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REGULATIONS FOR SUPERVISING INTERNATIONAL-SHIPPING-AGENCY SERVICES

Regulations for Supervising International-Shipping-Agency Services

     (Effective Date:1990.03.02–Ineffective Date:)

   Article 1 The present Regulations are to strengthen supervision of international-shipping-agency services and meet the Country’s foreign economic
relations development needs and international-shipping-industry requirements.

   Article 2 The present regulations are applicable to agency services vessels for international navigation.

   Article 3 The Ministry of Communications of the People’s Republic of China (hereinafter referred to as the Ministry of Communications) is the
State organization for supervising shipping-agency services.

   Article 4 Only shipping agencies established with the approval of the Ministry of Communications are permitted to handle shipping-agency services.
The shipping agencies must be legal persons of State enterprises of the People’s Republic of China. The number of shipping agencies
permitted in each harbor shall be determined by the Ministry of Communications in the light of actual needs arising from the harbor’s
business.

   Article 5 A shipping agency shall meet the following requirements before it can be established:

(1) It operates on its own and is able to bear civil responsibility independently;

(2) Its legal representative has professional knowledge and capable of handling experience in international-maritime-shipping-agency
services;

(3) It has essential full-time personnel in business, Customs declaration, finance, foreign languages and other disciplines;

(4) It is familiar with China’s laws, regulations and requirements concerning vessels for international navigation and is able to
urge and help vessels using its agency service to observe and implement them conscientiously;

(5) It has articles of association, permanent organization, work place and necessary transport and telecommunication facilities;

(6) It has funds for its business operations.

   Article 6 An application for permission to establish a shipping agency shall be submitted in written form to the organization in charge of
communications in the locality where the agency is to be situated.

The application shall include the following items:

(1) The agency’s name (including its English translation), detailed address (in both Chinese and English), telephone, cable and telex
numbers, and post-code;

(2) Its projected business items;

(3) A certificate of its registered capital and the capital it actually has or guarantee fund;

(4) The name, age, profession, detailed experience and address of its legal representative;

(5) The agency’s articles of association, organizational structure and disposition of professional personnel.

   Article 7 The application for permission to establish a shipping agency- after being checked by the departments in charge of communications
in the locality where the agency is to be situated and the province (municipality, autonomous region) concerned-shall be submitted
to the Ministry of Communications for examination and approval. The Ministry of Communications will decide to approve or disapprove
the application after examining it in the light of the actual need and the requirements of the present Regulations.

If the application is approved, the applicant shall take alone the Ministry of Communications’ document of approval and register with
the Administration for Industry and Commerce in the locality where the agency is situated and obtain its license before it can start
operations. After starting operations, it shall submit, within 15 days, photocopies of its license to the Ministry of Communications
and the departments in charge of communications in the locality where the agency is situated and in the province concerned for the
record.

   Article 8 The Ministry of Communications may determine the scope of business of the shipping agency in the light of its scale, capital, capability,
conditions and relevant regulations.

Within the scope of business approved by the Ministry of Communications, the shipping agency may handle part or all of the following
agency operations at the request of a shipping company;

(1) Making contacts and arranging for the entry into or exit from a harbor, locking and loading or unloading of ships;

(2) Making customs declarations for ships, cargoes and containers;

(3) Handling consignment, transshipment and combined-through- transportation of cargoes and containers;

(4) Signing bills of lading, transport contracts and agreement for rapid ship dispatch or holdup of ships;

(5) Handling international-passenger shipping;

(6) Organizing freight and ordering shipping space for cargo owners;

(7) Arranging for rescue and salvage at sea and undertaking maritime and admiralty affairs;

(8) Acting as an agent in paying and collecting money and settling accounts;

(9) Handling other items of shipping agency and service.

   Article 9 When a shipping agency, which has started operations, wants to expand or change its business scope, it shall go through the formalities
of examination and approval provided for in Articles 6, 7 and 8.

   Article 10 A shipping agency shall carry out its operations on the following principles;

(1) Observing the country’s principles, policies, laws and administrative codes and regulations, safeguarding national rights and
interests and guarding State secrets;

(2) Fulfilling its responsibilities in line with the entrustment, safeguarding the mandator’s legitimate rights and interests, and
performing the committed obligations;

(3) Directing the shipping company, vessels and crew members it represents to observe relevant Chinese laws and regulations and assisting
the authorities in charge in handling matters such as violation of laws and regulations by the shipping company, vessels and crew
members;

(4) Refraining from cheating in any form and illegal competition by use of improper methods or at the cost of national interests.

