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SUPPLEMENTARY REPLY OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ISSUES CONCERNING ADMINISTRATIVE PENALTIES FOR VIOLATION OF PROVISIONS OF FOREIGN EXCHANGE ADMINISTRATION

The State Administration of Foreign Exchange

Supplementary Reply of the State Administration of Foreign Exchange on Issues Concerning Administrative Penalties for Violation of
Provisions of Foreign Exchange Administration

HuiFa [1999] No.48

February 11, 1999

All subordinate administrations of the State Administration of Foreign Exchange (SAFE), the Departments of Foreign Exchange Administration
of Beijing and Chongqing:

To impose the penalties in cases in violation of laws and regulations on foreign exchange discovered during the examination, on December
25, 1998, SAFE issued the Circular on Issues Concerning Administrative Penalties for Violation of Provisions of Foreign Exchange
Administration, which clarifies the problems that should be paid attention to during the imposition of penalties for violation of
law and regulations on foreign exchange. However, the Penalty Decision and other materials submitted by some subordinate administrations
still reflect such problems as lack of evidence, abuse of penalty criteria and improper application of law. To safeguard the solemnity
of law enforcement for foreign exchange rectification and to successfully complete this examination, supplementary issues that should
attract enough attention in the process of conducting investigation and prosecution for violation of laws and regulations on foreign
exchange are hereby noticed as follows:

1.

Determining the nature of cases in violation of laws and regulations on foreign exchange, legal reference and penalty criteria

Procedures for Investigating and Handling Cases in Violation of Foreign Exchange Administration should be strictly implemented. Cases
of in violation of laws and regulations on foreign exchange should be classified and the penalties should be determined in accordance
with such public rules or regulations as the Regulations of the People’s Republic of China on Foreign Exchange Administration. Documents
coded HuiFa [1998] No.37, 43, 55 and 98 of the State Administration of Foreign Exchange are for internal reference for the penalty
decisions and should not be directly quoted for case classification and penalty decision. Fraudulent purchase of foreign exchange
through letters of credit or collection should be investigated and prosecuted as cases of false customs declaration. Enterprises
that fail to submit customs declaration forms for examination or fail to cancel them after verification through letters of credit
or collection should be punished in accordance with the penalty criteria stipulated in the document coded HuiFa [1998] No.98.

2.

Collection of confiscated fines

During this examination, a large majority of the businesses in violation of the regulations on foreign exchange are foreign trading
companies that serve as import agencies. Full collection of confiscated fines may affect local budgets to some extent. In view of
the consistency of the policy of turning in the confiscated fines in the foreign exchange examination, the proportion of the confiscated
fines to be turned in by local administrations (including sub local administrations) in this examination is hereby adjusted as follows:
50% is turned in to the State Administration of Foreign Exchange and then turned in to the state budget; the other 50% is turned
in to local budgets. The provisions in the document coded HuiFa [1998] No.107 of turning in the confiscated fines in full in this
examination should be terminated. Local administrations that have turned in the confiscated fines in full are kindly requested to
report the situation to the general administration in writing and the general administration will made a refund upon examination.

As for some industries that have special difficulties in turning in the confiscated fines in full within the prescribed time limit,
local administrations should handle strictly and report to the general administration as special cases. While reporting, reasons
should be stated and the financial statements be submitted. The deferred payment should only be granted upon the approval of the
general administration. The period for deferred payment should be no longer than 1 year.

3.

Handover of cases in violation of laws and regulations on foreign exchange

Cases in violation of laws and regulations on foreign exchange involving the evasion of customs duties or smuggling should be handed
over, after administrative penalties are made, to customs where the filing documents were signed to be investigated and punished
for duty evasion or smuggling. Cases in violation of laws and regulations on foreign exchange in which business units in the customs
declaration form belong to “Three Without Enterprises” or fake units should be directly handed over by local administrations of foreign
exchange in those areas to administrations of foreign exchange in areas where the foreign exchange was purchased or sold and be reported
to the general administration for file-keeping purpose.

4.

Treatment in case the main body in violation of laws and regulations on foreign exchange has disappeared.

In case that the suspected enterprise has disappeared and cannot be brought to justice in cases in violation of laws and regulations
on foreign exchange, local administrations should summarize and provide a detailed list, notify administrations of industry and commerce
to cancel the registration of the enterprise, instruct banks to stop offering foreign exchange service to it, and then properly end
the case. The detailed list should be submitted to the general administration for file-keeping purpose.

It is hereby notified.



 
The State Administration of Foreign Exchange
1999-02-11

 







INTERIM PROVISIONS ON IMPORT TAXES ON ARTICLES TAKEN INTO CHINA BY FOREIGNERS PERMANENTLY RESIDING IN CHINA

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-03-10 Effective Date  1999-04-01  


Interim Provisions on Import Taxes on Articles Taken Into China by Foreigners Permanently Residing in China

(Adopted by the State Council on January 3, 1999, promulgated by the General Administration of Customs on March 10, 1999, effective as of April 1, 1999)

    Article 1  These Provisions reformulated in order to implement opening-up policy, strengthen international exchange and promote the
development of foreign trade and economy.

