China Laws

PROCEDURES OF SHANGHAI MUNICIPALITY ON ENDOWMENT INSURANCE FOR TOWN EMPLOYEES

Procedures of Shanghai Municipality on Endowment Insurance For Town Employees

CHAPTER I GENERAL PROVISIONS CHAPTER II ORGANIZATION CHAPTER III PAYMENT OF ENDOWMENT INSURANCE PREMIUMS CHAPTER IV ENJOYMENT OF ENDOWMENT
INSURANCE TREATMENT CHAPTER V USE AND ADMINISTRATION OF ENDOWMENT INSURANCE FUND CHAPTER VI SETTLEMENT OF DISPUTES AND PUNISHMENT
CHAPTER VII SUPPLEMENTARY PROVISIONS

Article 1 In order to guarantee the basic needs of life after retirement for town employees, these Procedures are formulated in accordance
with the Plan of Shanghai Municipality for the Implementation of Reform of Endowment Insurance System for Town Employees.

Article 2 The endowment insurance as defined in these Procedures refers to the social security system, set up through legal procedures, organized
and controlled by the competent government department, under which units and employees have the mutual obligation to pay endowment
insurance premiums, and retirees enjoy basic endowment insurance treatment according to the payment of premiums for endowment insurance.

Article 3 These Procedures shall apply to town administrative agencies, enterprises and institutions (hereinafter referred to as units), and
employees and retirees of these units.

These Procedures shall not apply to aliens in foreign-invested enterprises or units and personnel otherwise stipulated by the State.

Article 4 The endowment insurance follows the principles of sharing expenses among the State, units and individuals, combining individual savings
with unified planning and mutual aid, and combining guaranty of the basic needs of life for retirees with stimulation of the initiative
of employees.

Units have the obligation to pay endowment insurance premiums for their employees while employees have the obligation to pay insurance
premiums for themselves.

An employee’s rights to have his/her unit pay endowment insurance premiums and to enjoy endowment insurance treatment after retirement
are protected by the law and no infringement of these rights by any unit or individual is allowed.

Article 5 The reform of this Municipality’s endowment insurance system aims at phasing in a multi-layer endowment insurance system. In addition
to the endowment insurance stipulated in these Procedures, unit supplementary endowment insurance shall be phased in units whose
conditions permit, and the employees who can afford it shall be encouraged to carry individual savings endowment insurance.

Article 6 This Municipality shall set up the Municipal Social Insurance Committee that is responsible for the examination of the development
plan of endowment insurance, the study and decision of major policies on endowment insurance, and the plan for maintaining or raising
the value of endowment insurance fund.

Article 7 The Municipal Social Insurance Administration is responsible for the administration of endowment insurance of this Municipality.
Its functions are:

1. To organize the implementation of endowment insurance system;

2. To prepare the development plan of endowment insurance;

3. To draft local laws and regulations on endowment insurance;

4. To formulate, jointly with relevant departments, the financial, accounting, statistical and internal auditing systems for endowment
insurance fund;

5. To supervise the collection of endowment insurance premiums, the disbursement of pensions, and the operation of endowment funds
for its appreciation;

6. To direct the work of endowment insurance management centers at the municipal, district and county levels; and

7. To execute the decisions of the Municipal Social Insurance Committee.

Article 8 Endowment insurance industry management centers are the agencies that undertake the routine business about endowment insurance. Their
functions are:

1. To take charge of the collection of endowment insurance premiums and the payment of pensions;

2. To manage individual endowment insurance accounts;

3. To answer inquiries about endowment insurance from units, employees and retirees; and

4. To handle other matters commissioned or authorized by the Municipal Social Insurance Administration.

CHAPTER III PAYMENT OF ENDOWMENT INSURANCE PREMIUMS

Article 9 All units referred to in Paragraph 1, Article 3 of these Procedures shall register endowment insurance for the units and their employees
in the endowment insurance administrative center designated by the Municipal Social Insurance Administration. Newly-established units
shall complete the procedures of endowment insurance registration within 1 month from the date of their establishment.

When a unit is divided or merged, goes bankrupt or is shut down, and recruits or dismisses employees (including resignation, unauthorized
quit, discharge, and removal), the unit shall, within 1 month, go through the formalities for alteration or cancellation of the endowment
insurance registration with the endowment insurance management center that handled the registration.

When registering endowment insurance, the endowment insurance management center shall set endowment insurance codes for units, open
individual endowment insurance accounts for employees and issue Endowment Insurance Books.

Article 10 An employee’s individual endowment insurance account shall remain unchanged for life. The Endowment Insurance Book must be used for
recording the employee’s successive working years before the implementation of these Procedures and the savings amount in his individual
endowment insurance account after the implementation of these Procedures, which are the basis for computing pensions granted upon
retirement.

When an employee changes his/her work unit, the Endowment Insurance Book must be transferred with the employee accordingly.

Article 11 Units and employees shall pay monthly endowment insurance premiums within the prescribed time limit. No delay or failure of payment
nor underpayment is allowed.

Article 12 A unit shall pay endowment insurance premium at the rate of 25.5% of the total amount of wages paid to all its employees in the preceding
month.

An employee shall pay endowment insurance premiums at the rate of 3% of his/her monthly average wage in the previous year, which is
to serve as the payment base. If an employee’s monthly average wage in the previous year is over 200% of those of the employees of
the whole city in the previous year, the excess above the 200% shall not be included in the base for premium payments. In case the
average monthly wage of an employee in the previous year is below 60% of those of the employees in the whole city in the previous
year, 60% of the monthly average wages of the employees in the whole city in the previous year shall be used as the payment base.

The same approach must be taken to computing the payment base of endowment insurance premium for units and for employees.

The adjustment of the rates of endowment insurance premium paid by units and employees shall be proposed by the Municipal Social Insurance
Administration and reported to the Municipal Social Insurance Committee for decision.

Article 13 The endowment insurance premiums paid by units shall be entered as expenditures through the following channels:

1. Entered as expenditures before tax for enterprises and institutions that balance their revenue and expenditures by themselves;
or

2. Entered as administrative expenses or operating expenses for administrative agencies and institutions with total or differential
budget.

Article 14 The endowment insurance premiums shall be paid in the following ways:

1. A unit shall withhold the endowment insurance premiums to be paid by employees from their monthly wages. The deduction from an
employee’s wages for endowment insurance premium may be exempt from individual income tax.

2. A unit shall go to the endowment insurance management center at regular time every month to verify the endowment insurance premiums
to be paid by the unit and its employees and pay the full amount as verified.

Article 15 The endowment insurance management center shall settle the savings amount in the individual endowment insurance account each year
and issue to each employee a statement of the endowment insurance premiums paid.

Article 16 The endowment insurance premium to be entered in the individual endowment insurance account shall include:

1. The endowment insurance premium paid by the individual; and

2. The portion of endowment insurance premium paid by the unit, which is to be entered in the individual account;

a. The amount to be entered at certain rates (8% for enterprises and institutions that balance revenue and expenditures by themselves,
10% for administrative agencies and institutions with full budget and 9% for institutions with differential budget) of the employee’s
individual payment base (not more than 150% of the monthly average wages of the employees in the whole city in the previous year);
and

b. The amount to be entered at 5% of the monthly average wages of the employees in the whole city in the previous year.

The portion of the endowment insurance premiums paid by the unit, which is to be entered in the individual account, shall be adjusted
in proportion to the rise of the individual payment rate.

Article 17 All the endowment insurance premiums paid by units must be used for social unified plannings except for the portion entered in the
individual endowment insurance account.

Article 18 The interest on the savings amount entered in the individual endowment insurance account shall be computed at a rate not lower than
the bank interest rate for residents’ time deposits mature in one year’s time in the same period.

Article 19 The endowment insurance fund shall be channeled to the financial special account under the city treasury for the independent social
security fund. The fund shall operate on two separate lines, the line of receipts and that of disbursement, which are to be put under
specialized management with the fund earmarked and used exclusively for its specified purpose.

CHAPTER IV ENJOYMENT OF ENDOWMENT INSURANCE TREATMENT

Article 20 A retiree who is enpost_titled to endowment insurance treatment shall satisfy the following requirements at the same time:

1. The employee has reached the retirement age stipulated by the State or this Municipality;

2. The unit and the employee have paid endowment insurance premiums as stipulated; and

3. The employee employed before the implementation of these Procedures has 10 successive working years (including premium payment
years) or the employee employed after the implementation of these Procedures and has paid premiums for fifteen years.

The retiree who meets the above requirements may go through the formalities for drawing pensions with the endowment insurance management
center and draw pensions monthly upon verification and determination by the endowment insurance industry management center.

Article 21 A jobless person who meets the requirement in Section 1 of Article 20 of these Procedures may go through the formalities for drawing
monthly pensions with the endowment insurance center.

Article 22 A person who got employment before the implementation of these Procedures and has been working for more than 5 but less than 10 successive
years (including payment years) by the retirement age shall quit working. An employee who has 5 successive working years and is incapacitated
by illness or non-working related injury may quit working after being ascertained by the Labor Appraisal Committee as having totally
lost working ability.

A person who has quit working for the above reasons is enpost_titled to corresponding pension treatment as stipulated.

Article 23 A person who got employment before the implementation of these Procedures with less than 5 successive years (including premium payment
years) or who got employment after the implementation of these Procedures and has paid premiums with less than 15 payment years may,
at the retirement age, apply to the endowment insurance industry management center for the payment of the total savings amount in
his/her individual endowment insurance account to be made to him/her and for the termination of his/her endowment insurance at the
same time.

Article 24 The person who meets the pension-drawing requirements may draw pensions for life. When the savings amount in his/her individual endowment
insurance account is exhausted, the pension may be paid from the pool of unified social security funds.

Article 25 After the death of an employee or retiree, the balance of the savings amount in his/her individual endowment insurance account paid
by himself/herself may be given in one lump sum to his/her heir determined through legal procedures.

Article 26 The Municipal Social Insurance Administration may require pensioners to go through the check-up formalities with the endowment insurance
industry management center at regular time. The payment of pension may be suspended for failure to complete the check-up formalities.

When a retiree can not go through the check-up formalities because of going abroad, or out of border or for other reasons, he/she
must produce a certificate of his/her survival in accordance with relevant provisions of the State.

When a retiree can not draw his/her pension in person because of going abroad or out of border or for other reasons and has to entrust
someone else to draw pensions for him/her, a notarized power of attorney shall be presented.

Article 27 The formula for computing the pension of the person who got employment after the implementation of these Procedures is:

Monthly pension = total savings in individual endowment insurance account/120

Article 28 The monthly pension the person who got employment before the implementation of these Procedures and retired or quit working before
the end of 1995 shall first be computed by the said formula and then augmented with a certain percentage of the individual accumulated
payment. The augmentation shall be determined according to the following provisions:

1. The monthly pension shall be augmented with 11% for the person who retired and whose payment years plus his/her successive working
years before the implementation of these Procedures are 10 or more years but less than 15 years. On this base, a further increase
of every 5 years shall bring in a rise of 1 percentage point accordingly, but the augmentation shall not exceed the limit of 16%.

2. The monthly pension shall be augmented with 2% for the person who retired from an administrative agency or institution and whose
payment years plus his/her successive working years before the implementation of these Procedures are 10 or more years but less than
15 years. On this base, an increase of every 5 years shall bring in a rise of 1 percentage point accordingly, but the augmentation
shall not exceed the limit of 7%.

3. The monthly pension shall be augmented by 10% for the person who quits working from an enterprise and 1% for the person who quits
working from an administrative agency or institution.

The above-mentioned person who reaches retirement age in any month of the year shall pay the premium for 12 months in the current
year of his/her retirement and the pension shall be augmented according to the provisions in the preceding Section.

The preferential treatment enjoyed by retired veteran cadres, model workers, senior experts and those who can have an early retirement
as stipulated by the State shall be carried out according to the original provisions as before.

Article 29 The savings amount in the individual endowment insurance account multiplied by a definite coefficient makes the savings amount for
the total working years for the person who got employment before the implementation of these Procedures and retires after January
1, 1996. The formula for computing his/her monthly pension is:

Monthly pension = savings amount in individual endowment insurance account x coefficient/120

When the pension computed according to the provision in the preceding Section is lower than the standard computed according to the
measure in Article 28 of these Procedures, the measure in Article 28 may be adopted to compute the pension instead.

Article 30 The savings amount in the individual endowment insurance account must only be used to pay monthly retirement pensions and must not
be diverted to any other purposes.

When a pension is paid to an retiree, a corresponding deduction must be made from the savings amount in the individual endowment insurance
account according to the proportion of the amount paid by the individual to the amount paid by the unit.

Article 31 The Municipal Social Insurance Committee shall set the lowest standard of retirement pension. In case the pension drawn by according
to the provisions is lower than the lowest standard, the pension may be granted according to the lowest standard.

The lowest standard of pension shall be adjusted with the economic development and the rising consumer price index of local residents.

Article 32 The retirement pension shall be adjusted every year according to the extent of rise in the local residents’ consumer price index
in the previous year, which becomes effective on April 1 of the current year. The pension of the person who retires in the current
year shall be adjusted the following year. No adjustment is made when the local residents’ consumer price index drops from the previous
year.

Article 33 This Municipality shall grant living allowances to retirees from time to time according to the national economic development and
the receipts and disbursement of the endowment insurance fund, and with reference to the employees’ actual wages. A special living
allowance may be granted additionally to retirees in special difficulties.

Article 34 After the death of a retiree, a funeral allowance, grants for lineal dependents and relief benefits shall be paid according to the
relevant provisions of the State and this Municipality.

CHAPTER V USE AND ADMINISTRATION OF ENDOWMENT INSURANCE FUND

Article 35 The sources of endowment insurance funds shall include:

1. Endowment insurance premiums paid by units and employees;

2. Income from the interest earned by endowment insurance fund;

3. Income from the operation of endowment insurance fund for its appreciation; and

4. Overdue fines collected according to the provisions of these Procedures.

Article 36 The endowment insurance fund shall be mainly used to pay retirement pensions. When the fund is not enough to make payment, it shall
be subsidized by the local finance.

The endowment insurance fund shall be put under the centralized management of the Municipal Social Insurance Administration and be
earmarked and used exclusively for its specified purpose and must not be drawn on arbitrarily by any unit or individual.

