China Laws

CIRCULAR OF THE STATE COUNCIL CONCERNING PROMOTING SELF-OPERATED IMPORT AND EXPORT OF THE PRODUCTION ENTERPRISES

Category	FOREIGN TRADE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1993-05-12	Effective Date	1993-05-12

Circular of the State Council Concerning Promoting Self-operated Import and Export of the Production Enterprises

(May 12, 1993)

To authorize the large- and medium-size production enterprises to operate
import and export so as to enable them to participate directly in competition
in the international market is one of the important measures of deepening
enterprise reform and vitalizing the large- and medium-size state-owned
enterprises, which is of great importance to quicken the pace of reform and
opening to the outside world and develop foreign trade in this country. Since
issuing of Circular of the State Council Concerning Vitalizing the Large- and
Medium-Size State-Owned Enterprises and Circular of the State Council
Concerning Approval and Transmitting of Suggestions by the Ministry of Foreign
Economic Relations and Trade and the Production Office of the State Council on
Authorizing the Production Enterprises to Operate Import and Export, the
production enterprises which are authorized to operate import and export have
amounted to more than one thousand due to the effort made by the relevant
departments. The growth rate of the aggregate export value and self-operated
expert value of these enterprises are higher than the average growth level of
export throughout the country, they have obviously become one of the important
sources of foreign currency.

With a view of implementing in an all-round way the Regulations on
Transformation of Operational Mechanism of the State-Owned Enterprises,
keeping abreast of the socialist market economy regime and giving full play to
the superiority of the production enterprises in self-operated import and
export, the measure on the relevant matters are hereunder provided for:

1. The production enterprises which are authorized to operate import and
export (hereinafter referred to as “the self-operated enterprises”), after
going through the formalities of registration with the industry and commerce
administration, are to qualify as external legal person. The self-operated
enterprises may establish organization for import and export internally when
necessary. Qualified large-scale enterprise group(s) may establish a wholly
owned subsidiary company for import and export subject to approval. The
self-operated enterprises may export their products and relative technology
and import technology, equipment, spare parts and accessories, raw materials
needed in their production. Eligible self-operated enterprises may be granted
contractual management right for construction projects abroad.

The self-operated enterprises are obligated to fulfill the tasks of
export and earning foreign exchange assigned by the state, subordinate
themselves to the management and coordination by the local competent economic
and trade departments and submit information on their business operation and
statistics to the competent foreign economic and trade departments as required.

2. The local people’s governments and the departments concerned of the
State Council shall give support to the self-operated enterprises in every
respect. With a view to promoting the import and export of the self-operated
enterprises, the rights and the preferential policies to which the
self-operated enterprises are enpost_titled shall be positively granted, timely
guidance and assistance shall be rendered and personnel training for the
self-operated enterprises shall be given importance to. To the enterprises
which shoulder heavier task of earning foreign exchange by export, necessary
assistance and guarantee shall be provided in respect of raw material supply,
power supply, transportation arrangement, loans for circulating funds, etc.
so as to help them solve the difficulties in production and operation.

The State Economic and Trade Commission and the Ministry of Foreign Trade
and Economic Co-operation shall strengthen the coordination and administration
in self-operated import and export, resolve the problems and difficulties
in time and help the enterprises to enhance their ability to participate in
the competition on the world market. The competent authorities of foreign
trade at all levels shall incorporate the self-operated enterprises into
uniform administration and statistics at the state or local level, assign
annual export task and formulate tax refund plan in the light of actual
conditions prevailing in the self-operated enterprises and give necessary
guidance in respect of foreign trade policy and business.

3. The self-operated enterprises shall be treated equally with the foreign
trade enterprises in respect of the preferential import and export policy of
the state. The self-operated enterprises should apply for quota and licence
according to the relevant regulations of the state in their import and export
business involving commodities covered by the quota and licence control.

The self-operated enterprises may participate in bid on an equal basis
with the foreign trade enterprises for the export quota and licence
distributed through tendering or auction. The tax refund on export for the
foreign trade enterprises shall be uniformly practised for the self-operated
enterprises and timely, adequate refund shall be made to them based on the
principle of “refund to the full amount of export”.

4. The self-operated enterprises, after fulfilling the task of handing
over the required amount of foreign exchange earnings to the state, are
enpost_titled to use the foreign exchange self-retained and to make adjustment, no
department or unit is allowed to appropriate or withhold the foreign exchange
retained by the enterprises, to withhold the RMB repayable to the enterprises
after handing over the reimbursable foreign exchange earnings or to attach any
condition to the use of the foreign exchange earnings retained. The qualified
self-operated enterprises may open cash account in foreign currency with the
bank(s) authorized to handle foreign exchange business subject to approval by
the competent authorities. The self-operated enterprises are encouraged to
develop the business of import for the expansion of export, for the foreign
exchange earnings from it, within the amount and turnover approved, the amount
handing over to the state treasury shall be calculated in terms of net foreign
exchange earnings on the scale stipulated by the state.

5. The self-operated enterprises may open a circulating fund account of
RMB and foreign exchange with the bank(s) handling business of foreign
exchange settlement. The foreign trade circulating fund loan application filed
by the self-operated enterprises shall be considered by the bank on the
merits of their performance in production and operation, and requirements for
import and export, and the preferential interest rate for foreign trade shall
be applied. The self-operated enterprises may apply for export credit with the
relevant banks of the state in accordance with relevant regulations. The
self-operated enterprises are enpost_titled to decide on the use of fund retained
upon entry into force of the General Rules Governing Enterprise Financial
Affairs and the Accounting Criteria for Enterprises. The self-operated
enterprises may establish an export risk fund, withdrawal, utilization and
management of which shall be done as provided for by the Ministry of Finance.

6. The self-operated enterprises are enpost_titled to decide on theirown the
number and list of business personnel of the enterprises going abroad
frequently, and one-time approval for multiple trips within one year shall be
followed subject to approval by the competent authorities. Political scrutiny
in the case of director(general manager)of the enterprise going abroad shall
be carried out by the personnel department at a higher level, and in the case
of other persons of the enterprise going abroad shall be conducted by the said
enterprise’s personnel department. The enterprise may submit an application to
its responsible department for its persons going abroad with the letter(cable)
of invitation by a foreign firm, and the visa application and other procedures
in relation to departure shall be handled by the department in charge of
foreign affairs after approval.

The self-operated enterprises which are authorized by the State Council
to approve temporary business trips abroad (out of the territory) and
invitation to China may within their scope of business approve in their power
temporary business trips abroad (out of the territory) of the personnel from
their enterprises and invitation to foreign businessmen to China, and may
accomplish the formalities of departure from and entry into the country as
stipulated. In the case of directors(general managers), approval shall be
given by competent departments.

the self-operated enterprises may use their own foreign exchange earnings
to finance business trips abroad of their personnel out of the need of
developing their foreign business; in case of shortage in their own foreign
exchange earnings, they may apply to competent authorities for adjustment.
The relevant departments shall provide necessary assistance and facilities
for the self-operated enterprises to participate in or hold exhibitions,
business talks or trade fairs both at home or abroad.

7. The self-operated enterprises are encouraged to establish maintenance
and repair service network out of the territory (excluding Hongkong and
Macao), for this purpose the approval procedures shall be further simplified.
The establishment of the service network to meet the needs of their business
operations out of the territory (excluding Hongkong and Macao) for which the
investment by the Chinese side is less than one million US dollars may be
approved by the enterprises themselves, in the case of more than one million
US dollars (including one million US dollars), it shall be submitted for
approval as stipulated by the state. The maintenance and repair network so
established out of the territory shall strictly abide by the state regulations
on assets, finance, taxation and foreign exchange, etc. as well as the regime
and provisions for investment out of the territory provided for by the state.

8. The self-operated enterprises shall build up a reputation for their
brands in the market both at home and abroad. In the case of one trade mark,
the registration of which at home is by a production enterprise and by a
foreign trade enterprise abroad, the production enterprise after being
authorized to operate import and export business itself may become transferee
of the trade mark registered abroad by the foreign trade enterprise on the
basis of reimbursement; if the self-operated enterprise intends to use a
trade mark which has been registered by a foreign trade enterprise in china,
it shall sign a licencing agreement with the foreign trade enterprise in
accordance with the relevant law and guarantee the quality of the products
bearing the trade mark.

