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DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS APPROVING THE OPENING OF PORT NANTONG AND PORT ZHANGJIA ON THE YANGTZE RIVER TO VESSELS OF FOREIGN NATIONALITIES

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1982-11-19 Effective Date  1982-11-19  


Decision of the Standing Committee of the National People’s Congress Approving the Opening of Port Nantong and Port Zhangjia on the
Yangtze River to Vessels of Foreign Nationalities

(Adopted on November 19, 1982)

    Having considered the proposal submitted for approval by the State
Council on the opening of Port Nantong and Port Zhangjia on the Yangtze
River to vessels of foreign nationalities, the 25th Meeting of the Standing
Committee of the Fifth National People’s Congress hereby decides to approve
the opening of Port Nantong and Port Zhangjia on the Yangtze River to
vessels of foreign nationalities.





RULES FOR THE IMPLEMENTATION OF FOREIGN EXCHANGE CONTROL REGULATIONS RELATING TO ENTERPRISES WITH OVERSEAS CHINESE CAPITAL, FOREIGN-CAPITAL ENTERPRISES AND CHINESE-FOREIGN EQUITY JOINT VENTURES

Category  BANKING Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1983-08-01 Effective Date  1983-08-01 Date of Invalidation  1996-04-01


Rules for the Implementation of Foreign Exchange Control Regulations Relating to Enterprises With Overseas Chinese Capital, Foreign-capital
Enterprises and Chinese-foreign Equity Joint Ventures



(Approved by the State Council of the People’s Republic of China on July

19, 1983 and promulgated by the State Administration of Foreign Exchange
Control on August 1, 1983)(Editor’s Note: These Rules have been annulled
by Regulations of the People’s Republic of China on Foreige Exchange Control
promulgated on January 29, 1996 and effective as of April 1, 1996)

    Article 1  These Rules are formulated for implementing the provisions of
Chapter V of the Interim Regulations on Foreign Exchange Control of the
People’s Republic of China.

    Article 2  In Chapter V of The Interim Regulations on Foreign Exchange
Control of the People’s Republic of China, the term “enterprises with overseas
Chinese capital” refers to corporations, enterprises or other economic
entities registered in China with overseas Chinese capital or capital of
compatriots in the Hong Kong and Macao regions, and managed independently or
jointly with Chinese enterprises; the term “foreign-capital enterprises”
refers to corporations, enterprises or other economic entities registered in
China with foreign capital, and managed independently or jointly with Chinese
enterprises; the term “Chinese-foreign equity joint ventures” refers to
enterprises jointly established, owned and run in China by corporations,
enterprises, other economic entities or individuals with overseas Chinese
capital, capital of compatriots in the Hong Kong and Macao regions or foreign
capital and Chinese corporations, enterprises or other economic entities.

    Article 3  For all foreign exchange receipts and payments, enterprises
with overseas Chinese capital, foreign-capital enterprises and Chinese-foreign
equity joint ventures must act in accordance with the provisions in the
Interim Regulations on Foreign Exchange Control of the People’s Republic of
China as well as these Rules.

    Article 4  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures shall open Renminbi
deposit accounts and foreign exchange deposit accounts in China with the Bank
of China or its branch banks or any other banks approved by the State
Administration of Foreign Exchange Control (SAFEC) or its branch offices,
payments and receipts in these accounts being subject to the supervision of
the bank with which the enterprises have established accounts. When applying
for the opening of the accounts, the enterprises shall submit for verification
their business licenses issued by the State Administration for Industry and
Commerce of the People’s Republic of China.

    Article 5  The exploration fund and the fund for cooperative development
and cooperative production provided unilaterally by a foreign-capital
enterprise engaged in cooperative exploitation of offshore petroleum resources
in China are permitted to be deposited with the agreement of the Chinese side
in a bank, of a foreign country or of the Hong Kong or Macao region.

    Article 6  Should they find it necessary to open foreign exchange deposit
accounts with banks abroad or in the Hong Kong and Macao regions other than
the accounts opened in accordance with Article 5 of these Rules, enterprises
with overseas Chinese capital, foreign-capital enterprises and Chinese-foreign
equity joint ventures shall apply to SAFEC or its branch offices for approval.
The enterprises concerned shall submit to SAFEC or its branch offices
quarterly statements of payments into and withdrawal from such accounts within
30 days as of the end of each and every quarter.

    Article 7  All foreign exchange receipts of enterprises maintaining
foreign exchange accounts with banks in China in accordance with Article 4 of
these Rules, must be deposited in the said accounts and all their foreign
exchange disbursements incurred in normal business operations can be effected
through these accounts.

    Article 8  For the implementation of the petroleum operations specified in
their contracts, the foreign-capital enterprises engaged in cooperative
exploitation of offshore petroleum resources may pay directly outside China
wages, salaries, cost of procurements, various labour costs and service
charges to foreign workers and staff members, foreign subcontractors and
suppliers. The foreign workers and staff members and foreign subcontractors
shall pay taxes on their income derived from China in accordance with the
provisions of the tax law of the People’s Republic of China.

    Article 9  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures shall submit within the
prescribed time limit to the SAFEC or its branch offices the following
statements with explanatory notes in detail:

    (1) Balance sheet as of December 31 of the previous year, profit and loss
statement and statement of receipts and payments of foreign exchange for the
previous year shall be submitted before March 31 of each year, along with
audit reports by accountants registered in the People’s Republic of China.

    (2) Budget of foreign exchange receipts and payments for the coming year
shall be submitted before December 1 of each year (subsequent amendments, if
any, shall be reported immediately).

    The SAFEC and its branch offices are authorized to request the enterprises
with overseas Chinese capital, foreign-capital enterprises and Chinese-foreign
equity joint ventures to provide information about their business activities
involving foreign exchange, and to check on their foreign exchange incomes and
expenditures.

    Article 10  Any currency conversion of enterprises with overseas Chinese
capital, foreign-capital enterprises and Chinese-foreign equity joint ventures
must be conducted according to the official rates of foreign exchange quoted
by the SAFEC; the export of the products of these enterprises may be dealt
with in accordance with the relevant provisions governing China’s foreign
trade exchange conversions.

    Article 11  Except where otherwise approved by the SAFEC or its branch
offices, the foreign exchange receipts realized from exports by the
enterprises with overseas Chinese capital, foreign-capital enterprises and
Chinese-foreign equity joint ventures shall be transferred back and credited
to their foreign exchange deposit accounts with banks in China and the
enterprises shall also go through the procedure of cancelling their
commitments for foreign exchange receipts from these exports.

    Article 12  Renminbi shall be used in the settlement of accounts between
enterprises with overseas Chinese capital, foreign-capital enterprises or
Chinese-foreign equity joint ventures on the one hand, and agencies,
enterprises (including enterprises with overseas Chinese capital,
foreign-capital enterprises, Chinese-foreign equity joint ventures), or
individuals in China on the other, except in the following cases:

    (1) For products manufactured by these enterprises and sold to Chinese
entities or enterprises engaged in foreign trade which would otherwise have
to import, foreign currencies may be used in pricing and in settlement of
accounts, provided that prior approval by Chinese foreign trade authorities
has been obtained and that agreement on this arrangement has been reached
between seller and buyer; the prices of the products may be such as to be
commensurate with those current in world markets.

    (2) If enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures purchase, for the sake
of production, the commodities to be exported or imported by Chinese entities
engaged in foreign trade, foreign currencies may be used in pricing the said
commodities with reference to those current in world markets and in settlement
of accounts, with prior approval of Chinese foreign trade authorities and
arrangement between seller and buyer.

    (3) Foreign currencies may be used in pricing and in the settlement of
accounts related to construction work performed by Chinese construction
entities according to contracts, provided that prior approval from the SAFEC
or its branch offices has been obtained.

    (4) Other items which can be priced and settled in foreign currencies
are prescribed by the State Council or approved by the SAFEC or its branch
offices.

    For all transactions which can be priced and settled in foreign currencies
as approved, the receipts and payments may be made through foreign exchange
deposit accounts.

    Article 13  Overseas Chinese investors of enterprises with overseas
Chinese capital or foreign investors of foreign-capital enterprises or of
Chinese-foreign equity joint ventures may apply to the banks with which they
have opened accounts for remitting abroad their profits as well as other
justified earnings after taxation, by debiting the foreign exchange deposit
accounts of the enterprise concerned. At the time of application, the
investors concerned shall submit for examination the written decision on
profit distribution adopted by the board of directors or by another organ of
power equivalent to the board of directors, documentary evidence showing that
all taxes have been duly paid as well as the contracts containing stipulations
with regard to the distribution of profits or earnings.