Article 37 The payments that can be made from the endowment insurance fund are:

1. Retirement pensions;

2. Funeral allowances, grants for lineal dependents, and relief benefits paid after the death of retirees according to the relevant
provisions of the State and this Municipality;

3. The balance of the part attributable to individual payment in the individual endowment insurance account to be given to the legal
inheritor(s) of the deceased employee or retiree; and

4. Living allowances granted under Article 33 of these Procedures.

The endowment insurance industry management center may draw a certain percentage of the endowment insurance premiums actually collected
as management fees upon approval by the Municipal Social Insurance Committee.

The management fees drawn according to the above Section shall be exempt from taxes or fees.

Article 38 The endowment insurance fund may be put into operation for its appreciation on condition that the regular payment and its safety
are secured, but must not be used to make investment with long recovery period, great risks or of a speculative nature. The increment
included in the endowment insurance fund after operation shall be exempt from taxes or fees.

Article 39 The Municipal Social Insurance Administration shall timely summarize, verify and report the use and management of the endowment insurance
fund to the Municipal Social Insurance Committee on regular basis or at the request of the latter.

Article 40 A budget and final accounts must be made annually for the collection, payment and operation of the endowment insurance fund for its
appreciation.

Article 41 The collection, payment and operation of the endowment insurance fund for its appreciation shall be supervised concurrently by the
public finance, and auditing departments and the financial regulatory departments.

Article 42 The Municipality shall set up the endowment insurance fund supervisory organization, consisting of the governmental department concerned
and representatives of the social public, to supervise the collection, payment and management of the endowment insurance fund. The
specific measures shall be separately formulated.

CHAPTER VI SETTLEMENT OF DISPUTES AND PUNISHMENT

Article 43 Disputes between an employee and his/her unit over the payment of endowment insurance premiums or disputes between an employee or
retiree or a unit and the endowment insurance management center may be referred to the Municipal Social Insurance Administration
for adjudication.

Article 44 An employee or retiree or a unit may ask the endowment insurance management center to check the payment of endowment insurance premiums
made by the individual or the unit and the payment of pensions. The endowment insurance management center shall provide free services.

Article 45 The endowment insurance management center may examine the payment of endowment insurance premiums. The Municipal Social Insurance
Administration shall instruct the unit that makes no payment of, or fails to make of, or makes underpayment of endowment insurance
premiums to pay the premiums within a prescribed time limit. If the payment is not made within the deadline, the Municipal Social
Insurance Administration may ask the bank to withhold the payment and may impose a fine 1 to 2 times as much as the unpaid amount.
The fine, however, shall not exceed 30,000 yuan.

Article 46 The endowment insurance management center shall impose an overdue fine equal to 0.2% of the payable amount for each day in arrears
on the unit that fails to make the payment of endowment insurance on time.

Income from overdue fines shall be included in the endowment insurance fund.

Article 47 When a retiree who enjoys the endowment insurance treatment dies, his/her lineal relative(s) or the unit concerned shall go through
the endowment registration cancellation formalities with the endowment insurance management center in good time.

If any person violates the above Section, overdraws or falsely claims pension by forging documents or by other means, the endowment
insurance management center shall recover the amount overdrawn or falsely claimed. If the case is serious, the Municipal Social Insurance
Administration may impose a fine one to five times as much as the amount overdrawn or falsely claimed. However, such fine shall not
exceed 30,000 yuan for a unit and 1,000 yuan for an individual.

Article 48 If the party concerned refuses to accept as final the specific administrative act of the Municipal Social Insurance Administration,
it may apply for administrative review according to the Regulations on Administrative Review or institute legal proceedings according
to the Administrative Litigation Law of the People’s Republic of China.

If the party concerned does not apply for review or institute legal proceedings within the prescribed period of time, nor does it
comply with the specific administrative decision, the administrative department that made the decision may apply to the people’s
court for enforcement according to the provisions of the Administrative Procedure Law of the People’s Republic of China.

Article 49 The public security organs shall inflict penalty on those who disturb the normal working order of endowment insurance agencies according
to the Regulations of the People’s Republic of China on Public Security Administration and the Imposition of Punishment.

CHAPTER VII SUPPLEMENTARY PROVISIONS

Article 50 The interim measures on endowment insurance for employees in foreign-funded enterprises and the measures on endowment insurance for
employees in privately-owned enterprises and individual industrialists and businessmen shall be separately formulated according to
the principles of these Procedures.

Article 51 The procedures on unit supplementary endowment insurance and individual savings endowment insurance in this Municipality shall be
separately formulated.

Article 52 The Municipal Social Insurance Administration shall be responsible for the interpretation of the specific application of these Procedures.

Article 53 These Procedures shall become effective on June 1, 1994.

Any unit or individual that failed to execute the Plan of Shanghai Municipality for the Implementation of Reform of Endowment Insurance
System for Town Employees during the period from January 1, 1993 until the time of implementation of these Procedures shall fulfill
the obligations under the Plan within 3 months starting from the date of implementation of these Procedures.

DECISION OF THE NATIONAL PEOPLE’S CONGRESS ON THE METHOD FOR THE FORMATION OF THE FIRST GOVERNMENT, THE FIRST LEGISLATIVE COUNCIL AND THE FIRST JUDICIARY OF THE MACAO SPECIAL ADMINISTRATIVE REGION

Category	SPECIAL ADMINISTRATIVE REGION	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1993-03-31	Effective Date	1993-03-31

Decision of the National People’s Congress on the Method for the Formation of the First Government, the First Legislative Council and the First Judiciary of the Macao Special Administrative Region

(Adopted at the First Session of the Eighth National People’s

Congress on March 31, 1993)

1. The First Government, the First Legislative Council and the
First Judiciary shall be formed in accordance with the principles
of state sovereignty and smooth transition.

2. The National People’s Congress shall establish a
Preparatory Committee for the Macao Special Administrative Region,
which shall be responsible for preparing the establishment of the
Region and shall prescribe the specific method for forming the
First Government, the First Legislative Council and the First
Judiciary in accordance with this Decision. The Preparatory
Committee shall be composed of mainland members and of Macao
members who shall constitute not less than 50 percent of its
membership. Its Chairman and members shall be appointed by the
Standing Committee of the National People’s Congress.

3. The Preparatory Committee for the Macao Special
Administrative Region shall be responsible for preparing the
establishment of the Selection Committee for the First Government
of the Macao Special Administrative Region (“the Selection
Committee”).

The Selection Committee shall be composed entirely of permanent residents of Macao and must be broadly representative.
It
shall include Macao deputies to the National People’s Congress,
representatives of Macao members of the National Committee of the
Chinese People’s Political Consultative Conference, persons with
practical experience who have served in Macao’s executive,
legislative and advisory organs prior to the establishment of the
Macao Special Administrative Region, and persons representative of various strata and sectors of society.

The Selection Committee shall be composed of 200 members,
among whom:

Industrial, commercial and financial sectors: 60

Cultural and educational sectors and other

professions:
50

Labor, social services, religious and

other sectors:
50

Former political figures, Macao deputies

to the National People’s Congress, and

representatives of the Macao members of the

National Committee of the Chinese People’s

Political Consultative Conference:
40

4. The Selection Committee shall recommend the candidate for
the first Chief Executive through local consultations or through
nomination and election after consultation, and report the
recommended candidate to the Central People’s Government for
appointment. The term of office of the first Chief Executive shall
be the same as the regular term.

5. The Chief Executive of the Macao Special Administrative
Region shall be responsible for preparing the formation of the
first Government of the Region in accordance with this Law.

6. The first Legislative Council of the Macao Special
Administrative Region shall be composed of 23 members, with 8
members returned through direct elections, 8 members returned
through indirect elections, and 7 members appointed by the Chief
Executive. If the composition of the last Macao Legislative Council
before the establishment of the Macao Special Administrative Region
is in conformity with the relevant provisions of this Decision and
the Basic Law of the Macao Special Administrative Region, those of the elected members who uphold the Basic Law of the Macao Special
Administrative Region of the People’s Republic of China and pledge
allegiance to the Macao Special Administrative Region of the
People’s Republic of China, and who meet the requirements set forth
in the Basic Law of the Region may, upon confirmation by the
Preparatory Committee, become members of the First Legislative
Council of the Region. Any vacancy in the first Legislative Council
of the Region shall be filled by a decision of the Preparatory
Committee.

The term of office of members of the first Legislative Council
of the Macao Special Administrative Region shall last until 15
October 2001.

7. The Preparatory Committee of the Macao Special
Administrative Region shall be responsible for organizing the Court
of the Macao Special Administrative Region in accordance with the
Basic Law of the Region.

GUARANTEE LAW

Category	OBLIGATORY RIGHT	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1995-06-30	Effective Date	1995-10-01

Guarantee Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Guaranty
Chapter III  Mortgage
Chapter IV  Pledge
Chapter V  Lien
Chapter VI  Deposit
Chapter VII  Supplementary Provisions

(Adopted at the 14th Meeting of the Standing Committee of the

Eighth National People’s Congress on June 30, 1995, promulgated by
Order No.50 of the President of the People’s Republic of China on June
30, 1995, and effective as of October 1, 1995 )
Contents

Chapter I General Provisions

Chapter II Guaranty

Section 1 Guaranty and Guarantor

Section 2 Contract of Guaranty and Mode of Guaranty

Section 3 Liability of Guaranty

Chapter III Mortgage

Section 1 Mortgage and Gage

Section 2 Contract of Mortgage and Mortgage Registration

Section 3 Effect of Mortgage

Section 4 Realization of Mortgage

Section 5 Mortgage of Maximum Amount

Chapter IV Pledg

Section 1 Pledge of Movables

Section 2 Pledge of Rights

Chapter V Lien

Chapter VI Deposit

Chapter VII Supplementary Provisions
Chapter I General Provisions

Article 1 This Law is formulated for the purpose of promoting
the capital flow and commodity circulation, safeguarding the
realization of obligatory right, and developing the socialist market
economy.

Article 2 In such economic activities as loans, sales, goods
freight and hire of processing work, etc., where the creditor needs to
safeguard the realization of his obligatory right by the way of
guarantee, a guarantee may be established in accordance with the
provisions of this Law.

The modes of guarantee provided for in this Law shall be guaranty,
mortgage, pledge, lien and deposit.

Article 3 In activities of guarantee, the principle of equality,
voluntariness, fairness and good faith shall be complied with.

Article 4 When a third party offers the creditor a guarantee on
behalf of the debtor, he may require the debtor to offer a counter-
guarantee.

The provisions on guarantee of this Law shall be applicable
to counter-guarantee.

Article 5 A guarantee contract shall be an accessory contract to
the master contract. Where the master contract is invalid, the
guarantee contract shall also be invalid. Where an agreement is
otherwise reached in the guarantee contract, that agreement shall
prevail.

Where a guarantee contract is affirmed to be invalid, the
debtor, surety or creditor is in fault, they shall respectively bear
the relevant civil liability according to their own faults.
Chapter II Guaranty

Section 1 Guaranty and Guarantor

Article 6 In this Law, guaranty means that the guarantor and the
creditor agree that, when the debtor fails to perform his debt, the
guarantor will perform the debt or bear the liability in accordance
with the agreement.

Article 7 A guarantor may be a legal person, other organization
or a citizen who has ability to discharge of debts on behalf of
others.

Article 8 The state administrative departments shall not be a
guarantor, unless they, with the approval of the State Council,
transfer loans for the purpose of using the loans of foreign
governments or international organizations.

Article 9 Such institutions and social organizations as schools,
kindergartens and hospitals, etc., which are established for the
purpose of public interest shall not be a guarantor.

Article 10 A branch or functional department of an enterprise as
legal person shall not be a guarantor.

If a branch of an enterprise as legal person has been delegated in
writing by the legal person, it may offer the guaranty within the
delegation extent.

Article 11 No organization or individual may oblige enterprises
or financial institutions such as a bank to offer guaranty for others;
enterprises and financial institutions such as a bank shall have the
right to refuse to offer guaranty for others when they are obliged to.

Article 12 Where there are two or more guarantors for the same
debt, the guarantors shall, according to their own guaranty shares
agreed in the guaranty contract, bear the guaranty liability. In case
of no agreement on the guaranty shares, the guarantors shall bear the
joint liability. Thus the creditor may demand any of the guarantors to
bear the entire guaranty liability, and any of the guarantors shall
bear the obligation to guarantee the entire realization of the
obligatory right. The guarantor who has borne the guaranty liability
shall be enpost_titled to claim repayment from the debtor, or to demand
other guarantors bearing the joint liability to satisfy him their
shares that they shall bear.

Section 2 Guaranty Contract and Guaranty Mode

Article 13 The guarantor and creditor shall enter into a
guaranty contract in written form.

Article 14 The guarantor and creditor may enter into a guaranty
contract respectively as for a single master contract, and may also,
within the maximum obligatory right amount as for a loan contract
occurred continuously during a certain period or a commodity trade
contract, enter into a guaranty contract.

Article 15 A guaranty contract shall contain the following
contents:

1. the categories and amount of a master obligatory right
guaranteed;

2. the time limitation to perform the debt by the debtor;

3. the guaranty mode;

4. the scope guaranteed by the guaranty;

5. the time period of guaranty; and

6. other items which the two parties consider necessary to agree.

If a guaranty contract has the contents prescribed in the
proceeding paragraph incomplete, it may be supplemented.

Article 16 The guaranty mode contains:

1. the general guaranty; and

2. the joint liability guaranty.

Article 17 That the parties in a guaranty contract agree that,
when the debtor cannot perform the debt, the guaranty liability is to
be borne by the guarantor, is the general guaranty.

The guarantor of a general guaranty may, without trial or
arbitration on the disputes of a master contract, and before the debt
cannot be performed yet with compulsory enforcement on the debtors’
property according to the law, refuse to bear the guaranty liability
for the creditor.

When there is any one of the following circumstances, the
guarantor shall not exercise the right prescribed in the proceeding
paragraph:

1. the address of the debtor has changed, so that it becomes a
major difficulty for the creditor to demand him to perform the debt;

2. the people’s court accepting a debtor’s bankruptcy case, orders
suspension of execution procedure; or

3. the guarantor abandons the right described in the proceeding
paragraph in written form.

Article 18 That the parties in a guaranty contract agree that
the guarantor and debtor bear the joint liability on a debt, is the
joint liability guaranty.

If the debtor of a joint liability guaranty cannot perform the
debt at the date of expiration of the debt performance time limitation
prescribed in the master contract, the creditor may demand the debtor
to perform the debt, and may also demand the guarantor to bear the
guaranty liability within the extent of guaranty.

Article 19 If no agreement or the agreement is not clear on the
guaranty mode by the parties, the guaranty liability shall be borne
according to the joint liability guaranty.

