INTERIM PROVISIONS ON IMPOSING ADMINISTRATIVE OR DISCIPLINARY PUNISHMENTS ON CHEATED OR ILLEGAL PURCHASE, EVASION AND ILLEGAL BUYING AND SELLING OF FOREIGN EXCHANGE AND OTHER PRACTICES IN VIOLATION OF FOREIGN EXCHANGE CONTROL REGULATIONS

Category	BANKING	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1999-01-25	Effective Date	1999-01-25

Interim Provisions on Imposing Administrative or Disciplinary Punishments on Cheated or Illegal Purchase, Evasion and Illegal Buying and Selling of Foreign Exchange and Other Practices in Violation of Foreign Exchange Control Regulations

(Approved by the State Council on December 16, 1998, promulgated by Decree No. 7 of the Ministry of Supervision, the Ministry of Personnel, the People’s Bank of China, the General Administration of Customs
and the State Administration of Foreign Exchange on January 25, 1999)

Article 1 These Provisions are formulated according to the Regulations of the People’s Republic of China on Foreign Exchange Administration,
the Interim Regulations on State Functionaries, and the Regulations on Awarding and Punishing Enterprise Staff in order to maintain
the order of control over foreign exchange, punish acts in violation of foreign exchange control regulations and avoid financial
risks.

Article 2 These Provisions are applied to State functionaries and working staff of financial organs which have been approved to
operate foreign exchange business and of State-owned foreign economy and trade enterprises.

Financial organs which have been approved to operate foreign exchange business mentioned in these Provisions
refer to Chinese-funded banks, non-bank financial organs and their branches which have been approved to operate foreign exchange
business.

The State-owned foreign economy and trade enterprises mentioned in these Provisions refer to State-owned foreign
trade companies, State-owned production enterprises which operate export and import, State-owned enterprises with operating rights
of export and import and enterprises which State property holds a dominant share or occupies a leading place.

Article 3 Where an act in violation of foreign exchange control regulations listed in these Provisions is committed, in addition
to administrative penalties, administrative or disciplinary punishments shall be imposed upon the responsible persons concerned according
to these Provisions; where a crime is constituted, criminal liability shall be investigated according to law.

Article 4 Working staff of financial organs which have been approved to operate foreign exchange business and of State-owned foreign
economy and trade enterprises committing any one of the following acts of cheated purchase of foreign exchange, where the sum of
which is not more than 100,000 US Dollars, shall be imposed the punishment of keeping on employment but placing under surveillance;
where the sum of which is more than 100,000 US Dollars, they shall be imposed the punishment of dismissal.

(1) to forge or alter vouchers and documents such as the Customs declaration sheet, import certificate, verification
certificate of foreign exchange control departments, etc.;

(2) to use, buy or sell forged or altered vouchers and documents such as the Customs declaration sheet, import
certificate, verification certificate of foreign exchange control departments, etc.;

(3) to repeatedly use vouchers and documents such as the Customs declaration sheet, import certificate, verification
certificate of foreign exchange control departments, etc.;

(4) to provide capital in RMB or other services which, they clearly know, are to be used for cheated purchase
of foreign exchange;

(5) to fraudulently purchase foreign exchange by other means.

If a unit commits any one of the acts mentioned in the preceding paragraph, the persons in charge directly
responsible and the other responsible persons shall be given disciplinary punishments according to the provisions of the preceding
paragraph.

Article 5 Working staff of financial organs which have been approved to operate foreign exchange business and of State-owned foreign
economy and trade enterprises committing any one of the following acts of illegal purchase of foreign exchange, where the sum of
which is not more than 100,000 US Dollars, shall be imposed the punishment of warning, record of demerit or record of heavy demerit;
where the sum of which is not less than 100,000 US Dollars nor more than 1,000,000 US Dollars, they shall be imposed the punishment
of demotion or dismissal from post; where the sun of which is more than 1,000,000 US Dollars, they shall be imposed the punishment
of keeping on employment but placing under surveillance or of dismissal.

(1) in violation the provisions of the State, to pay in RMB or reimburse in kind the money for imported goods
or other similar payment which ought to be paid in foreign exchange, however, legal bartering trade shall not be included;

(2) to pay in RMB for other persons’ expenditure incurred within China while receive their foreign exchange;

(3) to provide capital in RMB or other services which, they clearly know, are to be used for illegal purchase
of foreign exchange;

(4) to illegally purchase foreign exchange by other means.

Article 6 Working staff of financial organs which have been approved to operate foreign exchange business and of State-owned foreign
economy and trade enterprises committing any one of the following acts of evasion of foreign exchange, where the sum of which is
not more than 100,000 US Dollars, shall be imposed the punishment of dismissal form post; where the sum of which is not less than
100,000 US Dollars nor more than 1,000,000 US Dollars, they shall be imposed the punishment of keeping on employment but placing
under surveillance; where the sun of which is more than 1,000,000 US Dollars, they shall be imposed the punishment of dismissal.

(1) in violation of the provisions of the State, to deposit foreign exchange outside China;

(2) not to sell foreign exchange to designated foreign exchange banks according to the provisions of the State;

(3) in violation of the provisions of the State, to remit or send foreign exchange outside China;

(4) without approval of foreign exchange control departments, to arbitrarily carry or send foreign exchange
deposit certificate or foreign exchange negotiable securities outside China;

(5) to provide capital in RMB or other services which, they clearly know, are to be used for evasion of foreign
exchange;

(6) to evade foreign exchange by other means.

Article 7 Where working staff of financial organs which have been approved to operate foreign exchange business and of State-owned
foreign economy and trade enterprises, for a purpose of making profit, illegally buy or sell foreign exchange outside exchange places
prescribed by the State, the punishment of dismissal from post shall be imposed upon them if the sum involved is not more than 50,000
US Dollars or the illegal income is not more than 10,000 RMB yuan; if the sum involved is not less than 50,000 US Dollars nor more
than 100,000 US Dollars or the illegal income is not less than 10,000 RMB yuan nor more than 30,000 RMB yuan, the punishment of keeping
on employment but placing under surveillance shall be imposed; if the sum involved is not less than 100,000 US Dollars or the illegal
income is not less than 30,000 RMB yuan; the punishment of dismissal shall be imposed.

Article 8 If a State-owned foreign economy and trade enterprise causes other people to fraudulently purchase foreign exchange or
to illegally purchase foreign exchange because of its defects when operating import business as an agent, the persons in charge directly
responsible and the other directly responsible persons shall be imposed disciplinary punishments; if the sum involved is not more
than 100,000 US Dollars, they shall be imposed the punishment of warning, record of demerit or record of heavy demerit; if the sum
involved is more than 100,000 US Dollars but less than 1 million US Dollars, they shall be imposed the punishment of demotion or
dismissal form post; if the sum involved is more than 1 million US Dollars, they shall be imposed the punishment of keeping on employment
but placing under surveillance or of dismissal.

Article 9 If a financial organ which has been approved to operate foreign exchange business causes other people to fraudulently
purchase, illegally purchase or evade foreign exchange because of its defects when settling exchanges, selling or paying foreign
exchange or opening accounts, the persons in charge directly responsible and the other directly responsible persons shall be imposed
disciplinary punishments; if the sum involved is not more than 100,000 US Dollars, they shall be imposed the punishment of warning,
record of demerit or record of heavy demerit; if the sum involved is more than 100,000 US Dollars but less than 1 million US Dollars,
they shall be imposed the punishment of demotion or dismissal form post; if the sum involved is more than 1 million US Dollars, they
shall be imposed the punishment of keeping on employment but placing under surveillance or of dismissal.

Article 10 Where any State functionaries commit the any one of the acts of cheated or illegal purchase, evasion and illegal buying
and selling of foreign exchange and other practices in violation of foreign exchange control regulations, the punishment of demotion,
dismissal form post or dismissal shall be imposed.

Article 11 If any State functionaries of the Customs or the foreign exchange control departments collude with persons who fraudulently
purchase, illegally purchase, evade or illegally buy or sell foreign exchange, and provide facilities to them, or provide service
to them even clearly knowing that the vouchers or documents are forged or altered, or cause other persons to fraudulently purchase,
illegally purchase, or evade foreign exchange because of their abuse of powers or practice of favoritism, the punishment of dismissal
shall be imposed.

If any State functionaries of the Customs or the foreign exchange control departments cause other persons
to fraudulently purchase, illegally purchase, or evade foreign exchange because of their neglect of their duties, the punishment
of demotion or dismissal for post shall be imposed, if the circumstances are serious, the punishment of dismissal shall be imposed.

