China Laws

TOBACO MONOPOLY

Law of PRC on Tobacoo Monopoly

(Effective Date:1992.01.01–Ineffective Date:)

CHAPTER I GENERAL PROVISIONS CHAPTER II PLANTATION, PURCHASE AND ALLOCATION OF LEAF TOBACCO CHAPTER III PRODUCTION OF TOBACCO PRODUCTS
CHAPTER IV SALE AND TRANSPORTATION OF TOBACCO PRODUCTS CHAPTER V PRODUCTION AND SALE OF CIGARETTE PAPER, FILTER ROD, CIGARETTE TOW
AND CIGARETTE MANUFACTURING EQUIPMENT CHAPTER VI IMPORT AND EXPORT TRADE AND FOREIGN ECONOMIC AND TECHNOLOGICAL CO-OPERATION CHAPTER
VII LEGAL RESPONSIBILITY CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 1 This Law is enacted with a view to exercising tobacco monopoly administration, organizing the production and management of tobacco
monopoly commodities in a planned way, improving the quality of tobacco products, safeguarding consumers’ interests and ensuring
the national revenue.

Article 2 As used in this Law, “tobacco monopoly commodities” refer to cigarettes, cigars, cut tobacco, redried leaf tobacco, leaf tobacco,
cigarette paper, filter rods, cigarette tow and cigarette manufacturing equipment.

Cigarettes, cigars, cut tobacco and redried leaf tobacco are generally referred to as tobacco products.

Article 3 The State shall, according to law, exercise monopoly administration over the production, sale, import and export of tobacco monopoly
commodities, and production sale, import and export of tobacco monopoly commodities, and practice a tobacco monopoly license system.

Article 4 The department of tobacco monopoly administration under the State Council shall be responsible for the nation-wide tobacco monopoly.
The departments of tobacco monopoly administration in the provinces, autonomous regions and municipalities directly under the Central
Government shall be responsible for the tobacco monopoly within the areas under their respective jurisdiction, and shall be under
the dual leadership of the department of tobacco monopoly administration under the State Council and the people’s governments of
the relevant provinces, autonomous regions and municipalities directly under the Central Government, with the leadership of the department
of tobacco monopoly administration under the State Council as the main leading authority.

Article 5 The State shall strengthen the scientific research and technical development of tobacco monopoly commodities, so as to improve the
quality of tobacco products and reduce the content of tar and other hazardous ingredients in such products.

The State and society shall intensify the publicity of and education in the fact that smoking is hazardous to health, forbid or restrict
smoking on public traffic vehicles and in public places, dissuade teen-agers and youngsters from smoking, and forbid primary school
pupils and middle school students from smoking.

Article 6 The State shall exercise administration of tobacco monopoly in national autonomous areas, and shall, according to the relevant provisions
of this Law and the Law on Regional National Autonomy, take the interests of national autonomous areas into account and give preferential
treatment to the plantation of leaf tobacco and the production of tobacco products in such areas.

CHAPTER II PLANTATION, PURCHASE AND ALLOCATION OF LEAF TOBACCO

Article 7 For the purpose of this Law, the term “leaf tobacco” means flue-cured tobacco and selected air- and sun-cured tobacco needed for
the production of tobacco products. The catalogue of selected air-and sun-cured tobacco items shall be determined by the department
of tobacco monopoly administration under the State Council.

Other air- and sun-cured tobacco items which are not included in the above mentioned catalogue may be sold at rural or urban trade
markets.

Article 8 In growing tobacco, good varieties of tobacco shall be cultivated and popularized in line with the local conditions. Good varieties
of tobacco shall, after examination and approval by the national or provincial tobacco evaluation committees, be supplied by local
tobacco companies.

Article 9 Leaf tobacco purchasing plans shall be assigned by the planning departments of the local people’s governments at or above the county
level on the basis of the plans assigned by the planning department under the State Council. No other organizations or individuals
shall make any modifications thereto.

Tobacco companies or their authorized agencies shall conclude leaf tobacco purchasing contracts with tobacco growers. Any leaf tobacco
purchasing contract shall specify the agreed area for leaf tobacco plantation.

The purchasing prices of leaf tobacco shall be set, on a grading basis, by the pricing authorities under the State Council in conjunction
with the department of tobacco monopoly administration under the State Council.

Article 10 A unified purchase of leaf tobacco shall be effected by tobacco companies or their authorized agencies in accordance with the standards
and prices set by the State. No other organizations or individuals may effect any leaf tobacco purchase.

Tobacco companies or their authorized agencies shall, after setting price on a grading basis and according to the State-prescribed
standards, purchase all the leaf tobacco grown by leaf tobacco growers within the plantation areas specified in the leaf tobacco
purchasing contracts. The grades and prices thereof shall not be forced down, and disputes arising from leaf tobacco purchasing shall
be dealt with properly.

Article 11 The plans for allocating leaf tobacco and redried leaf tobacco among the provinces, autonomous regions and municipalities directly
under the Central Government shall be assigned by the planning department under the State Council; the plans for allocating leaf
tobacco and redried leaf tobacco within areas under the jurisdiction of each province, autonomous region or municipality directly
under the Central Government shall be assigned by the planning department of the relevant province, autonomous region or municipality
directly under the Central Government. No other organizations or individuals may make any modifications thereto.

A contract must be concluded for any allocation of leaf tobacco or redried leaf tobacco.

CHAPTER III PRODUCTION OF TOBACCO PRODUCTS

Article 12 The establishment of an enterprise producing tobacco products shall be subject to the approval of the department of tobacco monopoly
administration under the State Council and the acquisition of a license for the tobacco monopoly production enterprise, and then
to the registration upon its examination and approval by the administrative department for industry and commerce; the split-up, merger
or dissolution of an enterprise producing tobacco products shall be subject to the approval of the department of tobacco monopoly
administration under the State Council and go through formalities for the change and cancellation of the registration with the administrative
department for industry and commerce. The administrative department for industry and commerces shall not approve and register an
enterprise that has not obtained a license for the tobacco monopoly production enterprise.

Article 13 Capital construction or technological innovation to be conducted by an enterprise producing tobacco products for expanding production
capacity shall be subject to the approval by the department of tobacco monopoly administration under the State Council.

Article 14 The total annual production plans for cigarettes and cigars of the provinces, autonomous regions and municipalities directly under
the Central Government shall be assigned by the planning department under the State Council. The total annual production plans for
cigarettes and cigars of an enterprise producing tobacco products shall be assigned by the department of tobacco monopoly administration
at the provincial level on the basis of the plans assigned by the planning department under the State Council and in light of the
marketing conditions. Local people’s governments shall not assign additional production quotas to an enterprise producing tobacco
products. If an enterprise producing tobacco products, in light of the marketing conditions, finds it necessary to manufacture cigarettes
and cigars exceeding the total annual production plans, it must obtain the approval of the department of tobacco monopoly administration
under the State Council.

The national tobacco company shall, on the basis of the total annual production plans set by the planning department under the State
Council, assign cigarette output targets with grading and classification specifications to the tobacco companies at the provincial
level, which shall, on the basis of the cigarette output targets with grading and classification specifications set by the national
tobacco company and in light of the marketing conditions, assign cigarette output targets with grading and classification specifications
to the enterprise producing tobacco products. An enterprise producing tobacco products may, in light of the marketing conditions,
make appropriate adjustments to the cigarette output targets with grading and classification specifications, within the scope of
the total annual production plans of the enterprise.

CHAPTER IV SALE AND TRANSPORTATION OF TOBACCO PRODUCTS

Article 15 Any enterprise which is to engage in the wholesale trade of tobacco products shall be subject to the approval of the department of
tobacco monopoly administration under the State Council or the department of tobacco monopoly administration at the provincial level,
and the acquisition of a license for the tobacco monopoly wholesale enterprise, and then to the approval and registration by the
administrative department for industry and commerce.

Article 16 Any enterprise or individual that is to engage in the retail trade of tobacco products shall be subject to the examination and approval
of, before the issuance of a license for tobacco monopoly retail trade by, the administrative department for industry and commerce
under the people’s government at the county level on the commission of the department of tobacco monopoly administration at the next
higher level. In areas where departments of tobacco monopoly administration at the county level have been set up, such departments
may, after their examination and approval, also issue tobacco monopoly retail licenses.

Article 17 The department of tobacco monopoly administration under the State Council shall, together with the pricing authorities under the
State Council, select on a grading basis cigarettes of certain brands as indicators. The prices of such indicators shall be set by
the pricing authorities under the State Council together with the department of tobacco monopoly administration under the State Council.
The prices of non-indicator cigarettes, of cigars and cut tobacco shall be fixed by the department of tobacco monopoly administration
under the State Council or by the departments of tobacco monopoly administration of the provinces, autonomous regions and municipalities
directly under the Central Government, as authorized by the department of tobacco monopoly administration under the State Council,
and shall be submitted for the record to the pricing authorities under the State Council or to the pricing authorities under the
people’s governments of the relevant provinces, autonomous regions and municipalities directly under the Central Government.

Article 18 The State shall lay down the tar content grading standards for cigarettes and cigars. The packages of cigarettes and cigars shall
indicate the grade of tar content and that smoking is hazardous to your health.

Article 19 Advertising for tobacco products shall be banned on broadcasting stations, television stations, or in newspapers or periodicals.

Article 20 Applications must be made for the registration of trade marks of cigarettes, cigars and packed cut tobacco, which shall not be manufactured
and marketed before the trade mark is registered upon approval.

The production and sale of tobacco products with counterfeit trade marks shall be forbidden.

Article 21 Trade mark labels for tobacco products must be printed by enterprises designated by the administrative department for industry and
commerce at the provincial level. Non-designated enterprises may not print trade mark labels for tobacco products.

Article 22 Whoever consigns the transportation of tobacco monopoly commodities to others or undertakes the transportation thereof by himself
must hold a transportation permit signed and issued by the department of tobacco monopoly administration or its authorized agency;
consignees may not undertake the transportation for any consignor who does not hold a transportation permit.

Article 23 Whoever sends by post or brings from another place leaf tobacco or tobacco products shall not exceed the quantity limits prescribed
by the competent department under the State Council.

Article 24 Any individual who enters the territory of China shall not carry tobacco products more than the quantity limits prescribed by the
competent department under the State Council.

CHAPTER V PRODUCTION AND SALE OF CIGARETTE PAPER, FILTER ROD, CIGARETTE TOW AND CIGARETTE MANUFACTURING EQUIPMENT

Article 25 Any enterprise which is to engage in the production of cigarette paper, filter rods, cigarette tow or cigarette manufacturing equipment
must apply to the department of tobacco monopoly administration under the State Council for approval and obtain a license for the
tobacco monopoly production enterprise.

As used in this Law, the term “cigarette manufacturing equipment” means a complete set of equipment for cigarette manufacturing.

Article 26 Any enterprise engaged in the production of cigarette paper, filter rods, cigarette tow or cigarette manufacturing equipment shall
organize production in accordance with the plans assigned by the department of tobacco monopoly administration under the State Council
and the order contracts concluded with the enterprises producing tobacco products.

Article 27 Any enterprise engaged in the production of cigarette paper, filter rods, cigarette tow or cigarette manufacturing equipment may
shall its products only to tobacco companies or enterprises producing tobacco products with the license for tobacco monopoly production
enterprises.

CHAPTER VI IMPORT AND EXPORT TRADE AND FOREIGN ECONOMIC AND TECHNOLOGICAL CO-OPERATION

Article 28 The department of tobacco monopoly administration under the State Council shall, in accordance with the relevant regulations of the
State Council, exercise control over tobacco industry’s import and export trade and its foreign economic and technological co-operation.

Article 29 Any enterprise engaged in the import and export of tobacco monopoly commodities, the consignment for sale of foreign tobacco products
or the purchase and sale of duty-free foreign tobacco products within a customs surveillance zone shall be subject to the approval
of the department of tobacco monopoly administration under the State Council or the department of tobacco monopoly administration
at the provincial level and must obtain a special license for the tobacco monopoly operation enterprise.

Any enterprise with a special license for the tobacco monopoly operation enterprise must, in accordance with the relevant regulations
of the department of tobacco monopoly administration under the State Council, submit to the department the plans and statements about
its purchases, sales and stock.

Article 30 Whoever, in violation of this Law, purchases leaf tobacco without authorization shall be fined by the department of tobacco monopoly
administration, and the leaf tobacco illegally purchased shall be repurchased by the said department at the price set by the State;
if the illegal purchase involves large quantities, the leaf tobacco purchased and the illegal income derived therefrom shall be confiscated.

Article 31 Whoever transports or consigns to others the transportation of tobacco monopoly commodities without a transportation permit, or in
excess of the quantity specified in the transportation permit, shall be fined by the department of tobacco monopoly administration,
and the tobacco monopoly commodities thus involved may be purchased by the said department at the price set by the State; if the
circumstances are serious, the tobacco monopoly commodities illegally transported and the illegal income derived therefrom shall
be confiscated.

A consignee who, knowing that the goods to be transported are tobacco monopoly commodities, undertakes the transportation thereof
for units or individuals that do not hold transportation permits, shall be confiscated of the illegal income derived therefrom by
the department of tobacco monopoly administration, with the concurrent punishment of a fine.

Whoever brings from another place leaf tobacco or tobacco products far in excess of the quantity limits prescribed by the State shall
be dealt with in accordance with the provisions of the first paragraph of this Article.

Article 32 Where an enterprise that does not hold a license for the tobacco monopoly production enterprise produces tobacco products, the department
of tobacco monopoly administration shall order it to close down, confiscate the illegal income derived therefrom and concurrently
impose a fine.

Where an enterprise that does not hold a license for the tobacco monopoly production enterprise produces cigarette paper, filter rods,
cigarette tow or cigarette manufacturing equipment, the department of tobacco monopoly administration shall order it to stop the
production of the said products, confiscate the illegal income derived therefrom and may concurrently impose a fine.

Article 33 Where an enterprise that does not hold a license for the tobacco monopoly wholesale enterprise engages in the wholesale trade of
tobacco products, the department of tobacco monopoly administration shall order it to close down or to stop the wholesale trade of
tobacco products, confiscate the illegal income derived therefrom and concurrently impose a fine.

Article 34 Where an enterprise that does not hold a special license for the tobacco monopoly operation enterprise engages in the import and
export of tobacco monopoly commodities, the consignment for sale of foreign tobacco products, or the purchase and sale of duty-free
foreign tobacco products, the department of tobacco monopoly administration shall order it to stop the aforesaid operations, confiscate
the illegal income derived therefrom and concurrently impose a fine.

Article 35 Where an enterprise or individual that does not hold a tobacco monopoly retail license engages in the retail sale of tobacco products,
the administrative department for industry and commerce shall order it or him/her to stop retail business, confiscate the illegal
income derived therefrom and concurrently impose a fine.

Article 36 Where an enterprise or individual produces or sells cigarettes, cigars or packed cut tobacco without registered trade marks, the
administrative department for industry and commerce shall order it or him/her to stop the production and sales thereof and shall
concurrently impose a fine. Where an enterprise or individual produces or sells tobacco products with counterfeit trade marks, the
administrative department for industry and commerce shall order it or him/her to stop the infringing act and to compensate the losses
of the infringed, and may concurrently impose a fine; if the infringement constitutes a crime, the offender’s criminal responsibility
shall be investigated according to law.

Article 37 Where an enterprise or individual, in violation of the provisions of Article 21 of this Law, illegally prints trade mark labels for
tobacco products, the administrative department for industry and commerce shall destroy the printed trade mark labels, confiscate
the illegal income derived therefrom and concurrently impose a fine.

Article 38 Where an enterprise or individual profiteers in tobacco monopoly commodities and the profiteering constitutes a crime of illicit
speculation, such profiteer’s criminal responsibility shall be investigated according to law; if the circumstances are not so serious
as to constitute a crime, the administrative department for industry and commerce shall confiscate the profiteered tobacco monopoly
commodities as well as the illegal income derived therefrom and may concurrently impose a fine.

Personnel of a department of tobacco monopoly administration or of a tobacco company, who, by taking advantage of their office, commit
the crime specified in the preceding paragraph, shall be subjected to heavier punishments according to law.

Article 39 Any enterprise or individual that forges or alters the licenses prescribed in this Law such as those for tobacco monopoly production
enterprises, tobacco monopoly business, as well as transportation permits, shall be investigated for criminal responsibility according
to law.

Any enterprise or individual that purchases or sells the licenses prescribed in this Law such as those for tobacco monopoly production
enterprises, tobacco monopoly business, as well as transportation permits, shall be investigated for criminal responsibility by applying
mutatis mutandis the provisions of Article 117 of the Criminal Law.

Personnel of a department of tobacco monopoly administration or of a tobacco company who, by taking advantage of their office, commit
the crimes specified in the preceding two paragraphs shall be subjected to heavier punishments according to law.

