CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING ISSUES IN RELATION TO COMPETENCE AND PROCEDURES FOR INTERPRETING ADMINISTRATIVE REGULATIONS

Category	JUDICIAL ADMINISTRATION	Organ of Promulgation	The General Office of the State Council	Status of Effect	In Force
Date of Promulgation	1999-05-10	Effective Date	1999-05-10

Circular of the General Office of the State Council Concerning Issues in Relation to Competence and Procedures for Interpreting Administrative Regulations

(Promulgated by the Document No. [1999]43 of the General Office of the State Council on May 10, 1999)

In recent years, after the promulgation of administrative regulations (including implementation rules and
implementation regulations of laws) and statutory documents of the State Council or the General Office of the State Council concerning
the fulfillment and implementation of laws and administrative regulations, some department or localities have brought forward some
problems for interpretation. In order to guarantee the proper implementation of laws and administrative regulations, further improve
the work in relation to the interpretation of administrative regulations and statutory documents of the State Council or the General
Office of the State Council concerning the fulfillment and implementation of laws and administrative regulations, circulars concerning
some issues are now hereby issued as follows:

1.If there is a need to further clarify the definition of or to make supplementary provisions to the text
of administrative regulations, the issue should be interpreted by the State Council. For this legislative interpretation, the Legislative
Affairs Office of the State Council should bring forward its opinions in accordance with the review procedures for draft administrative
regulations, and then report to the State Council for approval. According to different circumstances, the interpretation, upon approval
by the State Council, should be promulgated by the State Council or by the competent administrative department authorized by the
State Council.

2.When the issue evolves from the specific application of administrative regulations during administration
work, if the competent administrative department can make interpretation within its limits of powers, it should be responsible for
making the interpretation. If the competent administrative department has difficulties in interpreting or other relevant departments
have different opinions on the interpretation made by it and request the State Council to interpret, the Legislative Affair Office
of the State Council should undertake the task to make an interpretation; for those in which crucial problems are involved, the Legislative
Affair Office of the State Council shall bring forward its opinions and report to the State Council for approval, and then, upon
approval of the State Council, make an interpretation which should be given as a reply to the competent administrative department
and sent in duplicate to other relevant departments.

The interpretation of statutory documents of the State Council or the General Office of the State Council
concerning the fulfillment and implementation of laws and administrative regulations should be undertaken and made by the Legislative
Affairs Office of the State Council; for those in which crucial problems are involved, the Legislative Affair Office of the State
Council shall bring forward its opinions and report to the State Council for approval, and then, upon approval of the State Council,
make an interpretation. The interpretation of other documents of the State Council or the General Office of the State Council should
be undertaken by the General Office of the State Council in accordance with the existing practices.

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON DONATION FOR PUBLIC WELFARE UNDERTAKINGS

The Standing Committee of the National People’s Congress

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

No.19

The Law of the People’s Republic of China on Donation for Public Welfare Undertakings which has been adopted at the Tenth Meeting
of the Standing Committee of the Ninth National People’s Congress on June 28,1999 is promulgated now, and shall enter into force
as of September 1, 1999.

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

June 28, 1999

Law of the People’s Republic of China on Donation for Public Welfare Undertakings ContentsChapter I General Provisions

Chapter II Donation and Acceptance of Donation

Chapter III Usage and Management of Property Donated

Chapter IV Preferential Measures

Chapter V Legal Liability

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is enacted with a view to encouraging donation, standardizing the act of donation and acceptance of donation, protecting
the lawful rights and interests of donors, donees and beneficiaries, and promoting the development of public welfare undertakings.

Article 2

On the condition that natural persons, legal persons, and other organizations voluntarily donate property to legally established public
welfare associations and not-for-profit public welfare institutions without any compensation, and the donated property is used for
public welfare undertakings, this Law shall be applied.

Article 3

Public welfare undertakings mentioned in this Law refer to following matters:

(1)

activities of relieving disasters, helping the poor, assisting the disabled as well as other social groups and individuals in trouble;

(2)

education, science, culture, public health, and sports;

(3)

environmental protection, construction of public facilities;

(4)

other social and public welfare undertakings promoting the development and progress of society.

Article 4

Donation shall be made on a voluntary basis and without compensation, compulsory apportions or apportions in disguised form are prohibited,
the engagement of for-profit activities in the name of donation shall not be permitted.

Article 5

The use of donated property shall be subject to the willingness of a donor, and conforms to the purpose of public welfare, the donated
property shall not be misappropriated for other purposes.

Article 6

The making of donation shall be in conformity with laws and regulations; it shall not go against social morality, nor impair public
interests and other citizens’ legal rights and interests.

Article 7

Property and its increment accepted as donation by public welfare associations is social and public property, which is protected by
laws of the State; no unit or individual may appropriate, seize, or damage it.

Article 8

The State supports the development of public welfare undertakings, and gives supports and preferential treatments to public welfare
associations and not-for-profit public welfare institutions with a nature of.

The State encourages natural persons, legal persons and other organizations to make donations to public welfare undertakings.

Natural persons, legal persons and other organizations making outstanding contributions to donation for public welfare undertakings
are to be given commendation by the people’s governments or the relevant departments. Before giving public commendation to a donor,
comment for the donor shall be obtained in advance.

Chapter II Donation and Acceptance of Donation

Article 9

Natural persons, legal persons and other organizations may make donations to public welfare associations and not-for-profit public
welfare institutions comforting to their wishes of making donation. The property they donate shall be legal property on which they
have the right of disposition.

Article 10

Public welfare associations and not-for-profit public welfare institutions may accept donation in accordance with this Law.

Public welfare associations mentioned in this Law refer to legally established foundations, charity organizations and other associations
that hold the principle of developing public interests.

Not-for-profit public welfare institutions mentioned in this Law refer to legally established educational institutions, institutions
for scientific research, medical and public health institutions, social and public cultural institutions, social and public physical
institutions and social welfare institutions, etc, which are engaged in public welfare undertakings and do not aim at making profit.

Article 11

When natural disaster happens or the donors out of the territory require the people’s governments at or above the county level or
their departments to be the donees, the people’s governments at or above the county level or their departments may accept the donation,
and manage the donated property according to the relevant provisions of this Law.

The people’s governments at or above the county level or their departments may transfer the property they accept as donation to public
welfare associations or not-for-profit public welfare institutions; may also distribute the property in light of the donors’ wishes
or use it to initiate public welfare work, however, the people’s governments at or above the county level and their departments themselves
shall not a beneficiary.

Article 12

Donors may make a donation agreement with donees in terms of the sorts, quality, quantity and use of donated property. Donors have
the right to decide quantity, use and forms of donation.

Donors shall perform the donation agreement according to law, and transfer the donated property to donees in accordance with the time
limit and forms agreed upon in the agreement.

Article 13

When donating property to initiate a public welfare project, the donor shall make a donation agreement with the donor, agreeing on
the capital, construction, management and use of the projects.

For a donated public welfare project, the unit accepting the donation shall undergo examination and approval procedures according
to the provisions of the State, and shall alone, or together with the donor, organize the construction. The quality of the project
shall conform to the standards of the State.

After the completion of a donated public welfare project, the unit accepting the donation shall report particulars to the donors about
the construction, use of construction capital, and check-and-acceptance of quality of the project.

Article 14

A donor may head the donated project with his name for commemoration; for a project wholly donated by a donor or a project constructed
with the capital mainly donated by the donor, the donor may propose the post_title of the project, and then submit to the people’s government
at or above the county level for approval.

Article 15

As to property donated by donors outside the territory, the donee shall undergo entry procedures according to the relevant provisions
of the State; where the donated property is under the management of license, the donee shall undergo the procedures for applying
and obtaining a license according to the relevant provisions of the State, the Customs shall check, clear and supervise the property
on the basis of the license.

If overseas Chinese make donations, the department of the people’s governments at or above the county level in charge of overseas
Chinese affairs may assist to undergo entry procedures, and provide help to the donors in implementing the projects.

Chapter III Usage and Management of Donated Property

Article 16

After accepting a donation, the donee shall issue a legal and valid receipt to the donor, register the donated property on a record,
and management the property in a proper way.

Article 17

Public welfare associations shall use the donated property to imburse activities and undertakings conforming to their principles.
Property donated for salvation shall be promptly used for salvation. The amount of capital used for imbursing public welfare undertakings
by a foundation every year shall not be less than the proportion prescribed by the State.