    Article 2  For permanent resident offices established by foreign enterprises, news agencies, economic and trade organizations, cultural
associations and foreign legal persons upon approval by competent departments of the People’s Republic of China, if their permanent
residents such as foreign citizens, overseas Chinese and dwellers form Hong Kong, Macao and Taiwan (including their spouses and minor
children living with them) as well as other permanent residents (hereinafter referred to as permanent residents), who have been allowed
to enter into China and have lived in China for more than one year, import articles for self use, these Provisions shall be applied.
These persons include:

    (1) permanent residents in permanent resident offices established in China by foreign enterprises, economic,
trade and cultural organizations;

    (2) permanent residents in permanent resident offices established in China by foreign non-government organizations
of economic, trade and cultural associations;

    (3) permanent correspondents of permanent foreign news agencies in China;

    (4) permanent foreign residents in Chinese-foreign equity joint ventures, cooperative joint ventures and wholly
foreign-funded enterprises in China;

    (5) foreign experts (including experts from Hong Kong, Macao and Taiwan) and overseas Chinese experts who
have been long working in China;

    (6) foreign students and overseas Chinese students who have been long studying in China.

    Article 3  Articles for self use such as household pickup camera, camera, portable radio cassette player, portable laser phonograph
and portable computer taken into China by the six categories of permanent residents mentioned above who live in China for more than
one year (i.e. their work visas or study visas are valid for more than one year) when they enter into China for the first time during
the term of validity of their visas are exempted from import taxes, upon the examination and verification by the competent Customs
at the places where they are situated, with the limit of only one for each variety; taxes shall be levied according to the provisions
on articles exceeding the limit.

    Article 4  Teaching and researching articles such as books, materials, instruments for scientific research, tools, samples and reagents
taken into China by foreign experts (including experts from Hong Kong, Macao and Taiwan) and overseas Chinese experts conforming
to the provisions of Article 2 are exempted from import taxes within the reasonable number for self use.

    Article 5  Articles other than those as stipulated in Articles 3 and 4 taken into China by above-mentioned foreigners during the
period of living, working and studying in China shall be handled in accordance with the Measures of the Customs of the People’s Republic
of China for Supervision and Control over Belongs and Articles Carried by Passengers Entering or Exiting China.

    Article 6  Imported duty-free articles prescribed above shall be supervised and controlled by the Customs according to its relevant
provisions on duty-free import articles.

    Article 7  Articles taken into China by permanent residents (including their spouses and minor children coming with them and residing
in China) working for embassies ( or consulates) of foreign countries (including regions) in China, special organizations of the
United Nations and permanent resident (representative) offices of international organizations shall be handled in accordance with
current provisions.

    Article 8  If there is any divergence between previous policies and provisions and these Provisions, these Provisions shall prevail.

    Article 9  The General Administration of Customs are to formulate implementing rules in accordance with these Provision.

    Article 10  These Provision take effect as of April 1, 1999.






REPLY OF THE STATE COUNCIL CONCERNING THE REVISING OF THE PROVISIONS ON REGISTRATION ADMINISTRATION OF LEGAL REPRESENTATIVES OF ENTERPRISE LEGAL PERSON

Category  ADMINISTRATION FOR INDUSTRY AND COMMERCE Organ of Promulgation  the State Council Status of Effect  In Force
Date of Promulgation  1999-06-23 Effective Date  1999-06-23  


Reply of the State Council Concerning the Revising of the Provisions on Registration Administration of Legal Representatives of Enterprise
Legal Person


Appendix: Provisions on Registration Administration of Legal Representatives of Enterprise Legal Person

(Replied by the State Council on June 12, 1999, and promulgated by Decree No. 90 of the State Administration for Industry and Commerce
on June 23, 1999)

    The State Council approved the following revisions made to the Provisions on Registration Administration of
Legal Representatives of Enterprise Legal Person:

    1.Paragraph 1 of Article 7 is revised to Article 6 as follows: ” In applying for modification of the registration
of legal representative, an enterprise legal person shall submit the following documents to the original enterprise registration
organ:

    (1) a document removing the original legal representative of the enterprise;

    (2) a document appointing the new legal representative of the enterprise;

    (3) an application for modification of the registration signed by the original legal representative or the
proposed legal representative.

    Paragraphs 2 and 3 of Article 7 are deleted.

    2.One article is added as Article 7: “Where a limited liability company or a joint stock limited company wishes
to replace its legal representative, a decision shall be made at a meeting convened by the Shareholders’ Meeting, the Shareholders’
General Meeting, or the Board of Directors; however, if the original legal representative cannot or fails to fulfill his duty, thereby
causing the meeting of the Shareholders’ Meeting, the Shareholders’ General Meeting, or the Board of Directors can not be convened
according to legal procedures, the meeting shall be convened and presided over by a director selected by more than half of the directors,
or a shareholder who makes the most investment or holds the biggest vote right of shares or his delegated representative, and at
which a decision shall be made.”

    Moreover, several changes to the expression are made to the Provisions on Registration Administration of Legal
Representatives of Enterprise Legal Person and the order of articles and paragraphs are modified.

    The Provisions on Registration Administration of Legal Representatives of Enterprise Legal Person shall be
revised correspondingly according to this Reply and promulgated by your Bureau.

Appendix: Provisions on Registration Administration of Legal Representatives of Enterprise Legal Person
(Approved by the State Council on February 22,1998, promulgated by Decree No.85 of the State Administration for Industry and Commerce
on April 7,1998, approved and revised by the State Council on June 12, 1999, and promulgated by the Decree No. 90 of the State Administration
for Industry and Commerce on June 23, 1999)

    Article 1  These Provisions are formulated to standardize the registration administration of legal representatives of enterprise
legal person.

    Article 2  These Provisions are applicable to registration administration of legal representatives in registration of enterprise
legal persons (including, here and below, registration of companies).