9. The self-operated enterprises of machinery and electronic products
shall be encouraged to expand their export for increasing foreign exchange
earnings while improving their economic efficiency. For the self-operated
enterprises of machinery and electronic products with linkage of the
aggregate salary with its economic performance, one more scale factor linking
the aggregate salary to the increase of their export value (or the foreign
exchange earnings received) may be added apart from the fixed coefficient
between total wage quota and the profits and taxes realized in pursuance of
the Circular of the State Council on Approval and Transmitting of the
Suggestions by the Machinery and Electronic Products Export Office of the
State Council on Further Promoting Export of Machinery and Electronic
Products, with the factors not exceeding 1 accumulatively. The calculation
therefor shall be governed by the Circular on the Calculation of Wage
Increases on the Basis of the Increased Floating Ratio of the Foreign
Exchange Earned by Export for the Production Enterprises of Machinery and
Electronic Products for Export by the former Machinery and Electronic
Products Export Office of the State Council, the Ministry of Labour and the
Ministry of Finance.

10. the self-operated enterprises must strictly abide by the policies,
laws and regulations on foreign trade by the state and operate under the
guidance and supervision of the competent authorities for foreign trade at
all levels. They must be oriented towards both the domestic and international
markets, aggressively develop new products, improve product quality, upgrade
their products and enhance the ability of competition in the international
market. They shall transform their operational mechanism, streamline internal
management, reduce cost and raise economic efficiency. They should positively
join the relevant chamber of commerce of importers and exporters, and be
subordinate to the guidance and coordination of the chamber in consideration
of the state interest. To keep a breast of the healthy development of
internationalized operation, the leading cadres and foreign trade personnel
of the enterprises shall enhance their political and business quality.

Reference shall be made to the above measures for the scientific and
research institutions which are authorized to manage import and export
business.

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE QUESTIONS CONCERNING THE APPLICABLE TAX RATE AND DEDUCTION OF CALCULATED TAX AMOUNT RELATED TO INCOME OF ENTERPRISES WITH FOREIGN INVESTMENT FROM OUTSIDE CHINA

The State Administration of Taxation

Circular of the State Administration of Taxation on the Questions Concerning the Applicable Tax Rate and Deduction of Calculated Tax
Amount Related to Income of Enterprises with Foreign Investment from Outside China

GuoShuiFa [1993] No.39

July 14,1993

In accordance with the related stipulations of the Income Tax Law on Enterprises with Foreign Investment and Foreign Enterprises and
its Rules for the Implementation (hereinafter referred to as the Tax Law and Rules), we hereby clarify the question concerning the
applicable tax rate related to the income gained by an enterprise with foreign investment from outside China and the question concerning
calculation of deduction of the income tax already paid outside China:

In accordance with Article 71 of the Rules, the reduced tax rate as stipulated in the Tax Law is applicable only to the income gained
by a enterprise with foreign investment from production and operation carried out in appropriate districts. Therefore, with regard
to the income gained by a enterprise with foreign investment from outside China, enterprise income tax and 1ocal income tax shall
be calculated and levied without exception in accordance with the stipulations of Article 5 of the Tax Law.

II.

As regards the item which states “the total amount of payable tax calculated in accordance with the Tax Law on incomes gained from
inside and outside China” as set in the formula for calculating the quota of overseas tax payment to be deducted as listed in Article
84 of the Rules, the total amount of income gained from inside and outside China shall be calculated in accordance with the enterprise
income tax rate and local income tax rate as stipulated in Article 5 of the Tax Law.

III.

This Circular shall enter into force as of the day of receipt of the document.

The State Administration of Taxation
1993-07-14

PROTECTION OF RIGHTS AND INTERESTS OF THE AGED

Category	PROTECTION OF CITIZENS’ RIGHTS AND INTERESTS	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1996-08-29	Effective Date	1996-10-01

Law of the People’s Republic of China on the Protection of Rights and Interests of the Aged

Contents
Chapter I  General Provisions
Chapter II  Maintenance and Support by the Family
Chapter III  Safeguarding by the Society
Chapter IV  Participation in Social Development
Chapter V  Legal Liability
Chapter VI  Supplementary Provisions

(Adopted at the 21st Meeting of the Standing Committee of the Eighth

National People’s Congress on August 29, 1996 and promulgated by Order No.73
of the President of the People’s Republic of China on August 29, 1996)
Contents

Chapter I General Provisions

Chapter II Maintenance and Support by the Family

Chapter III Safeguarding by the Society

Chapter IV Participation in Social Development

Chapter V Legal Liability

Chapter VI Supplementary Provisions
Chapter I General Provisions

Article 1 This Law is enacted in accordance with the Constitution for the
purpose of protecting the lawful rights and interests of the aged, developing
the undertakings for them and carrying forward the virtue of the Chinese
nation with respect to respecting and supporting the aged.

Article 2 The aged mentioned in this Law refer to citizens over the age
of sixty.

Article 3 The state and society should take measures to perfect the
social security system for the aged and gradually improve the conditions of
ensuring their lives and health and their participation in social development
in order to provide the aged with living support, medical services, working
conditions, educational opportunities and recreational facilities.

Article 4 The state protects the statutory rights and interests enjoyed
by the aged.

The aged have the right to material assistance from the state and society
and to benefit from achievements in social development.

Discrimination against, insult of, maltreatment of or desertion of the
aged shall be prohibited.

Article 5 People’s governments at various levels should incorporate the
undertakings for the aged into their plans for national economy and social
development, gradually increase the financial input and encourage social
investments in order to ensure that the undertakings for the aged develop in
coordination with economic and social progress.

The State Council and the people’s governments of provinces, autonomous
regions and municipalities directly under the central government shall take
organizational measures to coordinate relevant departments in ensuring the
protection of rights and interests of the aged. The specific organs shall be
designated by the State Council and the people’s governments of provinces,
autonomous regions and municipalities directly under the central government.

Article 6 The protection of lawful rights and interests of the aged is a
common responsibility of the whole society.

State organs, public organizations, enterprises and institutions should,
within the scope of their respective duties and responsibilities, ensure the
protection of rights and interests of the aged.

Residents committees, villagers committees and other organizations
established for the aged according to law should serve the aged by conveying
their demands and safeguarding their lawful rights and interests.

Article 7 The whole society should widely launch a publicity campaign for
respecting and supporting the aged in order to form a social mode of
respecting, caring for and assisting the aged.

Youth organizations, schools and kindergartens should educate youths and
children in ethics of respecting and supporting the aged as well as in legal
systems for safeguarding lawful rights and interests of the aged.

Voluntary service for the aged shall be advocated.

Article 8 People’s governments at various levels shall give commendations
and rewards to units, families and individuals that have made outstanding
achievements in safeguarding lawful rights and interests of the aged and
respecting and supporting the aged.

Article 9 The aged should observe laws and disciplines and should perform
statutory duties.
Chapter II Maintenance and Support by the Family

Article 10 Families are the chief support for the aged to live their
lives. Family members should care for the aged.

Article 11 A supporter should perform the duty to pay the aged person
living expenses, look after him and comfort him mentally and should give
consideration to his special requirements.

A supporter refers to a child of the aged person or a person having the
duty to support him according to law.

The spouse of a supporter should assist him in performing the duty to
support the aged person.

Article 12 A supporter should provide medical expenses and nursing
service for the aged person suffering from illness.

Article 13 A supporter should provide proper accommodation for the aged
person. He shall not force the aged person to remove to a poor house.

Children and other relatives of an aged person shall not seize the house
possessed or leased by the aged person and shall not change the ownership or
the lease without authorization.

A supporter has the duty to maintain the house possessed by the aged
person.

Article 14 A supporter has the duty to cultivate farmland contracted for
management by the aged person and take charge of his forest trees and
livestock. Proceeds derived therefrom shall belong to the aged person.

Article 15 A supporter shall not refuse to perform his duty to support
the aged person on the grounds of waiving the right to inheritance or for
other reasons.

If a supporter fails to perform his duty, the aged person has the right to
demand support payments from the supporter.

A supporter shall not require the aged person to do physical labour beyond
his strength.

Article 16 The aged and their spouses have the duty to maintain each
other.

Younger brothers or sisters who are brought up by their elder brothers or
sisters, if they can afford it after coming of age, have the duty to maintain
their elder brothers or sisters who are old and have no any supporter.

Article 17 Supporters may, with the consent of the aged person, sign an
agreement on performance of their duties to support the aged person. Residents
committees, villagers committees or the organizations to which the supporters
belong shall supervise over the performance of the agreement.

Article 18 The freedom of marriage of the aged shall be protected by law.
Children and other relatives shall not interfere with the divorce, remarriage
and married lives of the aged.

The duties of a supporter shall not terminate with the change of the
marriage of the aged person.

Article 19 The aged have the right to dispose of their own property
according to law. Their children or other relatives shall neither interfere
with the disposal of property nor extort money and gifts from them.

The aged have the right to inherit property from their parents, spouses,
children or other relatives according to law and have the right to accept
donation.
Chapter III Safeguarding by the Society

Article 20 The state establishes an old-age insurance system to safeguard
the basic living standard of the aged.