    Overseas Chinese investors of enterprises with overseas Chinese capital
or foreign investors of foreign-capital enterprises or of Chinese-foreign
equity joint ventures shall apply to the SAFEC or its branch offices for
transferring their foreign exchange capital abroad by debiting the foreign
exchange deposit accounts of the enterprises concerned.

    Article 14  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures engaged in cooperative
exploitation of such resources as offshore petroleum and coal, and in other
contractual or equity joint ventures, whose capital is to be recovered and
profits to be realized in kind as stipulated in their contracts, may transport
out of China the products as their shares of recovered capital and realized
profits, but such enterprises shall remit back the amount of tax to be paid in
the People’s Republic of China as well as other required payments. If the
products are to be sold within China, the case shall be handled in accordance
with provisions of Article 12 of these Rules, and the foreign exchange
proceeds derived from these sales may be remitted out after taxation and other
required payments.

    Article 15  Staff members and workers of foreign nationality and those
from the Hong Kong and Macao regions employed by enterprises with overseas
Chinese capital, foreign-capital enterprises and Chinese-foreign equity joint
ventures may remit abroad their wages and other justified earnings, after
taxation according to law, and if the remittance exceeds 50% of their wages
and other earnings, they may apply to the SAFEC or its branch offices. The
amounts remitted shall all be debited to the foreign exchange deposit accounts
of the enterprises concerned.

    Article 16  Foreign exchange expenses required in the normal business
operations of the branches or offices abroad or in the Hong Kong and Macao
regions set up with the approval of competent authorities by enterprises with
overseas Chinese capital, foreign-capital enterprises and Chinese-foreign
equity joint ventures may be remitted to these branches or offices, debiting
to the foreign exchange deposit accounts of the enterprises concerned, with
the approval of the SAFEC or its branch offices.

    Article 17  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures may borrow foreign
exchange directly from banks or enterprises of foreign countries or of the
Hong Kong and Macao regions, but they must report such borrowing to the SAFEC
or its branch offices for the record.

    Article 18  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures winding up operations
in accordance with legal procedures, shall carry out liquidation within the
scheduled period, under the joint supervision of China’s finance, taxation
and foreign exchange control authorities. Overseas Chinese investors or
foreign investors shall be responsible for their taxes due and their
outstanding liabilities within China. After completion of the liquidation,
overseas Chinese investors and foreign investors may apply to the SAFEC or its
branch offices for remitting out the funds owned by or distributed to them.
And the remittance shall be debited to the foreign exchange accounts
of the liquidated enterprises.

    Article 19  The measures to control foreign exchange receipts and payments
of banks with overseas Chinese capital, banks with foreign capital,
Chinese-foreign equity joint banks and other financial institutions shall be
formulated by the SAFEC separately.

    Article 20  These Rules shall be promulgated and put into effect by the
SAFEC upon approval of the State Council.





REGULATIONS ON THE ADMINISTRATION OF THE REGISTRATION OF ENTERPRISES IN THE XIAMEN SPECIAL ECONOMIC ZONE

Regulations on the Administration of the Registration of Enterprises in the Xiamen Special Economic Zone

    

(Effective Date 1984.07.14)

   Article 1. These Regulations are formulated in accordance with the relevant laws and statutory regulations of the People’s Republic
of China.

   Article 2. Enterprises established in the Special Zone must carry out registration procedures with the Xiamen Municipal Industry
and Commerce Administration Bureau. Any enterprise which is not registered will not be permitted to go into operation.

   Article 3. In applying for registration, a Special Zone enterprise shall produce the following documents:

(i) a document of approval issued by the Xiamen Municipal People’s Government or the organ in charge authorised
by the Municipal People’s Government;

(ii) copies of the approved agreement, contract and articles of association signed by the various parties to the enterprises;

(iii) copies of the business licence or other relevant documents issued by the government department in charge in
the country (or region) in which each of the parties to the enterprise is based.

A Special Zone enterprise shall also submit the approval document issued by the relevant department in charge should
its undertaking be classified by the State as a specialised line of business or trade.

   Article 4. In applying for registration, a Special Zone enterprise shall fill out a registration form in triplicate in Chinese
or in both Chinese and foreign languages. The main items to be registered are: the name of the enterprise, the address,
the scope of production or business, the form of production or business, the registered capital, the shares of the respective
joint equity or co-operative parties, or the chairman and vice-chairmen of the board of directors, the general manager
and deputy general manager, or the director and deputy directors of the factory, the number of employees, the number
of foreign employees, the document approving organ, the approval document’s number and date of approval.

   Article 5. Resident representative offices to be established in the Special Zone by foreign enterprises, enterprises run by
Overseas Chinese, or persons from Hong Kong, Macao and Taiwan, and Sino-foreign joint ventures based outside China
shall, within 30 days of the date of approval, register with the Xiamen Municipal Industry and Commerce Administration
Bureau by presenting copies of the approval document and the registration certificate issued by the organ in charge
in the country (or region) in which the enterprise is located or other evidence of credit-worthiness, together with the
representative’s letter of authorisation. Without registration, a resident office will not be permitted to engage
in business activities.

   Article 6. Special Zone enterprises and resident offices are deemed to be officially established on the day on which their business
licence or registration certificate is obtained. Their proper business activities and legitimate rights and interests
are protected by the law of the People’s Republic of China.

   Article 7. A Special Zone enterprise or resident office, shall present its business licence or registration certificate for opening
an account with a bank established in the Xiamen Special Zone and register with the Xiamen Municipal Taxation Bureau
for taxation purposes.

   Article 8. When a Special Zone enterprise changes its name or location, its line of production, increases, decreases or transfers its
registered capital, changes the scope of its production or business, or extends the duration of its contract, the
enterprise shall register the change with the Xiamen Municipal Industry and Commerce Administration Bureau within 30
days of the change being approved by the original examining and approval organ. In the event of the replacement of
an enterprise’s chairman or general manager, the enterprise shall register the change within seven days of the decision
of the board of directors. The registration of other changes shall be submitted in writing to the Xiamen Municipal
Industry and Commerce Administration Bureau at the end of each year.

   Article 9. The registration certificate for a resident office will be renewed every year. When changing the name of the resident
office, the resident representative(s), the scope of operations, the location of the resident office and the
term of residency, the registration of the same shall be made by producing the approval document to the Xiamen Municipal
Industry and Commerce Administration Bureau within seven day of the changes being approved by the original approval organ.

   Article 10. When applying for registration or the registration of changes, Special Zone enterprises or resident offices shall
pay the fee for registration or the registration of changes in accordance with regulations.

   Article 11. Upon the expiry of the term of operations or residency period, or upon the approved pre-term closure or termination of
business, a Special Zone enterprise or resident office shall undertake the cancellation of registration, and hand
in for cancellation the business licence or registration certificate with the Xiamen Municipal Industry and Commerce
Administration Bureau.

   Article 12. The Xiamen Municipal Industry and Commerce Administration Bureau shall examine, verify and give an official reply
to Special Zone enterprises or resident offices, within seven days of receiving the various documents from the enterprises
or offices concerning registration or the registration of changes.

   Article 13. The Xiamen Municipal Industry and Commerce Administration Bureau supervises and inspects Special Zone enterprises
and resident offices in accordance with the law. In the case of violation of these Regulations, the enterprise
or resident office concerned shall, on the basis of the seriousness of each specific case, be given a warning, a fine,
be ordered to suspend operations, or have is business licence or registration certificate revoked. In the case
of suspension of operations or revocation of the business licence or registration certificate, the matter must be
reported to the Xiamen Municipal People’s Government for examination and approval and be filed with the Industry
and Commerce Administration Bureau.

   Article 14. These Regulations will be effective from the date fo promulgation.

    





CUSTOMS RULES OF THE PEOPLE’S REPUBLIC OF CHINA ON THE IMPORT OF LEGACIES

PROVISIONS OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE, THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE CONCERNING THE INVESTMENTS MADE BY THE VARIOUS PARTIES OF CHINESE-FOREIGN EQUITY JOINT VENTURES

19871230the State Council

The Ministry of Foreign Economic Relations and Trade, the State Administration for Industry and Commerce

Provisions of the Ministry of Foreign Economic Relations and Trade, the State Administration for Industry and Commerce Concerning
the Investments Made by the Various Parties of Chinese-foreign Equity Joint Ventures

January 1,1988

(Approved by the State Council on December 30, 1987, Promulgated by the Ministry of Foreign Economic Relations and Trade and the State
Administration for Industry and Commerce on January 1, 1988)

Article 1

These Provisions are formulated in accordance with the Law of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures
and other pertinent laws and regulations in order to protect the lawful rights and interests of the various parties to Chinese-foreign
equity joint ventures (hereinafter referred to as the “joint ventures”), and to maintain the social economic order.