Article 20 The guarantor of a general guaranty and joint
liability guaranty shall be enpost_titled to have the counterplead right of
the debtor. If the debtor abandons his counterplead right, the
guarantor shall still be enpost_titled to have right to counterplead.

The counterplead right means that the right of, when the creditor
exercises his obligatory right, the debtor according to legal reasons
executing the petition right against the creditor.

Section 3 Guaranty Liability

Article 21 The guaranteed scope of a guaranty concludes the
master obligatory right and its interest, contractual fine, damage
compensation and expense of credit realization. If there is an
agreement otherwise in the guaranty contract, it shall be complied
with.

If no agreement or the agreement is not clear on the guaranteed
scope of a guaranty by the parties, the guarantor shall bear the
liability to the entire debt.

Article 22 During the time period of guaranty, where the
creditor assigns the master obligatory right to a third party
according to the law, the guarantor continues to bear the guaranty
liability within the original guaranteed scope of the guaranty. If
there is an agreement otherwise in the guaranty contract, it shall
be complied with.

Article 23 During the time period of guaranty, if the creditor
wants to permit the debtor to assign the debt, he shall get the
written consent from the guarantor, the guarantor bears no guaranty
liability on the debt assigned without his consent.

Article 24 If the creditor and debtor agree to change the master
contract, they shall get the written consent from the guarantor,
without this written consent, the guarantor bears no longer guaranty
liability. If there is an agreement otherwise in the guaranty
contract, it shall be complied with.

Article 25 If no agreement on guaranty period between the
guarantor and creditor of a general guaranty, the guaranty period
shall be 6 months from the date of expiration of the master debt
performance time limitation.

During the guaranty period agreed in the contract or described in
the proceeding paragraph, if the creditor has not filed a case against
the debtor or applied for the arbitration, the guarantor shall be
exempted from the guaranty liability; if the creditor has filed a case or
applied for the arbitration, the guaranty period shall be applied to the
provisions on the discontinuance of limitation of action.

Article 26 If no agreement on a guaranty period between the
guarantor and creditor of a joint liability guaranty, the creditor
shall be enpost_titled to have the right within 6 months from the date of
expiration of the master debt performance time limitation to demand
the guarantor to bear the guaranty liability.

During the guaranty period agreed in the contract or described in
the proceeding paragraph, if the creditor has not demanded the
guarantor to bear guaranty liability, the guarantor shall be exempted
from the guaranty liability.

Article 27 The guarantor shall make a guaranty on a credit
occurred continuously according to the provisions of Article 14 in
this law, if no agreement on guaranty time period, the guarantor may
at all times inform the creditor in written form to terminate the
guaranty contract, however the guarantor shall, as for the credit
occurred before having informed the creditor, bear guaranty liability.

Article 28 Where there are both a guaranty and a guarantee of
real right on a same obligatory right, the guarantor shall bear the
guaranty liability on the obligatory right except the guarantee of
real right.

If the creditor abandons the guarantee of real right, the
guarantor shall, within the scope of right abandoned by the creditor,
be exempted from the guaranty liability.

Article 29 Where a branch of an enterprise as a legal person
enters into a guaranty contract with the creditor without written
delegation from the enterprise as legal person or exceeding the extent
of delegation, this contract shall be invalid or the part exceeding
the extent of delegation shall be invalid; if the creditor and the
enterprise as legal person has default, they shall bear the relevant
civil liability according to their fault respectively; if the creditor
has no default, the civil liability shall be borne by the enterprise
as legal person.

Article 30 If there is any one of the following circumstances,
the guarantor shall not bear the civil liability:

1. the parties of the master contract collude to defraud the
guarantor to offer a guaranty; or

2. the creditor of the master contract take means of fraud or
coercion to force the guarantor to offer a guaranty against his true
intention.

Article 31 After the guarantor has borne the guaranty liability,
he shall be enpost_titled to claim repayment from the debtor.

Article 32 After the people’s court accepts a debtor’s bankruptcy
case, if the creditor does not declare his obligatory rights, the
guarantor may take part in the bankrupted property distribution,
exercise the right to claim repayment in advance.
Chapter III Mortgage

Section 1 Mortgage and Gage

Article 33 The mortgage prescribed in this Law, means a
guarantee that a debtor or a third party does not transfer the
possession of the property listed in Article 34 in this Law, make the
said property as obligatory right. When the debtor does not perform
the debt, the creditor shall be enpost_titled to have right to keep the
said property to offset the debt or have priority in satisfying his
claim out of proceeds from the auction, sale of the said property
pursuant to the provisions of this Law.

The debtor or third party prescribed in the proceeding paragraph
shall be the mortgagor, the creditor shall be the mortgagee, the
property offered to guarantee shall be the gage.

Article 34 The following properties may be mortgaged:

1. the house and other land fixtures owned by the mortgagor;

2. the machine, transportation means and other property owned by
the mortgagor;

3. the state-owned right to the use of land, house and other land
fixtures which the mortgagor is enpost_titled to dispose of pursuant to the
law;

4. the state-owned machine, transportation means and other
property which the mortgagor is enpost_titled to dispose of pursuant to the
law;

5. the right to the use of land on the unreclaimed land such as
unreclaimed mountains, unreclaimed valleys, unclaimed hills or
unreclaimed beaches which is contracted for management by the
mortgagor in accordance with law and is agreed to mortgage by the
contractee; or

6. other property which may be mortgaged in accordance with the
law.

The mortgagor may mortgage the properties listed in the
proceeding paragraph all together.

Article 35 The obligatory right guaranteed by the mortgagor shall
not exceed the value of the gage.

After the property is mortgaged, the surplus part that the said
property is more than the obligatory right guaranteed, may be
mortgaged once more, but shall not exceed the surplus part.

Article 36 If the house upon the state-owned land obtained
according to the law is to be mortgaged, the right to the use of the
state-owned land within the scope the house occupies shall be
mortgaged at the same time.

If the right to the use of state-owned land obtained by way of
transfer according to the law, when mortgaged the house upon the said
state-owned land shall be mortgaged at the same time.

The right to the use of land of enterprises of a township (town)
or village shall not be mortgaged separately. If the buildings of
enterprises of township (town) or village such as a plant is to be
mortgaged, the right to the use of the land within the scope it
occupies shall be mortgaged at the same time.

Article 37 the following properties shall not be mortgaged:

1. the ownership of land;

2. the ownership of the lands owned by collectives such as
cultivated land, house sites, private plots of cropland and hilly land
shall not be mortgaged, except that prescribed in item 5 of Article
34, paragraph 3 of Article 36 of this Law;

3. the facilities for education, the facilities for public health
and medicine and other facilities for social benefit of the
institutions or social units for purpose of public interest such as
schools, kindergartens or hospitals;

4. the properties whose ownership or right to use is uncertain or
in dispute;

5. the properties sealed up, distrained or regulated; or

6. other properties which shall not be mortgaged pursuant to law.

Section 2 Mortgage Contract and Gage Registration

Article 38 The mortgagor and the mortgagee shall enter into a
mortgage contract in written form.

Article 39 A mortgage contract shall contain the following
contents:

1. the categories and amount of master obligatory right
guaranteed;

2. the time limitation to perform the debt by the debtor;

3. the name, quantity, quality, situation, address, ownership or
right to the use of the gage;

4. the extent guaranteed by the mortgage; and

5. other items the parties consider necessary to agree.

If a mortgage contract has the contents prescribed in the
proceeding paragraph incomplete, it may be supplemented.

Article 40 When entering into a mortgage contract, the mortgagor
and the mortgagee shall not agree that, when the mortgagee is not
satisfied at date of expiration of the time limitation for the debt
performance, the ownership of the gage is to be transferred to the
creditor.

Article 41 Where the parties take the properties prescribed in
Article 42 of this Law to mortgage, he shall go through the gage
registration, the mortgage contract shall be effective as the date of
registration.

Article 42 The departments handling the gage registration are as
follows:

1. in case that the right to the use of land without fixtures upon
the land is to be mortgaged, it shall be the land administration
departments which upon verification issue certificates for the right
to the use of land;

2. in case that the city real estates or the building of the
township (town) or village enterprises such as a plant is to be
mortgaged, it shall be the departments prescribed by the local
people’s governments at and above the county level;

3. in case that the woods are to be mortgaged, it shall be the
forestry administration departments at and above the county level;

4. in case that aircraft, vessels or vehicles are to be mortgaged,
it shall be the registration departments for transportation means; or

5. in case that the equipment or other movables of a enterprise
are to be mortgaged, it shall be the administrations of industry and
commerce where the properties are located.

Article 43 Where the party takes other properties to mortgage,
he may go through the gage registration on a voluntary basis, the
mortgage contract shall be effective as the date of registration.

The party who has not handled the gage registration shall not be
opposed to a third party. If the party goes through the gage
registration, the registration department is to be the notary
department of the area where the mortgagor is located.

Article 44 When the gage registration is to be handled, the
following documents or their copies shall be produced to the
registration department:

1. the master contract and the mortgage contract; and

2. the certificate of ownership of or right to the use of the
gage.

Article 45 The information registered by the registration
department shall be allowed to inquire and read, copy by hand and
copy.

Section 3 Effect of Mortgage

Article 46 Within the guaranteed scope of a mortgage shall
be the master obligatory and its interest, contractual fine, damage
compensation and expense of realization of mortgage. If there is an
agreement otherwise in the mortgage contract, it shall be complied
with.

Article 47 At the date of expiration of the debt performance
period, if the debtor has not performed the debt so that the gage has
been distrained by the people’s court, from the date of distraining
the mortgagee shall be enpost_titled to collect the natural fruits
separated from the gage and the legal fruits that the mortgagee may
collect on the gage. If the mortgagee has not informed the fact of the
distraining of the gage to the obligatory person who shall satisfy the
claim out of proceeds for the legal fruits, the effect of mortgage shall
not extend to the said fruits.

The fruits of the proceeding paragraph shall eliminate in advance
the expense of collecting the fruits.

Article 48 If the mortgagor wants to mortgage a property that
has been leased, he shall notify the leasee in writing, and the
original lease contract continues to be effective.

Article 49 During the period of mortgage, if the mortgagor
assigns the gage registered, he shall inform the mortgagee and also
notify the assignee of the situation that the grant has been
mortgaged; if the mortgagor does not inform the mortgagee or notify
the assignee, the assigning behavior shall be invalid.

If the value amount of the gage assigned is obviously lower than
its value, the mortgagee may demand the mortgagor to offer the
equivalent guarantee; if the mortgagor does not offer, the gage shall
not be assigned.

The value amount from assigning the gage by the mortgagor shall
satisfy in advance the mortgagee for the claim out of the proceeds on
the obligatory right guaranteed or be deposited to the third party he
agreed with the mortgagee. The part exceeding the amount of the
obligatory right, shall be owned by the mortgagor, while the short
part shall be satisfied by the debtor.

Article 50 The mortgage right shall not be separated from the
obligatory right so that it is assigned solely or as a guarantee of
other obligatory rights.

Article 51 If the behavior of the mortgagor causes the value of
the gage to decrease, the mortgagee shall be enpost_titled to have right to
demand the mortgagor to stop his behavior. When the value of the gage
decreases, the mortgagee shall be enpost_titled to have right to demand the
mortgagor to restore the value of the gage, or offer a guarantee
equivalent to the value decreased.

If the mortgagor has no fault for the decrease of the value of the
gage the mortgagee shall demand the mortgagee to be offered only
within the extent of compensation for the damage obtained by the
mortgagor. The part of the gage of which the value does not decrease,
shall still be the guarantee of the obligatory right.

Article 52 The mortgage shall exist simultaneously with the
obligatory right it guarantees, where the obligatory right is extinct,
the mortgage shall be extinct as well.

Section 4 Realization of Mortgage

Article 53 At the date of expiration of the debt performance
period if the mortgagee has not been satisfied with the claim out of
proceeds, he may make an agreement with the mortgagor to keep the said
property to offset the gage or satisfies his claim out of proceeds
from the auction, sale of the said gage; if failing to make an
agreement, the mortgagor may file a case to the People’s Court.

After the gage is set off, auctioned or sold, the part of the
value amount exceeding the amount of the obligatory right shall be
owned by the mortgagor, the short part shall be satisfied by the
debtor.

Article 54 If there are two or more creditors who have a mortgage
on the same property, the value amount obtained from the auction, sale
of the gage shall be satisfied pursuant to the following provisions:

1. where the mortgage contract is effective through registration,
it shall be satisfied in the registration sequence of the gage; if
equal in sequence, then it shall be satisfied according to the
proportion of the obligatory right; or

2. where the mortgage contract is effective as the date of
signing, and the said gage has been registered, it shall be satisfied
according to the item 1 of this Article; if the gage has not
registered, it shall be satisfied in the sequence of the effective
date of the contracts, and if equal in sequence, it shall be satisfied
according to the proportion of the obligatory right. The registered
gage has priority to the unregistered gage.

Article 55 After the signing of the city real estates mortgage
contract, the houses built lately upon the land shall not belong to
the gage. When the said mortgaged real estates is needed to be
auctioned, the lately built houses upon the land may be auctioned
together with the gage, but as for the amount from the auction of the
lately built houses, the mortgagee shall not be enpost_titled to have
priority in satisfying the claim out of proceeds.

Where the right to the use of land of the unreclaimed land
contracted for management according to this Law is to be mortgaged, or
the right to the use of the land within the extent occupied by the
buildings of the township (town) or village enterprises such as a
plant is to be mortgaged, after the realization of mortgage, the
collective ownership and purpose of the land shall not be changed
without the legal procedure is gone through.

Article 56 The value amount obtained from the auction of the
right to the use of the stated-owned land appropriated, after paying
the amount equivalent to the transfer fee of the right to the use of
land which shall be paid, the mortgagee shall be enpost_titled to have
right in priority for the claim out of proceeds.

Article 57 The third party who offers guarantee of a mortgage on
behalf of the debtor, after the realization of the mortgage by the
mortgagee, shall be enpost_titled to have right to claim repayment from the
debtor.