    Article 3  A legal representative of an enterprise legal person (hereinafter referred to the legal representative) shall, upon the
examination and approval of the enterprise registration organ, obtain the status of the legal representative.

    Article 4  No person under any one of the following circumstances shall serve as a legal representative, nor shall an enterprise
registration organ grant registration upon examination:

    (1) lacking capacity for civil conduct or with limited capacity for civil conduct.

    (2) undergoing criminal punishment or under a criminal coercive measure.

    (3) having been wanted for arrest by public security organs or State security authorities.

    (4) having been sentenced to criminal punishment for the crime of embezzlement and bribery, financial fraud
or for disrupting the order of the socialist market economy, where not more than five years have elapsed since the expiration of
the enforcement period; or having been sentenced to criminal punishment for another crime, where not more than three years have elapsed
since the expiration of the enforcement period; or having been deprived of political rights for committing a crime, where not more
than five years have elapsed since the expiration of the enforcement period.

    (5) having served as the legal representative, director or manager personally responsible for the bankruptcy
liquidation of an the enterprise due to mismanagement, where not more than three years have elapsed since the date of completion
of the bankruptcy liquidation.

    (6) having served as the legal representative of an enterprise that had its business license revoked for violating
the law, where such representative bears individual liability therefor and not more than three years have elapsed since the date
of revocation of the business license.

    (7) burdened with relatively large amounts of personal debts that have fallen due but have not been settled.

    (8) under other circumstances, prescribed by law and the State Council, by which disqualified from serving
as a legal representative.

    Article 5  The procedures for selecting and removing an enterprise legal representative shall comply with the provisions of the law,
administrative regulations and articles of association of a legal person enterprise.

    Article 6  In applying for modification of the registration of legal representative, the enterprise legal person shall submit the
following documents to the original enterprise registration organ:

    (1) a document removing the original legal representative of the enterprise;

    (2) a document appointing the new legal representative of the enterprise;

    (3) the modification of registration application signed by the original legal representative or the proposed
legal representative.

    Article 7  Where a limited liability company or a joint stock limited company wishes to replace its legal representative, a decision
shall be made at a meeting convened by the Shareholders’ Meeting, the Shareholders’ General Meeting, or the Board of Directors; however,
if the original legal representative cannot or fails to fulfill his duty, thereby causing the meeting of the Shareholders’ Meeting,
the Shareholders’ General Meeting, or the Board of Directors can not be convened according to legal procedures, the meeting shall
be convened and presided over by a director selected by more than half of the directors, or a shareholder who makes the most investment
or holds the biggest vote right of shares or his delegated representative, and at which a decision shall be made.

    Article 8  In the event of the occurrence of one of the circumstances listed in Article 4 of these Provisions during the tenure of
office of a legal representative, the enterprise legal person concerned shall apply for a modification of the registration of its
legal representative.

    Article 9  A legal representative shall exercise his functions and powers within the terms of reference prescribed by law, administrative
regulation and articles of association of the enterprise legal person.

    Article 10  The legal representative shall submit to the enterprise registration organ a sample of his signature for the record.

    Article 11  A person, in violation of these Provisions, obtaining the status of legal representative by concealing truth and adopting
deceptive means, shall be ordered to make corrections and fined not less than 10,000 yuan but not more than 100,000 yuan by the enterprise
registration organ; if the circumstances are serious, the enterprise registration shall be rescinded, and the business license of
the enterprise legal person shall be revoked.

    Article 12  If, in violation of these Provisions, there is a failure to apply to register the modification of legal representative
though it should be done, the enterprise registration organ shall order the modification done within a specified time limit; if there
is a failure to modify the registration, after the expiration of the time limit, a fine of not less than 10,000 yuan but not more
than 100,000 yuan shall be imposed; if the circumstances are serious, the enterprise registration shall be rescinded, and the business
license of the enterprise legal person shall be revoked.

    Article 13  All units or individuals shall, if finding a legal representative falling into one of the circumstances listed in Article
4 of these Provisions, have the right to make a disclosure to enterprise registration organ.

    Article 14  These Provisions take effect as of the date of promulgation.






ADMINISTRATIVE RECONSIDERATION LAW

Category  JUDICIAL ADMINISTRATION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1999-04-29 Effective Date  1999-10-01  


ADMINISTRATIVE RECONSIDERATION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Contents:
Chapter I  General Provisions
Chapter II  Scope of Administrative Reconsideration
Chapter III  Application of Administrative Reconsideration
Chapter IV  Acceptance of Administrative Reconsideration
Chapter V  Decision of Administrative Reconsideration
Chapter VI  Legal Responsibility
Chapter VII  Supplementary Provisions

(Adopted at the Ninth Meeting of the Standing Committee of the Ninth National People’s Congress on April 29, 1999, promulgated by
Order No.16 of the President of the People’s Republic of China on April 29, 1999, and effective as of October 1, 1999.)

Contents:

    Chapter I General Provisions

    Chapter II Scope of Administrative Reconsideration

    Chapter III Application of Administrative Reconsideration

    Chapter IV Acceptance of Administrative Reconsideration

    Chapter V Decision of Administrative Reconsideration

    Chapter VI Legal Responsibility

    Chapter VII Supplementary Provisions

Chapter I  General Provisions

    Article 1  This Law is enacted pursuant to the Constitution for the purpose of preventing and correcting any illegal or improper
specific administrative acts, protecting the lawful rights and interests of citizens, legal persons and other organizations, safeguarding
and supervising the exercise of functions and powers by administrative organs in accordance with law.