Article 12 The persons in charge directly responsible shall be imposed the punishment of warning, record of demerit or record of
heavy demerit if they fail to stop or investigate and punish the acts in violation of foreign exchange control regulations happened
in their unit if the circumstances are relatively serious; if the circumstances are serious, the punishment of demotion or dismissal
form post shall be imposed.

Article 13 It any State functionaries make advantage of their powers to shield acts in violation of foreign exchange control regulations
or commit any other acts hindering the supervision and check over law enforcement of foreign exchange control, the punishment of
dismissal for post or dismissal shall be imposed.

If any working staff of financial organs which have been approved to operate foreign exchange business and
State-owned foreign economy and trade enterprises commit the acts prescribed in the preceding paragraph, the punishment of keeping
on employment but placing under surveillance or dismissal shall be imposed.

If a unit commits the acts prescribed in the first paragraph of this Article, the persons in charge directly
responsible and the other directly responsible persons shall be respectively imposed administrative or disciplinary punishment according
to the provisions of the preceding two paragraphs.

Article 14 Where persons who confess on their own initiative their acts in violation of foreign exchange control regulations and
return the foreign exchange and illegal income, or take measures on their own initiative to avoid losses, or make meritorious contributions,
the administrative or disciplinary punishment imposed on them may be lightened, reduced, or exempted.

Where persons conceal the truth of facts, or produce false evidence by playing tricks, or hide or destroy
evidence, or refuse to provide the relevant documents, materials or certifying papers, the administrative or disciplinary punishment
shall be imposed in a heavier way or with severity.

Article 15 If State-owned institutions independently operating import and export business and their working staff commit acts in violation of
foreign exchange control regulations prescribed in these Provisions, they shall be punished by reference to these Provisions.

Article 16 These Provisions take effect as of the date of promulgation. These Provisions are applicable to the acts in violation
of foreign exchange control regulations which were committed after the effectiveness of the Regulations of the People’s Republic
of China on Foreign Exchange Control on April 1, 1996 and before the effectiveness of these Provisions but have not been handled.

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, THE STATE ECONOMIC AND TRADE COMMISSION ON PRINTING AND ISSUING MEASURES OF THE CUSTOMS FOR ADOPTING CLASSIFIED ADMINISTRATION OVER ENTERPRISES

The General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission

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

No.71

The “Measures of the Customs of the People’s Republic of China for Adopting Classified Administration over Enterprises” is hereby
promulgated and shall come into force on June 1,1999.

The “Administration Measures of the Customs of the People’s Republic of China for Creditable Enterprises” which was implemented by
the General Administration of Customs on May 1,1988 is repealed simultaneously.

Minister of the General Administration of Customs Qian Guanlin

March 31 1999

Circular of the General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, the State Economic and
Trade Commission on Printing and Issuing Measures of the Customs for Adopting Classified Administration over Enterprises

Shu Jian [1999] No.240

The Sub-Administration of Customs of Guangdong, the customs offices, each province, autonomous region and municipality directly under
the Central Government, and the Foreign Economic Relations & Trade Commission of cities specifically designed in the state plan,
Economic and Trade Commission (the Planning Commission, Planning and Economic Commission):

In order to promote the self-discipline and law-abidance of the enterprises, increase superintendent and administration of customs
efficiency, the General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, the State Economic and
Trade Commission established Measures of the Customs for Adopting Classified Administration over Enterprises Order (hereinafter referred
to as ” Measures “) to league together, are hereby on printing and issuing to you. Please to promulgate as No.71 order of the General
Administration of Customs and shall come into force as of the day of June 1,1999. Now we hereby give our notice as follows regarding
relevant matters:

The customs in charge mentioned in the Measures refer to the customs directly under the Customs General Administration. As the classified
management of enterprises involves wide and comprehensive work strongly, the various customs must strengthen organization and leadership
and establish a mechanism of common management on enterprises among the customs. The competent heads of various customs are required
to be responsible for setting up Committee of Classified Management of Enterprises at customs’ level and treating with important
issues. The daily implementation works are under the centralized management by specialized departments that are responsible for enterprise
registration management. The scope of its responsibility as follows:

(1)

Accepting and dealing with the application of the enterprises, examining relevant documents and materials submitted by enterprises.

(2)

Offer name list of enterprises which are applicable to be under management of Category A or Category D, will be submitted to the Customs
General Administration after the examination by the Committee of Classified Management of Enterprises of respective customs.

(3)

The name list of enterprises that are applicable to be under the management of Category B or Category C will be examined and approved,
and organize the implementation in respective customs’ region.

(4)

Regulating related work of various functional departments in a centralized way, collect feedback opinion and maintain database of
enterprises in respective customs’ region.

(5)

Setting up contact system with such related departments as Foreign Trade and Economic Cooperation, Economic and Trade Commissions,
Taxation, Industry and Commerce, and Foreign Exchange so as to communicate and share information with each other.

The appraisal of classified enterprises undertaking processing trade shall be taken in common by enterprise administration departments
and competent authorities responsible for processing trade.

The Measures emphasizes the dynamic classified management of enterprises. Therefore, various functional departments are required to
strengthen coordination in them so as to ensure the specific records such as record of bill examination, record of check, record
of tax payment,

record of verification and writing off, record of verification, and record of investigation kept by various sectors concerned to be
send back timely to the centralized management departments. Those smuggling or laws-violation enterprises shall be put into adjusted
category of

classified management as the occasion demands.

Related regulations of Notice of Law Basis for Administrative Punishment Implemented on Units and Declarants without Taking Annual
Examination (Shufa [1996] No. 1021) and Inspection Regulation of the Customs of the People’s Republic of China promulgated by the
Customs

General Administration will be followed in implementing Suspend Enterprise Qualification for Customs Declaration or Cancel Enterprise
Qualification for Customs declaration, the 3rd and 4th sections of the article 15 of this Measures.

In order to perfect classified management of enterprises, the Customs General Administration will set up the Committee of Classified
Management of Enterprises attended by relevant professional departments. On how the name list of Category A and D will be submitted
to the

Customs General Administration and how to implement the Measures in all the Customs’ regions, another operational provisions will
be drawn up and promulgated by Supervision and Administration Department and Customs-clearing Department of the Customs General Administration.
The annual import and export volume stipulated in Article 6 of the Measures shall take Customs’ statistics as standard.

The former Inspection Department of the Customs General Administration and Research Institute of Social Science jointly designed the
Questionnaire of Enterprise’s Situation (see the appendix) and develop in complement System on Examining and Approving Classified
Enterprise which has been put into use in some Customs. Thus, various customs may use this system for reference to examine and approve
enterprises that are applicable to be under management of Category A that may be operated in a may of combination of human beings
and machines. Meanwhile, the Customs General Administration shall make this system further perfectly.

Those customs without drawing the system software shall apply for it from Supervision and Administration Department of the Customs
General Administration as soon as possible.

In order to play role in guiding enterprises to abide by laws in operation and promote enterprises in self-warning and self-discipline,
various customs shall be diligent and responsible in appraisal and examination work, execute the standard of the Measures strictly
and operate the work in a realistic way.

All the former measures of classified management of enterprises formulated by various customs shall be terminated in operation as
of the day when the Measures are come into force.

The work on classified management of enterprises is in need of the supports and assistances from relevant departments. All customs
shall strengthen contact and cooperation with foreign trade and economic departments, and the opinions of relevant competent departments

such as foreign trade shall be heard and economic cooperation, economic and trade commission, tax, foreign exchange administration,
departments of industry and commerce, and banks so as to do a good job with concerted efforts.

The measures mentioned on above shall be implemented accordingly. In case there comes any problems in its implementation, please report
in time.

Appendix 1: Measures of the Customs General Administration of the People’s Republic of China on Performing Classified Management of
Enterprises

Appendix 2: Questionnaire on the Situation of Imported and Exported Enterprises (Omitted)

Appendix 1:Measures of the Customs of the People’s Republic of China for Adopting Classified Administration over Enterprises

Article 1

These Measures are formulated in accordance with the Customs Law of the People’s Republic of China and other relevant laws and regulations
and in order to facilitate the lawful import and export of goods of the enterprises, promote the self-discipline and law-abidance
of the enterprises and effectively operate the Customs’ administration.

Article 2

“Enterprises” mentioned in these Measures shall be the enterprises and units directly involved in import and export activities, including:
enterprises with foreign investment, foreign trade companies, commercial materials enterprises having the import and export right,
production enterprises and scientific research academies and institutes having the self-operating import and export right, processing
trade operating units and processing deal enterprises, enterprises engaging in bonded warehousing operations, enterprises using or
dealing in tax-reduced or exempted import goods, enterprises engaging in Customs declaration services, enterprises transporting goods
under Customs control, enterprises having warehouses for goods under Customs control, units dealing in duty-free foreign exchange
commodities and other enterprises directly involved in import and export activities as stipulated by the General Administration of
Customs.