Article 58 The mortgage right extinguishe

CRIMINAL PROCEDURE LAW

Category	LITIGATION	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1996-03-17	Effective Date	1997-01-01

Criminal Procedure Law of the People’s Republic of China [1996]

Contents
Chapter I  Aim and Basic Principles
Chapter II  Jurisdiction
Chapter III  Withdrawal
Chapter IV  Defense and Procuration
Chapter V  Evidence
Chapter VI  Compulsory Measures
Chapter VII  Incidental Civil Actions
Chapter VIII  Time Periods and Service
Chapter IX  Other Provisions
Chapter I  Filing a Case
Chapter II  Investigation
Chapter III  Initiation of Public Prosecution
Chapter I  Trial Organizations
Chapter II  Procedure of First Instance
Chapter III  Procedure of Second Instance
Chapter IV  Procedure for Review of Death Sentences
Chapter V  Procedure for Trial Supervision
Supplementary Provisions

(Adopted at the Second Session of the Fifth National People’s Congress on

July 1, 1979, revised in accordance with the Decision on Amendments of the
Criminal Procedure Law of the People’s Republic of China adopted at the
Fourth Session of the Eighth National People’s Congress on March 17, 1996)
Contents

Part One General Provisions

Chapter I Aim and Basic Principles

Chapter II Jurisdiction

Chapter III Withdrawal

Chapter IV Defense and Procuration

Chapter V Evidence

Chapter VI Compulsory Measures

Chapter VII Incidental Civil Actions

Chapter VIII Time Periods and Service

Chapter IX Other Provisions

Part Two Filing a Case, Investigation and Initiation of Public Prosecution

Chapter I Filing a Case

Chapter II Investigation

Section 1 General Provisions

Section 2 Interrogation of the Criminal Suspect

Section 3 Questioning of the Witnesses

Section 4 Inquest and Examination

Section 5 Search

Section 6 Seizure of Material Evidence and Documentary Evidence

Section 7 Expert Evaluation

Section 8 Wanted Orders

Section 9 Conclusion of Investigation

Section 10 Investigation of Cases Directly Accepted by People’s

Procuratorates

Chapter III Initiation of Public Prosecution

Part Three Trial

Chapter I Trial Organizations

Chapter II Procedure of First Instance

Section 1 Cases of Public Prosecution

Section 2 Cases of Private Prosecution

Section 3 Summary Procedure

Chapter III Procedure of Second Instance

Chapter IV Procedure for Review of Death Sentences

Chapter V Procedure for Trial Supervision

Part Four Execution

Supplementary Provisions

Part One General Provisions
Chapter I Aim and Basic Principles

Article 1 This Law is enacted in accordance with the Constitution to
guarantee the correct implementation of the Criminal Law, punish crimes,
protect the people, ensure the national security and social public security
and maintain the social order of the socialist society.

Article 2 The Criminal Procedure Law makes it the objective to ensure
the accurate and timely ascertainment through investigation of the criminal
facts, the proper application of the law and punishments of criminals, to
protect innocent people from undergoing criminal prosecution, to educate
citizens to observe law voluntarily and take an active part in the struggle
against criminal acts, to uphold the socialist legal system, to protect the
personal rights, property rights, democratic rights and other rights of
citizens, and to ensure the smooth progress of socialist construction.

Article 3 The public security organs are responsible for investigation,
detention, execution of arrests and preliminary examination. The people’s
procuratorates are responsible for conducting procuratorial work, approving
arrests, investigating cases directly accepted by the procuratorates and
initiating public prosecutions. The people’s courts are responsible for
adjudication. Any other organs, organizations and individuals have no right
to exercise such power, unless otherwise provided by law.

In conducting criminal proceedings, the people’s courts, the people’s
procuratorates and the public security organs must strictly observe this Law
and any relevant stipulations of other laws.

Article 4 The state security organs shall, according to the stipulations
of the law, handle criminal cases endangering the state security and
exercise the functions and power identical with those of the public security
organs.

Article 5 The people’s courts shall, according to the stipulations of the
law, exercise independently judicial power and the people’s procuratorates
shall, according to the stipulations of the law, exercise independently
procuratorial power, both of which shall be free of any interference by
administrative organs, social organizations and individuals.

Article 6 In conducting criminal proceedings, the people’s courts, the
people’s procuratorates and the public security organs must rely on the
masses, base themselves on facts and take the law as the criterion. The law
applies equally to all citizens and no privilege whatsoever is permissible
before the law.

Article 7 In conducting criminal proceedings, the people’s courts, the
people’s procuratorates and the public security organs shall divide the
responsibilities, coordinate their efforts and check each other to ensure the
correct and effective enforcement of the law.

Article 8 The people’s procuratorates shall, according to law, exercise
legal supervision over criminal lawsuits.

Article 9 Citizens of all nationalities shall have the right to use
their native spoken and written languages in court proceedings. The people’s
courts, the people’s procuratorates and the public security organs shall
provide interpretations or translations for any party to the court proceedings
who is not familiar with the spoken or written language commonly used in the
locality.

Where people of a minority nationality live in a concentrated community
or where a number of nationalities live together in one area, court hearings
shall be conducted in the spoken language commonly used in the locality, and
judgments, notices and other documents shall be issued in the written
language commonly used in the locality.

Article 10 In trying cases, the people’s courts shall apply the system
whereby the second instance is final.

Article 11 Cases in the people’s courts shall be heard in public, unless
otherwise provided by this Law. The accused shall have the right to defense,
and the people’s courts shall have the duty to guarantee his/her defense.

Article 12 No person shall be held guilty in absence of a judgment
rendered by the people’s court according to law.

Article 13 In trying cases, the people’s courts shall apply the system
of people’s assessors taking part in trials in accordance with this Law.

Article 14 The people’s courts, the people’s procuratorates and the
public security organs shall safeguard the procedural rights to which
participants in proceedings are enpost_titled according to law.

In cases where a minor under the age of 18 commits a crime, the legal
representative of the criminal suspect or the accused may be notified to be
present at the time of interrogation and trial.

Participants in proceedings shall have the right to file charges against
judicial, procuratorial and investigatory personnel whose acts infringe on
their citizens’ procedural rights or subject their persons to indignities.

Article 15 Subject to one of the following instances, no criminal
responsibility shall be investigated, and if investigation has been
undertaken, the case shall be dismissed, or prosecution shall not be
initiated, or the hearing shall be terminated, or innocence shall be
declared:

(1) If an act is obviously of minor importance, causing no serious harm,
and is therefore not deemed a crime;

(2) If the limitation period for criminal prosecution has expired;

(3) If an exemption of criminal punishment has been granted in a special
amnesty decree;

(4) If the crime is to be handled only upon complaint according to the
Criminal Law, but there has been no complaint or the complaint has been
withdrawn;

(5) If the criminal suspect or the accused is deceased; or

(6) Other instances for which laws provide an exemption from
investigation of criminal responsibility.

Article 16 Provisions of this Law shall apply to foreigners who commit
crimes for which criminal responsibility should be investigated.

If foreigners with diplomatic privileges and immunities commit crimes for
which criminal responsibility should be investigated, those cases shall be
resolved through diplomatic channels.

Article 17 The judicial organs of the country and their counterparts of
foreign countries may mutually request judicial assistance in criminal cases,
in accordance with the international treaties concluded or acceded to by the
People’s Republic of China, or according to reciprocal principle.
Chapter II Jurisdiction

Article 18 Public security organs shall conduct investigations into
criminal cases unless otherwise stipulated by law.

People’s procuratorates shall file cases and conduct investigations into
crimes regarding corruption, crimes regarding dereliction of duty committed
by public employees of the state, crimes regarding infringement on the
personal rights of, and on the democratic rights of, citizens committed by
staff personnel of state organizations by abusing their authority in respect
of illegal detention, extortion by torture of confession, retaliation and
false charges, and illegal rummage. Other cases involving serious crimes
committed by staff personnel of state organizations by abusing their
authority, may be filed with and investigated by people’s procuratorates,
subject to the decision made by the people’s procuratorate at provincial
level or above, when the people’s procuratorate concerned is required to
directly accept the case.

Cases of private prosecution shall be accepted directly by the people’s
courts.

Article 19 The basic people’s courts shall have jurisdiction as courts
of first instance over ordinary criminal cases; however, those cases which
fall under the jurisdiction of the people’s courts at higher levels as
stipulated by this Law shall be exceptions.

Article 20 The intermediate people’s courts shall have jurisdiction as
courts of first instance over the following criminal cases:

(1) Counter-revolutionary cases and cases endangering the national
security;

(2) Ordinary criminal cases possibly resulting in a judgment of life
imprisonment or death penalty; and

(3) Criminal cases involving crimes committed by foreigners.

Article 21 The higher people’s courts shall have jurisdiction as courts
of first instance over major criminal cases that pertain to an entire
province (or municipality directly under the Central Government, or
autonomous region).

Article 22 The Supreme People’s Court shall have jurisdiction as the
court of first instance over major criminal cases that pertain to the whole
nation.

Article 23 When necessary, people’s courts at higher levels may try
criminal cases over which people’s courts at lower levels have jurisdiction
as courts of first instance. If a people’s court at a lower level considers
the circumstances of a criminal case in the first instance to be major or
complex and to necessitate a trial by a people’s court at a higher level, it
may request that the case be transferred to the people’s court at the next
higher level for trial.

Article 24 A criminal case shall be under the jurisdiction of the
people’s court in the place where the crime was committed. If it is more
appropriate for the case to be tried by the people’s court in the place where
the accused resides, then that court may have jurisdiction over the case.

Article 25 When two or more people’s courts at the same level have
jurisdiction over a case, it shall be tried by the people’s court that first
accepted it. When necessary the case may be transferred for trial to the
people’s court in the principal place where the crime was committed.

Article 26 A people’s court at a higher level may instruct a people’s
court at a lower level to try a case over which jurisdiction is unclear and
may also instruct a people’s court at a lower level to transfer the case to
another people’s court for trial.

Article 27 The jurisdiction over cases in special people’s courts shall
be stipulated separately.
Chapter III Withdrawal

Article 28 In any of the following situations, a member of the judicial,
procuratorial or investigatory personnel shall voluntarily withdraw, and the
parties to the case and their legal representatives shall have the right to
demand his withdrawal:

(1) If he/she is a party or a near relative of a party to the case;

(2) If he/she or a near relative of his/her has an interest in the case;

(3) If he/she has served as a witness, expert witness or defender in the
current case or has represented a party in an incidental civil action; or

(4) If he/she has any other relations with a party to the case that could
affect the impartial handling of the case.

Article 29 Judicial, procuratorial and investigatory personnel shall not
be allowed to accept invitation to entertainment or gifts by the party and
the persons entrusted by him/her, or shall not be allowed to meet, in
violation of stipulations, the party and the persons entrusted by him/her.

Judicial personnel, procuratorial personnel and investigatory personnel
who have violated the provisions in the preceding paragraph, shall according
to law be investigated into the legal responsibility. The party and his/her
legal representative have the right to apply for the withdrawal of the
personnel concerned.

Article 30 The withdrawal of judicial, procuratorial and investigatory
personnel shall be determined respectively by the president of the court, the
chief procurator, and the head of a public security organ; the withdrawal of
the president of the court shall be determined by the court’s judicial
committee; and the withdrawal of the chief procurator or the head of a public
security organ shall be determined by the procuratorial committee of the
people’s procuratorate at the corresponding level.

A member of the investigatory personnel may not suspend investigation of
a case before a decision is made on his/her withdrawal.

In response to the decision on rejection of a party’s application for
withdrawal, the party and his/her legal representative may apply for a final
reconsideration.

Article 31 The provisions of Articles 28, 29 and 30 of this Law shall
also apply to court clerks, interpreters and expert witnesses.
Chapter IV Defense and Procuration

Article 32 In addition to the exercise by himself/herself of the right to
defense, the criminal suspect or the accused may entrust one or two persons
as his/her defenders, and following persons may be entrusted to be defenders:

(1) Lawyers;

(2) Persons recommended by a people’s organization or the unit by which
the criminal suspect or the accused is employed; and

(3) Guardians, relatives and friends of the criminal suspect or the
accused.

The persons undergoing criminal punishments or being deprived of or
restrained from personal liberty according to law shall not act as defenders.

Article 33 The right of a criminal suspect to entrust defenders in
public prosecution accrues on the day when the case is submitted for
examination and prosecution. The accused in a private prosecution has the
right to entrust defenders at any time.

The people’s procuratorate shall, within three days from the day of
receiving the file of the case submitted for examination and prosecution,
inform the criminal suspect of the right to entrust defenders. The people’s
court shall, within three days from the day of accepting the private
prosecution, inform the accused of the right to entrust defenders.

Article 34 In case a public prosecutor appears in court to conduct a
public prosecution while the accused has not entrusted his/her defenders on
account of economic difficulty or for other reasons, the people’s court may
designate a lawyer duty-bound to provide legal assistance to defend him/her.

In case the accused who is blind, deaf or mute or who is a minor, does
not entrust a defender, the people’s court shall designate a lawyer
duty-bound to provide legal assistance to defend him/her.

In case the accused who may possibly be sentenced to death penalty
does not entrust a defender, the people’s court shall designate a lawyer
duty-bound to provide legal assistance to defend him/her.

Article 35 The responsibility of a defender shall be to present,
according to the facts and the law, materials and opinions proving the
innocence of the criminal suspect or the accused, the pettiness of his/her
crime and the need for a mitigated punishment or exemption from criminal
responsibility, thus safeguarding the lawful rights and interests of the
criminal suspect or the accused.

Article 36 The defense lawyer may, from the day of the examination by
the people’s procuratorate of the prosecution case, consult, make extracts
from and reproduce the litigation documents, documents of technical
examination, and may meet and correspond with the criminal suspect in custody.
Other defenders with the permission of the people’s procuratorate may consult,
make extracts from and reproduce the afore-said file documents, and may meet
and correspond with the criminal suspect in custody.

The defense lawyer may, from the day of accepting the case by the people’s
court, consult, make extracts from and reproduce the file documents on
criminal facts accused of, and may meet and correspond with the accused in
custody. Other defenders with the permission of the people’s court may
consult, make extracts from and reproduce the afore-said file documents, and
meet and correspond with the accused in custody.

Article 37 The defense lawyer may, with the consent of the witnesses
or other relevant units and individuals, acquire information related to the
case from them, or may apply to the people’s procuratorate, or the people’s
court for collecting or obtaining by order the evidence, or apply to the
people’s court for notifying witnesses to testify in the court.

The defense lawyer, with the permission of the people’s procuratorate or
people’s court, may with the consent of the victim, his/her near relatives
or the witnesses provided by the victim, acquire information related to the
case from them.

Article 38 The defense lawyer and other defenders shall not assist
the criminal suspects or the accused to conceal, destroy, frame up evidence
or act to collude with each other’s confessions, and shall not threaten,
entice witnesses to make alterations in testimony or give false testimony, and
shall not commit any acts which may cause interference in prosecution
activities conducted by judicial organs.

Legal responsibility shall be investigated into for violating the
provisions of the preceding paragraph.

Article 39 During a trial, the accused may refuse to have his/her
defender continue to defend him/her and may entrust his/her defense to
another defender.