    Article 2  This Law is applicable to a citizen, legal person or any other organization who considers that his or its lawful rights
and interests have been infringed upon by a specific administrative act, and applies for administrative reconsideration to an administrative
organ which accepts the application for administrative reconsideration, and makes a decision of administrative reconsideration.

    Article 3  Administrative organs performing their duties of administrative reconsideration in accordance with this Law are administrative
reconsideration organs. The offices responsible for legal affairs within administrative reconsideration organs shall handle concrete
matters related to administrative reconsideration and perform the following duties:

    (1) accepting applications for administrative reconsideration;

    (2) taking of evidence from organizations and persons concerned, and consulting files and materials;

    (3) reviewing the legality and appropriateness of any specific administrative acts being applied for administrative
reconsideration, and drawing up decisions of administrative reconsideration;

    (4) handling or forwarding applications for reviewing items listed in Article 7 of this Law;

    (5) putting forward proposals, in accordance with statutory authorities and procedures, on disposing acts
violating the provisions of this Law committed by administrative organs;

    (6) handling affairs responding to action, if deciding to bring a suit in circumstances of refusing to accept
the reconsideration decision;

    (7) other duties prescribed by laws and regulations.

    Article 4  Administrative reconsideration organs shall, when performing duties of administrative reconsideration, follow the principles
of being lawful, fairness, openness, timely, and convenient to peoples, insist on correcting every wrong, and ensuring to implement
laws and regulations correctly.

    Article 5  If any citizen, legal person or any other organization refuses to accept an administrative reconsideration decision, he
or it may, in accordance with the provisions of Administrative Procedure Law of the People’s Republic of China, bring an administrative  lawsuit
before a people’s court, except that the administrative decision is, as provided for by law, a final decision.
Chapter II  Scope of Administrative Reconsideration

    Article 6  A citizen, legal person, or any other organization may, in accordance with this Law, file an application for administrative
reconsideration under any one of the following circumstances:

    (1) an administrative sanction, such as warning, fine, confiscation of illegal gains or property, order to
suspend production or business, suspension or rescission of license or permit, administrative attachment, which one refuses to accept;

    (2) a compulsory administrative measure, such as restriction of personal freedom or the sealing up, seizing
or freezing of property, which one refuses to accept;

    (3) an administrative decision of altering, suspending or discharging certificates, such as a license, permit,
credit certificate, credential, which one refuses to accept;

    (4) an administrative decision of confirming ownership or right to use of natural resources, such as land,
mineral resources, rivers, forests, mountains, grasslands, unreclaimed land, beaches, maritime waters, which one refuses to accept;

    (5) infringement upon one’s managerial decision-making power, which, one holds,has been perpetrated by an
administrative organ;

    (6) cases where an administrative organ, which has altered and nullified one’s agricultural contract, is considered
to have infringed upon one’s rights and interests;

    (7) cases where an administrative organ is considered to have illegally raised funds, levied property, apportioned
charge, or demanded the performance of duties;

    (8) cases where an administrative organ is considered to have illegally handled issuing a certificate, such
as a permit, license, credit certificate, or credential, or examining and approving or registering relative items, which one considers
oneself legally qualified to apply for;

    (9) cases where an administrative organ is considered to have failed to perform its statutory duty, according
to law, of protecting one’s rights of the person and of property, and one’s rights to receive education, as one has applied for;

    (10) cases where an administrative organ is considered to have failed to issue a pension, social insurance
money or minimum maintenance fee for living according to law; and

    (11) cases in which other specific administrative acts of an administrative organ are considered to have infringed
upon other lawful rights and interests.

    Article 7  If a citizen, legal person or any other organization considers any of the following provisions, which is the basis of
a specific administrative act of an administrative organ, to be illegal, he or it may, when filing an application for administrative
reconsideration on a specific administrative act, file an application to the administrative reconsideration organ for reviewing the
said provisions:

    (1) provisions of departments under the State Council;

    (2) provisions of local people’s governments at or above the county level and their departments;

    (3) provisions of people’s governments of towns or townships.

    The provisions set forth in the preceding paragraph do not include rules of departments and commissions under
the State Council, and local people’s governments. Review on rules shall be handled according to relevant laws and administrative
regulations.

    Article 8  If an administrative sanction or any other personnel disposition by an administrative organ is refused to accept, appeal
may be made according to the relevant provisions of laws and administrative regulations.

    If mediation or any other disposition on a civil dispute undertaken by an administrative organ is refused
to accept, an application for arbitration may be made or a lawsuit may be brought before a people’s court.
Chapter III  Application of Administrative Reconsideration

    Article 9  Any citizen, legal person or any other organization, who considers that a specific administrative act has infringed upon
his or its lawful rights and interests, may file an application for administrative reconsideration within 60 days from the day when
he or it knows the specific administrative act, except that the time limit prescribed in laws exceeds 60 days.

    If the time limit prescribed by law is delayed due to force majeure or other special reasons, the time limit
shall be accounted continuously from the day when the obstacle is removed.

    Article 10  Any citizen, legal person or any other organization that files an application for administrative reconsideration in accordance
with this Law is an applicant.

    If a citizen who has the right to apply for administrative reconsideration is deceased, his near relatives
may apply for administrative reconsideration. If a citizen who has the right to apply for administrative reconsideration is incompetent
or with limited capacity for civil conduct, his statutory agent may apply for administrative reconsideration on behalf him. If legal
person, or any other organization, that has the right to apply for administrative reconsideration terminates, the legal person or
any other organization that succeeds to its rights may apply for administrative reconsideration.