A public welfare association shall strictly abide by the relevant provisions of the State, and actively keep and increase the value
of the donated property according to principle of legality, safety and effect.

A not-for-profit public welfare institution shall use the donated property to develop public welfare undertakings of its own, and
shall not misappropriate the property for other purposes.

As to property not easy for storage or transportation, or exceeding actual necessity, the donee may sell it, the income therefrom
shall be used for the purpose of the donation.

Article 18

Where a donation agreement has been made between the donee and the donor, the donee shall use the property according to the purpose
agreed upon, and shall not change the uses of the donated property without authorization. If it is really necessary to change the
uses of the property, consent form the donor shall be obtained.

Article 19

The donees shall, according to the relevant provisions of the State, establish and perfect financial and accounting systems and systems
for using donated property, strengthen the management of donated property.

Article 20

The donees shall report to the relevant governmental departments the use and management of the donated property every year, and accept
supervision. When necessary, the relevant governmental departments may audit their finance.

The Customs shall conduct supervision and management on donated articles import duties of which are reduced or exempted,

The overseas Chinese affairs department under the people’s government at or above the county level may take part in supervising the
use and management of the property donated by oversea Chinese.

Article 21

Donors have rights to donees with respect to the use and management of donated property, and put forward suggestion and opinion. As
to the inquiries of the donors, the donees shall make truthful replies.

Article 22

Donees shall publicize the donation and use as well as management of the donated property, and accept supervision of the society.

Article 23

Public welfare associations shall practise strict economy, and decrease managerial cost; salary of staff members and administrative
expenses shall be paid from interest and other income according to the standards prescribed by the State.

Chapter IV Preferential Measures

Article 24

When donating property for public welfare undertakings according to the provisions of this Law, corporations and other enterprises
may be given preferential treatment in enterprise income tax according to the provisions of laws and administrative regulations.

Article 25

When donating property for public welfare undertakings according to the provisions of this Law, Natural persons, individual businesses
of industry and commerce may be given preferential treatment in individual income tax according to the provisions of laws and administrative
regulations.

Article 26

As to materials donated from abroad to public welfare associations and not-for-profit public welfare institutions for public welfare
undertakings, import duties and value-added tax in import may be reduced or exempted according to the provisions of laws and administrative
regulations.

Article 27

As to donated projects, the local people’s governments shall give support and preference.

Chapter V Legal Liability

Article 28

Without permission of a donor, if a donee presumes to change the nature and uses of the donated property, the relevant department
of the people’s government at or above the county level shall order to make corrections, and give a warning. Where the making of
corrections is refused, upon approval of the donor, the people’s government at or above the county level may hand over for management
the property to public welfare associations or not-for-profit public welfare institutions that have identical or similar principles.

Article 29

Whoever misappropriates, seizes or embezzles donated property shall be ordered by the relevant departments of the people’s government
at or above the county level to return the misused money or articles, and shall also impose a fine; the direct responsible persons
shall be punished by units to which they belong according to the relevant provisions; where a crime is constituted, criminal liability
shall be investigated according to law.

The money and articles returned or recovered according to the provisions of the preceding paragraph shall be used for their original
purposes and uses.

Article 30

In the course of donation, whoever commits any one of the following acts shall be punished according to the relevant provisions of
laws and regulations; where a crime is constituted, criminal liability shall be investigated according to law.

(1)

to evade foreign exchange, to wangle foreign exchange;

(2)

to evade or dodge tax;

(3)

to engage in smuggling activities;

(4)

with no permission of the Customs and not paying due tax, to sell, transfer or use for other purposes within the territory the donated
property that is imported with a reduced or exempted tax.

Article 31

The staff members in the unit accepting the donation who abuse their powers, neglect their duties or practise favoritism for personal
interests, thereby causing heavy losses to donated property, shall be punished by the unit to which they belong according to the
relevant provisions; where crimes are constituted, criminal liabilities shall be investigated.

Chapter VI Supplementary provisions

Article 32

This Law shall enter into force as of September 1,1999.

The Standing Committee of the National People’s Congress
1999-06-28

DECISION OF THE PREPARATORY COMMITTEE FOR THE MACAO SPECIAL ADMINISTRATIVE REGION OF THE NATIONAL PEOPLE’S CONGRESS ON DETERMINATION OF QUALIFICATION FOR TRANSITING THE LEGISLATORS OF THE ORIGINAL LAST LEGISLATIVE COUNCIL OF MACAO WHO WERE TO BE ELECTED, TO THE MEMBERS OF THE FIRST LEGISLATIVE COUNCIL OF THE MACAO SPECIAL ADMINISTRATIVE REGION AND COMPLEMENT OF SHORT OF QUOTA.

Category	SPECIAL ADMINISTRATIVE REGION	Organ of Promulgation	The Preparatory Committee for the Macao Special Administrative Region of	Status of Effect	In Force
Date of Promulgation	1999-08-29	Effective Date	1999-08-29

Decision of the Preparatory Committee for the Macao Special Administrative Region of the National people’s Congress on determination of qualification for transiting the legislators of the original Last Legislative Council of Macao who were to be elected, to the members of the First Legislative Council of the Macao Special Administrative Region and complement of short of quota.

the National People’s Congress

(Adopted at the 10th Plenary Session of the Preparatory Committee for the

Macao Special Administrative Region of the National people’s Congress on
August 29, 1999)

In accordance with the provisions of the People’s Congress on the Method for the Formation of the First Government,
the First Legislative Council and Judicial Organ of the Macao Special
Administrative Region > and the First Legislative Council of the Macao Special Administrative Region of the
People’s Republic of China > adopted by the Preparatory Committee for the
Macao Special Administrative Region, through examination of qualification for
the legislators of the original last Legislative Council of Macao who ask for
transiting to members of the First Legislative Council of the Macao Special
Administrative Region, the Preparatory Committee for the Macao Special
Administrative Region of the National people’s Congress decide :

1. The legislators of the original Last Legislative Council of Macao who
were to be elected directly (in order of the stroke of simplified Chinese
character of family name, same below ) Feng Zhi Qiang, Wu Guo Chang, Zhou Jin
Hui, Gao Kai Xian, Tang Zhi Jian, Liang Qing Ting, Liao Yu Lin; and who were
to be elected indirectly Xu Shi Yuan, Liu Zhuo Hua, Guan Cui Xing, Wu Rong
Ke, Ou An Li, Lin Qi Tao, Cui Shi Chang, Cao Qi Zhen comform with the
qualification requirement for the members of the First Legislative Council
of the Macao Special Administrative Region of the People’s Republic of China,
and they are to be confirmed as the members of the First Legislative Council
of the Macao Special Administrative Region.

2. The legislator of the original Last Legislative Council of Macao Zhao
He Chang (i.e. Chen Ji Jie ) who was to be elected directly, hasn’t according
to demand ask for transiting to the member of the First Legislative Council
of the Macao Special Administrative Region. One member of vacancy arising
therefrom shall be by-elected by the Selection Committee of the First
Government of the Macao Special Administrative Region in accordance with the
relevant provision of the Legislative Council of the Macao Special Administrative Region of the
People’s Republic of China > and under controlling by the Meeting of Director
Members of the Preparatory Committee.

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME TAX ISSUES CONCERNING EXPORT GOODS OF ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Circular of the State Administration of Taxation on Some Tax Issues Concerning Export Goods of Enterprises with Foreign Investment

GuoShuiFa [1999] No.189

October 8, 1999

All the State taxation bureaus of provinces, autonomous regions, municipalitie directly under the Central Government and cities separately
listed on the State plan:

In order to further strengthen administration of tax refund (exemption) for export goods of the enterprises with foreign investment
and support the expansion of export of the enterprises with foreign investment and in accordance with the spirit of relevant decisions
of the State Council, some tax issues concerning export goods of the enterprises with foreign investment which were established upon
approval before December 31, 1993 (hereinafter referred to as the old enterprises with foreign investment) are hereby notified as
follows:

On the issue concerning the measures for tax refund (exemption) for export goods

Starting from November 1, 1999, the original tax exemption measures for export goods of the old enterprises with foreign investment
by themselves or through their authorized agents shall be replaced by the export tax refund measures. The specific calculation method
of tax refund (exemption) shall be governed by the current method of “collection first and refund later” or tax “exemption, credit
and refund” for the self-operating production enterprises.