Article 2

The investments contributed by the various parties to a joint venture in accordance with the stipulations of the contract of the said
joint venture must be the cash owned by the parties themselves as well as the physical goods, the industrial property rights, the
proprietary technology and etc. that are owned by the parties themselves and have not been used to establish any security interests.

In cases where physical goods, industrial property rights and proprietary technology are used as investments at the evaluated price,
the investor shall present valid documents attesting their proprietary rights and their right of disposal.

Article 3

No party to a joint venture may use the loans, rented equipment or other assets it has obtained in the name of the joint venture,
or the assets of persons other than the parties as its own investment contribution to the joint venture; nor may it use the assets
or rights and interests of the joint venture, or the assets or rights and interests of the other parties to the joint venture as
the warranty for its investment contribution to the joint venture.

Article 4

The various parties to a joint venture shall set the time limit in their joint venture contract for paying up their respective investment
contributions to the joint venture, and they shall pay fully their respective investment contributions within the time limit stipulated
in the joint venture contract. The investment contribution certificates issued by the joint venture in accordance with the pertinent
stipulations shall be submitted to the original examining and approving authorities and the relevant administrative department for
industry and commerce for the record.

If the joint venture contract stipulates that investment contributions shall be paid up in one lump, the various parties to the said
joint venture shall make the full payment of their respective investment contributions within six months from the date the business
licence is signed and issued.

If the joint venture contract stipulates that investments shall be paid by installments, the first installment paid by the various
parties shall not be less than 15% of the total amount of their respective investment contributions and be paid within three months
as of the date the business licence is signed and issued.

Article 5

In the event that the various parties to a joint venture fail to make the full payment of their respective investment contributions
within the time limit prescribed in Article 4 , the joint venture shall be considered to be dissolved of its own accord, and the
approval certificate for the joint venture shall automatically cease to be effective. The joint venture shall go through the procedures
for cancellation of registration with the administrative department for industry and commerce, and hand in its business licence for
cancellation; if a joint venture fails to go through the procedures for cancellation of registration or to hand in its business licence
for cancellation, the administrative department for industry and commerce shall revoke its business licence and announce this publicly.

Article 6

After the various parties to a joint venture have paid the first installment of their respective investment contributions, if they
fail to pay or to pay fully any of the remaining installments three months beyond the deadline as stipulated in the joint venture
contract, the administrative department for industry and commerce shall, in conjunction with the original examining and approving
authorities, issue a notice to the various parties to the said joint venture, enjoining them to pay the full amount due within one
month. In the event that the various parties to the said joint venture still fail to make the full payment of their respective investment
contributions in accordance with the time limit prescribed in the notice mentioned in the preceding paragraph, the original examining
and approving authorities have the right to revoke the approval certificate for the said joint venture. After the approval certificate
has been revoked, the said joint venture shall go through the procedures for cancellation of registration with the administrative
department for industry and commerce, hand in its business licence for cancellation, and settle claims and debts. If it fails to
go through the procedures for cancellation of registration or to hand in its business licence for cancellation, the administrative
department for industry and commerce has the right to revoke its business licence and to announce this publicly.

Article 7

The failure of one of the parties to a joint venture to make the payment, or the full payment, of its investment contribution on time
in accordance with the stipulations of the joint venture contract constitutes a breach of the contract. The observant party (parties)
shall urge the defaulting party to make the payment, or the full payment, of its investment contribution within one month. If the
defaulting party still fails to do so before the deadline, this shall be considered as the abandonment by the defaulting party of
all its rights as stipulated in the joint venture contract and its withdrawal from the joint venture of its own accord. The observant
party (parties) shall, within one month from the date when the defaulting party’s prescribed payment is overdue, make an application
to the original examining and approving authorities for the approval to dissolve the said joint venture, or for the approval to find
another joint venture party to assume the defaulting party’s rights and obligations as stipulated in the joint venture contract.
The observant party (parties) may, according to law, claim compensation from the defaulting party for the economic losses caused
by the latter’s failure to make the payment, or the full payment, of its investment contribution.

If the defaulting party mentioned in the preceding paragraph has paid part of its prescribed investment contribution, this part of
investment payment shall be liquidated by the joint venture.

In the event that the observant party (parties) fails (fail) to make an application to the original examining and approving authorities,
in accordance with the provisions of the first paragraph of this Article, for the approval to dissolve the joint venture, or for
the approval to find another joint venture party, the examining and approving authorities have the right to revoke the approval certificate
issued to that joint venture. After the approval certificate has been revoked, the said joint venture shall go through the procedures
for cancellation of registration with the administrative department for industry and commerce, and hand in its business licence for
cancellation; if it fails to go through the procedures for registration cancellation or to hand in its business licence for cancellation,
the administrative department for industry and commerce has the right to revoke its business licence and to announce this publicly.

Article 8

With respect to any joint venture which obtained its business licence before the date these Provisions become effective, if the various
parties or any one of these parties have (has) failed to make the payment of the respective investment contributions in accordance
with the time limits stipulated in the joint venture contract, they (it) shall, within two months as of the date these Provisions
become effective, make the full payment of the prescribed investment contributions in accordance with the provisions of the contract.

In the event that the various parties or any one of the parties still fail(s) to make the full payment of the respective investment
contributions within the time limit prescribed in the preceding paragraph, the case may be handled in accordance with the provisions
in Article 5 through Article 7 of these Provisions.

Article 9

With respect to any joint venture which obtained its business licence before the date these Provisions become effective, if the various
parties to that joint venture have not stipulated in their joint venture contract the respective time limits for making their respective
investment contributions, and they have not made the full payment, the various parties shall, within two months as of the date these
Provisions become effective and in accordance with these Provisions, conclude and sign a supplementary agreement to their joint venture
contract prescribing the time limits for the various parties to the joint venture to make the payment of their respective investment
contributions, and submit this supplementary agreement to the original examining and approving authorities for examination and approval;
after they have obtained the approval, they shall submit their case to the administrative department for industry and commerce for
the record.

In the event that a joint venture mentioned in the preceding paragraph fails to establish itself or to start its operations after
six full months since the date of the issuance of its business licence owing to the failure of its various parties to conclude and
sign a supplementary agreement to their joint venture contract within two month prescribed in the preceding paragraph, prescribing
the time limits for making their respective investment payments, and the failure to pay full their respective investment contributions,
the original examining and approving authorities have the right to revoke the approval certificate issued to that joint venture.
After the approval certificate has been revoked, the said joint venture shall go through the procedures for cancellation of registration
with the administrative department for industry and commerce, and hand in its business licence for cancellation. If the said joint
venture fails to go through the procedures for cancellation of registration or to hand in its business licence for cancellation,
the administrative department for industry and commerce has the right to revoke its business licence and to announce this publicly.

Article 10

The investment payment made by the various parties to a Chinese-foreign contractual joint venture shall be handled with reference
to these Provisions.

Article 11

These Provisions shall enter into force as of March 1, 1988.



 
The Ministry of Foreign Economic Relations and Trade, the State Administration for Industry and Commerce
1988-01-01

 






MEASURES OF SHANGHAI MUNICIPALITY GOVERNING COMMODITY PURCHASING AND PRODUCT SALES BY FOREIGN INVESTMENT ENTERPRISES

Measures of SHANGHAI Municipality Governing Commodity Purchasing and Product Sales by Foreign Investment Enterprises

     (Effective Date:1989.07.01–Ineffective Date:)

   Article 1. These Measures are formulated in accordance with the provisions of the Law of the People’s Republic of China on Sino-foreign Joint
Equity Enterprises, the Law of the People’s Republic of China on Sino-foreign Co-operative Enterprises, the Law of the People’s Republic
of China on Enterprises with Sole Foreign Investment and other relevant administrative laws and decrees, while taking into account
the specific circumstances of the city.

   Article 2. These Measures shall apply to the purchase of commodities and sale of products by Sino-foreign joint equity enterprises, Sino-foreign
co-operative enterprises and sole foreign investment enterprises (hereinafter referred to as foreign investment enterprises) established
within the administrative district of Shanghai Municipality.