Article 40 Where the smuggling of tobacco monopoly commodities constitutes the crime of smuggling, the smuggler’s criminal responsibility shall
be investigated in accordance with the Supplementary Provisions Concerning the Punishment of the Crimes of Smuggling; if the smuggling
does not involve tobacco monopoly commodities in large quantities, thus not constituting the crime of smuggling, the smuggled commodities
and articles as well as the illegal income derived therefrom shall be confiscated by the Customs, and as a fine may concurrently
be imposed.

Personnel of a department of tobacco monopoly administration or of a tobacco company who, by taking advantage of their office, commit
the crime specified in the preceding paragraph shall be subjected to heavier punishments according to law.

Article 41 The department of tobacco monopoly administration shall have the right to carry out inspection on the implementation of this Law.
Whoever by means of violence or threat obstructs such inspectors from carrying out their duties according to law shall be investigated
for criminal responsibility according to law; whoever refuses or obstructs such inspectors from carrying out their duties according
to law, but without resorting to violence or threat, shall be punished by the public security organs in accordance with the Regulations
on the Administrative Penalties for Public Security.

Article 42 Personnel from a people’s court or a relevant department dealing with law breaking cases who share out the confiscated tobacco products
shall be investigated for criminal responsibility in accordance with the provisions of Article 1 and Article 2 of the Supplementary
Provisions Concerning the Punishment of the Crimes of Embezzlement and Bribery.

Personnel from a people’s court or a relevant department dealing with law breaking cases who purchase the confiscated tobacco products
shall be ordered to return the products and may be subjected to administrative sanctions.

Article 43 Personnel from the department of tobacco monopoly administration or from a tobacco company who abuse their power, seek personal interests
and commit malpractice or neglect their duties shall be subjected to administrative sanctions; if the circumstances are so serious
as to constitute a crime, the offender shall be investigated for criminal responsibility according to law.

Article 44 A party, if not satisfied with the decision on administrative sanctions made by the department of tobacco monopoly administration
or the administrative department for industry and commerce, may, within 15 days after receiving the notice about the decision on
punishment, apply for reconsideration to the authorities at the next higher level over the authorities that made the decision on
punishment; the party may also, within 15 days after receiving the notice about the decision on punishment, directly bring a suit
in a people’s court.

The reconsideration department shall, within 60 days after receiving the application for reconsideration, make a reconsideration decision.
The party, if not satisfied with the reconsideration decision, may, within 15 days after receiving the reconsideration decision,
bring a suit in a people’s court; if the reconsideration department fails to make a reconsideration decision within the time limit,
the party may, within 15 days after the expiration of the time limit for reconsideration, bring a suit in a people’s court.

If a party has not applied for reconsideration, nor brought a suit in a people’s court within the time limit, nor complied with the
decision on punishment, the department that has made the decision may apply to a people’s court for compulsory execution.

CHAPTER VII SUPPLEMENTARY PROVISIONS

Article 45 The State Council shall formulate implementing regulations on the basis of this Law.

Article 46 This Law shall enter into force on January 1, 1992. The Regulations on Tobacco Monopoly promulgated by the State Council on September
23, 1983 shall be annulled simultaneously.

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUES OF FOREIGN-RELATED TAXATION OCCURRED WHILE CARRYING OUT THE PROVISIONS ON TAXATION POLICY OF STATE HIGH/NEW TECHNOLOGY INDUSTRY DEVELOPMENT ZONES

The State Administration of Taxation

Circular of the State Administration of Taxation on the Issues of Foreign-related Taxation Occurred While Carrying Out the Provisions
on Taxation Policy of State High/New Technology Industry Development Zones

GuoShuiHanFa [1991] No.663

September 16, 1991

The issues of foreign-related taxation occurred while carrying out the Circular of State Council Concerning Approving the State High/New
Technology Industry Development Zones and Relevant Policies and Provisions (GuoFa [1991] No.12) and the Provisions on Tax Policy
of State High/New Technology Industry Development Zones (hereinafter referred to as the Provisions) are specified as follows:

Where the Chinese-foreign equity joint ventures which are in the high/new technology industry development zones (hereafter as development
zones) approved by State Council to be established and which are determined to be high/new technology enterprises, according to the
Paragraph 4 of Article 6 of the Provisions, have difficulty paying taxes after the period of tax exemption is expired and need be
given special favor of proper reduction and exemption of tax again in a certain period, the enterprise shall file the application
and submit the report to State Administration of Taxation for approval after the local tax authorities have examined.

The enterprises with foreign investment which are established in development zones and determined to be high/new technology enterprises,
the business income tax may be levied at the reduced rate of 15% since the tax year on which the date of the determination to be
high/new technology enterprises falls.

Where the high/new technology industry development zones defined by State Council is in coastal economical open zone, the enterprises
with foreign investment which are determined to be high/new technology enterprises are permitted to choose one preferential treatment
of taxation in the provisions of taxation preference in economical open zones and industry development zones, but shall not overlap.

Where the enterprises with foreign investment which are established in development zones and determined to be high/new technology
enterprises need accelerate the depreciation of the apparatus and facilities used for development of high/new technology or production
of high/new technology products, shall file an application, and after the check and approval of local taxation authorities, be reported,
level by level, to the State Administration of Taxation for approval.

The State Administration of Taxation
1991-09-16

OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE AMENDING OF THE PROVISIONS CONCERNING THE ADMINISTRATION OF VESSELS OF FOREIGN NATIONALITY NAVIGATING IN THE WATERS OF THE YANGTZE RIVER

Category	COMMUNICATIONS AND TRANSPORT	Organ of Promulgation	The State Council	Status of Effect	With An Amendment Existing
Date of Promulgation	1992-06-06	Effective Date	1992-07-25

Official Reply of the State Council Concerning the Amending of the Provisions of the People’s Republic of China Concerning the Administration of Vessels of Foreign Nationality Navigating in the Waters of the Yangtze River

PROVISIONS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE ADMINISTRATION

(June 6, 1992) (Editor’s Note: For the revised text, see Official

Reply of the State Council Concerning the Amending of the Provisions of the
People’s Republic of China Concerning the Administration of Vessels of
Foreign Nationality Navigating in the Waters of the Yangtze River (Appendix:
The Third Revised Text) promulgated on May 26, 1997, and effective as of
August 1, 1997)

The Ministry of Communications:

We are in receipt of your request concerning the amending of the
Provisions of the People’s Republic of China for the Administration of
Vessels of Foreign Nationality Navigating in the Waters of the Yangtze River.
The official reply is hereby given according to the decision of the Standing
Committee of the National People’s Congress concerning the approval of
opening the Wuhan Port, Jiujiang Port and Wuhu Port to vessels of
foreign nationality:

1. Article 3 of the Provisions of the People’s Republic of China for the
Administration of Vessels of Foreign Nationality Navigating in the Waters of
the Yangtze River shall be amended as: “The Yangtze River waters as mentioned
in these Provisions refer to the main course waters west of the line between
Liuheiwu in the lower reaches of the mouth of the Liuhe River (31 degrees 30
minutes north latitude, 121 degrees 18 minutes east longitude) and Shixingan
in the lower reaches of the mouth of the Shiqiao River on the Chongming Island
(31 degrees 37 minutes north latitude, 121 degrees 22 minutes east longitude)
and east of the line between the Southern Tower of the Dunkoujiakongdielan in
Wuhan (30 degrees 26 minutes north latitude, 114 degrees 12 minutes east
latitude) and the Northern Tower (30 degrees 27 minutes north latitude, 114
degrees 11 minutes east longitude).

The ports as mentioned in these Provisions refer to the ports along
the Yangtze River waters which are open to vessels of foreign nationality
according to the provisions of the preceding paragraph.”

2. The amended Article 3 of the Provisions of the People’s Republic of
China for the Administration of Vessels of Foreign Nationality Navigating in
the Waters of the Yangtze River shall be promulgated by your Ministry.
PROVISIONS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE ADMINISTRATION
OF VESSELS OF FOREIGN NATIONALITY NAVIGATING IN THE WATERS OF THE YANGTZE
RIVER (Approved by the State Council on April 9, 1983, promulgated by the
Ministry of Communications on April 20, 1983, amended twice with the approval
of the State Council on February 6, 1986 and June 6, 1992, and promulgated by
the Ministry of Communications on July 25, 1992)

Article 1 The Yangtze River is an inland waterway of the People’s
Republic of China. These Provisions have, in accordance with the Rules of the
People’s Republic of China Concerning the Administration of Vessels of Foreign
Nationality, been formulated with a view to safeguarding the sovereignty of
the People’s Republic of China, ensuring the safety of vessels and maintaining
the order of traffic in the Yangtze River waters and its ports.

Article 2 All motorized and non-motorized vessels and other water-borne
vehicles of transport of foreign nationality (hereinafter referred to as
“vessels”) sailing in, or berthing at, waters or ports of the Yangtze River
of the People’s Republic of China shall comply with these Provisions and all
relevant laws, administrative regulations and rules of the People’s Republic
of China.

Article 3 The Yangtze River waters as mentioned in these Provisions refer
to the main course waters west of the line between Liuheiwu in the lower
reaches of the mouth of the Liuhe River (31 degrees 30 minutes north latitude,
121 degrees 18 minutes east longitude) and Shixingan in the lower reaches of
the mouth of the Shiqiao River on the Chongming Island (31 degrees 37 minutes
north latitude, 121 degrees 22 minutes east longitude) and east of the line
between the Southern Tower of the Dunkoujiakongdielan in Wuhan (30 degrees 26
minutes north latitude, 114 degrees 12 minutes east latitude) and the Northern
Tower (30 degrees 27 minutes north latitude, 114 degrees 11 minutes east
longitude).

The ports as mentioned in these Provisions refer to the ports along
the Yangtze River waters which are open to vessels of foreign nationality
according to the provisions of the preceding paragraph.

Article 4 These Provisions shall be enforced by the Harbour
Superintendency Administration of the People’s Republic of China, and all
vessels shall subject themselves to its supervision and control.

Article 5 No vessels may enter the Yangtze River waters or its ports
without the approval of the Harbour Superintendency Administration of the
People’s Republic of China. Those permitted to enter the Yangtze River
waters shall be subject to inspection of the Health Quarantine Office, the
Harbour Superintendency Administration, the Border Inspection Office, the
Customs and the Animal and Plant Quarantine Office, and complete all relevant
formalities. The abovementioned authorities are enpost_titled to exercise on
board supervision, if and when they deem it necessary.

Article 6 Vessels entering the Yangtze River waters shall not engage
in shipping business between the various ports along the Yangtze River
and between these ports and the port of Shanghai, nor shall they engage
in other unauthorized operations.

Article 7 A vessel entering the Yangtze River ports shall comply with
the following stipulations:

(1) One week prior to its scheduled passage through the port of
Shanghai, appoint the port agent company for foreign vessels to complete entry
formalities and seek approval from the Harbour Superintendency Administration
at the next port of call on the Yangtze River.

(2) 24 hours prior to passing through the port of Shanghai (or upon
departure from the last port of call if the voyage takes less than 24 hours),
report such information as the estimated time for passing through the port of
Shanghai and arrival at the port on the Yangtze River, the size of the vessel,
its fore and aft drafts, and maximum height above the actual waterline, to
the Harbour Superintendency Administration through the port agent for
foreign vessels.

(3) Shall duly advise any alteration in the time reported as required
under this Article.

Article 8 Vessels sailing in the Yangtze River waters or shifting berths
at its ports shall apply to the Harbour Superintendency Administration at the
port of arrival along the Yangtze River for pilotage, and for passing through
the port of Shanghai, shall apply to the Shanghai Harbour Superintendency
Administration for pilotage.

Article 9 Upon arrival at the port, vessels shall immediately submit
the entry report and other relevant forms and statements, ship’s papers and
relevant documents for examination and subject themselves to inspection.
Before leaving the port, vessels shall report the time of departure and the
port of destination to the Harbour Superintendency Administration and complete
the departure formalities through the port agency for foreign vessels and may
leave the port only after port clearance has been obtained.

Article 10 Vessels sailing in the Yangtze River waters or berthing
at its ports shall during the day fly the national flag of the People’s
Republic of China at the top of the front mast and the national flag of the
country of registry at the stern; an “H” flag shall in addition be flown when
there is a pilot on board. On entering or leaving ports or shifting berths,
vessels shall also display signal-letters and other prescribed signals.

Article 11 Vessels making use of their VHF radio-telephone in the
Yangtze River waters or its ports shall comply with the Interim Measures
Governing the Use of VHF Radio-Telephone by Foreign Vessels promulgated by
the Ministry of Communications of the People’s Republic of China.

Article 12 In the Yangtze River waters, a vessel’s radio-telegraph and
radio-telephone transmitters can only be used for communications with the
riverside and coastal radio-stations of the People’s Republic of China, and
they can only be used in ports in case of emergency, and reports shall be made
to the Harbour Superintendency Administration immediately thereafter.

In the Yangtze River waters and its ports, a vessel’s signal rockets,
flame signals or signal guns can only be used in case of emergency, and
reports shall be made to the Harbour Superintendency Administration
immediately thereafter.

Article 13 Vessels sailing in the Yangtze River waters or berthing
at its ports are prohibited from conducting the following activities:

(1) taking photographs or drawing sketches of military installations
and military vessels, or videotaping or surveying the same;

(2) shooting, swimming, fishing and setting off firecrackers or
fireworks; or

(3) other activities endangering the national security, rights and
interests, safety and order of the People’s Republic of China.

Article 14 Vessels sailing in the Yangtze River waters shall anchor
as near to the outer limit of the fairway as possible, and shall not
occupy the main channel of navigation under extraordinary circumstances
such as inclement weather and flood peaks, when temporary anchoring is
required, and shall promptly report the time and position of anchoring and the
time of departure to the nearest Harbour Superintendency Administration, and
no crew member shall go ashore without the permission of the local public
security organs.

Article 15 Vessels sailing in the Yangtze River waters shall not
proceed at a speed that may endanger the safety of other vessels and
installations on the river banks.

Article 16 Matters concerning navigation, berthing and prevention of
collisions of vessels sailing in the Yangtze River waters or berthing at
its ports shall be carried out in accordance with the Rules Governing
Prevention of Collision in Inland Waterways promulgated by the Ministry of
Communications of the People’s Republic of China.

Article 17 While using signals, vessels shall comply with the Rules
Governing Prevention of Collisions in Inland Waterways and other relevant
signal regulations promulgated by the Ministry of Communications of the
People’s Republic of China; signals not specified therein shall be displayed
in accordance with the relevant international regulations.

Article 18 No vessels sailing in the Yangtze River waters or berthing
at its ports shall discharge or dispose of oils, oily mixtures or other
pollutants or refuse into the water.

Article 19 Matters provided for in these Provisions shall be handled
in accordance therewith, while those not set forth herein shall be
dealt with in accordance with the Rules of the People’s Republic of China
Concerning the Administration of Vessels of Foreign Nationality and other
relevant stipulations.

Article 20 These Provisions shall come into effect as of the date of
promulgation.

REGULATIONS FOR THE IMPLEMENTATION OF THE LAND ADMINISTRATION LAW ()

Category	LAND ADMINISTRATION	Organ of Promulgation	The State Council	Status of Effect	Invalidated
Date of Promulgation	1991-01-04	Effective Date	1991-02-01	Date of Invalidation	1999-01-01

Regulations for the Implementation of the Land Administration Law of the People’s Republic of China (1991)

Chapter I  General Provisions
Chapter II  Land Ownership Rights and Land Use Rights
Chapter III  Utilization and Protection of Land
Chapter IV  Land for State Construction
Chapter V  Land for Township(Town) and Village Construction
Chapter VI  Legal Liability
Chapter VII  Supplementary Provisions

(Promulgated by Decree No.73 of the State Council of the People’s

Republic of China on January 4, 1991, effective on February 1, 1991)
(Editor’s Note: This Regulations has been annulled by REGULATIONS FOR THE
MPLEMENTATION OF THE LAND ADMINISTRATION LAW OF THE PEOPLE’S REPUBLIC OF
CHINA promulgated on December 27, 1998, and effective as of January 1, 1999)
Chapter I  General Provisions

Article 1 These Regulations are formulated according to the provisions
of Article 56 of the Land Administration Law of the People’s Republic of
China (hereinafter referred to as the Land Administration Law).

Article 2 The State Land Administration shall be responsible for the
uniform administration of land throughout China.
Chapter II Land Ownership Rights and Land Use Rights

Article 3 The whole people, that is the state, shall hold post_title to the
following types of land:

(1) land in urban areas;

(2) land in rural and suburban areas which has been legally expropriated,
occupied, requisitioned, requisitioned by purchase or returned to the state
(except land legally designated or confirmed as collectively owned land); and

(3) forest areas, grassland, mountain ridges, wasteland, beaches, river
banks and other land not confirmed by the state as being collectively owned.

Article 4 A party with post_title to collectively owned land or a party using
state-owned land must submit a land registration application to the land
administration department of its local people’s government at county level or
above.

Registration of collectively owned land shall be carried out by the local
people’s governments at county level. After verification, a certificate of
post_title to collectively owned land shall be issued confirming right of
ownership.