Article 21 Pensions and other treatment enjoyed by the aged according to
law shall be guaranteed. Organizations concerned must pay pensions in full on
time and shall nether delay without justification and nor appropriate them for
other purpose.

The state increases pensions on the basis of economic development, living
improvement of the people and wage rise of workers and staff members.

Article 22 In addition to an old-age insurance system suitable for actual
conditions in rural areas, bases for providing for the aged may, if possible,
be established in part of mountains, forests, water surfaces, beaches and so
on, which are owed by collectives and management of which are not yet
contracted by individuals. Proceeds derived therefrom shall be provided for
the aged.

Article 23 For the aged in cities and towns who are unable to work and
have no financial sources, if they have no supporter or their supporters have
really no ability to support or maintain them, the local people’s governments
shall provide relief for them.

For the aged in rural areas who are unable to work and have no financial
sources, if they have no supporter or their supporters have really no ability
to maintain or support them, the rural collective economic organizations shall
guarantee them food, clothing, housing, medical care and burial expenses.
People’s governments of townships, nationality townships or towns shall be
responsible for the implementation of the five guarantees.

Article 24 Citizens or organizations are encouraged to sign support
agreements or other assistance agreements with the aged.

Article 25 The state establishes the medical insurance systems in various
forms to ensure the aged the basic medical care.

Departments concerned should give special consideration to the aged in
formulating the procedures for medical insurance.

Medical treatment enjoyed by the aged according to law shall be guaranteed.

Article 26 If an aged person and his supporter are really unable to pay
medical expenses for his illness, the local people’s government may lend
proper assistance according to the circumstances and may advocate social
assistance.

Article 27 Medical institutions should provide conveniences for the aged
who seek medical treatment and should give priority to the aged who have
reached the age of seventy. Hospital beds in families and mobile medical
service may, if possible in some localities, be provided for aged patients.

Free medical care for the aged is advocated.

Article 28 The state takes measures to ensure geriatric research and
train geriatricians in order to raise the prevention and cure level of senile
illnesses as well as the scientific research level in this regard.

Hygienic education shall be given in various forms in order to popularize
knowledge of health care in old age and enhance the awareness of health
protection by the aged.

Article 29 An organization to which an aged person belongs should, in the
light of the actual conditions and relevant standards, give special
consideration to his requirements in assigning, changing and selling its
houses.

Article 30 The construction and reconstruction of public facilities,
residential areas and houses should, according to special requirements of the
aged, include the construction of supporting facilities suitable for lives and
activities of the aged.

Article 31 The aged have the right to continue education.

The state develops education for the aged and encourages social forces to
establish schools of various types for the aged.

People’s governments at various levels should step up leadership on
education for the aged and should make unified planning.

Article 32 The state and society take measures to launch mass activities
in culture, sports and recreation in order to enrich spiritual and cultural
lives of the aged.

Article 33 The state encourages and helps social organizations and
individuals to establish facilities such as welfare centres, home of respect,
apartment houses, medical care centres and cultural and sports centres for the
aged.

Local people’s governments at various levels should, in the light of
economic development in their localities, gradually increase their
appropriations for welfare undertakings for the aged and establish welfare
facilities for them.

Article 34 People’s governments at various levels should guide
enterprises in development, production and marketing of daily necessities for
the aged in order to satisfy their requirements.

Article 35 Community service shall be developed in order to establish
gradually facilities and networks for living service, cultural and sports
activities, nursing and recovery as required by the aged.

By carrying forward the tradition of mutual aid, the neighbourhood is
advocated to care for and help the aged with difficulties.

Social volunteers are encouraged and supported to serve the aged.

Article 36 Local people’s governments at various levels may, in the light
of their conditions, give preferential treatment and special consideration to
the aged who travel as visitors or tourists or take public transport vehicles.

Article 37 The aged in rural areas need not do obligatory labour and
accumulative labour.

Article 38 Broadcasting, films, televisions and periodicals should serve
the aged by reflecting their lives and spreading propaganda on safeguarding
their lawful rights and interests.

Article 39 The aged who have real difficulties in paying litigation costs
when bringing lawsuits for infringement of their lawful rights and interests
may be allowed a deferment, a reduction of the payment or its exemption. The
aged who are unable to pay lawyer’s fees when lawyers are required may receive
legal assistance.
Chapter IV Participation in Social Development

Article 40 The state and society should value knowledge and skills of the
aged as well as their experience from revolution and construction, respect
their virtues and give full play to their ability and role.

Article 41 The state should create conditions for the aged to participate
in socialist construction for material growth and cultural and ideological
progress. In the light of social requirements and actual conditions, the aged
are encouraged to engage in any of the following activities based on
valuntariness and capability.

(1) educating youths and children in socialism, patriotism and
collectivism as well as in traditional virtues such as hard struggle and plain
living;

(2) teaching knowledge of culture and science and technology;

(3) providing consultancy service;

(4) engaging in scientific and technological development and application
according to law;

(5) engaging in business operations and production according to law;

(6) establishing public welfare institutions;

(7) helping maintain public order and mediate civil disputes; and

(8) engaging in other social activities.

Article 42 Income earned lawfully through labour by the aged shall be
protected by law.
Chapter V Legal Liability

Article 43 Where the lawful rights and interests of an aged person are
infringed upon, the infringed or his agent has the right to appeal to the
competent authorities for disposition, or bring a lawsuit at a people’s court
according to law.

The people’s court and the competent authorities shall promptly dispose of
a complaint, a charge or an exposure regarding an infringement upon the lawful
rights and interests of an aged person according to law, and shall not evade
or delay the disposition.

Article 44 Departments or organizations failing to perform the duty to
safeguard the lawful rights and interests of the aged shall be admonished and
criticized, and be ordered to make corrections by the competent departments at
higher levels.

Where state functionaries neglect their duties, in violation of law, and
infringe upon the lawful rights and interests of the aged, the units to which
they belong or their higher authorities shall order them to make corrections
or impose disciplinary sanctions upon them; if a crime has been constituted,
criminal liability shall be investigated according law.

Article 45 Where an aged person involves in disputes with his family
member over the performance of duty to support him or over housing or property
issues, he may appeal to the organization to which the family member belongs,
or the residents committee or villagers committee for mediation, or may
directly bring a lawsuit at a people’s court.

When the disputes mentioned in the preceding paragraph are dealt with by
mediation, the erring family member shall be admonished and criticized and
ordered to make corrections.

The people’s court may order advance execution of cases involving the
claims for support payments by an aged person.

Article 46 Whoever, by violence or other means, publicly insults an aged
person, or fabricates facts to defame him, or maltreats him, if the
circumstances are relatively minor, shall be punished in accordance with the
relevant provisions of the Regulations on Administrative Penalties for Public
Security, and, if a crime has been instituted, be investigated for criminal
liability according to law.

Article 47 Whoever forcibly interferes with the freedom of marriage of an
aged person, or refuses to perform his duty of supporting an aged person, if
the circumstances are serious and a crime has been instituted, shall be
investigated for criminal liability according to law.

Article 48 Where a family member steals, swindles, forcibly seizes,
extorts or intentionally destroys property of an aged person, if the
circumstances are relatively minor, he shall be punished in accordance with
the relevant provisions of the Regulations on Administrative Penalties for
Public Security, and if a crime has been instituted, be investigated for
criminal liability according to law.
Chapter VI Supplementary Provisions

Article 49 The people’s congresses of national autonomous areas may
formulate regulations with appropriate adaptations or supplements in
accordance with the principles laid down in this Law and in light of the
specific conditions of folkways and customs of the local nationalities.

Article 50 This Law comes into force on August 1, 1996.

INTERIM MEASURES FOR EXEMPTION FROM THE IMPORT DUTIES ON THE SPECIAL-PURPOSE ARTICLES FOR THE DISABLED

Category	CUSTOMS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1997-04-10	Effective Date	1997-04-10

Interim Measures for Exemption From the Import Duties on the Special-purpose Articles for the Disabled

(Approved by the State Council on January 22, 1997 and promulgated by

Decree No.61 of the General Customs Administration on April 10, 1997)

Article 1 These Measures are formulated with a view to supporting
the work of recovery of the disabled, facilitating the import of the
special-purpose articles for the disabled.

Article 2 Customs import duties and value-added taxes or consumption
taxes in import links shall be exempted from on the following import
special-purpose articles for the disabled:

(1) The propping and auxiliary utensils, artificial limbs and relevant
parts, artificial eyes, artificial noses, supporting belts for internal
organs, orthopedic appliances, orthopedic shoes, non-motorized walking-aids,
means of transport instead of walk(not including cars, motors), self-help
living appliances, or special sanitary materials for the mutilated persons;

(2) Walking-sticks for the persons disabled in eyes, guided glasses for
the blind, sight-aids, reading appliances for the blind;

(3) Language training appliances for the lingually or aurally disabled;

(4) Action training appliances and living ability training articles for
the intellectually disabled.