Article 3

In accordance with the enterprises’ operation and management situations, Customs declaration conditions and abidance of Customs law
and regulations, the Customs introduces A, B, C and D administration classes and shall adopt the dynamic classified administration
over the enterprises.

Article 4

The administration classes applicable to the enterprises shall be examined and determined by the competent Customs offices in the
places where the enterprises are located respectively. Of them, the list of the enterprises under A-or D-class administration shall
be submitted to the General Administration of Customs for the record. The General Administration of Customs shall send a copy of
the list of the enterprises under A-class administration to the Ministry of Foreign Trade and Economic Cooperation.

Article 5

The B-or C-class administration shall be organized and adopted by the competent Customs offices within their respective Customs areas.
The A-or D-class administration shall be organized and adopted by the General Administration of Customs within all Customs areas
throughout the country.

Article 6

If an enterprise meets the following requirements, the competent Customs office shall, according to the application by the enterprise
and upon examination and approval by the Customs, adopt A-class administration over the enterprise. If a foreign trade company has
its annual import and export volume at or more than US$30 million or its annual export volume at or more than US$20 million or a
production enterprise has its self-operated export volume at or more than US$10 million (its self-operated export volume of mechanical
and electronic products at or more than US$5 million), it may be considered in priority.

(1)

It has been registered for two years or more, and

It has no record of smuggling or irregularities for two consecutive years;

It has no record of default of Customs duty for two consecutive years;

Its processing trade contracts have been verified and written off on time for two consecutive years; and

It has no record of unauthentic declaration within two years after the inspection exemption agreement for the commodities that must
be inspected by the Customs office is signed;

(2)

The documents and certificates submitted by it to the Customs are authentic, complete and valid;

(3)

It has normal import and export business operations;

(4)

Its accounting system is perfect: sound financial and accounting books, reasonable account items and authentic and feasible business
records;

(5)

It has appointed special persons responsible for Customs matters;

(6)

The error rate of its Customs declaration forms is below 5% for two consecutive years; and

(7)

If an enterprise has the warehouses for storing the goods under Customs control, its warehouse management system is sound, its warehouse
detail accounts are clear, its warehouse-in and warehouse-out slips (including materials acquisition slips) are specially controlled,
and its account records are consistent with its goods.

Article 7

When an enterprise applies for A-class administration to the Customs, it shall submit a written application to the competent Customs
office. If an enterprise resorts to deception or files a unauthentic application, the Customs shall not accept its application for
A-class administration within two years. In submitting the written application, the enterprise shall submit the following documents
in two copies simultaneously:

(1)

Duplicate copy or photocopy of the valid document approving its business issued by the competent department of foreign trade and economic
cooperation or by any other competent department;

(2)

Annual enterprise examination certificate;

(3)

Self-appraisal report of the enterprise against the requirements listed in Article 6 of these Measures;

(4)

Enterprise Survey Form signed by the legal representative or his authorized representative of the enterprise and affixed with its
official seal; and

(5)

Written comments issued by the competent department of foreign trade and economic cooperation in the place where the enterprise is
registered.

Article 8

The Customs shall strictly examine the relevant documents and archive materials submitted by the enterprises, shall make the examination
according to their actual Customs passage, shall approve the enterprises if they meet the requirements and shall notify the enterprises
within 30 days.

Article 9

If an enterprise has any of the following circumstances, the Customs shall adopt C-class administration over it:

(1)

It has irregularities twice in one year or dodges or evades the duty payable totaling more than 50,000 Yuan Renminbi but less than
500,000 Yuan Renminbi;

(2)

It defaults the Customs duty totaling less than 1 million Yuan Renminbi;

(3)

Its management of accounting books is poor or its accounting books and documents fail to truthfully and effectively reflect its import
and export business operations;

(4)

It loses important business documents or refuses to provide relevant books and materials, thus causing the impossibility of Customs
control;

(5)

It fails to fulfill the verification and writing -off formalities for processing trade contracts according to the provisions;

(6)

The error rate of its Customs declaration forms is more than 10% in one year;

(7)

It lends the enterprise’s name to others for the purpose of Customs declaration and tax payment for import and export goods; or

(8)

It has been given such administrative penalties as criticism through circulation of a public notice or warning by the competent department
of foreign trade and economic cooperation in its export and import business activities.

Article 10

If an enterprise has any of the following circumstances, the Customs shall adopt D-class administration over it:

(1)

It dodges or evades the duty payable through smuggling totaling more than 500,000 Yuan Renminbi within two years (the accumulated
amount if several smuggling activities are involved);

(2)

It forges or alters the import or export license or document of approval;

(3)

It smuggles in goods or articles that are prohibited for import or export by the State;

(4)

It defaults the Customs duty totaling more than 1 million Yuan Renminbi;

(5)

It cheats for tax preference for the processing trade through the means of false manual, false Customs declaration form or false document
of approval;

(6)

It creates hidden layers or hidden containers in the means of transport used for carrying the goods under Customs control;

(7)

It has been suspended or revoked of its foreign trade operation license by the competent department of foreign trade and economic
cooperation; or

(8)

It has committed a crime of smuggling and has been investigated for criminal responsibility according to law by the judicial organ.

Article 11

If an enterprise is found through examination as not to meet the requirements for A-class administration but does not have the circumstances
listed in Articles 9 and 10 of these Measures, the Customs shall adopt B-class administration over it.

Article 12

The name list of the enterprises under A-class administration shall be issued by the General Administration of Customs to all Customs
offices for implementation, and on the basis of implementation of the regular administration system, the following facilities shall
be provided:

(1)

Special counters shall be set up at the Customs business sites and the priority facility shall be given to the goods declaration,
inspection and release formalities; and at the request of the enterprises, the priority “door-to-door” inspection for the goods shall
be carried out.

(2)

With approval of the General Administration of Customs, Customs officers may be sent to the factories for control or the computerized
administration may be adopted for the enterprises engaging in processing trade. Unless the State provides otherwise, the system of
bank guarantee deposit account shall not be required.

(3)

For the goods for which guarantee is permitted according to the provisions, the Customs shall inspect and release them according to
the letter of guarantee submitted by the enterprises and shall not require the money of guarantee.

(4)

The samples for inspection are not required for the commodities in the catalogue of commodities that must be inspected by the Customs
for the enterprise’s import.

(5)

The facilities for the enterprises in offering the EDI Customs declaration shall be provided.

(6)

The production enterprises and research academies and institutes having the self-operating import and export right may apply to the
Ministry of Foreign Trade and Economic Cooperation for the establishment of import and export companies, and the Customs shall give
priority to them in completing the Customs declaration registration formalities.

Article 13

The Customs shall adopt the regular administration system over the enterprises to which B-class administration is applicable.

Article 14

The Customs shall impose the key control on enterprises to which C-class administration is applicable, including the following measures:

(1)

The money of guarantee must be paid for the goods for which guarantee is permitted according to the provisions;

(2)

The money of guarantee must be paid according to the set rate in applying for the record of the processing trade contract;

(3)

Their business activities shall be put into key auditing and inspection;

(4)

Key inspection shall be imposed on their import and export goods;

(5)

Their application for Customs declaration and the record at places other their locations shall not be allowed; and

(6)

Relevant information shall be reported to the State Economic and Trade and Commission and the Ministry of Foreign Trade and Economic
Cooperation.

Article 15

The Customs shall adopt the following measures over the enterprises to which D-class administration is applicable:

(1)

The record for new processing trade contracts shall not be allowed;

(2)

Import and export goods shall be inspected one-by-one according to the declaration forms;

(3)

According to the relevant provisions, the enterprise’s qualifications of Customs declaration, the enterprise’s qualifications for
transporting goods under Customs control or the enterprise’s qualifications for bonded warehousing business shall be temporarily
suspended.

(4)

If the circumstances are serious, the enterprise’s qualifications for Customs declaration, the enterprise’s qualifications for transporting
goods under Customs control or the enterprise’s qualifications for bonded warehousing business shall be deprived of according to
the relevant provisions; and

(5)

Relevant information shall be reported to the State Economic and Trade Commission and the Ministry of Foreign Trade and Economic Cooperation.
The Ministry of Foreign Trade and Economic Cooperation or its authorized competent department of foreign trade and economic cooperation
at the provincial level shall give administrative penalties to the enterprise according to the Interim Provisions on Imposition of
Administrative Penalties as Warnings or Suspension or Revocation of the Operation License in Foreign Trade or International Cargo
Agency on the Enterprises Committing Irregularities or Smuggling Activities.