    Any other citizen, legal person or any other organization that has an interest in a specific administrative
act, for the administrative reconsideration of which an application has already been filed may, file a request for participation
in the administrative reconsideration as a third party.

    If a citizen, legal person or any other organization refuses to accept a specific administrative act undertaken
by an administrative organ and applies for administrative reconsideration, the said administrative organ that undertook the specific
administrative act is the respondent of the application.

    The applicant and the third party may delegate agent(s) to participate in the administrative reconsideration.

    Article 11  An applicant may apply for administrative reconsideration in written or in oral. If an applicant apply for administrative
reconsideration in oral, the administrative reconsideration organ shall transcribe fundamental facts of the applicant, claims of
the administrative reconsideration, and main facts, grounds and time on which the application for administrative reconsideration
is based.

    Article 12  An applicant, who refuses to accept a specific administrative act of the departments under local people’s governments
at or above the county level may apply for administrative reconsideration to the people’s government at the same level; an applicant
may also apply for administrative reconsideration to the competent authority at the next higher level.

    An applicant, who refuses to accept a specific administrative act of an administrative organ, who carries
out vertical management system, such as Customs, banking, tax collection, foreign exchange control, or by a State security organ,
shall apply for administrative reconsideration to the competent authority at the next higher level.

    Article 13  A citizen, legal person, or any other organization that refuses to accept a specific administrative act of local people’s
governments at various levels shall apply for administrative reconsideration to the local people’s government at the next higher
level.

    An applicant who refuses to accept a specific administrative act of a local people’s government at the county
level, which belongs to a dispatched organ legally established by a people’s government of a province or an autonomous region, shall
apply for administrative reconsideration to the dispatched organ.

    Article 14  A citizen, legal person, or any other organization that refuses to accept a specific administrative act of a department
under the State Council, or the people’s government of a province, an autonomous region, or a municipality directly under the Central
Government, shall apply for administrative reconsideration to the department under the State Council, or the people’s government
of the province, the autonomous region, or the municipality directly under the Central Government that undertook the specific administrative
act. The applicant who refuses to accept the administrative reconsideration decision may bring a suit before a people’s court; or
apply to the State Council for a ruling, and the State Council shall make a final ruling according to the provisions of this Law.

    Article 15  A citizen, legal person, or any other organization, who refuses to accept a specific administrative act of an administrative
organ or an organization, except for the administrative organs prescribed in Articles 12, 13, and 14 of this Law, shall apply for
administrative reconsideration in accordance with the following provisions:

    (1) an applicant, who refuses to accept a specific administrative act of a dispatched organ established by
a local people’s government at or above the county  level, may apply for administrative reconsideration to the people’s
government that established the dispatched organ;

    (2) an applicant, who refuses to accept a specific administrative act of a dispatched organ, established by
departments under governments in accordance with the provisions in laws, regulations or rules, in its own name, shall apply for administrative
reconsideration to the department who established the dispatched organ, or the local people’s government at the same level with the
department;

    (3) an applicant who refuses to accept a specific act of an organization authorized by laws or regulations
shall respectively apply for administrative reconsideration to the local people’s government, the department under a local people’s
government, or the department under the State Council, who is directly in charge of the organization;

    (4) an applicant who refuses to accept a specific act of two or more than two administrative organs in their
common name shall apply for administrative reconsideration to their common administrative organ at a higher level;

    (5) an applicant who refuses to accept a specific act of an abolished administrative organ shall apply for
administrative reconsideration to the administrative organ at the next higher level than the administrative organ that carries on
the exercise of functions and powers of the abolished organ.

    Under one of the circumstances listed in the preceding paragraphs, the applicant may also apply for administrative
reconsideration to the local people’s government, in the locality of the specific administration act, at county level, and the local
people’s government at county level accepting the application shall handle the administrative reconsideration in accordance with
the provisions of Article 18 of this Law.

    Article 16  If a citizen, legal person or any other organization applies for administrative reconsideration, and an administrative
reconsideration organ accepts the application in accordance with laws, or if, in accordance with relevant provisions of laws or regulations,
he or it shall first apply to an administrative reconsideration organ for administrative reconsideration and then bring an administrative
suit before a people’s court, if he or it refuses to accept the reconsideration decision, he or it shall not bring an administrative
suit before a people’s court within the statutory time limit for administrative reconsideration.

    If a citizen, legal person, or any other organization brings a suit before a people’s court, and the people’s
court, in accordance with law, accepts the suit, he or it shall not apply for administrative reconsideration.
Chapter IV  Acceptance of Administrative Reconsideration

    Article 17  An administrative reconsideration organ shall, after receiving an application for administrative reconsideration, examine
the application within five days, and it shall inform the applicant in written if it refuses to accept the application in circumstances
where the application for administrative reconsideration does not comply with the provisions in this Law; it shall inform the applicant
to apply to the relative administrative reconsideration organ if the application, not within the scope of administrative reconsideration
applications acceptable to this organ, comply with the provisions in this Law.

    Except for the provisions in the preceding paragraph, an administrative reconsideration organ shall be considered
to accept the administrative reconsideration application from the day when the office responsible for legal affairs receives the
application.