If an old enterprise with foreign investment requires to continue the tax exemption for its export goods, it may, before the end of
November 1999, submit its application to the competent tax authority, and after approval, it may, before the end of the year 2000,
continue to implement the provisions of the Circular on Relevant Issues Concerning the Tax Policy for Enterprises with Foreign Investment
Established upon Approval before December 31, 1993 (CaiShuiZi [1998] No.184) promulgated by the Ministry of Finance, the Ministry
of Foreign Trade and Economic Cooperation and the State Administration of Taxation for its export goods. Starting from January 1,2001,
its export goods shall be governed by the tax refund measures.

II.

On some issues concerning the specific policy after the implementation of tax refund (exemption) for export goods

(1)

The issue concerning tax refund (exemption) for the processing withsupplied materials or with imported materials.

The re-export of the old enterprises with foreign investment may, if their processing with supplied materials is completed directly
by themselves, be exempt from the value-added tax and consumption tax at the link of processing; and if their processing with supplied
materials is completed by other enterprises with foreign investment or domestic enterprises they authorized, be exempt from the consumption
tax and value-added tax for authorized processing fees according to the Tax Exempt Certificate for Processing with Supplied Materials
issued by the tax authorities in charge of tax refund.

If export goods are produced with imported materials and parts by the old enterprises with foreign investment in the form of processing
with imported materials, the amount of tax refund may be adjusted and calculated according to the following formulas respectively:

The calculation formula for the method of “collection first and refund later “shall be:

Tax payable in the period=Tax on domestic sales of goods in the period + FOB price of export goods in the period * Quoted exchange
rate of Renminbi * Tax rate-(Tax on all purchases in the period +Price for tax calculation in the period approved by the Customs
as duty free for import materials and parts * Tax rate).

Amount of tax refund in the period=FOB price of export goods in the period * Quoted exchange rate of Renminbi * Tax refund rate-Price
for tax calculation in the period approved by the Customs as duty free for import materials and parts * Tax refund rate.

The calculation formula for the method of tax “exemption, credit and refund” shall be:

Tax not be credited or refunded in the period=FOB price of export goods in the period * Quoted exchange rate of Renminbi * (Tax rate-Tax
refund rate)-Price for tax calculation in the period approved by the Customs as duty free for import materials and parts * (Tax rate-Tax
refund rate).

The specific calculation procedures and formulas thereof shall continue to be governed by the relevant provisions of the Supplementary
Circular of the Ministry of Finance and the State Administration of Taxation on Some Tax Issues Concerning Export Goods (CaiShuiZi
[1997] No.014).

The above-mentioned tax rate and tax refund rate mean the tax rate and tax refund rate applicable to re-export goods.

(2)

The issue concerning tax refund (exemption) for bid-winning mechanical and electronic products.

The bid-winning mechanical and electronic products of the old enterprises with foreign investment through international bidding for
projects using the loans of foreign governments or international financial organizations shall be governed by the method of collection
first and refund later”. Specific measures for administration of documents needed for applying for tax refund and examination and
approval procedures shall be governed by the relevant provisions of the Circular of the State Administration of Taxation on the Promulgation
ofthe Measures for Administration of Tax Refund (Exemption) for Export Goods (GuoShuiFa [1994] No.031 and the Circular of the State
Administration of Taxation on the Promulgation of the Specific Provisions on Some Issues Concerning Tax Refund (Exemption)for Export
Goods (GuoShuiFa [1999] No. 101).

(3)

The issue concerning tax refund (exemption) for export goods within bonded areas.

Tax may not be refunded (exempted) for the goods of the old enterprises with foreign investment moved to the bonded areas. When the
enterprises within the bonded areas purchase goods from the old enterprises with foreign investment outside the areas, they must
report relevant contents of special invoices for value-added tax to the competent tax authorities for the record, and after the said
goods are exported or re-exported after processing, they may apply for tax refund (exemption) according to the provisions.

(4)

The issue concerning tax refund (exemption) for steel “produced to substitute import”.

Tax collection and refund for export goods processed and produced by the old enterprise with foreign investment using duty-free steel
“produced to substitute import” shall be administered by applying mutatis mutandis the current measures for administration of tax
collection for processing trade, and shall be governed specifically by the relevant provisions of paragraph 1 of Article 18 of the
Circular on the Promulgation of the Rules for the Implementation of the Measures for Improvement of Steel “Produced to Substitute
Import” (GuoShuiFa [1999] No.68), promulgated by five ministries and commissions such as the State Administration of Taxation.

(5)

The issue concerning tax refund for repair and replacement operations.

When the old enterprises with foreign investment carry out foreign repair and replacement operations, their labor service incomes
from repair and replacement shall be exempt from the value-added tax, but the tax shall not be refunded. The tax shall be refunded
for the spare parts and raw materials used for their repair and replacement operations according to the special invoices for value-added
tax for their purchases and the applicable tax refund rate.

(6)

The issue concerning treasury adjustment for tax “exemption or credit”.

After the old enterprises with foreign investment implement the tax “exemption, credit and refund” measures, the treasury adjustment
for their “exempted or credited” taxes shall be governed by the Circular on the Issue Concerning Budget Management in the Implementation
of the Tax “Exemption, Credit and Refund” Measures of the Ministry of Finance, the State Administration of Taxation and the People’s
Bank of China (CaiYuZi [1998] No.242).

III.

On the issue concerning administration of tax refund (exemption) for export goods

(1)

The old enterprises with foreign investment shall, in accordance with the provisions of the GuoShuiFa [1994] Document No.031 of the
State Administration of Taxation and by presenting their industrial and commercial business license and other relevant materials,
go through the tax refund registration procedures with the tax authorities in charge of tax refund before the end of the year 1999.
If an enterprise fails to go through the tax refund registration procedures, the tax may not be refunded (exempted) for its export
goods.

If an old enterprise with foreign investment enters into dissolution, merger or change, it shall, within 30 days from the date of
approving its dissolution, merger or change, go through the tax refund registration procedures for cancellation or change with the
tax authority in charge of tax refund.

(2)

The old enterprises with foreign investment shall have full-time or part-time persons for managing their export tax refund (hereinafter
referred to as the tax operator), to whom the tax authorities in charge of tax refund shall issue the Tax Operator Certificate after
they pass training and qualification examination. Any person without the Tax Operator Certificate may not engage in export tax refund
operations. When an enterprise changes its tax operator, it shall timely make report to the competent tax authority to cancel the
Tax Operator Certificate. If the enterprise fails to make such report timely, the enterprise shall be liable for all tax refund activities
and responsibilities occurred between the former tax operator and the tax authority after the change.

(3)

The foreign-related tax authorities of State tax bureaus in all places shall be specifically responsible for routine administration
of export tax refund (exemption) for the old enterprises with foreign investment such as certificate issuance, inspection, settlement
and materials examination and safekeeping. The foreign-related tax authorities shall be responsible for accepting, on a monthly basis,
the advance applications of the enterprises under tax “exemption, credit and refund” for tax refund (exemption) and the applications
of the enterprises under “collection first and refund later” for tax payment or refund and for examining and approving tax exemption,
credit and refund and the tax amount payable and for handling the procedures of carrying the tax amount on income payable not yet
credited onto the following period to be credited. The import and export tax authorities shall be responsible for accepting, on a
quarterly basis, the consolidated applications of the enterprises under tax “exemption, credit and refund” for tax refund (exemption),
for accepting, on a monthly basis, the applications of the enterprises under the “collection first and refund later” for tax refund,
for examining and approving the amount of tax exemption, credit and refund, for informing the tax collection authorities to adjust
the amount of tax exemption and credit and for handling the tax refund procedures.

(4)

Export tax refund (exemption) for the old enterprises with foreign investment shall be managed by computer, and the specific procedures
thereof shall be governed by the Circular of the State Administration of Taxation on the Promulgation of the Measures for Electronic
Administration of Export Tax Refund (GuoShuiFa [1996] No.79).

IV.

On the issue concerning the checking up of export goods

(1)

All localities are required to check up the goods exported before November 1, 1999 by the old enterprises with foreign investment
which implement the tax refund (exemption) measures. The enterprises’ export goods which are declared to the Customs and leave the
territory before November 1, 1999 but are treated as sales in the accounting books after November 1,1999 shall continue to be governed
by the export tax exemption measures.