   Article 3. A foreign investment enterprise shall have the right to import commodities required for its own use and to export its own products
independently within the approved scope of its contract, but any goods subject to State import or export licence control shall be
handled in accordance with the relevant provisions of the Ministry of Foreign Economic Relation and Trade governing the application
for import and export licences by foreign investment enterprises.

An import or export licence application which comes within the authorised scope of approval of the Shanghai Municipal Commission of
Foreign Economic Relations and Trade (hereinafter referred to as the Shanghai COFERT) shall be examined, verified and, where appropriate,
an import or export licence issued within five working days of receiving the application.

   Article 4. Before endorsing the establishment of a foreign investment enterprise which proposes to manufacture products subject to State export
licence control, the local municipal examining and approval organ shall consult the Shanghai COFERT or, through it, the higher authorities
in charge of foreign economic relations and trade, and shall urge the applicant to undertake and supervise its completion of all
necessary formalities.

   Article 5. Commodities required by a foreign investment enterprise for its production and business operations may be purchased on the international
marker or from local Shanghai markets or other domestic Chinese markets.

A foreign investment enterprise may purchase commodities from local Shanghai markets through the following channels:

(1) local municipal foreign investment enterprise commodity service companies;

(2) commodity dealers;

(3) foreign trade corporations;

(4) commodity producers;

(5) bonded warehouses;

(6) commodity fairs and trade centres.

Units or enterprises dealing in commodities shall give priority to meeting the needs of exporting enterprises and technologically
advanced enterprises, providing the same conditions prevail.

   Article 6. A foreign investment enterprise may purchase without restriction on local Shanghai markets any amount of office supplies and domestic
consumer goods that it may require.

   Article 7. The supply of materials needed by a foreign investment enterprise to manufacture products listed in State or local municipal production
plans or purchasing contracts shall be assured by the department which organised the production plan or allocated the contract.

Materials required by a foreign investment enterprise for a capital construction project which is included in the city’s commodity
distribution plans shall be supplied by the relevant units or enterprises dealing in those materials, in accordance with the plans.

   Article 8. In the case of a Chinese investor which, together with a foreign partner, invests all or part of its assets in the establishment
of a foreign investment enterprise, unless the approval documents specifically exclude materials from inclusion in the commodity
distribution plan, the relevant departments shall ensure that, in accordance with its investment status, the Chinese investor’s original
commodity supply channels are maintained and commodity dealers shall continue to provide materials pursuant to the original supply
plans.

   Article 9. A foreign investment enterprise may use its profits as investment to form affiliated enterprises with other enterprises in China
and to establish commodity supply bases relevant to its production needs. These affiliated enterprises may enjoy preferential treatment
in accordance with the relevant provisions of the State and local municipal authorities regarding the development of horizontal integration.

Before an affiliated enterprise may be established, a foreign investment enterprise shall be required to submit documents clarifying
the source of investment funds and investment projects to the original examining and approval organ and the local municipal administration
for industry and commerce and, after these documents have been examined and approved, it shall complete formalities for the registration
of affiliated enterprises in accordance with the relevant provisions.

   Article 10. In addition to a foreign investment enterprise itself importing required commodities, it may also engage as an import agent a municipal
foreign investment enterprise commodity service company, a commodity dealer authorised to conduct import operations or a State or
local municipal foreign trade corporation.

All units and enterprises dealing in commodities shall be required to provide good service to foreign investment enterprises.

   Article 11. Foreign investment enterprises shall strive to sell their products on the international market. Products manufactured by a foreign
investment enterprise which are urgently required by the State or Shanghai Municipality or which are currently imported may be sold
primarily on the local market, subject to approval.

The provisions of the Ministry of Foreign Economic Relations and Trade Measures for Foreign Investment Enterprises Purchasing Domestic
Products for Export to Achieve a Balance of Foreign Exchange Income and Expenditure shall be implemented if a foreign investment
enterprise needs to purchase domestic products for export in order to remedy its foreign exchange shortfall.

   Article 12. In addition to exporting its products itself, a foreign investment enterprise may also sell its products on a commission or agency
basis through the following channels:

(1) the foreign partner’s sales outlets;

(2) State foreign trade organs based in Shanghai;

(3) local foreign trade corporations and enterprises with import/ export rights;

(4) State or local export commodity fairs and trade conferences.

   Article 13. Those products of a foreign investment enterprise which are classified as planned distribution commodities shall be included in the
distribution plan of the commodity control department and sold to the designated users. In the case of production material for key
industrial goods, sales shall be conducted at the producer goods markets of large or medium size cities or through designated sales
agents in accordance with State regulations.

   Article 14. A foreign investment enterprise may establish commodity purchasing and product sales agents abroad, subject to approval from relevant
examining and approval organs.

   Article 15. Administration of enterprises invested in and established in Shanghai Municipality by Overseas Chinese, Hong Kong, Macao or Taiwanese
businesspeople shall be handled in accordance with the provisions of these Measures.

   Article 16. The Shanghai Municipal Foreign Investment Commission and the Municipal Material and Equipment Bureau shall be jointly responsible
for the interpretation of these Measures.

   Article 17. These Measures shall take effect from 1 July 1989. The Regulations on Commodity Supply and Marketing and Price Control for Sino-foreign
Joint Equity Ventures in Shanghai Municipality (Trial Implementation), promulgated 5 December 1984 by the Shanghai Municipal People’s
Government, shall be abrogated simultaneously.

    





INTERIM PROVISIONS FOR THE ADMINISTRATION OF FOREIGN CHAMBERS OF COMMERCE IN CHINA

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-06-14 Effective Date  1989-07-01  


Interim Provisions for the Administration of Foreign Chambers of Commerce in China



(Adopted by the State Council at the 39th Executive Meeting on April 28,

1989, promulgated by Decree No. 36 of the State Council of the People’s
Republic of China on June 14, 1989, and effective as of July 1, 1989)

    Article 1  These Provisions are formulated with a view to promoting
international trade and economic and technological exchanges, strengthening
the administration of foreign chambers of commerce and protecting their
legitimate rights and interests.

    Article 2  A foreign chamber of commerce in China refers to a
non-profit-making organization which is set up in accordance with these
Provisions within the Chinese territory by foreign commercial establishments
and personnel in the Chinese territory and does not engage in any business
transactions.

    The activities of foreign chambers of commerce in China shall be aimed at
promoting trade and economic and technological exchanges between their members
and Chinese counterparts and facilitating their research in and discussions
about the development of international trade and economic and technological
exchanges.

    Article 3  Foreign chambers of commerce in China must abide by the laws
and regulations of the People’s Republic of China and shall not jeopardize
the state security and social and public interests of China.

    Article 4  For the setting up of a foreign chamber of commerce in China,
the following conditions shall be satisfied:

    (1) articles of association reflecting the common will of the Chamber’s
members;

    (2) a certain number of sponsoring members and responsible persons;

    (3) premises as its permanent office; and

    (4) lawful sources of funds.

    Article 5  Foreign chambers of commerce in China shall be set up according
to their respective country origins and may have both group members and
individual members.

    Group members mean those which join the chamber in the name of commercial
establishments. Commercial establishments refer to representative offices or
branches set up in the Chinese territory according to law by foreign
companies, enterprises and other economic organizations.

    Individual members mean those staff members of non-Chinese nationality
working in commercial establishments or enterprises with foreign investment
and join the chamber in their own names.

    Article 6  The name of a foreign chamber of commerce in China shall be
preceded by the name of its own country plus the word “China”.

    Article 7  For the setting up of a foreign chamber of commerce in China, a
written application shall be submitted to the China Chamber of International
Commerce for further transmission to the Ministry of Foreign Economic
Relations and Trade of the People’s.

    Republic of China (hereinafter referred to as the examining authorities)
for examination.

    The examining authorities shall complete the examination within 60 days
after the date of receiving the written application and all the attached
papers. It shall issue an approval certificate if the conditions laid down in
Article 4 are satisfied or reject the application if the above-mentioned
conditions are not satisfied. The examining authorities shall give
explanations if it cannot complete the examination within the prescribed
time-limit on account of special circumstances.

    Article 8  The written application for the setting up of a foreign chamber
of commerce in China shall be duly signed by the chief sponsor and accompanied
by the following papers:

    (1) Articles of association of the chamber in quintuplicate, in which the
following items shall be included:

    a. name and address;

    b. organizational structure;

    c. names and status of the Chairman, Vice-Chairmen and Managing Director;

    d. procedure for the admission of members and their rights and
obligations;

    e. scope of activities; and

    f. financial information.