When importing the special-purpose articles for the disabled as
prescribed in the proceeding paragraph, the duty payers shall go through
the formalities of exemption from Customs duties directly at the Customs
authorities.

Article 3 The following special-purpose articles for the disabled which
are imported by relevant units and can not be made in China shall, upon the
approval of the Ministry of Civil Affairs or the Chinese Federation for the
disabled according to subordinate relations and after examination of
the General Customs Administration, be exempted from Customs import duties
and value-adding taxes or consumption taxes:

(1) Recovery equipments and special-purpose equipments for the disabled,
including guarding equipments of beds or wards of hospitals, central guarding
equipments, biochemical analysing instruments and ultrasonic diagnosing
instruments;

(2) Specific educational equipments and professional educational
equipments for the disabled;

(3) Instruments of assessing and gauging of professional ability for the
disabled;

(4) Special-purpose working instruments and working protection instruments
for the disabled;

(5) Special-purpose instruments for the cultural and sports acts of the
disabled;

(6) Special-purpose equipments for producing assembling and testing
artificial limbs,including special-purpose milling and polishing machines,
special-purpose vacuum forming machines, special-purpose flat hearing
machines and comprehensively testing instruments employed in artificial
limbs production;

(7) Hearing aids used by persons disabled in ears.

Article 4 The term “relevant units” stipulated in Article 3 of these
Measures denotes:

(1) Enterprises and institutions directly under the Ministry of Civil
Affairs, and welfare institutions, artificial limbs factories and recovery
hospitals for disabled disaled soldiers(including various kinds of sanitariums
for disabled revolutionary soldiers, hospitals and recovery hospitals for
disabled disaled soldiers directly under provinces, autonomous regions and
municipalities directly under the Central Government;

(2) Institutions directly under the Chinese Federation for the Disabled
(the Chinese Welfare Foundation for the Disabled), welfare institutes
and recovery institutes directly under the Federation for the Disabled(the
Welfare Foundation for the Disabled) of provinces, autonomous regions and
municipalities directly under the Central Government;

Article 5 The import special-purpose articles for the disabled with
duties exemption according to These Measures shall not be used for other
purposes.

Where anyone, in violation of the provisions of the proceeding paragraph,
use the import articles with duties exemption for other purposes, and such
an act constitutes a smuggling crime, he shall be investigated for criminal
responsibilities in accordance with law; Where such an act does not
constitutes a crime, the case shall be treated as a smuggling act or an act
violating Regulations on Customs control.

Article 6 Provisions for implementation shall be formulated by the
General Customs Administration in accordance with These Measures.

Article 7 These Measures shall come into effect as of the date of
promulgation.

MEASURES FOR ADMINISTRATION OF BORROWING INTERNATIONAL COMMERCIAL LOANS BY DOMESTIC INSTITUTIONS

19970908the People’s Bank of China

The State Administration of Foreign Exchange

Measures for Administration of Borrowing International Commercial Loans by Domestic Institutions

(Approved by the People’s Bank of China on September 8, 1997, promulgated by the State Administration of Foreign Exchange on September
24, 1997)

Chapter I General Provisions

Article 1

These Measures are formulated in accordance with the Regulations of the People’s Republic of China on Foreign Exchange Control and
other relevant provisions of the State Council for the purpose of improving the administration of the borrowing international commercial
loans

Article 2

The term “international commercial loans” mentioned in these Measures refers to funds raised and borrowed by domestic institutions
from financial institutions, enterprises, individuals or other economic organizations outside the Chinese territory or from financial
institutions with foreign investment within the Chinese territory, which are subject to contractual obligations for repayment in
foreign currency. Export credits, international financial leases, compensation trade repaid in foreign exchange, foreign exchange
deposits of institutions and individuals out of the territory (excluding foreign exchange deposits in banks which are approved to
conduct offshore banking business), project financing, financing under trade with the minimum term of 90 days and other types of
foreign exchange loans shall be regarded and administered as international commercial loans.

Article 3

The People’s Bank of China shall be the examination and approval organ of borrowing international commercial loans by domestic institutions.

The People’s Bank of China shall authorize the State Administration of Foreign Exchange and its branches offices (hereinafter referred
to as the foreign exchange bureaus) to be responsible for the examination, approval, supervision and administration of borrowing
international commercial loans by domestic institutions.

Article 4

A domestic institution must obtain approval from the foreign exchange bureau for borrowing an international commercial loan. An international
commercial loan agreement signed without the approval from the foreign exchange bureau shall be invalid. The foreign exchange bureau
shall not undertake foreign debt registration. The bank shall not open a foreign debt special account for it and the loan principals
and interests shall not be remitted abroad without authorization.

Article 5

Domestic institutions borrowing international commercial loans from foreign parties shall be restricted to:

(1)

Chinese-funded financial institutions authorized by the State Administration of Foreign Exchange to engage in foreign exchange loan
business operations;

(2)

non-financial enterprise legal persons approved by the departments authorized by the State Council.

Article 6

A financial institution borrowing an international commercial loan shall conform to the provisions of the People’s Bank of China on
the administration of the ratio of foreign exchange equity-debt of financial institutions.

Article 7

A non-financial enterprise legal person directly borrowing an international commercial loan from a foreign party shall meet the following
requirements:

(1)

having successively made profits over the previous three years, possessing an import-export business licence and engaging in an industry
encouraged by the State;

(2)

possessing a sound and complete financial management system;

(3)

for a trade-type non-financial enterprise legal person, its net assets shall account for not less than 15 per cent of its total assets;
for a non-trade-type non-financial enterprise legal person, its net assets shall account for not less than 30 per cent of its total
assets;

(4)

the sum of the international commercial loan borrowed and the surplus of the guaranty provided to a foreign party shall not exceed
50 per cent of the equivalent foreign exchange of its net assets;

(5)

the sum of the foreign exchange loan and the surplus of foreign exchange guaranty shall not exceed the foreign exchange revenue created
in the last financial year.

Article 8

A domestic institution shall borrow an international commercial loan on the basis of its own creditworthiness, and shall bear repayment
responsibility of its own accord.

Article 9

In the borrowing of an international commercial loan from a foreign party, a domestic institution shall strengthen the control of
cost. The total cost of its loan shall not exceed the total cost of a loan at the same period from a loan institution of the same
credit grading on the international financial market.

The foreign exchange bureaus shall supervise and direct the cost control in the borrowing of international commercial loans by domestic
institutions.

Article 10

A domestic institution borrowing an international commercial loan from a foreign party shall, in accordance with the provisions of
the State Administration of Foreign Exchange, submit the foreign loan statement for the previous quarter and the annual report on
the use of the international commercial loan to the foreign exchange bureau within the first ten days of each quarter.

Article 11

Foreign Exchange bureaus shall have the right to inspect the situations of the raising, using and repayment of international commercial
loans by domestic institutions. Loan institutions shall provide cooperation and submit the relevant documents and data.

Article 12

Without the approval of a foreign exchange bureau, a domestic institution shall not have the international commercial loan it has
borrowed deposited or directly paid out of the territory or converted into Renminbi for use.

Chapter II Medium-and-long-term International Commercial Loans

Article 13

The term “a medium-and-long-term international commercial loan” mentioned in these Measures refers to an international commercial
loan with a term of more than one year (not including one year), including a usance letter of credit with a term of more than one
year.

Article 14

The borrowing of a medium-and-long-term international commercial loan by a domestic institution shall be listed into the State plan
for the use of foreign capital.

Article 15

When borrowing a medium-and-long-term international commercial loan, a domestic institution shall apply to the foreign exchange bureau
by submitting all or part of the following data:

(1)

documents certifying that the borrowing is listed into the State plan for the use of foreign capital;

(2)

a document of project establishment approval for the loan;

(3)

a letter of intent on loan conditions, which shall include the name of the creditor, currency of the loan, amount, term and grace
period, interest rate, charges, early repayment intents and other financial conditions;

(4)

the source of repayment funds, repayment plan and the foreign exchange guaranty;

(5)

balance sheets in foreign exchange or Renminbi for the previous three years and other financial statements which have been verified
by a public accounting firm;

(6)

other relevant data as required by the foreign exchange bureau.

In addition to the provisions of the preceding paragraph, a branch of a financial institution borrowing a medium-and-long-term international
commercial loan from a foreign party shall also submit the relevant document of authorization from its head office (head company).

Article 16

The borrowing of an international commercial loan by a national institution resided in Beijing from a foreign party shall be directly
submitted to the State Administration of Foreign Exchange for examination and approval;

The borrowing of a loan from a foreign party by a national institution not resided in Beijing or by a local institution shall, after
being verified by the local foreign exchange bureau of the place where it is located, be submitted to the State Administration of
Foreign Exchange for examination and approval.