Registration of state-owned land used by a unit or individual shall be
carried out by the local people’s governments at county level or above. After
verification, a land use certificate for state-owned land shall be issued
confirming right of usage.

The format of land certificates shall be uniformly formulated by the
State Land Administration.

Confirmation of ownership of or the right to use forest or grassland
areas or the right to use waters and their banks or beaches for aquatic
breeding purposes shall be handled in accordance with the relevant provisions
of the Forest Law, Grasslands Law and Fisheries Law respectively.

Article 5 Local people’s governments at county level or above shall
register state-owned land which has yet to be developed or used and shall be
responsible for its protection and management.

Article 6 If an amendment is legally made to land ownership or land use
rights or if land use rights are assigned as the result of the legal purchase
and sale or assignment of buildings, attachments, etc., on the land, an
application to register an amendment of the land ownership or land use rights
must be submitted to the land administration department of the local people’s
government at county level or above and the local people’s government at
county level or above shall replace the land certificate.

When buildings or attachments on land are legally purchased, sold or
assigned, procedures to register transfer of ownership shall be carried out
pursuant to relevant state regulations.

Article 7 If a land user’s rights are withdrawn in accordance with the
provisions of Article 19 of the Land Administration Law, the land
administration department shall report the matter to the people’s government
at county level or above for approval to cancel the land user’s land use
certificate for state-owned land. The land administration department shall
also carry out procedures for canceling land registration.

Article 8 Disputes between units owned by the whole people, between units
with collective ownership or between units owned by the whole people and those
with collective ownership, over the ownership of or the right to use land
shall be settled by the people’s government at county level or above in the
locality of the land.

Disputes between individuals or between individuals and units owned by the
whole people or units with collective ownership, over the right to use land
shall be settled by the people’s government at township or county level in the
locality of the land.

If a dispute over land ownership or land use rights necessitates the
reconfirmation of land ownership or land use rights, the local people’s
government at county level or above shall confirm the ownership or usage
rights and issue a land certificate.
Chapter III Utilization and Protection of Land

Article 9 The state shall establish a land survey system, the content of
which shall include surveying the possession of land rights, land use
circumstances and land conditions.

The State Land Administration, in conjunction with other relevant
authorities, shall formulate a national land survey plan for implementation
subject to approval of the State Council.

Land administration departments of local people’s governments at county
level and above shall, in conjunction with other relevant authorities,
formulate their local land survey plans. These plans shall be implemented
after submitted to and approved by the people’s governments at the same level
and reported for the record to the land administration departments of
people’s governments at the next higher level.

Land administration departments of local people’s governments at county
level and above shall organize relevant authorities to carry out land surveys.
Landowners and land users shall co-operate with such surveys and provide
necessary information.

Article 10 Land administration departments of local people’s governments
at county level and above shall, in conjunction with relevant authorities,
evaluate the grading of land pursuant to land survey results.

Article 11 The state shall establish a land statistics system. Land
administration departments of local people’s governments at county level and
above shall, in conjunction with statistics authorities, undertake land
statistics work pursuant to the law. Statistics personnel shall exercise their
authority to gather land-related statistics in accordance with the law.
Landowners and land users shall provide statistical information and shall be
prohibited from making false reports, concealing the truth, refusing to
provide or delaying the provision of information or falsifying or distorting
information.

Article 12 The State Land Administration, in conjunction with relevant
authorities, shall draft national overall land utilization plans which, after
comprehensive balancing by the State Planning Commission, shall be implemented
subject to approval by the State Council.

Land administration departments of local people’s governments at county
level and above shall, in conjunction with relevant authorities, draft overall
land utilization plans for their respective levels which, after comprehensive
balancing by planning authorities at the same level, shall be submitted to
the people’s governments at the same level for examination and approval. Such
plans shall be implemented subject to further approval by people’s governments
at the next higher level.

People’s governments at township level shall draft their overall land
utilization plans which shall be implemented subject to approval by the county
level people’s governments.

Any amendments to approved overall land utilization plans must be
submitted to the original approving organ for approval.

Article 13 For developing state-owned barren hills, wasteland, river
banks or beaches, an application must be submitted to the local land
administration department. Approval shall be granted by the local people’s
government at county level or above pursuant to the approval jurisdiction
stipulated by the province, autonomous region or municipality directly under
the central government. Should the law or regulations stipulate otherwise,
matters shall be handled pursuant to the provisions of the law or regulations.
If developing between 10,000 and 20,000 mu of land at one time, approval must
be obtained from the State Land Administration. If developing more than 20,000
mu of land at one time, approval must be obtained from the State Council.

Article 14 A unit or individual proposing to change cultivated land into
non-cultivated land must obtain approval from the local people’s government
at county level or above.

Article 15 Land which a unit or individual has contracted to operate and
private plots or hills legally confirmed as being for private use by an
individual must be used pursuant to the stipulated usage. The unauthorized
construction of buildings, kilns or tombs, mining, quarrying or the excavation
of sand or earth shall be prohibited.

A unit or individual proposing to engage in business activities such as
mining, quarrying or the excavation of sand or earth on the land as referred
to in the preceding paragraph must submit an application to the land
administration department of the local people’s government at county level or
above and obtain approval from the people’s government at county level or
above. Should the law or regulations stipulate otherwise, matters shall be
handled pursuant to the provisions of the law or regulations.

Article 16 A unit or individual using land capable of reclamation
following mining or the excavation of sand or earth shall be responsible for
its reclamation pursuant to the provisions of the Land Reclamation Regulations
promulgated by the State Council. Land administration departments of people’s
governments at county level or above shall, in conjunction with relevant
authorities, inspect the reclamation work before issuing approval.
Chapter IV Land for State Construction

Article 17 Land used by the state for economic and cultural development,
national defense construction and public welfare undertakings shall be used
economically and rationally. When submitting a construction project design
assignment for approval, the opinion of the local land administration
department must be attached.

Article 18 Examination and approval procedures for the use of land in
state construction:

(1) A construction unit proposing to use land for construction purposes
shall apply to the land administration department of the local people’s
government at county level or above in the locality of the land it wants to
expropriate by presenting an approved design assignment or other relevant
documents such as preliminary designs or annual capital construction plans.

(2) The land administration department of the local people’s government
at county level or above shall examine the application to use land for
construction purposes and determine the boundaries of the area of land to be
used, as well as arrange for the construction unit, the unit which originally
held the rights to the land and other relevant units to discuss matters of
compensation and resettlement in relation to the expropriated land and report
these details to the people’s government at county level or above for
approval.

(3) After the application to use land for construction purposes is
approved by the relevant people’s government at county level or above pursuant
to the statutory approval jurisdiction, the people’s government at county
level or above in the locality of the expropriated land shall issue a document
of approval to use the land for construction purposes and the land
administration department shall transfer the land use rights in full or in
stages, depending on the construction schedule.

(4) After completion of construction, when the department in charge of the
construction project arranges for the relevant authorities to examine
construction prior to acceptance of the project, the land administration
department of the people’s government at county level or above shall inspect
and verify the actual use of the land (after completion of a construction
project in an urban planning district, the administrative authority in charge
of urban planning shall, in conjunction with the land administration
department, inspect and verify the actual use of the land) and, subject to
confirmation, land registration procedures shall be carried out pursuant to
the relevant provisions of Chapter II of these Regulations and a land use
certificate for state-owned land shall be issued.

If applying to use land within an urban planning district for construction
purposes, the construction unit or individual shall handle matters pursuant to
the procedures stipulated above after obtaining a planning permit to use land
for construction purposes.

Article 19 When land is to be used for construction projects such as
railways, highways or oil or water supply pipelines, an application for
approval, depending on the construction project’s overall plans, shall be
submitted in one lump, but procedures for expropriating and transferring land
may be done in stages. In the case of a construction project which is to
proceed in stages, applications for approval and procedures for expropriating
and transferring land may be done in stages in accordance with the work
schedule determined in the design assignment.

Article 20 If emergency or disaster relief measures necessitate the
urgent use of land, the land may be used first, but, after the incident,
supplementary procedures for the temporary use of land or procedures for the
expropriation and transfer of land must be carried out pursuant to
regulations.

Article 21 “Other land with an area of more than 2,000 mu” as mentioned
in paragraph 1 of Article 25 of the Land Administration Law shall include
construction projects which simultaneously require the expropriation of less
than 1,000 mu of cultivated land, together with other land in excess of 1,000
mu, amounting to a total land area of more than 2,000 mu.

“Other land with an area of less than ten mu” as mentioned in paragraph 2
of Article 25 of the Land Administration Law shall include construction
projects which simultaneously require the expropriation of less than 3 mu of
cultivated land, together with other land of less than 10 mu, amounting to a
total land area of more than 3 mu and less than 10 mu.

Article 22 If a land user’s right to use state-owned land is withdrawn in
accordance with the provisions of Article 19 of the Land Administration Law,
the local people’s government at county level or above may decide to issue the
land to an agricultural collective economic entity to cultivate. During the
cultivation period, the agricultural collective economic entity shall be
prohibited from building any permanent structures or planting perennial crops
on the land and shall be required to return the land on schedule pursuant to
state construction requirements. If there are young crops on the land at the
time of its return, the relevant construction unit shall pay compensation.

Article 23 If construction requirements make it necessary for a
construction unit to temporarily expropriate additional land outside its
approved land use limits, an application for temporary use of land shall be
submitted to the land administration department of the local people’s
government at county level and the details reported to the people’s government
at the same level for approval. If temporary use of additional land is
required within an urban planning district, a set area application shall be
submitted first to the administrative authority in charge of urban planning
and, subject to examination and approval, an application for temporary use of
land shall be submitted to the land administration department.

If collectively owned land is required for temporary use, compensation
shall be paid in accordance with the provisions of paragraph 1 of Article 33
of the Land Administration Law.
Chapter V Land for Township(Town) and Village Construction

Article 24 There shall be strict control over the use of agricultural
land for township(town) and village construction. The overfilling of control
quotas for the use of land in township(town) and village construction issued
by local people’s governments at county level or above shall be prohibited.

Article 25 When land is required for rural residential buildings, a land
use application shall be submitted first to the village agricultural
collective economic entity or villagers’ committee and, subject to it being
discussed and approved by the villagers’ representative meeting or general
meeting, the application shall be submitted to the people’s government for
approval. The use of cultivated land shall be subject to approval by the
county level people’s government, following its examination and approval by
the township level people’s government and land administration department of
the county level people’s government. The use of existing residential
building sites, empty space within villages and other land shall be subject
to approval by the township level people’s government.

Article 26 If use of collectively owned land is required for constructing
residential buildings for city or town residents with non-agricultural
resident registration, a land use application shall, after its approval by the
applicant’s working unit or residents’ committee, be submitted to the village
agricultural collective economic entity, villagers’ committee or township
(town) peasant collective economic entity in the locality of the land. If the
land required for use belongs to a village peasant collective, subject to the
land use application being discussed and approved by the villagers’
representative meeting or general meeting and its examination and approval by
the township(town) people’s government, it shall be submitted to the county
level people’s government for approval. If the land required for use belongs
to a township(town) peasant collective, subject to the land use application
being discussed and approved by the township(town) peasant collective economic
entity and its examination and approval by the township(town) people’s
government, it shall be submitted to the county level people’s government for
approval.

Article 27 When workers, ex-servicemen or retired cadres returning to
their original villages or overseas Chinese, Hong Kong, Macao or Taiwan
compatriots returning to settle in their family villages require the use of
collectively owned land to construct residential building, matters shall be
handled pursuant to the provisions of Article 38 of the Land Administration
Law and Article 25 of these Regulations.

Article 28 If land is required to construct a rural market in accordance
with township(town) or village construction plans, matters shall be handled
pursuant to the provisions of Article 40 of the Land Administration Law.

Article 29 Non-agricultural production and operation activities by
leaseholding farm households and rural individual business shall use their
original residential sites. If there is a genuine need for the additional use
of collectively owned land, approval documents from the relevant authorities
shall be submitted, together with a land use application, to the village
peasant collective economic entity, villagers’ committee or township(town)
peasant collective economic entity in the locality of the land and, subject
to the application being discussed and approved by the villagers’
representative meeting or the township(town) peasant collective economic
entity, and its examination and approval by the township(town) people’s
government, it shall be submitted to the local people’s government at county
level or above for approval, pursuant to the approval jurisdiction stipulated
by the relevant province, autonomous region or municipality directly under the
central government.
Chapter VI Legal Liability

Article 30 Pursuant to the provisions of Articles 43 and 44 of the Land
Administration Law, in addition to ordering a violator to return illegally
occupied land and stipulating a limited period within which structures and
other installations newly erected on the land are to be demolished or
confiscated, a fine shall(may) also be imposed. The standards for such a fine
shall be up to 15 yuan for each square meter of illegally occupied land.

Article 31 Pursuant to the provisions of Article 47 of the Land
Administration Law, in addition to confiscating illegal proceeds from a
violator and stipulating a limited period within which structures and other
installations newly erected on land purchased, sold or assigned by illegal
means are to be demolished or confiscated, a fine may also be imposed. The
standards for such a fine shall be up to 50% of the illegal proceeds
involved.

Article 32 Pursuant to the provisions of Article 49 of the Land
Administration Law, in addition to ordering a violator to return funds
illegally seized, a fine may also be imposed. The standards for such a fine
shall be up to 30% of the funds illegally seized.

Article 33 Pursuant to the provisions of Article 50 of the Land
Administration Law, in addition to ordering a violator to return the land, a
fine shall also be imposed. The standards for such a fine shall be up to 5
yuan for each square meter of illegally used land.

Article 34 Pursuant to the provisions of Article 51 of the Land
Administration Law, if serious damage is caused to the cultivation conditions
of soil, in addition to ordering a violator to rectify the situation within
a limited period, a fine may also be imposed. The standards for such a fine
shall be determined in accordance with the provisions of legislation on the
protection of cultivated land. If soil desertification or salinization is
caused as the result of land development, in addition to ordering a violator
to rectify the situation within a limited period, a fine may also be imposed.
The standards for such a fine shall be determined in accordance with
standards stipulated by the people’s government of the relevant province,
autonomous region or municipality directly under the central government. If
soil erosion is caused as the result of land development, in addition to
ordering a violator to rectify the situation within a limited period, a fine
may also be imposed. The standards for such a fine shall be determined in
accordance with the provisions of legislation on water and soil conservation.

Article 35 Fines must be paid within the stipulated period. In the event
of failure to pay on schedule, a late payment fine of 0.3% of the fine shall
be collected for each day in arrears.

Penalty fines and late payment fines shall be handed over to the state
treasury in accordance with relevant state regulations.

Article 36 If land is occupied illegally without approval or by gaining
approval fraudulently through such means as leaving arable land lie fallow,
in order to construct residential buildings or to undertake other
construction projects, a limited period shall be stipulated within which
buildings and other facilities newly erected on the illegally occupied land
must be demolished or confiscated and the return of the illegally occupied
land shall be ordered.

If a unit or individual ordered to demolish newly erected buildings and
other facilities within limited period pursuant to the law, continues
construction, the penalty issuing authority shall have the right to seal up
and confiscate equipment and building materials which continue to be used.

Article 37 In the event of false reporting, concealing the truth in a
report, refusing to submit a report or repeatedly delaying submission of a
report, as well as falsifying or distorting statistical information in
relation to land, penalty shall be imposed in accordance with the provisions
of Article 25 of the Statistics Law of the People’s Republic of China and
Article 31 of the Rules for Implementation of the Statistics Law of the
People’s Republic of China.

Article 38 If a land ownership or land use right infringing party fails
to initiate legal proceedings or to fulfill the penalty decision within the
stipulated period after a penalty decision made by the land administration
department of the local people’s government at county level or above pursuant
to the provisions of Article 53 of the Land Administration Law, the infringed
party may apply to the people’s court for enforcement.
Chapter VII Supplementary Provisions

Article 39 The State Land Administration shall be responsible for
interpreting these Regulations.

Article 40 These Regulations shall enter into force on February 1, 1991.

RULES FOR THE IMPLEMENTATION OF THE POSTAL LAW

Category	POSTS AND TELECOMMUNICATIONS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1990-11-12	Effective Date	1990-11-12

Rules for the Implementation of the Postal Law of the People’s Republic of China

Chapter I  General Provisions
Chapter II  The Establishment of Postal Enterprises and Postal
Chapter III  Categories of Postal Business
Chapter IV  Postal Rates of Postal Services and Postage Certificates
Chapter V  The Posting and Delivery of Postal Materials and the
Chapter VI  The Transportation, Customs Examination and Quarantine
Chapter Vll  Penalty Provisions
Chapter VIII  Supplementary Provisions

(Promulgated by Decree No. 65 of the State Council of the People’s

Republic of China on November 12, 1990, and effective as of the date of
promulgation)
Chapter I  General Provisions

Article 1 These Rules are formulated in accordance with the Postal Law of
the People’s Republic of China (hereinafter referred to as the Postal Law).