    (2) A list of the sponsoring members of the chamber in quintuplicate with
the group members and individual members listed separately. For each of the
group members, the name, address, business scope and names of the responsible
persons shall be indicated. For each of the individual members, the name of
the commercial establishment or enterprise with foreign investment for which
the individual member works, as well as his position and personal resume or
a brief account of his commercial activities in China shall be indicated.

    (3) Name and resume of each of the Chairman, Vice-Chairmen and Managing
Director of the chamber in quintuplicate.

    Article 9  After the application for the setting up of a foreign chamber
of commerce in China has been examined and approved by the examining
authorities, the chief sponsor shall, in accordance with the stipulations of
these Provisions and other relevant laws and regulations, submit the approval
certificate to the Ministry of Civil Affairs of the People’s Republic of China
(hereinafter referred to as the registration authorities) for registration. A
foreign chamber of commerce in China is established at the time its
registration is accepted and a registration certificate is issued.

    Article 10  A foreign chamber of commerce in China shall set up account
books in its office. Its membership fees and other funds obtained in
accordance with the stipulations of its Articles of Association shall be used
to cover the expenditures specified in its Articles of Association and shall
not, under any name, be used as payments to its members or remitted out of
the Chinese terntory.

    Article 11  A foreign chamber of commerce in China shall submit in January
of every year a report on its activities in the previous year to the examining
authorities and the registration authorities through the China Chamber of
International Commerce.

    The China Chamber of International Commerce shall provide foreign chambers
of commerce in China with consultative and other services for their activities
and contacts with relevant Chinese authorities.

    Article 12  When a foreign chamber of commerce in China needs to amend its
Articles of Association or replace its Chairman, Vice-Chairman, or
ManagingDirector or change the address of its premises, it shall apply for
examination and approval and register such changes in accordance with the
procedures laid down in Articles 7, 8 and 9.

    Article 13  A foreign chamber of commerce in China shall subject itself to
the supervision of relevant Chinese authorities.

    Should a foreign chamber of commerce in China violate these Provisions,
the registration authorities have the power to apply sanctions by imposing
a warning or ordering to ban it.

    Article 14  When a foreign chamber of commerce in China is to be
dissolved, it shall submit an application duly signed by its Chairman
together with a certificate proving the completion of its liquidation to the
registration authorities for cancelling its registration and report to the
examining authorities for the record.

    A foreign chamber of commerce in China shall stop any of its activities
as of the date when it returns its registration certificate to the
registration authorities.

    Article 15  These Provisions shall go into effect as of July 1, 1989.?






DECISION OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF THE CHINESE-FOREIGN EQUITY JOINT VENTURES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-04-04 Effective Date  1990-04-04  


Decision of the National People’s Congress Regarding the Revision of the Law of the People’s Republic of China on Chinese-foreign
Equity Joint Ventures



(Adopted at the Third Session of the Seventh National People’s Congress on

April 4, 1990, promulgated by Order No. 27 of the President of the People’s
Republic of China and effective as of the date of promulgation)

    The Third Session of the Seventh National People’s Congress, having
considered the proposal of the State Council regarding the Amendment to the Law
of the People’s Republic of China on Chinese-Foreign Equity Joint Ventures
(Draft), decides to make the following revisions to the Law of the People’s
Republic of China on Chinese-Foreign Equity Joint Ventures:

    1. A new paragraph shall be added to Article 2 as paragraph 3: “The state
shall not nationalize or requisition any equity joint venture. Under special
circumstances, when public interest requires, equity joint ventures may be
requisitioned by following legal procedures and appropriate compensation shall
be made.”

    2. Article 3 shall be amended as: “The equity joint venture agreement,
contract and articles of association signed by the parties to the venture shall
be submitted to the state’s competent department in charge of foreign economic
relations and trade (hereinafter referred to as the examination and approval
authorities) for examination and approval. The examination and approval
authorities shall decide to approve or disapprove the venture within three
months. When approved, the equity joint venture shall register with the state’s
competent department in charge of industry and commerce administration,
acquire a business license and start operations”.

    3. Paragraph 1 of Article 6 shall be amended as: “An equity joint venture
shall have a board of directors; the number of the directors thereof from each
party and the composition of the board shall be stipulated in the contract and
articles of association after consultation among the parties to the venture;
such directors shall be appointed and replaced by the relevant parties. The
chairman and the vice-chairman (vice-chairmen) shall be determined through
consultation by the parties to the venture or elected by the board of
directors. If the Chinese side or the foreign side assumes the office of the
chairman, the other side shall assume the office(s) of the vice-chairman
(vice-chairmen). The board of directors shall decide on important issues
concerning the joint venture on the principle of equlity and mutual benefit.”

    4.Paragraph 2 of Article 7 shall be amended as: “An equity joint venture
may, in accordance with provisions of the relevant laws and administrative
rules and regulations of the state on taxation, enjoy preferential treatment
for reduction of or exemption from taxes.”

    5. Paragraph 1 of Article 8 shall be amended as: “An equity joint venture
shall, on the strength of its business license, open a foreign exchange account
with a bank or any other financial institution which is permitted by the state
agency for foreign exchange control to handle foreign exchange transactions.”

    Paragraph 1 of Article 10 shall be amended as: “The net profit which a
foreign joint venturer receives as its share after performing its obligations
under the laws, and the agreements or the contract, the funds it receives upon
the expiration of the venture’s term of operation or its early termination, and
its other funds may be remitted abroad in accordance with foreign exchange
control regulations and in the currency or currencies specified in the contract
concerning the equity joint venture.”

    Article 11 shall be amended as: “The wages, salaries or other legitimate
income earned by a foreign worker or staff member of an equity joint venture,
after payment of the individual income tax under the tax laws of the People’s
Republic of China, may be remitted abroad in accordance with foreign exchange
control regulations.”

    6. Article 12 shall be amended as: “Based on different lines of trade and
different circumstances, arrangements for the duration of equity joint ventures
may be made differently through agreement by the parties to the venture.
Equity joint ventures engaged in certain lines of trade shall specify their
duration in the contracts, while equity joint ventures engaged in certain other
lines of trade may choose to or not to specify their duration in the contract.
Where an equity joint venture has had its duration specified and the parties
to the venture agree to extend the duration, the venture shall file an
application for the purpose with the examination and approval authorities six
months before its expiration. The examination and approval authorities shall,
within one month after receipt of the application, decide on its approval or
disapproval.”

    7. Article 13 shall be amended as: “In case of heavy losses, failure of a
party to perform its obligations under the contract and the articles of
association, or force majeure etc., the parties to the joint venture may
terminate the contract through their consultation and agreement, subject to
approval by the examination and approval authorities and to registration with
the state’s competent department in charge of industry and commerce
administration. In case of losses caused by a breach of contract, the financial
responsibility shall be borne by the party that has breached the contract.”

    This Decision shall enter into force as of the date of promulgation.

    The Law of the People’s Republic of China on Chinese-Foreign Equity Joint
Ventures shall be republished after being correspondingly amended according to
this Decision.?






PROVISIONS CONCERNING REDUCTION OF AND EXEMPTION FROM ENTERPRISE INCOME TAX AND CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX FOR THE ENCOURAGEMENT OF FOREIGN BUSINESSMEN TO INVEST IN THE SHANGHAI PUDONG NEW ZONE

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1990-09-11 Effective Date  1990-10-01  


Provisions Concerning Reduction of and Exemption From Enterprise Income Tax and Consolidated Industrial and Commercial Tax for the
Encouragement of Foreign Businessmen to Invest in the Shanghai Pudong New Zone



(Approved by the State Council on September 7, 1990 and promulgated by

the Ministry of Finance on September 11, 1990)

    Article 1  These Provisions are formulated in order to assist Shanghai
Pudong New Zone (hereinafter referred to as “Pudong New Zone”) in expanding
foreign economic cooperation and technological exchange, absorbing foreign
capital, introducing advanced technology, and speeding up development and
construction.

    Article 2  Production-oriented enterprises organized as Chinese-foreign
equity joint ventures, Chinese-foreign contractual joint ventures and
foreign-capital enterprises established in Pudong New Zone shall be subject
to enterprise income tax at the reduced tax rate of 15% on income derived from
production and business operations and on other income. Upon the filing of an
application with and approval of the tax authorities, an exemption from income
tax in the first and second years, commencing the first profit-making year,
and a 50% reduction of income tax from the third through the fifth years shall
be granted to those enterprises scheduled to operate for a period of 10 years
or more.