The branches of national and local financial institutions may make an application for approval only after they have been authorized
by their head offices (head companies).

Chapter III Short-term International Commercial Loans

Article 17

The term “a short-term international commercial loan” mentioned in these Measures refers to an international commercial loan with
a maximum term of one year (including one year), including inter-bank foreign exchange call loans, outward documentary bills, packing
loans and usance letter of credit with a term of more than 90 days but less than 365 days, etc..

Article 18

A short-term international commercial loan shall not be used for investment into long-term projects, fixed assets loans or other inappropriate
purposes.

Article 19

The foreign exchange bureaus shall implement administration of balance in respect of short-term international commercial loans borrowed
by domestic institutions.

Article 20

The balance control quota applied to short-term international commercial loans of domestic institutions (hereinafter referred to as
“the short-term loan quota”) shall be verified by the foreign exchange bureaus annually.

The balance of a short-term international commercial loan borrowed by a domestic institution shall not exceed the verified quota.

Article 21

The short-term loan quota of national financial institutions and non-financial enterprise legal persons shall be verified and made
known to lower levels by the State Administration of Foreign Exchange.

The short-term loan quota of local financial institutions and non-financial enterprise legal persons shall be examined and approved
by the foreign exchange bureaus of the place where they are located within the short-term loan quota verified and made known to lower
levels by the State Administration of Foreign Exchange.

Article 22

A Chinese-funded financial institution approved by the State Administration of Foreign Exchange to engage in international account
settlement businesses shall formulate the measures for the administration of usance letter of credit which shall be submitted to
the foreign exchange bureau for verification.

A Chinese-funded financial institution shall open usance letter of credit in accordance with the measures for the administration of
usance letter of credit that have been verified by the foreign exchange bureau.

A usance letter of credit with a term of more than 90 days but less than 365 days opened by a Chinese-funded financial institution
shall not use its short-term loan quota.

Article 23

If a non-financial enterprise legal person applies to a domestic financial institution with foreign investment to open a usance letter
of credit with a term of more than 90 days but less than 365 days, it shall be use its short-term loan quota.

Article 24

When applying to the foreign exchange bureau for a short-term loan quota, a domestic institution shall submit all or part of the following
data:

(1)

an application (including such contents as fund demand, situations of its credit-worthiness, purposes of the funds, etc.);

(2)

the previous year’s balance sheets and profit and loss statements verified by a public accounting firm;

(3)

a loan commitment letter of intention issued by the credit agency;

(4)

the foreign exchange receipts and expenditures in the previous year;

(5)

other data required by the foreign exchange bureau to be submitted.

Article 25

When borrowing a short-term international commercial loan, a non-financial enterprise legal person which does not implement the administration
of short-term loan quota balance shall have it reported case by case to the foreign exchange bureau, and shall have it included in
the short-term loan quota of the place where it is located.

Chapter IV Project Financing

Article 26

The term “project financing” mentioned in these Measures refers to the method of raising foreign exchange funds out of the territory
in the name of a domestic construction project, with the debt prepayment obligation to the foreign party by the project’s own expected
income and assets. It shall possess the following natures:

(1)

The creditor has no right of recourse over any assets and income other than the construction project;

(2)

The domestic institution is not required to mortgage, pledge or pay debts by using any assets, rights and interests as well as income
other than the construction project;

(3)

The domestic institution is not required to provide any forms of financial guaranty.

Article 27

The scale of financing with a foreign party in respect of project financing shall be incorporated into the State guidelines for borrowing
international commercial loan.

Article 28

The conditions for project financing shall be competitive and shall be examined and approved or examined and verified by the State
Administration of Foreign Exchange. With regard to the conditions for financing of project financing submitted to higher levels by
local authorities, after being preliminarily examined by the local foreign exchange bureau of the places where they are located,
they shall be reported to the State Administration of Foreign Exchange for examination and approval or examination and verification.

Article 29

When reporting the conditions for project financing to the State Administration of Foreign Exchange for examination and approval or
examination and verification, the project company shall submit the following documents:

(1)

an application, which shall include the methods for project financing, amount of money, market, as well as the term and interest rate
of the loan, the various charges and other financing conditions;

(2)

the project feasibility study report or other documents approved by the State Planning Commission;

(3)

documents certifying the incorporation of this project financing into the State guidelines for international commercial loans borrowed;

(4)

a project financing agreement;

(5)

documents with a nature of guaranty related to the project financing;

(6)

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING PRINTING AND DISTRIBUTING THE OPERATIONAL PROCEDURES FOR THE SALES OF AND PAYMENTS IN FOREIGN EXCHANGE AND VERIFICATION OF EXPORT RECEIPTS AND IMPORT PAYMENTS UNDER THE ITEM OF TRANSFER-BETWEEN-FACTORIES DURING FURTHER PROCESSING

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange Concerning Printing and Distributing the Operational Procedures for the Sales
of and Payments in Foreign Exchange and Verification of Export Receipts and Import Payments under the Item of Transfer-between-factories
during Further Processing

Huifa [1999] No.78

March 5,1999

(The circular is omitted here) Attachment:Operational Procedures for the Sales of and Payments in Foreign Exchange and Verification of Export Receipts and Import Payments under
the Item of Transfer-between-factories during Further Processing

In order to standardize the administration of the sales of and payments in foreign exchange under the item of transfer between factories
during further processing, relevant specific operational procedures are hereby stipulated as follows:

In the case of supplied materials approved by Customs to be replaced by imported materials, the transferring-in enterprises are supposed
to conduct the sales of and payments in foreign exchange through DFEBs. DFEBs are supposed to make the sales of and payments in foreign
exchange for transferring-in enterprises against the following documents and to keep properly the documents evidencing the sales
of and payments in foreign exchange for five years for future examination:

(1)

Original declaration form of import goods attached with anti- falsification tag and affixed with Customs’ “proof seal” with the country
(region) of dispatch marked as “People’s Republic of China(142)” and the mode of trade marked as “further processing with imported
materials (0654)”, which is verified as authentic;

(2)

Copy of the transferring-out enterprise’s original declaration form of export goods attached with anti-falsification tag and affixed
with Customs’ “proof seal” with the country (region) of destination marked as “People’s Republic of China (142)” and the mode of
trade marked as “transfer of supplied materials (0255)”;

(3)

Transfer-between-factories contract;

(4)

Verification form of import payments of exchange.

The transferring-in enterprises and transferring-out enterprises are supposed to carry out their procedures of verification of import
payment and export receipts of exchange respectively.

In the case of the imported materials approved by Customs to be replaced by imported materials, DFEBs are supposed to process relevant
procedures of the sales of and payments in foreign exchange or of domestic remittance of exchange for transferring-in enterprises
against the following documents and to keep properly the documents evidencing the sales of and payments in foreign exchange and the
remittance for five years for future examination:

(1)

(2)

(3)

Copy of the transferring-out enterprise’s original verification form of export receipts of exchange affixed with Customs, “proof seal”;

(4)

Transfer-between-factories contract;

(5)

Verification form of import payment of exchange.

The transferring-in enterprises and transferring-out enterprises are supposed to carry out their procedures of verification of import
payment and receipts of exchange respectively.

In the case of the processing with supplied materials being changed as goods for domestic sale, DFEBs are supposed to carry out relevant
procedures of sales of and payments in foreign exchange for enterprises withdrawing export goods for domestic sale against following
documents and to keep properly the documents evidencing the sales of and payments in foreign exchange for five years for future examination:

(1)

Original declaration form of import goods attached with anti- falsification tag and affixed with Customs’ “proof seal” with the country
(region) of dispatch marked as “People’s Republic of China(142)” and the mode of trade marked as “supplied materials and components
for domestic sale (0425)” or “finished products made of supplied materials withdrawn for domestic sale (0345)”, which is verified
as authentic;

(2)

Approval documents for domestic sale issued by the competent authority of foreign economic and trade;

(3)

Relevant contract(s);

(4)

Verification form of import payments of exchange.

DFEBs are supposed not to conduct out sales of and payments in foreign exchange and domestic remittance of exchange under the further
processing transfer-between-factories for their customers in other means.

When DFEBs carry out settlement in respect of transfer-between- factories for enterprises with foreign investment, they are supposed
to make the external payments or the domestic remittance of exchange first with the exchange in own foreign exchange accounts of
enterprises with foreign investment and to sell exchange to FEES for the deficiency only if the payments exceed the balance of accounts
of enterprises with foreign investment.