   Article 11 A shipping company enjoys complete independence in selecting its shipping agency and no institution or individual shall interfere
in any way. No parties concerned must include provisions to restrict the shipping company’s freedom of choosing its shipping agency
in the relevant contract.

   Article 12 A shipping agency must abide by the standard rates or fees or charges set by the Ministry of Communication for all to follow and
must not pay sales commission openly or in disguised form.

   Article 13 Shipping agencies designated by the Ministry of Communications shall provide agency service for the following vessels;

(1) Foreign military vessels;

(2) Ships for training and scientific investigation;

(3) Passenger ships (including tour ships) and private yachts;

(4) Engineering ships and their support vessels;

(5) Other types of vessels for which shipping agencies shall be designated.

   Article 14 All shipping agencies shall report to the Ministry of Communications their business operations in the first six months of a year
and the entire year by the end of July and the end of the following February respectively. They shall send copies of the report to
the organizations in charge of communications in the localities where they are situated and to the same organizations in the relevant
provinces, municipalities directly under the central authorities and autonomous regions. The content of the reports shall include:

(1) Profits or losses in revenue and expenditure;

(2) A list of the shipping companies and vessels each agency represents, arranged in the order of their nationalities, and the total
number of vessels represented (each time a ship is represented shall be counted as one vessel);

(3) Statistics of the flow of import and export commodities carried by the vessels represented and separate lists of the amounts of
cargo transported by ships sent by the Chinese side and by ship sent by the other side;

(4) Other matters to be reported at the request of the Ministry of Communications.

   Article 15 The Ministry of Communications and local organizations in charge of communications authorized by it are enpost_titled to check on the
business operations of the shipping agencis. The agencies under investigation must truthfully report their state of affairs and provide
relevant information.

   Article 16 When shipping agencies violate the present Regulations, the Ministry of Communications and local organizations in charge of communications
authorized by it may, on the merit of the cases, mete out to them the following penalties:

(1) Warning;

(2) Circulating a notice of criticism;

(3) Fine;

(4) Ordering the offender to suspend operations and straighten itself out;

(5) Cancelling its approved qualifications for business operations.

   Article 17 Companies approved to handle shipping agency business before the present Regulations are promulgated shall, within three months after
they come into force, go through the formalities of applying to the Ministry of Communications for approval retrospectively in line
with the requirements of Article 5 and 6 of the present Regulations. Those shipping agencies which fail to go through the formalities
within the time limits shall be disqualified.

   Article 18 The Ministry of Communications is responsible for interpreting the present Regulations.

   Article 19 The present Regulations shall come into force as of April 1, 1990.

    





CIRCULAR OF THE STATE COUNCIL CONCERNING THE QUARANTINE CONTROL SYSTEM FOR ANIMAL PRODUCTS LEAVING CHINA FOR TRADE PURPOSE

Category  AGRICULTURE, FORESTRY AND METEOROLOGY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1991-11-15 Effective Date  1991-11-15  


Circular of the State Council Concerning the Quarantine Control System for Animal Products Leaving China for Trade Purpose

(November 15, 1991)

    The “Law of the People’s Republic of China on the Entry and Exit Animal
and Plant Quarantine” has already adopted at the 22nd Meeting of the Standing
Committee of the Seventh National People’s Congress, and shall enter into
force as of April 1, 1992. Article 3 of the Law stipulates: “The organ in
charge of the quarantine of animal products leaving China for trade purpose
shall be designated by the State Council as it deems appropriate.” The State
Council maintains that, from a long-term point of view, it is more appropriate
for the agricultural department to exercise a unified administration over the
quarantine of animal products leaving China for trade purpose, but this cannot
do without a process. The State Council has, therefore, decided that the
quarantine work of animal products leaving China for trade purpose shall
continue to be undertaken by the State’s department of commodity inspection.





MEASURES OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPL’S REPUBLIC OF CHINA ON ADMINISTRATION OF THE BOND OF MATERIALS IMPORTED BY MATERIALS CORPORATIONS FOR ENTERPRISES WITH FOREIGN INVESTMENT

The General Administration of Customs

Measures of the General Administration of Customs of the Peopl’s Republic of China on Administration of the Bond of Materials Imported
by Materials Corporations for Enterprises with Foreign Investment

the General Administration of Customs

March 5, 1991

Article 1

In accordance with “The Customs Law of the People’s Republic of China” and in order to improve materials supply to the enterprises
with foreign investment and to strengthen Customs control, the measures hereof are formulated.