Article 16

The Customs shall adopt the dynamic classified administration over the enterprises. Once an enterprise is found to have any of the
circumstances listed in Articles 9 and 10 of these Measures, the Customs shall immediately make corresponding adjustment in the administration
class applicable to the enterprise, and shall adopt C-or D-class administration over it. Of them, if A-class administration is applicable
to the enterprise prior to the adjustment, the competent Customs office shall inform the enterprise that it does not adopt A-class
administration, and shall report the adjustment result to the General Administration of Customs within seven days. The General Administration
of Customs shall notify all Customs offices throughout the country, and at the same time, shall send a copy of the adjustment result
to the Ministry of Foreign Trade and Economic Cooperation.

Article 17

If an enterprise to which D-class administration is applicable does not have any of the circumstances listed in Article 10 of these
Measures within two years, the Customs shall adopt C-class administration over it; if an enterprise to which C-class administration
is applicable does not have any of the circumstances listed in Articles 9 and 10 of these Measures within one year, the Customs shall
adopt B-class administration over it.

Article 18

The General Administration of Customs shall be responsible for the interpretation of these Measures.

Article 19

These Measures shall go into effect as of June 1,1999. The Measures for Administration of Trustworthy Enterprises by the Customs of
the People’s Republic of China became effective as of May 1,1988 shall be repealed simultaneously.

The General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, the State Economic and
Trade Commission
1999-03-31

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON ISSUING THE PROPOSALS OF THE STATE ECONOMIC AND TRADE COMMISSION AND OTHER DEPARTMENTS ON FURTHER IMPROVING THE BANK GUARANTEE ACCOUNT SYSTEM FOR PROCESSING TRADE

Category	FOREIGN TRADE	Organ of Promulgation	The General Office of the State Council	Status of Effect	In Force
Date of Promulgation	1999-04-05	Effective Date	1999-06-01

Circular of the General Office of the State Council on Issuing the Proposals of the State Economic and Trade Commission and Other Departments on Further Improving the Bank Guarantee Account System for Processing Trade

Appendix: Proposals on Further Improving the Bank Guarantee Account

(Promulgated by Document No. [1999] 35 the General Office of the State Council on April 5,1999)

The Proposals on Further Improving the Bank Guarantee Account System for Processing Trade, submitted by the
State Economic and Trade Commission, the Ministry of Foreign Trade and Economic Cooperation, the General Administration of Customs,
the Ministry of Finance, the State Administration of Taxation, the People’s Bank of China, and the State Administration of Foreign
Exchange, has been approved by the State Council and now are hereby transferred to you for implementation and fulfillment.

Appendix: Proposals on Further Improving the Bank Guarantee Account
System for Processing Trade (March 26, 1999)

The bank guarantee account system for processing trade, which has been
implemented since 1995, has played active role in regulating the management
of processing trade and promoting healthy development of processing trade.
Processing trade has now become an important part of our foreign trade,
playing an import role in exploiting our labor resource advantage, enlarging
export, increasing employment, attracting foreign capital, and promoting the
development of local economy. In order to perfect the management of
processing trade, maintain the normal processing trade order, prevent and
attack smuggling, tax evasion and foreign exchange evasion in the veil of
processing trade and other illegal acts, proposals on further improving the
bank guarantee account system for processing trade are hereby put forward as
follows:

1.Put management into practice according to the classification of commodities in the processing trade.

In accordance with the requirements of the industry policy of the State, optimize commodity structure of processing
trade step by step; direct processing trade to the orientation of high technology and high extra value.

Based on the commodities, classify processing trade into three types: the banned, the limited, and the permitted.

(1) the banned type refers to commodities of which the import is prohibited by the Foreign Trade Law of the
People’s Republic of China and on which the Customs cannot conduct bond supervision.

(2) the limited type refers to commodities whose imported materials or parts of which the prices at abroad
and at home are different greatly and difficult for the Customs to supervise.

As for the processing trade of limited commodities, “actual transferring”
of the bank guarantee account system should be applied. That is, except type
“A” enterprises defined by this text, when other enterprises engaged in
processing trade import restricted parts and materials, the customs should
collect surety as tariffs and import value-added tax, and return the surety
with interest to enterprises after they fulfil the processing within the time
limit and transact the procedure of cancel after verification.

(3) the permitted type refers to the other commodities not included in the banned and limited types. Except
type “C” enterprises defined by this text, the current system of “null transferring” should be applied to the permitted type.

The commodities catalogue of managerial classification of processing trade should be determined and adjusted
at due time by the State Economic and Trade Commission together with the Ministry of Foreign Economy and Trade Cooperation and the
General Administration of Customs, and promulgated by the Ministry of Foreign Economy and Trade Cooperation.

2.Apply classified management to enterprises engaged in processing trade.

Enterprises engaged in processing trade are classified into four types: type A, type B, type C, and type D.
The lists of enterprises of type A, C, and D are determined by the General Administration of Customs together with the Ministry of
Foreign Economy and Trade Cooperation, and promulgated by the Ministry of Foreign Economy and Trade Cooperation. Dynamic management
should be applied to management of the lists of enterprises classification, and the lists should be adjusted at due time. The enterprises
of type B will not be listed out.

(1) type “A” enterprises refer to bonded factories which are authorized by the General Administration of Customs
and supervised by the Customs-sent personnel who station at the factories and which engage in processing trade according to law and
have no record of rule-breaking acts of smuggling, or to enterprises which engage in processing trade of special industries such
as of airplanes, ships, etc. The imported materials and parts used for processing trade by type A enterprises are supervised by the
Customs, and the bank guarantee account system is not applied to them.

The bank guarantee account system is not exercised in the processing trade conducted by enterprises in bonded
areas, the Measures for Customs Supervision in Bonded Areas are implemented.

(2) type B enterprises refer to enterprises which are engaged in processing trade according to law and have
no record of rule-breaking acts of smuggling, the existing system of “null transferring” should continue to be applied to type B
enterprises.

(3) type C enterprises refer to enterprises which are confirmed to have committed some rule-breaking acts
by the Customs in accordance with the relevant provisions of the Ministry of Foreign Economy and Trade Cooperation and the General
Administration of Customs. As for type C enterprises, the actually transferring of bank guarantee account is applied. The customs
should collect guarantee on the imported materials and parts for processing trade equals to the amount of import tax and import value-added
tax that should be imposed.

(4) type D enterprises refer to enterprises which are confirmed to have committed the acts of smuggling or
not less than three times of rule-breaking acts by the Customs. As to type D enterprises, in addition to the handling by the Customs
according to law, the competent department of foreign economy and trade should suspend their operations rights of processing trade.
As to enterprises with foreign investment, the competent department of foreign economy and trade should notify the Customs to suspend
their import and export business for one year.

As for the enterprises engaged in commissioned processing business, the classification principles and management
measures thereof are implemented by reference to the provisions in this Part.

3.The management of “actual transferring” of bank guarantee account

Enterprises engage in processing trade of which the imported materials and parts belong to the type of limited
commodities and type C enterprises should, when handling bank guarantee account according to provisions, deposit the guarantee
into the designated account opened by the Customs in the Bank of China. After the enterprise has proceeded and exported its products
and undertaken the procedure of cancellation after verification within the stipulated time limit, the Bank of China should, on the
basis of the notice of account cancellation issued by the Customs, undergo the procedure of refund of guarantee, and calculate and
pay interest according to the interest rate of current deposit. Where an enterprise does not export the products or sell the products
in domestic market upon approval, the Customs should timely notify the Bank of China to transfer the guarantee and its interest into
tax and interest of deferred tax.

4.Strengthen the management of processing trade at different localities.

As for processing at different Customs territories, the operation unit of processing trade should closely
contact the competent department of foreign economy and trade as well as the competent Customs at the place where the processing
and producing enterprise is located, and should be strict in checking the factory and in the management of contract registration
and record.

As for the processing trade in the form of commissioned processing, the operation unit must sign a commission
contract of processing with the processing and producing enterprise. The operation unit should not sell the imported materials and
parts with bond to the processing and producing enterprise, otherwise, it should be punished according to the relevant provisions
of the Customs Law of the People’s Republic of China.

When the operation unit commissions a type C enterprise to process, the Customs must collect corresponding
amount of guarantee from the operation unit and then undertake the record of contract. The operation unit should not commission type
D enterprises to process.

5.Restrain the management on changing factory to further process.

(1) when the processing trade enterprises transact the business of further processing and then exporting with
the bonded commodities which have been carried froward, the enterprises should abide by the provisions on classified management of
commodities, apply for the verification from the competent department of foreign economy and trade. After obtaining the verification,
the enterprises may go to the Customs with the verifying document and undergo the procedure of carrying forward, the Customs then
apply strict supervision with bond according to the approval document of the competent department of the foreign economy and trade.