(2)

If imported materials and parts are purchased before November 1,1999 but are not yet written off at the moment, the old enterprises
with foreign investment shall, by presenting the Registration Manual of Processing with Imported Materials issued by the Customs
and other relevant certificates, apply to the tax authorities in charge of tax refund for supplemental issuance of the Application
Form for Processing Trade with Imported Materials.

The State Administration of Taxation
1999-10-08

MEASURES FOR THE IMPLEMENTATION OF COLLECTION OF INDIVIDUAL INCOME TAX TO THE INCOME OF SAVINGS DEPOSIT INTEREST

Category	TAXATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1999-09-30	Effective Date	1999-11-01

Measures for the Implementation of Collection of Individual Income Tax to the Income of Savings Deposit Interest

(Promulgated by Decree No.272 of the State Council of the People’s

Republic of China on September 30, 1999 and effective as of the date of November 1, 1999)

    Article 1 These Measures are formulated in accordance with the
provision of Article 12 of the Individual Income Tax Law of the People’s
Republic of China.Article 2 The individuals gaining income from savings deposit interest
of renminbi and foreign currency from savings institutions in the People’s
Republic of China shall pay individual income tax according to these
Measures.Article 3 The criterion of collection to individual income tax to the
income  of savings deposit interest is the savings deposit interest of
renminbi and foreign currency gained by taxpayers.Article 4 The collection to individual income to savings deposit
interest shall apply proportional tax rate of 20 percent.Article 5 The income of savings deposit interest of education gained by
individuals and other specific savings deposit defined by financial
department under the State Council or the income from specific foundation
deposit interest with the savings quality shall exempt from collection of
individual income tax.  The education savings related by the preceding clause mean individuals
open accounts in authorized banks in accordance with the relevant
provisions of the state and deposit standard amount of fund, and use them
only for the aim of education.Article 6 The collection of individual income tax to the income of
savings deposit interest shall be computed and collected based on the
income from interest every time.Article 7 The collection of individual income tax to the income of
savings deposit interest shall take the savings institutions paying
interest as withholding agents and execute withholding and remitting.Article 8 Where a withholding agents pay interest to depositors
or
handle the business of automatic transfer deposit of savings deposit,
withholding agents withhold and remit tax payments according to law.  Where withholding agents withhold tax payments, they
shall make a mark
on the interest documents given to depositors.Article 9 Withholding agents shall bring the tax payments deducted
every month into the central exchequer within 7 days next month and file
report list of withholding and remitting tax payments to local competent
tax authorities; where the deducted tax payments are foreign currency,
withholding agents shall convert them into renminbi in accordance with
the base renminbi exchange rate of the last day of the previous month
ahead of payments quoted by People’s Bank of China and bring them into the
central exchequer in renminbi.Article 10 2 percent commission is given to withholding agents based on
deducted tax payments.Articled 11 Tax authorities shall strengthen control and check to the
situation of withholding and remitting tax payments of withholding agents.
Withholding agents shall cooperate actively with tax authorities, and
report the situation accurately, and provide all relevant information.
They may not refuse to cooperate and may not conceal the facts.Article 12 The collection of individual income tax to the income of

savings deposit interest shall be collected and managed by State Tax Bureau
in accordance with the Law of the People’s Republic of China on the
Administration of Tax Collection and Individual Income Tax Law of the
People’s Republic of China.Article 13 The savings institutions called by these Measures mean the
institutions, such as commercial banks, urban credit cooperatives, credit
cooperatives in rural areas handling savings business approved by People’s
Bank of China and it’s branches and the institution such as postal
enterprises handling savings business in accordance with law.Article 14 The income from interest fruited by savings deposit before

October 31, 1999 shall be exempted from individual income tax; where the
income of interest is fruited by the savings deposit after December 1,
1999, individual income tax shall be collected according to these Measures.

Article 15 these Measures shall enter into effect as of the date of
December 1, 1999.

INTERIM MEASURES OF THE CUSTOMS CONCERNING VESSEL TONNAGE DUES

Category	CUSTOMS	Organ of Promulgation	The Government Administration Council	Status of Effect	In Force
Date of Promulgation	1952-09-29	Effective Date	1952-09-29

Interim Measures of the Customs of the People’s Republic of China Concerning Vessel Tonnage Dues

Note:

(Approved by the Financial and Economic Committee of the Government

Administration Council on September 16, 1952 and promulgated and put into
effect by the General Customs Administration on September 29, 1952)

Article 1 Vessel tonnage dues (hereinafter referred to as tonnage) shall
be levied by the Customs in accordance with these Measures on foreign
registered vessels and Chinese registered vessels chartered by foreign firms
and Chinese or foreign registered vessels used by Chinese-foreign equity joint
ventures (including vessels sailing exclusively within the ports) sailing in
the ports of the People’s Republic of China.

It is not necessary for the said vessels paying tonnages to pay additional
vehicle and vessel service licence fees to the tax authorities.

Article 2 Tonnages are divided into two types: one to be paid once every
three months and the other to be paid once every 30 days, to be chosen by the
payers themselves when they apply for the payment of the tonnages. The scale
and rate of the tonnages are as follows:

1. Those to be paid once every three months:

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2. Those to be paid once every 30 days shall be levied at half the rates
in the above list.

The tonnage shall be levied on an incoming vessel from the date of its
declaration for entry. If the vessel does not leave China at the expiration
of the tonnage licence, the levy shall continue as of the next day of the
expiration.

Article 3 The tonnage for a vessel which is registered in or belongs to
a foreign country which has entered into a treaty or agreement with the
People’s Republic of China for mutual preferential treatment of tonnages or
fees levied on vessels shall be levied at a preferential rate. The rates of
tonnages to be levied once every three months are as follows:

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If a vessel paying the tonnage as stipulated under this Article applies
to make payment once every 30 days in accordance with the procedures in the
preceding Article, the tonnage shall be levied at half the rates in the above
list.

Article 4 A foreign registered vessel or a Chinese registered vessel
chartered by a foreign firm shall submit the vessel tonnage licence and the
declaration at the Customs for examination and entry or clearance purposes
as stipulated by the Customs when it arrives at or leaves a port where there
is a Customs establishment. If the original licence has expired at the time
of entry or the tonnage has not been paid before, it shall file a declaration
at the time of entry, make the declaration at the Customs and pay the tonnage
by submitting (1) the certificate of the vessel’s registry (or the testimonial
signed and issued by the port authorities to testify that this certificates
has been kept in their custody) and (2) the certification of the vessel’s
tonnage for examination.

Article 5 If the term of validity of the tonnage licence of the above
vessel has expired after its declaration for entry or if it sails exclusively
within the port, it shall make a declaration at the Customs, pay the tonnage
and obtain a new licence as stipulated in the preceding Article upon
expiration of the original licence. If it fails to make a declaration and pay
the tonnage within 5 days of expiration, it shall be fined according to file
stipulation in Article 14 of these Measures.

Article 6 A foreign registered vessel specially permitted to sail to or
from a place where there is no Customs establishment shall submit the vessel
tonnage licence to the local port authorities for examination (it shall be
submitted to the local frontier public security organs or frontier forces for
examination in a place without port authorities) as stipulated in Article
4 of these Measures when it arrives at or leaves the port. At the expiration
of the original licence, it shall also make a declaration at the local tax
bureau as stipulated in Article 4 and Article 5 of these Measures and the
bureau shall collect the tonnage and issue a new licence in lieu of the
Customs according to these Measures. If it fails to make a declaration within
the time limit, it shall be fined in accordance with Article 14.

Article 7 The payer shall pay the tonnage within 5 days (Sundays and
statutory holidays excepted) of the issue of the Notice of Tonnage Payment by
the Customs (or the tax bureau) and the Customs (or the bureau) shall issue
the vessel tonnage licence. If the time limit is exceeded, the Customs (or the
bureau) shall collect a fine for delaying payment of 1 millesimal of the
payable tonnage daily from the sixth day to the day of full payment of the
tonnage and pay it into the treasury as Customs fines.