Article 2

The Measures are applicable to the materials corporations supply to enterprises with foreign investment (hereinafter referred to as
materials corporations) that are given the right to manage the bonded cargos listed in Article 5 of the regulations upon approval
by the government department in-charge.

Article 3

The materials corporations shall go through procedures of registration for the record after presenting to the local Customs Office
the documents of approval issued by the government departments in-charge and business licences issued by the industrial and commercial
administrations.

Article 4

The materials corporations shall present to the local Customs Office and a duplicate copy to the General Administration of Customs
a list of the annual plan for imports approved by the government departments in-charge as well the import quotas and the major commodities
for the materials corporations.

Article 5

The Customs shall exercise supervision and control over the bonded materials including raw materials, knock-down parts, parts and
components, elements and devices, fittings, auxiliary materials and fuel which are in short supply in the home market and have to
be imported to meet the needs of enterprises with foreign investment.

When the above-said bonded cargos are imported, they shall be declared at the Customs office upon presenting import contracts, Customs
Declaration of Import Goods and other related declarations and certificates for deferring payment of Customs duties. The bonded cargos
shall be kept in the public bonded storehouses approved by the Customs or the bonded storehouses under the management of the materials
corporations themselves. The Customs shall oversee and control the bonded cargos in accordance with “The Customs Law of the People’s
Republic of China” and “The Measures of the Customs of the People’s Republic of China on Administration of Bonded Storehouses and
Cargos.”

Article 6

Domestically-produced cargos which are supplied to enterprises with foreign investment shall not be allowed to be stored in the bonded
storehouses.

Article 7

When the enterprises with foreign investment purchase the imported cargos stored in the bonded storehouses from the materials corporations,
they shall go through declaration formalities according to provisions on inbound import cargos. Import licences shall be presented
to the Customs for examination in case the cargos are subject to import licences. The enterprises with foreign investment are exempted
from presenting import licences when they purchase the above-said cargos, in case the materials corporations have already delivered
the import licences to the Customs for examination in accordance with the rules and regulations.

If the above-said cargos are materials or parts needed for the execution of contracts on export products, the related enterprises
shall submit to the Customs for examination export contracts, order contracts signed between the enterprises and the materials corporations,
“the Registration Manual” verified and issued by the Customs and triple copy of “the Form of Approval for Material Supply to the
Enterprises with Foreign Investment by Materials Corporations” filled in and signed by the materials corporations. One copy of the
form of approval shall be signed by the Customs and given to the materials corporation for handling delivery of the cargos and completing
the verifying and writing-off formalities; another copy is for the enterprises with foreign investment; and another copy is for the
Customs to place on file to follow verifying and writing-off procedures.

Article 8

Enterprises with foreign investment that are enpost_titled to tax reduction or exemption in their import cargos may also enjoy tax reduction
or exemption when they purchase the same kind of cargos from the material corporations. Those that are not enpost_titled to tax reduction
and exemption shall pay Customs duties and the industrial and commercial consolidated tax for the import link according to the rules
and regulations.

Article 9

The duration is one year for the materials corporations to keep the imported cargos in the bonded store-houses. The corporations may
apply to the Customs for extending the duration in special conditions. But the extension of the duration shall not exceed one year.

The cargos that are beyond the bond timelimit or are surplus to the requirements of enterprises with foreign investment shall be shipped
back out of Chinese territory. The bonded cargos that fail to be shipped back out of the territory beyond the timelimit shall be
handled by the Customs in accordance with Article 21 of “The Customs Law of the People’s Republic of China.”

Article 10

The bonded cargos imported by the materials corporations shall not be sold or transferred to domestic enterprises without approval
by the Customs and the competent economic and trade departments and shall not be exchanged with domestic cargos for use.

Article 11

Any act in violation of those Measures shall be dealt with by the Customs according to the relevant provisions of “The Customs Law
of the People’s Republic of China.”

Article 12

Customs control over the bonded means of production imported by the Shenzhen Special Economic Zone shall be exercised in accordance
with “Provisions on Administration of the Market of Bonded Means of Production in the Shenzhen Special Economic Zone.”

Article 13

The power to interpret the Measures rests with the General Administration of Customs.

Article 14

The Measures shall enter into force on April 1, 1991.