    Article 18  The people’s government that, according to the provisions prescribed in the second paragraph of Article 15 of this Law,
receives an administrative reconsideration application shall transfer an administrative reconsideration application that, according
to the first paragraph of Article 15 of this Law, shall be accepted by another administrative reconsideration organ to the relative
administrative reconsideration organ and inform the applicant within seven days from the day when it receives the administrative
application. The administrative reconsideration organ that receives the transferred application shall handle it in accordance with
the provisions of Article 17 of this Law.

    Article 19  If, in accordance with relevant laws or regulations, a citizen, legal person or any other organization shall first apply
to an administrative reconsideration organ for administrative reconsideration and then bring a suit before a people’s court, the
administrative reconsideration organ refuses to accept the application or fails to make a decision on the expiration of the time
limit, the applicant may, in accordance with law, bring a suit before a people’s court from the day when he or it receives a written
refusal-of-acceptance decision or within 15 days after the time limit for administrative reconsideration expires.

    Article 20  If a citizen, legal person, or any other organization applies to an administrative reconsideration organ for administrative
reconsideration according to law, and the administrative reconsideration organ refuses to accept the application without due reasons,
administrative organs at the higher level shall order it to accept the application and may also, if necessary, accept the application
directly.

    Article 21  During the time of administrative reconsideration, execution of the specific administrative act shall not be suspended.
Execution of the specific administrative act may be suspended under one of the following circumstances:

    (1) where suspension of execution is deemed necessary by the applied;

    (2) where suspension of execution is deemed necessary by the administrative reconsideration organ;

    (3) where suspension of execution is decided by the administrative reconsideration organ at the request of
the applicant because the administrative reconsideration organ considers the request to be reasonable;  

    (4) where suspensions of execution is required by the provisions of laws.
Chapter V  Decision of Administrative Reconsideration

    Article 22  Administrative reconsideration shall, in principle, examine the application in written. Except for the circumstances where
the applicant makes a require or the office responsible for legal affairs of the administrative reconsideration organ deems it necessary,
the administrative reconsideration organ may investigate facts among the organizations and citizens concerned and listen to the views
of the applicant, the respondent of the application, and the third party.

    Article 23  The office responsible for legal affairs of the administrative reconsideration organ shall send a duplicate of the application
form for administrative reconsideration or a copy of the transcript of the administrative reconsideration application to the respondent
of the application within 7 days from the day of acceptance of the application for administrative reconsideration. The respondent
of the application shall reply in written within 10 days from the day of the receipt of the duplicate of the application form or
the copy of the transcript of acceptance, and provides the evidence, grounds, and other relevant documents, on the basis of which
the specific administrative act has been undertaken.

    The applicant and the third party may consult the reply in written and the evidence, grounds, and other relevant
materials, on the basis of which the specific administrative act has been undertaken, and the administrative reconsideration organ
shall not refuse the requirement except that those involve State secrets, business secrets, or the private affairs of individuals.

    Article 24  In the proceeding of administrative reconsideration, the respondent of the application shall not collect evidence from
the applicant and other organizations or individuals concerned by himself.

    Article 25  Before a decision of administrative reconsideration is made, the applicant who applies for the withdrawal of the application
for administrative reconsideration may withdraw his application after stating grounds, and the administrative reconsideration ceased
in case of the withdrawal of the administrative reconsideration application.

    Article 26  If the applicant applies for reviewing the relevant provisions listed in Article 7 of this Law, along with the application
for administrative reconsideration, and the administrative reconsideration organ has the authority to handle the provisions, the
administrative reconsideration organ shall make a decision in accordance with law within 30 days; if the administrative reconsideration
organ has no authority to handle the provisions, it shall transfer, in accordance with the legal procedures, to the administrative
organ who has the authority to handle them within 7 days. During the period of handling, the specific administrative act shall be
suspended to execute.

    Article 27  In examining a specific administrative act undertaken by the respondent of the application, the administrative reconsideration
organ considers the grounds, on the basis of which the specific administrative act has been undertaken, are illegal, if the administrative
reconsideration organ has the authority to handle them, the organ shall, in accordance with law, handle them within 30 days; if the
administrative reconsideration organ has not authority to handle them, the organ shall transfer the application to the State organ
who has authority to handle them within 7 days according to the legal procedure. During the period of handling, the specific administrative
act shall be suspended to execute.

    Article 28  The office responsible for legal affairs of an administrative reconsideration organ shall examine the specific administrative
act undertaken by the respondent of the application, put forward its opinions and make the decision of administrative reconsideration
after the approval of the responsible persons of the administrative reconsideration organ or the assent after the group discussion,
in accordance with the following provisions:

    (1) if the facts are clearly ascertained by a specific administrative act, the evidence for the act is conclusive,
the application of grounds is correct, the procedure is legal, and the content of the act is proper, the specific administrative
reconsideration act shall be sustained by decision;

    (2) the applied who fails to perform the statutory duties shall be required to perform the duties within a
fixed time by decision;

    (3) if a specific administrative act has been undertaken in one of the following circumstances, the act shall
be annulled, altered, or confirmed as illegal by decision; if the specific administrative act is altered, or confirmed as illegal
by decision, the applied may be ordered to undertake a specific administrative act anew within a fixed time:

        a. ambiguity of essential facts, and inadequacy of evidence;

        b. erroneous application of grounds;

        c. violation of legal procedures;

        d. excess of authority or abuse of powers;

        e. obvious inappropriateness of the specific administrative act.

    (4) if the respondent of the application fails to reply in written, or provide the evidence, grounds, and
other relevant materials for a specific administrative act that has been undertaken, the specific administrative act shall be considered
to have no evidence and grounds and be annulled by decision.