Article 40 The victim and his/her legal representative or near relatives
in public prosecution, the parties and their legal representatives in an
incidental civil action, have the right to entrust agents ad litem from the
day when the case is submitted for examination and prosecution. The
prosecutor and his/her legal representative in private prosecution, the
parties and their legal representatives in an incidental civil action have
the right to entrust agents ad litem at any time.

The people’s procuratorates shall, within three days from the day of
receiving the file of the case submitted for examination and prosecution,
inform the victim and his/her legal representative or near relatives, the
parties and their legal representatives in an incidental civil action of the
right to entrust agents ad litem. The people’s courts shall, within three
days from the day of accepting a private prosecution, inform the prosecutor
and his/her legal representative, the parties and their legal representatives
in an incidental civil action of the right to entrust agents ad litem.

Article 41 Agents ad litem shall be entrusted by reference to the
stipulations of Article 32 of this Law.
Chapter V Evidence

Article 42 All facts that prove the true circumstances of a case shall
be evidence.

There shall be the following six categories of evidences:

(1) material evidence and documentary evidence;

(2) testimony of witnesses;

(3) statements of victims;

(4) statements and exculpation of criminal suspects or the accused;

(5) expert conclusions;

(6) records of inquests and examination; and

(7) video and audio materials.

Any of the above evidence must be verified before it can be used as the
basis for deciding cases.

Article 43 Judicial, procuratorial and investigatory personnel must, in
accordance with the legally prescribed process, collect various kinds of
evidence that can prove the guilt or innocence of the criminal suspect or the
accused and the gravity of his/her crime. It shall be strictly forbidden to
extort confessions by torture and to collect evidence by threat, enticement,
deceit or other unlawful means. Conditions must be guaranteed for all
citizens who are involved in a case or who have information about the
circumstances of a case to objectively and fully furnish evidence and, except
in special circumstances, they may be brought in to help the investigation.

Article 44 The public security organ’s request for approval of arrest,
the people’s procuratorate’s bills of prosecution and the people’s court’s
written judgments must be faithful to the facts. The responsibility of anyone
who intentionally conceals the facts shall be investigated.

Article 45 The people’s courts, the people’s procuratorates and the
public security organs are empowered to collect, obtain by order evidence
from relevant units and individuals. The relevant units and individuals shall
furnish the true evidence.

Evidence involving state secrets shall be kept confidential.

Anyone that falsifies, conceals or destroys evidence, regardless of which
side of a case he/she belongs to, must be investigated under the law.

Article 46 In the decision of all cases, stress shall be laid on
evidence, investigation and study; credence shall not be readily given to
oral statements. The accused cannot be found guilty and sentenced to a
criminal punishment if there is only his/her statement but no evidence; the
accused may be found guilty and sentenced to a criminal punishment if
evidence is sufficient and reliable, even without his/her statement.

Article 47 The testimony of a witness may be used as a basis in deciding
a case only after the witness has been questioned and cross-examined in the
courtroom by both sides, that is, the public prosecutor and victim as well as
the accused and defenders, and after the testimonies of the witnesses on
all sides have been heard and verified. If a court discovers through
investigation that a witness has intentionally given false testimony or
concealed criminal evidence, it shall handle the matter in accordance with
the law.

Article 48 All those who have information about a case shall have the
duty to testify.

Physically or mentally handicapped persons or minors who cannot
distinguish right from wrong or cannot properly express themselves shall not
be qualified as witnesses.

Article 49 The people’s courts, people’s procuratorates and public
security organs shall guarantee the safety of witnesses and their near
relatives.

Criminal responsibility shall be investigated according to law for
menace, humiliation, beating, retaliation done to witnesses and their near
relatives in case of a crime established; and if the seriousness is not
enough for criminal punishments, an administrative penalty for public
security shall be imposed according to law.
Chapter VI Compulsory Measures

Article 50 The people’s courts, the people’s procuratorates and the
public security organs may, according to the circumstances of a case, summon
by warrant the criminal suspect or the accused, or order him/her to be bailed
out for summons or reside under surveillance.

Article 51 The people’s courts, people’s procuratorates and public
security organs may allow a criminal suspect or the accused to be bailed out
for summons or reside under surveillance, who is subjected to one of the
following conditions:

(1) Being possibly sentenced to surveillance, criminal detention or
incidental punishment independently applicable; or

(2) Being possibly sentenced to a punishment not less than fixed-term
imprisonment, but allowing him/her to be out on bail or reside under
surveillance may not possibly cause danger to the society.

Bail out for summons and reside under surveillance

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON SOME ISSUES CONCERNING FOREIGN EXCHANGE MARKET AFTER ENTERPRISES WITH FOREIGN INVESTMENT IMPLEMENTED BANKING FOREIGN EXCHANGE SETTLEMENT AND SALE

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Some Issues Concerning Foreign Exchange Market After Enterprises with
Foreign Investment Implemented Banking Foreign Exchange Settlement and Sale

HuiGuoHanZi [1996] No.183

June 28, 1996

Branches of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, municipalities directly under
the Central Government, municipalities separately listed on the State plan and special economic zones, and the head offices of all
designated Chinese-capital foreign exchange banks, and Foreign Exchange Transaction Center of China:

In order to ensure the smooth operation of the settlement and sale of foreign exchange of enterprises with foreign investment with
the banks, we hereby make some rules concerning foreign exchange market as follows:

The issues concerning the foreign exchange swap business:

(1)

Enterprises with foreign investment can buy or sell foreign exchange through the designated foreign exchange banks or through local
foreign exchange swap centers. All levels of foreign exchange swap centers can continue to conduct foreign exchange transactions
for the enterprises with foreign investment.

(2)

All levels of foreign exchange swap centers or the financial institutions as the members of China Foreign Exchange Trading System
(including branches) that adopts membership system, must check the valid documents and commercial invoices in strict accordance with
the Provisions on Administration of Settlement, Sale of and Payment in Foreign Exchange (Yinfa [1996] No.210 of the People’s Bank
of China) (hereinafter referred to as Provisions). The details are as follows:

For the foreign exchange sale application, it should be differentiated between the foreign exchange settlement account and the foreign
exchange special account first. As for the foreign exchange special account, it should be conducted with the approval of the SAFE.

For the foreign exchange purchase application, it should be conducted according to the following rules:

For the current account foreign exchange demand, the enterprises should hold corresponding valid documents and commercial invoices
respectively according to Article 13 , 14, 15, 16, 18, 21, and 22 of the Regulations. The foreign exchange swap centers or entrusted
financial institutions shall transfer the foreign exchange to the enterprises’ foreign exchange settlement account. But it should
be conducted within 7 working days, and be subject to the foreign exchange settlement account balance limit.

For the capital account foreign exchange demand, the enterprises should hold corresponding documents and approval of the SAFE respectively
according to Article 29 , 30, 31, of the Regulations. The foreign exchange swap centers or entrusted financial institutions shall
transfer the foreign exchange to the enterprises’ foreign exchange special account.

When the swap centers or entrusted financial institutions conduct foreign exchange transactions, they should indicate the trade volume
and date on the original valid documents submitted by the enterprises and stamp, and keep the copy of the valid documents and commercial
invoices for further check. The original valid documents and commercial invoices should be kept by the financial institutions that
conduct foreign exchange transactions for the enterprises.

The settlement time of the foreign exchange market

The settlement time of foreign exchange transactions on the national inter-bank foreign exchange market adopts the T+1 matter. According
to international standard, the settlement time of the settlement and sale of foreign exchange with the designated foreign exchange
banks also adopts the T+1 matter, which is uniform with the inter-bank foreign exchange market.

The band of the inter-bank foreign exchange market and the bank quoted rate

The People’s Bank of China shall continue to announce the daily middle exchange rate for the Renminbi against the U.S. dollar, the
Hong Kong Dollar, and the Japanese yen that is the trading currency on the inter-bank foreign exchange market.

(1)

The movement of the exchange rate of the Renminbi against the U.S. dollar in the inter-bank foreign exchange market is limited to
0.3% on either side of the middle exchange rate as announced by the PBC. The buying and selling rates of the Renminbi against the
Hong Kong dollar and the Japanese yen may not deviate more than 1% from the reference rate.

(2)

When the designated foreign exchange banks formulate the quoted exchange rate of the Renminbi against the U.S. dollar, the buying
and selling rates could not exceed 0.15% of the reference rate announced by the PBC. The deviation of their quoted buying and selling
rate of Renminbi against the Hong Kong dollar and the Japanese yen must not exceed 1% of the reference rate. Otherwise, it must be
reported to the SAFE timely for record. The margin between the buying and selling rate of other currencies may not exceed 0.5%. The
selling price for cash transactions is the same as the spot selling rate for all quoted currencies, and the buying price for cash
should not exceed 2.5% of its spot rate. All levels of SAFE must strengthen the supervision on the bank quoted rates according to
the above band.

The circular shall entr into force as of the issuing date.

The State Administration of Foreign Exchange
1996-06-28

FLOOD CONTROL LAW

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	1997-08-29	Effective Date	1998-01-01

Flood Control Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Flood Control Planning
Chapter III  Control and Prevention
Chapter IV  Administration of Flood Control Areas and Flood Control Works
Chapter V  Flood Control and Flood Fighting
Chapter VI  Guarantee Measures
Chapter VII  Legal Liability
Chapter VIII  Supplementary Provision

(Adopted at the 27th Meeting of the Standing Committee of the Eighth

National People’s Congress on August 29, 1997, and promulgated by Order
No. 88 of the President of the People’s Republic of China on August 29, 1997)
Contents

Chapter I General Provisions

Chapter II Flood Control Planning

Chapter III Control and Prevention

Chapter IV Administration of Flood Control Areas and Flood Control Works

Chapter V Flood Control and Flood Fighting

Chapter VI Guarantee Measures

Chapter VII Legal Liability

Chapter VIII Supplementary Provision
Chapter I General Provisions

Article 1 This Law is enacted with a view to preventing and controlling
flood, taking precautions against and alleviating calamities by
flood and waterlogging, maintaining the safety of people’s lives and
property, and safeguarding the smooth progress of the socialist modernization
construction.

Article 2 The work for flood control shall observe the principles of
unified planning, overall consideration, focusing on prevention, integrated
measures for treatment and subordinating local interests to general interests.

Article 3 The construction of flood control works should be incorporated
into the national economic and social development plan.

Flood control funds shall be raised according to the principle of
combining government input with rational payment by beneficiaries.

Article 4 The exploration and protection of water resources should be
subject to the overall arrangements for flood control and observe the
principle of combining the promotion of advantages with the elimination of
disadvantages.

The control of rivers and lakes and the construction of flood control
works should conform to the comprehensive plans for river basins and be
integrated with the comprehensive exploration of water resources in river
basins.

The comprehensive plans referred to in this Law mean those for the
exploration of water resources and the prevention and control of water
disasters.

Article 5 The work for flood control shall be carried out in the light of
river basins or administrative areas and according to a system by which
unified planning shall be implemented at different levels and consideration
given to the administration of river basins as well as the administration of
administrative areas.

Article 6 All units and individuals shall have the obligations to protect
flood control works and to take part in flood control and flood fighting
according to law.

Article 7 People’s governments at all levels should intensify the unified
leadership over the work for flood control, organize departments and units
concerned, mobilize social forces, depend on scientific and technological
progress, harness rivers and lakes in a planned way and take measures to
enforce the construction of flood control works in order to consolidate and
enhance flood control capacity.

People’s governments at all levels should organize departments and units
concerned and mobilize social forces to ensure flood control and flood
fighting and reconstruction and relief work after flood or waterlogging
calamities.

People’s governments at all levels should lend support to flood storage
and detention areas and provide compensations and aids according to the state
provisions after flood storing and detaining.

Article 8 The water conservancy administrative department under the State
Council shall, under the leadership of the State Council, be responsible
for routine duties of organization, coordination, supervision and guidance for
flood control nationwide. River basins administrative agencies set up by the
water conservancy administrative department under the State Council for major
rivers and lakes as designated by the state shall perform duties of
coordination, supervision and administration of flood control within their
jurisdiction as provided for by laws and administrative regulations and
authorized by the water conservancy administrative department under the State
Council.

Water conservancy administrative departments under local people’s
governments at or above the county level shall, under the leadership of the
people’s governments at the same level, be responsible for routine duties of
organization, coordination, supervision and guidance for flood control within
their respective administrative areas. Construction administrative departments
and other relevant administrative departments under local people’s governments
at or above the county level shall, under the leadership of the people’s
governments at the same level, be responsible for relevant work of flood
control within their scope of powers and duties.
Chapter II Flood Control Planning

Article 9 Flood control planning refers to the overall arrangement for
the prevention and control of flood and waterlogging calamities in a
certain river basin, river course or region, including river basin flood
control planning for major rivers and lakes designated by the state, flood
control planning of other rivers, river courses and lakes as well as regional
flood control planning.

Flood control planning should be subject to the comprehensive planning of
a certain river basin or region. Regional flood control planning should be
subject to the flood control planning for a certain river basin.

Flood control planning constitutes the basis for the control of
rivers and lakes and the construction of flood control works.

Article 10 Flood control planning for major rivers and lakes designated
by the state shall, in accordance with comprehensive river basin planning for
these rivers and lakes, be formulated by the water conservancy administrative
department under the State Council in conjunction with other relevant
departments and the people’s government(s) of the province(s), autonomous
region(s) and municipality(s) concerned directly under the Central Government,
and submitted to the State Council for approval.

Flood control planning for other rivers, river courses and lakes or
regional flood control planning shall, separately in accordance with
comprehensive river basin planning and comprehensive regional planning, be
formulated by water conservancy administrative departments under local
people’s governments at or above the county level in conjunction with other
relevant departments or regions, submitted to the people’s governments at the
same level for approval and then submitted to the water conservancy
administrative departments under the people’s governments at the next higher
level for the record. Flood control planning for rivers, river courses or
lakes involving two or more provinces, autonomous regions and municipalities
directly under the Central Government shall be drafted by the administrative
agency for the relevant river basin in conjunction with the water conservancy
administrative departments and other relevant departments under the people’s
government(s) of the province(s), autonomous region(s) and municipality(s)
directly under the Central Government wherein the river, river course or lake
drains water and, after the people’s government(s) of the province(s),
autonomous region(s) and municipality(s) involved directly under the Central
Government examines it and comes up with comments, be submitted to the water
conservancy administrative department under the State Council for approval.