 
The General Administration of Customs
1991-03-05

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE REVISION OF ARTICLE 30 AND ARTICLE 31 OF THE THE PROTECTION OF CULTURAL RELICS

Category  CULTURE Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1991-06-29 Effective Date  1991-06-29  


Decision of the Standing Committee of the National People’s Congress Regarding the Revision of Article 30 and Article 31 of the Law
of the People’s Republic of China on the Protection of Cultural Relics


Appendix:  Article 30 and Article 31 of the Law of the People’s Republic

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

National People’s Congress on June 29, 1991, promulgated by Order No. 47 of
the President of the People’s Republic of China on June 29, 1991, and
effective as of the date of promulgation)

    The 20th Meeting of the Standing Committee of the Seventh National
People’s Congress, having considered the proposal submitted by the State
Council regarding the Draft Amendment to the Law of the People’s Republic of
China on the Protection of Cultural Relics, decides to make the following
revisions of Article 30 and Article 31 of the Law of the People’s Republic of
China on the Protection of Cultural Relics:

    1. The following five items are added to the acts to which administrative
sanctions shall be applicable as provided in Article 30:

    (1) scrawling upon, defiling or mutilating cultural relics under State
protection in not serious manners, or damaging or destroying signs put up in
accordance with the provisions of Article 9 of this Law for places to be
protected as cultural relics, for which the persons involved shall be fined
or instructed to compensate for the losses thus incurred by the public
security  department or by the units to which the cultural relics belong;

    (2) undertaking construction projects within the scope of protection for
a historical and cultural site, in contravention of the provisions of Article
11 of this Law, or constructing buildings or other structures within the area
delimited for the control of construction around a site to be protected for
its historical and cultural value, in contravention of the provisions of
Article 12 of this Law, for which the persons involved shall be instructed by
the departments for urban and rural planning, or by the said departments as
suggested by the departments for cultural administration, to stop the
construction and dismantle the buildings or other structures illegally
constructed, or, shall be fined;

    (3) carrying out such activities as demolition or excavation in the
vicinity of sites to be protected for their historical and cultural value,
thus endangering the safety of the cultural relics, for which the persons
involved shall be stopped from continuing such activities by the public
security department or by the said department as suggested by the departments
for cultural administration, and may concurrently be fined;

    (4) dealing, by agencies of cultural relics, in any cultural relics, the
buying or selling of which is not permitted by the departments for cultural
administration, for which the agencies involved shall, after examination and
verification by the administrative departments for industry and commerce in
conjunction with the departments for cultural administration, have their
illegal earnings confiscated by the administrative departments for industry
and commerce, and may concurrently be fined or shall have the cultural relics
illegally handled confiscated;

    (5) selling or presenting as gifts without permission any cultural relics
in their collection by museums, libraries or like institutions under public
ownership to other museums, libraries and like institutions under public
ownership, for which, the institutions involved shall be instructed by the
departments for cultural administration to recover the cultural relics sold
or presented as gifts and shall have the illegal earnings derived therefrom
confiscated or shall be fined; and the persons in charge and the persons
directly responsible shall be given administrative sanctions by the units to
which they belong or their higher authorities.

    Item (2) of Article 30 which reads: “buying or selling cultural relics
without the approval of the departments for cultural administration, for
which the persons involved shall be warned or fined by the departments for
the administration of industry and commerce, and their illegal earnings and
the cultural relics illegally handled by them may be confiscated,” is amended
to read: “buying or selling cultural relics without the approval of the
departments for cultural administration, for which, the persons involved
shall have their illegal earnings derived therefrom and the cultural relics
illegally handled confiscated by the administrative departments for industry
and commerce on their own or as suggested by the departments for cultural
administration, and may concurrently be fined.”

    A new paragraph is added to Article 30 as its second paragraph which
reads: “Anyone who is not satisfied with the administrative sanctions made in
accordance with the provisions of the preceding paragraph may apply for
reconsideration or bring a lawsuit according to law.”

    2. The following provisions are added to Article 31: (1) “selling or
presenting as gifts without permission any cultural relics in their
collection by museums, libraries or like institutions under public ownership
to any institution not under public ownership or to any individual, for which
the persons in charge and the persons directly responsible shall be
investigated for criminal responsibility by applying mutatis mutandis the
provisions of Article 187 of the Criminal Law;” (2) “functionaries of the
State who, by abusing their power, illegally appropriate any cultural relics
under State protection shall be deemed as embezzlers and punished as such;
those who have caused serious damage or losses to valuable cultural relics
shall be investigated for criminal responsibility by applying mutatis
mutandis the provisions of Article 187 of the Criminal Law.”

