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STATE COUNCIL’S OFFICIAL REPLY CONCERNING THE RENAMING OF THE MARITIME ARBITRATION COMMISSION AS THE CHINA MARITIME ARBITRATION COMMISSION AND THE AMENDMENT OF ITS ARBITRATION RULES

Category  ARBITRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-06-21 Effective Date  1989-01-01  


THE State Council’s Official Reply Concerning the Renaming of the Maritime Arbitration Commission As the China Maritime Arbitration
Commission and the Amendment of Its Arbitration Rules

The Official Reply
CHINA MARITIME ARBITRATION COMMISSION ARBITRATION RULES (Adopted on
Chapter I  General Provisions
Chapter II  Arbitration Proceedings
CHINA MARITIME ARBITRATION COMMISSION ARBITRATION RULES
Chapter I  General Provisions
Chapter II  Arbitration Proceedings
Chapter III  Summary Proceedings
Chapter IV  Supplementary Provisions

(June 21, 1988)

The Official Reply

    China Council for the Promotion of International Trade:

    The State Council approves the renaming of the Maritime Arbitration
Commission of your Council as the China Maritime Arbitration Commission. The
existing relationship of its subordination remains unchanged.

    The Arbitration Rules of the China Maritime Arbitration Commission shall
be amended by your Council in accordance with China’s laws and the
international treaties concluded or acceded to by China and with reference to
international practice, and then promulgated for implementation after adoption
by your Council. Hereafter, any amendments to the Arbitration Rules shall be
made by your Council’s own decision.

CHINA MARITIME ARBITRATION COMMISSION ARBITRATION RULES (Adopted on
September 12, 1988 at the Third Session of the First National Congress of the
China Council for the Promotion of International Trade (China Chamber of
International Commerce))
Chapter I  General Provisions

    Section 1  Jurisdiction

    Article 1  The China Maritime Arbitration Commission (hereinafter referred
to as the Arbitration Commission) independently and impartially settles
maritime disputes by means of arbitration so as to protect the justified
rights and interests of the parties and promote shipping industry and foreign
economic and trade development.

    Article 2  Upon receiving written application of one of the disputing
parties and in accordance with written agreement concluded between the
parties, prior or subsequent to the occurrence of dispute, to refer their
dispute to the Arbitration Commission for arbitration, the Arbitration
Commission takes cognizance of:

    (1) disputes regarding remuneration for salvage services rendered by
sea-going vessels to each other or by a sea-going vessel to a river craft and
vice versa;

    (2) disputes arising from collisions between sea-going vessels or between
sea-going vessels and river craft or from damages caused by sea-going vessels
to harbour structures or installations;

    (3) disputes arising from chartering, agency, towage, raising, sale,
repairing and building of or in respect of sea-going vessel, carriage by sea
in virtue of contracts of affreightment, bills of lading or other shipping
documents, and marine insurance;

    (4) disputes regarding pollution damages to marine environmcnt;

    (5) other maritime disputes submitted for arbitration by agreement between
the parties.

    An arbitration agreement means the arbitration clause stipulated by the
parties in their contract, or agreements in writing concluded in other forms
to submit disputes for arbitration.

    The Arbitration Commission has power to decide on the validity of
arbitration agreement and the jurisdiction over arbitration cases.

    Section 2  Organization

    Article 3  The Arbitration Commission is composed of Chairman,
Vice-Chairmen and Commission members.

    The Chairman performs functions and duties given by these Rules and any
Vice-Chairman, if authorized by the Chairman, may perform the functions and
duties of the Chairman.

    Under the Arbitration Commission, a Secretariat is established to handle
the day-to-day work of the Arbitration Commission.

    Article 4  The Arbitration Commission maintains a panel of arbitrators.
The arbitrators are selected and appointed by the China Council for the
Promotion of International Trade (China Chamber of International Commerce)
from among Chinese and foreign persons with relevant expertise and practical
experience.

    Article 5  The Arbitration Commission is located in Beijing. The
Arbitration Commission may, according to the requirement of development of
arbitration business, establish sub-commissions in other places within the
territory of China.
Chapter II  Arbitration Proceedings

    Section 1  Application for Arbitration, Defence and Counterclaims

    Article 6  The Claimant must submit his Application for Arbitation to the
Arbitration Commission in accordance with the following requirements:

    (1) an Application for Arbitration in writing must be submitted to the
Arbitration Commission. The following must be specified in the Application for
Arbitration:

    (a) the name and address of the Claimant and those of the Respondent;

    (b) the arbitration agreement relied upon by the Claimant;

    (c) the Claimant’s claim and the facts and evidence on which his claim is
based.

    The Application for Arbitration shall be signed by the Claimant and/or the
attorney authorized by the Claimant.

    (2) when submitting an Application for Arbitration to the Arbitration
Commission, relevant documentary evidence on which the Claimant’s claim is
based shall accompany the Application for Arbitration.

    (3) the Claimant shall appoint an arbitrator from among the Panel of
Arbitrators of the Arbitration Commission or authorize the Chairman of the
Arbitration Commission to make an appointment on his behalf.

    (4) the Claimant shall pay an arbitration fee in advance to the
Arbitration Commission according to the Arbitration Fee Schedule attached to
these Rules.

    Article 7  After receipt of the Application for Arbitration and its
attachments and when the Arbitration Commission, after examination, deems that
the Claimant has completed the formalities required for arbitration, the
Arbitration Commission shall immediately mail to the Respondent one copy each
of the Claimant’s Application for Arbitration and its attachments as well as
the Arbitration Rules and the Panel of Arbitrators of the Arbitration
Commission.

    Article 8  The Respondent shall, within 20 days after receipt of the
Application for Arbitration, appoint an arbitrator from among the Panel of
Arbitrators of the Arbitration Commission, or authorize the Chairman of the
Arbitration Commission to make an appointment on his behalf and shall, within
45 days after receipt of the Application for Arbitration, submit his defence
and relevant documentary evidence to the Arbitration Commission.

    Article 9  The Respondent shall file with the Arbitration Commission his
counter-claim, if any, in connection with the case taken cognizance of by the
Arbitration Commission, within the time limit as specified in Article 8 for
the submission of his defence. The Respondent must state, in his
counter-claim, his claim and the facts and evidence on which his claim is
based and attach relevant documentary evidence to his counter-claim.

    When filing a counter-claim, the Respondent must pay an arbitration fee in
advance according to the Arbitration Fee Schedule attached to these
Arbitration Rules.

    Article 10  The Arbitration Commission has discretion to ask the
Respondent to pay in advance a part of arbitration fees when it deems it
necessary.

    Article 11  When submitting an Application for Arbitration, defence,
counter-claim, relevant documentary evidence and other documents to the
Arbitration Commission, the parties shall provide duplicate copies as many as
the number of the other party/parties and the arbitrators, of whom the
arbitration tribunal is composed.

    Article 12  The parties may authorize attorneys to confer with the
Arbitration Commission on matters relating to arbitration. Such attorneys may
be citizens of China or foreign citizens. The authorized attorney must produce
a Power of Attorney to the Arbitration Commission.

    Article 13  The Arbitration Commission may, pursuant to the request of the
parties and in accordance with the Chinese law, apply to the Chinese court in
the place where the property of the Respondent(s) is or in the place where the
arbitration institution is located for a decision in respect of taking
preservative measures.

    Section 2  Composition of Arbitration Tribunal

    Article 14  After each of the two parties has chosen one arbitrator from
among the Panel of Arbitrators of the Arbitration Commission or the Chairman
of the Arbitration Commission has made such an appointment under the
authorization by the party/parties, the Chairman of the Arbitration Commission
shall appoint a third arbitrator from among the Panel of Arbitrators of the
Arbitration Commission as the presiding arbitrator to form an arbitration
tribunal to hear the case.

    Article 15  Both parties may jointly appoint or authorize the Chairman of
the Arbitration Commission to appoint one arbitrator from among the Panel of
Arbitrators of the Arbitration Commission as a sole arbitrator to form an
arbitration tribunal to hear the case alone.

    If both parties have agreed on the appointment of a sole arbitrator to
hear their case alone but failed to agree on the choice of such a sole
arbitrator within 20 days as from the date on which the Respondent receives
the Application for Arbitration or as from the date on which both parties
reach an agreement to have their case heard by a sole arbitrator, the Chairman
of the Arbitration Commission shall appoint the sole arbitrator.

    Article 16  If the Respondent fails to appoint and fails to authorize the
Chairman of the Arbitration Commission to appoint an arbitrator according to
Article 8 of these Rules, the Chairman of the Arbitration Commission has the
power to appoint an arbitrator for the Respondent.

    Article 17  When there are two or more Claimants and/or Respondents in an
arbitration case, the Claimants’ side and/or the Respondents’ side shall each,
through consultation, appoint one arbitrator from among the Panel of
Arbitrators of the Arbitration Commission. If the Claimants’ side fails to
make such appointment at the time when the Claimants submit their Application
for Arbitration and/or Respondenls’ side is unable to appoint one arbitrator
within 20 days as from the date on which the last Respondent receives the
Application for Arbitration, the appointment shall be made by the Chairman of
the Arbitration Commission.

    Article 18  Any appointed arbitrator having personal interest in the case
shall himself request the Arbitration Commission for withdrawal from his
office and the parties have the right to make a request in writing to the
Arbitration Commission for a withdrawal of the arbitrator from his office.

    Article 19  A party who intends to challenge an arbitrator must put
forward his challenge before the first oral hearing of the case. If the
grounds for challenge come out or become aware of after the first oral
hearing, the challenge may be raised before the conclusion of the last hearing.

    Article 20  The Chairman of the Arbitration Commission shall decide on the
challenge.

    Article 21  If an arbitrator cannot perform his duty due to withdrawal or
other reasons, a substituted arbitrator shall be appointed in accordance with
the procedure pursuant to which the original arbitrator was appointed.

    Section 3  Hearing

    Article 22  The arbitration tribunal shall hold oral hearings to hear the
case. However, at the request of the parties or with their consent, oral
hearings may be omitted and the arbitration tribunal may examine the case and
make an award on the basis of documents only.

    Article 23  The date of oral hearing shall be decided by the arbitration
tribunal in consultation with the Secretariat of the Arbitration Commission
and the notice of hearing shall be communicated to the parties 30 days before
the date of hearing. A party having justified reasons may request for
postponement of the date of hearing. But his request must be communicated to
the Secretariat of the Arbitration Commission 12 days before the date of
hearing unless unforeseeable special circumstances occur. The Seretariat shall
inform the arbitration tribunal of his request and the arbitration tribunal
shall decide thereon, in consultation with the Secretariat.

    Article 24  The cases taken cognizance of by the Arbitration Commission
shall be heard in the place where the Arbitration Commission is located and
may, with the approval of the Chairman of the Commission, be heard in other
places.

    Article 25  The arbitration tribunal shall not hear cases in open
sessions. If both parties request hearings in open sessions, the arbitration
tribunal shall decide thereon.

    Article 26  The parties shall give evidence for the facts on which their
claim or defence is based. The arbitration tribunal may, if it deems it
necessary, make investigation and collect evidence on its own initiative.

    Article 27  The evidence shall be examined and approved by the arbitration
tribunal.

    Article 28  The arbitration tribunal may consult experts or appoint
appraisers for the clarification of special questions relating to the cases.
Such experts and appraisers may be Chinese or foreign organizations or
citizens.

    Article 29  Should one of the parties or his attorney fail to appear at
the hearing, the arbitration tribunal may proceed with the hearing and make an
award by default.

    Article 30  During hearings, the Secretariat of the Arbitration Commission
shall take records in writing and/or tape-recordings and the arbitration
tribunal may, if it deems it necessary, order the parties and/or their
attorneys, witnesses and/or other persons involved to sign the records taken.

    Article 31  If both parties reach a settlement by themselves of a case
under the cognizance of the Arbitration Commission, the Claimant shall timely
request for withdrawal of the case. Dismissal of the case shall be decided by
the Chairman of the Arbitration Commission before an arbitration tribunal is
formed and by the arbitration tribunal after the arbitration tribunal is set
up.

    If the party or the parties refer the dismissed case again to the
Arbitration Commission for arbitration, the Chairman of the Arbitration
Commission shall decide whether to accept the reference or not.

    Section 4  Award

    Article 32  The arbitration tribunal shall render an arbitral award within
45 days after the closing of examination and hearing.

    Article 33  Where a case is heard by an arbitration tribunal composed of
three arbitrators, the arbitral award shall be decided by the majority of the
arbitrators and the minority opinion can be written down in the record and
docketed into the file.

    Article 34  The arbitration tribunal shall state the reasons upon which
the arbitral award is based unless the award is made in accordance with the
Article 37. The arbitral award shall be signed by all or majority of the
arbitrators sitting in the arbitration tribunal and shall contain the date and
place on and in which the arbitral award is made.

    Article 35  The arbitration tribunal may, if it deems it necessary or the
parties so request and it agrees, make an interim, interlocutary or partial
award on any issue of the case at any time in the process of arbitration.