Article 2 The Ministry of Post and Telecommunications of the People’s
Republic of China (hereinafter referred to as the Ministry of Post and
Telecommunications) shall be the competent department of postal services under
the State Council and shall administer postal services throughout the country.

The administrative bureaus of post and telecommunications of various
provinces, autonomous regions, and municipalities directly under the Central
Government (hereinafter referred to as the administrative bureaus of post and
telecommunications) shall be the regional administrative organs of postal
services, which shall administer postal services of respective regions.

Article 3 The municipality or county bureaus of post and
telecommunications (including the post offices, – the same below) shall be
public enterprises owned by the whole people that operate postal business
(hereinafter referred to as “Postal enterprises”), and, after being
authorized by the administrative bureaus of post and telecommunications, shall
be responsible for the administration of postal services of the respective
localities.

The branch post and telecommunications bureaus, the post and
telecommunications offices, the branch post bureaus, and the postal offices
shall be the branch offices that handle postal business (hereinafter referred
to as “the branch office”); the postal kiosks and newspaper and periodical
stands shall be the service points of postal enterprises.

The post and telecommunications agencies shall be considered as branch
offices of postal enterprises.

Article 4 Without the entrustment by the postal enterprises, no unit or
individual may operate posting and delivery of letters, postcards or other
articles with characteristics of mail, except as otherwise provided by the
State Council.

The letters refer to those carriers which transmit information by using
sealed envelopes. The other articles with characteristics of mail refer to
those carriers which transmit information by using such forms as symbols,
images, or sounds. The specific contents thereof shall be stipulated by the
Ministry of Post and Telecommunications.

Article 5 In case that a postal enterprise entrusts other units or
individuals with the handling of postal business, they shall reach an
agreement through consultation and sign entrustment contracts.

Article 6 All units and individuals that make use of the postal services
of China shall be generally called postal users (hereinafter referred to as
users).

Article 7 A postal enterprise shall provide users with fast, accurate,
safe and convenient postal services, and protect the lawful rights and
interests of users in making use of postal services.

Any unit or individual shall have the obligations to protect freedom and
privacy of correspondence, and the safety of postal materials; no unit or
individual may use postal services for activities forbidden by laws,
regulations and policies.

In the course of transportation and delivery of postal materials, no unit
or individual shall inspect or detain the postal materials under any pretext,
except when the inspectation of correspondence according to law by public
security organs, state security organs, or procuratorial organs is necessary
for the state security or the investigation of criminal offences.

Article 8 In the event that a public security organ, a state security
organ, or a procuratorial organ inspects or detains postal materials or
freezes remittances or savings deposits out of the necessity for the state
security or the investigation of a criminal offence, it is imperative for the
aforesaid organs to issue according to law notifications of the relevant
inspection, detention, or freezing to the postal enterprise or the
administrative bureau of post and telecommunications concerned at or above the
county level, and to make out a list of the specific items of postal
materials, remittances, or savings deposits; after going through the
procedures for inspection, detention or freezing, the postal enterprise shall
appoint specially-designated persons to be responsible for sorting out the
items in question, register them one by one, and then go through the hand-over
procedures; with respect to those postal materials, remittances or savings
deposits which need no further inspection, detention or freezing, or which
have been proved through investigation to have nothing to do with the case
concerned, they shall be returned to the postal enterprise without delay. In
case that in the course of inspection, detention or freezing the postal
materials, remittances or savings deposits are lost or damaged, the relevant
public security, state security, or procuratorial organ shall be responsible
for compensation.

Article 9 In case that a people’s court, or a procuratorial organ
confiscates domestic postal materials, remittances or savings deposits, it
must present relevant legal documents, and go through the relevant procedures
with the postal enterprise and administrative bureau of post and
telecommunications at or above the county level. The decision on the
confiscation of incoming or outgoing international postal articles shall be
made by the Customs, which shall also complete the relevant procedures.

Article 10 In case that a unit concerned has the necessity to collect or
obtain evidence or consult the postal business archives, according to law,
it must obtain a written certificate issued by the public security organ, the
state security organ, the procuratorial organ, or the people’s court, in the
place where the postal enterprise concerned is 1ocated, make a list of the
specific items of postal materials, and then go through the relevant
procedures with the postal enterprise and the administrative bureau of post
and telecommunications at or above the county level.

Article 11 No unit or individual may commit the following acts that
hamper the normal operations of postal services:

(1) to damage postal installations;

(2) to set up stalls or to stack up things in front of the entrance to, or
in the in-and-out passage ways of postal enterprises or their branch offices,
thereby hampering users to make use of postal services or blocking the passage
of postal vehicles;

(3) to make trouble willfully or disturb the normal order at the sites
where postal business is conducted;

(4) to hamper postal staff from executing their duties according to law,
or to seek a quarrel;

(5) to intercept postal means of transport, to hamper illegally the
transportation and delivery of postal materials, or force their way to get on
postal means of transport;

(6) to inspect or detain postal materials illegally;

(7) to commit other acts that hamper the postal enterprises or their
branch offices or postal staff from performing their normal work.
Chapter II The Establishment of Postal Enterprises and Postal
Installations

Article 12 The standards for the establishment of postal enterprises and
their branch offices shall be stipulated by the Ministry of Post and
Telecommnunications; the establishment and abolition of post enterprises shall
be approved by the Ministry of Post and Telecommunications; the establishment
and abolition of branch offices shall be approved by the administrative
bureaus of post and telecommunications and be reported to the Ministry of Post
and Telecommunications for the record.

Article 13 The local people’s governments at various levels shall
incorporate the establishment of postal enterprises and their branch offices
as well as the construction of various postal installations into their urban
and rural construction plans.

Article 14 While constructing new districts in cities, isolated
industrial and mining areas and residential districts, as well as transforming
large expanse of old urban districts, the planning and establishment of the
matching postal enterprises and their branch offices as well as the various
postal installations shall be carried out simultaneously.

Article 15 When postal enterprises establish postal kiosks, newspaper and
periodical stands, pillar boxes, mail boxes or conduct mobile services
according to law, the units and individuals concerned shall provide
conveniences.

Article 16 Letter and newspaper boxes for receiving postal materials are
the matching facilities in residential buildings, and designing units shall
include them in the standard designs of the construction of residential
buildings.

Every construction unit of a residential building shall be installed, on
the ground floor, with letter and newspaper boxes corresponding to the room
numbers of the residents; or letter and newspaper boxes shall be installed in
a place or room with easy access in the midst of buildings, for the residents
to receive postal materials.

The property right owners of residential buildings, or the administrative
units shall be responsible for the maintenance and change of letter and
newspaper boxes; the maintenance and change of letter and newspaper boxes may
also entrusted to the local postal enterprises or their branch offices, and
the expenses necessary for labour and materials shall be paid by the
entrusting units.

Article 17 Places for handling postal business, conveniently accessible
to passengers, shall be provided in relatively larger railway stations,
airports, ports and hotels; the postal enterprises shall provide various
postal services.

Article 18 Any unit that, for the needs of construction, requisitions,
demolishes or removes a postal enterprise and its branch offices or the postal
installations shall consult with the local postal enterprise; and, under the
condition that the normal operations of postal correspondence are guaranteed,
the said unit shall remove the postal enterprise and its branch offices as
well as the postal installations to a proper place, or rebuild them, and the
expenses thus entailed shall be borne by the unit that conducts the
requisition, demolition and removing.
Chapter III Categories of Postal Business

Article 19 Postal enterprises shall handle the posting and delivery of
domestic and international postal materials as well as the express delivery of
postal materials.

Domestic postal materials refer to the postal materials exchanged within
the territory of the People’s Republic of China; those posted to or from the
regions of Hong Kong, Macao, and Taiwan are called postal materials of the
regions of Hong Kong, Macao and Taiwan; international postal materials refer
to the postal materials exchanged between the People’s Republic of China and
other countries or regions, and postal materials transmitted by way of the
territory of China.

Article 20 Distribution business of domestic newspapers and magazines
refers to the business of distributing newspapers and magazines entrusted by
newspaper and magazine offices to the postal enterprises.

Article 21 When newspaper and magazine offices entrust the postal
enterprises with the distribution of newspapers and magazines, they shall, in
accordance with the scope of the distribution of newspapers and magazines,
present to the appointed postal enterprises or the bureaus for distribution of
postal newspapers and magazines, certifications of having obtanied the
approval for publication by the competent department concerned and the
registration certificate for newspapers and periodicals. The postal
enterprises, which have the capacity for handling distribution business, shall
sign contracts for the distribution of newspapers and magazines with the
newspaper and magazine offices concerned in accordancc with the pertinent
provisions of the State, and in conformity with the principles of equality and
mutual benefit, of achieving unanimity through consultation, and of equal
prices and non-gratuitousness.

Article 22 Postal savings and postal remittances, which are financial
businesses handled by postal enterprises for the purpose of accumulating funds
for the State and facilitating economic transactions, shall be under the
unified administration of the Ministry of Post and Telecommunications and
shall, in accordance with the pertinent provisions of the State, accept the
guidance of the People’s Bank of China in financial businesses. All relevant
banks shall provide conveniences for the businesses of postal savings and
postal remittances conducted by the postal enterprises.

Article 23 The specific categories of postal businesses and the
classification of postal materials shall be stipulated by the Ministry of Post
and Telecommunications.
Chapter IV Postal Rates of Postal Services and Postage Certificates

Article 24 The basic postal rates of postal services refer to the postal
rates for the domestic ordinary letters and postcards; the non-basic postal
rates refer to the postal rates of postal services other than the basic postal
rates.

The basic postal rates of postal services shall be stipulated by the
competent department for the administration of commodity prices under thc
State Council, and then be submitted to the State Council for approval; the
non-basic postal rates shall be stipulated by the Ministry of Post and
Telecommunications.

Article 25 The basis for the formulation and adjustment of postal rates
of postal services shall be follows:

(1) to meet the social needs, on the condition that the cost expenses of
enterprises of postal correspondence and their capacity for development are
guaranteed;

(2) to adjust postal rates of domestic postal services in the light of the
changes in defrayment;

(3) to adjust postal rates of international postal sevices in accordance
with the provisions of the Universal Postal Union, the international and
domestic cost expenses, and the changes in exchange rates for Renminbi (RMB).

Article 26 Postage certificates issued by the Ministry of Post and
Telecommunications and used as securities indicating that the charges or fees
for postal materials have already been paid shall include postage stamps, the
postage stamp patterns printed on stamped envelopes, stamped postcards,
stamped aerograms, and the “postage-paid” marking printed with a checking
machine.

Article 27 The international reply-coupons issued by the Universal Postal
Union may, in accordance with the international unified provisions, be
converted into postage stamps equal to a specific category of postal rates for
a specific class of weight; however, such international reply-coupons shall
not be converted into cash.

Article 28 Where the making of facsimiles of stamp patterns is
necessitated by work, it must be submitted, in accordance with the pertinent
provisions for the making of facsimiles of postage stamp patterns, to the
competent department for postage stamps under the Ministry of Post and
Telecommunications, or to the administrative bureau of post and
telecommunications concerned, for examination and approval.

No printing unit may undertake the printing of unapproved facsimiles of
stamp patterns or matters similar to postage stamps.

Article 29 Envelopes to be printed for use in correspondence must conform
to the standards stipulated by the State, and the printing of such envelopes
shall be supervised by the local administrative bureaus of post and
telecommunications.

Article 30 Postcards to be printed must conform with the specification
standards stipulated by the Ministry of Post and Telecommunications.

Postal enterprises at or above the county level may, with the approval of
the administrative bureaus of post and telecommunications, print and
distribute postcards with the inscription: “The People’s Postal Service of
China” printed on them; if the printing of postcards is conducted by other
units, the printing operation shall be under the supervision of the local
administative bureaus of post and telecommunications, but the postcards shall
not carry the inscription “The People’s Postal Service of China”.
Chapter V The Posting and Delivery of Postal Materials and the
Compensation for Losses

Article 31 Ordinary letters to be sent by compulsory service-men from
places where they are stationed shall be posted and delivered free of charge,
but other armymen shall not post letters free of charge. Measures for the
administration of affairs concerning the posting and delivery of ordinary
letters by compulsory service-men shall be formulated by the Ministry of Post
and Telecommunications in conjunction with the department concerned of the
Chinese People’s Liberation Army.

Article 32 Users shall, in handling in or posting postal materials,
comply with the provisions stipulated by the Ministry of Post and
Telecommunications concerning the contents of postal materials, the
specifications for packaging and sealing, the writing forms, and the correct
writing of postcodes; especially the envelopes used by users for letters to be
posted must meet the standards stipulated by the State; the surface or cover
of postal materials and also the vouchers of postal services shall not be
printed (written) or stuck with any words or any other objects which have
nothing to do with the postal materials; the facade of postage certificates
shall not be smeared, or covered with any other objects; no forged,
facsimiled, cut and pieced together, or processed for decontamination postal
certificates may be used.

Article 33 It shall be forbidden to post and deliver or to insert in
postal materials the following objects:

(1) articles forbidden by law to be put in circulation or to be posted and
delivered;

(2) reactionary newspapers, magazines, and propaganda materials, or
pornographic articles;

(3) explosive, combustible, corrosive, radioactive, poisonous, or any
other dangerous articles;

(4) articles that are harmful to public sanitation;

(5) perishables;

(6) various species of live animals;

(7) various currencies;

(8) articles that are not fit for delivery by post;

(9) articles that are not properly packed so that they might jeopardize
personal safety, or contaminate or damage other postal materials or equipment.

The articles mentioned in the preceding paragraph, which meet the
provisions of the Ministry of Post and Telecommunications for delivery with
special approval, may be accepted and posted on the condition that safety is
guaranteed.

Article 34 Articles to be posted and delivered in the country with
restricted quantities shall be stipulated by the Ministry of Post and
Telecommunications in conjunction with the departments concerned under the
State Council.

Article 35 With respect to articles posted or delivered in violation of
the pertinent provisions for forbidding or restricting their posting and
delivery, the postal enterprises or their branch offices shall, in accordance
with their categories, natures, or quantities, handle them respectively in the
following ways:

(1) to withdraw the articles in question from delivery;

(2) to notify the sender to take back the articles within a prescribed
period of time, and, if the sender fails to do so when the prescribed time
limit expires, the said articles shall be disposed of right on the spot;

(3) to transfer the articles to the department concerned to be disposed of
according to law;

(4) with respect to articles which have jeopardized personal safety, or
have contaminated or damaged other postal materials, the sender shall hold the
liability for compensation.

The expenses entailed from the handling of the cases mentioned in items
(2) and (3) in the preceding paragraph shall be borne by the sender.

Article 36 With respect to newly-established enterprises or institutions,
or newly-built residential buildings, the units concerned or the competent
departments of residential buildings shall go through the registration
procedures for the delivery of postal materials with the local postal
enterprises or their branch offices; in the event that a unit is to change its
name, or a recipient is to change his/her address, it/he/she shall notify the
local postal enterprise or its branch office of the change in advance, or go
through the procedures for the change to a new address of the recipient. The
postal enterprise shall make known to the public the place for registration
and the telephone number.

The postal enterprises concerned or their branch offices shall permit
units or individuals with following the conditions to go through the
procedures for registration, and shall within 90 days from the date of
registration, make arrangements for delivery:

(1) possessing the conditions for passage of postal vehicles and postal
staff to execute their duties;

(2) having the house numbers arranged in a unified way by the public
security organs;

(3) having installed letter and newspaper boxes or having set up offices
for incoming and outgoing mail; or

(4) having completed due formalities where procedures for registration of
both the Chinese and foreign names are required according to relevant
regulations.

Article 37 Postal materials shall be delivered in the following ways,
except as otherwise provided by the Ministry of Post and Telecommunications:

(1) delivery by address:

Postal materials of urban and rural residents shall be delivered in
accordance with the addresses of the recipients to the mailboxes or to the
offices for incoming and outgoing mail installed at the entrances to the
courtyards of single-storey houses or on the ground floors of the storeyed
buildings. Postal materials of units, of the affiliated institutions to the
units and individuals of the units, as well as of users living in the
dormitories within the courtyards shall be delivered to the offices for
incoming and outgoing mail of the units. The office for incoming and outgoing
mail shall be set up on the ground floor of storeyed building; if two or more
separate units share a same place, they shall decide through consultation on a
single site for receiving postal materials in a unified way. If it is necessary
to deliver postal materials and newspapers and magazines upstairs, the users
shall consult with the postal enterprise concerned or its branch office, and,
in accordance with pertinent provisions, pay charges for such special services.

Postal materials of the rural and pastoral areas shall, in the light of
specific conditions of communications and the quantities of postal materials,
be delivered generally to a fixed place at a township or an administrative
village; with respect to postal materials of places under a township or an
administrative village, the people’s government of the township or the
villagers committee shall consult with the postal enterprise concerned or its
branch office to find a proper way of delivering postal materials to the
recipients.

Postal materials to be delivered to vessels shall be delivered to the
office for incoming and outgoing mail of a department to which the said
vessels are subordinate.