    The provisions of the first paragraph of Article 31 regarding the
investigation for criminal responsibility according to law is amended to
read: (1) the wording “smuggling valuable relics out of the country” in
Item (2) is amended to read: “smuggling cultural relics, the export of which
is prohibited by the State;” (2) a new item is added, which reads:
“excavating and robbing sites of ancient culture or ancient tombs.”

    The second paragraph of Article 31, which reads: “those who excavate
sites of ancient culture or ancient tombs without permission are punishable
for larceny”, is deleted.

    The third paragraph of Article 31, which reads: “those who sell valuable
cultural relics in private collections to foreigners without permission are
punishable for smuggling valuable cultural relics out of the country,” is
amended to read: “Any organization or individual who, without permission,
sells or presents as a gift to a foreigner any valuable cultural relics in
its, his or her collection, the export of which is prohibited by the State,
shall be deemed as smuggler and punished as such.”

    This Decision shall take effect as of the date of its promulgation.

    Article 30 and Article 31 of the Law of the People’s Republic of China on
the Protection of Cultural Relics shall be republished after being
correspondingly amended according to this Decision.
Appendix:  Article 30 and Article 31 of the Law of the People’s Republic
of China on the Protection of Cultural Relics

    (Amended according to the Decision Regarding the Revision of Article 30
and Article 31 of the Law of the People’s Republic of China on the Protection
of Cultural Relics adopted at the 20th Meeting of the Standing Committee of
the Seventh National People’s Congress on June 29, 1991)

    Article 30  Administrative sanctions shall be applied to those who have
committed any of the following acts:

    (1) scrawling upon, defiling or mutilating cultural relics under State
protection in not serious manners, or damaging or destroying signs put up in
accordance with the provisions of Article 9 of this Law for places to be
protected as cultural relics, for which the persons involved shall be fined
or instructed to compensate for the losses thus incurred by the public
security  department or by the units to which the cultural relics belong;

    (2) hiding cultural relics discovered underground, in inland waters, in
territorial seas or in other places and failing to report and deliver them to
the State,for which the persons involved shall be warned or fined by the
public security department and the cultural relics illegally acquired by them
shall be recovered;

    (3) undertaking construction projects within the scope of protection for
a historical and cultural site, in contravention of the provisions of
Article 11 of this Law, or constructing buildings or other structures within
the area delimited for the control of construction around a site to be
protected for its historical and cultural value, in contravention of the
provisions of Article  12 of this Law, for which the persons involved shall
be instructed by the departments for urban or rural planning on their own, or
by the said departments as suggested by the departments for cultural
administration, to stop the construction and dismantle the buildings or other
structures illegally constructed, or, shall be fined;

    (4) carrying out such activities as demolition or excavation in the
vicinity of sites to be protected for their historical and cultural value,
thus endangering the safety of the cultural relics, for which the persons
involved shall be stopped from continuing such activities by the public
security department or by the said department as suggested by the departments
for cultural administration, and may concurrently be fined;

    (5) buying or selling cultural relics without the approval of the
departments for cultural administration, for which, the persons involved
shall have their illegal earnings derived therefrom and the cultural relics
illegally handled confiscated by the administrative departments for industry
and commerce on their own or as suggested by the departments for cultural
administration, and may concurrently be fined;

    (6) dealing, by agencies of cultural relics, in any cultural relics, the
buying or selling of which is not permitted by the departments for cultural
administration, for which the agencies involved shall, after examination and
verification by the administrative departments for industry and commerce in
conjunction with the departments for cultural administration, have their
illegal earnings confiscated by the administrative departments for industry
and commerce, and may concurrently be fined or shall have the cultural relics
illegally handled confiscated;

    (7) selling cultural relics in private collections to foreigners without
permission, for which the persons involved shall be fined by the
administrative departments for industry and commerce, and the cultural relics
in question and the illegal earnings derived therefrom may also be
confiscated;

    (8) selling or presenting as gifts without permission any cultural relics
in their collection by museums, libraries or like institutions under public
ownership to other museums, libraries and like institutions under public
ownership, for which, the institutions involved shall be instructed by the
departments for cultural administration to recover the cultural relics sold
or presented as gifts and shall have the illegal earnings derived therefrom
confiscated or shall be fined; and the persons in charge and the persons
directly responsible shall be given administrative sanctions by the units to
which they belong or their higher authorities.