    Article 36  The arbitral award is final and neither party may bring a suit
before a law-court or make a request to another organization for revising the
arbitral award.

    Article 37  The Arbitration Commission and the arbitration tribunal may
conciliate cases under their cognizance. In case a settlement agreement is
reached through conciliation, the arbitration tribunal shall make an award in
accordance with the contents of the settlement agreement reached by and
between both parties.

    Article 38  The parties must automatically execute the arbitral award
within the time limit specified in the award. If no time limit is specified in
the award, the parties shall carry out the award immediately.

    In  case either party fails to execute the award, the other party may,
pursuant to the Chinese law, apply to the Chinese court for enforcement of the
award or, according to the 1958 Convention on the Recognition and Enforcement
of Foreign Arbitral Awards or other international treaties that China has
concluded or acceded to, apply to the foreign court which has jurisdiction for
enforcement of the award.

    Chapter III  Supplementary Provisions

    Article 39  The Chinese language is the official language of the
Arbitration Commission. At the hearing, if the parties or their attorneys or
witnesses are not familiar with the Chinese language, the Secretariat of the
Arbitration Commission may provide them or the parties may bring with them
their interpreters.

    The Secretariat of the Arbitration Commission may, if it deems it
necessary, ask the parties to hand in corresponding translation copies in
Chinese or other languages of the various documents and evidential materials
submitted by the parties.

    Article 40  Any written communication from the Arbitration Commission to
the parties is deemed to have been received if it is delivered to the
addressee personally or if it is delivered at his place of business, habitual
residence or mailing address; or if none of these can be found after making a
reasonable inquiry, a written communication is deemed to have been received if
it is sent to the addressee’s last known place of business, habitual residence
or mailing address by registered letter or by any other means which provides
a record of the attempt to deliver it.

    Article 41  Apart from charging arbitration fees from the parties
according to the Arbitration Fee Schedule attached to these Rules, the
Arbitration Commission may collect from the parties other actual expenses
including arbitrators’ remuneration and their travel and boarding expenses for
dealing with the case and the fees and expenses for expert, apraisers and
interpreters appointed by the arbitration tribunal, etc.

    Certain fees and actual expenses incurred may be collected by the
Arbitration Commission if a case is withdrawn after the parties have reached
by themselves a settlement agreement.

    Article 42  These Rules shall also apply to the cases of dispute taken
cognizance of by the Sub-Commissions of the Arbitration Commission. In the
arbitration proceedings conducted by the Sub-Commissions of the Arbitration
Commission, the functions and duties of the Chairman and the Secretariat of
the Arbitration Commission under these Rules shall be performed by the
Chairmen and the Secretariats of the Sub-Commissions.

    Article 43  These Rules shall come into force as of January 1, 1989.

    Arbitration Fee Schedule


    Amount of Claim (RMB)              
Amount of Fee (RMB)

    100,000 Yuan or less              6%
of the amount of claim, minimum 2,000

                                      Yuan

    100,000 Yuan to 500,000 Yuan      6,000 Yuan plus 4% of the excess over

                                      100,000  Yuan

    500,000 Yuan to 1,000,000 Yuan    22,000 Yuan plus 3% of the excess over

                                      500,000
Yuan

    1,000,000 Yuan to 5,000,000 Yuan  37,000 Yuan plus 1.5% of the excess over

                                      1,000,000
Yuan

    5,000,000 Yuan or more            97,000 Yuan
plus 0.7% of the excess over

                                      5,000,000
Yuan


    If no amount of claim is stated when applying for arbitration, the amount
of arbitration fees shall be determined by the Secretariat of the Arbitration
Commission.

    If the arbitration fee is charged in foreign currency, an amount of
foreign currency equivalent to the corresponding RMB value specified in this
Schedule shall be paid.

CHINA MARITIME ARBITRATION COMMISSION ARBITRATION RULES
(Revised and adopted by China Council for the Promotion of International Trade
on September 4, 1995)

Chapter I  General Provisions

    Section 1  Jurisdiction

    Article 1  These Rules are formulated in accordance with the Arbitration
Law of the People’s Republic of China, the provisions of relevant laws, and
the Decision, Circular and Official Reply of the State Council.

    Article 2  The China Maritime Arbitration Commission (formerly known as
Maritime Arbitration Commission of China Council for the Promotion of
International Trade, hereinafter referred to as the Arbitration Commission),
by means of arbitration, independently and impartially settles maritime
disputes arising from transportation, production and navigation conducted in
oceans, coastal waters and water areas adjacent to sea, either contractual or
non-contractual, so as to protect the justified rights and interests of the
parties and promote shipping industry at home and abroad and foreign economic
and trade development.

    The Arbitration Commission takes cognizance of the following cases of
maritime disputes:

    (1) disputes arising from salvage of vessels and general average;

    (2) disputes arising from collisions of vessels or from damages caused by
vessels to structures or installations at sea, in water areas adjacent to sea
or in harbours, or to sea-bed or underwater installations;

    (3) disputes arising from management, operation, chartering, mortgage,
agency, towage, raising, sale, repairing, building and dismantling of or in
respect of sea-going vessel/vessel on water, carriage by sea/water in virtue
of contracts of affreightment, bills of lading or other documents, and
marine/water insurance;

    (4) disputes regarding exploitation and utilization of marine resources
and pollution damages to marine environment;

    (5) disputes arising from agency contracts for carriage of goods,
contracts for the supply of vessel materials, contracts of employment of
foreign crew or contracts of fishing production or fishery;

    (6) other maritime disputes submitted for arbitration by agreement between
the parties.

    Article 3  The Arbitration Commission takes cognizance of cases upon
receiving written application of one of the disputing parties and in
accordance with written agreement concluded between the parties, prior or
subsequent to the occurrence of dispute, to refer their dispute to the
Arbitration Commission for arbitration.

    An arbitration agreement means the arbitration clause stipulated by the
parties in their contract, or an agreement in writing concluded in other forms
to submit disputes for arbitration.

    Article 4  The Arbitration Commission has power to decide on the existence
and validity of arbitration agreement and the jurisdiction over arbitration
cases. If the parties dispute over the validity of the arbitration agreement,
the people’s court shall decide on the validity when one of the parties applies
to the Arbitration Commission for decision on the validity and another party
applies to the people’s court for decision.

    Article 5  An arbitration clause in a contract should be deemed as a
clause separate and independent from other clauses of the contract, and an
arbitration agreement attached to a contract also be deemed as one part
separate and independent from other clauses of the contract. The
modification, rescission, termination, annulment or invalidity, existence or
not of such a contract cannot prejudice the effect of the arbitration clause
or arbitration agreement.

    Article 6  Defence to the arbitration agreement and/or the jurisdiction
over an arbitration case shall be submitted prior to the first hearing of the
arbitration tribunal; defence to the jurisdiction over a case examined on the
basis of documents only shall be submitted prior to the first substantial
defence.

    Article 7  If any party agrees to refer his dispute to the Arbitration
Commission, he is deemed to accept the arbitration under these Rules.

    Section 2  Organization

    Article 8  The Arbitration Commission has one Honorary Chairman and
Consultants.

    Article 9  The Arbitration Commission is composed of Chairman,
Vice-Chairmen and Commission members. The Chairman performs functions and
duties given by these Rules and any Vice-Chairman, if authorized by the
Chairman, may perform the functions and duties of the Chairman.

    Under the Arbitration Commission, a Secretariat is established to handle
the day-to-day work of the Arbitration Commission under the leadership of the
Secretary of the Arbitration Commission.

    Article 10  The Arbitration Commission maintains a panel of arbitrators.
The arbitrators are selected and appointed by the Arbitration Commission from
among Chinese and foreign persons with expertise and practical experience in
navigation, carriage by sea, foreign trade, insurance, law and other fields.

    Article 11  The Arbitration Commission is located in Beijing. The
Arbitration Commission may, according to the requirement of development of
arbitration business, establish sub-commissions in other places within the
territory of China.
Chapter II  Arbitration Proceedings

    Section 1  Application for Arbitration, Defence and Counterclaim

    Article 12  The arbitration proceedings commence from the date on which
the Arbitration Commission issues the Arbitration Notice.

  &nbsp

CIRCULAR OF THE STATE COUNCIL CONCERNING THE EXTENSION OF THE LIMITS OF POWER VESTED WITH THE INLAND PROVINCES, AUTONOMOUS REGIONS, MUNICIPALITIES SEPARATELY LISTED IN THE STATE PLAN AND THE DEPARTMENTS CONCERNED UNDER THE STATE COUNCIL IN EXAMINING AND APPROVING FOREIGN INVESTMENT ABSORPTION

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-07-03 Effective Date  1988-07-03  


Circular of the State Council Concerning the Extension of the Limits of Power Vested With the Inland Provinces, Autonomous Regions,
Municipalities Separately Listed in the State Plan and the Departments Concerned under the State Council in Examining and Approving
Foreign Investment Absorption



(July 3, 1988)

    With a view to further implementing the policy of opening to the outside
world and to promoting the all-round development of the national economy, the
State Council has decided to appropriately extend the limits of power vested
with the inland provinces, autonomous regions, and municipalities separately
listed in the state plan, the relevant ministries and commissions under the
State Council, and the State Bureau of Building Materials Industry, the State
Administration for Medicine, the State Bureau of Technology Supervision, the
State Administration for Environmental Protection, the Civil Aviation
Administration of China, the National Tourism Administration, the National
Bureau of Oceanography, the National Meteorological Bureau, the State
Seismological Bureau, and the Chinese Academy of Sciences in examining and
approving foreign investment. With respect to productive projects developed
by absorbing foreign investments, provided these projects are in conformity
with the investment orientation stipulated by the state, their conditions of
construction and productive operations as well as their foreign exchange
income and expenditure do not require comprehensive balance to be conducted
by the state, and the export of their products does not involve export quota
or administration of export licences, the present limits of authority vested
with the aforesaid localities and departments in examining and approving
projects with a total amount of investment of five million U.S. dollars or
below each shall be extended to ten million U.S. dollars or below each. After
approval, the projects shall be reported to the State Planning Commission for
the record.

    Where enterprises with foreign investments are set up by people’s
organizations, their applications shall be examined and approved by the
province, autonomous region, municipality directly under the Central
Government, or municipality separately listed on the state plan, where the
said enterprises are located.

    This Circular shall become effective as of the date of promulgation.?






CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON THE APPROVAL AND TRANSMISSION OF A REPORT SUBMITTED BY THE NATIONAL TOURISM ADMINISTRATION CONCERNING THE STRENGTHENING OF TOURIST WORK

Category  TOURISM Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-12-21 Effective Date  1988-12-21  


Circular of the General Office of the State Council on the Approval and Transmission of a Report Submitted by the National Tourism
Administration Concerning the Strengthening of Tourist Work

The Circular
SUGGESTIONS CONCERNING THE STRENGTHENING OF TOURIST WORK

(December 21, 1988)

The Circular

    The Report, “Suggestions Concerning the Strengthening of Tourist Work”,
submitted by the National Tourism Administration, has been approved by the
State Council and is hereby transmitted to you for implementation in the light
of the actual conditions of the respective localities and departments.

    The tourist industry is a comprehensive undertaking which involves
departments such as aviation, communications, culture, construction, light
industry, textile industry, and commerce. All the departments concerned shall
coordinate and support each other and make joint efforts to promote the sound
and coordinated development of tourism in our country.
SUGGESTIONS CONCERNING THE STRENGTHENING OF TOURIST WORK

    Since the conclusion of the Third Plenary Session of the Eleventh Central
Committee of the Communist Party of China, under the guidance of the policy of
reform and opening to the outside world, tourism has been developing very
rapidly in our country; and it has played an active part in increasing our
country’s non-trade foreign exchange earnings, in boosting international trade
and cultural exchange, and in promoting the mutual understanding and
friendship between peoples throughout the world. At present, our country
possesses a fairly good foundation for the development of tourism and the
necessary conditions for speeding up such development. The general trend of
continuous and steady development of the international tourism is also
favourable to us for promoting our tourist industry. In order to further
strengthen the coordinated administration of tourist work and strive for a
greater development of our tourist industry, we hereby advance the following
suggestions:

    1. Strengthening the administration of the tourist industry and doing a
good job in the reform of tourism administration organs at various levels. The
people’s governments of various provinces, autonomous regions, and
municipalities directly under the Central Government, as well as tourist
cities, especially those favourite haunts with relatively rich tourist
resources, shall, in accordance with the principles of “separating Party
organs from government organs”, “separating government organs from
enterprises”, and “simplified and unified administration”, and in the light of
local conditions and needs of the development of international and domestic
tourism, set up and improve the tourism administration organs by combining
them with the reform of local setups and making overall arrangements. The
tourism administration departments at various levels shall make timely and
specific adjustments to their responsibilities, clearly define their scope of
duties, and rationally deploy their organizations. In order to effect the
separation of government organs from enterprises, it is imperative to lay
stress on the following measures: (1) The persons in charge of the tourism
administration departments shall not assume concurrently posts of manager of
local tourist companies, tourist agencies, or hotels; (2) The tourism bureaus
shall be completely separated from the enterprises directly under them in the
administration of such aspects as personnel, finance, and materials, so that
the tourist enterprises shall carry on their business operations
independently, and assume sole responsibility for their profits and losses;
(3) The expenses for the tourism administration departments at various levels
to conduct tourist business operations shall be appropriated by the finance
departments at various levels. In order to strengthen the connections between
tourism administration departments and tourist operating units, the National
Tourism Administration shall, in accordance with the requirements of work,
make necessary adjustments with regard to the “China Association of Tourism”
and the “China Association of Tourist Hotels”, and establish thereby the
“China Association of Domestic Tourism”, which shall assist the competent
authorities for tourism in coordinating relations with other departments
concerned and in studying and providing guidance to the development of
domestic tourism.