    Article 3  After the period of enterprise income tax reduction and
exemption has expired in accordance with the provisions of the State,
export-oriented enterprises may, for any year in which the output value of the
export products of the enterprise amounts to 70% or more of the output value
of the products of the enterprise for that year, pay enterprise income tax at
a reduced tax rate of 10%. After the period of enterprise income tax reduction
and exemption has expired in accordance with the provisions of the State, the
payment of enterprise income tax at a rate reduced by one half may be extended
for a period of 3 years for advanced technology enterprises.

    Article 4  Enterprises with foreign investment that are engaged in the
operation of such energy resources and communications construction projects
as airport, harbour, railway, highway, and power station, shall be subject to
enterprise income tax at a reduced tax rate of 15%. Upon the filing of an
application with and approval of the tax authorities, an exemption from income
tax from the first through fifth years, commencing the first profit-making
year, and a 50% reduction of income tax from the sixth through the tenth years
shall be granted to those enterprises scheduled to operate for a period of 15
years or more.

    Article 5  Enterprises with foreign investment, that are engaged in
infrastructure construction connected with certain projects on tracts of land,
upon approval by the tax authorities of an application filed by the enterprise,
shall be given preferential treatment in taxation, in accordance with Article
2 of these Provisions concerning production-oriented enterprises.

    Article 6  With respect to foreign financial institutions such as foreign
capital banks, branch offices of foreign banks, banks with Chinese-foreign
joint capital, and finance companies that are scheduled to operate for a
period of 10 years or more, if the paid-in capital of foreign investors or the
capital granted by the head office to the branch office for business
operations exceeds 10 million U.S. dollars, upon approval by the tax
authorities of an application, the enterprise income tax shall be levied on
income derived from business operations at a reduced tax rate of 15%, and
shall subject to an exemption in the first year, commencing the first
profit-making year, and a 50% reduction in the second and third years.

    Article 7  Foreign financial institutions such as foreign capital banks,
branch offices of foreign banks, banks with Chinese-foreign joint capital,
and finance companies shall be subject to consolidated industrial and
commercial tax at a tax rate of 3% on their income derived from loan
transactions, and a tax rate of 5% on their income derived from other
financial transactions.

    Article 8  A foreign investor that reinvests its share of profit
obtained from an enterprise in the same enterprise or in other enterprises
with foreign investment, or uses the aforesaid share of profit for setting up
a new enterprise with foreign investment, where the period of operation is
not less than 5 years, shall be refunded 40% of the amount of income tax
paid on the reinvested portion; if the reinvested amount is used to set up
export-oriented enterprises or advanced technology enterprises, where the
period of operation is not less than 5 years, the entire amount of income
tax paid on the reinvested portion shall be refunded.

    Article 9  Where a foreign investor to a Chinese-foreign equity joint
venture remits its share of profit out of China, the amount remitted shall
be exempt from income tax.

    Article 10  Foreign investors having no establishments in China but
receiving dividends, interest, rentals, royalties, and other income from
sources in the Pudong New Zone shall be subject to income tax at a reduced
tax rate of 10%, with the exception of those that are exempt from income tax
in accordance with the law. Where investors which provide funds or equipment
on preferential terms, or transfer advanced technology, and need to be granted
more preferential treatment in the form of income tax reduction or exemption,
the case shall be decided by the Shanghai Municipal People’s Government.

    Article 11  Export products manufactured by enterprises with foreign
investment, with the exception of crude oil, refined oil and the products
otherwise specified by the State, shall be exempt from consolidated
industrial and commercial tax.

    Article 12  Building materials, production and management equipment and
spare parts, means of transport, office supplies required for own use, as
well as raw materials and auxiliary materials required for production,
imported by enterprises with foreign investment, shall be exempt from
consolidated industrial and commercial tax.

    Where enterprises with foreign investment use the tax-free imported raw
materials, spare parts, components and packaging materials for processing
products, which are then sold on the domestic market, consolidated industrial
and commercial tax shall be made up on the imported materials and components
used for processing of such products.

    Article 13  Reasonable quantities of settling-in articles and means of
transport personally brought in by foreign personnel who are working or
reside in enterprises located in Pudong New Zone, shall be exempt from
consolidated industrial and commercial tax.

    Article 14  The Shanghai Municipal People’s Government shall decide
whether or not the preferential treatment shall be granted to enterprises
with foreign investment in respect of local income tax imposed on them, or
in respect of real estate tax imposed on the new houses which have been
built or bought by them for their own use.

    Article 15  For enterprises established or projects launched with
investment by companies, enterprises and other economic organizations as
well as individuals from Hong Kong, Macao and Taiwan, matters shall be
handled by taking reference to these Provisions.

    Article 16  The State Taxation Bureau shall be responsible for
interpreting these Provisions.

    Article 17  These Provisions shall go into effect as of October 1, 1990.





ENTRY AND EXIT ANIMAL AND PLANT QUARANTINE

Category  AGRICULTURE, FORESTRY AND METEOROLOGY Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1991-10-30 Effective Date  1992-04-01  


Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine

Contents            
Chapter I  General Provisions
Chapter II  Entry Quarantine
Chapter III  Exit Quarantine
Chapter IV  Transit Quarantine
Chapter V  Quarantine of Materials Carried by Passengers or by Post
Chapter VI  Quarantine of Means of Transport
Chapter VII  Legal Responsibility
Chapter VIII  Supplementary Provisions

(Adopted at the 22nd Meeting of the Standing Committee of the Seventh

National People’s Congress on October 30, 1991, promulgated by Order No. 53
of the President of the People’s Republic of China on October 30, 1991 and
effective as of April 1, 1992)
Contents            

    Chapter I     General Provisions

    Chapter II    Entry Quarantine

    Chapter III   Exit Quarantine

    Chapter IV    Transit Quarantine

    Chapter V     Quarantine of Materials Carried by Passengers or by Post

    Chapter VI    Quarantine of Means of Transport

    Chapter VII   Legal Responsibility

    Chapter VIII  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is formulated for the purpose of preventing
infectious or parasitic diseases of animals, diseases, insect pests and weeds
dangerous to plants, and other harmful organisms (hereinafter referred to,
for short, as diseases, insect pests and harmful organisms) from spreading
into or out of the country, protecting the production of agriculture,
forestry, animal husbandry and fishery as well as human health, and promoting
the development of foreign economic relations and trade.

    Article 2  Animals and plants, their products and other quarantine
objects, containers and packaging materials used for carrying animals and
plants, their products or other quarantine objects, as well as means of
transport from animal or plant epidemic areas shall, on entry or exit, be
subject to quarantine inspection in accordance with this Law.

    Article 3  An animal and plant quarantine department shall be instituted
under the State Council (hereinafter referred to, for short, as the State
animal and plant quarantine department), which shall conduct a unified
administration of the entry and exit animal and plant quarantine in the whole
country. Port animal and plant quarantine offices set up by the State animal
and plant quarantine department at ports open to the outside world and at
places busy with entry and exit animal and plant quarantine shall, in
accordance with this Law, carry out entry and exit animal and plant
quarantine.

    The department in charge of the quarantine of animal products leaving the
country for trade purposes shall be designated by the State Council as it
deems appropriate.

    The department of agriculture administration under the State Council
shall be in charge of the entry and exit animal and plant quarantine in the
whole country.

    Article 4  A port animal and plant quarantine office may exercise the
following functions and powers when performing quarantine inspection:

    (1) Embarking on a ship, a vehicle or an airplane to perform quarantine
under this Law;

    (2) Entering a seaport, an airport, a railway or coach station, a post
office or a site where quarantine objects are stored, processed, bred or
cultivated, to perform quarantine inspection and collect samples according to
relevant regulations;

    (3) Entering a site relating to production or storage according to the
needs of quarantine, to carry out epidemic monitoring and investigations or
quarantine supervision and control;

    (4) Consulting, making copies of or excerpts from operational diaries,
bills of lading, contracts, invoices or other documents relating to the
quarantine objects.

    Article 5  The State shall prohibit the following objects from entering
the country:

    (1) Pathogenic micro-organisms (including seed cultures of bacteria and
viruses) of animals and plants, insect pests and other harmful organisms;

    (2) Relevant animals and plants, their products and other quarantine
objects from countries or regions with prevalent epidemic animal or plant
diseases;

    (3) Animal carcasses; and

    (4) Soil.

    When a port animal and plant quarantine office discovers any objects
prohibited from entering the country as prescribed in the preceding
paragraph, such objects shall be returned or destroyed.

    Whoever, because of special needs such as scientific research, imports
any objects prohibited from entering the country as prescribed in the first
paragraph of this Article, must submit an application in advance, which shall
be subject to the approval by the State animal and plant quarantine
department.