    If an administrative reconsideration organ orders the respondent of the application to undertake a specific
administrative act anew, the respondent of the application must not, based on the same fact and reason, undertake a specific administrative
act identical or essentially identical with the original specific administrative act.

    Article 29  An applicant may put forward the request for administrative compensation along with applying for administrative reconsideration,
and in cases where damages shall be paid in accordance with the relevant provisions of the State Compensation Law, the administrative
reconsideration organ shall make a decision to order the respondent of the application to pay the damages according to law, simultaneous
with a decision to annul or alter the specific administrative act or to confirm the specific administrative act as illegal.

    If in applying for administrative reconsideration, an applicant does not apply for administrative compensation,
an administrative reconsideration organ shall order the respondent of the application to return the property, abolish the measures
of sealing up, seizing, or freezing the property, or compensate the corresponding amount, simultaneous with making a decision to
annul or alter a fine, or to annul a specific administrative act, such as illegally raising funds, confiscating property, levying
property, apportioning charge, and sealing up, seizing, or freezing property.

    Article 30  If a citizen, legal person, or any other organization considers that a specific administrative act of an administrative
organ has infringed upon his or its ownership and right to use, which are acquired according to law, of natural resources, such as
land, mineral resources, rivers, forests, mountains, grasslands, unreclaimed land, beaches, maritime waters, he or it shall first
apply for administrative reconsideration and then bring a suit before a people’s court according to laws if he or it refuses to accept
the administrative reconsideration decision.

    According to the decisions of the State Council or the people’s governments of provinces, autonomous regions
and municipalities directly under the Central Government to prospect and confirm or adjust administrative divisions into districts,
or to requisition lands, an administrative reconsideration decision, which is made by the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government, to confirm ownership and right to use of natural resources, such
as land, mineral resources, rivers, forests, mountains, grasslands, unreclaimed land, beaches, maritime waters, is a final riling.

    Article 31  An administrative reconsideration organ shall make an administrative reconsideration decision within 60 days from the
day of acceptance of application, except for the circumstances where the time of administrative reconsideration set in laws is shorter
than 60 days. If circumstances are complex, and an administrative reconsideration organ fails to make a decision within the prescribed
time limit, the responsible persons of the administrative reconsideration organ may approve an proper extension of the time limit
within 30 days, and the extension of the time limit shall be informed to the applicant and the respondent of the application.

    An administrative reconsideration organ that makes an administrative reconsideration decision shall draw up
a written administrative reconsideration decision on which the organ shall stamp a seal.

    Once thew written administrative reconsideration decision is served, the decision is instantly legally effective.

    Article 32  The respondent of the application shall perform the administrative reconsideration decision. If the respondent of the
application does not perform or delays performing the administrative reconsideration decision without due reasons, the administrative
reconsideration organ or an relevant administrative organ at higher

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

The Ministry of Finance, the State Administration of Taxation

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

CaiShuiZi [1999] No.273

November 2, 1999

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

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

1.

Value-added Tax

(1)

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

(2)

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

(3)

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

(4)

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

2.

Business Tax

(1)

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

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

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

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

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

(2)

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

a.

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

b.

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

c.

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

(3)

The procedure for examination and approval of the tax exemption

a.

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

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

b.

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

3.

Income tax

(1)

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

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

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

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

(2)

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

4.

Income tax for enterprises with foreign investment and foreign enterprises

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

5.

Tax on import & export

(1)

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

(2)

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

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

(3)

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

6.

Scientific research institutions’ transformation of mechanism

(1)

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

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

(2)

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

7.

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



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

 







CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION AND THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ISSUES CONCERNING INDIVIDUAL DOMESTIC RESIDENTS’ INVESTMENT IN FOREIGN CURRENCY STOCKS LISTED IN THE DOMESTIC STOCK MARKETS

The China Securities Regulatory Commission

Circular of China Securities Regulatory Commission and the State Administration of Foreign Exchange on Issues Concerning Individual
Domestic Residents’ Investment in Foreign Currency Stocks Listed in the Domestic Stock Markets

ZhengJianFa [2001] No.22

February 21,2001

All the Securities Regulatory Offices, Sub-Offices, Representative Offices; all the branches, Beijing and Chongqing Departments of
State Administration of Foreign Exchange (“SAFE”); Shanghai and Shenzhen Stock Exchanges; all the commercial banks, securities companies
and investment trust companies:

To promote the sound development of foreign currency stocks listed in the domestic stock markets (hereinafter referred to as “B shares”),
maintain the normal operation of both the B shares and foreign exchange markets, safeguard the legal rights of the investors and
regulate the conduct of the participants in the stock market, this notice has been thus made by the China Securities Regulatory Commission
(hereinafter referred to as “CSRC”) to the following issues:

1.

Pursuant to Article 4 of the Provisions of the State Council on Foreign Currency Stocks Listed in the Domestic Stock Market Issued
by Joint Stock Limited Companies (Decree No.189 of the State Council, 1995] and the decision made by CSRC on February 19, 2001 concerning
the approval of domestic residents’ investment in the B Share market, individual domestic residents may, adhering to this notice,
invest in the B shares.

2.

