes of further
expanding the opening up of tourist industry and promoting the development of tourist industry.

Article 2

These Measures are applicable to travel agencies with Chinese and foreign investment (hereinafter referred to as joint investment
travel agencies) that are established within the Chinese territory by foreign companies or enterprises and Chinese companies or enterprises.

Article 3

In applying for establishing a joint investment travel agency, the Chinese joint venture partner shall meet the following requirements:

(1)

It is an international travel agency;

(2)

Its average rate of outside contacts exceeded 30,000 persons per year during the 3 years before the application;

(3)

Its gross sales in the travel business per year exceeded 50,000,000 yuan during the 3 years before the application;

(4)

It is a regular member of the Chinese Tourism Association.

Article 4

In applying for establishing a joint investment travel agency, the foreign joint venture partner shall meet the following requirements:

(1)

It is a travel agency with international travel operations or an enterprise that owns a wholly-funded travel agency with international
travel operations;

(2)

Its annual gross sales in the travel business exceed US$50,000,000;

(3)

It has acceded to an international or a domestic computer reservation network or has built its own computer reservation system;

(4)

It is a regular member of its home country’s tourism association.

Article 5

A joint investment travel agency to be established shall meet the following requirements:

(1)

Its registered capital shall be no less than RMB 5,000,000 yuan;

(2)

It shall take the form of a limited liability company;

(3)

The proportion of the Chinese joint venture’s investment to the registered capital shall be no less than 51%;

(4)

Its legal representative shall be appointed by the Chinese side;

(5)

It has business premises, facilities and staff that are commensurate with demands; and

(6)

The duration of joint venture shall be no longer than 20 years.

Article 6

A joint investment travel agency shall, in accordance with the provisions on operating inbound tourism by international travel agencies,
pay a deposit in guarantee of travel agency quality.

Article 7

The examining and approving procedures for joint investment travel agencies are:

(1)

Chinese joint venture partner shall submit to the departments of tourism administration of the provinces (autonomous regions, municipalities
under the Central Government) or municipalities separately listed on the State plan in the localities where they are located the
project proposals, feasibility study reports and other documents for establishing a travel agency joint investment. The provincial
departments of tourism administration shall, after their preliminary examination, transfer and report thereon to the National Tourism
Administration.

Where the Chinese joint venture partner are enterprises directly under the Central Government, their competent departments shall,
after their preliminary examination, transfer and report thereon to the National Tourism Administration.

The National Tourism Administration shall, in accordance with the relevant laws and regulations of the State on tourism administration;
examine and approve the submitted documents.

(2)

Chinese joint venture partner shall, after obtaining the reply of approval of the National Tourism Administration, submit to the provincial
competent departments of foreign economic and trade in the localities where they are located the contracts, articles of association
and other documents of the joint investment travel agencies to be established. The provincial competent departments of foreign economic
and trade shall, after their preliminary examination, transfer and report thereon to the Ministry of Foreign Trade and Economic Cooperation.

Where the Chinese joint venture partners are enterprises directly under the Central Government, their competent departments shall,
after their preliminary examination, transfer and report thereon to the Ministry of Foreign Trade and Economic Cooperation.

The Ministry of Foreign Trade and Economic Cooperation shall, in accordance with the relevant laws and regulations of the State on
foreign investment, examine and approve the submitted documents.

(3)

For the projects for which establishment has been approved, the Chinese joint venture partner shall undertake the formalities of registration
and taxation registration in accordance with the provisions on the basis of the Approval Certificate for Enterprise with Foreign
Investment issued by the Ministry of Foreign Trade and Economic Cooperation and the License for Operating Business of Travel Agency
issued by the National Tourism Administration.

Article 8

The following documents shall be submitted in applying for establishing a travel agency with joint investment:

(1)

materials certifying the qualification of the Chinese joint venture partner, including: a copy of its business license, the License
for Operating Business of Travel Agency, annual business examination reports for the previous 3 years before the application and
the testimonial of regular membership of the relevant tourism association;

(2)

materials certifying the qualification of the foreign joint venture partner, including: a copy of its registration certificate, a
certificate of credit worthiness issued by its banker, papers certifying its financial position issued by an accounting firm, a certificate
of access to a network issued by the relevant computer company, a certificate of regular membership of the home country’s tourism
association and the annual report of the year before the application;

(3)

project proposal for the joint investment travel agency;

(4)

feasibility study report for the joint investment travel agency;

(5)

the contract and articles of association of the joint investment travel agency;

(6)

other materials whose submission is required by laws, regulations or the examining and approving authority.

Article 9

Each foreign joint venture may invest to establish only one joint investment travel agency within the Chinese territory.

Article 10

No joint investment travel agency is allowed to establish branches during the trial period.

Article 11

A joint investment travel agency may operate both inbound and domestic travel businesses.

Article 12

A joint investment travel agency is not allowed, for the time being, to operate its business for Chinese citizens to travel to a foreign
country, the Hong Kong Special Administrative Region, Macao and Taiwan.

Article 13

Where operating special travel programs and programs for travel to special regions, a joint investment travel agency shall report
same to the National Tourism Administration and the relevant departments for approval.

Article 14

A joint investment travel agency shall not organize and arrange any programs which include obscenity, gamble, drug-taking or any other
programs which are hazardous to social morality and physical and mental health of the people; nor shall it organize any programs
which are injurious to the State interests and national dignity of the People’s Republic of China; nor shall it organize any programs
which contain features that are forbidden by China’s laws and regulations.

Article 15

Engagement of tourist guides within the Chinese territory by joint investment travel agencies shall be conducted in accordance with
the relevant provisions of the State.

Article 16

Joint investment travel agencies shall subject themselves to the administration of tourism administration departments.

Article 17

Joint investment travel agencies must submit statements on finance, accounting and statistics to tourism administration departments
and other relevant departments in accordance with the relevant provisions, and accept business inspection.

Article 18

The income and expenditure in foreign exchange of a joint investment travel agency shall be dealt with in accordance with the relevant
measures on enterprises foreign investment.

Article 19

Joint investment travel agencies must abide by the laws and regulations of the People’s Republic of China, and subject themselves
to the jurisdiction of China’s laws and regulations. Their appropriate business activities and lawful rights and interests shall
be protected by China’s laws and regulations.

Joint investment travel agencies that commit any acts violating China’s laws and regulations shall be dealt with according to the
relevant laws and regulations.

Article 20

Where the provisions of these Measures are violated, the tourism administration departments shall impose punishments in accordance
with the Regulations on Administration of Travel Agencies and the Rules for Implementation of the Regulations on Administration of
Travel Agencies.

Article 21

During the period of implementation of these Measures, the Interim Measures for Examining and Approving the Establishment of First
Category Travel Agencies with Chinese and Foreign Investment within the State Tourist and Holiday Resorts remain in effective.

Article 22

The establishment of joint investment travel agencies by investors from the Hong Kong Special Administrative Region, Macao or Taiwan
together with those from within the mainland shall be handled by reference to these Measures.

Article 23

The National Tourism Administration and the Ministry of Foreign Trade and Economic Cooperation shall be responsible for the interpretation
of these Measures.

Article 24

These Measures enter into force as of the date of promulgation.

The National Tourism Administration, the Ministry of Foreign Trade and Economic Cooperation
1998-12-02

INTERIM REGULATIONS ON COLLECTION AND PAYMENT OF SOCIAL INSURANCE PREMIUMS

The State Council

Order of the State Coucil of the People’s Republic of China

No.259

“Interim Regulations on Collection and Payment of Social Insurance Premiums” is adopted at the thirteenth Executive Meeting of the
State Council on January 14, 1999, and is hereby promulgated. This law will enter into force as of its promulgation.

Premier of the State Council: Zhu Rongji

January 22,1999

Interim Regulations on Collection and Payment of Social Insurance Premiums

Chapter I General Provisions

Article 1

These Regulations are formulated to strengthen and regularize collection and payment of social insurance premiums, and to ensure the
granting of social insurance compensation.

Article 2

These Regulations are applicable to collection and payment of basic pensions, basic medical insurance premiums and unemployment insurance
premiums (hereinafter collectively referred to “social insurance premiums”).

A unit or an individual paying premiums mentioned in these Regulations refers to the unit or individual who shall pay social insurance
premiums according to the provisions of relevant laws, administrative regulations and of the State Council.

Article 3

The collection and payment scope of basic pensions: State-owned enterprises, collectively owned enterprises in cities and towns, enterprises
with foreign investment, privately owned enterprises in cities and towns and other enterprises in cities and towns as well as their
staff and workers, and institutions managed as enterprise as well as their staff and workers.

The collection and payment scope of basic medical insurance premiums: State-owned enterprises, collectively owned enterprises in cities
and towns, enterprises with foreign investment, privately owned enterprises in cities and towns and other enterprises in cities and
towns as well as their staff and workers, State organs and their functionaries, institutions and their staff and workers, private
non-enterprise unit as well as their staffs and workers, social organizations and their full-time staff.