Article 8 In the case of a Chinese registered vessel chartered by a
foreign firm or a foreign registered vessel chartered by a Chinese public or
private enterprise, the vehicle and vessel service licence tax or the vessel
tonnage already paid shall remain valid if it has not expired at the beginning
or termination of the charter. However. the vessel shall make a declaration
at the Customs’ and pay the tonnage or make the declaration at the tax bureau
and pay the vehicle and vessel service licence tax upon its expiration on the
basis of the charter at the time.

Article 9 The tonnage amount shall not be readjusted within the term of
validity of the tonnage licence already obtained even if the net weight of a
vessel is increased or reduced due to repairs. However, at the time of the
next payment of tonnage, an application shall be made for the adjustment of
the tonnage amount on the basis of the certificate of tonnage after its
change of weight. If the increase in weight is not disclosed and declared
with the intention of evading tonnage payment, the vessel shall be fined as
stipulated in Article 14 of these Measures.

Article 10 In any of the following cases for a vessel which has paid
tonnage, the Customs shall annotate and comment on the extension of the term
of the licence validity according to the actual number of days after examining
the papers submitted by the port authorities:

(1) a vessel sailing into a port in the country for asylum or repair;

(2) a vessel under quarantine and unable to embark or disembark passengers
or cargos;

(3) a vessel having been commandeered and chartered by the Central
Government or a local people’s government.

Article 11 The following foreign registered vessels shall be exempt
from tonnages:

(1) vessels for use by embassies, legations and consulates of countries
having diplomatic relations with China;

(2) vessels with papers from the local port authorities to take asylum,
undergo repairs, suspend service or be disassembled and not to embark or
disembark passengers or cargos;

(3) mooring pontoons, floating-bridge pontoons and floating boats used
exclusively for embarking or disembarking passengers or cargos and storing
goods;

(4) vessels commandeered or chartered by the Central Government or local
people’s governments;

(5) international vessels which are exempt from making declarations at
the Customs for entry as stipulated in Article 27 of the Provisional Customs
Law.(Note 1.)

Article 12 If a charter-party goes through Customs formalities before
the vessel arrives at the port, it shall submit a written guarantee to the
Customs house to assure submission upon entry of the vessel of the tonnage
licence for examination or payment of the tonnage and application for licence
according to regulations. The term of validity of the licence shall begin on
the date of the vessel’s declaration for entry.

Article 13 If the tonnage licence obtained by a charter-party is defaced
or lost during the term of validity, it shall make a written application to
the original licence-issuing Customs establishment (or for tax bureau) for a
copy of the tonnage licence. No further payment required.

Article 14 All formalities shall be observed within the time limit set.
A charter-party who fails to make a declaration, pay the tonnage and obtain
the licence shall be fined not more than three times the payable tonnage
amount and the fine shall be paid into the treasury as Customs’ fines.

Article 15 These Measures shall go into force as of the date of
promulgation.

Note:

Note 1. The Provisional Customs Law has been superseded by the Customs
Law of the People’s Republic of China, which was adopted at the 19th Meeting
of the Standing Committee of the Sixth National People’s Congress of the
People’s Republic of China on January 22, 1987. — The Editor.

PROCEDURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE SUPERVISION OF INTERNATIONAL SAILING VESSELS AND THE GOODS ON BOARD

REGULATIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR CONTROL OVER BAGGAGE OF PASSENGERS COMING FROM OR GOING TO HONG KONG AND MACAO

CRIMINAL LAW OF THE PEOPLE’S REPUBLIC OF CHINA

The National People’s Congress

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

No.83

The Criminal Law of the People’s Republic of China has been revised at the Second Session of the Fifth National People’s Congress
on March 14, 1997, hereby promulgate the revised edition, and shall enter into force as of October 1, 1997.

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

March 14, 1997

Criminal Law of the People’s Republic of China ContentsPart 1 General Provisions

Chapter I The Tasks, Basic Principles and Scope of Application of the

Criminal Law

Chapter II Crimes

Section 1 Crimes and Criminal Responsibility

Section 2 Preparation for a Crime, Criminal Attempt and Discontinuation

of a Crime

Section 3 Joint Crimes

Section 4 Crimes committed by a unit

Chapter III Punishments

Section 1 Types of Punishments

Section 2 Public Surveillance

Section 3 Criminal Detention

Section 4 Fixed-term Imprisonment and Life Imprisonment

Section 5 The Death Penalty

Section 6 Fines

Section 7 Deprivation of Political Rights

Section 8 Confiscation of Property

Chapter IV The Concrete Application of Punishments

Section 1 Sentencing

Section 2 Recidivists

Section 3 Voluntary Surrender and Rendering Meritorious Service

Section 4 Combined Punishment for Several Crimes

Section 5 Suspension of Sentence

Section 6 Commutation of Punishment

Section 7 Parole

Section 8 Limitation

Chapter V Other Provisions Part 2 Specific Provisions

Chapter I Crimes of Endangering the State Security

Chapter II Crimes of Endangering Public Security

Chapter III Crimes of Undermining the Socialist Market Economic Order

Section 1 Crimes of Production and Sale of Fake or Substandard

Commodities

Section 2 Crimes of Smuggling

Section 3 Crimes of Impairing Order of Administering upon Companies

and Enterprises

Section 4 Crimes of Undermining Order of Administering upon Banking

Section 5 Crimes of Financial Fraud

Section 6 Crimes of Endangering Taxes Collection and Administration

Section 7 Crimes of Infringing upon Intellectual Property Rights

Section 8 Crimes of Disturbing Market Order

Chapter IV Crimes of Infringing upon the Rights of the Person and the

Democratic Rights of Citizens

Chapter V Crimes of Property Violation

Chapter VI Crimes of Obstructing the Administration of Public Order

Section 1 Crimes of Disturbing Public Order

Section 2 Crimes of Impairing Judicial Activities

Section 3 Crimes of Impairing Regulations of National Boundary

(Borderline)

Section 4 Crimes of Impairing Regulations of Cultural Relics

Section 5 Crimes of Endangering Public Health

Section 6 Crimes of Undermining Protection of Environmental Resource

Section 7 Crimes of Smuggling, Trafficking in, Transporting and

Manufacturing Narcotic Drugs

Section 8 Crimes of Organizing, Forcing, Luring, Sheltering and

Introducing Women into Prostitution

Section 9 Crimes of Manufacturing, Trafficking in and Disseminating

Pornographic Articles

Chapter VII Crimes of Endangering Interests of National Defence

Chapter VIII Crimes of Embezzlement and Bribery

Chapter IX Crimes of Dereliction of Duty

Chapter X Crimes Contrary to Duties Committed by Servicemen

Supplementary Provisions

Part 1 General Provisions

Chapter I The Tasks, Basic Principles and Scope of Application of the Criminal Law

Article 1

This Law is formulated with a view to punishing crimes and protecting the people, and in accordance with the Constitution, and in
the light of the concrete experiences in fighting against crimes and the actual circumstances.

Article 2

The tasks of the Criminal Law of the People’s Republic of China are to use criminal punishments to fight against all criminal acts
in order to defend the security of the State; to defend the political power of the people’s dictatorship and socialist system; to
protect property owned by the State and the property collectively owned by the working people; to protect the citizens’ privately
owned property; to protect the citizens’ rights of the person and their democratic and other rights; to maintain public order and
economical order, and to safeguard the smooth progress of the cause of the socialist revolution and socialist construction.

Article 3

Where an act is expressly defined in laws as a criminal act, it shall be determined and punished as a criminal act in accordance with
the law; where an act is not expressly defined in the laws as a criminal act, it shall not be determined and punished as a criminal
act.

Article 4

Anyone who commit a crime shall be equal in applying the law. No one is privileged to be beyond the law.

Article 5

The lightness or heaviness of the punishments shall be in accordance with the criminal acts and the criminal responsibility of the
criminals.

Article 6

This Law is applicable to anyone who commits a crime within the territory of the People’s Republic of China, unless the case is covered
by special legal provisions.

This Law is also applicable to anyone who commits a crime on board a ship or an aircraft of the People’s Republic of China.

If the criminal act or its consequence takes place within the territory of the People’s Republic of China, the crime shall be deemed
to have been committed within the territory of the People’s Republic of China.

Article 7

This Law is applicable to the citizens of the People’s Republic of China who commit crimes prescribed in this Law outside the territory
of the People’s Republic of China; however, they may not be investigated if for those crimes this Law prescribes a maximum punishment
of fixed-term imprisonment of not more than three years.