Before June 1, 2001, domestic residents who intend to invest in the B shares, can only use the foreign exchange account and foreign
currency account which had been deposited in domestic commercial banks before the date of February 19, 2001 (February 19 included
and the same hereinafter). Nevertheless, those foreign currencies either in cash or transacted from other sources rather than from
the foreign currency deposit accounts as aforementioned will not be allowed to invest in the B shares. The foreign currency that
had been deposited before February 19, 2001 in domestic commercial banks and the deposit referred upon the expiration date is allowed
to invest in the B shares. After June 1, 2001, domestic residents are allowed to invest in the B shares with foreign currencies which
should be deposited after February 19,2001 or remitted from abroad to the Chinese domestic commercial banks. Foreign currencies in
cash, however, still will not be allowed to invest in B-share market as aforementioned.

3.

Security companies and trust investment companies which bear the authorization of CRSC to engage in B shares transactions and the
authorization of SAFE to handle foreign currencies may carry the certificates produced by the CSRC for operating the B shares and
the licenses authorized by the State Bureau of Foreign Exchange for managing foreign currencies to open B share guarantee accounts
at all the domestic commercial banks and their branches which bear the authorization to manage foreign currencies in the same city.
The branches of the aforementioned securities companies and investment trust companies may open the guarantee accounts by producing
copies of the aforementioned certificates and licenses issued to the companies, on which the official seals of the branches shall
be set. Securities companies or investment trust companies or their branches (hereinafter referred to as “securities operating institutions”)
can open only one B share guarantee account within one domestic commercial bank within the same area, and under no circumstances,
should securities operating institutions open more than one B share guarantee account in one domestic commercial bank within the
same area. Securities operating institutions should, within three working days after the opening of the account, submit the name
of the bank of the deposit to SAFE or its local branches (“Foreign Exchange Bureau”) to be put on file and disclose the information
about their guarantee accounts to the public via mess media.

4.

Domestic residents who intend to open B share accounts should go through the following proceedings:

Individuals may, bearing their legal ID documents, have their foreign currencies transferred from their original deposit accounts
into the B share guarantee accounts opened by the securities operating institutions. Personal IDs are required for such transactions.
Presently such transactions are restricted to the same kind of bank and the same city. Domestic commercial banks should produce entry
vouchers to individuals for their money transference, and should deliver the statement of account to the securities operating institutions.

Individuals then may bring their legal IDs and entry vouchers of the transferred foreign currencies to the securities opening institutions
to open B share capital accounts. The minimum B share account opening balance is 1,000.00 US dollars or the equivalent.

Upon opening the B share capital accounts, individuals may open their B share securities accounts with the said securities operating
companies.

5.

Domestic commercial banks should, when handling with transference of foreign currency for domestic residents, strictly abide by the
rules prescribed in this notice to check the deposit dates and transferred currency. Before June 1, 2001, when domestic residents
transfer foreign currency from their certified deposit, the foreign currency should be deposited before February 19, 2001. When domestic
residents transfer foreign currency from the current deposit, the amount should not be over the balance of the accounts before February
19, 2001. When domestic residents make the transactions, the foreign currency should be converted into the same kind of currency
as the B share guarantee account held by the securities operating institutions.

6.

The profit of the B share capital accounts for domestic residents should include the profit of the foreign currency being transferred
from foreign exchange account or foreign currency accounts, and the profit from B share trading. The cost should include the foreign
currency spent for buying B-share stocks or transferring back to domestic commercial banks. Nevertheless, foreign currency in B-share
capital account is not allowed to be transferred to foreign countries. All the foreign currencies transferred from B share capital
accounts to their deposit accounts within domestic commercial banks shall be deemed foreign currency within the country and be subjected
to the “The Interim Rules on Foreign Currency Regulations of Individual Domestic Residents” and other applicable rules. Domestic
residents shall not withdraw foreign currency cash from their B share capital accounts at anytime.

7.

The profit of B share accounts for non-residents shall include foreign currency being transferred from abroad, foreign currency legally
deposited with domestic commercial banks and profit from the B-share trading. The cost should include the cost of the foreign currency
being transferred abroad, or the foreign currency being deposited in their legal accounts within domestic commercial banks and/or
the foreign currency spent for B share trading. Non-residents shall not withdraw foreign currency cash from their B share accounts.

8.

Transference of B share between domestic residents and non-residents is forbidden. Domestic residents shall not entrust their B share
holdings to the entities outside of main land China.

9.

All domestic commercial banks, having opened B share guarantee accounts for the securities operating institutions, are permitted to
manage foreign currency payment and settlement which are associated to B-share trading between the securities operating companies
and securities registration and settlement companies, and between the securities operating companies and their branches.

10.

All securities operating institutions, domestic commercial banks, domestic residents, non-residents shall strictly abide by the rules
prescribed in this notice and other relevant rules and regulations issued by the CSRC and the SAFE concerning B share trading, in
order to avoid transferring foreign exchange abroad and illegal trading of foreign currencies. Those who breach the rules and regulations
shall be subject to CSRC and SAFE’s punishments stipulated by the relevant rules and regulations.

11.

This notice shall enter into force as of February 21, 2001. Securities operating institutions may open B share guarantee accounts
in domestic commercial banks from the effective date of this notice. Nevertheless, domestic residents shall not transfer foreign
currency for the purpose of opening B share capital accounts until February 26, 2001. “The Circular on Issues related to Strict Control
of Opening B Share Accounts” (ZhengJianFaZi [1996] No. 75) and “The Circular of Clearing up B Share Accounts” (ZhengJianJiaoZi [1996]
No. 1) of CSRC shall be nullified at the same time as this notice enters into force.



 
The China Securities Regulatory Commission
2001-02-21

 







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

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


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



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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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






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

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

ENVIRONMENTAL PROTECTION LAW OF THE PEOPLE’S REPUBLIC OF CHINA