The collection and payment scope of unemployment insurance premiums: State-owned enterprises, collectively owned enterprises in cities
and towns, enterprises with foreign investment, privately owned enterprise in cities and towns and other enterprises in cities and
towns as well as their staff and workers, institutions as well as their staff and workers.

The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government, according to the
actual local situations, may provide for the incorporation of individual industrial and commercial businesses in cities and towns
into the collection and payment scope of basic pensions and basic medical insurance, and may provide for the incorporation of social
organizations and their full-time staff, private non-enterprise units and their staffs and workers, as well as individual industrial
and commercial businesses in cities and towns with employees and their employees into the collection and payment scope of unemployment
insurance.

The base and rate of social insurance premiums shall be set fixed in accordance with relevant laws and administrative regulations
as well as provisions of the State Council.

Article 4

Units and individuals paying premiums shall promptly pay social insurance premiums in full amount.

Social insurance premiums collected and paid shall be incorporated into social insurance funds and only used for their special purposes.
No unit and individual may misappropriate these premiums.

Article 5

The administrative department of labor security under the State Council is responsible for the nationwide administration, supervision
and checkup of the collection and payment of social insurance premiums. The administrative departments of labor security of the people’s
governments at or above the county level are responsible for the administration, supervision and checkup of the collection and payment
of social insurance premiums within their respective administrative areas.

Article 6

Social insurance premiums shall be collected in a way that three kinds of social insurance premiums are collected centrally and uniformly.
The people’s governments of provinces, autonomous regions, and municipalities directly under the central Government shall prescribe
the collecting agencies. They may collect by taxation departments, or by social insurance agencies established by the administrative
department of labor security according to the provisions of the State Council (hereinafter referred to as social insurance agencies).

Chapter II Administration of Collection and Payment

Article 7

Units paying premiums must carry out social insurance registration with local social insurance agencies to participate in social insurance.

The registration items include: name and domicile of the unit, its business place, type of the unit, its legal representative or person
in charge, its bank account number and other items prescribed by the administrative department for labor security of the State Council.

Article 8

Units paying premiums which have already participated in social insurance before the enforcement of these Regulation shall, within
6 months of the date of enforcement of these Regulation, carry out social insurance registration with the local social insurance
agencies, and the said agencies shall issue them a social insurance registration certificate.

Units paying premiums which have not participated in social insurance before the enforcement of these Regulation, within 30 days of
the date of enforcement of these Regulations, and units paying premiums which are established after the enforcement of these Regulations,
within 30 days of the date of their establishment, shall apply for social insurance registration at the local social insurance agencies
on the basis of their business licenses, registration certificates or other such relevant certificates. After verification, the social
insurance agencies shall issue them a social insurance registration certificate.

Social insurance registration certificate may not be forged or altered.

The form of social insurance registration certificate shall be determined by the administrative department of labor security of the
State Council.

Article 9

If the social insurance registration items of a unit paying premiums change or the unit paying premiums is terminated according to
law, procedures for change or cancellation of the social insurance registration shall be carried out with the social insurance agency
within 30 days of the date of the change or termination.

Article 10

Units paying premiums shall, on a monthly basis, report to the social insurance agency the amount of social insurance premiums payable
and, after assessment by the social insurance agency, pay their social insurance premiums within the prescribed time period.

If a unit paying premiums fails to report the amount of social insurance premiums payable according to provisions, the social insurance
agency `shall provisionally set the amount payable at 110 per cent of the premium amount paid in the preceding month. If it did not
make a premium payment in the preceding month, the social insurance agency shall provisionally set the amount payable according to
the unit’s business situations, its number of staff and workers and other such relevant circumstances. After a unit paying premiums
has retroactively carried out its reporting procedures and paid the social insurance premiums according to the sum assessed, the
social insurance agency shall settle the accounts according to provisions.

Article 11

If the people’s government of a province, an autonomous region or a municipality directly under the Central Government has determined
that the tax authorities shall levy and collect social insurance premiums, the social insurance agency shall promptly provide the
tax authorities with the relevant information of the social insurance registration, changes of registration, cancellation of registration
and premium payment reports of the unit paying premiums.

Article 12

Units and individuals paying premiums shall pay their social insurance premiums in cash and in full.

The social insurance premiums payable by individuals paying premiums shall be withheld from their wages and paid for them by their
work units.

Social insurance premiums may not be reduced or exempted.

Article 13

If a unit paying premium fails to pay its own social insurance premiums or to withhold and pay those of its staff and workers according
to provisions, the administrative department of labor security or tax authority shall order it to pay within a prescribed time limit;
if it has still not paid at the end of the time limit, in addition to paying the sum owned, it shall pay a late-payment fine of 0.2
per cent per day, counting from the date when the amount became overdue. Late-payment fines shall be consolidated into the social
insurance funds.

Article 14

Social insurance premiums collected shall be deposited into a dedicated public finance account for social security funds opened by
the public finance authorities with a State-owned commercial bank.

The social insurance funds established shall respectively be basic old age insurance funds, basic medical insurance funds, and unemployment
insurance funds according to the pooling scope for the risk concerned. Separate and independent accounts shall be maintained for
each type of social insurance funds.

No taxes of fees shall be calculated or levied on social insurance funds.

Article 15

If the people’s government of a province, an autonomous region or a municipality directly under the Central Government has determined
that the tax authorities shall levy and collect social premiums, the tax authorities shall promptly provide the social insurance
agencies with information of the premium payments of units and individuals paying premiums. The social insurance agencies shall consolidate
the relevant matters and submit them to the administrative departments of labor security.

Article 16

Social insurance agencies shall establish premium payment records. Of such records, those that pertain to basic old age insurance
and basic medical insurance shall contain a record of the personal accounts, according to provisions. Social insurance agencies shall
be responsible for maintaining premium payment records and ensuring their completeness and security. Social insurance agencies shall
issue statements to individuals paying premiums concerning their basic old age insurance and basic medical insurance personal accounts
at least once a year.

Units and individuals paying premiums are enpost_titled to access their premium payment records according to provisions.

Chapter III Supervision and Examination

Article 17

Unit paying premiums shall announce to their staff and workers on a annual basis details of the units’ social insurance premium payments
for the whole year, and accept the supervision of their staff and workers.

Social insurance agencies shall periodically inform the public on details of the levy and collection of social insurance premiums,
and accept the supervision of the society.

Article 18

According to the provisions of the people’s governments of provinces, autonomous regions and municipalities directly under the Central
Government on collecting agencies of social insurance premiums, when an administrative department of labor security or a tax authority
conducts an examination of the premium payments of a unit according to law, the unit being examined shall provide such information
relevant to the payment of social insurance premiums as employment details, payrolls and financial statements, etc., and truthfully
report the situation. The unit examined may not refuse the examination or make false or deceptive reports. The administrative department
of labor security or the tax authority may make a written record of, audio tape, videotape, photograph or photocopy materials; however,
they shall maintain the confidentiality of the unit paying premiums.

When conducting the duties indicated in the preceding paragraph, the personnel of the administrative department of labor security
or the tax authority shall produce their proof of carrying out official business.

Article 19

When an administrative departments of labor security or a tax authority investigates cases of the illegal acts related to the collection
and payment of social insurance premiums, the relevant departments and units shall provide support and cooperation.

Article 20

Subject to authorization by the administrative departments of labor security, social insurance agencies may conduct examination and
investigation related to the collection and payment of social insurance premiums.

Article 21

Any organization or individual has the right to report illegal acts related to the collection and payment of social insurance premiums.
The administrative department of labor security or the tax authority shall promptly investigate the report, handle it according to
provisions, and maintain the confidentiality of the person making the report.

Article 22

Payments into and out of the social insurance fund shall be subject to separate administration and shall be supervised by the public
finance departments according to law.

The auditing departments shall supervise the payments into and out of the social insurance fund according to law.

Chapter IV Penalty Provisions

Article 23

If a unit paying premiums fails to carry out social insurance registration, change its registration or cancel its registration according
to provisions, or fails to report the amount of social insurance premiums payable according to provisions, the administrative department
of labor security shall order it to correct situation within a prescribed time limit; in serious cases, a fine of not less than 1,000
yuan and not more than 5,000 yuan may be imposed on the person in charge who are directly responsible and other directly responsible
persons; in particularly serious cases, a fine of not less than 5,000 yuan and not more than 10,000 yuan may be imposed on the person
in charge who are directly responsible and other directly responsible persons.