    The catalogues of objects prohibited from entering the country as
prescribed in (2) of the first paragraph of this Article shall be worked out
and announced by the department of agriculture administration under the State
Council.

    Article 6  In the event that a serious animal or plant epidemic occurs
abroad and is liable to spread into the country, the State Council shall
adopt emergent preventive measures and may, when necessary, issue orders to
prohibit means of transport from animal or plant epidemic areas from entering
the country or to blockade the relevant ports; the local people’s governments
in areas threatened by the animal or plant epidemic as well as the port
animal and plant quarantine offices concerned shall immediately take
emergency measures, and, at the same time, report to the people’s governments
at higher levels and the State animal and plant quarantine department.

    The departments of posts and telecommunications and departments of
transportation shall give priority to transmitting or transporting reports
concerning serious animal or plant epidemic or materials to be sent for
quarantine inspection.

    Article 7  The State animal and plant quarantine department and port
animal and plant quarantine offices shall practise a quarantine supervision
system in relation to the procedures in the production, processing and
storage of animals and plants and their products for entry or exit.

    Article 8  When a port animal and plant quarantine office is carrying out
its tasks of quarantine inspection in seaports, airports, railway or coach
stations, or post offices, relevant departments such as the Customs,
departments of communications, civil aviation, or railways, and postal
services shall coordinate therewith.

    Article 9  Any quarantine functionary of an animal and plant quarantine
organ must be devoted to his or her duties and enforce the law impartially.

    No unit or individual may obstruct a quarantine functionary of an animal
and plant quarantine organ from carrying out his or her duties according to
law.
Chapter II  Entry Quarantine

    Article 10  Whoever imports animals, animal products, plant seeds,
seedlings or other propagating materials must submit an application in
advance and go through the formalities for examination and approval of
quarantine inspection.

    Article 11  Whoever imports animals and plants, their products or other
quarantine objects through trade, scientific and technological cooperation,
exchanges, donations or aid shall specify in the contracts or agreements the
requirements for quarantine inspection prescribed by China’s law and the
necessity of quarantine certificates issued by the animal and plant
quarantine department under the government of the exporting country or region
being appended therewith.

    Article 12  The owner or his or  her agent shall apply to the port animal
and plant quarantine office at the port of entry for quarantine inspection of
the animals and plants, their products or other quarantine objects, before or
on their entry, on the strength of documents such as the quarantine
certificates issued by the exporting country or region and the trade
contracts.

    Article 13  On arrival at a port of a means of transport for carrying
animals, the port animal and plant quarantine office shall for the prevention
of epidemics adopt onthespot preventive measures and conduct disinfection of
persons embarking on or disembarking from the means of transport or having
contacts with the animals, the means of transport for carrying the animals
and the contaminated fields.

    Article 14  Import animals and plants, their products and other
quarantine objects shall be quarantined at the port of entry; without consent
of the port animal and plant quarantine office, the same shall not be
unloaded from the means of transport.

    The import animals and plants that need to be placed in isolation for
quarantine inspection shall be quarantined in an isolation court designated
by the port animal and plant quarantine office.

    By reason of limited conditions at the port of entry, the State animal
and plant quarantine department may decide to have the animals and plants,
their products or other quarantine objects transported to a designated place
for quarantine inspection. In the course of transportation, loading and
unloading, the owner or his or her agent shall take preventive measures
against epidemics. Designated places for storage, processing, isolated
feeding or planting shall conform to the provisions on animal and plant
quarantine and epidemic prevention.

    Article 15  The import animals and plants, their products or other
quarantine objects that pass the quarantine inspection are allowed to enter
the country; the Customs shall, after verification, release the same on the
strength of the quarantine certificates issued, or the stamps on the customs
declaration forms affixed, by the port animal and plant quarantine office.

    In respect of the import animals and plants, their products or other
quarantine objects that need to be transferred away from a customs
surveillance zone for quarantine inspection, the Customs shall, after
verification, release the same on the strength of the Quarantine Transference
Notice issued by the port animal and plant quarantine office.

    Article 16  In respect of the import animals that fail in the quarantine
inspection, the port animal and plant quarantine office shall issue the
Quarantine Treatment Notice notifying the owner or his or her agent to deal
with the said animals in either of the following manners:

    (1) The animals that are found suffering from Class A infectious or
parasitic diseases, shall, together with all the other in-contact animals,
be returned or slaughtered with their carcasses destroyed; or

    (2) The animals that are found suffering from Class B infectious or
parasitic diseases shall be returned or slaughtered; and the other incontact
animals shall be placed in an isolation camp or any other designated place
for observation.

    In respect of import animal products or other quarantine objects that
fail in the quarantine inspection, the port animal and plant quarantine
office shall issue the Quarantine Treatment Notice notifying the owner or his
or her agent to conduct such treatments as disinfection and disinfestation,
returning or destruction. The products or objects that pass the quarantine
inspection after a treatment of disinfection and disinfestation are allowed
to enter the country.

    Article 17  On discovering through quarantine inspection that import
plants, plant products or other quarantine objects are contaminated with
diseases, pests or weeds dangerous to plants, the port animal and plant
quarantine office shall issue the Quarantine Treatment Notice notifying the
owner or his or her agent to conduct such treatments as disinfection and
disinfestation, returning or destruction. Those that pass the quarantine
inspection after a treatment of disinfection and disinfestation are allowed
to enter the country.

    Article 18  The catalogues of the Class A and Class B infectious or
parasitic diseases of animals specified in Article 16, paragraph 1, Items 1
and 2 of this Law and the catalogues of the diseases, pests or weeds
dangerous to plants specified in Article 17 of this Law shall be worked out
and announced by the department of agriculture administration under the State
Council.

    Article 19  On discovering through quarantine inspection that import
animals and plants, their products or other quarantine objects are
contaminated with diseases, insect pests or harmful organisms which are not
covered by the catalogues specified in Article 18 of this Law but are
extremely harmful to agriculture, forestry, animal husbandry and fishery, the
port animal and plant quarantine office shall, in accordance with relevant
regulations of the department of agriculture administration under the State
Council, notify the owner or his or her agent to conduct such treatments as
disinfection and disinfestation, returning or destruction. Those that pass
the quarantine inspection after a treatment of disinfection and
disinfestation are allowed to enter the country.
Chapter III  Exit Quarantine

    Article 20  The owner, or his or her agent, of exit animals and plants,
their products or other quarantine objects shall, before their exit, submit
an application for quarantine inspection to the port animal and plant
quarantine office.

    The animals that need to be placed in isolation for quarantine inspection
before exit shall be quarantined in an isolation court designated by the port
animal and plant quarantine office.

    Article 21  Export animals and plants, their products or other quarantine
objects shall be quarantined by the port animal and plant quarantine office,
and those that pass the quarantine inspection or conform to the standards
after a treatment of disinfection and disinfestation are allowed to leave the
country. The Customs shall, after verification, release the same on the
strength of the quarantine certificates issued, or the stamps on the customs
declaration forms affixed, by the port animal and plant quarantine office.
Those that fail in the quarantine inspection and are unable to be treated by
disinfection and disinfestation with effective methods shall not be allowed
to leave the country.

    Article 22  Where the animals and plants, their products or other
quarantine objects that pass the quarantine inspection are involved in any of
the following circumstances, the owner or his or her agent shall re-apply for
quarantine inspection:

    (1) Where the importing country or region is changed, and the changed
importing country or region has different requirements for quarantine
inspection;

    (2) Where the packings are changed or the unpacked products or objects
are subsequently packed;

    (3) Where the stipulated valid period of quarantine is exceeded.
Chapter IV  Transit Quarantine

    Article 23  Whoever requests a transit of animals through the Chinese
territory must obtain in advance and through consultation the consent of
China’s State animal and plant quarantine department and the transit must be
conducted through the designated port and route.

    The means of transport, containers, feeding stuffs and bedding materials
for the animals in transit must all conform to China’s regulations on animal
and plant quarantine.

    Article 24  The transit of animals and plants, their products or other
quarantine objects requires the consignor or the escort to submit at the port
of entry the bills of lading and the quarantine certificates issued by the
animal and plant quarantine department under the government of the exporting
country or region to the port animal and plant quarantine office for
quarantine inspection. No further quarantine inspection is needed at the port
of exit.

    Article 25  The transit animals that pass the quarantine inspection are
allowed to pass through the country; and in case any infectious or parasitic
disease of animals specified in the catalogues as stipulated in Article 18 of
this Law is discovered, the entire flock of the animals shall not be allowed
to transit.