(2) as for limited commodities and those which type C enterprises need to further process in another factory,
the Customs should supervise them according to the approaches applied in transportation between different territories or computer-net
management. If transportation between different territories or computer-net management cannot be realized, the Customs will collect
guarantee equaling to tax for forwarding and further processing of bonded commodities.

(3) As for the business of forwarding and further processing, the involved enterprises may settle accounts
in a similar way as that of export and import trade, and undergo the procedure of paying exchange when importing and receiving exchange
when exporting as well as cancellation after verification.

6.Further perfect protection mechanism of pursuing tax payment.

If the enterprises engaged in processing trade establish bank guarantee account for the first time, they must
provide basic account number and certification of the bank where they opened their accounts. Conversely, they must preserve basic
account number. When the enterprises are pursued tax payment from caused by rule-breaking acts, the Customs will draw up the notification
of detention and send it to the bank where they opened their basic accounts. The banks concerned must co-operate with the Customs
to detain tax in accordance with the Law of the People’s Republic China on Tax Collection.

7.Strictly control the act of domestic sale of the processing trade.

The finished products of processing trade should be re-exported, and should not enter domestic market. If
for some particular reasons the products need to be sold at home market or used to produce domestically sold commodities, the matter
must be reported to the competent department of foreign economy and trade next higher the original approving organ of contract. On
the basis of the approval document of the competent department of foreign economy and trade, the Customs should collect tax and tax
interest of the imported materials and parts according to the provisions of the State, the term for calculating interest begins from
the declaration date on which the materials and parts are imported and ends at the date of paying tax in arrears. If the imported
materials and parts are the commodities under the administration of import quota license or registration, the operation unit should
submit authentication or import authorization for domestic sale or producing domestically sold commodities. If the unit cannot submit
such an authentication within the term of cancellation of verification, apart from the due tax and tax interest, the customs will
impose a fine, which is more than 30% of the value of the parts and materials imported and less than 100% of them. The enterprises,
which are engaged in domestic sale of the bonded parts and materials imported or the processed products with no authentication, should
be handled according to the Customs Law of the People’s Republic of China.

8.Formulate the standards for wasting, strengthen cancellation after verification by the Customs.

The General Administration of Customs and the State Economic and Trade Commission should, together with the
relevant industry bureaus of the State, formulate and promulgate in batches the uniform national wasting quota standards for imported
commodities of processing trade, which are to be used as the basis for examination, approval and supervision as well as cancellation
after verification of the number of the imported parts and materials. The competent department of foreign economy and trade must
examine and approve of the contracts of processing trade (including the business of carrying forward the products and further processing)
according to the standards, the Customs must cancel after strict verification according to the standards.

9.Reinforce the co-ordination between departments and execute comprehensive management.

Processing trade is easily influenced by policies; it involves many links. The relevant competent departments
should co-operate closely, and realize the interconnection of computer system among department in the examination and approval, recording
and cancellation after verification in relation to processing trade. An inter-ministry meeting for processing trade should be set
up by the State Economic and Trade Commission, together the Ministry of Foreign Trade and Economic Cooperation, the General Administration
of Customs, the Ministry of Finance, the State Administration of Taxation, the People’s Bank of China, the State Administration of
Foreign Exchange and the Bank of China, which will regularly exchange information and study policies, so as to do a good job in the
administration of processing trade.

The contracts for processing trade, which have been approved by the competent department of foreign economy
and trade and been recorded by the Customs before the issuance of this Circular, should be implemented according to original provisions
of the bank guarantee account system.

The relevant competent departments should formulate specific administration measures respectively according
to the above-mentioned proposals, and put them into force as of June 1, 1999.

PROVISIONS ON ADMINISTRATIVE PENALTY AGAINST PRICE-RELATED UNLAWFUL PRACTICES

Category	PRICE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1999-08-01	Effective Date	1999-08-01

Provisions on Administrative Penalty against Price-related Unlawful Practices

(Approved by the State Council on July 10, 1999, promulgated by the State Development and Planning Commission on August 1, 1999)

Article 1 These Provisions are formulated according to the relevant provisions of the Price Law of People’s Republic of China (hereinafter referred to as Price Law) in order to penalize price-related unlawful
practices according to law and protect lawful rights and interests of consumers and operators.

Article 2 The competent price control departments of the people’s governments at or above the county level shall conduct supervision
and inspection on price-related activities according to law, and make decides on the administrative penalties against price-related
unlawful practices.

Article 3 Administrative penalties against price-related unlawful practices shall be decided by the competent price control departments
of the local people’s governments at the places where the price-related unlawful practices take place; if the competent price control
department of the State Council stipulates that the administrative penalties shall be decided by the competent price control departments
at higher levels, such stipulations shall prevail.

Article 4 If an operator, in violation of the provisions of Article 14 of the Price Law, commits any one of the following acts,
he shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than five times the
illegal earnings; if there are no illegal earnings, he shall be given a warning, and may also be fined not less than 30,000 yuan
nor more than 300,000 yuan; if the circumstances are serious, he shall be ordered to suspend the business for rectification, or have
his business license revoked by the administrative department of industry and commerce:

(1) colluding with others and control the market price, which impairs the lawful rights and interests of other
operators and consumers.

(2) except the sale of fresh goods, seasonal commodities or old stock at reduced price according to law, dumping
at price lower than cost in order to elbow out competitors or monopolize the market, which disturbs the normal order of production
and operation and impairs the rights and interests of the state and other operators.

(3) in providing the same commodities or services, carrying out price discrimination against other operators
with the same trade terms.

Article 5 An operator, in violation of the provisions of Article 14 of the Price Law, who forces up prices and pushes the prices
of commodities to rise too highly by fabricating and spreading price- rising information, or inveigling consumers or other operators
to transact with him by employing fake or misleading price instruments, shall be ordered to make corrections, have his illegal earnings
confiscated, and may also be fined not more than five times the illegal earnings; if there are no illegal earnings, he shall be given
a warning, and may also be fined not less than 20,000 yuan nor more than 200,000 yuan; if the circumstances are serious, he shall
be ordered to suspend the business for rectification, or have his business license revoked by the administrative department of industry
and commerce.

Article 6 An operator, in violation of the provisions of Article 14 of the Price Law, who raises or depresses prices in disguised
forms by selling or buying commodities or providing services by the means of driving up or down the rank, shall be ordered to make
corrections, have his illegal earnings confiscated, and may also be fined not more than five times the illegal earnings; if there
are no illegal earnings, he shall be given a warning, and may also be fined not less than 10,000 yuan nor more than 100,000 yuan;
if the circumstances are serious, he shall be ordered to suspend the business for rectification, or have his business license revoked
by the administrative department of industry and commerce.

Article 7 An operator who commits any one of the following acts by failing to implement government guided prices or government fixed
prices shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than five times
the illegal earnings; if there are no illegal earnings, he may be fined not less than 20,000 yuan nor more than 200,000 yuan; if
the circumstances are serious, he shall be ordered to suspend the business for rectification:

(1) setting down prices in excess of the floating range of government guided prices;

(2) setting down prices higher or lower than government fixed price;

(3) laying down prices for commodities or services the price of which are falling into the range of government
guided prices or government fixed prices without any authorization;

(4) advancing or postponing the implementation of government guided prices or government fixed prices;

(5) laying down charging items or standards for charges by himself;

(6) increasing charging standards in disguised forms such as disintegrating charging items, charging repeatedly
and widening charging range;

(7) continuing to charge fees on the items that the government has abolished by formal decree;

(8) in violation of provisions, charging fees in disguised forms such as cash deposit or mortgage;

(9) providing services and charging fees in compulsion or in disguised compulsion forms;

(10) providing services not in conformity with provisions but charging fees;

(11) other acts not implementing the government guided prices or government fixed prices.

Article 8 An operator who does not implement legal price intervention measures or emergency measures and commits any one of the
following acts shall be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than five
times the illegal earnings; if there are no illegal earnings, he may be fined not less than 40,000 yuan nor more than 400,000 yuan;
if the circumstances are serious, he shall be ordered to suspend the business for rectification:

(1) not excreting the system of price-raising declaration or of price-adjusting record;

(2) exceeding the range of price difference ratio or profit ratio;

(3) not implementing the prescribed check price or lowest protective price;

(4) not implementing the measure for centralizing price-setting authorities;

(5) not implementing the measure for freezing prices;

(6) other acts not implementing legal price intervention measures or emergency measures;

Article 9 If the operator mentioned form Article 4 to Article 8 is an individual, he may be fined not more than 50,000 yuan for
his price-related unlawful practices without any illegal earnings.