    2. Further clarifying the scope of responsibility and the limits of powers
of the tourist administration bureaus, and establishing a system of graded
administration. The subordinative relationship of all the tourist enterprises
and tourist institutions throughout the country – including institutes and
schools of tourism, research institutes of tourism, tourist agencies that are
engaged in the international and domestic tourist industries; various
categories of tourist hotels, guest houses, restaurants, and tourist
automobile and vessels companies for the reception of foreign tourists; key
tourist scenic spots, tourist attractions, and shops selling tourist goods
that are open to foreigners; tourist representative offices abroad, as well as
the tourist representative offices established in China by foreign tourist
agencies – to the competent administrative authorities directly over them
shall remain unchanged; but the tourist bureau shall, in accordance with the
provisions of the State, implement the system of trade administration,
inspection, and supervision. The tourism administration departments at various
levels shall treat tourist enterprises of various categories equally without
discrimination. The National Tourism Administration shall, in accordance with
the aforesaid principle, and working in coordination with other departments
concerned, make a study of, and work out , ways to implement the system of
graded administration and effect a stricter procedure in examining and
approving the establishment of tourist enterprises. All the tourist
enterprises and tourist institutions shall, without exception, subject
themselves to trade administration and supervision.

    3. Deepening the reform in a comprehensive way and implementing the
responsibility system of contracted business operations. The tourism
administration departments at various levels and the departments that run
tourist enterprises shall, taking into consideration the actual conditions of
the local areas and of their own departments, and in accordance with the
pertinent provisions of the State, make a study of, and submit a report on,
a specific plan and practicable procedures for the implementation of the
responsibility system of contracted business operations in state-run and
collectively-run tourist enterprises and, at the same time, formulate other
provisions to perfect such a system. In the course of implementing the
aforesaid responsibility system of contracted business operations, different
forms of contracted business operations may be adopted, in accordance with the
differences in the nature of business operations (tourists agencies, tourist
hotels specialized in receiving foreign guests, fleets of tourist automobiles
and vessels) and business operations of different conditions (enterprises with
profits, enterprises that have to repay loans, enterprises suffering losses
and with a deficit). All those enterprises that have foreign exchange earnings
shall carry out a contracted target for earning foreign exchange, and work out
a corresponding method for the administration of the settlement of the
exchange. Enterprises, which possess the necessary conditions, may gradually
set up risk funds for themselves. The contractor shall be finally determined,
through various kinds of competition, such as by inviting tenders, or by
advertising for employment. The contract period shall, in principle, be no
shorter than 3 years. Once a contract is confirmed and signed, the two
parties, the contractor and the party awarding the contract, shall execute the
contract strictly, and under no circumstances shall it be violated. The
implementation of the responsibility system of contracted business operations
calls for a close integration of the improvement of enterprise management and
the promotion of reform in the internal administration system of enterprises,
and for further efforts in reforming and improving the labour wage system and
the policy of reward and punishment, in accordance with the principle of
combining responsibility, power, and profit.

    4. Reforming the administration system of tourist agencies. The three
backbone travel services – China International Travel Service, China Travel
Service, and China Youth Travel Service – shall be encouraged and supported to
develop towards the establishment of an integrated complex or enterprise
group. With respect to those tourist agencies of various categories that have
already been set up, the National Tourism Administration and local tourism
administration departments shall carry out assessment and rectification in
accordance with the provisions in Interim Regulations on the Administration of
Tourist Agencies and Rules of Implementation for Interim Regulations on the
Administration of Tourist Agencies. Tourist agencies of various categories
shall all carry out effectively the reform in the internal work of their
respective tourist agencies, further tap their potentials, so as to raise
standard of their operation and administration, and to improve the quality of
their services.

    5. Strengthening overseas tourist publicity and the endeavouring for
soliciting tourists, and striving to expand the international market for
foreign tourists. The National Tourism Administration shall make further
efforts in investigating and analysing the market for international tourists,
work out specific plans for the expansion of the said international market,
and take measures to put it into practice. Our resident representative
tourist offices abroad shall try their best to investigate into the market for
international tourists and carry out publicity work for soliciting visiting
tourists, take the responsibility to supervise the publicity and soliciting
endeavour carried out abroad by units in charge of liaison work with foreign
countries, actively make contacts with the institutions concerned, tourist
agencies and tourist wholesalers in countries where our representative tourist
offices are resident, and pay attention to collecting and feeding back
relevant information. Various resident representative tourist offices abroad
may, within the scope of law of the respective countries where they are
resident, and at their discretion, undertake some paid services or other
business operational activities.

    Various units in charge of liaison work with foreign countries, while
canvassing among foreigners for tourists itineraries, shall work in close
coordination and take the interests of the whole country into account. They
may not play down the others and compete against them by offering prices lower
than the protective price. Various units in charge of liaison work with
foreign countries shall be encouraged to collaborate on a voluntary basis to
canvass jointly among foreigners. With respect to those who have violated
external liaison disciplines, the National Tourism Administration and the
local tourism administration departments shall, depending on the seriousness
of the cases, impose disciplinary sanctions, or economic penalty, on the
violators. In order to meet the needs of the development of the tourist
industry in our country, the outlay for conducting tourist publicity and
canvassing abroad may be increased with each passing year. From now on,
various units in charge of liaison work with foreign countries, when
canvassing jointly among foreigners may collect service charges; all units
that take part in the canvassing activities and derive benefits there from
shall pay the charges.

    6. Strengthening the macro-administration of those newly-built tourist
hotels that specialize in receiving foreign guests and promoting the reform of
hotel administration system. The tourism administration departments at various
levels shall conscientiously implement Interim Regulations on the Construction
and Administration of Storied Buildings, Halls, Hotels and Guest Houses,
promulgated by the State Council on September 22, 1988, and, working in
coordination with the local planning departments, carry out a checking-up on
the projects of local tourist hotels that specialize in receiving foreign
guests. From now on, in principle, no more high-grade tourist hotels that
specialize in receiving foreign guests shall be built in any place. In areas
less frequented than favourite tourist haunts, medium- and low-grade
hotels may be built, in accordance with the tourist market’s demand, and
depending on the actual circumstances, (a number of high-grade rooms may be
provided in a medium-grade hotel, if necessary). In such highly frequented
tourist cities as Beijing, Shanghai, Guangzhou, Guilin, Xi’an, and Hangzhou,
no new hotel construction projects with Chinese-foreign joint investment or
by Chinese-foreign cooperation shall, in principle, be approved. In accordance
with the guideline of Document No. 17 (1988) issued by the General Office of
the State Council, it shall be imperative to speed up the establishment of the
hotel administration company of our own country. In cases where necessity
arises for the building of new hotels in form of Chinese-foreign joint
venture or Chinese-foreign contractual joint venture, the cases shall be
handled in accordance with the provisions in Document No. 101 (1986) and
Document No. 32 (1988), issued by the General Office of the State Council.
As regards the tourist scenic spots and tourist attraction, built and
faciliated with, or partly with the investment of the National Tourism
Administration, the local tourism administration departments shall take part
in the leadership and administration of the aforesaid tourist places.

    Promoting the reform in the hotel administration system. There are now
specific standards for the “star-rating” of the country’s tourist hotels that
specialize in receiving foreign guests; the rating process shall be speeded up
and strive to complete the task by the end of next year. The system for
issuing and revoking business licence for tourist hotels that specialize in
receiving foreign guests (including various categories of tourist agencies and
tourist automobiles and vessels companies) shall be gradually set up. With
respect to those tourist enterprises that have committed serious illegal acts,
the competent authorities for tourism may suggest to the relevant
administrative departments for industry and commerce that the business
licences of the aforesaid enterprises be revoked.

    7. Carrying out, with caution, the reform in tourist prices, and
strengthening the administration of the receipts and expenditures in foreign
exchange as well as the settlement of exchange relating to tourist
enterprises. The problem of tourist prices has a direct bearing on the
interests and reputation of the State; therefore it is imperative to conduct
careful investigation and studies before taking cautious steps in the reform,
and submit the reform plan to higher authorities for approval. It is necessary
to reform the price structure so as to fix the tourist prices more
scientifically and reasonably by taking into full consideration the necessity
to meet the challenge of international competition, and in accordance with the
special features of different tourist itineraries and different seasons (from
now on, the National Tourism Administration and the State Administration for
Commodity Prices shall chiefly fix the ceiling price and the floor price – the
protective price). Once the price principles are determined, the tourist
enterprises at various levels and of various categories shall execute them
strictly. Those who have violated the price discipline shall be dealt with
seriously.

    The National Tourism Administration shall, working in coordination with
such departments as the State Statistical Bureau, the State Administration of
Foreign Exchange Control, the Ministry of Finance, and the Bank of China,
strengthen the statistical work on the tourist enterprises’ receipts and
expenditures, and tighten the control of the foreign exchange receipts and
expenditures of the tourist enterprises, establish the system for the
settlement of tourist foreign exchange, and bring this work into line with the
State plan. It is imperative to formulate, through studies, the Measures for
Foreign Exchange Control in Tourism and the Measures for the Financial
Administration of Foreign Exchange in Tourism, and submit these two documents
to the State Council for approval before implementation so as to reverse as
early as possible the present situation of serious drain on foreign exchange
earnings from tourism.

    8. Developing vigorously the manufacture and marketing of tourist goods
and tourist souvenirs, increasing the volume of the foreign exchange earning
from tourism in our country and improving its economic results. The
manufacture and marketing of tourist goods and tourist souvenirs constitute an
important component part of the tourist industry, and is also an important
channel for earning foreign exchange for the State. It is imperative to
establish gradually a nationwide network for the production and marketing of
tourist goods and tourist souvenirs. For the aforesaid purpose, the “China
Tourist Services Company” under the National Tourism Administration, the
“China Tourist Products Production and Supply Company” under the Ministry of
Light Industry, and the “China Friendship Services Company” under the Ministry
of Commerce shall be taken as the foundation; their leading role shall be
brought into full play, and their businesses shall be further expanded so that
they shall grow into complexes of enterprises specialized in different lines
of business, handling different assortments of tourist goods and tourist
souvenirs. These complexes of enterprises may establish, in a planned way, a
number of production bases for the production of tourist souvenirs, and a
number of research institutes for carrying on studies in the marketing
quotations of international tourist goods and tourist souvenirs and for
developing new products, so that scientific research and product development
will be combined in the integrated process of production-supply-marketing. It
is necessary to encourage various places, especially the key tourist areas, to
vigorously develop the production of tourist goods and tourist souvenirs that
are of national style with various local colours, to increase designs and
varieties, to expand channels for sources of goods, to improve sales service,
and to strengthen market administration. It is imperative to implement
conscientiously the provisions approved long ago by the State Council: “the
foreign exchange earned through the sales of tourist goods shall be deemed as
the foreign exchange earned by foreign trade” and to formulate, through
studies, specific measures for carrying out the said provisions; with respect
to those export goods which do not come under the licence control, it is
important to expand their sales to foreign tourists; the selling prices of
tourist goods and tourist souvenirs shall be handled flexibly in accordance
with the different conditions of goods supply, the international market
quotations, and the specific marketing policy pursued by the economic and
trade departments. The special raw and processed materials which are needed
for the development of the production of tourist goods and tourist souvenirs
and are in short supply in the country, shall be brought into the goods supply
channels handled by the departments of goods and materials at various levels;
those raw and processed materials that are imported solely by the State shall
be brought into the plan for importation executed by the State; the special
imported raw and processed materials needed shall be handled in accordance
with the pertinent provisions in Document No. 16 (1987) issued by the General
Office of the State Council. As Beijing, Shanghai, and Guangzhou are the three
main ports of entry and exit for overseas tourists, they shall be turned into
cities with sizable tourist shopping centres and good reputation in Asia.

    At present, some tourist hotels that specialize in receiving foreign
guests spend a large amount of foreign exchange in importing fitting-up
materials, sanitary utensils, machinery and electrical equipment, and spare
and component parts. In order to change this situation without delay, from now
on, all similar products which can already be manufactured in our country and
reasonably priced and whose quality and delivery time can be guaranteed shall
cease to be imported. We suggest that a catalogue of products to be restricted
in importation be put forward by the departments concerned and the importation
of the aforesaid products shall be examined and approved by the administrative
departments of the trades concerned.