Urban flood control planning shall, in accordance with the river basin
flood control planning and the regional flood control planning of the people’s
government at the next higher level, be formulated by the water conservancy
administrative department, the construction administrative department and
other relevant administrative departments under the people’s government of a
city which shall organize those administrative departments in the formulation
of the planning, and be included into the overall urban planning subject to
approval through the examination and approval procedures stipulated by the
State Council.

Amendment to flood control planning should be subject to the approval from
the original approval organ.

Article 11 The formulation of flood control planning should, following
the principle of ensuring key projects and considering others at the same
time, and integrating flood control with drought fighting, engineering
measures with non-engineering measures, take full account of the flood-drought
law, the relation of the upper and lower reaches and of both banks of a river,
and the requirements for flood control in the national economy, and be
coordinated with the national land planning and the overall land use planning
as well.

Flood control planning should include the protected objects, aims and
tasks of flood control, flood control measures and action plans, delimit the
flooded area, the flood storage and detention area and the flood control
protected area, and determine the principle for use of the flood storage and
detention area.

Article 12 Local people’s governments at or above the county level in
coastal areas which are threatened by storm tides should include the
prevention of storm tides into the flood control planning within their
respective areas, strengthen the construction of systems of anti-storm tides
works including sea walls (sea dykes), tidewater gates and coastal
shelter-forest, and supervise the design and construction of buildings and
constructions that should meet the requirements for the prevention of storm
tides.

Article 13 Local people’s governments at or above the county level in
areas where mountain torrents may trigger landslides, collapses and mud-rock
flows and in other area where mountain torrents frequently occur should
organize the departments in charge of geological and mineral administration,
water conservancy administrative departments and other relevant departments to
conduct a general investigation on hidden dangers of landslides, collapses and
mud-rock flows, to delimit zones for focal control, and to take prevention and
control measures.

Distribution of cities, towns and other inhabited areas as well as
factories, mines and trunk lines of railways and highways should avert the
threat of mountain torrents; for those having been built in places
threatened by mountain torrents, precautions should be taken.

Article 14 Local people’s governments concerned in areas liable to
waterlogging such as plains, depressions, river networks and embankment areas,
valleys and basins should formulate planning for elimination and control of
waterlogging, organize relevant departments and units to take corresponding
control measures, improve drainage systems, develop types and varieties of
waterlogging-enduring crops and take integrated measures for controlling
flood and waterlogging, drought, saline and alkaline land.

People’s governments of cities and towns should strengthen the
administration and construction of waterlogging drainage piping systems and
pumping stations in urban areas.

Article 15 The water conservancy administrative department under the
State Council should, in conjunction with the relevant departments and the
people’s governments concerned of provinces, autonomous regions and
municipalities directly under the Central Government, formulate the planning
for controlling estuaries in the Yangtze River, Yellow River, Pearl River,
Liao River, Huai River and Hai River.

Reclaiming land from seawaters in estuaries mentioned in the preceding
paragraph should conform to the planning for controlling estuaries.

Article 16 Land to be used for realignment of river courses as planned in
flood control planning and land to be used for dykes in planned construction
projects may be delimited as planned reserve zones upon verification by the
land administrative department and the water conservancy administrative
department in conjunction with the involved areas, and submitted for approval
of the people’s government at or above the county level within the scope of
powers authorized by the State Council. If land within the planned reserve
zones involves that to be used in other projects, the land administrative
department and the water conservancy administrative department should consult
with departments concerned for verification of land.

The planned reserve zones should be announced upon delimitation according
to the provisions of the preceding paragraph.

No industrial or mining facilities not related to flood control may be
constructed within the planned reserve zones. If special circumstances exist
under which it is really necessary for state industrial and mining projects to
occupy land within the planned reserve zones mentioned in the preceding
paragraph, approval should be obtained according to the procedures set by the
state for capital construction and consultations should be made with the
relevant water conservancy administrative department.

Land to be used for expanding or exploring man-made floodwater drainage
channels as determined in flood control planning may be delimited as planned
reserve zones to which the provisions in the preceding paragraph shall apply
upon verification by the land administrative department and the water
conservancy administrative department of the people’s government at or above
the provincial level in conjunction with other relevant departments and
regions and submitted for approval of the people’s government at or above the
provincial level within the scope of powers authorized by the State Council.

Article 17 Construction of flood control works or other hydraulic works
and hydropower stations in rivers and lakes should conform to the requirements
of flood control planning. Reservoirs should keep adequate storage capacity
for flood control according to the requirements of flood control planning.

When the feasibility study report for flood control works or other
hydraulic works and hydropower stations stipulated in the preceding paragraph
is submitted for approval pursuant to the procedures set by the state for
capital construction, a consent document for planning issued by the relevant
water conservancy administrative department which conforms to the requirements
of flood control planning should be enclosed as an appendix.
Chapter III Control and Prevention

Article 18 For the prevention and control of flood in rivers,
attention should be paid to flood storage as well as to flood discharge. The
smooth drainage of floodwater should be ensured by giving full play to flood
drainage capacity of river courses and flood redistribution and storage
functions of reservoirs, depressions and lakes, intensifying the protection of
river courses and taking measures to remove and dredge silt at regular
intervals in line with local conditions.

For the prevention and control of flood in rivers, measures
should be taken to protect and expand the coverage of forest, grass and other
vegetation in river basins, conserve water resources and intensify the
comprehensive control of water and soil conservation in river basins.

Article 19 In the realigning of river courses and building up
construction projects for leading the river direction or protecting
embankments, full consideration should be given to the relations between the
lower and upper reaches and between both sides of a river and the planned
realigning and leading line be followed. The direction of a river shall not be
changed at will.

Planned realigning and leading lines for major rivers designated by the
state shall be worked out by river basin administrative agencies and submitted
to the water conservancy administrative department under the State Council for
approval.

Planned realigning and leading lines for other rivers or river courses
shall be worked out by water conservancy administrative departments under
local people’s governments at or above the county level and submitted to the
people’s governments at the same level for approval. Planned realigning and
leading lines of rivers or river courses involving two or more provinces,
autonomous regions and municipalities directly under the Central Government
and of boundary river courses of provinces, autonomous regions and
municipalities directly under the Central Government shall, under the
leadership of river basin administrative agencies concerned, be worked out by
water conservancy administrative departments under the people’s governments of
provinces, autonomous regions and municipalities directly under the Central
Government of involved rivers or river courses and, after the people’s
governments concerned examine the proposed lines and come up with comments,
submitted to the water conservancy administrative department under the State
Council for approval.

Article 20 Where the realignment of river courses or lakes involves
navigable waterways, full consideration should be given to the requirements
for navigation and views solicited in advance from the administrative
departments for transportation. The realignment of navigable waterways should
conform to the safety requirements for flood control in rivers and lakes and
views solicited in advance from the water conservancy administrative
departments.

The realignment of river courses in rivers which are suitable for bamboo
and log rafting or in fishery water areas should take into account the needs
for bamboo and log water transportation and fishery development and views
should be sought in advance from the administrative departments for forestry
and fishery. The bamboo and log rafting in river courses should not affect the
safety of flood passage and flood control works.

Article 21 The control of rivers and lakes shall follow the principle of
unified control in line with water systems combined with control at different
levels in order to strength the protection and ensure the smooth passage.

Main courses of major rivers and lakes designated by the state, major
river courses and lakes involving two or more provinces, autonomous regions
or municipalities directly under the Central Government, boundary rivers and
lakes of provinces, autonomous regions or municipalities directly under the
Central Government as well as river courses and lakes which serve as national
boundaries (borderlines) shall, according to the designation of the water
conservancy administrative department under the State Council, be under the
control of river basin administrative agencies and water conservancy
administrative departments under the people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government in
the place where rivers and lakes are drained. Other river courses and lakes
shall, according to the designation of the water conservancy administrative
department under the State Council or its authorized agencies, be under the
control of water conservancy administrative departments under local people’s
governments at or above the county level.

The scope of control for any river course or lake with embankments shall
include the water area, sandbanks, beaches, the flood passage area, the
embankments and dyke protections between the embankments on both sides. The
scope of control for any river course or lake without embankments shall
include the water area, sandbanks, beaches and the flood passage area between
the all-time high flood levels or the designed flood levels.

The scope of river courses and lakes under direct control of river basin
administrative agencies shall be delimited by river basin administrative
agencies in conjunction with local people’s governments concerned at or above
the county level in accordance with the provisions of the preceding paragraph.
The scope of control for other river courses and lakes shall be delimited by
local people’s governments concerned at or above the county level in
accordance with the provisions of the preceding paragraph.

Article 22 The use of land and shore lines within the scope of control
for any river course or lake should conform to the requirements for flood
discharge and water flow.

Within the scope of control for any river course or lake it is prohibited
to construct buildings or structures impeding flood discharge, dump garbage
and waste residues or engage in activities affecting the stability of river
flows, harming the safety of banks and embankments or other activities
impeding flood discharge in river courses.

It is prohibited to plant trees or long-stalk crops impeding flood
discharge in river courses used for flood discharge.

Restrictions of speed should be imposed in river courses where navigation
of ships may endanger the safety of embankments. Marks for speed restrictions
shall be set up upon the consultation between administrative departments for
transportation and water conservancy.

Article 23 Enclosing a lake for cultivation is prohibited. Those
reclaimed lakes should be put in order according to the standards set by the
state for flood control and restored from farmland in a planned way.

Enclosing river courses for cultivation is prohibited. If enclosure is
really necessary, scientific authentication should be carried out and on
confirmation by the water conservancy administrative department that there is
no impediment of flood discharge and water flow, submitted to the people’s
government at or above the provincial level for approval.

Article 24 Local people’s governments should in a planned way organize
residents to move out of river courses for passage of floodwater.

Article 25 Administrative agencies for rivers and lakes shall organize
the planting and maintenance of protective trees along banks and embankments.
Protective trees along banks and embankments shall not be felled without
authorization. If anyone intends to fell them, he must obtain the consent from
administrative agencies for river courses and lakes, go through the
formalities for a felling licence and complete the task of regeneration and
planting of trees as required.

Article 26 For those bridges, approaches, wharves and other engineering
structures across a river which seriously intercept or block water, the water
conservancy administrative department concerned may, according to the flood
control standards, report to the people’s government at or above the county
level that will, within the scope of powers provided by the State Council,
order the construction unit to rebuild or dismantle them within a time limit.

Article 27 The construction of bridges, wharves, roads, ferries,
pipelines, cables and engineering structures for tapping or draining water
which need to cut across rivers, through rivers or embankments, or to stand
on rivers should conform to flood control standards, shore lines planning,
navigation requirements and other technical requirements, and shall not
endanger the safety of embankments, affect the stability of river conditions
or impede the smooth passage of floodwater. Before the feasibility study
report of the involved project is to be submitted for approval according to
the procedures set by the state for capital construction, the engineering
construction scheme included in the report should be subjected to the
examination and approval of the relevant water conservancy administrative
department in accordance with the requirements for flood control as
mentioned above.

If engineering structures mentioned in the preceding paragraph need to
occupy land within the scope of control for any river course or lake, or to
cut across the space over any river course or lake, or to go through
riverbeds, the construction unit should subject the position and border of
the engineering structures to the examination and approval of the relevant
water conservancy administrative department before completing the formalities
for starting the projects according to law. In the arrangement for the
construction project, the position and border should be followed as approved
by the water conservancy administrative department.

Article 28 The water conservancy administrative department shall have the
right to inspect engineering structures constructed according to the
provisions of this Law within the scope of control for river courses or lakes.
When the water conservancy administrative department exercises inspection, the
inspected should truthfully provide the information and materials concerned.

The acceptance of engineering structures mentioned in the preceding
paragraph upon completion should be taken part in by the water conservancy
administrative department.
Chapter IV Administration of Flood Control Areas and Flood Control Works

Article 29 A flood control area means an area where floodwater is
likely to inundate, which is classified as a flooded area, a flood storage
and detention area or a flood control protected area.

A flooded area means an area to which floodwater reaches without the
protection of works.

A flood storage and detention area means a depression or a lake from
outside embankments including flood-diversion mouths for temporarily storing
floodwater.

A flood control protected area means an area protected by flood control
works according to flood control standards.

The scope of a flooded area, a flood storage and detention area or a flood
control protected area shall be delimited in the flood control planning or
the flood prevention scheme, reported to the people’s government at or above
the provincial level according to the scope of powers provided for by the
State Council and if approved, announced to the public.

Article 30 People’s governments at all levels should, according to flood
control planning, exercise administration of the use of land within different
flood control areas.

Article 31 Local people’s governments at all levels should strengthen
leadership over the safety and construction work within flood control areas
and organize relevant departments and units to conduct flood control education
among units and residents within flood control areas, to popularize flood
control know-how and to enhance their awareness of flood control. They should,
according to flood control planning and flood prevention schemes, establish
and perfect the flood control system as well as systems for hydrology,
meteorology, communications, early warning and monitoring of flood and
waterlogging in order to improve the capability for flood control. They should
organize units and residents within flood control areas to actively take part
in flood control work and take measures for flood control and flood evasion
in the light of local conditions.

Article 32 People’s gov

RULES OF THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION FOR ENTERPRISES WITH FOREIGN INVESTMENT ON THE IMPLEMENTATION OF THE MEASURES ON THE ADMINISTRATION OF CODES FOR IMPORT AND EXPORT ENTERPRISES OF THE PEOPLE’S REPUBLIC OF CHINA

The Ministry of Foreign Trade and Economic Cooperation

Rules of the Ministry of Foreign Trade and Economic Cooperation for Enterprises with Foreign Investment on the Implementation of the
Measures on the Administration of Codes for Import and Export Enterprises of the People’s Republic of China

WaiJingMaoBanFaZi [1997] No.498

August 25, 1997

Article 1

These rules for implementation (hereinafter referred to as “the Rules”) are hereby formulated in compliance with Article 13 of “Measures
on the Administration of Codes for Import and Export Enterprises of the People’s Republic of China” (hereinafter referred to as “the
Measures on Administration”).

Article 2

“Import and export enterprises” in the Measures on Administration refers to various enterprises with legal person status and permitted
by the State to engage in foreign trade and economic cooperation. The Rules are only applicable to enterprises with foreign investment
among them (including the Chinese-foreign equity joint ventures, the Chinese-foreign contractual joint ventures, the foreign-capital
enterprises and stock companies with foreign investment).

Article 3

All the enterprises with foreign investment established by law shall, in accordance with relevant provisions of the Rules, obtain
the codes for im/ex enterprises of the People’s Republic of China (hereinafter referred to as “the codes for im/ex enterprises”).