Article 24

If a unit paying premiums violates relevant financial, accounting or statistics laws or administrative regulations or relevant State
regulations, or forges, alters or intentionally destroy relevant account books or documents, or fails to keep accounts, thereby making
it impossible to determine the base number for the collection and payment of social insurance premiums, it shall not only be subjected
to administrative penalties, disciplinary punishment and/or criminal prosecution in accordance with the provisions of the relevant
laws and administrative regulations, but it shall also make payment in accordance with Article 10 of these Regulations. If it delays
payment, the administrative department of labor security or the tax authority shall decide to impose a late-payment fine in accordance
with Article 13 of these Regulations and impose a fine of not less than 5,000 yuan and not more than 20,000 yuan on the person in
charge who are directly responsible and other directly responsible persons.

Article 25

Units or individuals paying premiums dissatisfied with the penal decisions of the administrative departments of labor security or
tax authorities may apply for reconsideration of the cases according to law. If the units or individuals are dissatisfied with the
decisions made upon reconsideration, thy may file suits according to law.

Article 26

If a unit paying premiums refuses to pay its social insurance premiums or late-payment fines after the time limit for payment thereof
has expired, the administrative department of labor security or the tax authority shall apply to the people’s court to enforce payment
according to law.

Article 27

If personnel of an administrative department of labor security, social insurance agency or tax authority abuse their powers, practise
favoritism or graft, or neglect their duties, resulting in the loss of social insurance premiums, the administrative department of
labor security or the tax authority shall pursue the recovery of the lost social insurance premiums; if a comical offence is constituted,
criminal liability shall be pursued according to law; if no criminal offence is constituted, administrative punishment shall be imposed
according to law.

Article 28

If any unit or individual misappropriates social insurance funds, the recovery of the misappropriated funds shall be pursued, and
any illegal income shall be confiscated and consolidated with the social insurance funds; if a comical offence is constituted, criminal
liability shall be pursued according to law; if no criminal offence is constituted, the persons in charge directly responsible and
other directly responsible persons shall be subjected to administrative punishment according to law.

Chapter V Supplementary Provisions

Article 29

The people’s’ governments of provinces, autonomous regions and municipalities directly under the Central Government, according to
the actual local conditions, may determine that these regulations shall apply to the collection and payment of work-related injury
insurance and maternity insurance premiums within their respective administrative areas.

Article 30

The tax authorities and social insurance agencies may not make any appropriations from the social insurance funds to cover expenses
incurred in their levy and collection of social insurance premiums. Funding for the necessary expenses shall be included in the budget
and appropriated form public finance.

Article 31

These Regulations shall enter into force as of the date of promulgation.

The State Council
1999-01-22

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE AND THE MINISTRY OF FOREGIN TRADE AND ECONOMIC COOPERATION CONCERNING TRANSMITTING THE INTERIM MEASURES ON EXAMINATION OF EXPORT RECEIPTS OF FOREIGN EXCHANGE

The State Administration of Foreign Exchange, the Ministry of Foreign Trade and Economic Cooperation

Circular of the State Administration of Foreign Exchange and the Ministry of Foregin Trade and Economic Cooperation Concerning Transmitting
the Interim Measures on Examination of Export Receipts of Foreign Exchange

HuiFa [1999] No.103

March 23, 1999

(The Circular is omitted here) Attachment:Interim Measures on Examination of Export Receipts of Foreign Exchange

Chapter I General Provisions

Article 1

In order to perfect the Measures over export receipts of foreign exchange, to supervise and urge the full collection and timely verification
of export receipts, to prevent the activities such as evasion and arbitrage of foreign exchange, and to maintain the balance of payments,
theses Measures is set up based on relevant provisions stipulated in “Foreign Trade Law of the People’s Republic of China”, “Regulations
on Foreign Exchange Administration of the People’s Republic of China” and “Measures on Administration of Verification of Export Receipts
Collection of Foreign Exchange”.

Article 2

Theses Measures is applicable to every kind of enterprises enpost_titled with exports and imports right (hereinafter referred to as exports
and imports enterprises), which are including of foreign trade companies (including Chinese-foreign joint venture companies of foreign
trade), production enterprises and science institutes enpost_titled with self-exports and imports, commerce and commodity companies, external
contract labor enterprises, enterprises for doing processing trade, enterprises for doing bordering trade, and enterprises for doing
small amount of traveling goods.

Article 3

The examination of export receipts of foreign exchange will combine quarterly examination with annual assessment. The results of examination
will implement the system of circulation and publication. The coverage of circulation is MOFTEC departments, banks and taxation departments.

Article 4

SAFE and its branches and sub-branches (including Beijing, Chongqing Foreign Exchange Department, hereinafter referred to as SAFE)
are responsible for conducting the examination, and the arrangement and enforcement of the assessment as well.

Chapter II Indicators for Examination

Article 5

Ratio of export receipts of foreign exchange is the key indicator of examination.

Ratio of export receipts of foreign exchange is referred as the ratio between the collected and verified amount of export receipts
of foreign exchange and the amount of export receipts of foreign exchange that should have been collected and verified in the examination
duration. The equation is as follows: Ratio of export receipts of foreign exchange = {[the collected and verified amount of export
receipts of foreign exchange (i.e., the summation of a) collected and verified amount of export receipts, b) verified amount of export
receipts that is not in cash and c) the approved balanced amount for verification of export receipts)]/the amount of export receipts
of foreign exchange that should have been verified in the examination duration} X 100%.

Article 6

The amount of export receipts that should have had been verified in previous examination duration will not be counted in the amount
of export receipts that should have been verified in this examination duration.

Meanwhile, the hereby following verified amount of export receipts will not be counted in the verified amount of export receipts in
this examination duration:

the export receipts verified in this examination duration that should have had been verified in previous examination duration;

the export receipts do not reach their anticipated date of collection of export receipts;

the difference that the actual collection of exports exceeds the value of exports (i.e. the turnover of export).

Article 7

It is primary condition for rating the situation of export receipts of foreign exchange for export and import enterprises that ratio
of surrendered verification forms of export receipts should not be below certain pre-announced criterion.

Ratio of surrendered verification forms of export receipts is referred as the ratio of the surrendered number of counterfoils of verification
forms of export receipts that receive in the examination duration and the extraction of the number of verification forms of export
receipts that receive in the examination duration and the cancelled number of verification forms of export receipts (excluding the
number of reported lost forms). The equation is as follows:

Ratio of surrendered verification forms of export receipts = {the surrendered number of counterfoils of verification forms of export
receipts that receive in the examination duration / [the number of verification forms of export receipts that receive in the examination
duration – the cancelled number of verification forms of export receipts (excluding the amount of reported lost forms)]} X 100%.

Chapter III Measures of Examination

Article 8

The examination will be separated into quarterly examination and annually assessment. The examination duration for quarterly examination
is for one quarter and will be conducted within the first ten days of May, August and November of each year. The examinations will
be concentrated on the ratio of export receipts of foreign exchange in the first, second and third quarters of this year and the
fourth quarter of last year, as well as the ratio of surrendering verification forms of export receipts in the first and the second
quarters of this year. The examination duration for annual assessment is one year. The assessment will be conducted in February of
each year and concentrated on the ratio of surrendered verification forms of export receipts in the fourth quarter of the year before
last year and the first, second and third quarters of last year, as well as the ratio of export receipts of foreign exchange for
the whole last year (see attachment 1).

Article 9

The criteria for examination are as follows:

The criterion for examination of ratio of export receipts is at 70 per cent and is separated into four categories:

(1)

this ratio is at or above 95 per cent;

(2)

this ratio is between 70 per cent (including 70 per cent) and 95 per cent;

(3)

this ratio is between 50 per cent (including 50 per cent) and 70 per cent;

(4)

this ratio is below 50 per cent.

The criterion for examination of ratio of surrendered verification forms of export receipts is at 80 per cent.

Article 10

In annual assessment, the grades of export receipts for export and import enterprises will be rated according to the results of examination.

The enterprise will be rated as “honorable enterprise for collection of export receipts” if its ratio of export receipts is at or
above 95 per cent.

The enterprise will be rated as “ordinary enterprise for collection of export receipts” if its ratio of export receipts is between
70 per cent (including 70 per cent) and 95 per cent.

The enterprise will be rated as “risky enterprise for collection of export receipts” if its ratio of export receipts is between 50
per cent (including 50 per cent) and 70 per cent.

The enterprise will be rated as “high-risky enterprise for collection of export receipts” if its ratio of export receipts is below
50 per cent.

The primary condition for the above assessment is that ratio of surrendered verification forms of export receipts should be above
80 per cent. Otherwise, all the enterprises will be rated as “high-risky enterprise for collection of export receipts” if the ratio
of surrendered verification forms of export receipts is below 80 per cent.

Article 11

The criteria for examining export receipts could be adjusted, complied with the change of situation at different moments, by SAFE
and MOFTEC.

Article 12

The examination of export receipts will be conducted with the responsibilities taking by different levels.

Head offices of SAFE and MOFTEC are responsible for the quarterly examination and annual assessment of export receipts of central
export and import enterprises.