    9. Strengthening the building of a contingent of tourist personnel and
paying close attention to the education in professional ethics and
professional discipline. It is imperative to improve the educational work in
schools and institutes of tourism and the professional training of tourist
personnel, especially, the training of qualified specialized personnel at
various levels and of different categories. It is also imperative to intensify
the education in professional ethics and professional discipline, so as to
improve the political and professional quality of tourist personnel, to foster
a sense of honour and responsibility, to oppose all kinds of unhealthy
tendencies, to improve the quality of tourist services and offer high-quality
services, thus enabling our tourist industry to establish good international
reputation and image.

    10. Strengthening the coordination between different departments
concerned. The tourist industry is a comprehensive undertaking, the
development of which relies not only on its own work, but also on the close
coordination with such organizations as the departments of aviation,
communications, city construction, gardens and parks, historical relics,
culture, light industry, textile industry, commerce, and religious affairs.
The tourist industry is also a trans-regional trade, and a large amount of
organizational work shall be done by the local departments; a harmonious
coordination is thus indispensable. Tourist departments at various levels
shall strengthen their coordination with other departments concerned and make
joint efforts in promoting a sound and co-ordinated development of the tourist
industry in our country.





REGULATIONS ON THE PAYMENT OF ROYALTY FOR THE EXPLOITATION OF OFFSHORE PETROLEUM RESOURCES

Regulations on the Payment of Royalty for the Exploitation of Offshore Petroleum Resources

     (Effective Date:1989.01.01–Ineffective Date:)

   Article 1. In the interest of developing the national economy, expanding international economic and technological cooperation and encouraging
the exploitation of offshore petroleum resources in China, these Regulations are formulated in accordance with the “Regulations of
the People’s Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises”.

   Article 2. Any Chinese and foreign enterprises engaging, in accordance with the laws, in exploitation of offshore petroleum resources within
the inland water, territorial sea and continental shelf of the People’s Republic of China and in all sea area within the limits of
national jurisdiction of the People’s Republic of China shall pay royalty in accordance with these Regulations.

   Article 3. Royalty shall be computed and paid on the basis of the Annual Gross Production of Crude Oil or Natural Gas of each oil or gas field
at the following rates:

1. Crude Oil:

Royalty shall be exempted on the portion of the Annual Gross Production of Crude Oil not exceeding one million tonnes;

Royalty rate for the portion of the Annual Gross Production of Crude Oil within one million tonnes to 1.5 million tonnes shall be
4%;

Royalty rate for the portion of the Annual Gross Production of Crude Oil within 1.5 million tonnes to 2 million tonnes shall be 6%;

Royalty rate for the portion of the Annual Gross Production of Crude Oil within 2 million tonnes to 3 million tonnes shall be 8%;

Royalty rate for the portion of the Annual Gross Production of Crude Oil within 3 million tonnes to 4 million tonnes shall be 10%;
and

Royalty rate for the portion of the Annual Gross Production of Crude Oil exceeding four million tonnes shall be 12.5%.

2. Natural Gas

Royalty shall be exempted on the portion of the Annual Gross Production of Natural Gas not exceeding 2 billion cubic meters;

Royalty rate for the portion of the Annual Gross Production of Natural Gas within 2 billion cubic meters to 3.5 billion cubic meters
shall be 1%;

Royalty rate for the portion of the Annual Gross Production of Natural Gas within 3.5 Billion cubic meters to 5 billion cubic meters
shall be 2%; and

Royalty rate for the portion of the Annual Gross Production of Natural Gas exceeding five billion cubic meters shall be 3%.

   Article 4. Royalty for both Crude Oil and Natural Gas shall be paid in kind.

   Article 5. Royalty of Crude Oil and Natural Gas shall be collected and administered by the tax authorities.

Royalty for the Sino-foreign cooperative oil and/or gas field shall be first withheld by the operator of such oil and/or gas field
and handed over to the China National Offshore Oil Corporation which will be responsible for the royalty payment.

   Article 6. Royalty shall be calculated on annual basis and pre-payable periodically or on the basis of operation. The final settlement shall
be made after the end of each year. The timing for prepayment and settlement shall be determined by the tax authorities.

   Article 7. The operator of each oil and/or gas field shall provide to the tax authorities the production data of the said oil and/or gas field
and other related information required by the tax authorities within 10 days after the end of each quarter.

   Article 8. The withholding agent and paying agent shall make the royalty payment within the time limit prescribed by the tax authorities. The
tax authorities shall impose a late payment penalty of 1:1000 per day on the amount of the royalty in arrears, counting from the
first day on which the payment becomes overdue.

   Article 9. The tax authorities may, acting at their discretion, impose a penalty of less than Rmb5,000 on any operator of oil and/or gas field
who has violated the provisions of Article 7 hereof, by not submitting the royalty, the actual production data of the oil and/ or
gas field or relevant information required to the tax authorities in time. A penalty of less than five times of the royalty otherwise
payable shall be imposed on those who make false report on the actual production.

   Article 10. The definitions of the following terms as used in these Regulations are:

1. “Crude Oil” means solid and liquid hydrocarbons in their natural state, including any liquid hydrocarbons extracted from natural
gas except for methane (CH4).

2. “Natural Gas” means non-associated natural gas and associated natural gas in their natural state.

“Non-associated Natural Gas” means all gaseous hydrocarbons produced from gas reservoirs, including wet gas, dry gas and residue gas
remaining after the extraction of liquid hydrocarbons from wet gas.

“Associated Natural Gas” means all gaseous hydrocarbons produced in association with Crude Oil from oil reservoirs, including residue
gas remaining after the extraction of liquid hydrocarbons therefrom.

3. “Annual Gross Production of Crude Oil” means the total amount of Crude Oil produced from each oil field within the contract area
in each calendar year less the amount of crude oil used for petroleum operations and the amount of losses.

4. “Annual Gross Production of Natural Gas” means the total amount of natural gas produced from each oil field and/or gas field within
the contract area in each calendar year less the amount of natural gas used for petroleum operations and the amount of losses.

   Article 11. These Regulations shall go into effect from January 1, 1989.

    





ORGANIC LAW OF THE URBAN RESIDENTS COMMITTEES OF THE PEOPLE’S REPUBLIC OF CHINA

Organic Law of the Urban Residents Committees of the People’s Republic of China

(Adopted at the 11th Meeting of the Standing Committee of the Seventh National People’s Congress on December 26,
1989 and promulgated by Order No.21 of the President of the People’s Republic of China on December 26, 1989) 

Article 1  Pursuant to the Constitution, this Law is formulated with a view to improving the urban residents committees as an
institution, enabling urban residents to administer their own affairs in accordance with the law, promoting socialist democracy at
the grassroots level in the cities, and furthering socialist material development and the building of an advanced socialist culture
and ideology in urban areas. 

Article 2  An urban residents committee shall be a  mass organization for self-government at the grassroots level, in which
the residents manage their own affairs, educate themselves, and serve their own needs. 

The people’s government of a city not divided into districts or of a municipal district or an agency of such a people’s government
shall provide guidance, support and help for the residents committees in their work. The residents committees shall, on their part,
assist the above people’s government or agency in its work. 

Article 3  The tasks of a residents committee shall include:  

(1) publicizing the Constitution, the laws, the regulations and the state policies, safeguarding the lawful rights and interests
of the residents, educating the residents for the  fulfillment of their statutory obligations and for the protection of 
public property, and conducting various forms of activities for  the development  of an advanced socialist culture and
ideology; 

(2) handling the public affairs and public welfare services of the residents in the local residential area; 

(3) mediating disputes among the residents; 

(4) assisting in the maintenance of  public security; 

(5) assisting the local people’s government or its agency in its work related to the interests of the residents, such as public health,
family planning, special care for  disabled servicemen and for  family members of revolutionary martyrs and servicemen,
social relief, and juvenile education; and 

(6) conveying the residents’ opinions and demands and making suggestions to the local people’s government or its agency. 

Article 4  A residents committee shall  develop community service activities for the convenience and benefit of the residents 
and may also run relevant services. 

A residents committee shall manage its own property; no department or  unit may infringe upon its right of ownership of property.
 

Article 5  In an area where people from more than one nationality live, the residents committee shall educate the residents
for mutual assistance and mutual respect to enhance unity between different nationalities. 

Article 6  A residents committee shall generally be established for an area inhabited by 100-700 households on the basis of
the distribution  of  residents and on the principle of facilitating their self-government. 

The establishment or dissolution of a residents committee or a readjustment in the area covered by it shall be decided by the people’s
government of a city not divided into districts or of a municipal district. 

Article 7 A residents committee shall be composed of 5-9 members, including the chairman, the vice-chairman (vice-chairmen) and the
members. In an area where people from more than one nationality live, the residents committee shall include a member or members from
the nationality or nationalities with a smaller population. 

Article 8  The chairman, vice-chairman (vice-chairmen) and members of a residents committee shall be elected by all the residents
of a residential area who have the right to elect or by the representatives from all the  households; on the basis of the 
opinions of the residents,  they may also be elected by the elected  representatives of residents groups numbering 2-3
from each. The term of office of the residents committee shall be three years, and its members may continue to hold office when reelected. 

Any resident of an residential area who has reached the age of 18 shall have the right to elect and stand for election, regardless
of his ethnic status, race, sex, occupation, family background, religious belief, education, property status and length of residence,
with the exception of persons who have been deprived of political rights in accordance with the law. 

Article 9  The residents assembly shall be composed of residents at or above the age of 18. 

The residents assembly may be attended by all the residents at or above the age of 18 or by a representative or representatives of
each household; it may also be attended by the elected representatives of residents groups numbering 2-3 from each.  

The residents assembly shall be held only when it is attended by over half of the total number of the residents at or above the age
of 18, or of the representatives of the households, or of the representatives elected by the residents groups. Decisions of the residents
assembly shall be adopted by a simple majority of all the people present. 

Article 10  The residents committee shall be responsible to the residents assembly and report on its work to the latter. 

The residents assembly shall be convened and presided over by the residents committee. It shall be convened when proposed by over
one-fifth of the residents at or above the age of 18, by over one-fifth of the number of households, or by over one-third of the
number of residents groups. When important matters involving the interests of all the residents arise, the residents committee must
refer them to the residents assembly for decision through discussion. 

The residents assembly shall have the power to recall members of the residents committee and hold a by-election. 

Article 11 In making decisions, a residents committee shall apply the principle whereby the minority is subordinate to the majority. 

In its work a residents committee shall adopt a democratic approach and shall not resort to coercion or commandism. 

Article 12  Members of a residents committee shall observe the Constitution, the laws, the regulations and the state policies,
be fair in handling matters and serve the residents warmheartedly. 

Article 13  A residents committee shall, when necessary, establish sub-committees for people’s mediation, public security, public
health and other matters. Members of the residents committee may concurrently be members of the sub-committees. A residents committee
with a smaller population in its area may dispense with the sub-committees; instead, members of the residents committee shall have
a division of responsibilities for various types of work. 

Article 14  The residents committee may set up residents groups, the heads of which shall be elected by these groups. 

Article 15  Joint pledges of the residents shall be drawn up by the residents assembly through discussion, reported to the people’s
government of a city not divided into districts or of a municipal district or to an  agency of either of them for the record,
and implemented under the supervision of the residents committee. The residents shall observe the decisions of the residents assembly
and the joint pledges of the residents. 

The joint pledges of the residents shall not contravene the Constitution, the laws, the regulations and the state policies. 

Article 16  The funds needed by a residents committee for managing public welfare services in the residential area, upon decision
of the residents assembly through discussion, may be raised from the residents on a voluntary basis, and may also be raised from
beneficiary units in the residential area, subject to  approval by such units; the accounts of revenues and expenditures shall
be made public without delay for supervision by the residents. 

Article 17  The funds needed for the work of a residents committee and their sources, and the scope, standards and sources of
the financial subsidies for members of the residents committee shall be specified by the people’s government of a city not divided
into districts or of a municipal district, or by the people’s government at a higher level, and the money shall be provided by it.
With the approval of the residents assembly, appropriate subsidies may be granted by using some of the residents committee’s financial
revenues.  

The office promises for a residents committee shall be made available by the local people’s government through overall planning. 

Article 18  Persons who have been deprived of political rights in accordance with the law shall be included in residents groups.
The residents committee shall exercise supervision over them and give them ideological education. 

Article 19  State organs, public organizations, units of the armed forces, enterprises and institutions shall not join the organizations
of the residents committees in their localities, but they shall support the work of these residents committees. When the residents
committees in their localities discuss problems related to them and their presence becomes necessary, these units shall send representatives
to the meetings. In the meantime, these units shall abide by the relevant decisions of the residents committees and the joint pledges
of the residents. 