With respect to the exchange remitted domestically, the deposit bank of the transferring-in enterprise is supposed to mark the expression
of “domestic remittance in transfer-between-factories” when remitting out exchange, the deposit bank of transferring-out enterprises
of materials and components, upon receipt of exchange remitted domestically into its account, is supposed to carry out purchase of
exchange or to keep it in the customer’s accounts in accordance with “Rules for the Implementation of Regulations on Verification
and Cancellation of Foreign Exchange Export Proceeds Collection” and other relevant regulations against the enterprise’s original
verification form of foreign export proceeds collection affixed with Customs’ “proof seal”, and to issue “special copy for verification
of foreign exchange export proceeds collection” as well as to mark the expression of “domestic remittance for transfer between factories”
and the name of the transferring-in enterprise in the “Memorandum” column.

Transferring-out enterprise is supposed to carry out the procedures of verification in SAFE and its branches with the above “special
copy for verification of foreign exchange export proceeds collection”. SAFE, upon verifying, is suppose to check carefully the name
of the transferring-in enterprise in the “special copy for verification of foreign exchange export proceeds collection” against the
name of the transferring-in enterprise in the declaration form and to make clear whether they are consistent with each other.

In the event enterprises make verification by the way of offsetting, SAFE is supposed to check the declaration forms of import or
export goods against Customs’ electronic data and, if there is no discrepancies, to affix the seal of “verified” into the declaration
form of import goods, and carry out the verification of foreign exchange export proceeds collection and to keep the declaration forms
along with the documents for the verification of foreign exchange export proceeds collection for five years for future examination.

SAFE is supposed to inspect the enterprises engaged in the trade under the item of transfer-between-factories during further processing
on an irregular basis and to give penalties in accordance with relevant provisions to those enterprises violating this Operational
Procedures and other regulations of foreign exchange administration.

These Operational Procedures shall enter into force as of March 15, 1999, and the interpretation hereof is supposed to be rested with
SAFE.

The State Administration of Foreign Exchange
1999-03-05

CIRCULAR OF THE STATE DEVELOPMENT PLANNING COMMISSION, THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION FOR ENTRY-EXIT INSPECTION AND QUARANTINE ON LOWERING THE CHARGING STANDARD OF THE QUALITY INSPECTION OF PROCESSING TRADE AND FOREIGN INVESTMENT PROPERTY APPRAISAL

Circular of the State Development Planning Commission, the Ministry of Finance and the State Administration for Entry-exit Inspection
and Quarantine on Lowering the Charging Standard of the Quality Inspection of Processing Trade and Foreign Investment Property Appraisal

JiJiaGe [1999] No.472
April 23, 1999

The price bureaus (commissions) and finance departments (bureaus) of various provinces, autonomous regions and municipalities directly
under the Central Government, the directly subordinate bureaus for import and export commodity inspection :

For the purpose of easing the burden of enterprises and supporting the expansion of exports of foreign trade, it is decided that the
charging standard of the quality inspection of processing trade and foreign investment property appraisal should be lowered temporarily,
the matter concerned is notified as follows:

The quality inspection of processing trade

(I)

The charge for the quality inspection of the incoming materials processing goods is levied at 70% rate of the standard at present
prescribed by the state, the charge of co-test is levied at 35% rate of the standard at present prescribed by the state, the charge
of verification test is levied at 17.5% rate of the standard at present prescribed by the state .

The importing material of incoming material of processing trade is not imposed quality test at all.

(II)

The charge for the quality inspection of the exported goods of processing trade of incoming materials is levied at 70% rate of the
standard at present prescribed by the state, the charge of co-test is levied at 35% rate of the standard at present prescribed by
the state, verification inspection is levied at 17.5% rate of the standard at present prescribed by the state

II.

The appraisal of foreign investment property

(I)

the range of appraisal

The range of appraisal of foreign investment property is confined to the foreign-funded enterprises and various foreign compensation
trades. The overseas investors (Hong Kong, Macao and Taiwan included) invest by entity or the foreign-funded enterprises entrust
the investors abroad to purchase the property from abroad by the investment fund.

(II)

the charging standard

charging 2.5f property value which is under 5 million dollars, changing from the original charge of 43nd other various
rate of property value

charging 2f property value which is between 5 million dollars and 10million dollars

charging 1f property value which is between 10 million dollars and 0.1 billion dollars

charging 0.5f property value which is between 0.1billion dollars and 0.15 billion dollars

free of charge for the parts of the property value of over 0.15 billion dollars

(III)

There is no charge for quality inspection if the appraisal of foreign investment property and quality inspection are handled together.

III.

The hereinabove charging standard enter into force as of May 1, 1999.The hereinabove regulations cease execution until the new charging
standard of inspection and quarantine of the imports and exports of come out.

The State Development Planning Commission, the Ministry of Finance, the State Administration for Entry-exit Inspection
and Quarantine
1999-04-23

INTERPRETATION BY THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING PARAGRAPH 4 IN ARTICLE 22 AND CATEGORY (3) OF PARAGRAPH 2 IN ARTICLE 24 OF THE BASIC LAW OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA

Interpretation by the Standing Committee of the National People’s Congress Regarding Paragraph 4 in Article 22 and Category (3) of Paragraph 2 in Article 24 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China



	(Adopted at the 10th Meeting of the Standing Committee of the Ninth National People’s Congress on June 26, 1999) At its 10th Meeting, the Standing Committee of the Ninth National People’s Congress discussed the State Council’s Proposal for Giving an Interpretation to Paragraph 4 in Article 22 and Category (3) of Paragraph 2 in Article 24 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China. It is in order to respond to the report submitted by the Chief Executive of the Hong Kong Special Administrative Region in accordance with the relevant provisions of Article 43 and those of Category (2) of Article 48 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China that the State Council has put forward the proposal. In view of the fact that the issue raised in the proposal concerns the interpretation of the relevant articles of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China by the Court of Final Appeal of the Hong Kong Special Administrative Region in its judgment made on January 29, 1999, that these provisions concern affairs which are the responsibility of the Central Authorities and the relationship between the Central Authorities and the Hong Kong Special Administrative Region, that the Court of Final Appeal, before making its judgment, failed to seek an interpretation of the provisions from the Standing Committee of the National People’s Congress in accordance with the provisions of Paragraph 3 in Article 158 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China and that the interpretation of the Court of Final Appeal is not in conformity with the original legislative intent, the Standing Committee of the National People’s Congress, after consulting its Committee for the Basic Law of the Hong Kong Special Administrative Region, decides to give the following interpretations to the relevant provisions in the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China in accordance with the provisions of Category (4) of Article 67 of the Constitution of the People’s Republic of China and Paragraph 1 in Article 158 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China: 1.The provisions of Paragraph 4 in Article 22 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China ” for entry into the Hong Kong Special Administrative Region, people from other parts of China must apply for approval”, mean that persons from provinces, autonomous regions and municipalities directly under the Central Government, including the children of permanent residents of the Hong Kong Special Administrative Region born in the mainland with Chinese nationality, who request to enter the Hong Kong Special Administrative Region with whatever reason shall, in accordance with the provisions of relevant laws and administrative regulations of the State, apply for approval from the relevant government department in the place of their residence and may only enter the Hong Kong Special Administrative Region with valid certificates issued by relevant authorities. It’s illegal for any persons or children mentioned above to enter the Hong Kong Special Administrative Region without going through due approval procedures in accordance with the provisions of relevant laws and administrative regulations of the State. 2.The first three categories of Paragraph 2 in Article 24 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China provide: ” The permanent residents of the Hong Kong Special Administrative Region shall be: (1) Chinese citizens born in Hong Kong before or after the establishment of the Hong Kong Special Administrative Region; (2) Chinese citizens who have ordinarily resided in Hong Kong for a continuous period of not less than seven years before or after the establishment of the Hong Kong Special Administrative Region; (3) Persons of Chinese nationality born outside Hong Kong of those residents listed in categories (1) and (2)”.” Among these people, the persons provided for in Category (3) ” Persons of Chinese nationality born outside Hong Kong of those residents listed in categories (1) and (2)” mean that those persons, at the time of their birth, no matter whether they were born before or after the establishment of the Hong Kong Special Administrative Region, whose parents or whose fathers or mothers are Chinese citizens as provided for in Category (1) or Category (2) of Paragraph 2 in Article 24 of the Basic Law of the Hong Kong Special Administrative Region. The original legislative intent elucidated by this Interpretation and the original legislative intent of the other categories of Paragraph 2 in Article 24 of the Basic Law of the Hong Kong Special Administrative Region have been embodied in the Opinions on the Implementation of the Second Paragraph of Article 24 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China, which were adopted at the Fourth Plenary Meeting of the Preparatory Committee for the Hong Kong Special Administrative Region of the National People’s Congress on August 10, 1996. After promulgation of this Interpretation, the courts of the Hong Kong Special Administrative Region shall, in applying the relevant articles of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China, follow this Interpretation. This Interpretation does not affect the right of abode in the Hong Kong Special Administrative Region granted to the litigating party in the case through the judgment made by the Court of Final Appeal of the Hong Kong Special Administrative Region on January 29, 1999. As to whether any other person conforms to the provisions of Category (3) of Paragraph 2 in Article 24 of the Basic Law of the Hong Kong Special Administrative Region, the matter shall be decided according to this Interpretation.