Branches or sub-branches of SAFE and their same level MOFTEC departments are responsible for the quarterly examination and annual
assessment of export receipts of their domiciled export and import enterprises.

Article 13

Within 15 days in the same month for conducting the examination, branches and sub-branches of SAFE are supposed to fill in the examination
form of export receipts of export and import enterprises and regional statistics table of examination of export receipts, and to
report them to higher level branches as well as to report the examination form of export receipts of export and import enterprises
to the same level MOFTEC departments.

The provincial SAFE branches are supposed to summarize their and their domiciled sub-branches’ examination forms of export receipts
of export and import enterprises and regional statistics tables of examination of export receipts, and to report the summarized examination
form of export receipts of export and import enterprises and regional statistics table of examination of export receipts to head
office of SAFE within 20 days in the same month for conducting the examination. Meanwhile, they are supposed to transmit the electronic
data of these two forms to head office of SAFE through the internal communication network of SAFE as well. Furthermore, they are
supposed to report the forms to the same level MOFTEC departments.

Article 14

The circulation and publication of the results of examination and assessment are as follows:

Head offices of SAFE and MOFTEC are responsible for the circulation of the examination forms of export receipts of central export
and import enterprises on quarterly basis. They are also responsible for the circulation of the names, which including regional and
central enterprises, of “honorable enterprises for collection of export receipts” and “high-risky enterprises for collection of export
receipts” based on annual assessment and make them public through media.

Provincial branches of SAFE and MOFTEC are responsible for circulating the examination forms of export receipts of domiciled export
and import enterprises on quarterly basis. They are also responsible for circulating the names of domiciled “honorable enterprises
for collection of export receipts” and “high- risky enterprises for collection of export receipts” based on annual assessment and
making them public through media.

Chapter IV Rewarding and Punishment

Article 15

SAFE and MOFTEC are supposed to take the responsibility for conducting the rewarding or punishment on enterprises with different grades
for collection of export receipts:

“Honorable enterprises for collection of export receipts” will enjoy privilege treatment and simplified procedures in the course of
administrative regulations;

The banking credits to “risky enterprises for collection of export receipts” and “high-risky enterprise for collection of export receipts”
should be subject to much more strict standards of banks;

Giving the warning to “risky enterprises for collection of export receipts”;

MOFTEC or its authorized department in charge of foreign trade could suspend the enpost_titlement of export and import if the enterprise
is rated as “high-risky enterprise for collection of export receipts” for one year and rated as “risky enterprise for collection
of export receipts” continuously for two years.

Article 16

SAFE and MOFTEC are supposed to track major investigations on “risky enterprises for collection of export receipts” and “high-risky
enterprises for collection of export receipts”. SAFE and MOFTEC will give the punishments to these enterprises according to relevant
provisions if the enterprises are clarified as guilty.

Article 17

The Measures on enterprises with foreign investment are complied with the above mentioned provisions. SAFE and MOFTEC could punish
the enterprises legislatively if the enterprises disobey “Regulations on Foreign Exchange Administration of the People’s Republic
of China” and its relevant regulations.

Article 18

The rewarding and punishments given by SAFE to the quarterly examination results could refer to 1, 2 and 3 in Article 15 and Article
16 and Article 17 .

Chapter V Supplementary Provisions

Article 19

It is SAFE and MOFTEC that are responsible for the interpretation of theses Measures.

Article 20

Theses Measures is prevailing one if previous provisions are not consistent with it.

Article 21

Theses Measures enter into force as of May 1, 1999.

The State Administration of Foreign Exchange, the Ministry of Foreign Trade and Economic Cooperation
1999-03-23

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON PRINTING AND DISTRIBUTING THE INTERIM MEASURES FOR THE MANAGEMENT OF EXAMINATION AND APPROVAL OF PROCESSING TRADE

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Printing and Distributing the Interim Measures for the Management
of Examination and Approval of Processing Trade

WaiJingMaoGuanFa [1999] No.314

May 27, 1999

Foreign Trade and economic cooperation departments (commissions, bureaus) of the various provinces, autonomous regions, municipalitie
directly under the Central Government and municipalities separately listed on the State plan, offices of special Commissioners assigned
to the various localities by MOFTEC and the administration of quota and License affairs:

In order to carry out the Circular of the State Economic and Trade Commission and other departments on the Opinions of the of further
Perfecting the bank Deposit Account System for Processing Trade (GuoBanFa [1999] No. 35) transmitted by the General Office of the
State Council, and after consulting with the Customs General Administration, the Ministry has worked out the Interim Measures for
the Management of Examination and Approval of Processing Trade. These Measures are printed and distributed to you, Please abide by.

Send to: General Office of the State Council, State Economic and Trade Commission, General Administration of Customs, Ministry of
Finance, State Administration of Taxation commission, Bank of China, international cooperation offices of special Commissioners assigned
to the various localities by MOFTEC, the administration of quota and License affairs, all import and export chamber of commerce,
association of Foreign Investment Enterprises, EDI Center of MOFTEC Attachment:Interim Measures for the Management of Examination and Approval of Processing Trade

Chapter I General Provisions

Article 1

In accordance with the Foreign Trade Law of the People’s Republic of China, the Customs Law of the People’s Republic of China, the
Written Reply of the State Council on Trying out the bank Deposit Account System to Imported Materials for Processing Trade (GuoHan
[1995] No.109) and the Circular of the State Economic and Trade Commission and other departments on the Opinions Further Perfecting
the Bank Deposit Account System for Processing Trade Transmitted by the General Office of the State Council hereinafter referred
to as GuoBanFa [1999] No. 35 these Measures have been worked out for the purpose of further strengthening the management of processing
trade, maintaining the normal operation order and guaranteeing the healthy development of the processing trade.

Article 2

Processing trade mentioned in these Measures refers to the business activity in which after all of or part of the imported raw materials,
subsidiary materials, spare Parts, components and packing materials (hereinafter referred to as the imported materials) in bond are
processed or assembled by domestic enterprises, the finished products are re-exported, and it also includes processing of materials
provided by foreign clients and processing of imported materials.

Processing of materials provided by foreign clients refers to the processing trade in which foreign clients provide the imported materials
and are responsible for selling the finished products, and operation enterprises collect the processing charge without paying for
the imported materials with foreign exchange or processing charge.

Processing of imported materials refers to such processing trade in which the operation enterprises Pay for the import of relevant
materials and export the finished products.

Article 3

The operation enterprises mentioned in these Measures refer to all types of import and export enterprises and enterprises with foreign
investment which are responsible for signing import or export contracts for processing trade with foreign clients, as well as the
service companies which have obtained the operation license for processing of materials provided by foreign clients and are dealing
in processing and assembling trade with foreign clients.

The processing enterprises mentioned in these Measures refer to those manufacturing enterprises that are authorized by the operation
enterprises to take the responsibility of processing or assembling imported materials and are the corporate bodies, and those factories
that are not the corporate bodies, but are established by the operation enterprises and are implementing a relatively independent
accounting system, and have obtained the business certificates (licenses)for industry and commerce.

Article 4

Before starting to be engaged in the processing trade, the operation enterprises must report the proposal to the competent department
of foreign economic relations and trade for examination and approval. The Ministry of Foreign Trade and Economic Cooperation (hereinafter
referred to as the MOFTEC) shall be responsible for the examination and approval of the processing trade of the whole country.

Chapter II Examination and Approval Organs and Examination and Approval by Different Levels

Article 5

The competent departments of foreign economic relations and trade at provincial level shall be responsible for the administration,
examination and approval of the processing trade in the respective localities, and in light of the specific requirements, they shall
grant some competent departments of foreign economic relations and trade at district (municipal) or county (municipal) levels the
power for examining and approving of the processing trade, which must be reported in advance to the MOFTEC for file.

Article 6

The competent departments of foreign economic relations and trade at various levels (called examination and approval organs for processing
trade for short, the same in the following article) which have been authorized to have the power for examining and approving of processing
trade shall engrave the special purpose seals for examination and approval of processing trade in accordance with the uniform specifications
and patterns set by the MOFTEC, which shall be reported by the competent departments of foreign economic relations and trade at provincial
level to the MOFTEC for file.

Article 7

The name lists of examination and approval organs for processing trade at various levels and the special purpose seals (seal modes)
for the examination and approval of processing trade shall be sent by the MOFTEC to the Customs General Administration for file.

Article 8

The examination and approval organs for processing trade at various levels shall satisfy the requirement for examining and approving
of processing trade with computer management systems, be equipped with the corresponding computer management facilities, enter the
China International E-Commerce Net, and be networked with the MOFTEC.

Article 9

The processing trades in which the imported materials are such goods as cotton, sugar, vegetable oil, wool, natural rubber, crude
oil, end oil, etc. that are under the state aggregate balance management of import in processing trade shall be examined and approved
of by the examination and approval organs for processing trade at provincial level where the operation enterprises (including the
head offices of the previous ministries or commissions and the subsidiary companies) are registered. The examination and approval
organs for processing trade at provincial level shall not delegate the power for examination and approval.