The staff and workers of the units specified in the preceding paragraph and their family members, and servicemen and dependents living
with them  shall join the residents committees in their residential areas; in areas where such families live in compact communities,
dependents committees may be established separately to assume the responsibilities of the residents committees and conduct their
work under the guidance of the people’s governments of cities not divided into districts or of municipal districts,  their agencies 
or the units they belong to. The funds needed for the work of the dependents committees, the financial subsidies for their members
and their office premises shall be provided by the units they belong to. 

Article 20  If a relevant department under the people’s government of a municipality or a municipal district, in its work, needs
the cooperation of a residents committee or one of its sub-committees, it shall seek the approval of the people’s government of the
municipality or of the municipal district or an agency of either of them, which shall make unified arrangements. The relevant departments
under the people’s government of a municipality or a municipal district may give professional guidance to the relevant sub-committees
of the residents committees.  

Article 21  This Law shall apply to the residents committees established in the localities under the people’s governments of
townships, nationality townships or towns. 

Article 22  Measures for the implementation of this Law shall be formulated, in accordance with this Law, by the standing committees
of the people’s congresses of provinces, autonomous regions and municipalities directly under the Central Government. 

Article 23  This Law shall go into effect as of January 1, 1990. The Organic Regulations of the Urban Residents Committees,
adopted by the Standing Committee of the National People’s Congress on December 31, 1954, shall be abrogated as of the same date.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






CIRCULAR OF THE STATE ADMINISTRATION FOR IMPORT AND EXPORT COMMODITY INSPECTION ON THE CERTIFICATION OF THE COMMODITY INSPECTION BUREAUS FOR THE MACHINES AND EQUIPMENTS WHICH ARE EVALUATED AS INVESTMENT BY THE FOREIGN-CAPITAL ENTERPRISES

The State Administration for Import and Export Commodity Inspection

Circular of the State Administration for Import and Export Commodity Inspection on the Certification of the Commodity Inspection Bureaus
for the Machines and Equipments which are Evaluated as Investment by the Foreign-capital Enterprises

GuoJianWu [1990] No.467

December 31, 1990

All the local bureaus of commodity inspection:

With regards to Article 29 of the Rules for the Implementation of Foreign-capital Enterprises Law of the Peopl’s Republic of China
which is distributed by the Decree No.1 of the Ministry of Foreign Economic Relations and Trade with approval of the State Council,
the machinery and equipments invested by the foreign-capital enterprises should be applied the local bureau of commodity inspection
for inspection and given the inspection report by it when they are arrived at Chinese port. The commodity listed in this provision
that belongs to “the import and export commodity inspected by the commodity inspection institutions prescribed by the other laws
and administrative regulations” under the Law of Commodity Inspection should be inspected and granted the certificate as the legal
commodity.



 
The State Administration for Import and Export Commodity Inspection
1990-12-31

 






SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE PUNISHMENT OF THE CRIME OF EXCAVATING AND ROBBING SITES OF ANCIENT CULTURE OR ANCIENT TOMBS

Category  CRIMINAL LAW Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  Invalidated
Date of Promulgation  1991-06-29 Effective Date  1991-06-29 Date of Invalidation  1997-10-01


Supplementary Provisions of the Standing Committee of the National People’s Congress Regarding the Punishment of the Crime of Excavating
and Robbing Sites of Ancient Culture or Ancient Tombs



(Adopted at the 20th Meeting of the Standing Committee of the Seventh

National People’s Congress on June 29, 1991, promulgated by Order No.48 of the
President of the People’s Republic of China on June 29, 1991, and effective
as of June 29, 1991)(Editor’s Note: This Decision has been invalidated by the
Criminal Law of the People’s Republic of China revised at the Fifth Session of
the Eighth National People’s Congress on March 14, 1997, and effective on
October 1, 1997)

    The 20th Meeting of the Standing Committee of the Seventh National
People’s Congress decides to make the following provisions supplementary to
the Criminal Law:

    Whoever excavates and robs a site of ancient culture or ancient tomb of
historical, artistic or scientific value shall be sentenced to fixed-term
imprisonment of not less than three years but not more than ten years, and may
concurrently be punished with a fine; if the circumstances are relatively
minor, the offender shall be sentenced to fixed-term imprisonment of not more
than three years or criminal detention, and may concurrently be punished with
a fine: and, under any of the following circumstances, the offender shall be
sentenced to fixed-term imprisonment of not less than ten years, or life
imprisonment or death, and shall concurrently be punished  with a fine or
confiscation of property:

    (1) Excavating and robbing a site of ancient culture or ancient tomb which
is designated as major sites to be protected for their historical and cultural
value at the national level or at the provincial level;

    (2) Being the ringleader of a gang engaged in excavating and robbing sites
of ancient culture or ancient tombs;

    (3) Excavating and robbing sites of ancient culture or ancient tombs for
many times;

    (4) Excavating a site of ancient culture or ancient tomb, and robbing
valuable cultural relics therein, or causing serious damage to valuable
cultural relics therein.

    All cultural relics seized from excavating and robbing sites of ancient
culture or ancient tombs shall be recovered.





REGULATIONS FOR THE IMPLEMENTATION OF COPYRIGHT LAW

Category  INTELLECTUAL PROPERTY RIGHT Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1991-05-30 Effective Date  1991-06-01  


Regulations for the Implementation of Copyright Law of the People’s Republic of China

Chapter I  General Provisions
Chapter II  Copyright Administrative Authorities
Chapter III  Ownership and Exercise of Copyright
Chapter IV  Copyright Licensing Contracts
Chapter V  Exercise of and Limitations on Rights Relating to Copyright
Chapter VI  Administrative Sanctions
Chapter VII  Supplementary Provisions

(Approved by the State Council on May 24, 1991, and promulgated by Decree

No. 1 of the National Copyright Administration on May 30, 1991)
Chapter I  General Provisions

    Article 1  These Regulations for the Implementation are formulated in
accordance with Article 54 of the Copyright Law of the People’s Republic of
China (hereinafter referred to as “the Copyright Law”).

    Article 2  The term “works” as used in the Copyright Law means
intellectual creations with originality in the literary, artistic or
scientific domain, insofar as they are capable of being reproduced in a
tangible form.

    Article 3  The term “creation” as used in the Copyright Law means
intellectual activities that directly create literary, artistic or scientific
works.

    Any organizational work, consultation, material support or other
auxiliary services offered to the creation of other shall not be deemed as
creation.

    Article 4  For the purposes of the Copyright Law and these Regulations,
the following expressions concerning works shall have the meanings hereunder
assigned to them:

    (1) “written works” means works expressed in written form, such as novels,
poems, essays, and theses;

    (2) “oral works” means works which are created in spoken words and have
not been fixed on any material carrier, such as impromptu speeches, lectures
and court debates;

    (3) “musical works” means such works as symphonic works and songs, with
or without accompanying words, which can be sung or performed;

    (4) “dramatic works” means such works as dramas, operas and local
traditional operas which are used for stage performance;

    (5) “quyi works” means such works as “xiang sheng” (cross talk),
“kuaishu” (clapper talk), “dagu” (ballad singing with drum accompaniment) and
“pingshu” (story telling based on classical novels), which are all used for
performance involving mainly recitation or singing, or both;

    (6) “choreographic works” means works which are or can be expressed in
successive body movements, gestures and facial movements;

    (7) “works of fine arts” means two- or three-dimensional works of the
plastic arts created in lines, colours or other media which impart aesthetic
effect, such as paintings, works of calligraphy, sculptures and works of
architecture;

    (8) “photographic works” means the kind of artistic works created by
recording images of objects on light-sensitive materials with the aid of
devices;

    (9) “cinematographic, television and videographic works” means works
which are recorded on some material consisting of a series of images, with or
without accompanying sound, and which can be projected or broadcast with the
aid of suitable devices;

    (10) “drawing of engineering designs and product designs, and their
descriptions” means drawings designed for the purpose of actual construction
and manufacturing, and the description contained in the said drawings;

    (11) “maps, diagrammatic sketches and other graphic works” means two- or
three-dimensional works showing geographical phenomena or demonstrating the
fundamentals or the structure of a thing or an object, such as geographical
maps, circuit plans or anatomical drawings.

    Article 5  For the purposes of the Copyright Law and these Regulations,
the following expressions concerning modes of exploitation of works shall
have the meanings hereunder assigned to them:

    (1) “reproduction” means the act of producing one or more copies of a
work by printing, photocopying, copying, lithographing, making a sound
recording or video recording, duplicating a photographic work, or by other
means;

    (2) “performance” means the public presentation of a work by performing
music or drama, reciting a poem, or doing similar acts through vocal sound,
facial movements and body movements, directly or with the aid of technical
devices;

    (3) “broadcasting” means the communication of works through wireless
radio waves or cable television system;

    (4) “exhibition” means the public display of the original copies or
reproductions of works of fine arts and photograph;

    (5) “distribution” means the provision of a certain number of copies of a
work to the public through selling, renting or other means, insofar as the
said number of copies satisfy the reasonable needs of the public;

    (6) “publication” means the public distribution of copies of the edited
version of a work;

    (7) “the making of cinematographic, television or video works” means the
fixation for the first time of a work on a certain carrier by way of
cinematographic production or similar means. The mere mechanical recording of
a performance or scenery shall not be regarded as the making of the
above-mentioned works;

    (8) “adaptation” means the creation of new works with originality on the
basis of preexisting ones by changing their original forms of expression or
their purposes for use;

    (9) “translation” means the conversion of the language of a work into
another language;

    (10) “annotation” means the explanation of the characters, words and
sentences used in a written work;

    (11) “compilation” means the creation of a work by assembling a number of
selected pre-existing works, in whole or in part, according to an arrangement
designed for a specific purpose;

    (12) “arrangement” means the re-editing of pre-existing written works or
materials that are in a fragmented and poorly ordered state so as to turn
them into a systematic and orderly state, such as the glossing and repairing
of ancient classics.

    Article 6  For the purposes of the Copyright Law and these Regulations,
the following expressions shall have the meanings hereunder assigned to them:

    (1) “news on current events” means the mere facts or happenings conveyed
by newspapers, periodicals and radio and television programmes;

    (2) “sound recordings” means the original recordation of any sound;

    (3) “video recordings” means the original recordation of a connected
series of related images, with or without accompanying sounds, other than
cinematographic and television and videographic works;

    (4) “radio and television broadcasts” means the programmes communicated
by a radio or  television  station by  means of  diffusing signals carrying
sounds or images or both;

    (5) “producer of sound recordings” means a person who makes sound
recordings;

    (6) “producer of video recordings” means a person who makes video
recordings;

    (7) “performer” means an actor or any other person who performs literary
and artistic works.
Chapter II  Copyright Administrative Authorities

    Article 7  The National Copyright Administration is the copyright
demonstration department under the State Council and shall be responsible for
the nationwide work of administration of copyright. Its main functions are:

    (1) to implement copyright-related laws and regulations, and to formulate
measures in relation to copyright administration;

    (2) to investigate and handle cases of infringement of copyright that are
of nationwide influence;

    (3) to approve the establishment of collective administrative organs of
copyright, foreign-related copyright agencies and arbitration agencies on
disputes of copyright contracts, and to supervise and guide their work;

    (4) to be in charge of the foreign-related copyright administration;

    (5) to administer copyrights of which the State is the owner;

    (6) to provide guidance for the work of local copyright administration
departments;

    (7) to discharge other duties assigned by the State Council in relation
to copyright administration.

    Article 8  The copyright administration departments under the local
people’s governments shall be in charge of the copyright administration
within their respective administrative areas, whose functions shall be
determined respectively by the people’s governments of provinces, autonomous
regions and municipalities directly under the Central Government.
Chapter III  Ownership and Exercise of Copyright

    Section 1  Ownership of Copyright

    Article 9  Unless otherwise provided by law, copyright of a work shall
belong to the citizen who has created the work, or the legal entity or an
entity without legal personality which is deemed as the author of the work.

    A legal entity must be in conformity with the conditions laid down by the
General Principles of Civil Law of the People’s Republic of China. Registered
social institutions and economic organizations which do not meet the
conditions of legal entities, and the relatively independent constituent
departments forming a legal entity are entities without legal personality.

    Article 10  Persons who have glossed or rearranged others’ pre-existing
works shall enjoy the copyright in the works thus created, but shall not be
enpost_titled to copyright in the original works and shall not prevent other
persons from glossing or rearranging the same pre-existing works.

    Article 11  Where co-authors fail to reach an agreement through
consultation on the exercise of copyright in a joint work which cannot be
used separately, any party may not prevent the other party from exercising
the said copyright without legitimate reasons.

    Article 12  In the case of works of compilation in form of encyclopaedias,
dictionaries, textbooks, photo books of large size or the like, the copyright
in such works as a whole shall belong to the legal entities or entities
without legal personality which have sponsored the creation, provided
financial aid or materials for the creation and bear the responsibilities in
relation to the said works.

    Article 13  Where the copyright owner has authorized others to make
cinematographic, television or videographic works based on his works, it is
deemed that he has permitted them to make necessary alteration of his works,
insofar as such alteration does not distort or mutilate the original work.