Article 10 An operator, in violation of laws or regulations, who makes exorbitant profits shall be ordered to make corrections, have
his illegal earnings confiscated, and may also be fined not more than five times the illegal earnings; if the circumstances are serious,
he shall be ordered to suspend the business for rectification, or have his business license revoked by the administrative department
of industry and commerce.

Article 11 An operator who, in violation of the provisions on clear marking of prices, commits any one of the following acts shall
be ordered to make corrections, have his illegal earnings confiscated, and may also be fined not more than 5,000 yuan:

(1) not marking prices;

(2) not marking prices according to prescribed contents and forms;

(3) selling commodities at overcharged prices in addition to marked prices, or charging unmarked fees;

(4) other acts violating the provisions on clear marking of prices.

Article 12 Those who refuse to provide information that is necessary in price supervision and inspection or provide fake information
shall be ordered to make corrections and given a warning; if no corrections are made by the expiration of the time limit, they may
be fined not more than 50,000 yuan, the persons in charge directly responsible and the other directly responsible persons shall be
imposed disciplinary sanctions.

Article 13 If the illegal activities of an operator are found to possess the following three conditions at the same time during price
supervision and inspection, the competent price control departments under governments may order him to suspend the related business
according to the provisions of Sub-paragraph 3 of Article 34 of the Price Law:

(1) the circumstances of the illegal activities are complex and serious, which may be given comparatively
severe punishment upon investigation;

(2) the illegal activities will continue if the related business is not suspended;

(3) the illegal activities may influence the confirmation of the illegal facts and other measures can not
guarantee the inspection if the related business is not suspended.

When the competent price control departments under governments conduct price supervision and inspection, the
law enforcement officials shall not be less than two, and they shall show their credentials to the operators or persons concerned.

Article 14 Operators causing consumers or other operators to pay more money because of their price-related unlawful practices shall
be ordered to have it returned within the time limit; and they shall be ordered to look for consumers or operators paying more money
by publishing an announcement; the money that cannot be returned by the expiration of the time limit of the announcement shall be
regarded and handled as illegal earnings.

Article 15 Operators falling under the conditions listed in Article 27 of the Administrative Penalty Law shall be punished lightly
or given a lighter punishment according to law.

Under any one of the following circumstances, operators shall be punished with severity:

(1) the price-related unlawful practices are serious or have great social influence;

(2) they are found in violation provisions in every inspection;

(3) forging, altering, transferring or destroying proofs;

(4) transferring the capital or commodities related to the price-related unlawful practices;

(5) other price-related unlawful practices that shall be punished with severity.

Article 16 If an operator disagrees with the punishment decision made the competent price control department under government, he
shall firstly make an application for administrative reconsideration according to law; if he disagrees with the administrative reconsideration
decision, he may file a suit in the people’s court.

Article 17 If the fine is not paid by the expiration of the time limit, an additional fine shall be imposed at a rate of 3% the amount
of the fine per day; if the illegal earnings is not paid by the expiration of the time limit, an additional fine shall be imposed
at a rate of 0.2% the amount of the illegal earnings per day.

Article 18 As for the units and individuals that commit price-related unlawful practices listed in these Provision, if the circumstances
are serious and they refuse to make corrections, in addition to the punishments that shall be imposed upon them according to these
Provisions, the competent price control departments under governments may make public their price-related unlawful practices at their
business places till they make corrections.

Article 19 Price law enforcement officials disclosing State secrets or operators’ commercial secrets, or abusing their powers, neglecting
their duties, practising favoritism for personal interests shall be investigated for criminal liabilities according to law if crimes
are constituted; if no crimes are constituted, administrative sanctions shall be imposed upon them according to law.

Article 20 These Provisions take effect as of the date of promulgation.

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION (MOFTEC) ON ISSUES CONCERNING TECHNOLOGY INTRODUCTION OF ENTERPRISES WITH FOREIGN INVESTMENT

The Ministry of Foreign Trade and Economic Cooperation

Circular of the Ministry of Foreign Trade and Economic Cooperation (MOFTEC) on Issues Concerning Technology Introduction of Enterprises
with Foreign Investment

WaiJingMaoZiFa [1999] No.573

September 28, 1999

MOFTEC has consulted with the State Administration of Foreign Exchange (SAFE) on issues concerning the foreign exchange purchase and
payment of enterprises with foreign investment for technology introduction. Today SAFE promulgated the Circular for Simplifying Procedures
of Foreign Exchange Sale and Payment of Enterprises with Foreign Investment for Technology Introduction. To render coordination in
this regard, related issues are hereby notified as follows:

Competent local foreign trade and economic authorities should fully comply with the provisions in the state laws and regulations governing
foreign capital attraction and the Circular for Simplifying Procedures of Foreign Exchange Sale and Payment of Enterprises with Foreign
Investment for Technology Introduction of the State Administration of Foreign Exchange and carefully conduct examination and approval
of technology introduction contracts of enterprises with foreign investment.

When newly approved enterprises with foreign investment are formulating their joint operation contracts and statutes, if the attachments
of the joint operation contracts include those of technology introduction, it should be clearly stated in the approval document that
the approved joint operation contract includes an attachment of technology introduction contract (the name of the technology introduction
contract should be clearly stated).

Technology introduction contracts that have been approved as the attachments of the joint operation contracts of enterprises with
foreign investment should be confirmed by the foreign capital administration department of former examination and approval authorities
with a confirmation letter, in which the name of the technology introduction contract should be clearly stated.

All competent foreign trade and economic authorities should strengthen their examination of the authenticity of technology introduction
contracts. Foreign investors contributing capital in the form of technology do not fall in the range of confirmation.

It is hereby notified.

The Ministry of Foreign Trade and Economic Cooperation
1999-09-28

METEOROLOGICAL SERVICES

Category	AGRICULTURE, FORESTRY AND METEOROLOGY	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1999-10-31	Effective Date	2000-01-01

Law of the People’s Republic of China on Meteorological Services

CIRCULAR OF THE CHINA COMMISSION FOR THE PROMOTION OF INTERNATIONAL TRADE AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION OF THE PRC CONCERNING THE DISTRIBUTION OF THE MANAGEMENT MEASURES FOR THE EXAMINATION AND APPROVAL OF APPLICATIONS FOR HOLDING ECONOMIC AND TRADE EXHIBITIONS ABROAD

The China Commission for the Promotion of International Trade, the Ministry of Foreign Trade and Economic Cooperation

Circular of the China Commission for the Promotion of International Trade and the Ministry of Foreign Trade and Economic Cooperation
of the PRC Concerning the Distribution of the Management Measures for the Examination and Approval of Applications for Holding Economic
and Trade Exhibitions Abroad

MaoCuZhanGuan [2001] No.3

February 15, 2001

According to the requirements of the Letter of General Office of the State Council Concerning Relevant Questions on the Examination
and Approval and Administration of Applications for Holding Economic and Trade Exhibitions Abroad (GuoBanHan [2000] No.76), the China
Commission for the Promotion of International Trade and the Ministry of Foreign Trade and Economic Cooperation of the PRC have formulated
the Management Measures for the Examination and Approval of Holding Economic and Trade Exhibition Abroad, and hereby issue to you,
please carry out completely. Attachment:Management Measures for the Examination and Approval of Applications for Holding Economic and Trade Exhibitions Abroad

Chapter I General Provisions

Article 1

These Measures have been formulated according to the requirements of the Letter of General Office of the State Council Concerning
Relevant Questions on the Examination and Approval and Administration of Applications for Holding Economic and Trade Exhibitions
Abroad (GuoBanHan [2000] No.76) for the purpose of healthy and orderly progress of holding economic and trade exhibitions abroad.

Article 2

The phrase “holding economic and trade exhibitions abroad” (hereinafter referred to as “exhibitions held abroad” for short), as mentioned
in these Measures refers to: 1) holding economic and trade exhibitions, economic and trade exhibitions of friendly provinces and
cities, and economic and trade negotiations in the form of commodity exhibitions separately in foreign countries (hereinafter all
referred to as “holding separate exhibitions”); 2) organizing enterprises participating in international trade exhibitions and expositions
held by foreign countries.

Article 3

The China Commission for the Promotion of International Trade (hereinafter referred as “CCPIT” for short) is responsible for the examination,
approval, and administration of exhibitions held abroad.

Article 4

The Ministry of Foreign Trade and Economic Cooperation of the PRC (hereinafter referred as “MFTEC” for short) is responsible for the
macro-control of exhibitions held abroad, checking the credentials of exhibition organizers, and supervision and inspection of exhibitions
held abroad.

Chapter II Exhibition Organizers

Article 5

The CCPIT is responsible for organizing participants in the World Fair, registered or approved by the International Exhibition Bureau
in the name of the state, and is responsible for holding exhibitions abroad on behalf of the state. It may invite varies departments
of the State Council and local governments to organize enterprises and economic groups of varies regions and industries for participation.