Other processing trades shall be examined and approved by the examination and approval organs for processing trade where the operation
enterprises (including the head offices of the previous ministries or commissions and the subsidiary companies) are registered.

Chapter III Documents and Materials for Report

Article 10

The operation enterprise shall provide the following certificates and materials when applying for the development of processing trade.

(1)

Written application reports provided by the operation enterprise and Application Form for Processing Trade (see Attachment 1 for
specific form) with the official seal of the operation enterprise.

(2)

Documents approving of the operation enterprise’s right for dealing in import and export (or the ratification certificate for enterprises
with foreign investment) and the business license (the duplicate) for industry and commerce.

(3)

The original of the certificate for proving the processing enterprise’s production capability (see Attachment 3 for specific form)
issued by the competent department of foreign economic relations and trade above county level where the operation enterprise is registered,
and the business license for industry and commerce of the processing enterprise (the duplicate).

(4)

Import and export contracts signed by the operation enterprise with foreign clients (the original).

(5)

The original of the processing agreement (contract) signed by the operation enterprise with the processing enterprise.

(6)

Other certificates and materials regarded necessary by the examination and approval organ.

Article 11

In the case where the operation enterprise or the processing enterprise is the enterprise with foreign investment, besides the certificates
or documents stipulated by Article 10 of these Measures, the relevant enterprise shall provide contracts and regulations which are
approved by the competent department of foreign economic relations and trade and can specify its operation scope and scale, as well
as the certificates which can acknowledge that the relevant enterprise has been established and put into operation, the funds from
the investors’ part have been put in order, and it has passed the annual joint check.

Article 12

Besides the certificates and documents required to be issued by Article 10 and Article 11 of these Measures, the relevant enterprise
dealing in processing of the following specified goods shall provide other certificates and materials at the same time in accordance
with the following provisions:

(1)

Documents issued by the State Environmental Protection Bureau for approving of import of materials shall, in accordance with the
relevant provisions, be provided for the processing trade in which the imported materials are waste metals or articles.

(2)

Documents issued by the relevant departments for approving of import of materials or export of finished products shall, in accordance
with the relevant provisions, be provided for the processing trade in which the imported materials or finished products for export
are poisonous chemicals and chemicals for both military and civilian purposes.

Chapter IV Examination and Approval of Processing Trade (Contracts)

Article 13

In their examination and approval operations, the examination and approval organs at various levels shall, in strict accordance with
the provisions stipulated in Article 10 , Article 11 and Article 12 of these Measures, examine and verify the relevant documents
and materials provided by the operation enterprises, strictly forbid the “three withouts ” (without factory, without processing equipment,
without workers) enterprises to be engaged in the processing trade and prevent these enterprises from participating in such illegal
activities as smuggling, etc. in the name of dealing in processing trade.

Article 14

The Approval Certificate for Processing Trade (see Attachment 2 for the specific form) is the valid document by which departments
such as the Customs, etc. handle the relevant formalities for bank guarantee deposit accounting of processing trade. In the case
where the operation enterprises can provide the relevant certificates and materials as stipulated and have the capacity for re-export
after processing, the examination and approval organs for processing trade shall examine and verify the relevant certificates and
materials, and issue to them the Approval Certificate for Processing Trade with the special purpose seal for examination and approval
of processing trade.

Article 15

The examination and approval organs shall earnestly fill out the Detailed List for Application for Filing of Imported Materials and
the Detailed List for Filing of Finished Products for Export and Consumption of the Corresponding Imported Materials (see Attachment
2 for the specific form) with the special purpose seals for examination and approval of processing trade.

Article 16

The examination and approval organs shall conduct the examination and approval of processing trade in strict accordance with uniform
state standard for consumption per unit worked out and announced in turn by the General Customs Administration and the State Economic
and Trade Commission together with the State Bureau of Engineering Industry concerned. In the case where there is no uniform state
standard for consumption per unit, the examination and approval organs shall strictly examine and verify the consumption per unit
reported by the enterprises, and examine and approve of the processing trade after asking for the opinions of the competent department
for production and the competent Customs. The Customs shall put the relevant case on file according to the Approval Certificate for
Processing Trade issued by the examination and approval organs. In the case where the consumption per unit is found to be inconsistent
with the standard during Customs supervision, the Customs shall inform the original examination and approval organ of the opinion
by mail, the original examination and approval organ shall be responsible for the adjustment, and the Customs shall go through the
formalities for alteration of the relevant items.

Article 17

The examination and approval organs for processing trade must earnestly examine and verify the Certificate Testifying the Production
Capacity of the Processing Enterprises for Processing Trade during their examination and approval operations. The Certificate Testifying
the Production Capacity of the Processing Enterprises for Processing Trade is valid for one year.

The competent department of foreign economic relations and trade above county level where the processing enterprise is registered
shall issue the Certificate Testifying the Production Capacity of the processing Enterprises for processing Trade after strict examination
of the production capacity and management situation of the processing enterprise, and if necessary, shall solicit the opinions of
the competent department for production.

Article 18

The State has classified the imported goods for processing trade into those which are forbidden, those which are restricted and those
which are permitted, and the enterprises engaged in processing trade into the categories A, B, C and D (the specific classification
principles and classified catalogues shall be announced later to the outside and undergo dynamic adjustment in accordance with the
provisions of the document GuoBanFa [1999] No. 35 ); the State manages the processing trade in restricted goods and the processing
trade conducted by the C type enterprises under the “real transfer” of the bank guarantee deposit accounting system.

The examination and approval organs for processing trade shall strictly examine and verify the imported goods in processing trade
and the type of the enterprises, in case of processing trade in the restricted goods or conducted by the C type enterprises, the
examination and approval organs for processing trade shall add words “real transfer” in the remark column of the Approval Certificate
for Processing Trade.

Article 19

Examination and approval organs for processing trade at various levels shall not permit the D type enterprises in processing trade
(including the operation enterprises and the processing enterprises) to be engaged in processing trade or permit any operation enterprises
to be engaged in the processing trade in which the imported materials are forbidden goods.

Article 20

Enterprises under category A shall not implement the bank deposit account system in their processing trade, however, their processing
trade contracts shall be reported in advance to the examination and approval organs for examination and approval.

Chapter V Alteration of Approval Certificate and Postponement of Examination and Approval

Article 21

The duration for the countermarketing of the finished products for export stipulated in the Approval Certificate for Processing Trade
shall be in principle examined and approved of in accordance with the period of validity for the export contract of the relevant
enterprise, and in general the duration shall not exceed one year. The duration for the countermarketing of finished products in
processing trade for sugar, cotton, vegetable oil, wool and natural rubber shall not exceed six months in principle.

Article 22

An operation enterprise shall process and countermarket the finished products, and go through formalities for cancellation after verification
within the period set by the Approval Certificate for Processing Trade. In the case where Prolongation of the deadline for countermarketing
of the finished products is necessary due to objective factors, the operation enterprise shall, within the allotted time for countermarketing
of finished products, report the case to the original examination and approval organ for approval, and the Customs shall handle the
formalities for postponement by the approval document.

Article 23

In general, the duration of postponement for each time shall not exceed twice, and the period for each postponement shall not exceed
six months.

Article 24

An operation enterprise must deal in processing and export in accordance with the provisions of the Approval Certificate for Processing
Trade, and in the case where there is the need for alteration of part of the items due to objective factors, the relevant operation
enterprise shall report the case to the original examination and approval organ for approval within the period stipulated by the
Approval Certificate for Processing Trade, and the Customs shall handle the alteration formality according to the approval document.

Chapter VI Management of Quota and Licenses

Article 25

The imported materials for processing trade, in principle, shall not be under the quota and license management, except for that otherwise
stipulated.

Article 26

The State exercises control of aggregate balance and quota license over the import of sugar, cotton, vegetable oil, wool, natural
rubber, crude oil and end oil, etc. for processing trade. The aggregate quota shall be fixed by the State Council, and the specific
measures for management of distribution shall be implemented in accordance with the relevant provisions.

Article 27

The import quota for processing trade shall be valid during the current year, and shall not be used beyond the year. Offices of staff
specially appointed by the MOFTEC and the Quota License Bureau shall be responsible for issuing the import licenses for processing
trade in accordance with the import quota for processing trade and the Approval Certificate for Processing Trade issued by the examination
and approval organs for processing trade at provincial level.

The period of validity of an import license for processing trade shall not exceed the allotted time for countermarketing of finished
products stipulated by the Approval Certificate for Processing Trade, and in the case where the period of validity of the import
license needs to be carried over to the next year, it shall not exceed the end of February of the next year.