    Article 14  Where copyright in a work created in the course of employment
belongs to the author, the author may, in the case that the entity to which
he belongs has not exploited the work in the scope of its professional
activities within two years after the completion of the work, request the
said entity to permit a third party to exploit the work in the same manner as
the entity may have, the said entity may not refuse the request, unless it
has legitimate reasons.

    Remuneration obtained from the use of a work by a third party permitted
by the author within two years after the creation of the work, with the
consent of the entity to which he belongs and used in the same manner as the
entity may have shall be divided between the author and the entity according
to agreed proportions.

    After the expiry of the period of two years after the completion of a
work, the entity may continue to exploit the work within the scope of its
professional activities.

    The duration of two years period after the completion of a work shall be
calculated from the date on which the work is submitted to the entity.

    Article 15  The material and technical resources mentioned in Item (1),
second paragraph of Article 16 of the Copyright Law shall mean the funds,
equipments or materials provided exclusively for the creation of a work.

    Article 16  In the case of a work of an unidentified author, the
copyright, except the right of authorship, shall be exercised by the lawful
holder of the original copy of the work. Where the author has been identified,
the copyright shall be exercised by the author or his heir in post_title.

    Article 17  The provisions in Article 18 of the Copyright Law, which
reads that the transfer of ownership of the original copy of a work of fine
arts or other works shall not be deemed to include the transfer of copyright
in such work, is applicable to any work of which the ownership of the
original copy can be transferred.

    Section 2  Inheritance of Copyright

    Article 18  Inheritance of property rights contained in copyright shall
be executed in accordance with the Law of Inheritance.

    Article 19  In the case where one of the coauthors of a work of joint
authorship dies without heir in post_title or other behested beneficiary, the
right of exploitation and right to remuneration he enjoyed in the work shall
be exercised by the other coauthors.

    Article 20  The right of authorship, right of revision and right of
integrity shall, after the death of the author, be protected by the heir in
post_title and other behested beneficiary. In the absence of an heir in post_title or
other behested beneficiary, the right of authorship, the right of revision
and the right of integrity shall be protected by copyright administration
departments.

    Article 21  Copyright enjoyed by the State shall be exercised by the
copyright administration departments on behalf of the State.

    Article 22  In the case of posthumous work, the right of publication may
be exercised by the author’s heir in post_title or other behested beneficiary
within a period of 50 years, unless the author had expressly stated
otherwise. In the absence of an heir in post_title or other behested beneficiary,
the said right shall be exercised by lawful holder of the original copy of
the work.

    Section 3  Acquisition of Copyright and Calculation of the Term of
Protection

    Article 23  Copyright shall occur on the date when a work is created and
shall be protected under the Copyright Law.

    Article 24  In the case of a work of an unidentified author, the term of
protection in relation to the right of exploitation and the right to
remuneration shall be 50 years ending on December 31 of the 50th year after
the first publication of the work. Article 21 of the Copyright Law shall be
applicable after the author of the work has been identified.

    Article 25  In the case of a work of a foreigner first published in the
territory of China, the term of protection shall be calculated from the date
of the first publication of the work.

    The first publication of a work of a foreigner in the territory of China
mentioned in the second paragraph of Article 2 of the Copyright Law refers to
the publication of an unpublished work of foreigner for the first time in the
territory of China by lawful means.

    Where a foreigner’s work first published outside China is published in
China within 30 days thereafter, it shall be deemed first published in the
territory of China.

    Unpublished works of foreigners, if their authorized adaptations or
translations are first published in China, shall be deemed first published in
the territory of China.

    Section 4  Limitations on Rights

    Article 26  A published work as mentioned in the Copyright Law refer to a
work which has been made available by the copyright owner to the public by
means as stipulated in the Copyright Law.

    Article 27  The following conditions have to be conformed with for an act
to be deemed appropriate quotation of published works by others, as mentioned
in Article 22, Item (2) of the Copyright Law:

    (1) the quotation is made solely for the purpose of introduction to, or
comment on, a work or demonstration of a point;

    (2) the quotation shall not form a major or substantial part of the work
of the quoter;

    (3) the interests of the copyright owner of the work being quoted shall
not be prejudiced.

    Article 28  The provisions of Article 22, Item (3) of the Copyright Law
refer to unavoidable inclusion of published works as is justified by the
purpose of reporting current events.

    Article 29  The use of published works of other persons in accordance
with  the provisions of Article 22, Items (6) and (7) of the Copyright Law
shall not harm the normal exploitation of the works concerned and shall not
unreasonably prejudice the lawful rights and interests of the copyright
owners.

    Article 30  Where a published work is performed in accordance with the
provisions of Article 22, Item (9) of the Copyright Law, no fees shall be
charged on the audience and no payments shall be made to the performers.

    Article 31  The provisions of Article 22, Item (11) of the Copyright Law
shall be applicable only to the works originally created in the language of
the Han nationality.
Chapter IV  Copyright Licensing Contracts

    Article 32  The contracts with copyright owners and the license obtained
for using their works shall be made in written form, except in cases where w
orks are to be published by newspapers or periodicals.

    Article 33  In default of a clear indication in a contract in relation to
the grant of exclusive right to use, only a nonexclusive right to use by the
licensee shall be granted, unless the Copyright Law stipulates otherwise.

    Article 34  The provision of standard forms of various copyright
licensing contracts shall be the responsibility of the National Copyright
Administration.

    Article 35  The person who has obtained the exclusive right in relation
to the use in a certain way of a work shall have the right to prevent any
other person, including the copyright owner, from using the work in the same
way. However, the sublicensing of the same right to a third party shall be
subject to permission by the copyright owner, unless the contract stipulates
otherwise.
Chapter V  Exercise of and Limitations on Rights Relating to Copyright

    Article 36  Rights relating to copyright, as mentioned in the Copyright
Law and these Regulations, mean the right enjoyed by publishers in their
publications, the right enjoyed by performers in their performances, the
right enjoyed by producers of audio and video recordings in their products
and the right enjoyed by radio and television stations in their broadcasts.

    Article 37  Publishers, performers, producers of audio and video
recordings and radio and television stations, in the course of exercising
their rights, shall not prejudice the rights of the copyright owners of the
works being used and of the original work.

    Article 38  Publishers shall enjoy exclusive right of exploitation in the
typographical design of the books, newspapers and periodicals which they have
published.

    Article 39  In accordance with Article 30 of the Copyright Law, the
exclusive right of publisher to publish a work in its original language and
in the form of original edition, revised version or abridged version shall,
within the term of validity of and the domain of execution defined by the
contract, be protected by law.

    Article 40  In the case where a manuscript is submitted to a publisher on
the author’s own initiative, the publisher shall, within six months, notify
the author whether the work will be published or not. In case of acceptance,
a contract shall be singed; in case of refusal, a timely notification shall
be sent to the author. Where no notification is served or no contract is
signed, the author may, upon expiry of six months, demand that the manuscript
be returned and financial compensation be made. The duration of six months
shall be calculated from the date of receipt of the manuscript by the
publishers.

    Article 41  The provisions of Articles 29, 30, 31 and 33 of the Copyright
Law shall not be applicable where the cost of publication of a work is borne
by the copyright owner.

    Article 42  The state of stocks being exhausted in relation to a work as
mentioned in Article 31 of the Copyright Law shall be established if two
successive subscription forms mailed by the copyright owner to the publisher
fail to receive any reply within six months.

    Article 43  Where a copyright owner intends to declare that reprinting or
excerpting is not permitted in accordance with the second paragraph of
Article 32 of the Copyright Law, the copyright owner is required to append
that declaration to the work when it is first published in a newspaper or a
periodical.

    Article 44  No timelimit shall be set on the term of protection in
relation to the rights provided for in Article 36, Items (1) and (2) of the
Copyright Law.

    In the case of the term of protection in relation to the right to
remuneration which the performers enjoyed in accordance with the second
paragraph of Article 39 and the third paragraph of Article 42 of the
Copyright Law, the first paragraph of Article 39 and the second paragraph of
Article 42 of the Copyright Law shall apply.

    Article 45  In accordance with Article 35 of the Copyright Law, a
performer shall pay remuneration to the copyright owner through the organizer
of the performance.

    Article 46  Performance by foreign performers in the territory of China
shall be protected by the Copyright Law.

    Article 47  Audio and video recordings produced and distributed in the
territory of China by foreign producers shall be protected by the Copyright
Law.

    Article 48  Where a copyright owner intends to declare that the
performance, recording or making broadcasts of his work is not permitted in
accordance with the second paragraph of Article 35, the first paragraph of
Article 37 and the second paragraph of Article 40 of the Copyright Law, the
copyright owner is required to do that when his work is published, or have
his declaration carried in the copyright bulletin issued by the National
Copyright Administration.

    Article 49  To use published works of other persons in accordance with
the second paragraph of Article 32, the second paragraph of Article 35, the
first paragraph of Article 37 and the second paragraph of Article 40 of the
Copyright Law, the user shall pay remuneration to the copyright owner. In the
case where the copyright owner is not identifiable or the address of the
copyright owner is not available, the remuneration payable shall be remitted,
within one month, to an agency designated by the National Copyright
Administration for further transfer to the due copyright owner.
Chapter VI  Administrative Sanctions

    Article 50 Infringements against copyright enumerated in Article 46 of
the Copyright Law shall be liable to the administrative sanctions to be
imposed by copyright administration departments in the form of warning,
injunction in relation to production and distribution of infringing copies,
confiscation of unlawful gains and seizure of infringing copies and
equipments used for making infringing copies, as well as a fine.

    Article 51  The amount of a fine to be imposed for infringements against
copyright enumerated in Article 46 of the Copyright Law shall be, depending
on the seriousness of each of the cases, as follows:

    (1) an infringing act as mentioned in Article 46, Item (1) of the
Copyright Law shall be liable to a fine of 100 to 5,000 yuan (RMB);

    (2) infringing acts as mentioned in Article 46, Items (2), (3), (4), (5)
and (6) of the Copyright Law shall be liable to a fine of 10,000 to 100,000
yuan (RMB), or an amount of two to five times as much as the prices in total;

    (3) an infringing act as mentioned in Article 46, Item (7) of the
Copyright Law shall be liable to a fine of 1,000 to 50,000 yuan (RMB).

    Article 52  Copyright administration departments under the local people’s
governments shall be responsible for investigating and handling the
infringements against copyright enumerated in Article 46 of the Copyright Law
within their respective administrative areas.

    The National Copyright Administration shall investigate and handle the
following infringements against copyright enumerated in Article 46 of the
Copyright Law:

    (1) infringements against copyright that are of nationwide influence;

    (2) infringements against copyright where a foreign party is involved;

    (3) infringements against copyright that the investigation and handling
of which are deemed to be the responsibility of the National Copyright
Administration.

    Article 53  In exercising its right of imposing administrative sanctions,
a copyright administration department may order the infringer to compensate
the infringed party for the suffered loss.
Chapter VII  Supplementary Provisions

    Article 54  Copyright owners may exercise their copyrights by way of
collective administration.

    Article 55  The National Copyright Administration shall be responsible
for the interpretation of these Regulations.

    Article 56  These Regulations shall enter into force as of June 1, 1991.





THE MEASURES FOR THE ADMINISTRATION ON GOODS, CONVEYANCES, LUGGAGE AND POSTAL ARTICLES ENTERING AND LEAVING THE SHANGHAI PUDONG NEW AREA OF THE PEOPLE’S REPUBLIC OF CHINA

the General Administration of Customs

Order of the General Administration of Customs of the People’s Republic of China

No. 37

The Measures for the Administration on Goods, Conveyances, Luggage and Postal Articles Entering and Leaving the Shanghai Pudong New
Area of the People’s Republic of China are promulgated here, and shall come into force as of November 1, 1992.

Dai Jie, the Director

October 7, 1992

The Measures for the Administration on Goods, Conveyances, Luggage and Postal Articles Entering and Leaving the Shanghai Pudong New
Area of the People’s Republic of China

Chapter I General Provisions

Article 1

For the purpose of promoting the exploitation and development of Shanghai Pudong New Area, safeguarding national sovereignty and interests
and strengthening the supervision and control of the Customs, the present Measures are formulated according to the Customs Law of
the People’s Republic of China and other relevant laws and regulations.

Article 2

The present Measures shall apply to the Shanghai Pudong New Area (hereinafter referred to as the New Area) which was established upon
the authorization of the State. The Customs shall set up offices in the New Area to perform its functions.

Article 3

All enterprises and institutions in the New Area may go through the Custom formalities after they have registered with the Customs
for records upon the strength of the approval documents obtained from the competent departments in charge together with their business
licences (for enterprise use only) issued by the Administration of Industry and Commerce and other relevant documents.

Article 4

For the goods, luggage, postal articles and conveyances entering or leaving the New Area, the consignors, consignees or their agents
and the persons in charge of the conveyances shall declare truthfully to the Customs and shall be subject to supervision and control
by the Customs.

Article 5

The duty-free and duty-reduced goods and articles imported by enterprises, institutions and administrative organs in the New Area
shall be used only in the New Area. Without permission of the Customs, such goods and articles shall not be transported out of the
New Area.