(2) collection by users:

Postal materials that must be collected by going through the procedures
with the postal enterprise or its branch office by presenting the written
notice for receiving them, postal materials addressed to the number of a post
office box (a mailbox used exclusively by a particular user), postal materials
deposited at the post office for collection, postal materials which have
exceeded the prescribed weight for delivery by address and postal materials in
a large quantity shall be collected by users.

Article 38 In case that recipients receive vouchered postal materials, or
remittees receive remittances, they shall present their valid certifying
documents to the postal enterprise concerned or to its branch office, and
shall also affix their seals to, or sign their names on, the relevant vouchers.

In case that an acting recipient is entrusted, by a recipient (or by a
remittee), with the receiving of vouchered postal materials (or remittances),
the said acting recipient shall present the valid certifying documents of the
recipient (or the remittee) and of the acting recipient; and, after the postal
enterprise, or its branch office, has verified and confirmed the documents,
the acting recipient shall receive the postal materials (or remittances) by
affixing his/her seal to, or signing his/her name on, the relevant voucher.

The valid certifying documents shall include the resident’s identification
card, the residence booklet, and the employee’s card.

Article 39 In the event that a recipient, in receiving vouchered postal
materials, has discovered that the wrapper (of postal materials) has been torn
or damaged, he/she shall announce this on the spot and check the contents. If
the shortage or danmage of the contents has been definitely caused by the
negligence of the postal enterprise or its branch office, or if the negligence
of the postal enterprise or its branch office has caused the loss or damage of
vouchered postal materials, the postal enterprise or its branch office shall
make compensation in accordance with the pertinent provisions. In the event
that the loss, damage of postal matters or shortage of contents has resulted
from the fault of the personnel in charge of the incoming and outgoing mail in
the recipient’s work unit, such personnel shall hold the prescribed liability
for compensation.

The specific requirements for the transportation and delivery of postal
materials shall be stipulated by the Ministry of Post and Telecommunications,
and shall be made known to the public. If the transportation and delivery of
postal materials have violated the provisions formulated by the Ministry of
Post and Telecommunications, the postal enterprise or its branch office
concerned shall make compensations to the users; and the specific measures
for making the compensation shall be stipulated by the Ministry of Post and
Telecommunications.

Article 40&nb

REGULATIONS OF THE CHINESE PEOPLE’S LIBERATION ARMY ON THE MILITARY SERVECE OF OFFICERS IN ACTIVE SERVICE

Regulations of the Chinese People’s Liberation Army on the Military Servece of Officers in Active Service

CHAPTER I GENERAL PROVISIONS

CHAPTER II BASIC REQUIREMENTS FOR OFFICERS IN ACTIVE SERVICE AND THEIR TRAINING

CHAPTER III APPRAISAL OF OFFICERS IN ACTIVE SERVICE AND THEIR APPOINTMENT AND REMOVAL

CHAPTER IV AWARDS AND PENALTIES FOR OFFICERS IN ACTIVE SERVICE

CHAPTER V MATERIAL AND OTHER BENEFITS FOR OFFICERS IN ACTIVE SERVICE

CHAPTER VI OFFICERS’ RETIREMENT FROM ACTIVE SERVICE

CHAPTER VII SUPPLEMENTARY PROVISIONS

Article 1 The present Regulations are formulated for the purpose of building a contingent of revolutionary, younger, better educated and professional
officers to facilitate the People’s Liberation Army’s fulfilment of the tasks assigned by the State.

Article 2 Officers in active service in the People’s Liberation Army are servicemen who hold posts at or above the level of platoon leader
or specialized technical posts at or above the junior level and who have been granted military ranks at corresponding levels.

By the nature of the posts they hold, officers are classified as operational officers, political officers, logistics officers and
specialized technical officers.

Article 3 In selecting and using officers, the principles of appointing people on their merits, stressing both political integrity and professional
competence, attaching importance to actual performance and exchanging officers when appropriate must be adhered to, and democratic
supervision exercised.

Article 4 The State shall, on the principle of giving preferential treatment to servicemen, determine the various kinds of treatment for officers.

Article 5 Officers who meet the provisions for retiring from active service as specified in the present Regulations shall retire from active
service.

Article 6 The General Political Department of the People’s Liberation Army shall be responsible for managing the affairs concerning the officers
of the entire Army, while the political departments of units at or above the regimental level shall be responsible for managing the
affairs concerning the officers of their respective units.

CHAPTER II BASIC REQUIREMENTS FOR OFFICERS IN ACTIVE SERVICE AND THEIR

Article 7 Officers must meet the following basic requirements:

(1) being loyal to the motherland, serving the people wholeheartedly, and devoting themselves to the cause of national defence;

(2) observing the Constitution, laws and regulations, implementing State principles and policies and the Army’s rules and regulations,
and obeying orders and commands;

(3) possessing sufficient understanding of theories and policies, scientific, general and specialized knowledge, the ability to organize
and direct work, and good health-all needed for performing their duties; and

(4) cherishing the soldiers, being fair and upright, being honest and clean in performing public duties, working hard, and fearing
no sacrifice.

Article 8 The People’s Liberation Army shall apply a system whereby its members are promoted as officers only after they have received training
in academies or schools.

Operational, political and logistics officers who hold commanding posts at or below the battalion level shall be those trained in
academies or schools for junior commanders; officers who hold commanding posts at the regimental or divisional level shall be those
trained in academies or schools for intermediate commanders; and officers who hold commanding posts at or above the corps level shall
be those trained in academies or schools for senior commanders.

Officers who serve in offices shall be those trained in appropriate academies or schools.

Specialized technical officers shall be those trained in specialized technical academies or schools corresponding to their specialized
technical posts.

Outstanding soldiers may be promoted as officers after they have received training in academies or schools.

Article 9 When the number of officers trained in military academies or schools cannot meet the needs, in peacetime, outstanding soldiers selected
and trained in training institutions designated by the People’s Liberation Army’s general departments may be promoted to officers,
or civilian college graduates and other specialized technical personnel may be enrolled into the Army and commissioned as officers;
in wartime, officers may be appointed directly from among soldiers, officers called up from the reserve service and the personnel
of non-military departments.

CHAPTER III APPRAISAL OF OFFICERS IN ACTIVE SERVICE AND THEIR

Article 10 Leading cadres and political departments at various levels shall, in line with their division of responsibilities, appraise officers
governed by them.

The appraisal shall be conducted in a comprehensive way by the leaders together with the rank and file against the basic requirements
for officers and the criteria for the appraisal of officers formulated by the Central Military Commission, with stress on actual
performance. The results of the appraisal shall be taken as the main basis for appointing or removing officers.

The appointment and removal of officers shall be preceded by appraisals; no appointment or removal shall be made without an appraisal.

Article 11 The authority for the appointment and removal of officers is prescribed as follows:

(1) officers from the Chief of the General Staff and the Director of the General Political Department down to the division commander
shall be appointed or removed by the Chairman of the Central Military Commission;

(2) officers at the level of deputy division commander (or brigade commander) and the level of regiment commander (or deputy brigade
commander) and senior specialized technical officers shall be appointed or removed by the Chief of the General Staff, the Director
of the General Political Department, the Director and the Political Commissar of the General Logistics Department, the commanders
and political commissars of the major military commands and of the various services and arms, or the head(s) of units equivalent
to the major military commands; officers at the level of regiment commander (or deputy brigade commander) in units equivalent to
quasi major military commands shall be appointed or removed by the head(s) of those units;

(3) officers at the level of deputy regiment commander and the level of battalion commander and intermediate specialized technical
officers shall be appointed or removed by the commanders and political commissars of combined corps or the head(s) of units at the
corps level which have the power to make such appointments and removals; officers serving as battalion commanders in an independent
division shall be appointed or removed by the commander and political commissar of the independent division; and

(4) officers at or below the level of deputy battalion commander and junior specialized technical officers shall be appointed or removed
by the commander and political commissar of a division (or brigade) or the head(s) of a unit at the divisional (or brigade) level
which has the power to make such appointments and removals.

The appointment and removal of officers described in the preceding paragraph shall be conducted in accordance with the procedures
prescribed by the Central Military Commission.

Article 12 While emergency missions like battles or rescue or relief operations are being carried out, leading cadres at higher levels shall
have the power tentatively to remove officers on their staff who disobey orders, refuse to perform their duties or are incompetent,
and to assign other servicemen to take over their posts for the moment; when vacancies appear because of other reasons, they may
assign servicemen to fill in the vacancies tentatively.

The tentative removal of officers or assignment of servicement to replace them made in accordance with the provisions of the preceding
paragraph shall be reported as soon as possible to the higher authorities that have the power of appointment and removal for examination
and approval in order to complete the procedure for appointment or removal.

Article 13 The maximum age for operational, political and logistics officers in combat troops in peacetime shall be:

30 for officers at the platoon level;

35 for officers at the company level;

40 for officers at the battalion level;

45 for officers at the regimental level;

50 for officers at the divisional level;

55 for officers at the corps level; and

63 for officers at the level of deputy commander of the major military command and 65 for officers at the level of commander of the
major military command.

The maximum age for officers at the battalion or regimental level aboard naval vessels shall be 45 and 50 respectively.

The maximum age for a small number of the officers at the divisional or corps level in combat troops may be appropriately extended,
provided this is necessitated by work and approved by the authorities with the prescribed power for appointment and removal. However,
the maximum age extention for officers at the divisional level and at the level of corps commander shall not be more than five years
while the maximum age extention for officers at the level of deputy corps commander shall not be more than three years.

Article 14 The maximum age for officers at or below the regimental level in provincial military command (garrison command) systems, logistics
bases and their branch departments, academies and schools, and scientific and technological institutions shall be determined in accordance
with the provisions of the first paragraph of Article 13 of the present Regulations; the maximum age for officers at the divisional
level shall be extended to 55 and for officers at the level of deputy corps commander or corps commander shall be 8 and 60 respectively.

Article 15 The maximum age for officers at or below the battalion level in the offices of the various general departments and the offices of
the major military commands of the People’s Liberation Army shall be determined in accordance with the provisions of the first paragraph
of Article 13 of the present Regulations; the maximum age for officers at the divisional level shall be 55; the maximum age for officers
at the level of deputy corps commander or corps commander shall be 58 and 60 respectively. The maximum age for officers at the regimental
level in the offices of the general departments shall be 45 and may be extended for five years when necessitated by work; the maximum
age for officers at the regimental level in the offices of the major military commands shall be 45, and the maximum age for a small
number of such officers when necessitated by work may be extended for three years.

The maximum age for officers holding the principal leading posts in the general departments shall be determined separately by the
Standing Committee of the National People’s Congress.

Article 16 The maximum age for specialized technical officers in peacetime shall be:

40 for junior specialized technical officers;

48 for intermediate specialized technical officers; and

60 for senior specialized technical officers.

The maximum age for a small number of the intermediate and senior specialized technical officers may be appropriately extended for
no more than five years, provided this is necessitated by work and approved by the departments which have the prescribed authority
for appointment and removal.

Article 17 The minimum term of office for the principal commanders at various levels in peacetime shall be:

3 years for a principal commander at the platoon level;

4 years for one at the company level;

3 years for one at the battalion level;

4 years for one at the regimental level; and

3 years for one at the divisional (brigade) level.

The minimum term of office for a principal commander at or above the corps level shall be determined separately by the Central Military
Commission.

The minimum term of office for the principal commander of a Class IV naval vessel, an air squadron and a guided missile company shall
be three years; it shall be four years for the principal commander of a Class III naval vessel, an air group and a guided missile
battalion.

Article 18 The minimum term of office for chiefs of sections, subdivisions, divisions and departments and officers holding posts at corresponding
levels in headquarters or academies and schools shall be determined with reference to the provisions of the first paragraph of Article
17 of the present Regulations.

The minimum term of office for staff officers, clerical workers, secretaries, assistants, instructors, etc. shall be three years.

Article 19 The minimum term of office for specialized technical officers shall be determined separately by the Central Military Commission.

Article 20 Officers can be promoted to the next higher level by filling vacancies available in the authorized size of the staff on the strength
of their political integrity and professional competence, but only after they have completed their minimum term of office.

Officers who are outstanding in political integrity and professional competence and who have distinguished themselves in performing
their duties may be promoted ahead of time if there is a special need to do so arising from work; those who are exceptionally good
may be promoted by skipping a grade.

Article 21 Officers shall be appointed within the authorized size of the staff and in accordance with the authorized grading of posts.

Article 22 Officers who prove not qualified for their posts shall be transferred to posts at lower levels or to other jobs and their treatment
shall be redetermined accordingly.

Article 23 To meet the needs in the building of national defence, Army may send officers in active service to non-military departments to fulfil
their assignments there.

Article 24 Officers may switch over to civilian jobs in the Army in accordance with the relevant provisions of the Central Military Commission.

CHAPTER IV AWARDS AND PENALTIES FOR OFFICERS IN ACTIVE SERVICE

Article 25 Officers who have made significant contributions or achieved outstanding successes in battle or army building and those who have
made considerable contributions to the State and the people in other fields of endeavour shall be awarded in accordance with the
relevant provisions of the Central Military Commission.

The awards shall fall into the following categories: Honourable Citation; Citation for Merit, Class III; Citation for Merit Class
II; Citation for Merit, Class I; conferment of honourable tiles and other awards stipulated by the Central Military Commission.

Article 26 Officers who have violated military discipline shall be given disciplinary sanctions in accordance with the relevant provisions of
the Central Military Commission.

The disciplinary sanctions shall fall into the following categories: warning; serious warning; recording of a demerit; recording of
a serious demerit; demotion to a lower post, demotion to a lower rank or grade; dismissal from post; disciplinary discharge from
the military service and other disciplinary sanctions prescribed by the Central Military Commission.

Article 27 Officers who have been removed from office shall be appointed to new posts in the light of the specific circumstances under which
they made mistakes; those who have not been appointed to new posts shall also be regarded for their posts and treatment.

Article 28 Officers whose actions against the law and discipline constitute criminal offences shall be investigated for criminal responsibility
in accordance with the law.

CHAPTER V MATERIAL AND OTHER BENEFITS FOR OFFICERS IN ACTIVE SERVICE

Article 29 A system linking salary to post and military rank and a regular salary increase system shall be instituted for officers, who shall
also enjoy allowances and subsidies in accordance with the relevant regulations of the State and the Army. The specific measures
shall be prescribed by the Central Military Commission.

Officers shall continue to draw their salaries, when they in accordance with the relevant regulations receive off-service training,
vacation, medical treatment or recuperation, or when they wait for new assignments after being relieved of their duties.

Article 30 Officers shall enjoy free medical care. The relevant departments shall do a good job of providing medical and health services for
officers and make proper arrangements for their medical treatment and recuperation.

Article 31 Officers shall be enpost_titled to a vacation every year.

officers of units carrying out combat duties shall suspend their vacation.

When the State issues an order of mobilization, officers on vacation who are required to return to their units in response to the
order shall terminate their vacation and return to their units immediately.

Article 32 Officers who are qualified to take along with them their dependents, i.e., their spouses and their children who have not come of
age or who do not have the ability to live by themselves, may do so after obtaining approval from the political departments at or
above the divisional (brigade) level, and those dependents who are from the countryside may have their domicile changed from rural
to urban areas.

When the units are shifted to other places for garrison duties or when the officers are assigned posts in other places, their dependents
may accompany the officers.

An officer who has reached the age of 50 but who has no son or daughter living with him or her may have one working son or daughter
transferred to the place where he or she is stationed. If the son or daughter to be thus transferred is married, his or her spouse
and his or her children who have not come of age or who do not have the ability to live by themselves may be transferred along with
him or her.

The assignment and transfer of jobs for officers’ dependents who accompany the units of Army and for officers’ children and their
children’s spouses transferred to the locations of these units shall be handled in accordance with the relevant provisions of the
State Council and the Central Military Commission.

Article 33 The affairs of dependents accompanying officers who have died in action or of diseases shall be handed over to the government. Specific
measures shall be stipulated by the State Council and the Central Military Commission.

CHAPTER VI OFFICERS’ RETIREMENT FROM ACTIVE SERVICE

Article 34 Officers shall retire from active service when they reach the maximum age for active service in peacetime.

The maximum age for officers in active service in peacetime shall be:

55 for officers at the divisional level in combat troops; and

58 for officers at the level of deputy corps commander and 60 for officers at the level of corps commander in combat troops.

The maximum age for officers in active service at other levels shall be the same as the maximum age for their posts.

Article 35 Officers who have not reached the maximum age for active service shall retire from active service if they fall into any of the following
categories:

(1) being unable to carry on normal work because of wound, illness or disability;

(2) being not in a position to be reappointed because of limitations on the size of the staff;

(3) being transferred from the corps to non-military departments; and

(4) having to retire from active service because of other reasons.

Article 36 Officers’ retirement from active service shall be approved by the same authorities that have the power to approve their appointment
and removal.