Article 28

Offices of staff specially appointed by the MOFTEC shall, through China International E-Commerce Net, report day by day the data concerning
import licenses issued for processing trade to the Quota License Bureau which is responsible for providing the MOFTEC with the data
concerning the issuance of import licenses for processing trade of the whole country (including their data about the issuance of
import licenses for processing trade). The MOFTEC shall carry out regular of nonregular examination of the issuance of the import
licenses, and such issuance acts as those in excess of authority, without quota or in excess of quota which have violated the relevant
provisions shall be strictly forbidden.

Article 29

An operation enterprise shall, in accordance with the export quota and the Approval Certificate for Processing Trade, apply for the
export license for the finished products in processing trade which are under the control of export quota, and the Customs shall check
the finished products before acceptance by the valid export license.

Article 30

In the case where the imported materials or the finished products for export in the Processing trade are Poisonous chemicals and chemicals
for both military and civilian purposes, the Customs shall handle the formalities for putting the case on file in accordance with
the Approval Certificate for Processing Trade and the approval documents for import of materials or export of finished products issued
by the relevant departments.

Chapter VII Supervision of Statistics and Tracking Management T

Article 31

Examination and approval organs for processing trade at various provincial levels shall day by day collect the data concerning the
examination and approval of the local processing trade and cancellation of the due processing trade after verification, which shall
be reported to the MOFTEC through China International E-Commerce Net.

Article 32

Examination and approval organs for processing trade at various levels shall strengthen the supervision and tracking management of
the cancellation of the local processing trade after verification, and demand that operation enterprises shall, within 30 days after
export cancellation after verification, submit the letter of notice for cancellation after verification issued by the Customs to
the original examination and approval organ for cancellation and file. Reasons for that an enterprise fails to go through formalities
for cancellation and file within the allotted time shall be thoroughly investigated, and approval of the enterprise concerned to
carry out processing trade shall be suspended.

Article 33

The MOFTEC shall carry out regular or non-regular check onthe examination and approval of the processing trade in various places,
and such examination and approval acts as those in excess of authority, without quota or in excess of quota which have violated the
relevant provisions shall be strictly forbidden.

Article 34

Examination and approval organs for processing trade at various level shall actively cooperate with such departments as the Customs,
taxation, bank and foreign exchange, etc. in order to strengthen the inter-departmental information exchange and coordination and
to enhance the overall supervision of processing trade.

Chapter VIII Supplementary Provisions

Article 35

All of the imported materials in bond for processing trade shall be processed and re-exported. In the case where the imported materials
in bond (or the finished products of the imported materials) need to de sold domestically or used for production of products for
domestic sale due to some special reasons, the case shall be handled in accordance with the relevant provisions of the Interim Measures
for Examination and Approval of Imported Materials in Bond for Processing Trade for Domestic Sale.

Article 36

The State permits the carry-over to deep processing and re-export business in processing trade. But operation enterprises must report
in advance the relevant case to the competent department of foreign economic relations and trade for approval. Specific management
measures shall be worked out later.

Article 37

The bank deposit account system is not necessary to be implemented for the processing trade conducted by the enterprises in bonded
areas, instead, the Measures for Supervision by the Customs in Bonded Areas shall be implemented for the case.

Article 38

Operation enterprises may organize by themselves the import under the item of processing trade (not including crude oil or end oil)
which shall not be restricted by the provisions concerning the management of import under normal trade with division of labor.

Article 39

The MOFTEC shall circulate a notice of criticism for the examination and approval organ that has violated these Measures, and shall
suspend or cancel its power over examination and approval of processing trade; the MOFTEC shall circulate a notice of criticism for
the organ issuing certificates and suspend or cancel its right for issuing certificates for import.

Article 40

The MOFTEC shall circulate a notice of criticism for the processing enterprise in violation of these Measures and inform the Customs
that its violation of the relevant provisions once be recorded. And if the case is serious, the management right of the enterprise
concerned for processing trade shall be suspended or cancelled; in the case where criminal law is violated, the case shall be handed
over to the judicial departments for settlement.

Article 41

These Measures shall come into effect as of the date June 1, 1999.

Article 42

These Measures shall be subject to the interpretation by the MOFTEC. Five documents issued before this (see Attachment 4 for the detailed
list) such as the Circular of the Ministry of Foreign Trade and Economic Cooperation on Issuing the Provisions about Relevant Matters
concerning External Processing and Assembling ([89] No. 212 issued by MOFTEC), etc. shall be annulled at the same time; in the case
where the provisions of other documents issued before this are inconsistent with these Measures, these Measures shall be taken as
the standard.

Attachment I: Application Form of Approval Certificate for Processing Trade (omitted)

Attachment II: Approval Certificate for Processing Trade (omitted)

Attachment III: Certificate Testifying the Production Capacity of the Processing Enterprises for Processing Trade

Attachment IV: Catalogue of Five Documents to Be Annulled Since June 1(5 Documents in All)

1. Circular of the Ministry of Foreign Trade and Economic Cooperation on Issuing the Provisions about Relevant Matters concerning
External Processing and Assembling ([89] No. 212 issued by MOFTEC)

2. Circular on Entrusting the Competent Departments of Foreign Economic Relations and Trade of Provinces, Autonomous Regions, Municipalities
Directly under the Central Government and cities with Independent Planning with Examination, Approval and Management of Processing
of Materials Provided by Foreign Clients Conducted by Corporations Directly under Ministries and Commissions ([1997] No. 798 issued
by the MOFTEC)

3. Circular on Unified Use of the Processing Trade (Contracts) Approval Certificates ([1998] No. 21 issued by the MOFTEC)

4. Catalogue of Classified Guidance on Items about Processing and Assembling of Materials Provided by Foreign Clients ([1998] No.
193 issued by the MOFTEC)

5. Circular on Relevant Matters Concerning the Examination and Approval of Processing Trade ([1999] No. 64 issued by the MOFTEC)

The Ministry of Foreign Trade and Economic Cooperation
1999-05-27

INTERIM MEASURES FOR ADMINISTRATION OF FOREIGN-RELATED SOCIAL INVESTIGATION ACTIVITIES

20041013

The National Bureau of Statistics

Interim Measures for Administration of Foreign-related Social Investigation Activities

Decree [1999] No.3 of the National Bureau of Statistics

July 16, 1999

Article 1

These Measures are formulated, in accordance with the Statistics Law of the People’s Republic of China and other relevant laws and
regulations, for the purpose of standardizing foreign-related social investigation activities and actively directing the healthy
and orderly development of foreign-related social investigation activities to maintain the social economic order and promote the
smooth progress of opening up to the outside world and socialist construction.

Article 2

Foreign-related social investigation activities mentioned in these Measures refer to the social investigation activities conducted
by such institutions within the territory of China as foreign-capital enterprises, Chinese-foreign equity joint ventures held by
foreign parties, Chinese-foreign contractual joint ventures with foreigners occupying a leading position, branches of foreign enterprises,
resident representative offices of foreign enterprises and resident institutions in China of other foreign organizations(hereafter
referred to as foreign-related institutions for short); various social investigation activities conducted by domestic investigation
institutions with the entrustment or under the financial aid of organizations, individuals or foreign-related institutions from outside
the territory or in other cooperative ways.

Article 3

Organizations and individuals from outside the territory, subsidiaries of foreign enterprises and resident representative offices
of foreign enterprises within the territory and resident institutions in China of other foreign organizations shall not, by their
own, conduct social investigation activities within the territory of China. Where there is a need to conduct such investigations,
they shall be conducted by domestic institutions with the qualification of foreign-related social investigation. Institutions without
the qualification of foreign-related social investigation shall not accept the entrusted investigations.

Article 4

Foreign-related social investigation shall not overlap with the State statistical investigations, departmental statistical investigations
and local statistical investigations.

Article 5

Institutions and personnel conducting foreign-related social investigation activities shall not undertake the investigation activities
in the name of governmental statistical institutions and governmental statisticians.

Article 6

No unit and individual shall make use of foreign-related social investigation activities to obtain State secrets, jeopardize the State
security and interests, damage the public interests and engage in frauds.

No unit and individual shall make use of foreign-related social investigation activities to jeopardize others’ interests; with respect
to the single-item investigation information of the investigated unit or individual known in the foreign-related social investigation
activities, they shall bear the obligation to keep secrets.

Article 7

Statistical institutions of the people’s governments at or above the provincial level are the organs in charge of foreign-related
social investigation activities and responsible for the administrative work of foreign-related social investigation activities. Their
main functions and responsibilities are as follows:

(1)

to publicize and carry out the implementation of relevant policies, laws, regulations and rules regarding foreign-related social investigation
activities;

(2)

to plan, direct, coordinate and promote the development of the sector of foreign-related social investigations, to strengthen the
professional training and education in vocational ethics for practitioners in the sector of foreign-related social investigations;

(3)

to be responsible for the work of qualification identification of foreign-related social investigation institutions and annual verification;

(4)

to be responsible for the work of approving foreign-related social investigation activities;

(5)

to inspect law enforcement of foreign-related social investigation institutions, and investigate and deal with the relevant illegal
acts in foreign-related social investigation activities according to law; or

(6)

other functions and responsibilities provided for by laws or regulations.