This Law is applicable to state functionaries and servicemen of the People’s Republic of China who commit crimes outside the territory
of the People’s Republic of China.

Article 8

This Law may be applicable to any foreigner who commits a crime outside the territory of the People’s Republic of China, against the
state of the People’s Republic of China or against its citizens, if for that crime this Law prescribes a minimum punishment of fixed-term
imprisonment of not less than three years; however, this does not apply to a crime that is not punishable according to the law of
the place where it was committed.

Article 9

This Law is applicable to the crimes prescribed in the international treaties concluded or acceded to by the People’s Republic of
China and over which the People’s Republic of China has criminal jurisdiction within its obligation in accordance with the treaties.

Article 10

If any person commits a crime outside the territory of the People’s Republic of China for which according to this Law he would bear
criminal responsibility, he may still be dealt with according to this Law, even if he has already been tried in a foreign country.
However, if he has already received criminal punishment in the foreign country, he may be exempted from punishment or given a mitigated
punishment.

Article 11

The criminal responsibility of foreigners who enjoy diplomatic privileges and immunities shall be resolved through diplomatic channels.

Article 12

If an act committed after the founding of the People’s Republic of China and before the entry into force of this Law was not deemed
a crime under the laws in force at the time, those laws shall apply. If the act was deemed a crime under the laws in force at that
time and is subject to prosecution under the provisions of Section 8, Chapter IV of the General Provisions of this Law, criminal
responsibility shall be investigated according to those laws. However, if this Law does not deem it a crime or imposes a lighter
punishment, this Law shall apply.

The effective judgments made in accordance with the laws in force at that time before the entry into force of this Law, shall keep
their effectiveness.

Chapter II Crimes

Section 1 Crimes and Criminal Responsibility

Article 13

A crime refers to an act that endangers the sovereignty and territorial integrity and security of the state; dismembers the state
and subverts the political power of the people’s dictatorship and overthrows the socialist system; disrupts social order and economic
order; violates property owned by the state or collectively owned by the working people; violates the citizens’ privately owned property
or infringes upon the citizens’ rights of the person and their democratic and other rights; and any other act that endangers society
and is punishable according to law. However, an act that is clearly of minor importance and little harm shall not be considered a
crime.

Article 14

An intentional crime refers to a crime committed by a person who clearly knows that his act will produce socially dangerous consequences
but who wishes or allows such consequences to occur.

Criminal responsibility shall be borne for intentional crimes.

Article 15

A negligent crime refers to a crime committed by a person who should have foreseen that his act would possibly produce socially dangerous
consequences but who fails to do so through negligence or, having foreseen the consequences, readily believes that they can be avoided,
the result being that these consequences do occur.

Criminal responsibility shall be borne for negligent crimes only when the law so provides.

Article 16

If an act in fact results in harmful consequences due to unavoidable or unforeseeable causes rather than intent or negligence, it
shall not be a crime.

Article 17

Any person who has reached the age of 16 and who commits a crime shall bear criminal responsibility.

Any person who has reached the age of 14 but not the age of 16 and who commits homicide, intentionally injuring another person resulting
in serious bodily injury or death, rape, robbery, selling narcotic drugs, arson, causing explosion, or spreading poisons, shall bear
criminal responsibility.

Any person who has reached the age of 14 but not the age of 18 and who commits a crime shall be given a lighter or mitigated punishment.

If a person is not punished because he has not reached the age of 16, the head of his family or his guardian shall be ordered to discipline
and educate him. When necessary, he may also be taken in by the government for reeducation.

Article 18

If a mental patient causes dangerous consequences at a time when he is unable to recognize or control his own conduct, and such a
circumstance is confirmed by a forensic doctor, he shall not bear criminal responsibility, but his family members or guardian shall
be ordered to keep him under strict surveillance and arrange for his medical treatment. When necessary, he may also be arranged for
medical treatment under coercion by the government.

Any person whose mental illness is of an intermittent nature shall bear criminal responsibility if he commits a crime when he is in
a normal mental state.

Any mental patient who does not lose completely the ability to recognize or control his own conduct and commits a crime shall bear
criminal responsibility, but he may be given a lighter or mitigated punishment.

Any intoxicated person who commits a crime shall bear criminal responsibility.

Article 19

Any deaf-mute or blind person who commits a crime may be given a lighter or mitigated punishment or be exempted from punishment.

Article 20

Where a person conducts an act to stop an unlawful infringement in order to avert an immediate and unlawful infringement of the state’s
interest or of the public interest or of his own or another person’s rights of the person, or property rights, or other rights, resulting
in harm to the unlawful infringer, such an act shall be justifiable defence, and criminal responsibility shall not be borne for such
an act.

Criminal responsibility shall be borne if justifiable defence apparently exceeds the limits of necessity and causes serious harm;
however, a mitigated punishment or exemption from punishment shall be given.

Where a defence is conducted to an immediate violent crime of committing physical assault, committing homicide, robbery, rape, kidnapping,
and other crimes seriously endangering the security of a person, and it causes bodily injury or death to the unlawful infringer,
such an act shall not be defence that exceeds the limits of necessity, and criminal responsibility shall not be borne for such an
act.

Article 21

Criminal responsibility shall not be borne for an act that a person is compelled to commit in an emergency to avert an immediate danger
to the state’s interest or the public interest or to his own or another person’s rights of the person or property rights or other
rights, and that causes harm.

Criminal responsibility shall be borne if an act committed in an emergency to avert danger exceeds the limits of necessity and causes
undue harm; however, a mitigated punishment or exemption from punishment shall be given.

The provisions of the first paragraph of this Article with respect to averting danger to oneself shall not apply to a person who is
charged with specific responsibility in his post or profession.

Section 2 Preparation for a Crime, Criminal Attempt and Discontinuation of a Crime

Article 22

Preparation for a crime refers to the preparation of the instruments or the creation of the conditions for a crime.

An offender who prepares for a crime may, in comparison with one who completed the crime, be given a lighter or mitigated punishment
or be exempted from punishment.

Article 23

A criminal attempt refers to a case where an offender has already begun to commit a crime but is prevented from completing it for
reasons independent of his will.

An offender who attempts to commit a crime may, in comparison with one who completed the crime, be given a lighter or mitigated punishment.

Article 24

Discontinuation of a crime refers to cases where, in the process of committing a crime, the offender voluntarily quits continuing
the crime or voluntarily and effectively prevents the consequences of the crime from occurring.

Where an offender who discontinues a crime and causes no harm, exempted from punishment shall be given; where an offender causes harm,
a mitigated punishment shall be given.

Section 3 Joint Crimes

Article 25

A joint crime refers to an intentional crime committed by two or more persons jointly.

A negligent crime committed by two or more persons jointly shall not be punished as a joint crime; those who should bear criminal
responsibility shall be individually punished according to the crimes they have committed.

Article 26

A principal criminal refers to any person who organizes and leads a criminal group in carrying out criminal activities or plays a
principal role in a joint crime.

A criminal group refers to any relatively stable criminal organization which is composed of more than three persons for the purpose
of committing a crime jointly.

A ringleader who organizes and leads a criminal group shall be given a punishment according to all the crimes the group has committed.

A principal criminal unless otherwise stipulated in the third paragraph shall be given a punishment according to all the crimes that
he participates in or organizes or commands.

Article 27

An accomplice refers to any person who plays a secondary or auxiliary role in a joint crime.

An accomplice shall be given a lighter or mitigated punishment or be exempted from punishment.

Article 28

A person who is compelled to participate in a crime shall, according to the circumstances of his crime, be given a mitigated punishment
or be exempted from punishment.

Article 29

A person who instigates others to commit a crime shall be punished according to the role he has played in the joint crime. Anyone
who instigates a person under the age of 18 to commit a crime shall be given a heavier punishment.

If the instigated person has not committed the instigated crime, the instigator may be given a lighter or mitigated punishment.

Section 4 Crimes Committed by a Unit

Article 30

A company, enterprise, institution, organ, or public organization that conducts an act harmful to society, where such an act is stipulated
as a crime, shall bear criminal responsibility.

Article 31

A unit which commits a crime shall be punished with a fine, and the person(s) directly in charge and other person(s) directly involved
in the crime shall be given a punishment. Where Specific Provisions of this Law or other laws stipulate otherwise, such stipulation
shall be applied.