Article 6

National chambers of commerce for import and export, and branches of the CCPIT in various industries, may hold exhibitions abroad,
but shall not go beyond their industries.

Article 7

If it is necessary to hold exhibitions abroad in the name of local governments, for the purpose of coordinating economic and trade
activities between local governments, the departments in charge of foreign economic and trade of all provinces, autonomous regions,
municipalities directly under the Central Government, cities directly under State planning (including former cities directly under
State planning) and special economic zones shall be responsible for organization and implementation, but shall not go beyond their
regions.

Article 8

Branches of the CCPIT in all provinces, autonomous regions, municipalities directly under the Central Government, cities directly
under State planning (including former cities directly under State planning) and special economic zones may hold exhibitions abroad,
but shall not go beyond their regions.

Article 9

Associations of foreign-funded enterprises approved by the MFTEC, professional exhibition companies, and other relevant entities may
hold exhibitions abroad within the scope as examined and approved by the MFTEC.

Chapter III Competence of Examination and Approval

Article 10

Plans for holding exhibitions abroad by the CCPIT, on behalf of the state, are submitted to the State Council for examination and
approval after being signed by the MFTEC, the Ministry of Foreign Affairs, and the Ministry of Finance. Other plans for holding exhibitions
abroad shall all be subject to the examination and approval of the CCPIT.

Chapter IV Procedures for Examination and Approval, and Record for Reference

Article 11

Management of examination and approval applies to the holding of exhibitions in those counties where exhibitions are centralized,
as well as those countries without diplomatic relations (hereinafter referred to as “countries by management of examination and approval”
for short). Management of record for reference applies to the holding of exhibitions in other countries (hereinafter referred to
as “countries by management of record for reference”).

Article 12

To hold exhibitions in countries by management of examination and approval, organizers should submit plans of holding exhibitions
to the CCPIT (a duplicate of the plan should be sent to the MFTEC) within the first 2 months of each quarter and no later than 6
months before the exhibition opens, and fill out the application for holding exhibitions abroad.

Article 13

The CCPIT examines the plans for holding exhibitions submitted by the organizers in the last month of each quarter (plans for the
first half of the following year are examined in June, plans for the second half of the following year are examined in September,
plans of next year late submitted are examined in December, plans late submitted of the year are examined and in March), and issues
ratification of holding exhibitions abroad. No more examinations will be added if there is no special situation.

Article 14

The CCPIT sends plans that have been approved upon examination to the MFTEC for countersignature. The MFTEC shall countersign the
plan within 10 workdays from the day of receipt. Plans of holding exhibitions in countries without diplomatic relations should be
sent to the Ministry of Foreign Affairs for countersignature at the same time.

Article 15

To hold exhibitions in countries by management of examination and approval, organizers should also submit an application of participating
members to the CCPIT for review, three months prior to the opening of the exhibition. The CCPIT shall review the application within
10 workdays of receipt and issue its review of participating members. A duplicate of the review should be sent to the MFTEC.

Article 16

To hold exhibitions in countries by management of record for reference, organizers should submit plans for holding exhibitions three
months before the exhibition opens, and fill out the application form for holding exhibitions abroad. The CCPIT should record the
application for reference in 10 workdays of receipt, and issue the record for reference of holding exhibitions abroad. A duplicate
of the record for reference should be sent to the MFTEC.

Article 17

Departments in charge of foreign economic and trade at all levels shall take the ratification or record of holding exhibitions abroad
issued by the CCPIT as the basis of issuing relevant exit certificates of exhibits; customs, entry and exit inspection and quarantine
institutions shall take the ratification or record of holding exhibition abroad issued by the CCPIC and relevant exit certificates
of exhibits as the basis of inspection and release of the exhibits; departments in charge of exchange control and authorized foreign
exchange banks at all levels shall take the ratification or record of holding exhibitions abroad issued by the CCPIT as the basis
of handling relevant procedures of foreign exchange usage and cancellation after verification.

Article 18

Departments of foreign economic and trade, foreign affairs and exchange control, and authorized administrations of foreign exchange
at all levels shall take the review of participating members or record of holding exhibitions abroad issued by the CCPIT as the basis
of handling procedures for participating members going abroad, for changing currencies or cancellation after verification.

Chapter V Criterions and Requirements of Examination and Approval

Article 19

The criteria for examining and approving exhibitions held abroad are: the demand of diplomacy or foreign economic and trade, political
and economic situation of the country where the exhibition is held, whether it is centralized to hold exhibitions in one country
or region, the predicted effect of the exhibition (exposition), how will the exhibitions be held, and how the participating enterprises
do in the exhibitions, the opinions of the Chinese embassies and consulates in those countries where the exhibition is held.

Article 20

The organizers should formulate feasible annual plans for holding exhibitions abroad and get the consent of the Chinese embassies
and consulates of the country where the exhibition is to be held.

Article 21

Departments in charge of foreign economic and trade of all provinces, autonomous regions, municipalities directly under the Central
Government, cities directly under State planning (including former cities directly under State planning) and special economic zones
may hold separate exhibitions, but not more than 2 in one year generally.

Article 22

In principle, two persons may attend the exhibition for each standard stall (3 3 m2) for 4 days plus the longest exhibition period.
No participating enterprise may arrange for more persons to attend and the persons attending the exhibition may not stay longer than
prescribed unless approval has been obtained.

Article 23

No unit shall organize and hold exhibitions abroad without approval; once a plan for holding exhibitions is approved, it shall not
be changed or cancelled at will; if there is any change, the organizer shall inform the departments in charge of examination and
approval and the embassies and consulates of China in the country of exhibition.

Chapter VI Management of Exhibition Group

Article 24

Organizers should abide by the laws and regulations of China strictly, keep to their promises, lay stress on services and take charges
reasonably.

Article 25

Organizers should encourage enterprises to choose commodities of new and high technology, high added value and good marketability
to take part in the exhibition. Counterfeit commodities, fake or inferior commodities and commodities that violate others intellectual
property right are forbidden to appear on exhibition.

Article 26

Organizers should lay stress on the effect of trade deals, and organize enterprises to carry out market research and trade negotiations
actively.

Article 27

Organizers should strengthen the management of members going abroad, organize participating members study disciplines of foreign affairs,
system of secrecy and etiquettes concerning foreign countries; traveling at public expenses in the name of holding exhibitions abroad
is strictly prohibited.

Article 28

Organizers should draw up strict management measures of the exhibition group and strengthen leadership to the exhibition group; organize
participating enterprises to display the exhibits and pay attention to the external image of the exhibition group; participating
members shall not leave their stands at will during the exhibition.

Article 29

Organizers should accept the leadership of embassies and consulates of China stationed in the country where the exhibition is held
and report to the embassies and consulates about the exhibition in time; strictly abide by laws and regulations of the country where
the exhibition is held, respect local customs and comply to varies rules of the exhibition (exposition).

Article 30

For exhibition groups composed of many organizers and large scale shows attending the same exhibition (exposition), the MFTEC shall
manage them by coordinating the rules of relevant exhibition units according to the circumstances.

Article 31

Organizers shall submit surveys and summaries of holding exhibition abroad to the CCPIT and the MFTEC in 1 month after the exhibition
ends. The CCPIT shall submit summaries of holding exhibitions abroad of last year to the State Council before the end of March every
year jointly with the MFTEC.

Chapter VII Punishments

Article 32

The CCPIT shall circulate a notice of criticism to organizers if they engage in one of the following acts but the circumstances are
not very serious:

Holding exhibitions abroad without approval;

Transferring the letter of ratification to others;

Traveling at public expenses in the name of holding exhibitions abroad;

Adding members of the exhibition group or extending the period abroad at will;

Infringing the interest of the participating enterprises;

Other acts against the rules that are not very serious.

Article 33

The CCPIT can break off plans of holding exhibitions abroad that have been approved if organizers engage in acts seriously against
the rules during the preparation of exhibitions.

Article 34

The CCPIT shall suspend the application for holding exhibitions abroad for 1 year if organizers engage in one of the following acts:

Holding exhibitions abroad without approval and causing serious consequences;

Altering, buying in and selling the letter of ratification for a profit or transferring the letter of ratification repeatedly;

Seriously violating disciplines of foreign affairs, and finance and economics, and causing serious consequences.

Infringing the interest of participating enterprises and having been complained repeatedly.

Article 35

The MFTEC shall render administrative punishments as canceling the qualification of holding exhibitions abroad if organizers engage
in one of the following acts:

Holding exhibitions abroad without approval repeatedly;

Counterfeiting the letter of ratification or altering, buying in and selling the letter of ratification for a profit repeatedly;

Seriously harming the external image of our country in foreign countries;

Having been published by the CCPIT repeatedly in 2 years;

Other acts that are seriously against the rules.