Article 4

Departments with written Approval Certificate for Enterprises with Foreign Investment by MOFTEC and the Approval Certificates for
Enterprises with Investments of Taiwan, Hong Kong, Macao and overseas Chinese (hereinafter referred to totally as “the approval certificates”),
shall be the departments in charge of the codes for im/ex enterprises of local enterprises with foreign investment, the administrative
competence is not allowed to be transferred to any of the levels below. The administrative departments of the issuing of the approval
certificates must be capable of being net-linked with MOFTEC’s foreign investment statistics network and the issuing administration
network of the approval certificates, must be capable of inputting relevant information accurately, timely and completely as well
as having corresponding administrative measures. MOFTEC shall separately formulate verification rules for the qualification of the
administrative departments which issue the approval certificates.

Article 5

The sole codes for im/ex enterprises are applicable to the State’s macro-management over foreign trade and economic cooperation, foreign
trade operations of enterprises with foreign investment and electronic data interchange in international trade.

Article 6

The codes for im/ex enterprises have thirteen-digit numerals, the structure is as follows:

The first to the fourth digits are codes for the administrative regions in which the registrations of im/ex enterprises are made,
using “the Codes for the Administrative Regions of the People’s Republic of China” (GB/T2260-1995). Among them, the first and second
digits are codes for the provinces, autonomous regions or municipalitie directly under the Central Government in which the registrations
of the im/ex enterprises are made; the third and fourth digits are codes for cities (districts) under provinces (autonomous regions),
only used by special economic zones and cities under direct central planning (including 8 provincial capitals which were originally
municipalities separately listed on the State plan), other cities (districts) under provinces (autonomous regions) totally write
“00”.

The fifth to thirteenth digits are “Codes for the State Organizations and Units” of the im/ex enterprises checked and issued by the
State Bureau of Technical Supervision or its authorized organizations, adopting “Compiling Norms of the Codes for the State Organizations
and Units” (GB/T11714 – 1995).

Article 7

The codes for im/ex enterprises of foreign investment are issued by the examination and approval authorities (i.e. the administrative
departments of foreign trade and economic cooperation) which approve the establishments of enterprises with foreign investment. The
codes for im/ex enterprises shall be added to the contents of the approval certificates which are printed by MOFTEC. The administrative
departments of foreign trade and economic cooperation shall issue the codes for im/ex enterprises together with the approval certificates,
no other ways of issuing the codes for im/ex enterprises to enterprises with foreign investment shall be taken.

Article 8

New edition of the approval certificate is put into use on January 1, 1998. From January 1, 1998 to April 30, 1998, all the enterprises
with foreign investment established by law shall change their approval certificates with the new editions. The on-going approval
certificates shall be invalid on and after May 1, 1998.

Article 9

From January 1, 1998 to April 30, 1998, the enterprises with foreign investment established by law before January 1, 1997 and regarded
as qualified in the joint annual inspection performed by seven ministries and commissions under the State Council shall, providing
with the “Codes for the State Organizations and Units” issued by the State Bureau of Technical Supervision or its authorized organizations,
apply to the issuing organizations of the approval certificates for the new editions and get the codes for im/ex enterprises simultaneously.

Article 10

All the enterprises with foreign investment established by law during the year of 1997 shall, providing with the “Codes for the State
Organizations and Units” issued by the State Bureau of Technical Supervision or its authorized organizations, apply to the issuing
organizations of the approval certificates for the new editions and get the codes for im/ex enterprises simultaneously.

Article 11

Starting from January 1, 1998, all the enterprises with foreign investment established by law shall, providing with the approval documents
on the establishment given by the examination and approval authorities, apply to the State Bureau of Technical Supervision or its
authorized organizations for the “Codes for the State Organizations and Units”. Then these enterprises shall, providing with the
“Codes for the State Organizations and Units”, apply to the issuing organizations for the approval certificates, and mean-while,
get the codes for im/e enterprises.

Article 12

The codes for im/ex enterprises are the only codes for enterprises with foreign investment. The administrative departments of enterprises
with foreign investment at all levels shall use the codes for im/ex enterprises while going through business formalities concerning
im/ex quotas, im/ex licences, export bidding and capital increasing, business scope enlarging, share transfering, etc.

Article 13

Enterprises with foreign investment of which the places of registration are changed (i.e. “the codes for the administrative regions
of the People’s Republic of China” mentioned in Article 6 of the Rules are changed), while applying for the changing of the approval
certificates, must apply for new codes for im/ex enterprises.

Article 14

According to Article 9 of the Measures on Administration, MOFTEC shall set up the annual examination system of the codes for im/ex
enterprises. The annual examination of the codes for im/ex enterprises of enterprises with foreign investment shall be conducted
in combination with the joint annual inspection performed by seven ministries and commissions under the State Council including MOFTEC.
The enterprises with foreign investment shall, in accordance with the requirements of “Notice Concerning the Implementation of Joint
Annual Inspection to Enterprises with Foreign Investment” promulgated jointly by the above seven ministries and commissions, apply
for the annual examination on time. For those exceeding the time of application or failing to pass the joint examination, their codes
for im/ex enterprises shall be suspended from use or cancelled by the administrative departments.

Article 15

For enterprises with foreign investment which terminate operation as a result of cancellation of approval certificates, revocation
of business licences, suspension of operation, termination of operation due to time limit, declaration of bankruptcy or other reasons
according to laws, their codes for im/ex enterprises shall be suspended or cancelled as well.

Article 16

Enterprises with investments from Taiwan, Hong Kong, Macao and overseas Chinese shall act basing on these Rules.

Article 17

The Rules shall be interpreted by MOFTEC.

Article 18

The Rules shall enter into force as of the date of promulgation.

The Ministry of Foreign Trade and Economic Cooperation
1997-08-25

FLOOD CONTROL OF THE PEOPLE’S REPUBLIC OF CHINA

Flood Control of The People’s Republic of China

Foreword

The Flood Control Law of the People’s Republic of China was adopted at the 27th Meeting of the Standing Committee of the Eighth National
People’s Congress on August 29, 1997, and promulgated by Order No. 88 of the President of the People’s Republic of China on August
29, 1997.

Chapter I General Provisions

Article 1 This Law is enacted with a view to preventing and controlling flood, taking precautions against and alleviating calamities by flood
and waterlogging, maintaining the safety of people’s lives and property, and safeguarding the smooth progress of the socialist modernization
construction.

Article 2 The work for flood control shall observe the principles of unified planning, overall consideration, focusing on prevention, integrated
measures for treatment and subordinating local interests to general interests.

Article 3 The construction if flood control works should be incorporated into the national economic and social development plan.

Flood control funds shall be raised according to the principle of combining government input with rational payment by beneficiaries.

Article 4 The exploration and protection of water resources should be subject to the overall arrangements for flood control and observe the
principle of combining the promotion of advantages with the elimination of disadvantages.

The control of rivers and lakes and the construction of flood control works should conform to the comprehensive plans for river basins
and be integrated with the comprehensive exploration of water resources in river basins.

The comprehensive plans referred to in this Law mean those for the exploration of water resources and the prevention and control of
water disasters.

Article 5 The work for flood control shall be carried out in the light of river basins or administrative areas and according to a system by
which unified planning shall be implemented at different levels and consideration given to the administration of river basins as
well as the administration of administrative areas.

Article 6 All units and individuals shall have the obligations to protect flood control works and to take part in flood control and flood fighting
according to law.

Article 7 People’s governments at all levels should intensify the unified leadership over the work for flood control, organize departments
and units concerned, mobilize social forces, depend on scientific and technological progress, harness rivers and lakes in a planned
way and take measures to enforce the construction of flood control works in order to consolidate and enhance flood control capacity.

People’s governments at all levels should organize departments and units concerned and mobilize social forces to ensure flood control
and flood fighting and reconstruction and relief work after flood or waterlogging calamities.

People’s governments at all levels should lend support to flood storage and detention areas and provide compensations and aids according
to the state provisions after flood storing and detaining.

Article 8 The water conservancy administrative department under the State Council shall, under the leadership of the State Council, be responsible
for routine duties of organization, coordination, supervision and guidance for flood control nationwide. River basins administrative
agencies set up by the water conservancy administrative department under the State Council for major. rivers and lakes as designated
by the state shall perform duties of coordination, supervision and administration of flood control within their jurisdiction as provided
for by laws and administrative regulations and authorized by the water conservancy administrative department under the State Council.

The construction administrative department and other relevant departments under the State Council shall, under the leadership of the
State Council, be responsible for relevant work of flood control within their scope of powers and duties. Water conservancy administrative
department s under local people’s governments at or above the county level shall, under the leadership of the people’s governments
at the same level, be responsible for routine duties of organization, coordination, supervision and guidance for flood control within
their respective administrative areas. Construct ion administrative departments and other relevant administrative departments under
local people’s governments at or above the county level shall, under the leadership of the people’s governments at the same level,
be responsible for relevant work of flood control within their scope of powers and duties.

Chapter II Flood Control Planning

Article 9 Flood control planning refers to the overall arrangement for the prevention and control of flood and waterlogging calamities in a
certain river basin, river course or region, including river bas in flood control planning for major rivers and lakes designated
by the state, flood control planning of other rivers, river courses and lakes as well as regional flood control planning.

Flood control planning should be subject to the comprehensive planning of a certain river basin or region. Regional flood control
planning should be subject to the flood control planning for a certain river basin.

Flood control planning constitutes the bas is for the control of rivers and lakes and the construction of flood control works.

Article 10 Flood control planning for major rivers and lakes designated by the state shall, in accordance with comprehensive river basin planning
for these rivers and lakes, be formulated by the water conservancy administrative department under the State Council in conjunction
with other relevant departments and the people’s government(s) of the province(s), autonomous region(s) and municipality(s) concerned
directly under the Central Government, and submitted to the State Council for approval.

Flood control planning for other rivers, river courses and lakes or regional flood control planning shall, separately in accordance
with comprehensive river bas in planning and comprehensive regional planning, be formulated by water conservancy administrative department
s under local people’s governments at or above the county level in conjunction with other relevant departments or regions, submitted
to the people’s governments at the same level for approval and then submitted to the water conservancy administrative departments
under the people’s governments at the next higher level for the record. Flood control planning for rivers, river courses or lakes
involving two or more provinces , autonomous regions and municipalities directly under the Central Government shall be drafted by
the administrative agency for the relevant river basin in conjunction with the water conservancy administrative departments and other
relevant departments under the people’s government(s) of the province(s), autonomous region(s) and municipality(s) directly under
the Central Government wherein the river, river course or lake drains water and, after the people’s government(s) of the province(s),
autonomous region(s) and municipality(s) involved directly under the Central Government examines it and comes up with comments, be
submitted to the water conservancy administrative department under the State Council for approval.

Urban flood control planning shall, in accordance with the river basin flood control planning and the regional flood control planning
of the people’s government at the next higher level, be formulated by the water conservancy administrative department, the construct
ion administrative department and other relevant administrative departments under the people’s government of a city which shall organize
those administrative departments in the formulation of the planning, and be included into the overall urban planning subject to approval
through the examination and approval procedures stipulated by the State Council. Amendment to flood control planning should be subject
to the approval from the original approval organ.

Article 11 The formulation of flood control planning should, following the principle of ensuring key projects and considering others at the
same time, and integrating flood control with drought fighting, engineering measures with non–engineering measures, take full account
of the flood–drought law, the relation of the upper and lower reaches and of both banks of a river, and the requirements for flood
control in the national economy, and be coordinated with the national land planning and the overall land use planning as well.

Flood control planning should include the protected objects, aims and tasks of flood control, flood control measures and act ion plans,
delimit the flooded area, the flood storage and detention area and the flood control protected area, and determine the principle
for use of the flood storage and detention area.

Article 12 Local people’s governments at or above the county level in coastal areas which are threatened by storm tides should include the prevention
of storm tides into the flood control planning within their respective areas , strengthen the construct ion of systems of anti–storm
tides works including seawalls (sea dykes), tidewater gates and coastal shelter–forest, and supervise the design and construct ion
of buildings and constructions that should meet the requirements for the prevention of storm tides.

Article 13 Local people’s governments at or above the county level in areas where mountain torrents may trigger landslides, collapses and mud–rock
flows and in other area where mountain torrents frequently occur should organize the departments in charge of geological and mineral
administration, water conservancy administrative department s and other relevant department s to conduct a general investigation
on hidden dangers of landslides, collapses and mud–rock flows, to delimit zones for focal control, and to take prevention and control
measures.

Distribution of cities, towns and other inhabited areas as well as factories , mines and trunk lines of railways and highways should
avert the threat of mountain torrents; for those having been built in places threatened by mountain torrents, precautions should
be taken.

Article 14 Local people’s governments concerned in areas liable to waterlogging such as plains, depressions, river networks and embankment areas,
valleys and basins should formulate planning for elimination and control of waterlogging, organize relevant departments and units
to take corresponding control measures, ,improve drainage systems, develop types and varieties of waterlogging-enduring crops and
take integrated measures for controlling flood and water logging, drought, saline and alkaline land.

People’s governments of cities and towns should strengthen the administration and construction of waterlogging drainage piping systems
and pumping stations in urban areas.

Article 15 The water conservancy administrative department under the State Council should, in conjunction with the relevant departments and
the people’s governments concerned of provinces, autonomous regions and municipalities directly under the Central Government, formulate
the planning for controlling estuaries in the Yangtze River, Yellow River, Pearl River, Liao River, Huai River and Hai River.

Reclaiming land from seawaters in estuaries mentioned in the preceding paragraph should conform to the planning for controlling estuaries.

Article 16 Land to be used for realignment of river courses as planned in flood control planning and land to be used for dykes in planned construction
projects may be delimited as planned reserve zones upon verification by the land administrative department and the water conservancy
administrative department in conjunction with the involved areas, and submitted for approval of the people’s government at or above
the county level within the scope of powers authorized by the State Council. If land within the planned reserve zones involves that
to be used in other projects, the land administrative department and the water conservancy administrative department should consul
t with departments concerned for verification of land.

The planned reserve zones should be announced upon delimitation according to the provisions of the preceding paragraph.

No industrial or mining facilities not related to flood control may be constructed within the planned reserve zones. If special circumstances
exist under which it is really necessary for state industrial and mining projects to occupy land within the planned reserve zones
mentioned in the preceding paragraph, approval should be obtained according to the procedures set by the state for capital construct
ion and consultations should be made with the relevant water conservancy administrative department.