Article 6

The enterprises in the New Area shall, according to relevant laws and regulations of the State, set up accounting items, account books
and statistical tables and reports, which meet the requirements for Customs checking. In addition, they shall submit periodically
to Customs for inspection their statements on the use, sale and storage of their imported and exported goods.

When necessary, the Customs may assign Customs officers in the New Area to exercise supervision and control, while the enterprises
concerned shall freely provide the Customs officers with office places and necessary facilities.

Chapter II Tariff Preference for Import and Export Goods

Article 7

Customs duties and consolidated industrial and commercial taxes (product taxes or value added taxes) on the goods imported by enterprises,
institutions and administrative organs in the New Area for use therein shall be assessed in accordance with the following provisions:

(1)

Machine, equipments and other construction materials imported for basic construction in the New Area shall be exempted from import
duties and taxes.

(2)

Building materials and equipments, fuel for production and vehicles for production and transportation of reasonable quantity, office
supplies as well as the spare parts for the machine, equipments and vehicles mentioned above, which are imported therein by enterprises
in the New Area for self use, shall be exempted from import duties and taxes.

(3)

Building materials, vehicles, office supplies, management equipments imported in reasonable quantity by the institutions and administrative
organs in the New Area for self use shall be handled in light of clause 2 of this Article.

(4)

Raw materials, parts, components and packing materials imported into the New Area for manufacturing export goods shall be exempted
from duties and taxes.

(5)

Seeds, plants, breeder, fodder and medication for the protection of plants and animals necessary to be imported to promote export
products manufactured by the plant-culture and aquaculture industries shall be exempted from import duties and taxes.

(6)

Food and condiments, which need going through the process of cooking and processing and are imported by tourist and restaurant business
in the New Area, shall be exempted from import-duties and taxes.

(7)

The goods not included in those listed in the above six clauses of this article shall be subject to import duties and taxes according
to regulations, when imported by enterprises and administrative organs in the New Area.

Article 8

Products manufactured for export by enterprises in the New Area shall be exempted from export duties.

Where any product processed for export in the New Area with materials or semi-finished products from outside of the New Area should
be subject to export duties, and its values increased over 20% after substantive processing, it may be deemed as products manufactured
in the New Area and be exempted from Customs duties, with the recognition and approval by the Customs.

Article 9

Finished products, which are purchased by the administrative organs, enterprises and institutions upon the approval by the Customs
and are made from imported duty-free materials, parts and components, shall be treated accordingly either by exempting them from
duties and taxes or making them to supplement the duties and taxes exempted according to Article 7 of the present Measures.

Chapter III Supervision and Control over Imported and Exported Goods

Article 10

As for the goods imported into and exported from the New Area, the consignors, consignees or their agents shall fill in the Import
and Export Declaration Forms, declare the truth information to the Customs and hand in for inspection their import and export licenses
and other relevant certificates as required by the relevant regulations prescribed by the State. The Customs shall conduct supervision
and control over the foresaid goods according to Laws and compile Customs statistics tables thereof. In case such goods are imported
or exported through ports outside the New Area, they shall be handled in accordance with the Measures for Supervision and Control
over Customs Transit Goods.

Article 11

Enterprises in the New Area, when importing duty-bond materials, parts and components, shall register with the Customs for a record
upon the strength of the processing contracts and the approval documents obtained from the competent departments. The Customs, after
examining such documents and contracts, shall issue to the applying enterprises registration handbooks. Where the foresaid materials,
parts and components are processed and assembled outside the New Area, the enterprise concerned shall, after examination and approval
by the Customs, go through the registration procedures with the Customs upon the strength of its registration handbooks. The products
after processing shall be transported back to the New Area in light of the time limit specified in the contract, and the enterprises
concerned shall go through the write-off formalities with the Customs by submitting to the Customs its registration handbooks within
one month after the performance of the contract.

Article 12

Finished products processed and assembled with duty-bond imported materials, parts and components shall be re-exported. When these
goods are to be sold on domestic markets upon the approval of the competent departments, the enterprises concerned shall go through
the import formalities at the Custom office which will collect import duties upon the materials, parts and components as repayment
of the duties exempted. If the owners or agents of the goods cannot declare clearly the names, quantity and value of the imported
materials, parts and components mentioned above, customs duties shall be collected on the basis of the finished products concerned.

Article 13

When imported duty-free or duty-reduced goods in the New Area need to be transferred, exchanged or used for other purposes, approval
from the Customs must be obtained in advance and relevant Customs formalities be finished.

Article 14

Bonded warehouse in the New Area for storing duty-bond goods shall be handled according to the Measures of the Customs of the People’s
Republic of China for Supervision and Control Over Duty-bond Warehouses and the Goods in Storage.

Chapter IV Supervision and Control over the Conveyances, Luggage and Postal Articles Entering and Leaving the New Area

Article 15

When the conveyances that enter or leave the New Area arrive at or depart from the New Area, the persons in charge or their agents
shall declare truthfully to the Customs and be subject to Customs supervision and inspection.

Article 16

Luggage carried into or out of the New Area by individuals and postal articles entering or leaving the New Area shall be treated separately
according to the Measures of the Customs of the People’s Republic of China for Supervision and Control over Inward and Outward Postal
Articles.

Article 17

Persons from abroad, who needs to import household necessities (not including motor cars) and resides permanently in the New Area,
may apply to the Customs for permission. If the application is examined and approved by the Customs, such imported articles shall
be exempted from import duties and released after examination provided that they are for personal use only and in reasonable quantity.

Chapter V Supplementary Provisions

Article 18

Any action, which violates the present Measures and constitutes an offense of smuggling or violates the Customs regulations concerning
Customs supervision and control, shall be dealt with according to the Customs Law of the People’s Republic of China and the Detailed
Rules of the Customs of the People’s Republic of China for the Implementation of Administrative Penalty.

Article 19

Any other matter not specifically covered by the present Measures shall be handled according to the relevant Customs laws and regulations.

Article 20

The Customs shall exercise supervision and control on the Waigaoqiao Bonded Zone of the New Area in accordance with the Measures of
the Customs of the People’s Republic of China for the Control over the Goods, Conveyances and Personal Article Entering and Leaving
the Shanghai Waigaoqiao Bonded Zone.

Article 21

The interpretation of the present Measures shall remain with the General Administration of the Customs.

Article 22

The present Measures shall come into force as of November 1, 1992.



 
the General Administration of Customs
1992-10-07

 






PROTECTION OF CONSUMER RIGHTS AND INTERESTS

_

Category  PROTECTION OF CITIZENS’ RIGHTS AND INTERESTS Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1993-10-31 Effective Date  1994-01-01  


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

Contents
Chaper I  General Provisions
Chapter II  Rights of Consumers
Chapter III  Obligations of Businees Operators
Chapter IV  Protection of the Legitimate Rights and Interests of        
Chapter V  Consumer Organizations
Chapter VI  Settlement of Disputes
Chapter VII  Legal Responsibility
Chapter VIII  Supplementary Provisions

(Adopted at the Fourth Meeting of the Standing Committtee

of the Eighth National People’s Congress on October 31, 1993,
promulgated by Order No.11 of the President of the People’s
Republic of China, and effective as of January 1, 1994)
Contents

    Chapter I     General Provisions

    Chapter II    Rights of Consumers

    Chapter III   Obligations of Bussiness Operators

    ChapterIV     Protection of Legitimate Rights and Interests of      

                  Consumers by the State

    Chapter V     Consumer Organizations

    Chapter VI    Settlement of Disputes

    Chapter VII   Legal Responsibility

    Chapter VIII  Supplementary Provisions
Chaper I  General Provisions

    Article 1  The present Law is formulated for the protection of the legitimate rights and interests of consumers, maintenance of
the socio-economic order and promotion of the healthy development
of socialist market economy.

    Article 2  The rights and interests of consumers in purchasing
and using commodities or receiving services for daily consumption
shall be under the protection of the present Law, or under the
protection of  other relevant laws and regulations in absence of stipulations in this Law.

    Article 3  Business operators shall, in their supply of commodities produced and sold by them or services to consumers,
abide by the present Law, or abide by other relevant laws and
regulations in absence of stipulations in the present law.

    Article 4  In transactions between business operators and
consumers a principle of voluntariness, equality, fairness, honesty
and credibility shall be followed.

    Article 5  The State shall protect the legitimate rights and
interests of consumers from infringement.

    The State shall adopt measures to safeguard consumers’
exercise of their rights in accordance with the law and to maintain
the legitimate rights and interests of consumers.

    Article 6  It is the common responsibility of the whole society
to protect the legitimate rights and interests of consumers.

    The State shall encourage and support all organizations and
individuals to exercise social supervision over acts infringing
upon consumer rights and interests.

    Mass media shall conduct propaganda defending the legitimate
rights and interests of consumers and, through public opinion,
exercise supervision over acts infringing upon the legitimate
rights and interests of consumers.
Chapter II  Rights of Consumers

    Article 7  Consumers shall, in their purchasing and using
commodities or receiving services, enjoy the right of the
inviolability of their personal and property safety.

    Consumers shall have the right to demand business operators to
supply commodities and services up to the requirements of personal
and property safety.

    Article 8  Consumers shall enjoy the right to obtain true
information of the commodities they purchase and use or the
services they receive.

    Consumers shall have the right to demand business operators,
in light of the different conditions of commodities or services, to
provide their prices, origin, manufacturers, usage, functions,
standards, grades, main ingredients, date of production, term of validity, certificates of inspection, operation instructions,
aftersale services or information relating to contents, standards
and costs of the services.

    Article 9  Consumers shall enjoy the right of free choice of commodities or services.

    Consumers shall have the right to make a free choice of business operators for supply of commodities or services,
select
freely among varieties of articles or forms of services and decide
independently to buy or not to buy any kind of commodities, or to
accept or not to accept any item of services.

    Consumers shall have the right to make comparisons,
differentiations and selections when they make a free choice of commodities or services.

    Article 10  Consumers shall enjoy the right of fair deal.

    Consumers shall, in their purchasing commodities or receiving
services, have the right to obtain fair deal prerequisites such as
guarantee of quality, reasonable prices and correct measurement,
and have the right to refuse any compulsory transaction of business
operators.

    Article 11  Consumers suffering from personal injury or
property damage resulting from their purchasing or using of commodities or receiving of services shall have the right to demand
compensations in accordance with the law.

    Article 12  Consumers shall have the right to form public
organizations for the maintenance of their own legitimate rights
and interests according to law.

    Article 13  Consumers shall have the right to acquire knowledge
concerning consumption and protection of consumer rights and
interests.

    Consumers shall make efforts to master the knowledge of their
necessary commodities or services and the skill in operation
thereof, apply the commodities in a correct way and raise their
consciousness of self-protection.

    Article 14  Consumers shall, in their purchasing and using
commodities or receiving services, have the right that their  human
dignity, national customs and habits are respected.

    Article 15  Consumers shall have the right to exercise
supervision over commodities, services as well as the work of protection of consumer rights and interests.

    Consumers shall have the right to inform and charge against
the infringement upon consumer rights and interests and the breach
of law or neglect of duty on the part of State organs and their
functionaries in the work of protection of consumer rights and
interests, and have the right to raise criticism of or proposals
for the work of protection of consumer rights and interests.
Chapter III  Obligations of Businees Operators

    Article 16  Business operators shall, in their supply of commodities and services to consumers, fulfill their obligations
stipulated in the Law of the People’s Republic of China on Product
Quality and other laws and regulations concerned.

    In case an agreement is reached between business operators and
consumers, the business operators shall fulfill the obligations
agreed upon in the agreement; but the agreement between the two
parties shall not contravene the provisions of laws and
regulations.

    Article 17  Business operators shall listen to the consumers’
opinions  on the commodities and services they supply and accept
consumers’ supervision.

    Article 18  Business operators shall guarantee that the
commodities and services they supply meet the requirements for
personal or property safety. As to commodities and services liable
to harm personal or property safety, business operators shall
give the consumers truthful explanation and clearout warnings, and
shall explain or indicate the correct ways of using the commodities
or receiving services as well as the methods of preventing damage.

    Business operators shall, upon discovery of serious defects of the commodities or services they supply which
are liable to harm
personal or property safety even though the commodities are
correctly applied or services are received in a correct way,
immediately report to the administrative departments concerned and
inform the consumers, and adopt measures to prevent damage.

    Article 19  Business operators shall provide consumers with
authentic information concerning their commodities or services, and
may not make any false and misleading propaganda.

    Business operators shall give truthful and definite replies to
inquiries from consumers about the qualities of the commodities or
services they supply and the operation methods thereof.

    Shops shall mark clearly the prices of the commodities they
supply.

    Article 20  Business operators shall indicate their real names
and marks.

    Business operators who lease counters or grounds from others
shall indicate their own real names and marks.

    Article 21  Business operators who supply commodities or services
shall make out for consumers invoices for purchases or documents of
services in accordance with relevant regulations of the State or
commercial practices; business operators must produce such invoices or
documents in case consumers so demand.