Article 8

Institutions engaging in foreign-related social investigation activities shall, upon qualification identification, obtain the License
of Foreign-related Social Investigations. The License of Foreign-related Social Investigations shall be uniformly produced by the
statistical institutions of the people’s governments at or above the provincial level, and no unit and individual shall counterfeit
it.

Institutions which apply for the qualification to engage in foreign-related social investigation activities shall meet the following
requirements:

(1)

a legal person established according to law;

(2)

social investigations included in the operation or business scope registered in the department of industrial and commercial administration
or department of civil affairs or approved by the department of agency and staffing management;

(3)

investigation ability adaptable to their foreign-related social investigation activities;

(4)

strict and sound system of information secret-guarding; and

(5)

the legal representative having not been subject to criminal punishments within five years, and having not been subject to administrative
penalties, or administrative sanctions more serious than discharge from the post within two years.

Individuals, and institutions whose qualifications of foreign-related social investigation activities have not been identified shall
not engage in foreign-related social investigation activities.

Article 9

In applying for the qualification identification of foreign-related social investigation activities, the applicant shall submit the
following materials:

(1)

an application report;

(2)

a form for applying for the qualification to engage in foreign-related social investigation activities;

(3)

one of the following qualification certificates of legal person or approval documents: the Business License for Enterprise as Legal
Person and its copies, the Registration Certificate of Association as Legal Person and its copies and approval documents of the department
of agency and staffing management or relevant departments and their copies;

(4)

the resume of legal representatives, evidences presented by the departments of personnel dossier management showing that they have
not been subject to criminal punishments or administrative penalties, the original identity card and its copies; and

(5)

other materials required by the qualification identifying organs.

Article 10

Institutions which have obtained the License of Foreign-related Social Investigations through qualification identification of foreign-related
social investigation activities shall, with respect to their qualifications to engage in foreign-related social investigation activities
and the state of affairs of foreign-related social investigation activities conducted last year, accept an annual verification from
the original qualification identifying organ in March per year.

In dealing with the annual verification, the following materials shall be submitted:

(1)

the License of Foreign-related Social Investigations;

(2)

an annual verification form of foreign-related social investigation activities; and

(3)

a report on the state of affairs of the annual verification of foreign-related social investigation activities.

Where under special circumstances foreign-related social investigation institutions subject to annual verification are not able to
accept an annual verification on schedule, they shall apply for extending the handling period of the verification to the qualification
identifying organ. Whoever has not passed the annual verification, or have not handled it beyond the prescribed period and have not
yet applied for extending the handling period, its License of Foreign-related Social Investigations shall be suspended temporarily
or revoked in light of the seriousness of circumstances.

Article 11

With respect to the investigation institutions whose investigation scopes are across the administrative regions of provinces, autonomous
regions and municipalities directly under the Central Government, the National Bureau of Statistics shall be responsible for the
identification of their qualifications to engage in foreign-related social investigation activities and the annual verification;
with respect to the investigation institutions whose investigation scopes are limited within the administrative regions of provinces,
autonomous regions and municipalities directly under the Central Government, the statistical institutions of the people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government shall be responsible for the identification
of their qualifications to engage in foreign-related social investigation activities and the annual verification.

Article 12

To conduct foreign-related social investigation activities must be submitted to the statistical institutions of the people’s governments
at or above the provincial level for examination and approval.

With respect to the scope under investigation across the administrative regions of provinces, autonomous regions and municipalities
directly under the Central Government, the investigation shall be reported to the National Bureau of Statistics for examination and
approval; With respect to the scope under investigation limited within the administrative regions of provinces, autonomous regions
and municipalities directly under the Central Government, the investigation shall be reported to the statistical institutions of
the people’s government at the provincial level where the investigation will be conducted for examination and approval.

Article 13

In applying for examination and approval of foreign-related social investigation activities, the following materials shall be submitted:

(1)

the License of Foreign-related Social Investigations;

(2)

an application for projects of foreign-related social investigation;

(3)

an investigation plan, which includes the purpose, content, scope, time, object, questionnaire form and mode of investigation;

(4)

a written contract of the entrusted investigation; and

(5)

other materials whose submission is required by the examining and approving organ.

Article 14

The examining and approving organ shall, as of the date of receipt of the application materials, make a decision of examination and
approval and issue an Examination and Approval Decision of Foreign-related Social Investigations as quick as possible, and generally
the period of time for examination and approval shall not exceed 14 days; in case of special circumstances, the period of time for
examination and approval may extend another 10 days.

In case of being up to the qualification upon examination, an approval shall be given; in case of not being up to the qualification,
no approval shall be given while the reasons therefor shall be given.

Article 15

Foreign-related social investigation activities whose conducting has been consented to upon approval must be conducted according to
the approved investigation plan and shall not be arbitrarily changed; if there is a need to make a change, a written application
shall be submitted to the original examining and approving organ and apply for examination and approval of the part changed. No unit
and individual shall counterfeit an Examination and Approval Decision of Foreign-related Social Investigations.

Article 16

In conducting foreign-related social investigation activities upon approval, the following contents shall be indicated in a conspicuous
place in the questionnaire:

(1)

the approving organ of this project and the approval document number;

(2)

this investigation being voluntary.

Article 17

With respect to the approved foreign-related social investigation activities, the relevant institution shall, before providing the
investigation materials or relevant results of research to the organizations and individuals from outside the territory as well as
the foreign-related institutions, report to the secret-guarding department at the same level as the original examining and approving
organ for examination and approval, and only upon approval may provide them.

Article 18

Where institutions and personnel which engage in foreign-related social investigation activities conduct the foreign-related social
investigation activities in the name of governmental statistical institutions and governmental statisticians, they shall be given
a warning by the statistical institution of the people’s government at or above the provincial level. Where their investigation activities
are on non-business, a fine of more than 500 yuan but less than 1,000 yuan shall be imposed; where their investigation activities
are on business, the illegal gains shall be confiscated if any, and a fine equivalent to one to three times the illegal gains but
not more than 30,000 yuan shall be concurrently imposed, and if there are no illegal gains, a fine of more than 5,000 yuan but less
than 10,000 yuan shall be imposed. If a crime is constituted, criminal responsibility shall be investigated according to law.

Article 19

Whoever commits one of the following illegal acts shall be dealt with in accordance with the provisions of relevant laws and regulations;
if the circumstances are serious, the License of Foreign-related Social Investigations shall be suspended temporarily or revoked
and a proposal shall be made to relevant department to cancel the legal person status:

(1)

making use of foreign-related social investigation activities to obtain State secrets, jeopardize the State security and interests,
damage the public interests and engage in frauds;

(2)

making use of foreign-related social investigation activities to jeopardize others’ interests, or without the agreement of the investigated
unit or individual divulge the single-item investigation information of the investigated unit or individual known in the foreign-related
social investigation activities; or

(3)

counterfeiting the License of Foreign-related Social Investigations or Examination and Approval Decision of Foreign-related Social
Investigations.

Article 20

Whoever commits one of the following illegal acts shall be ordered to stop the investigation by the statistical institution of the
people’s government at or above the provincial level. Where their investigation activities are on non-business, a fine of more than
500 yuan but less than 1,000 yuan shall be imposed; where their investigation activities are on business, the illegal gains shall
be confiscated if any, and a fine equivalent to one to three times the illegal gains but not more than 30,000 yuan shall be concurrently
imposed, and if there are no illegal gains, a fine of more than 5,000 yuan but less than 10,000 yuan shall be imposed. If the circumstances
are serious, the License of Foreign-related Social Investigations shall be suspended temporarily or revoked. If a crime is constituted,
criminal responsibility shall be investigated according to law:

(1)

without authorization engaging in foreign-related social investigation activities by failing to pass the qualification identification
or the annual verification;

(2)

without authorization engaging in foreign-related social investigation activities without approval, or failing to conduct the investigation
activities according to the approved investigation plan;

(3)

in case of foreign-related social investigation activities conducted upon approval, failing to indicate the approving organ, the approval
document number and investigation on a voluntarily basis in a conspicuous place in the questionnaire.

Article 21

Domestic investigation institutions which without approval and without authorization provide the investigation materials and results
of research obtained to the organizations and individuals outside China as well as the foreign-related institutions shall be dealt
with according to the relevant provisions of the State secret-guarding department.

Article 22

The working staff of the competent department of foreign-related social investigation activities, in performing their functions and
responsibilities, neglecting their duties, abusing their powers, committing illegalities for personal gains or by fraudulent means
or illegally divulging the business secrets about the relevant investigation institutions shall be given administrative sanctions
according to law; if losses are caused, civil liability shall be born; if a crime is constituted, criminal responsibility shall be
investigated according to law.