Article 37 After they retire from active service, officers holding posts at or above the divisional level or senior specialized technical posts
shall be treated as pensioners; some of them may be transferred to civilian jobs, or other arrangements may be made for them.

After they retire from active service, officers holding posts at or below the regimental level or junior or intermediate specialized
technical posts shall be transferred to civilian jobs, or other arrangements may be made for them.

Officers to be transferred to civilian jobs may be given vocational training where necessary.

Officers who have basically lost their ability to work before reaching the maximum age for active service shall be treated as pensioners
after retiring from active service.

As regards officers who have been in active service for 30 years or more, or who have been in active service and have worked for the
State for a total of 30 years or more, or who are aged 50 or more at or above the divisional level may be treated as pensioners,
provided that they are released from active service upon approval of their applications for retirement by the competent authorities;
and those who are at the regimental level and not suitable for transference to civilian jobs or other arrangements may be treated
as pensioners, provided their retirement is approved by the competent authorities.

Article 38 Officers who have reached their maximum age for active service may leave their posts to rest if they meet the relevant State requirements
for doing so. With approval, some may do so before they have reached the age while others may stay longer in active service because
of work or other reasons.

Article 39 The affairs of officers who have been retired from active service shall be administered by the government. Specific measures shall
be prescribed by the State Council and the Central Military Commission.

The affairs of officers who have left their posts to rest or who are at or above the corps level when they retire shall be administered
in accordance with relevant regulations of the State Council and the Central Military Commission.

Article 40 Junior specialized technical officers who have served for less than eight years, officers at the platoon level who have not reached
their maximum age for active service, and officers holding posts at or above the company level who have not completed their minimum
term of office shall not be permitted to retire from active service, except by decision or approval of the competent authorities.

Officers whose applications for retiring from active service ahead of schedule in peacetime have been rejected but who still insist
on retiring from active service despite persuasion shall be allowed to do so after being demoted by way of disciplinary sanction
or deprived of their status as officers.

CHAPTER VII SUPPLEMENTARY PROVISIONS

Article 41 The General Political Department of the People’s Liberation Army shall, in accordance with the present Regulations, formulate measures
for their implementation, which shall come into force after being submitted to and approved by the State Council and the Central
Military Commission.

Article 42 The present Regulations shall go into effect as of January 1, 1989. The Regulations on the Military Service of Cadres of the Chinese
People’s Liberation Army, which was approved by the Standing Committee of the Fifth National People’s Congress on August 18, 1978
and promulgated by the State Council and the Central Military Commission on August 19, 1978, shall be annulled as of the same date.

PROVISIONS GOVERNING THE LAYING OF SUBMARINE CABLES AND PIPELINES

Category	POSTS AND TELECOMMUNICATIONS	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1989-02-11	Effective Date	1989-03-01

Provisions Governing the Laying of Submarine Cables and Pipelines

(Adopted by the 32nd Executive Meeting of the State Council on January

20, 1989, promulgated by Decrce No. 27 of the State Council of the People’s
Republic of China on February 11, 1989, and effective as of March 1, 1989)

Article 1 These Provisions are formulated in order to safeguard the
sovereignty and the rights and interests of the People’s Republic of China,
to carry out rational exploitation of seas and oceans, and to lay in an
orderly way and protect submarine cables and pipelines.

Article 2 These Provisions shall apply to the layout of submarine
cables and pipelines in such areas as inland seas, territorial seas and
continental shelves under the jurisdiction of the People’s Republic of China,
and also to the investigations and survey of routes and other relevant
activities conducted for the aforesaid engineering projects.

Article 3 The competent authorities for the administration of the laying
of submarine cables and pipelines in such areas as the said inland seas,
territorial seas and continental shelves, and also for the investigations and
survey of routes and other relevant activities for the aforesaid engineering
projects, shall be the State Oceanographic Bureau of the People’s Republic of
China (hereinafter referred to as “the competent authorities”).

Article 4 When China’s enterprises or institutions plan to lay submarine
cables and pipelines, they shall file an application with their superior
authorities for examination and approval before they conduct investigations
and survey of routes and other relevant activities for the aforesaid
engineering projects in accordance with these Provisions.

When foreign companies, enterprises and other foreign economic
organizations or individuals have the necessity to lay submarine cables and
pipelines, and also to conduct investigations and survey of routes and other
relevant activities for the aforesaid engineering projects in the inland seas
and territorial seas of the People’s Republic of China, they shall, in
accordance with these Provisions, apply to the competent authorities for
approval; if they have the necessity to carry out the said activities on the
continental shelves of the People’s Republic of China, they shall notify the
competent authorities in advance, but the routes they have selected and
decided on for laying the cables and pipelines must have the consent of the
competent authorities.

Article 5 The owners of the submarine cables and pipelines (hereinafter
referred to as “the owners”) shall file a written application with the
competent authorities 60 days before they start the investigations and survey
of routes for laying the submarine cables and pipelines. The written
application shall contain the following:

(1) the name, nationality, and residence of the owner;

(2) the name, nationality, and residence as well as the chief
person-in-charge of the unit which will conduct the investigations and survey
of the routes for laying the submarine cables and pipelines;

(3) the precise geographical areas in which the investigations and survey
are to be conducted for laying the submarine cables and pipelines;

(4) the time, the items, methods and equipment – including the ship to
be used: its name, nationality, tonnage, and major pieces of equipment and
their functions – for conducting the investigations and survey of routes for
laying the submarine cables and pipelines.

The competent authorities shall make a reply within 30 days as of the date
of receipt of the application.

Article 6 After the investigations and survey for laying the submarine
cables and pipelines have been completed, the owners shall submit a report,
delineating the final decision on the routes for laying the submarine cables
and pipelines 60 days before the laying project is started, to the competent
authorities for examination and approval, and the report shall be submitted
together with the following data:

(1) the purposes of laying the submarine cables and pipelines, the
materials to be used and their properties;

(2) the precise route chart and position chart of the submarine cables
and pipelines, their starting point and terminal point, their relay points
(stations) and their total length;

(3) the construction contractor, time and plan for construction, and
technical equipment;

(4) a report on the repercussions of the cable- and pipeline-laying
engineering project on marine resources and environment;

(5) other explanatory data.

The competent authorities shall make a reply within 30 days as of the
date of receipt of the application.

Article 7 After the completion of the engineering project, the owners
shall submit all the explanatory data, such as the route chart and position
chart of the submarine cables and pipelines, to the competent authorities for
the record, and send duplicates to the harbour superintendency organs.

When the State needs the relevant technical data for the exploitation of
marine resources or for carrying out administration, the owners have the
obligations to provide the competent authorities with further precise data
concerning the submarine cables and pipelines.

Article 8 The operations of laying submarine cables and pipelines and the
investigations and surveying activities for the cable- and pipeline-laying
engineering project shall not conducted beyond the approved sea areas; nor
shall operations and activities other than these approved be conducted in the
approved sea areas.

Article 9 In the event that changes or modifications in the approved
operation plan for laying the submarine cables and pipelines are required
before the operations start or during the operations, the owners shall report
the case to the competent authorities in good time. If the changes or
modifications are of sizable proportions, the competent authorities may take
appropriate measures accordingly, up to ordering the owners to cease the
operations.

Article 10 With respect to such operations as maintenance, alteration,
dismantling, or abandonment of the submarine cables and pipelines, the owners
shall submit a report on the said operations to the competent authorities in
advance. If a relatively big change is to be effected in the routes of the
submarine cables and pipelines, the owners shall go through the relevant
procedures of application once again.

When foreign vessels have the necessity to enter China’s inland seas and
territorial seas to carry out activities in the maintenance, alteration, or
dismantling of submarine cables and pipelines, the owners shall, in addition
to going through the procedures as prescribed in the first paragraph of this
Article, submit an application to the administrative department concerned in
China for approval, in accordance with the pertinent provisions of China’s
laws.

When the damaged submarine cables and pipelines laid on China’s
continental shelves need emergency repairs, foreign maintenance vessels may
enter the site to start the emergency repairs simultaneously with a report
submitted to the competent authorities. However the said operations shall not
impair China’s sovereign rights and jurisdiction.

Article 11 Operations such as the investigations and surveying activities
for identifying the routes for laying submarine cables and pipelines, the
laying, maintenance, and dismantling, must not hamper the normal order of
marine navigation and transportation.

The bits and pieces left over from the engineering project of laying
submarine cables and pipelines and from the dismantling project shall be
disposed of carefully and must not hamper the normal order of marine
navigation and transportation.

Article 12 When the laying of submarine cables and pipelines and other
marine engineering operations require that those submarine cables and
pipelines already laid be moved, prior consultations must be conducted with
the owners of the aforesaid installations and an approval must be obtained
from the competent authorities before the said engineering project starts.

Article 13 Operators who are engaged in various activities at sea must
protect the submarine cables and pipelines that have already been laid. Those
who have caused damages to the said installations shall make compensations
according to law.

In the event that disputes arise over the exploitation of the seas and
oceans and the normal functioning of submarine cables and pipelines, the
disputes shall be mediated and handled by the competent authorities.

Article 14 The competent authorities shall have the power to supervise
and inspect the laying, maintenance, alteration, dismantling and abandonment
of submarine cables and pipelines as well as the relevant investigations and
surveying activities conducted for the laying of submarine cables and
pipelines. The competent authorities may impose on violators of these
Provisions such penalties as warning, fine, up to an order to cease their
operations at sea.

The specific measures for imposing the penalties as mentioned in the
preceding paragraph shall be formulated by the competent authorities in
conjunction with other competent authorities concerned under the State Council.

Article 15 The plan for determining the routes for laying submarine
cables and pipelines beyond the petroleum exploitation zones in order to
exploit marine petroleum resources shall be submitted to the competent
authorities prior to the examination and approval of the overall plan for the
exploitation of oil (and gas) fields; and the competent authorities shall give
approval after consultation with the competent state authorities for energy
resources.

With respect to the laying of submarine cables and pipelines within the
marine petroleum development zones between the drilling platforms or between
drilling platforms and single berthing points, the owners shall, before the
start of the investigations and survey of routes for the laying of submarine
cables and pipelines and the start of cable- and pipeline-laying operations,
submit a report specifying the contents as provided in Article 5 and Article 6
of these Provisions to the competent authorities for the record.

Article 16 With respect to the operational activities such as laying,
maintenance, alteration, dismantling and abandonment of submarine cables and
pipelines, as well as the investigations and surveying activities conducted
for identifying the routes for laying the submarine cables and pipelines, in
case there are any aspects which are not covered in these Provisions, the
Provisions in other relevant State laws, decrees and regulations shall apply.

Article 17 The laying of submarine cables and pipelines for military
purposes in the People’s Republic of China shall be handled in accordance with
these Provisions. The armed forces may formulate specific rules for the
implementation of these Provisions.

Article 18 The competent authorities shall collect data concerning
submarine topography and the distribution of structures at sea in order to
offer consultancy services for laying of submarine cables and pipelines, and
for conducting relevant investigations and surveying activities.

Article 19 The term “cables”, as used in these Provisions, refers to
communications cables and electric cables; the term “pipelines” refers to the
pipe-shaped conveying and transporting installations used for conveyance of
water, gas, oil and other substances.

Article 20 The right to interpret these Provisions resides in the State
Oceanographic Bureau of the People’s Republic of China.

Article 21 These Provisions shall go into effect on March 1, 1989.

CUSTOMS LAW

Customs Law of the People’s Republic of China

(Adopted at the 19th Meeting of the Standing Committee of the Sixth National People’s Congress on January 22, 1987, promulgated by
Order No. 51 of the President of the People’s Republic of China on January 22, 1987, and effective as of July 1, 1987)

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II INWARD AND OUTWARD MEANS OF TRANSPORT

CHAPTER III INWARD AND OUTWARD GOODS

CHAPTER IV INWARD AND OUTWARD ARTICLES

CHAPTER V CUSTOMS DUTIES

CHAPTER VI LEGAL RESPONSIBILITIES

CHAPTER VII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

Article 1. This Law is formulated for the purpose of safeguarding state sovereignty and interests, strengthening supervision and control by
the Customs, promoting exchanges with foreign countries in economic affairs, trade, science, technology and culture, and ensuring
socialist modernization.

Article 2. The Customs of the People’s Republic of China shall be the state organ responsible for supervision and control over everything entering
and leaving the customs territory ( hereinafter referred to as inward and outward persons and objects). The Customs shall, in accordance
with this Law and other related laws and regulations, exercise supervision and control over the means of transport, goods, travellers’
luggage, postal items and other articles entering or leaving the territory (hereinafter referred to as inward and outward means of
transport, goods and articles), collect customs duties and other taxes and fees, uncover and suppress smuggling, work out customs
statistics and handle other customs operations.

Article 3. The State Council shall set up the General Customs Administration which shall exercise unified administration of the customs establishments
throughout the country.

The state shall set up customs establishments at ports open to foreign countries and regions and at places which call for concentrated
customs operations of supervision and control. The subordination of one customs establishment to another shall not be restricted
by administrative divisions.

The customs establishments shall exercise their functions and powers independently in accordance with the law, and shall be responsible
to the General Customs Administration.

Article 4. A customs establishment shall exercise the following powers:

(1) to check inward and outward means of transport and examine inward and outward goods and articles; to detain those entering or
leaving the territory in violation of this Law or other relevant laws and regulations;

(2) to examine the papers and identifications of persons entering or leaving the territory; to interrogate those suspected of violating
this Law or other relevant laws and regulations, and investigate their illegal activities;

(3) to examine and make copies of contracts, invoices, book accounts, bills, records, documents, business letters and cables, audio
and video products and other materials related to the inward and outward means of transport, goods and articles; to detain those
related to the means of transport, goods and articles entering or leaving the territory in violation of this Law or other relevant
laws and regulations;

(4) to search, within a customs surveillance zone and the specified coastal or border area in the vicinity of a customs establishment,
means of transport suspected of involvement in smuggling, and storage places suspected of concealing smuggled goods and articles,
and to search persons suspected of smuggling. Upon the approval of the director of a customs establishment, a suspected criminal
smuggler may be detained and handed over to a judicial organ. Such detention shall not exceed 24 hours and, under special circumstances,
may be extended to 48 hours.

The scope of the specified coastal or border area in the vicinity of a customs establishment shall be defined by the General Customs
Administration and the public security department under the State Council in conjunction with the relevant provincial people’s governments;

(5) Customs officers may chase means of transport or persons defying and escaping from customs supervision and control to places beyond
a customs surveillance zone or the specified coastal or border area in the vicinity of a customs establishment and bring them back
to be properly dealt with; and

(6) A customs establishment may be provided with arms for the performance of its duties. Rules governing the carrying and use of
arms by customs officers shall be drawn up by the General Customs Administration jointly with the public security department under
the State Council and reported to the State Council for approval.

Article 5. All inward and outward means of transport, goods and articles shall enter or leave the territory at a place where there is a customs
establishment. If, under special circumstances, they have to enter or leave the territory at a place without a customs establishment
as a matter of contingency, permission shall be obtained from the State Council or an organ authorized by the State Council, and
customs formalities shall be duly completed in accordance with this Law.

Article 6. Unless otherwise provided for, all import and export goods shall be declared and duties on them paid by declaration enterprises
registered with the Customs, or by enterprises enpost_titled to engage in import and export business. The persons of these enterprises
in charge of the declaration shall be evaluated and approved by the Customs. The customs formalities concerning declaration of inward
and outward articles and payment of duties on them may be completed either by the owner or by a person the owner has entrusted to
act as his agent. The agent entrusted to complete the declaration formalities shall abide by all provisions of this Law applicable
to the owner.

Article 7. Customs personnel shall abide by the laws and regulations, enforce the law impartially, be devoted to their duties and render services
in a civilised manner.

No unit or individual may obstruct the Customs from performing its duties according to law.

Where a customs officer meets with resistance while carrying out his duties, the public security organ and the People’s Armed Police
units performing related tasks shall provide assistance.

CHAPTER II INWARD AND OUTWARD MEANS OF TRANSPORT

Article 8. When a means of transport arrives at or departs from a place where there is a customs establishment, the person in charge of the
means of transport shall make a truthful declaration to the Customs, submit the relevant papers for examination and accept customs
control and examination.

The inward and outward means of transport staying at a place with a customs establishment shall not depart from it without prior permission
by the Customs.

Before an inward or outward means of transport moves from one place with a customs establishment to another place with a customs establishment,
it shall comply with the control requirements of the Customs and complete customs formalities; no means of transport shall be allowed
to change its course and leave the territory unless it has cleared the Customs.

Article 9. An inward means of transport which has entered the territory but has not made its declaration to the Customs or an outward means
of transport which has cleared the Customs but has not left the territory shall move along routes specified by competent communications
authorities; in the absence of such specification, the routes shall be designated by the Customs.

Article 10. The Customs shall be notified in advance, either by the person in charge of a means of transport or by the relevant transport and
communications department, of such details as when an inward or outward vessel, train or aircraft will arrive and depart, where it
will stay, what places it will move to during its stay, and when the loading or unloading of the goods and articles will take place.