    Article 22  Business operators shall guarantee the quality,
functions, usage and term of validity which the commodities or
services they supply should possess under normal operation or
acceptance, except that consumers are aware of the defects before
they buy the commodities or receive the services.

    Business operators who employ advertisements, product
instructions, samples or other ways to display the quality state of their commodities or services shall guarantee that the actual
quality of the commodities or services they supply is in conformity
with that demonstrated.

    Article 23  Business operators who are under the obligation of repair or caveat venditor, or other responsibilities in accordance
with regulations of the State or agreements with consumers shall
carry out such obligations correspondingly according to such
regulations or agreements, and may not delay deliberately or refuse
unreasonably to do so.

    Article 24  Business operators may not, through format
contracts, notices, announcements, entrance hall bulletins and so
on, impose unfair or unreasonable rules on consumers or reduce or
escape their civil liability for their infringement of the
legitimate rights and interests of consumers.

    Format contracts, notices, announcements, entrance hall
bulletins and so on with contents mentioned in the preceding
paragraph shall be invalid.

    Article 25  Business operators may not insult or slander
consumers, may not search the body of consumers or the articles
they carry with them, and may not violate the personal freedom of consumers.
Chapter IV  Protection of the Legitimate Rights and Interests of        
Consumers by the State

    Article 26  The State shall heed to the opinions and demands
from consumers when making laws, regulations and policies
concerning consumer rights and interests.

    Article 27  People’s governments at various levels shall
strengthen their leadership, and organize, coordinate and supervise
the administrative departments concerned to do their work well in
the protection of the legitimate rights and interests of consumers.

    People’s governments at various levels shall strengthen
supervision to prevent occurrence of acts damaging to the personal
or property safety of consumers and promptly check any such acts.

    Article 28  Departments for industry and commerce of people’s
governments at various levels and other administrative departments
concerned shall adopt measures to protect the legitimate rights and
interests of consumers within the scope of their respective
functions and duties in accordance with the provisions of the laws
and regulations.

    Administrative departments concerned shall listen to the
complaints of consumers and their public organizations as to the
transactions of business operators and the quality of their
commodities and services, and carry out timely investigation and
disposition.

    Article 29  State organs concerned shall, in accordance with
the provisions of laws and regulations, punish any law-breaking or
criminial activities of business operators infringing upon the
legitimate rights and interests of consumers in their supplying
commodities or services.

    Article 30  The people’s courts shall adopt measures to
facilitate consumers to take legal proceedings and must entertain
and handle without delay cases of disputes over consumer rights and
interests that meet the conditions for a lawsuit specified in the
Civil Procedure Law of the People’s Republic of China.
Chapter V  Consumer Organizations

    Article 31  Consumer associations and other consumer
organizations are public organizations formed according to law to
exercise social supervision over commodities and services and to
protect the legitimate rights and interests of consumers.

    Article 32  Consumer associations shall perform the following
functions:

    (1) to afford consumption information and consultative
services to consumers;

    (2) to participate in supervision over or inspection of commodities and services conducted by relevant administrative
departments;

    (3) to make reports, inquiries and suggestions to relevant
administrative departments about issues relating to the legitimate
rights and interests of consumers;

    (4) to accept and hear complaints of consumers and offer
investigations and mediations with respect to points of complaints;

    (5) in case quality of commodities or services is involved,
to submit for appraisement the points of complaints to appraisal
departments which shall inform them of the expert conclusions;

    (6) to render support to victims in their legal proceedings
against infringement upon the rights and interests of consumers;

    (7) to expose and criticize through mass media the acts
infringing upon the legitimate rights and interests of consumers.

    People’s governments at various levels shall give support to
consumer associations in the performance of their functions.

    Article 33  Consumer organizations may not be engaged in
commodity transactions or profit-making services, and may not
recommend to the society commodities or services for the purpose of making profits.
Chapter VI  Settlement of Disputes

    Article 34  In case of disputes with business operators over
consumer rights and interests, consumers may settle the disputes
through the following approaches:

    (1) to consult and conciliate with business operators;

    (2) to request to consumer associations for mediation;

    (3) to appeal to relevant administrative departments;

    (4) to apply to arbitral organs for arbitration according to
the arbitral agreements with business operators;

    (5) to institute legal proceedings in the people’s court.

    Article 35  Consumers whose legitimate rights and interests are
infinged upon in their purchasing or using commodities may demand
compensation from the sellers concerned. In case the liability is
on the manufacturers or other sellers who supply the commodities to
the said sellers, the said sellers shall, after paying the
compensations, have the right to recover the compensations from the
manufacturers or the other sellers.

    Consumers or other victims suffering personal injuries or
property damage resulting from defects of commodities may demand
compensations either from the sellers or from the manufacturers. If
the liability is on the manufacturers, the sellers shall, after
paying the compensations, have the right to recover the
compensations from the manufacturers; if the liability is on the
sellers, the manufacturers shall, after paying the compensations,
have the right to recover the compensations from the sellers.  

    Consumers whose legitimate rights and interests are infringed
upon in receiving services may demand compensations from suppliers
of the services.

    Article 36  Consumers whose legitimate rights and interests are
infringed upon in purchusing or using commodities or receiving
services may, if the enterprises supplying the commodities or
services have been split-up or merged, demand compensations from
the enterprises succeeding to the rights and obligations of the
original ones after the modifications.

    Article 37  In case a business operator unlawfully uses
another’s business license to supply commodities or services and
infringes upon the legitimate rights and interests of consumers,
the consumers may demand compensations either from such business
operator or from the holder of the business licence.

    Article 38  Consumers whose legitimate rights and interests are
infringed upon in purchasing commodities or receiving services at
trade fairs or leased counters may demand compensations from the
sellers or suppliers of the services. In case the fairs are over or
the lease of counters expires, they may also demand compensations
from organizers of the fairs or lessors of the counters.
Organizers of the fairs and lessors of the counters shall, after
paying the compensations, have the right to recover the
compersations from the sellers or suppliers of the services.

    Article 39  Consumers whose legitimate rights and interests are
infringed upon on account of commodities or services supplied by
business operators by means of false advertisement may demand
compensations from the business operators. Consumers may demand
the competent administrative departments to punish the advertising
agents who make false advertisements. Advertising agents who cannot
provide the real names and addresses of the business operators
shall bear the responsibility for compensations.
Chapter VII  Legal Responsibility

    Article 40  Business operators shall, if the commodities and
services they supply involve any of the following circumstances,
bear civil liability in accordance with the provisions of the Law
of the People’s Republic of China on Product Quality and other
relevant laws and regulations, except as otherwise provided in the
present Law:

    (1) there existing defects in the commodities;

    (2) not possessing the properties for use they should possess
and no declaration thereabout is made at the time of sale;

    (3) not conforming to the standards indicated on the
commodities or on the packaging thereof;

    (4) not conforming to the quality indicated by the product
description or by physical samples;

    (5) producing commodities that have been formally declared by
the State to be sbsolete or selling commodities that are no longer
effective or deteriorated;

    (6) commodities sold being short of weight or quantity;

    (7) contents and costs of services being not in conformity
with the agreements;

    (8) deliberately delaying or unreasonably refusing consumers’
requests for repair, remanufacture, replacement, return of goods,
makeup for the short commodity, return of payment for goods or
services, or compensation for losses;

    (9) other circumstances infringing upon consumer rights and
interests as specified by laws and regulations.

    Article 41  Business operators shall, if the commodities or
services they supply have caused personal injuries to consumers or
other victims, pay for the victims’medical expenses, nursing
expenses during medical treatment, the reduced income for loss of working time and other expenses. And business operators shall,
if
the commodities or services they supply have disabled the
consumers, also pay for the victims’ expenses on self-help devices,
living allowances, compensations for disability and the necessary
living cost of the persons supported by the disabled. Business
operators shall, if the case constitutes a crime, be investigated
for criminal responsibility according to law.

    Article 42  Business operators shall, if the commodities or
services they supply have caused death of consumers or other
victims, pay for the victims’ funeral expenses, compensations for
death and the necessary living cost of the persons supported by the
deceased during their lifetime. Business operators shall, if the
case constitutes a crime, be investigated for criminal
responsibility according to law.

    Article 43  Business operators who violate the provisions of Article 25 of the present Law and violate the human dignity or
personal freedom of consumers shall stop the violations, restore
consumers’ reputation, dliminate the bad effects, make apologies,
and make compensations therefor.

    Article 44  Business operators shall, if the commodities or
services they supply have caused damage to the properties of consumers, bear civil liabilities  by repair, remanufacture,
replacement, return of goods, make-up for the short commodity,
return of payment for goods and services, or compensation for
losses and so on as demanded by consumers. If consumers and
business operators have otherwise agreed upon, such agreements
shall be fulfilled.

    Article 45  Business operators shall be responsible for repair,
replacement or return of goods, if repair, replacement or return of goods is guaranteed by provisions of the State or agreed upon
between business operators and consumers. Business operators shall
be responsible for replacement or return of goods if the
commodities still malfunction after being repaired twice within the
term of guaranteed repair.

    As to large-sized commodities guaranteed for repair,
replacement or return, business operators shall bear the
reasonable costs such as expenses for carriage if consumers demand
repair, replacement or return.

    Article 46  Business operators who supply commodities by
mail-order shall provide their commodities according to the
agreements. Business operators who fail to provide their
commodities according to the agreements shall fulfil the agreements
or return the consumers’ payment for the commodities on the demand
of the consumers, and bear the reasonable expenses that the
consumers must bear.

    Article 47  Business operators who supply commodities or
services in the form of advance payment shall provide their
commodities or services according to the agreements. Business
operators who fail to provide their commodities or services
according to the agreements shall fulfil the agreements or return
the advance payment on the demand of the consumers, and shall also
bear the interests of the advance payment and other necessary
expenses that the consumers must bear.

    Article 48  Business operators shall, on the demand of the
consumers, be responsible for return of goods determined to be
substandard commodities by administrative departments concerned
according to law.

    Article 49  Business operators engaged in fraudulent activities
in supplying commodities or services shall, on the demand of the
consumers, increase the compensations for victims’ losses; the
increased amount of the compensations shall be two times the costs
that the consumers paid for the commodities purchased or services
received.

    Article 50  If business operators are under any of the
following circumstances and the Law of the People’s Republic of China on Product Quality and other laws and regulations have
provided for punitive organs and forms therefor, the provisions of the laws or regulations shall be applied; in absence of such
provisions in the laws or regulations, administrative departments
for industry and commerce shall order them to make corrections, and
may, in light of the circumstances, punish the offenders
exclusively or concurrently the offenders with warning,
confiscation of unlawful earings, or imposition of a fine no less
than one time but not more than five times the value of the
unlawful earnings; in case there involves no unlawful earnings, the
offenders shall be punished with a fine of 10,000 Yuan or less, and
if the circumstances are serious, they shall be ordered to suspend
business for rectification, and their business licences shall be
revoked:

    (1) producing or selling commodities failing to meet the
requirements for the protection of personal and property safety;

    (2) mixing adulterations into their commodities, or passing
fake commodities off as genuine ones, or passing defective
commodities off as good ones, or passing substandard commodities
off as standard ones;

    (3) producing commodities which have been formally declared by
the State to be obsolete, or selling commodities no longer
effective or deteriorated;

    (4) forging the origin of commodities, forging or
counterfeiting the names and addresses of other factories, and
forging or counterfeiting the anthentication marks or
famous-and-excellent-product marks;

    (5) selling commodities not inspected or quarantined against
the requirement therefore, or forging the result of inspection or
quarantine;

    (6) making false or misleading propaganda about their
commodities or services;

    (7) deliberately delaying or unreasonably refusing consumers’
demand for repair, remanufacture, replacement, return of goods,
make-up for the short commodity, refundment of payment for goods
or services, or compensations for losses;

    (8) violating human dignity or personal freedom of consumers;

    (9) other circumstances wherein punishment shall be given for
infringement of consumer rights and interests as stipulated by laws
or regulation..

    Article 51  Any business operator who is not satisfied with the
decision on punishment may apply to the organ at the next higher
level for reconsideration within 15 days from the date of receipt
of the decision; and he who is still not satisfied with the
reconsideration decision may bring a lawsuit in the people’s court
within 15 days from the date of receipt of the reconsideration
decision; or he may take legal proceedings directly in the people’s
court.

    Article 52  Anyone who, by means of violence or threats,
hinders functionaries of the administrative departments concerned
from performing their duties according to law, shall be
investigated for criminal responsibility according to law; and
those who refuse or hinder functionaries of the administrative
departments concerned from performing their duties according to
law, without resorting to violence or threats, shall be punished by
public security organs in accordance with the stipulations of the
Regulations of the People’s Republic of China on the Administrative
Penalties for Public Security.

    Article 53  Any functionary of the State organs, who neglects
his duties or shields any business operator guilty of infringement
of the legitimate rights and interests of consumers, shall be given
administrative sanctions by the unit he b

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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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