Article 23

Only when three full months have passed since the temporary suspension of the License of Foreign-related Social Investigations, may
an application for its return be made. Only when two full years have passed since the revocation of the License of Foreign-related
Social Investigations, may a re-application for the qualification to engage in foreign-related social investigation activities be
made.

Article 24

Where an institution conducting foreign-related social investigation activities is dissatisfied with the decision or punishment made
in accordance with these Measures by the statistical institution of the people’s government of a province, an autonomous region or
a municipality under the Central Government or the National Bureau of Statistics, it may apply for reconsideration to the National
Bureau of Statistics according to law, and may also directly bring a lawsuit to the people’s court.

Article 25

Social investigation activities involved in the cooperative project between our government and foreign governments as well as international
organizations shall be conducted in accordance with the relevant provisions of the State.

Article 26

The provisions of these Measures are applicable to the social investigation activities conducted in the mainland by the organizations
or individuals of Hong Kong Special Administrative Region, Macao region or Taiwan region.

Article 27

The National Bureau of Statistics is responsible for the interpretation of these Measures.

Article 28

These Measures shall enter into force as of August 15, 1999.

The National Bureau of Statistics
1999-07-16

CIRCULAR OF THE STATE ECONOMIC AND TRADE COMMISSION, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, THE GENERAL ADMINISTRATION OF CUSTOMS ON DECISION OF THE SECOND BATCH LIST OF IMPORT-RESTRICTED COMMODITIES IN PROCESSING TRADE

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

Circular of the State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation, the General Administration
of Customs on Decision of the Second Batch List of Import-Restricted Commodities in Processing Trade

GuoJinMaoMaoYi [1999] No.934

September 27, 1999

Economic and trade commissions (economic commissions, planning and economic commissions), foreign trade and economic commissions (departments,
bureaus) of various provinces, autonomous regions, and municipalitie directly under the Central Government, municipalities separately
listed on the State plan and Xinjiang Production and Construction Corps, Guangdong Branch, various Customs directly under the General
Administration of Customs, and relevant departments under the State Council:

Based on the relevant regulations stipulated in the Circular of the Ministry of foreign Trade and Economic Cooperation and Other Departments
on the Opinions of Adopting Further Measures to Encourage the Expansion of Foreign Trade Export Transmitted by the General Office
of the State Council (GuoBanFa [1999] No. 71) the List of Restricted Commodities in Processing Trade (the second batch) is hereby
distributed to you. The “actual operation” of bank deposit account shall be implemented from October 1, 1999 according to the relevant
regulations. Contracts of processing trade approved by competent foreign trade and economic cooperation departments before October
1 and put on record in the customs office before January 1, 2000 shall still be implemented according to original regulations till
the contracts expire. Contracts approved to be prolonged can have an extension of at most half a year, those applying for the second
extension shall be levied by the Customs account deposit which is equal to the taxable amount on materials and parts not processed
for export. Customs at various localities shall bay close attention to the handling of filing procedures for contracts of processing
trade approved before October 1. htm/e02506.htmNew Page 1

Attachment:

LIST OF RESTRICTED COMMODITIES IN PROCESSING TRADE

(The Second Batch)

Commodity	Name of Commodity	Tariff Number
1. Sugar
	Cane sugar, without perfume or colorant	17011100
	Beet sugar, without	17011200
	Perfume or colorant Granulated sugar	17019910
	Refined white sugar	17019920
2. Vegetable oil (notchanged by chemicalprocesses)
	Preliminary pressed bean oil	15071000
	Other bean oils and their separated products	15079000
	Preliminary pressed peanut oil	15081000
	Other peanut oils and their separated products	15089000
	Preliminary pressed palm oil	15111000
	Other palm oils and their separated products	15119000
	Preliminary pressed sunflower oil or safflower oil	15121100
	Preliminary pressed cottonseed oil. With cottonseed phenol or not	15122100
	Other cotton seed oils and their separated products	15122900
	Preliminary pressed rape oil	15141010
	Preliminary pressed mustard oil	15141090
	Other rape oils or mustard oils and their separated products	15149000
	Preliminary pressed com oil	15152100
	Sesame oil and its separate products	15155000
3. Natural rubber
	Natural latex, whether vulcanized or nor	40011000
	Smoked rubber sheet	40012100
	Technology sorted natural rubber (TSNR)	40012200
	Natural rubber in other forms	40012900
4. Wool
	Uncombed fatted sheared wool	51011100
	Other uncombed fatted wool	51011900
	Uncombed de-fatted sheared wool, not carbonized	51012100
	Other uncombed de-fatted wool, not carbonized	51012900
	Uncombed carbonized wool	51013000
	Wool noil	51031010
	Carded wool	51051000
	Combed wool in fragments	51052100
	Wool tops and other combed wool	51052900

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON BANNING HERETICAL CULT ORGANIZATIONS, PREVENTING AND PUNISHING CULT ACTIVITIES

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING THE RELEVANT ISSUES ON THE ADJUSTMENT OF THE MEASURES FOR THE ADMINISTRATION OF THE EXPORT MANAGEMENT OF THE DRAWNWORK PRODUCTS

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation Concerning the Relevant Issues on the Adjustment of the Measures
for the Administration of the Export Management of the Drawnwork Products

WaiJingMaoGuanFa [1999] No.745

December 17, 1999

Commissions (departments, bureaus) of foreign trade and economic cooperation in various provinces, autonomous regions, municipalities
directly under the Central Government and municipalities separately listed on the State plan, every concerned enterprise of foreign
trade and economic cooperation:

In order to seriously carry out the Circular of the General Office of the State Council for Transmitting the Opinions of the Ministry
of Foreign Trade and Economic Cooperation and other Ministries on Taking Further Measures to Encourage Expanding Foreign Trade Export
(GuoBanFa [1999] No.71), to further decrease product varieties under export quota and license control and to relax the control on
export right, the Ministry of Foreign Trade and Economic Cooperation, based on the drawnwork export performance in the recent two
years, has decided to abolish the license control on drawnwork export and stop checking and ratifying drawnwork export qualifications
of export companies starting from January 1,2000. The Circular on Printing and Distributing the Interim Provisions for the Export
Administration of the Drawnwork Products (WaiJingMaoGuanFa [1997] No.614) is nullified simultaneously.

The Circular hereby given shall be implemented accordingly.

The Ministry of Foreign Trade and Economic Cooperation
1999-12-17

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

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

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

Huifa [2001] No.7

January 22, 2001

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

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

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

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

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

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

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

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

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

Timetable for experimental operation of SECFE

(1)

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

(2)

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

(3)

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

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

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

Hotline to SAFE: 010-68518956

Hotline to GAC: 010-65195656

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

1...167168169...212 Page 168 of 212

China Laws

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE SUPPRESSION OF THE FALSIFICATION, COUNTERFEITING, AND ILLEGAL...

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING HALTING THE DEVELOPMENT OF PYRAMID RETAILING

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS ON THE LEFTOVER TARIFF ISSUES CONCERNING UNEVALUATED EQUIPMENT IMPORTS BY FOREIGN INVESTORS OF PROJECTS OF PROCESSING WITH CUSTOMERS’ MATERIALS

INTERIM MEASURES FOR TRIAL IMPLEMENTATION OF TRAVEL AGENCIES WITH CHINESE AND FOREIGN INVESTMENT

INTERIM REGULATIONS ON COLLECTION AND PAYMENT OF SOCIAL INSURANCE PREMIUMS

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE AND THE MINISTRY OF FOREGIN TRADE AND ECONOMIC COOPERATION CONCERNING TRANSMITTING THE INTERIM MEASURES ON EXAMINATION OF EXPORT RECEIPTS OF FOREIGN EXCHANGE

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON PRINTING AND DISTRIBUTING THE INTERIM MEASURES FOR THE MANAGEMENT OF EXAMINATION AND APPROVAL OF PROCESSING TRADE

INTERIM MEASURES FOR ADMINISTRATION OF FOREIGN-RELATED SOCIAL INVESTIGATION ACTIVITIES

CIRCULAR OF THE STATE ECONOMIC AND TRADE COMMISSION, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, THE GENERAL ADMINISTRATION OF CUSTOMS ON DECISION OF THE SECOND BATCH LIST OF IMPORT-RESTRICTED COMMODITIES IN PROCESSING TRADE

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON BANNING HERETICAL CULT ORGANIZATIONS, PREVENTING AND PUNISHING CULT ACTIVITIES

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION CONCERNING THE RELEVANT ISSUES ON THE ADJUSTMENT OF THE MEASURES FOR THE ADMINISTRATION OF THE EXPORT MANAGEMENT OF THE DRAWNWORK PRODUCTS

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

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7