Article 11. The inward or outward goods and articles being loaded on or unloaded from a means of transport and the inward and outward passengers
boarding or getting off a means of transport shall be subject to customs control.

Upon the completion of such loading or unloading, the person in charge of the means of transport shall submit to the Customs documents
and records which reflect the actual situation of the loading and unloading.

Those boarding or getting off an inward or outward means of transport who carry articles with them shall truthfully declare to the
Customs and shall be subject to customs examination.

Article 12. When an inward or outward means of transport is being checked by the Customs, the person in charge of the means of transport shall
be present and open the holds, cabins, rooms or doors of the vehicles at the request of the Customs; where smuggling is suspected,
such person shall also open or dismantle the part of the means of transport which may conceal smuggled goods and articles or remove
the goods and materials.

In accordance with work requirements, the Customs may dispatch officers to perform duties on board the means of transport. The person
in charge of the means of transport shall provide them with conveniences.

Article 13. An inward means of transport of countries or regions outside the territory or an outward means of transport of units or enterprises
inside the territory shall not be transferred or devoted to other uses prior to the completion of customs formalities and payment
of customs duties.

Article 14. Where inward or outward vessels and aircraft are concurrently engaged in transportation of goods and passengers within the territory,
customs approval shall be obtained and requirements for customs control shall be fulfilled.

Customs formalities shall be completed with the Customs for an inward or outward means of transport to change to transport business
within the territory.

Article 15. Coastal transport vessels, fishing boats and ships engaged in special operations at sea may not carry, obtain on an exchange basis,
purchase or transfer inward and outward goods and articles without customs approval.

Article 16. When, owing to force majeure, an inward or outward vessel or aircraft is forced to berth, land or jettison and discharge goods and
articles at a place without a customs establishment, the person in charge of the means of transport shall report immediately to the
customs establishment nearby.

CHAPTER III INWARD AND OUTWARD GOODS

Article 17. All import goods, throughout the period from the time of arrival in the territory to the time of customs clearance; all export goods,
throughout the period from the time of declaration to the time of departure from the territory; and all transit, transshipment and
through goods, throughout the period from the time of arrival in the territory to the time of departure from the territory, shall
be subject to customs control.

Article 18. The consignee for import goods and the consignor for export goods shall make an accurate declaration and submit the import or export
license and relevant papers to the Customs for examination. In the absence of an import or export license, goods whose importation
or exportation is restricted by the state shall not be released. Specific measures for handling such matters shall be enacted by
the State Council.

Declaration of import goods shall be made to the Customs by the consignee within 14 days of the declaration of the arrival of the
means of transport; declaration of export goods shall be made by the consignor 24 hours prior to loading unless otherwise specially
approved by the Customs.

Where the consignee fails to declare the import goods within the time limit prescribed in the preceding paragraph, a fee for delayed
declaration shall be imposed by the Customs.

Article 19. All import and export goods shall be subject to customs examination. While the examination is being carried out, the consignee
for the import goods or the consignor for the export goods shall be present and be responsible for moving the goods and opening and
restoring the package. The Customs shall be enpost_titled to examine or re-examine the goods or take samples from them without the presence
of the consignee or the consignor whenever it considers this necessary. Import and export goods may be exempted from examination
if an application has been made by the consignee or consignor and approved by the General Customs Administration.

Article 20. Unless specially approved by the Customs, import and export goods shall be released upon customs endorsement only after the payment
of duties or the provision of a guarantee.

Article 21. Where the consignee fails to declare the import goods to the Customs within three months of the declaration of the arrival of the
means of transport, the goods shall be taken over and sold off by the Customs. After the costs of transport, loading and unloading
and storage and the duties and taxes are deducted from the money obtained from the sale, the remaining sum, if any, shall be returned
to the consignee provided he submits an application to the Customs within one year of the sale of the goods; if nobody applies within
the time limit, the money shall be turned over to the State Treasury.

Inward goods confirmed by the Customs to be misdischarged or over-discharged may be returned to the place of consignment or imported
upon completion of necessary formalities by the person in charge of the means of transport carrying the goods or the consignee or
the consignor for the goods within three months of the discharging. When necessary, an extension of three months may be granted
through customs approval. If the formalities are not completed within the time limit, the goods shall be disposed of by the Customs
in accordance with the provisions laid down in the preceding paragraph.

Where goods listed in the preceding two paragraphs are not suitable for storage over a long period, the Customs may, according to
actual circumstances, dispose of them before the time limit is reached.

Import goods declared to be abandoned by the consignee or the owner shall be taken over and sold off by the Customs. The money thus
obtained shall be turned over to the State Treasury after the costs of transport, loading, unloading and storage are deducted.

Article 22. Goods that are temporarily imported or exported with the approval of the Customs shall be re-shipped out of or into the territory
within six months. An extension may be granted in special circumstances through customs approval.

Article 23. The operation of the storage, processing and assembling and consignment sales of bonded goods shall be approved by and registered
with the Customs.

Article 24. Customs formalities for import goods shall be completed by the consignee at the customs establishment at the place where the goods
enter the territory; those for export goods shall be completed by the consignor at the customs establishment where the goods depart
from the territory.

If applied for by the consignee or the consignor and approved by the Customs, customs formalities for import goods may be completed
at the place of destination where there is a customs establishment, and those for export goods at the place of consignment where
there is a customs establishment. The transport of such goods from one place with a customs establishment to another shall comply
with the control requirements of the Customs. When necessary, customs officers may escort the goods in transportation.

Where goods enter or leave the territory by electric cables, pipelines or other special means of conveyance, the management units
concerned shall report at regular intervals to the designated customs establishment and complete customs formalities as required.

Article 25. All transit, transshipment and through goods shall be truthfully declared by the person in charge of the means of transport to the
customs establishment at the place where the goods enter the territory, and shall be shipped out of the territory within the designated
time limit.

The Customs may examine such goods whenever it considers this necessary.

Article 26. Without customs approval, no unit or individual may open, pick up, deliver, forward, change, repack, mortgage or transfer goods
under customs control or change the identification marks on such goods.

Seals affixed by the Customs may not be opened or broken by any person without customs authorization.

The managers of warehouses and places where goods under customs control are kept shall complete procedures for the receipt and delivery
of goods in accordance with customs regulations.

The storage of goods under customs control at a place outside a customs surveillance zone shall be approved by the Customs and subject
to customs control.

Article 27. The General Customs Administration shall draw up, independently or jointly with the relevant departments under the State Council,
rules for control over inward and outward containers; rules for control over the salvage of inward and outward goods and sunken ships;
rules for control over inward and outward goods involved in small volumes of border transactions and other inward and outward goods
not specified in this Law.

CHAPTER IV INWARD AND OUTWARD ARTICLES

Article 28. Inward and outward luggage carried by individuals and inward and outward articles sent by post shall be limited to reasonable quantities
for personal use and shall be subject to customs control.

Article 29. All inward and outward articles shall be accurately declared to the Customs by the owner and shall be subject to customs examination.

Seals affixed by the Customs may not be opened or broken by any person without authorization.

Article 30. The loading, unloading, transshipment and transit of inward and outward mail bags shall be subject to customs control, and a covering
waybill shall be submitted to the Customs by the postal enterprise concerned.

The postal enterprise shall inform the Customs in advance of the schedule for the opening and sealing of international mail bags.
The Customs shall promptly dispatch officers to supervise checking and examination on the spot.

Article 31. Inward and outward articles sent by post shall be posted or delivered by managing units only after they have been examined and released
by the Customs.

Article 32. Articles registered with and approved by the Customs for temporarily entering or leaving the territory duty-free, shall be taken
out or brought into the territory again by the owner.

Persons passing through the territory may not leave in the territory, without customs approval, the articles they carry with them.

Article 33. In accordance with Article 21 of this Law, the Customs shall dispose of inward and outward articles declared to be abandoned by
the owner; articles to which no one makes a claim or for which customs formalities are not completed within the time limit set by
the Customs; and inward postal items which can neither be delivered nor be returned.

Article 34. Inward and outward articles intended for official or personal use by foreign missions or personnel enjoying diplomatic privileges
and immunities shall be dealt with in accordance with the Regulations of the People ‘s Republic of China on Diplomatic Privileges
and Immunities.

CHAPTER V CUSTOMS DUTIES

Article 35. Unless otherwise provided for in this Law, customs duties shall be levied according to the import and export tariff on goods permitted
to be imported or exported and articles permitted to enter or leave the territory. The tariff shall be made known to the public.

Article 36. The consignee of import goods, the consignor of export goods and the owner of inward and outward articles shall be the obligatory
customs duty payer.

Article 37. The customs duty payer of import or export goods shall pay the amount levied within seven days following the date of issuance of
the duty memorandum. In case of failure to meet this time limit, a fee for delayed payment shall be imposed by the Customs. Where
the delay exceeds three months, the Customs may instruct the guarantor to pay the duties or sell off the goods to offset the duties.
The Customs may inform the bank to deduct the amount of duties due from the deposits of the guarantor or the obligatory customs
duty payer when it considers this necessary.

The payment of duties on inward or outward articles shall be made, prior to their release, by the obligatory customs duty payer.

Article 38. The duty-paying value of an import item shall be its normal CIF price, which shall be approved by the Customs; the duty-paying value
of an export item shall be its normal FOB price, which shall be approved by the Customs, minus the export duty. Where it is impossible
to ascertain the CIF or FOB price, the duty-paying value of an import or export item shall be fixed by the Customs.

The duty-paying value of an inward or outward article shall be fixed by the Customs.

Article 39. Duty reduction or exemption shall be granted for import or export goods and inward or outward articles listed below:

(1) advertising items and trade samples of no commercial value;

(2) materials presented free of charge by foreign governments or international organizations;

(3) goods to which damage or loss has occurred prior to customs release;

(4) articles of a quantity or value within the fixed limit;

(5) other goods and articles specified by law as items for duty reduction or exemption; and

(6) goods and articles specified as items for duty reduction or exemption by international treaties to which the People’s Republic
of China is either a contracting or an acceding party.

Article 40. Duty reduction or exemption may be granted for import and export goods of the Special Economic Zones and other specially designated
areas; for import and export goods of specific enterprises such as Chinese-foreign equity joint ventures, Chinese-foreign contractual
joint ventures and enterprises with exclusive foreign investment; for import and export goods devoted to specific purposes; and for
materials donated for use by public welfare undertakings. The State Council shall define the scope and formulate the rules for such
reduction and exemption.

The State Council or departments empowered by the State Council shall define the scope and formulate the rules for duty reduction
or exemption involved in small volumes of border transactions.

Article 41. All import goods and articles for which duty reduction or exemption is granted in accordance with the preceding Article shall be
used only in specific areas and enterprises or for specific purposes. They shall not be utilized otherwise unless customs approval
is obtained and duties duly paid.

Article 42. Temporary duty reduction or exemption not specified in Article 39 and 40 of this law shall be examined and approved by the General
Customs Administration independently or jointly with the financial department under the State Council in accordance with the regulations
of the State Council.

Article 43. Temporary duty exemption shall be granted for goods approved by the Customs as temporarily imported or exported items and for bonded
goods imported by special permission after the consignee or the consignor of the goods submits to the Customs a guarantee or a deposit
of an amount equal to the duties.

Article 44. Where the Customs finds that the duties are short-levied or not levied on a consignment of import or export goods or on an inward
or outward article after its release, the Customs shall collect the money payable from the obligatory customs duty payer within one
year of the previous duty payment or the release of the item. If the short-levied or non-levied duties are attributable to the duty
payer’s violation of the customs regulations, the Customs may collect the unpaid amount from him within three years.

Article 45. Where the duties are over-levied, the Customs, upon discovery, shall refund the money without delay. The duty payer may ask the
Customs for refunding within one year of the date of duty payment.

Article 46. Where the obligatory customs duty payer is involved in a dispute over duty payment with the Customs, he shall first pay the duties
and may, within 30 days of the issuance of the duty memorandum, apply to the Customs in writing for a reconsideration of the case.
The Customs shall reach a decision within 15 days of the receipt of the application. If the obligatory customs duty payer refuses
to accept the decision, he may apply to the General Customs Administration for a reconsideration of the case within 15 days of the
receipt of the decision. If the decision of the General Customs Administration is still considered unacceptable by the obligatory
customs duty payer, he may file a suit in a people’s court within 15 days of the receipt of the decision.

CHAPTER VI LEGAL RESPONSIBILITY

Article 47. Evasion of customs control in one of the forms listed below shall constitute a crime of smuggling:

(1) to transport, carry or send by post into or out of the territory narcotic drugs, weapons or counterfeit currencies which are prohibited
by the state from being imported or exported; to transport, carry or send by post into or out of the territory obscene objects for
the purpose of profit-making or dissemination; or to transport, carry or send by post out of the territory cultural relics which
are prohibited by the state from being exported;

(2) to transport, carry or send by post into or out of the territory, for the purpose of making a profit, articles in relatively large
quantities or of a relatively high value which are prohibited by the state from being imported or exported, but which are not included
in item (1) of this Article; and goods or articles in relatively large quantities or of a relatively high value whose importation
or exportation is restricted by the state or which are subject to the collection of customs duties according to law; or

(3) to sell, without customs approval and payment of duties, bonded goods imported by special permission or goods listed for special
duty reduction or exemption which are in relatively large quantities or of a relatively high value.

Any armed smuggling or resistance by violence to customs examination of smuggled goods or articles shall constitute a crime of smuggling,
whatever the quantity or value of the goods or articles involved.

The criminal punishments imposed by the people’s court to persons guilty of smuggling include imposing a fine and the confiscation
of the smuggled goods or articles, of the means of transport used for smuggling and of the illegal proceeds obtained therefrom.

Where an enterprise, an institution or a state organ or a public organization is guilty of smuggling, the judicial organ shall investigate
and determine the criminal responsibility of the person or persons in charge and the person or persons directly answerable for the
offence, and issue an order to impose a fine on the unit and confiscate the smuggled goods or articles, the means of transport used
for smuggling and the illegal proceeds obtained therefrom.

Article 48. If the smuggled goods and articles involved in one of the acts listed under item (2) and (3) of Article 47 of this Law are not large
in quantity nor of high value, or where the carrying or sending by post of obscene objects into or out of the territory does not
yet constitute a crime of smuggling, the Customs may, while confiscating the goods, articles or illegal proceeds obtained therefrom,
concurrently impose a fine on the person or persons concerned.

Article 49. Any of the following acts shall be dealt with as a crime of smuggling and shall be punishable in accordance with the provisions
of Article 47 of this Law:

(1) to purchase directly and illegally from a smuggler articles which are prohibited by the state from being imported; or to purchase
directly and illegally from a smuggler other smuggled goods or articles in relatively large quantities or of a relatively high value;
or

(2) to transport, purchase or sell on inland or territorial waters articles which are prohibited by the state from being imported
or exported; or to transport, purchase or sell without legal certification goods or articles whose importation or exportation is
restricted by the state and which are in relatively large quantities or of a relatively high value.

Where an act listed in the preceding paragraphs does not yet constitute a crime of smuggling, punishment shall be applied in accordance
with the provisions of Article 48 of this Law.

Article 50. Any individual who carries or sends by post articles for personal use into or out of the territory in a quantity exceeding the reasonable
limit and fails to declare them to the Customs shall be made to pay the duties and may be fined.

Article 51. A fine may be imposed for any of the following acts which violate the regulations on customs control prescribed in this Law:

(1) for a means of transport to enter or leave the territory at a place without a customs establishment;

(2) to fail to inform the Customs of the arrival and departure time of a means of transport and the place where it will stay or any
change of such a place;

(3) to fail to declare truthfully to the Customs the import or export goods or the transit, transshipment and through goods;

(4) to fail to accept, in accordance with relevant regulations, the checking and examination by the Customs of the means of transport,
goods or articles entering or leaving the territory;

(5) for an inward or outward means of transport to load or unload inward or outward goods or articles or let passengers get on or
off without customs approval;

(6) for an inward or outward means of transport staying at a place with a customs establishment to leave without customs approval;

(7) for an inward or outward means of transport en route from one place with a customs establishment to another with a customs establishment
to move out of the territory or to a point in the territory where there is no customs establishment without completing the clearance
formalities and obtaining customs approval;

(8) for an inward or outward means of transport to engage concurrently in or change to service within the territory without customs
approval;

(9) for an inward or outward vessel or aircraft which, by force majeure, stops or lands at a place without a customs establishment,
or jettisons or discharges goods or articles in the territory to fai

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE MEASURES FOR RECEIVING COMPATRIOTS FROM TAIWAN WHO COME TO THE MAINLAND OF THEIR MOTHERLAND TO VISIT THEIR RELATIVES

Category	LAWS AND REGULATIONS ON AFFAIRS CONCERNING OVERSEAS CHINESE AND HONG KONG, MACAO AND TAIWAN	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1987-10-16	Effective Date	1987-10-16

Circular of the General Office of the State Council of the People’s Republic of China Concerning the Measures for Receiving Compatriots From Taiwan Who Come to the Mainland of Their Motherland to Visit Their Relatives

or As Tourists

(October 16, 1987)

1. The Government of the motherland warmly and sincerely welcomes
compatriots from Taiwan to come to the mainland to visit their relatives or as
tourists, and guarantees that they have the complete freedom to come and go.