    The transit animals’ feeding stuffs that are contaminated with diseases,
insect pests or harmful organisms shall be subjected to such treatments as
disinfection and disinfestation, denial of transit or destruction.

    The carcasses, excrements, bedding materials and other wastes of the
transit animals must be disposed of in accordance with the regulations of the
animal and plant quarantine department, and may not be cast away without
authorization.

    Article 26  The port animal and plant quarantine office shall examine the
means of transport and the packings, in respect of the transit plants, animal
and plant products or other quarantine objects, which are allowed to transit
through the country if they pass the quarantine inspection; in case any
disease, insect pest or harmful organism specified in the catalogues as
stipulated in Article 18 of this Law is discovered, it shall be subjected to
a treatment of disinfection and disinfestation or denial of transit.

    Article 27  Animals and plants, their products or other quarantine
objects, in the course of their transit, may not be unpacked or discharged
from the means of transport without the approval of the animal and plant
quarantine organ.
Chapter V  Quarantine of Materials Carried by Passengers or by Post

    Article 28  Whoever intends to carry or post plant seeds, seedlings or
other propagating materials into the country must submit an application in
advance and go through the formalities for examination and approval of
quarantine inspection.

    Article 29  The catalogues of the animals and plants, their products and
other quarantine objects that are not allowed to be carried or posted into
the country shall be worked out and announced by the department of
agriculture administration under the State Council.

    In case any animals or plants, animal or plant products or other
quarantine objects specified in the catalogues mentioned in the preceding
paragraph are carried or posted into the country, they shall either be
returned or destroyed.

    Article 30  Whoever enters the country carrying animals or plants, animal
or plant products or other quarantine objects which are not included in the
catalogues specified in Article 29 of this Law shall declare them to the
Customs at the port of entry and accept the quarantine inspection by the port
animal and plant quarantine office.

    Whoever carries animals into the country must hold such papers as
quarantine certificates issued by the exporting country or region.

    Article 31  The port animal and plant quarantine office shall, in respect
of the animals and plants, their products or other quarantine objects not
included in the catalogues specified in Article 29 of this Law, carry out
quarantine inspection at the International Postage Exchange Bureau, or, when
necessary, take the same back to the port animal and plant quarantine office
for quarantine inspection; and the same shall not be transported or delivered
without undergoing quarantine inspection.

    Article 32  Animals or plants, animal or plant products or other
quarantine objects that enter the country by post shall be released if they
pass the quarantine inspection or conform to the standards after the
treatment of disinfection and disinfestation; those that fail in quarantine
inspection and are unable to be treated by disinfection and disinfestation
with effective methods shall be returned or destroyed, and the Quarantine
Treatment Notice shall be issued.

    Article 33  The animals or plants, animal or plant products or other
quarantine objects that are carried or posted out of the country shall be
quarantined by the port animal and plant quarantine office, upon request by
the owner thereof.
Chapter VI  Quarantine of Means of Transport

    Article 34  Ships, airplanes or trains from the animal or plant epidemic
areas shall, upon their arrival at the port, be quarantined by the port
animal and plant quarantine office. In the event any disease, insect pest or
harmful organism specified in the catalogues mentioned in Article 18 of this
Law is discovered, the cargoes shall be subjected to such treatments as
prohibition from discharge from the means of transport,disinfection and
disinfestation, sealing up or destruction.

    Article 35  Vehicles entering the country shall be disinfected for
epidemic prevention by the port animal and plant quarantine office.

    Article 36  The swills and wastes of animal or plant nature on the means
of transport entering or leaving the country shall be disposed of in
accordance with the regulations of the port animal and plant quarantine
office and may not be cast away without authorization.

    Article 37  The means of transport carrying export animals and plants,
their products or other quarantine objects shall conform to the regulations
on animal and plant quarantine and epidemic prevention.

    Article 38  The old and disused ships entering the country for
disassembling purposes shall be quarantined by the port animal and plant
quarantine office. In the event that diseases, insect pests or harmful
organisms specified in the catalogues mentioned in Article 18 of this Law are
discovered, the said ships shall be subjected to a treatment of disinfection
and disinfestation.
Chapter VII  Legal Responsibility

    Article 39  Whoever, in violation of this Law, commits any of the
following acts shall be fined by the port animal and plant quarantine office:

    (1) Failing to apply for quarantine inspection or failing to go through
the formalities for examination and approval of quarantine inspection in
accordance with the law;

    (2) Unloading animals or plants, animal or plant products or other
quarantine objects entering the country from the means of transport or
transporting or delivering the same, without permission of the port animal
and plant quarantine office;

    (3) Transferring or disposing of, without authorization, the animals or
plants subjected to quarantine inspection in an isolation court designated by
the port animal and plant quarantine office.

    Article 40  Where the animals or plants, animal or plant products or
other quarantine objects declared for quarantine inspection do not conform to
the actual conditions, the applicant shall be fined by the port animal and
plant quarantine office; and the quarantine certificates already obtained
shall be revoked.

    Article 41  Whoever, in violation of this Law and without authorization,
unpacks the packings of transit animals or plants, animal or plant products
or other quarantine objects, discharges transit animals or plants, animal or
plant products or other quarantine objects from the means of transport, or
casts away transit animals’ carcasses, excrements, bedding materials or other
wastes,shall be fined by the port animal and plant quarantine office.

    Article 42  Whoever violates the provisions of this Law and causes
a serious animal or plant epidemic shall be investigated for criminal
responsibility by applying mutatis mutandis the provisions of Article 178 of
the Criminal Law.

    Article 43  Whoever forges or alters the quarantine certificates, stamps,
marks or seals shall be investigated for criminal responsibility in
accordance with the provisions of Article 167 of the Criminal Law.

    Article 44  If a party is not satisfied with the decision on punishment
made by an animal and plant quarantine organ, it may, within 15 days after
receipt of the notification of the punishment, apply for reconsideration to
the organ at the next higher level over the organ that has made the decision
on punishment; the party may also directly bring a suit in a people’s court
within 15 days after receipt of the notification of the punishment.

    The reconsideration organ shall, within 60 days after receipt of the
application for reconsideration, make a reconsideration decision. If the
party is not satisfied with the reconsideration decision, it may, within 15
days after receipt of the reconsideration decision, bring a suit in a
people’s court. If the reconsideration organ fails to make a reconsideration
decision within the prescribed period, the party may bring a suit within 15
days after the expiration of the period for reconsideration.

    If the party neither applies for reconsideration within the time limit,
nor brings a suit in a people’s court, nor complies with the decision on
punishment, the organ that has made the decision on punishment may apply to
a people’s court for compulsory execution.

    Article 45  Where a quarantine functionary of an animal and plant
quarantine organ who abuses his or her power, practises favouritism or
embezzlement, forges a quarantine result, or neglects his or her duty or
delays the performance of quarantine inspection and the issuance of
certificates, criminal responsibility shall be investigated according to law
if the offence constitutes a crime; if the offence does not constitute a
crime, the offender shall be subjected to administrative sanctions.
Chapter VIII  Supplementary Provisions

    Article 46  As used in this Law, the following terms respectively mean:

    (1) “Animals” mean the live animals, whether domesticated or wild, such
as livestock, poultry, beasts, snakes, tortoises, fishes, shrimps and prawns,
crabs, shellfishes, silkworms and bees;

    (2) “Animal products” mean the nonprocessed products or the processed
products, from animals, still liable to spread epidemic diseases, such as raw
hides, hairs, meats, viscerae, fat and grease, aquatic animal products, dairy
products, eggs, blood, semens, embryos, bones, hoofs and horns;

    (3) “Plants” mean cultivated plants, wild plants, their seeds and
seedlings and other propagating materials;

    (4) “Plant products” mean the non-processed products or the processed
products, from plants, still liable to spread diseases, insect pests or
harmful organisms, such as grain, beans, cotton, oils, fibres, tobacco,
kernel, dried fruits, fresh fruits, vegetables, raw medicinal herbs, logs and
feeding stuffs;

    (5) “Other quarantine objects” mean animal vaccine, blood serum,
diagnostic reagents, wastes of animal or plant nature.

    Article 47  If provisions of this Law contravene those of the
international treaties concerning animal and plant quarantine which the
People’s Republic of China has concluded or to which China is a party, the
provisions of the international treaties concerned shall prevail, with the
exception of the treaty clauses on which the People’s Republic of China has
declared reservations.

    Article 48 &n

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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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