Chapter III Punishments

Section 1 Types of Punishments

Article 32

Punishments are divided into principal punishments and supplementary punishments.

Article 33

The principal punishments are as follows:

(1)

public surveillance;

(2)

criminal detention;

(3)

fixed-term imprisonment;

(4)

life imprisonment; and

(5)

the death penalty.

Article 34

The supplementary punishments are as follows:

(1)

fines;

(2)

deprivation of political rights; and

(3)

confiscation of property.

Supplementary punishments may be imposed independently.

Article 35

Deportation may be imposed independently or supplementarily to a foreigner who commits a crime.

Article 36

If a victim has suffered economic losses as a result of a crime, the criminal shall, in addition to receiving a criminal sanction
according to law, be sentenced to make compensation for the economic losses in the light of the circumstances.

If a criminal who bears civil responsibility and is punished with a fine in the meantime, has no enough property to pay off, or is
punished with confiscation of property, he shall first bear responsibility of civil compensation to the victim.

Article 37

If the circumstances of a person’s crime are minor and do not require punishment, he may be exempted from criminal sanctions; however,
he may, according to the different circumstances of each case, be reprimanded or ordered to make a statement of repentance, offer
an apology, pay compensation for the losses or be subject to administrative punishment or administrative sanctions by the competent
department.

Section 2 Public Surveillance(*1)

Article 38

The term of public surveillance shall not be less than three months and not more than two years.

Where a criminal is sentenced to public surveillance, his sentence shall be executed by a public security organ.

Article 39

A criminal who is sentenced to public surveillance must observe the following rules during the term in which his sentence is being
executed:

(1)

observe laws and administrative regulations, submit to supervision;

(2)

forbidden to exercise the rights of freedom of speech, of the press, of assembly, of association, of procession and of demonstration
without approval of the public organ;

(3)

report on his own activities according to the demand of the organ executing the public surveillance;

(4)

observe the stipulation on meeting with guests by the organ executing the public surveillance; and

(5)

report and obtain approval from the organ executing public surveillance for departure from the county or city where he lives or change
in residence.

Criminals sentenced to public surveillance shall, while engaged in labour, receive equal pay for equal work.

Article 40

Upon the expiration of a term of public surveillance, the executing organ shall immediately announce the termination of public surveillance
to the criminal sentenced to public surveillance and to his unit or the masses of the place of his residence.

Article 41

A term of public surveillance shall be counted from the date the judgment begins to be executed; if the criminal is held in custody
before the execution of the judgment, each day spent in custody shall be considered as two days of the term sentenced.

Section 3 Criminal Detention

Article 42

A term of criminal detention shall not be less than 1 months and not more than 6 months.

Article 43

Where a criminal is sentenced to criminal detention, his sentence shall be executed by the public security organ in the vicinity.

During the period of execution, a criminal sentenced to criminal detention may go home for one to two days each month; an appropriate
remuneration may be given to those who participate in labour.

Article 44

A term of criminal detention shall be counted from the date the judgment begins to be executed; if the criminal is held in custody
before the execution of the judgment, each day in custody shall be considered as one day of the term sentenced.

Section 4 Fixed-Term Imprisonment and Life Imprisonment

Article 45

A term of fixed-term imprisonment, unless otherwise stipulated in Article 50 and Article 69 , shall not be less than 6 months and
not more than 15 years.

Article 46

A criminal sentenced to fixed-term imprisonment or life imprisonment shall serve his sentence in prison or another place for execution.
Anyone who is able to work shall participate in labour, and accepts education and reform.

Article 47

A term of fixed-term imprisonment shall be counted from the date the judgment begins to be executed; if the criminal is held in custody
before the execution of the judgment, each day in custody shall be considered as one day of the term sentenced.

Section 5 The Death Penalty

Article 48

The death penalty shall only be applied to criminals who have committed the most heinous crimes. If the immediate execution of a criminal
punishable by death is not deemed necessary, a two-year suspension of execution may be pronounced simultaneously with the imposition
of the death sentence.

All death sentences except for those that according to law should be decided by the Supreme People’s Court, shall be submitted to
the Supreme People’s Court for approval. Death sentences with a suspension of execution may be decided or approved by a higher people’s
court.

Article 49

The death penalty shall not be imposed on persons who had not reached the age of 18 at the time the crime was committed or to women
who are pregnant at the time of trial.

Article 50

If a person sentenced to death with a suspension of execution does not commit an intentional crime during the period of suspension,
his punishment shall be commuted to life imprisonment upon the expiration of that two-year period; if he performs great meritorious
service, his punishment shall be commuted to fixed-term imprisonment of not less than 15 years and not more than 20 years upon the
expiration of that two-year period; if it is verified that be has committed an intentional crime, the death penalty shall be executed
upon the approval of the Supreme People’s Court.

Article 51

The term of suspension of execution of a death penalty shall be counted from the date the judgment becomes final. The term of a fixed-term
imprisonment that is commuted from a death penalty with suspension of execution shall be counted from the date of expiration of the
term of suspension of execution of a death.

Section 6 Fines

Article 52

The amount of any fine imposed shall be determined according to the circumstances of the crime.

Article 53

A fine may be paid in a lump sum or in installments within the time limit specified in the judgment. If a fine is not paid upon the
expiration of that time limit, the payment shall be compelled. If a person is unable to pay all the fine, a people’s court shall,
when it finds that the person subjected to execution has any other property, pursue the payment at any time. If a person has true
difficulties in paying because of an unavoidable disaster, the fine may be reduced or remitted according to the circumstances.

Section 7 Deprivation of Political Rights

Article 54

Deprivation of political rights refers to deprivation of the following rights:

(1)

the right to vote and to stand for election;

(2)

the rights of freedom of speech, of the press, of assembly, of association, of procession, and of demonstration;

(3)

the right to hold a position in a state organ; and

(4)

the right to hold a leading position in any state-owned company or enterprise, institution or people’s organization.

Article 55

A term of deprivation of political rights shall not be less than one year and not more than five years, except as stipulated in Article
57 of this Law.

If a person sentenced to public surveillance is deprived of political rights as a supplementary punishment, the term of deprivation
of political rights shall be the same as the term of public surveillance, and the punishments shall be executed simultaneously.

Article 56

Criminals who commit crimes of endangering the state security shall be sentenced to deprivation of political rights as a supplementary
punishment; Criminals who commit crimes of intentional homicide, rape, arson, causing explosion, spreading poisons, robbery and other
crimes which seriously undermine public order may also be sentenced to deprivation of political rights as a supplementary punishment.

If deprivation of political rights is imposed independently, stipulation of the Specific Provisions of this Law shall be applied.

Article 57

Criminals who are sentenced to death or to life imprisonment shall be deprived of political rights for life.

If a death penalty with a suspension of execution is commuted to a fixed-term imprisonment, or a life imprisonment is commuted to
a fixed-term imprisonment, the term of the supplementary punishment of deprivation of political rights shall be changed to not less
than three years and not more than ten years.

Article 58

A term of deprivation of political rights as a supplementary punishment shall be counted from the date on which imprisonment or criminal
detention ends or from the date on which parole begins. Deprivation of political rights shall of course be in effect during the period
in which the principal punishment is being executed.

Criminals who are sentenced to deprivation of political rights shall observe laws and administrative regulations and relevant stipulations
on supervision and administration promulgated by the Department of Public Security under the State Council, submit to supervision;
and shall not exercise the rights of freedom stipulated in Article 54 of this Law.

Section 8 Confiscation of Property

Article 59

Confiscation of property refers to the confiscation of part or all of the property personally owned by a criminal. When all of the
property of a criminal is confiscated, necessaries of life for the criminal and his dependent family members shall be left out.

When a sentence of confiscation of property is imposed, property that the criminal’s family members own or should own shall not be
subject to confiscation.

Article 60

If it is necessary to use a confiscated property to repay legitimate debts that the criminal incurred before his property is confiscated,
such debts shall be paid at the request of the creditors.

Chapter IV The Concrete Application of Punishments

Section 1 Sentencing

Article 61

When sentencing a criminal, a punishment shall be imposed based on the facts, nature and circumstances of the crime, the degree of
harm done to society and the relevant provisions of this Law.

Article 62

In cases where the circumstances of a crime call for a heavier or a lighter punishment under the provisions of this Law, the criminal
shall be sentenced to a punishment within the limits of the prescribed punishment.