REGULATIONS ON ADMINISTRATION OF TOUR GUIDES

Category	TOURISM	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1999-05-14	Effective Date	1999-10-01

Regulations on Administration of Tour Guides

(Promulgated by Decree No. 263 of the State Council of the People’s Republic of China on May 14, 1999, and effective as of October 1,1999)

Article 1 These Regulations are formulated in order to standardize tour-guiding activities, to protect the lawful rights and interests
of tourists and tour guides, and to promote the healthy development of tourism.

Article 2 Tour guides mentioned in these Regulations refer to those who have obtained a Tour Guide Certificate according to these
Regulations, and accept appointment of a travel agency to provide tourists with guiding, introducing and other related tourism services.

Article 3 The State exercises a system of nationwide uniform examination of qualification for tour guides.

Any citizen of the People’s Republic of China, who has an academic degree conferred by a high school, a secondary
specialized school or higher, is in good health, and possesses basic knowledge and language skills catering to the needs of tour-guiding,
may take part in the examination for tour guide qualification; those who have passed the examination shall be issued a Tour Guide
Qualification Certificate by the tourism administration department of the State Council or the tourism administration departments
of the people’s governments of provinces, autonomous regions or municipalities directly under the Central Government delegated by
the tourism administration department of the State Council.

Article 4 A Tour Guide Certificate shall be obtained in order to conduct tour-guiding activities within the territory of the People’s
Republic of China.

Only after concluding a labor contract with a travel agency or registering with a tour guide service company,
may those with a Tour Guide Qualification Certificate apply to the tourism administration departments of the people’s governments
of provinces, autonomous regions or municipalities directly under the Central Government for obtaining a Tour Guide Certificate on
the strength of the labor contract and documents certifying the registration.

For anyone who possesses the language skills of a special language but has not obtained a Tour Guide Certification
Certificate, if a travel agency needs to employ him to temporarily conduct tour-guiding activities, the travel agency shall apply
to the tourism administration departments of the people’s governments of provinces, autonomous regions or municipalities directly
under the Central Government for obtaining a Temporary Tour Guide Certificate for him.

The design and format of Tour Guide Certificate and Temporary Tour Guide Certificate are laid down by the
tourism administrative departments of the State Council.

Article 5 Anyone falling under any of the following circumstances shall not be issued with a Tour Guide Certificate:

(1) having no capacity for civil conduct or having a limited capacity for civil conduct;

(2) suffering from contagious diseases;

(3) having received criminal punishment, except for involuntary crimes;

(4) having ever been has Tour Guide Certificate revoked.

Article 6 The tourism administration department of the people’s government of a province, autonomous region or municipality directly
under the Central Government shall issue Tour Guide Certificate within 15 days from the date of receiving application for obtaining
a Tour Guide Certificate; if it is found that any circumstance stipulated in Article 5 of these Regulations exists, therefore no
Tour Guide Certificate shall be issued, a written notice shall be send to the applicant.

Article 7 Tour guides shall continuously improve their professional skills and ethics.

The State exercises a system of grade testing system for tour guides. The standards and measures for grade
testing for tour guides are to be worked out by the tourism administration department of the State Council.

Article 8 When conducting tour-guiding activities, tour guides shall bear their Tour Guide Certificate.

The Tour Guide Certificate has a term of validity of 3 years. If the holder of a Tour Guide Certificate intends
to continue to conduct tour-guiding activities after the expiration of the term of validity, he shall, before 3 months of the expiration
of the term of validity, apply to the tourism administration department of a province, autonomous region or municipality directly
under the Central Government to undergo the procedures for reissue of a Tour Guide Certificate.

The term of validity of a Temporary Tour Guide Certificate shall not be more than 3 months, and shall not
be renewed.

Article 9 A tour guide must be appointed by a travel agency in order to conduct tour-guiding activities.

A tour guide shall not privately contract to, or directly contract to in any other form, engage in tour business
and conduct tour-guiding activities.

Article 10 When conducting tour-guiding activities, tour guides’ personal dignity shall be respected, and their personal safety shall
not be endangered.

Tour guides are enpost_titled to refuse any unreasonable request that affronts their dignity or infringes their
professional ethics.

Article 11 When conducting tour-guiding activities, tour guides shall conscientiously protect the interests of the State and national
dignity; any words and behaviors impairing the interests of the State or national dignity shall be avoided.

Article 12 When conducting tour-guiding activities, tour guides shall obey professional ethics, dress decently, behave politely,
respect tourists’ religious belief, ethical customs and living habits.

When conducting tour-guiding activities, tour guides shall give explanation to human and natural conditions
of the touring place, and make introduction into social customs and habits; however, they shall not mix any vulgar and indecent elements
into their explanation and introduction for catering to vulgar interests of some tourists.

Article 13 Tour guides shall strictly follow the travel agency’s hosting plan to arrange tourists’ travel and sightseeing activities,
shall not arbitrarily add or reduce any tour items or cease his tour-guiding activities.

In the cause of leading tourists to travel and sightsee, if encountering any emergent situations that possibly
endanger the tourists’ personal safety, the tour guide may, upon consent of the majority of tourists, adjust or modify the hosting
plan, but a prompt report shall be made to the travel agency.

Article 14 In the cause of leading tourists to travel and sightsee, the tour guide shall truthfully state the situations that possibly
endanger the tourists’ personal or property safety and give clear warnings to the tourists, and shall adopt measures to prevent the
occurrence of the danger according to the travel agency’s instructions.

Article 15 When conducting tour-guiding activities, tour guides shall not sell any goods to or buy any goods from tourists, nor seek
tips for tourists in explicit or implied ways.

Article 16 When conducting tour-guiding activities, tour guides shall not deceive or force tourists to consume or collude with proprietors
to deceive or force tourists to consume.

Article 17 For an act of a tour guide violating the provisions of these Regulations, tourists are enpost_titled to file a complaint towards
the tourism administration departments.

Article 18 For anyone who conducts tour-guiding activities without a Tour Guide Certificate, the tourism administration department
shall order him to make corrections and make the matter public, and impose a fine of not less than 1,000 yuan nor more than 30,000
yuan; if there are illegal earnings, such illegal earnings shall be confiscated.

Article 19 If, without appointment of the travel agency, a tour guide conduct tour-guiding activities by privately contracting to,
or directly contracting to in any other form, engage in tour business, the tourism administration department shall order him to make
corrections, and impose a fine of not less than 1,000 yuan nor more than 30,000 yuan; if there are illegal earnings, such illegal
earnings shall be confiscated; if the circumstances are serious, the Tourism administration department of the people’s government
of a province, autonomous region or municipality directly under the Central Government shall revoke his Tour Guide Certificate and
make the matter public.

Article 20 If, when conducting tour-guiding activities, a tour guide has any words and behaviors impairing the interests of the State
or national dignity, the tourism administration department shall order him to make corrections; if the circumstances are serious,
the Tourism administration department of the people’s government of a province, autonomous region or municipality directly under
the Central Government shall revoke his Tour Guide Certificate and make the matter public; the travel agency to which the tour guide
in question belongs to shall be given a warning, and even have its business suspended for rectification.

Article 21 If, when conducting tour-guiding activities, a tour guide does not carry out his Tour Guide Certificate, the tourism administration
department shall order him to make corrections; if the making of correction is refused, a fine of not more than 500 yuan shall be
imposed.

Article 22 If a tour guide falls under any of the following circumstances, the tourism administration department shall order him
to make corrections and temporarily revoke his Tour Guide Certificate for from 3 to 6 months; if the circumstances are serious, the
Tourism administration department of the people’s government of a province, autonomous region or municipality directly under the
Central Government shall revoke his Tour Guide Certificate and make the matter public:

(1) arbitrarily adding or reducing any tour items;

(2) arbitrarily changing the hosting program;

(3) arbitrarily ceasing his tour-guiding activities.

Article 23 If, when conducting tour-guiding activities, a tour guides sells any goods to or buys any goods from tourists, or seek
tips for tourists in explicit or implied ways, the tourism administration department shall order him to make corrections and impose
a fine of not less than 1000 yuan nor more than 30,000 yuan; if there are illegal earnings, such illegal earnings shall be confiscated;
if the circumstances are serious, the Tourism administration department of the people’s government of a province, autonomous region
or municipality directly under the Central Government shall revoke his Tour Guide Certificate and make the matter public; the travel
agency appointing the tour guide in question shall be given a warning, and even have its business suspended for rectification.