Article 36

Legal responsibility of relevant members that violate the laws during holding exhibition abroad shall be investigated according to
the law.

Chapter VIII Supplementary Provisions

Article 37

The Measures come into effect as of the day of publishing and distribution. If relevant rules for holding exhibitions abroad put in
force before conflict with the Measures, the Measures shall prevail.

Article 38

Plans for holding exhibitions in Hong Kong, Macao Special Administrative Region and Taiwan shall still be examined and approved by
the MFTEC.

Attachment:Countries to Which Management of Examination and Approval of Holding Exhibitions Abroad is Applied

Countries where exhibitions are centralized: Germany, Italy, France, Britain, Spain, Switzerland, Russia, Israel, the United Arab
Emirates, Japan, Korea, Thailand, Singapore, Egypt, South Africa, the United State, Brazil, Australia.

Countries without diplomatic relations.

The China Commission for the Promotion of International Trade, the Ministry of Foreign Trade and Economic Cooperation
2001-02-15

INTERIM REGULATIONS ON PUNISHMENT FOR IMPAIRMENT OF STATE CURRENCY

DECISION OF THE STATE COUNCIL CONCERNING THE ESTABLISHMENT OF A MARITIME ARBITRATION COMMISSION WITHIN THE CHINA COUNCIL FOR THE PROMOTION OF INTERNATIONAL TRADE

Category	ARBITRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1958-11-21	Effective Date	1958-11-21

Decision of the State Council of the People’s Republic of China Concerning the Establishment of a Maritime Arbitration Commission Within the China Council for the Promotion of International Trade

Note:

(Adopted at the 82nd Meeting of the State Council on November 21, 1958)

With a view to settling maritime disputes through arbitration, it is
necessary to set up an arbitral body within a relevant social organization. It
is hereby decided as follows:

1. There shall be established within the China Council for the Promotion
of Internatinnal Trade a Maritime Arbitration Commission (Note (1)) to settle:

a. disputes over the remuneration for salvage services rendered by
sea-going vessles to each other or by a sea-going vessel to a river craft or
vice versa;

b. disputes arising from collisions between sea-going vessels or between
see-going vessels and river craft or from damages caused by sea-going vessels
to harbour structures or installations;

c. disputes arising from chartering sea-going vessels, agency services
rendered to sea-going vessels, carriage by sea in virtue of contracts of
affreightment, bills of lading or other shipping documents, as well as
disputes arising from marine insurance.

2. The Maritime Arbitration Commission takes cognizance of maritime
disputes in accordance with the relevant contracts, agreements and/or other
documents concluded between the disputing parties either prior or subsequent
to the occurrence of disputes.

The Maritime Arbitration Commission may endeavour to settle through
mediation any dispute of which it has taken cognizance.

3. The Maritime Arbitration Commission shall be composed of 21-31 members
to be selected and appointed by the China Council for the Promotion of
International Trade for a term of two years from among persons having special
knowledge in navigation, sea transportation, foreign trade, insurance and law.

4. The Maritime Arbitration Commission shall elect a Chairman and 1-3
Vice-Chairmen from among its members.

5. When a dispute is submitted for arbitration, the disputing parties
shall each choose an arbitrator from among the members of the Maritime
Arbitration Commission. The arbitrators so chosen shall jointly select from
among the members of the Maritime Arbitration Commission a presiding
arbitrator to form, in association with the arbitrators, an Arbitration
Tribunal to act in a body. The disputing parties may also jointly choose from
among the members of the Maritime Arbitration Commission a sole arbitrator to
form by himself a Tribunal to act singly.

The disputing parties shall choose the arbitrators within the time fixed
by the Maritime Arbitration Commission or agreed upon between the parties, and
the arbitrators so chosen shall also select the presiding arbitrator within
the time fixed by the Maritime Arbitration Commission. If one of the parties
fails to choose an arbitrator within the prescribed time limit, the Chairman
of the Maritime Arbitration Commission shall then, upon the request of the
other party, appoint the arbitrator for the former party. If the arbitrators
so chosen or appointed cannot agree upon the choice of the presiding
arbitrator within the prescribed time limit, the Chairman of the Maritime
Arbitration Commission shall then select a presiding arbitrator for them.

6. Either of the parties in dispute may authorize the Maritime Arbitration
Commission to choose for him an arbitrator who shall, jointly with the
arbitrator chosen by the other party, select a presiding arbitrator to form,
in association with the arbitrators, an Arbitration Tribunal to act in a body.
If, by mutual agreement, both parties jointly delegate the choice of
arbitrators to the Maritime Arbitration Commission, the Chairman of the
Maritime Arbitration Commission, may appoint a sole arbitrator to form by
himself a Tribunal to act singly.

7. The disputing parties may appoint attorneys to protect their interests
during the proceedings of a case before the Maritime Arbitration Commission.

Such attorneys may be citizens of the People’s Republic of China or foreign
citizens.

8. In cases within the cognizance of the Maritime Arbitration Commission,
the Chairman of the Maritime Arbitration Commission may make decisions in
respect of measures of security and determine the amount and form of the
security for the claim.

Upon the request of one of the parties, the People’s Court of the People’s
Republic of China shall enforce the decision referred to in the preceding
paragraph in accordance with the law.

9. The Maritime Arbitration Commission may collect an arbitration fee not
exceeding two per cent of the amount of the claim.

10. The award handed down by the Maritime Arbitration Commission is final
and neither party shall bring an appeal for revision before a court of law or
any other organization.

11. The award by the Maritime Arbitration Commission shall be executed by
the parties themselves within the time fixed by the award. In case an award is
not executed after the expiration of the fixed time, the People’s Court of the
People’s Republic of China shall, upon the request of one of the parties,
enforce it in accordance with the law.

12. Rules concerning the Procedure of Arbitration shall be formulated by
the China Council for the Promotion of International Trade.

Note:

(1) Concerning the scope of cases to be taken cognizance of by the
Maritime Arbitration Commission, new provisions have been formulated by the
Notice of the General Office of the State Council which is issued on September
2, 1982. On June 21, 1988, the State Council renamed the Maritime Arbitration
Commission as the China Maritime Arbitration Commission, and agreed that the
rules of arbitration procedure shall be amended. – The Editor

SPECIFIC INSTRUCTIONS ON ENTRUSTMENT FOR AVERAGE ADJUSTMENT

China Laws

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

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

INTERIM PROVISIONS ON IMPOSING ADMINISTRATIVE OR DISCIPLINARY PUNISHMENTS ON CHEATED OR ILLEGAL PURCHASE, EVASION AND ILLEGAL BUYING AND SELLING OF FOREIGN EXCHANGE AND OTHER PRACTICES IN VIOLATION OF FOREIGN EXCHANGE CONTROL REGULATIONS

CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION, THE STATE ECONOMIC AND TRADE COMMISSION ON PRINTING AND ISSUING MEASURES OF THE CUSTOMS FOR ADOPTING CLASSIFIED ADMINISTRATION OVER ENTERPRISES

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON ISSUING THE PROPOSALS OF THE STATE ECONOMIC AND TRADE COMMISSION AND OTHER DEPARTMENTS ON FURTHER IMPROVING THE BANK GUARANTEE ACCOUNT SYSTEM FOR PROCESSING TRADE

PROVISIONS ON ADMINISTRATIVE PENALTY AGAINST PRICE-RELATED UNLAWFUL PRACTICES

CIRCULAR OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION (MOFTEC) ON ISSUES CONCERNING TECHNOLOGY INTRODUCTION OF ENTERPRISES WITH FOREIGN INVESTMENT

METEOROLOGICAL SERVICES

CIRCULAR OF THE CHINA COMMISSION FOR THE PROMOTION OF INTERNATIONAL TRADE AND THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION OF THE PRC CONCERNING THE DISTRIBUTION OF THE MANAGEMENT MEASURES FOR THE EXAMINATION AND APPROVAL OF APPLICATIONS FOR HOLDING ECONOMIC AND TRADE EXHIBITIONS ABROAD

INTERIM REGULATIONS ON PUNISHMENT FOR IMPAIRMENT OF STATE CURRENCY

DECISION OF THE STATE COUNCIL CONCERNING THE ESTABLISHMENT OF A MARITIME ARBITRATION COMMISSION WITHIN THE CHINA COUNCIL FOR THE PROMOTION OF INTERNATIONAL TRADE

SPECIFIC INSTRUCTIONS ON ENTRUSTMENT FOR AVERAGE ADJUSTMENT

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7