2. Compatriots from Taiwan, who wish to return to the mainland of their
motherland to visit their relatives or as tourists, shall apply for travel
certificates. In the region of Hong Kong, the matter shall be handled by the
visa-issuing office of the Ministry of Foreign Affairs in Hong Kong or by the
China Travel Service in Hong Kong on its behalf; in the United States, Japan
and other countries, applications for travel certificates shall be handled by
the Chinese embassies and consulates in respective countries.

3. When compatriots from Taiwan arrive in the mainland, the Customs shall,
on the strength of their travel certificates mentioned above, give easy
clearance after examination to the luggage and articles they carry along as
long as they are within the reasonable quantities allowed for personal use.

4. Compatriots from Taiwan shall be enpost_titled to the same treatment as
enjoyed by the mainland passengers with respect to buying airplane, train and
ship tickets in the mainland and staying in hotels.

5. With respect to the foreign exchange openly quoted for free conversion
by the State Administration of Foreign Exchange Control, there shall be no
limit in amount for compatriots from Taiwan to remit or carry into the
mainland or convert in the mainland. Foreign exchange transactions shall be
conducted by the Bank of China, or by other banks approved by the State
Administration of Foreign Exchange Control to handle foreign exchange
business, and also by foreign exchange conversion agencies stationed at
airports, hotels, and department stores. Compatriots from Taiwan may open
foreign currency accounts with the aforesaid banks with the interest paid in
foreign currencies; and they shall have the freedom to deposit or withdraw
money, or remit both the principal and interest out of the mainland.

6. Compatriots from Taiwan, like their compatriots in the mainland, may
enjoy the freedom to go sightseeing or make a tour all over the mainland.

7. Compatriots from Taiwan, who return to the mainland to visit their
relatives or to tour in the mainland, shall abide by the various laws and
regulations promulgated by the Government of the motherland, and respect the
social customs and habits in the various localities.

POSTAL LAW

Postal Law of the People’s Republic of China

CONTENTS

CHAPTER I GENERAL PROVISIONS

CHAPTER II ESTABLISHMENT OF POSTAL ENTERPRISES AND POSTAL FACILITIES

CHAPTER III CLASSIFICATION OF POSTAL BUSINESSES AND POSTAL RATES

CHAPTER IV POSTING AND DELIVERING OF POSTAL MATERIALS

CHAPTER V TRANSPORTATION,CUSTOMS EXAMINATION AND QUARANTINE

INSPECTION OF POSTAL MATERIALS

CHAPTER VI COMPENSATION FOR LOSSES

CHAPTER VII PENALTY PROVISIONS

CHAPTER VIII SUPPLEMENTARY PROVISIONS

CHAPTER I GENERAL PROVISIONS

Article 1. This Law is formulated in accordance with the Constitution of the People’s Republic of China, with a view to protecting
freedom and privacy of correspondence, ensuring normal progress of postal work, and promoting development of
postal services, so as to suit the needs of socialist construction and livelihood of the people.

Article 2. The competent department of postal services under the State Council shall administer postal services throughout the country.

The competent department of postal services under the State Council shall set up regional administrative organs of postal
services as required to administer postal services of each region.

Article 3. The postal enterprises attached to the competent department of postal services under the State Council are public enterprises,
owned by the whole people, that operate postal businesses.

According to stipulations of the competent department of postal services under the State Council, postal enterprises
shall establish branch offices that operate postal businesses.

Article 4. Freedom and privacy of correspondence shall be protected by law. No organization or individual shall infringe upon
the freedom and privacy of correspondence of other persons for any reason, except when the inspection of correspondence
in accordance with legal procedures by the public security organ, the state security organ or the procuratorial organ
is necessary for the state’s safety or the investigation of criminal offence.

Article 5. Postal materials handed in or posted, remittances made and savings deposited by users shall be protected by law, and
shall not be inspected and withheld by any organization or individual except as otherwise provided by law.

Article 6. Postal enterprises shall provide users with fast, accurate, safe and convenient postal services.

Postal enterprises and postal staff shall not provide information to any organization or individual about users’
dealings with postal services except as otherwise provided for by law.

Article 7. Postal materials and remittances shall be owned by senders and remitters before they are delivered to recipients and remittees.

Article 8. Posting and delivering services of mail and other articles with characteristics of mail shall be exclusively operated
by postal enterprises, except as otherwise provided by the State Council.

Postal enterprises may, according to needs, entrust other units or individuals as agents to run businesses
exclusively operated by postal enterprises. The provisions on postal personnel specified in this Law shall apply to
agents when they handle postal businesses.

Article 9. No unit or individual shall produce false copies or make fraudulent use of special postal marks, postal uniforms and special
postal articles.

CHAPTER II ESTABLISHMENT OF POSTAL ENTERPRISES AND POSTAL FACILITIES

Article 10. Standards for establishment of postal enterprises and their branch offices shall be formulated by the competent
department of postal services under the State Council.

Article 11. Postal enterprises shall establish branch offices, postal kiosks, newspaper and periodical stands, mail boxes, etc., in
places convenient to the masses, or provide mobile services.

Residents’ mailboxes for receiving letters and newspapers shall be installed in residential buildings in cities.

Places shall be provided for handling postal business in larger railway stations, airports, ports and guest houses.

CHAPTER III CLASSIFICATION OF POSTAL BUSINESSES AND POSTAL RATES

Article 12. Postal enterprises operate the following businesses:

(1) posting and delivering of domestic and international postal materials;

(2) distributing domestic newspapers and periodicals;

(3) postal savings and postal remittances; and

(4) other suitable businesses stipulated by the competent department of postal services under the State Council.

Article 13. Postal enterprises and their branch offices shall not arbitrarily close down those postal businesses that must
be handled according to the stipulations made by the competent department of postal services under the State
Council and the regional administrative organ of postal services.

Owing to force majeure or special reasons, if postal enterprises and their branch offices need to close down temporarily
or restrict the handling of some postal businesses, they must obtain approval of the competent department of
postal services under the State Council or of regional postal administrative organs.

Article 14. Postal enterprises shall strengthen distribution work of newspapers and periodicals. If publishing units entrust postal
enterprises with distribution of newspapers and periodicals, they must make distribution contracts with
postal enterprises.

Article 15. The basic postal rates of postal services shall be set by the competent department in charge of pricing under the State Council
and shall be reported to the State Council for approval. Non-basic postal rates shall be formulated by the
competent department of postal services under the State Council.

Article 16. The payment of postage on various postal materials shall be indicated by postage certificates or by postmarks showing postage
paid.

Article 17. Postage stamps, stamped envelopes, stamped postcards, stamped aerogrammes and other postage certificates shall be
issued by the competent department of postal services under the State Council, and no unit or individual shall be allowed
to produce false copies.

The administrative measures on making facsimiles of stamp patterns shall be formulated by the competent department of
postal services under the State Council.

Article 18. Postage certificates sold shall not be cashed in postal enterprises or their branch offices.

Postage certificates to be withdrawn from circulation shall be announced to the public, and sales will be stopped
one month in advance by the competent department of postal services under the State Council. Holders of such postage
certificates may exchange them for valid postage certificates at postal enterprises and their branch offices within six
months from the date of the announcement.

Article 19. The following postage certificates shall not be used:

(1) those which the competent department of postal services under the State Council has announced as withdrawn from usage;

(2) those that have been postmarked or cancelled;

(3) those that are contaminated, incomplete or illegible due to fading or decolouring; and

(4) stamp patterns cut off from stamped envelopes, stamped postcards and stamped aerogrammes.

CHAPTER IV POSTING AND DELIVERING OF POSTAL MATERIALS

Article 20. In handing in or posting postal materials, users must abide by the provisions formulated by the relevant competent
department under the State Council on articles forbidden to post or deliver and articles to be posted or delivered in limited
amounts.

Article 21. The contents of postal materials, other than letters, to be handed in or posted by users, shall be checked on the
spot by postal enterprises or branch offices, and if such examination is refused, the postal material shall not
be accepted and posted.

Mail handed in or posted by users must be in line with the stipulations concerning the content allowed to be
posted; postal enterprises and their branch offices have the right to request users to take out the contents for examination,
when necessary.

Article 22. Postal enterprises and their branch offices shall deliver postal materials within the time limits laid down by the
competent department of postal services under the State Council.

Article 23. Undeliverable postal materials shall be returned to the senders.

Mail that is both undeliverable and unreturnable, and unclaimed within the time limit stipulated by the competent
department of postal services under the State Council, shall be destroyed on the authority of regional administrative
organs of postal services.

The incoming international postal articles that are undeliverable and unreturnable, and unclaimed within
the time limit stipulated by the competent department of postal offices under the State Council, shall be handled
by the Customs in accordance with the law.

Disposal measures for other undeliverable and unreturnable postal materials shall be formulated by the competent department
of postal services under the State Council.

Article 24. The remittees of postal remittances shall cash the postal remittances with valid documents at postal enterprises or branch
offices within two months after receiving the notice of postal remittances. Remittances unclaimed when such time
period expires shall be returned to the remitters by postal enterprises or branch offices. Remittances which are unclaimed
when a period of ten months expires, counting from the date of delivering the return-remittance notice to
the remitters, shall be turned over to the state treasury.

Article 25. In posting and delivering postal materials, postal codes shall be adopted gradually, and specific pertinent
measures shall be formulated by the competent department of postal services under the State Council.

CHAPTER V TRANSPORTATION, CUSTOMS EXAMINATION AND QUARANTINE INSPECTION OF POSTAL MATERIALS

Article 26. Transportation units operating railways, highways, waterways and airlines shall all have the responsibility of
carrying and transporting postal materials, and shall ensure priority to transporting postal materials at preferential
freight charges.

Article 27. When postal enterprises transfer postal materials in railway stations, airports and ports, transportation units
concerned shall make coordinated arrangement of space and in-and-out passageways for loading and unloading postal materials.

Article 28. Ships with special postal marks, postal vans and postal staff shall be given priority in entering and departing ports and
crossing on ferries. Postal vehicles with special postal marks which need to pass through a lane closed to traffic
or to stop in no-parking sections of the road shall be verified and approved by the competent department concerned for passing
or parking.

Article 29. When transported by sea, postal materials shall not be included in arrangements for sharing common sea losses.

Article 30. Postal enterprises shall not post or deliver international postal articles that are not examined and allowed to pass
by the Customs. The Customs shall supervise the entry and exit, opening, sealing and dispatching of international
mail bags. Postal enterprises shall inform the Customs of their business hours in advance, and the Customs shall promptly
send officials to supervise on-the-spot checking and examination.

Article 31. Postal materials that are subject to health and quarantine inspections or animal and plant quarantine inspections according
to law shall be sorted out and quarantined under the charge of quarantine offices; no transportation and delivery shall
be conducted by postal enterprises without a permit from a quarantine office.

CHAPTER VI COMPENSATION FOR LOSSES

Article 32. Users may present receipts and inquire, within one year counting from the date of the posting or remitting, about vouchered
postal materials and remittances which they handed in for posting or remitting at the postal enterprises or their
branch offices that took in the postal materials or accepted the remittances. Postal enterprises or branch offices shall
inform inquirers of the results of inquiry within the time limit set by the competent department of postal services
under the State Council.

If no result is found within the time limit for responding to the inquiry, postal enterprises shall make compensation
first or take remedial measures. Within a year counting from the date of making such compensation, if it is ascertained
that the circumstance for which the compensation was made conforms with either item 2 or item 3 of Article 34 of
this Law, the postal enterprises shall have the right to recall the compensation.

Article 33. For losses, damage, destruction or missing contents of vouchered postal materials, postal enterprises shall make
compensation or take remedial measures according to the following stipulations:

(1) For registered mail, compensation shall be made according to standard amounts formulated by the competent department
of postal services under the State Council.

(2) For insured postal materials which are lost or totally damaged or destroyed, compensation shall be made
according to the insurance coverage. For missing contents or partial damage or destruction of insured postal materials,
compensation shall be made according to the actual losses of the postal materials, based on the ratio between the insurance
coverage and the whole value of the postal materials.

(3) For uninsured postal parcels, compensation shall be made according to the actual damages due to loss
of such postal parcels, but the maximum compensation shall not exceed the amount formulated by the competent department
of postal services under the State Council.

(4) For other types of vouchered postal materials, compensation shall be made or remedial measures taken according
to the measures provided for by the competent department of postal services under the State Council.

Article 34. Postal enterprises shall not be held liable for compensation, if one of the following situations occurs:

(1) losses of ordinary postal materials;

(2) losses of vouchered postal materials caused by the user or due to some characteristic of the posted articles per se;

(3) losses of vouchered postal materials, other than postal remittances and insured postal materials caused by force
majeure; and

(4) users failing to inquire about or demand compensation at the end of one year, counting from the date of handing in
or posting the vouchered postal materials or making the remittance.

Article 35. If disputes over compensation for losses occur between users and postal enterprises, users may request the competent department
of postal services of higher levels to settle; users who refuse to accept the settlement thereof may file lawsuits with
the people’s court; users may also file lawsuits with the people’s court directly.

CHAPTER VII PENALTY PROVISIONS

Article 36. Persons who infringe upon the citizens’ right to freedom of correspondence by concealing, destroying, discarding or illegally
opening mail of another person, where circumstances are serious, shall be investigated for criminal liability
according to the provisions of Article 149 of the Criminal Law of the People’s Republic of China, and those whose acts
are not serious enough for criminal punishment shall be punished according to the provisions of Article 22 of Regulations
of the People’s Republic of China on Administrative Penalties for Public Security.

Article 37. Postal personnel who without permission open or conceal, destroy or discard postal materials shall be investigated
for criminal liability in accordance with Paragraph 1 in Article 191 of the Criminal Law of the People’s Republic of China.

Those who commit the crime specified in the preceding provision and also steal property therein shall be given a heavier
punishment for the crime of embezzlement in accordance with Paragraph 2 in Article 191 of the Criminal Law of the People’s
Republic of China.

Article 38. Persons who intentionally damage or destroy public postal facilities such as mailboxes, where such acts are not serious
enough for criminal punishment, shall be punished in accordance with the provisions of Article 25 of Regulations
of the People’s Republic of China on Administrative Penalties for Public Security, and where circumstances are
serious, such persons shall be investigated for criminal liability in accordance with the provisions of Article
156 of the Criminal Law of the People’s Republic of China.

Article 39. Postal personnel who refuse to handle the postal businesses which should be handled according to law or who intentionally
delay the delivery of postal materials shall be given administrative disciplinary sanction. Postal Postal personnel
who are derelict in their duties and bring about great loss to public property and the interests of the state and
the people shall be investigated for criminal liability in accordance with the provisions of Article 187 of
the Criminal Law of the People’s Republic of China.

Article 40. Persons who, in violation of provisions of Article 8 of this Law, handle the business of posting and delivering
mail or articles with characteristics of mail shall be ordered by industrial and commercial administrative authorities
to return the mail and other articles and the postal fees they have obtained from the senders, and a fine shall be
imposed on them.

Parties concerned who refuse to obey the decision of punishment may bring suits to the people’s court within 15 days
of receiving the penalty notice. If parties concerned neither bring suits to the people’s court nor implement the
decision after such time limit expires, the industrial and commercial administrative authorities shall apply to the people’s
court for mandatory enforcement.

CHAPTER VIII SUPPLEMENTARY PROVISIONS

Article 41. The meanings of the following terms used in this Law are:

(1) postal materials: referring to mail, printed matter, postal parcels, money orders, newspapers, periodicals, etc.
posted and delivered by postal enterprises.

(2) mail: referring to letters and postcards.

(3) ordinary postal materials: referring to the postal materials that postal enterprises and their branch
offices do not issue receipts for upon acceptance and posting, and do not request recipients to sign for on delivery.

(4) vouchered postal materials: referring to postal materials such as registered mail, postal parcels, insured postal
materials, etc. that the postal enterprises and their branch offices issue receipts for upon acceptance and posting,
and for which recipients are requested to sign on delivery.

(5) international postal articles: referring to printed matter and postal parcels posted and delivered between users
of the People’s Republic of China and users of foreign countries or regions.

(6) special postal articles: referring to postal date-marks, postal tongs for lead sealing and postal bags.

Article 42. If provisions of this Law contravene those of the international treaties concerning international postal affairs
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 43. The competent department of postal services under the State Council shall, in accordance with this Law, formulate
rules for its implementation, which shall go into effect after being submitted to and approved by the State Council.

Article 44. This Law shall go into effect on January 1, 1987.

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CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE MEASURES FOR RECEIVING COMPATRIOTS FROM TAIWAN WHO COME TO THE MAINLAND OF THEIR MOTHERLAND TO VISIT THEIR RELATIVES

POSTAL LAW

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