Article 24 If, when conducting tour-guiding activities, a tour guide deceives or forces tourists to consume or colludes with proprietors
to deceive or force tourists to consume, the tourism administration department shall order him to make corrections and impose a fine
of not less than 1000 yuan nor more than 30,000 yuan; if there are illegal earnings, such illegal earnings shall be confiscated;
if the circumstances are serious, the Tourism administration department of the people’s government of a province, autonomous region
or municipality directly under the Central Government shall revoke his Tour Guide Certificate and make the matter public; the travel
agency appointing the tour guide in question shall be given a warning, and even have its business suspended for rectification; if
a crime is constituted, criminal liability shall be investigated according to Law.

Article 25 Any staff members of tourism administration departments who neglect their duties, abuse their powers, practise favoritism
for personal interests shall be investigated for criminal liabilities if crimes are constituted, or given administrative sanctions
if no crimes are constituted.

Article 26 Measures for administration of tour guides in scenery sites or scenery zones are to be formulated by the people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government by reference to these Regulations.

Article 27 These Regulations take effect as of October 1, 1999. The Interim Measures for Administration of Tour Guides approved by
the State Council on November 14, 1987 and promulgated by the State Tourism Bureau on December 1, 1987 shall be repealed simultaneously.

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUING THE INTERIM MEASURES GOVERNING THE EXPORT OF SILVER

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation on Issuing the Interim Measures Governing the Export of Silver

WaiJingMaoGuanFa [1999] No.702

November 26, 1999

Foreign trade and economic cooperation commissions (departments, bureaus) of the various provinces, autonomous regions, municipalitie
directly under the Central Government and municipality separately listed on the State plan, and foreign Trade and economic cooperation
Enterprises Concerned:

The Interim Measures Governing the Export of Silver approved by the State Council are printed and distributed to you, please abide
by.

This is hereby notified.

Attachment

I:Interim Measures of Governing the Export of Silver

II:List of the enterprises for the Export of Silver in 2000

Note: The foregone document WaiJingMaoGuanFa [1999] No.702 is cancelled and this one shall be taken as the standard. Attachment 1:Interim Measures on Governing the Export of Silver

In accordance with the relevant provisions stipulated in the Foreign Trade Law of the PRC, these Measures have been worked out for
the purpose of carrying out the instruction on reforming the management of silver given by the State Council and exercising control
over export of silver.

Article 1

Silver mentioned in these Measures refers to silver powder, Un-Calcined silver and semi-product of silver (see attachment for specific
items under control).

Article 2

Export of silver reserved in the People’s Bank shall still be handled in accordance with the prevailing provisions.

Article 3

The state exercises control over the export of silver with quota license system, and it shall be implemented in accordance with the
Enforcement By-laws of Interim Measures on Report, Transmission and Implementation of Export Quota issued by MOFTEC (WaiJingMaoGuanFa
[1998] No. 980).

Article 4

Enterprises which have been checked and ratified to have qualifications for dealing in export of silver by the MOFTEC shall be allowed
to deal in the general trade for export of silver. And in the light of the principle of survival of the fittest, every year the MOFTEC
shall check and ratify the enterprises engaged in the general trade for the export of silver once and announce the relevant enterprises.

Article 5

The MOFTEC has authorized the Administration of Quota and License Affairs to check and issue the export licences for silver. The Customs
shall examine and release the silver by the export licenses.

Article 6

The organs issuing certificates authorized by the MOFTEC shall strictly examine and verify the qualifications of enterprises for dealing
in the export of silver, the quota quantity and export contracts, and then check and issue export licenses.

Article 7

When a processing trade enterprise has imported the goods containing silver not included in the list of silver products in Article
1 of these measures for processing and re-exporting silver, it shall submit an application, and its processing trade shall be examined
and approved by the competent department of foreign economic relations and trade at provincial level in the place where the enterprise
concerned has registered. And the Customs shall, by the Approval Certificate for Processing Trade, handle the registration and filing
procedures for the export contract. And in the light of the specific characteristics of the silver production, the competent department
of foreign economic relations and trade shall state in the remark column of the approval certificate that “the amount of the imported
materials approved by the Commodity Inspection shall be taken as the standard amount of the silver for re-export”.

Within 180 days after the import of the materials for processing trade, the competent department of foreign economic relations and
trade at provincial level shall report the amount of the silver to be exported by the relevant enterprise, the commodity inspection
certificate for imported materials, the processing technology of the relevant enterprise, the consumption per unit, etc. to the MOFTEC,
and at the same time make a copy of the above mentioned information to be submitted to the State Bureau of Non-Ferrous Metal Industry.
And after soliciting the opinions of the State Bureau of Non-Ferrous Metal Industry, the MOFTEC shall handle formalities for approval
and reply. In the case where the approved content of the silver for import, consumption per unit. amount of exports to be processed,
etc. are inconsistent with what was previously stated in the documents for examination, approval and filing, the MOFTEC shall send
a duplicate of the approved documents to the competent Customs for file, and the enterprise concerned shall go through the formalities
for alternation of the relevant contract, and the Customs shall supervise and cancel the amount after verification according to the
consumption per unit amended. The enterprise concerned shall apply for an export license from the Quota License Bureau with the documents
approved by the MOFTEC. The Customs shall examine and release the relevant products by the export license.

Article 8

In the case an export enterprise violates these Measures and other relevant provisions governing the export, and once the case has
been proved to be true, a punishment of reduction of the export quota, until cancellation of its right to deal in export of silver
shall be imposed upon the enterprise concerned.

Article 9

In the case the relevant previous provisions were inconsistent with theses Measures, these Measures shall be taken as the standard.

Article 10

These Measures shall be put into force as of the date of January 1, 2000. The previous provisions shall still be effective for the
case where an enterprise has gone through the formalities for putting the silver processing trade contract on file after the above
mentioned date.

htm/e01987.htmAttached

Attachment 1:

List of Silver Export under Control Attached

LIST OF SILVER	EXPORT UNDER CONTROL
Specifications Code of Coordination System Silver Powder	71061000
Un-Calcined Silver (including lumps, ingots, grains and casting strips, etc.)	71069100
Semi Silver Products (including calcined bars, sticks, threads, boards, slices, bands, pipes,foils and shape materials, etc.)	71069200

The above mentioned "silver" refers to pure silver, excluding the silver plated with gold or
platinum, silver alloy and the products with other metals or materials as bottoms and covered with silver or plated with
silver.

Attachment 2:

List of the Enterprise for the Export of Silver in 2000

Paper Money Printing and Minting Head Office of China
Copper Lead Zinc Group Company of China

1...177178179...212 Page 178 of 212

China Laws

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

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

CIRCULAR OF THE STATE COUNCIL CONCERNING PROMOTING SELF-OPERATED IMPORT AND EXPORT OF THE PRODUCTION ENTERPRISES

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE QUESTIONS CONCERNING THE APPLICABLE TAX RATE AND DEDUCTION OF CALCULATED TAX AMOUNT RELATED TO INCOME OF ENTERPRISES WITH FOREIGN INVESTMENT FROM OUTSIDE CHINA

PROTECTION OF RIGHTS AND INTERESTS OF THE AGED

INTERIM MEASURES FOR EXEMPTION FROM THE IMPORT DUTIES ON THE SPECIAL-PURPOSE ARTICLES FOR THE DISABLED

MEASURES FOR ADMINISTRATION OF BORROWING INTERNATIONAL COMMERCIAL LOANS BY DOMESTIC INSTITUTIONS

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING PRINTING AND DISTRIBUTING THE OPERATIONAL PROCEDURES FOR THE SALES OF AND PAYMENTS IN FOREIGN EXCHANGE AND VERIFICATION OF EXPORT RECEIPTS AND IMPORT PAYMENTS UNDER THE ITEM OF TRANSFER-BETWEEN-FACTORIES DURING FURTHER PROCESSING

CIRCULAR OF THE STATE DEVELOPMENT PLANNING COMMISSION, THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION FOR ENTRY-EXIT INSPECTION AND QUARANTINE ON LOWERING THE CHARGING STANDARD OF THE QUALITY INSPECTION OF PROCESSING TRADE AND FOREIGN INVESTMENT PROPERTY APPRAISAL

INTERPRETATION BY THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING PARAGRAPH 4 IN ARTICLE 22 AND CATEGORY (3) OF PARAGRAPH 2 IN ARTICLE 24 OF THE BASIC LAW OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA

REGULATIONS ON ADMINISTRATION OF TOUR GUIDES

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION ON ISSUING THE INTERIM MEASURES GOVERNING THE EXPORT OF SILVER

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7