Land to be used for expanding or exploring man–made floodwater drainage channels as determined in flood control planning may be delimited
as planned reserve zones to which the provisions in the preceding paragraph shall apply upon verification by the land administrative
department and the water conservancy administrative department of the people’s government at or above the provincial level in conjunction
with other relevant departments and regions and submitted for approval of the people’s government at or above the provincial level
within the scope of powers authorized by the State Council.

Article 17 Construction of flood control works or other hydraulic works and hydropower s tat ions in rivers and lakes should conform to the
requirements of flood control planning. Reservoirs should keep adequate storage capacity for flood control according to the requirements
of flood control planning.

When the feasibility study report for flood control works or other hydraulic works and hydropower stat ions stipulated in the preceding
paragraph is submitted for approval pursuant to the procedures set by the state for capital construction, a consent document for
planning issued by the relevant water conservancy administrative department which conforms to the requirements of flood control planning
should be enclosed as an appendix.

Chapter III Control and Prevention

Article l8 For the prevention and control of flood in rivers, attention should be paid to flood storage as well as to flood discharge.
The smooth drainage of floodwater should be ensured by giving full play to flood drainage capacity of river courses and flood redistribution
and storage functions of reservoirs, depressions and lakes, intensifying the protect ion of river courses and taking measures to
remove and dredge silt at regular intervals in line with local conditions.

For the prevent ion and control of flood in rivers, measures should be taken to protect and expand the coverage of forest, grass and
other vegetation in river basins, conserve water resources and intensify the comprehensive control of water and soil conservation
in river basins.

Article 19 In the realigning of river courses and building up construction projects for leading the river direction or protecting embankments,
full consideration should be given to the relations between the lower and upper reaches and between both sides of a river and the
planned realigning and leading line be followed.

The direction of a river shall not be changed at will.

Planned realigning and leading lines for major rivers designated by the state shall be worked out by river basin administrative agencies
and submitted to the water conservancy administrative department under the State Council for approval.

Planned realigning and leading lines for other rivers or river courses shall be worked out by water conservancy administrative departments
under local people’s governments at or above the county level and submitted to the people’s governments at the same level for approval.
Planned realigning and leading lines of rivers or river courses involving two or more provinces, autonomous, regions and municipalities
directly under the Central Government and of boundary river courses of provinces, autonomous regions and municipalities directly
under the Central Government shall, under the leadership of river basin administrative agencies concerned, be worked out by water
conservancy administrative departments under the people’s governments of provinces, autonomous regions and municipalities directly
under the Central Government of involved rivers or river courses and, after the people’s governments concerned examine the proposed
lines and come up with comments, submitted to the water conservancy administrative department under the State Council for approval.

The realignment of navigable waterways should conform to the safety requirements for flood control in rivers and lakes and views solicited
in advance from the water conservancy administrative departments.

The realignment of river courses in rivers which are suitable for bamboo and log rafting or in fishery water areas should take into
account the needs for bamboo and log water transportation and fishery development and views should be sought in advance from the
administrative departments for forestry and fishery. The bamboo and log rafting in river courses should not affect the safety of
flood passage and flood control works.

Article 21 The control of rivers and lakes shall follow the principle of unified control in line with water systems combined with control at
different levels in order to strength the protect ion and ensure the smooth passage.

Main courses of major rivers and lakes designated by the state, major river courses and lakes involving two or more provinces, autonomous
regions or municipalities directly under the Central Government, boundary rivers and lakes of provinces, ,autonomous regions or municipalities
directly under the Central Government as well as river courses and lakes which serve as national boundaries (borderlines ) shall,
according to the designation of the water conservancy administrative department under the State Council, be under the control of
river bas in administrative agencies and water conservancy administrative departments under the people’s government s of provinces,
autonomous regions and municipalities directly under the Central Government in the place where rivers and lakes are drained. Other
river courses and lakes shall, according to the designation of the water conservancy administrative department under the State Council
or its authorized agencies , be under the control of water conservancy administrative departments under local people’s governments
at or above the county level.

The scope of control for any river course or lake with embankments shall include the water area, sandbanks, beaches, the flood passage
area, the embankments and dyke protect ions between the embankments on both s ides. The scope of control for any river course or
lake without embankments shall include the water area, sandbanks, beaches and the flood passage area between the all-time high flood
levels or the designed flood levels.

The scope of river courses and lakes under direct control of river basin administrative agencies shall be delimited by river bas in
administrative agencies in conjunction with local people’s governments concerned at or above the county level in accordance with
the provisions of the preceding paragraph. The scope of control for other river courses and lakes shall be delimited by local people’s
governments concerned at or above the county level in accordance with the provisions of the preceding paragraph.

Article 22 The use of land and shore lines within the scope of control for any river course or lake should conform to the requirements for flood
discharge and water flow.

Within the scope of control for any river course or lake it is prohibited to construct buildings or structures impeding flood discharge,
dump garbage and waste residues or engage in activities affecting the stability of river f lows, harming the safety of banks and
embankments or other activities impeding flood discharge in river courses.

It is prohibited to plant trees or long-stalk crops impeding flood discharge in river courses used for flood discharge.

Restrict ions of speed should be imposed in river courses where navigation of ships may endanger the safety of embankments. Marks
for speed restrictions shall be set up upon the consultation between administrative departments for transportation and water conservancy.

Article 23 Enclosing a lake for cultivation is prohibited. Those reclaimed lakes should be put in order according to the standards set by the
state for flood control and restored from farmland in a planned way.

Enclosing river courses for cultivation is prohibited. If enclosure is really necessary, scientific authentication should be carried
out and on confirmation by the water conservancy administrative department that there is no impediment of flood discharge and water
flow, submitted to the people’s government at or above the provincial level for approval.

Article 24 Local people’s governments should in a planned way organize residents to move out of river courses for passage of floodwater.

Article 25 Administrative agencies for rivers and lakes shall organize the planting and maintenance of protective trees along banks and embankments.
Protective trees along banks and embankments shall not be felled without authorization. If anyone intends to fell them, he must obtain
the consent from administrative agencies for river courses and lakes, go through the formalities for a felling licence and complete
the task of regeneration and planting of trees a s required.

Article 26 For those bridges, approaches, wharves and other engineering structures across a river which seriously intercept or block water,
the water conservancy administrative department concerned may, according to the flood control standards, report to the people’s government
at or above the county level that will, within the scope of powers provided by the State Council, order the construction unit to
rebuild or dismantle them within a time limit.

Article 27 The construction of bridges, wharves, roads, ferries, pipelines, cables and engineering structures for tapping or draining water
which need to cut across rivers, through rivers or embankments, or to stand on rivers should conform to flood control standards,
shore lines planning, navigation requirements and other technical requirements, and shall not endanger the safety of embankments,
affect the stability of river conditions or impede the smooth passage of floodwater. Before the feasibility study report of the involved
project is to be submitted for approval according to the procedures set by the state for capital construction, the engineering construction
scheme included in the report should be subjected to the examination and approval of the relevant water conservancy administrative
department in accordance with the requirements for flood control as mentioned above.

If engineering structures mentioned in the preceding paragraph need to occupy land within the scope of control for any river course
or lake, or to cut across the space over any river course or lake, or to go through riverbeds, the construction unit should subject
the pos it ion and border of the engineering structures to the examination and approval of the relevant water conservancy administrative
department before completing the formalities for starting the projects according to law. In the arrangement for the construct ion
project, the position and border should be followed as approved by the water conservancy administrative department.

Article 28 The water conservancy administrative department shall have the right to inspect engineering structures constructed according to the
provisions of this Law within the scope of control for river courses or lakes. When the water conservancy administrative department
exercises inspect ion, the inspected should truthfully provide the information and materials concerned.

The acceptance of engineering structures mentioned in the preceding paragraph upon completion should be taken part in by the water
conservancy administrative department.

Chapter IV Administration of Flood Control Areas and Flood Control Works

Article 29 A flood control area means an area where floodwater is likely to inundate, which is classified as a flooded area, a flood storage
and detention area or a flood control protected area.

A flooded area means an area to which floodwater reaches without the protect ion of works.

A flood storage and detention area means a depression or a lake from outside embankments including flood–diversion mouths for temporarily
storing floodwater

A flood control protected area means an area protected by flood control works according to flood control standards.

The scope of a flooded area, a flood storage and detention area or a flood control protected area shall be delimited in the flood
control planning or the flood prevent ion scheme, reported to the people’s government at or above the provincial level according
to the scope of powers provided for by the State Council and if approved, announced to the public.

Article 30 People’s governments at all levels should, according to flood control planning, exercise administration of the use of land within
different flood control areas.

They should, according to flood control planning and flood prevent ion schemes, establish and perfect the flood control system as
well as systems for hydrology, meteorology, communications, early warning and monitoring of flood and waterlogging in order to improve
the capability for flood control. They should organize units and residents within flood control areas to actively take part in flood
control work and take measures for flood control and flood evasion in the light of local conditions.

Article 32 People’s government s of provinces, autonomous regions and municipalities directly under the Central Government in places where flooded
areas or flood storage and detention areas are located should, as required by flood control planning, organize relevant departments
and units to formulate safety and construction work plans for flooded areas and flood storage and detention areas, to bring under
control population growth within flood storage and detention areas, to move residents in a planned way out of flood storage and detent
ion areas which are frequently in use, and to take other necessary safety and protective measures.

Regions and units directly benefiting from flood storage and detention areas should bear obligations of compensation and aid to flood
storage and detent ion areas as required by the state. The State Council and relevant people’s government s of provinces, autonomous
regions and municipalities directly under the Central Government should establish a system to support and give compensations and
aids to flood storage and detent ion areas.

The State Council and relevant people’s government s of provinces, autonomous regions and municipalities directly under the Central
Government may formulate measures for control of safety and construction within flooded areas and flood storage and detention areas
and measures for giving support, compensations and aids to flood storage and detention areas.

Article 33 Where a construct ion project not intended for flood control is to be carried out within a flooded area or a flood storage and detention
area, the possible impact of floodwater on the construct ion project and the possible impact of the construction project on flood
control should be assessed, a flood impact assessment report be provided and precautions be put forward.

When submitted for approval according to the procedures set by the state for capital construction, the feasibility study report of
the construction project should include the flood impact assessment report having been examined and approved by the relevant water
conservancy administrative department.

Flood impact assessment reports for oilfields, railways, highways, mines, power plants, telecommunications installations and pipelines
to be built within flood storage and detent ion areas should include flood control and flood evasion plans arranged by construction
units themselves. When the construction project is to be put into operation or use, their flood control works should pass the acceptance
by the water conservancy administrative department. Houses built within flood storage and detention areas shall have flat roofs.

Article 34 Flood control work should focus on large and medium–sized cities, trunk lines of major railways and highways as well as large–sized
key enterprises and their safety be guaranteed.

Cities, economic development zones, industrial and mining areas and important state agricultural production bases under the threat
of floodwater should be protected as key areas and necessary flood control works constructed. 1n urban construction, no one may,
without authorization, stuff or block up originally existing river courses, ditches, branching streams and waterlogging lakes, pools
or depressions, or demolish originally existing embankments used for flood control. If it is really necessary to stuff or block up
or demolish them, consent should be obtained from the water conservancy administrative department and the case be reported to the
people’s government of the city for approval.

Article 35 The scope of administration and protection of state–owned flood control works should be determined by people’s governments at or
above the county level according to the state provisions before the completion and acceptance of the projects according to the approved
design.

The scope of protect ion of collective–owned flood control works should be determined according to the provisions of people’s governments
of provinces, autonomous regions and municipalities directly under the Central Government Within the scope of protection of flood
control works, exploding, drilling wells, quarrying stones, collecting earth or other operations endangering the safety of flood
control works are prohibited.

Article 36 People’s governments at all levels should organize the relevant departments to intensify the regular inspection, supervision and
administration over dams of reservoirs. For those dams in danger which fail to conform to the designed flood standards and anti–earthquake
defence requirements, or have serious quality defects, the department in charge

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME POLICY-CONCERNED ISSUES CONCERNING TAX REFUND FOR EXPORTED GOODS

The State Administration of Taxation

Circular of the State Administration of Taxation on some Policy-concerned Issues Concerning Tax Refund for Exported Goods

GuoShuiHan [1998] No.720

December 3, 1998

State taxation bureaus of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan:

Recently, some issues occurring during the execution of the policy of export taxation refund has be reported by relevant regions,
after investigation, the following should be clarified:

The formula (exempted or offset tax = offshore price of export goods * quote price of foreign exchange to RMB * refund rate – refund
fulfilled) listed in Article 1 of the Circular on Budget Management Concerning Tax Exemption, Offsetting and Refund(CaiYuZi [1998]
No.242) promulgated by the Ministry of Finance, the State Administration of Taxation and the People’s Bank of China and in Article
4 of the Circular of the Ministry of Finance and the State Taxation Administration on Tax Exemption, Offsetting and Refund for Export
Goods of Productive Enterprises Enpost_titled to Foreign Business(CaiShuiZi [1997] No.50), only applies to export goods manufactured with
domestic materials or parts. As to the export goods of imported materials or parts, according to Supplementary Circular of the Ministry
of Finance and the State Administration of Taxation on Some Issues Concerning the Taxation of Export Goods (CaiShuiZi [1997] No.14)
and the document CaiShuiZi [1997] No.50, the price of imported materials or parts approved by the Customs should be detracted from
the offshore price while computing tax exemption or offsetting. The formula should be: tax exemption or offsetting = (offshore price
of export goods * quote price of foreign exchange to RMB – taxable price of imported materials or parts approved by the Customs)
* refund rate – refund fulfilled.

II.

The tax rate and refund rate mentioned in Paragraph 2 of Article 2 of the document coded CaiShuiZi [1997] No. 14 of the Ministry
of Finance and the State Administration of Taxation refer to the tax rate and refund rate for export goods.

III.

From now on, the tax rate for export coal shall be 40% of 13%, and specialized certificate of payment should be offered; accordingly,
the Circular of the Ministry of Finance and the State Administration of Taxation on the Restoration of Specialized Certificate of
Value-added Tax Payment for Export Goods(CaiShuiZi [1996] No.8), where it is provided that 3% specialized invoice of tax be offered,
shall be suspended from execution. Specialized certificate of added-value tax may be offered for mechanic and electric products sold
to refund-allowable enterprises winning a bidding by manufacturers, whether the bid winner is enpost_titled to export business or not.

The State Administration of Taxation
1998-12-03

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.

1...190191192...212 Page 191 of 212

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FLOOD CONTROL OF THE PEOPLE’S REPUBLIC OF CHINA

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME POLICY-CONCERNED ISSUES CONCERNING TAX REFUND FOR EXPORTED GOODS

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

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7