Article 63

In cases where the circumstances of a crime call for a mitigated punishment under the provisions of this Law, the criminal shall be
sentenced to a punishment less than the prescribed punishment.

Even if the circumstances of a crime do not warrant a mitigated punishment under the provisions of this Law, the criminal may, upon
approval of the Supreme People’s Court, be sentenced to a punishment less than the prescribed punishment according to the special
particulars of the case.

Article 64

All property illegally obtained by a criminal shall be recovered, or compensation shall be ordered. Legal property of the victim shall
be returned. Contrabands and possessions of the criminal that were used in the crime shall be confiscated. The property confiscated
and fine shall be turned over to the State Treasury, and shall not be misappropriated or disposed without authorization.

Section 2 Recidivists

Article 65

If a criminal commits another crime punishable by fixed-term imprisonment or heavier penalty within five years after serving his sentence
of not less than fixed-term imprisonment or receiving a pardon, he is a recidivist and shall be given a heavier punishment. However,
this shall not apply to cases of negligent crime.

For criminals who are paroled, the period stipulated in the preceding paragraph shall be counted from the date the parole expires.

Article 66

A criminal who has committed a crime of endangering the state’s security at any time after serving his sentence or receiving a pardon
shall, if he commits another crime of endangering the state’s security, be dealt with as a recidivist.

Section 3 Voluntary Surrender and Rendering Meritorious Service

Article 67

Voluntary Surrender refers to the case that anyone who voluntarily surrenders himself to a judicial organ after committing a crime,
and truthfully confesses his crime. A criminal who conducts voluntary surrender may be given a lighter or mitigated punishment. Those
whose crimes are relatively minor may be exempted from punishment.

If a suspected criminal or defendant under compulsory measure or criminal who serves a sentence truthfully confesses his other crimes
that is unknown to a judicial organ, he shall be dealt with as voluntary surrender.

Article 68

A criminal who is verified that he discloses another person’s crime, or provides key clues that lead to solve another case or renders
other meritorious service may be given a lighter or mitigated punishment. Those who renders great meritorious service may be given
a mitigated punishment or be exempted from punishment.

Those who not only conducts voluntary surrender but also renders great meritorious service shall be given a lighter punishment or
be exempted from punishment.

Section 4 Combined Punishment for Several Crimes

Article 69

For a criminal who commits several crimes before a judgment is pronounced, unless he is sentenced to death or life imprisonment, his
term of punishment shall be decided in such a way that it may not exceed the total of the terms for all the crimes and must be longer
than the maximum term for any one of the crimes, depending on the circumstances of each case. However, the term of public surveillance
may not exceed three years, the term of criminal detention may not exceed one year, and fixed-term imprisonment may not exceed twenty
years.

If among the crimes there are any for which a supplementary punishment is imposed, the supplementary punishment must still be executed.

Article 70

If after a judgment has been pronounced but before the punishment has been completely executed it is discovered that b

PROVISIONS FOR LABOR MANAGEMENT IN CHINESE-FOREIGN JOINT VENTURES

Provisions of the PRC for Labor Management in Chinese-Foreign Joint Ventures

(Promulgated by the State Council on and Effective as of July 26, 1980)

Article 1. The labor management problems of Chinese-foreign joint ventures ( hereafter referred to as “joint ventures”) shall all be handled
in accordance with these Provisions, except for the those governed by the provisions of Article 6, Paragraph 2 of the Law of the
People’s Republic of China on Chinese-Foreign Joint Ventures.

Article 2. The employment, dismissal and resignation of the staff and workers of joint ventures, and their production and work tasks, wages
and awards and punishments, work schedules and holidays and paid leaves of absence, labor insurance and welfare benefits, labor protection,
labor discipline and other matters shall be prescribed through the signing of labor contracts.

A labor contract shall be signed collectively by the joint venture and the venture’s union organization; a relatively small joint
venture may sign contracts with staff and workers on an individual basis.

After a labor contract is signed, it must be submitted to the labor management department of the people’s government of the relevant
province, autonomous region or municipality directly under the central authority for approval.

Article 3. The staff and workers of a joint venture, whether recommended by the local department in charge of the venture or the local labor
management department, or recruited by the joint venture itself with consent of the labor management department, must all be tested
by the joint venture and selected for employment on the basis of their qualifications.

Joint ventures may establish skilled worker’s schools and training courses for the training of managerial personnel and skilled workers.

Article 4. A joint venture may dismiss staff and workers who become superfluous as a result of changes in production and technical conditions
if, after training, they cannot meet its requirements and they are not suitable for transfer to other work; but the venture must
give them compensation in accordance with provisions of the labor contract.

The dismissed staff and workers shall be assigned other work by the department in charge of the venture or by the labor management
department.

Article 5. A joint venture may, in accordance with the seriousness of the case, impose necessary sanctions against staff and workers who violate
the rules and regulations of the venture and thereby cause certain bad consequences. The sanction of discharge must be reported to
the department in charge of the venture and the labor management department for approval.

Article 6. If the trade union considers the joint venture’s dismissal of or imposition of sanctions against staff and workers to be unreasonable,
it has the right to raise an objection and to send representatives to resolve the matter through consultation with the board of directors;
if the matter cannot be resolved through consultation, it shall be handled in accordance with the procedures set forth in Articles
14 of these Provisions.

Article 7. When, because of special circumstances, staff and workers of a joint ventures, in accordance with the provisions of the labor contract,
submit their resignations to the venture through their trade union, the venture shall give its consent.

Article 8. The wage levels of the staff and workers of joint ventures shall be fixed at 120 to 150 per cent of the real wages of the staff and
workers of state enterprises in the locality in the same line of business.

Article 9. The system of wage standards, types of wages, bonuses, subsidies, etc. for staff and workers of a joint venture shall be discussed
and decided by the board of directors.

Article 10 The bonus and welfare fund for staff and workers that is established by a joint venture from its profits must be used for bonuses
and the collective welfare of the staff and workers, and may not be misappropriated.

Article 11. A joint venture must pay the labor insurance and medical expenses of the Chinese staff and workers, as well as the various government
subsidies for staff and workers, in accordance with the standards for state enterprises.

Article 12. Matters such as the employment, dismissal, resignation, pay, welfare and social insurance of foreign staff and workers of a joint
venture shall be provided for in the employment contract.

Article 13. Joint ventures must implement the rules and regulations of the Chinese Government concerning labor protection and ensure safety in
production and civilized production, and the labor management department of the Chinese Government has the right to carry out supervision
and inspection.

Article 14. Labor disputes that occur in a joint venture shall first of all be resolved through consultation between the two disputing parties;
if consultation cannot resolve the matter, one or both parties to the dispute may request arbitration by the labor management department
of the people’s government of the province, autonomous region or municipality directly under the central authority where the joint
venture is located; if one party does not accept the arbitration award, it may file a suit in the people’s courts.

Article 15. The right to interpret these Provisions resides in the State General Labor Bureau of the People’s Republic of China.

Article 16. These Provisions shall go into effect on the day of their promulgation.

(The English translations are for reference only)

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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 OFFICE OF THE STATE COUNCIL CONCERNING ISSUES IN RELATION TO COMPETENCE AND PROCEDURES FOR INTERPRETING ADMINISTRATIVE REGULATIONS

LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON DONATION FOR PUBLIC WELFARE UNDERTAKINGS

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME TAX ISSUES CONCERNING EXPORT GOODS OF ENTERPRISES WITH FOREIGN INVESTMENT

MEASURES FOR THE IMPLEMENTATION OF COLLECTION OF INDIVIDUAL INCOME TAX TO THE INCOME OF SAVINGS DEPOSIT INTEREST

INTERIM MEASURES OF THE CUSTOMS CONCERNING VESSEL TONNAGE DUES

PROCEDURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE SUPERVISION OF INTERNATIONAL SAILING VESSELS AND THE GOODS ON BOARD

REGULATIONS OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR CONTROL OVER BAGGAGE OF PASSENGERS COMING FROM OR GOING TO HONG KONG AND MACAO

CRIMINAL LAW OF THE PEOPLE’S REPUBLIC OF CHINA

PROVISIONS FOR LABOR MANAGEMENT IN CHINESE-FOREIGN JOINT VENTURES

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