    Anyone who is not satisfied with the administrative sanctions made in
accordance with the provisions of the preceding paragraph may apply for
reconsideration or bring a lawsuit according to law.

    Article 31  Persons who commit any of the following acts shall be
investigated for criminal responsibility according to law:

    (1) misappropriating or stealing cultural relics of the State;

    (2) smuggling cultural relics, the export of which is prohibited by the
State, or serious cases of speculation in cultural relics;

    (3) wilful damage of valuable cultural relics or places of cultural and
historical interest under State protection;

    (4) excavating and robbing sites of ancient culture or ancient tombs; or

    (5) damage of, or losses to valuable cultural relics caused by the
dereliction of duty on the part of State functionaries.

    Selling or presenting as gifts without permission any cultural relics in
their collection by museums, libraries or like institutions under public
ownership to any institution not under public ownership or to any individual,
for which the persons in  charge and the persons directly responsible shall
be investigated for criminal responsibility by applying mutatis mutandis the
provisions of Article 187 of the Criminal Law.

    State functionaries who, by abusing their power, illegally appropriate
any cultural relics under State protection shall be deemed as embezzlers and
punished as such; those who have caused serious damage of or losses to
valuable cultural relics shall be investigated for criminal responsibility by
applying mutatis mutandis the provisions of Article 187 of the Criminal Law.

    Any organization or individual who, without permission, sells or presents
as a gift to a foreigner any valuable cultural relics in its, his or her
collection, the export of which is prohibited by the State, shall be deemed
as smuggler and punished as such.

    Personnel in charge of cultural relics who steal cultural relics placed
under their care shall be given heavier punishment according to law.





CIRCULAR OF THE STATE COUNCIL CONCERNING THE FURTHER OPENING UP OF HEIHE CITY AND THREE OTHER FRONTIER CITIES

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-03-09 Effective Date  1992-03-09  


Circular of the State Council Concerning the Further Opening up of Heihe City and Three Other Frontier Cities



(March 9, 1992)

    The State Council has decided to further open to the outside world the
following four frontier cities: Heihe City and Suifenhe City in Heilongjiang
Province, Hunchun City in Jilin Province and Manzhouli City in the Inner
Mongolia Autonomous Region.

    After the further opening of the aforesaid four frontier cities, they are
expected to expand actively frontier trade and local trade with Russia and
other countries in the Commonwealth of Independent States; to develop economic
cooperation in various forms such as investment cooperation, technical
exchange, service cooperation and so on; and to make reasonable use of local
advantages to develop manufacturing industries and tertiary industries so as
to promote the prosperity and stability of frontier areas.

    The four frontier cities shall carry out following policies:

    1. With respect to the frontier trades and foreign economic cooperation,
the aforesaid four cities shall implement the “Suggestions Concerning the
Vigorous Development of Frontier Trades and Economic Cooperation for Promoting
the Prosperity and Stability of Frontier Areas” which was approved by the
State Council in 1991, and other related stipulations of the state. The
provinces and the autonomous region may, within the limits of their own
authorities, vest the people’s governments of those four cities with certain
authority in administering frontier trade and economic cooperation. Within
these delegated authorities, contracts including frontier trade, manufacturing
and service cooperation and so on, may be examined and approved by these four
cities themselves. The four cities may establish, after being ratified by the
Ministry of Foreign Trade and Economic Cooperation, one or two more frontier
trade companies at the city level.

    2. Encouraging the development of manufacturing trade and foreign
exchange-making agriculture. During the Eighth Five-Year Plan period, import
custom duties and product taxes (or value-added taxes) shall be exempted for
seeds, seed plants, feed and other related technical equipment imported for
developing export-oriented agricultural products, as well as for machinery and
other goods and materials imported by enterprises for manufacturing
export-oriented products or for technical improvement.

    3. The four cities shall actively absorb domestic and foreign investments
so as to accelerate economic development. At present, the first stage is to
lay stress on absorbing investments from the Commonwealth of Independent
States and those from domestic enterprises so as to promote the development of
export trade; and is meanwhile to actively create favorable conditions to
expand the absorption of foreign investment from other countries or areas. The
people’s governments of the related provinces and autonomous region may
extend, within the limit of their respective authority, the limits of power
vested in the people’s governments of the four cities for examining and
approving foreign investment programs. After being approved by local tax
authorities, the enterprise income tax may be levied at the reduced rate of 24
percent for foreign-invested enterprises.

    The investors from the Commonwealth of Independent States are permitted to
include within their total investment value capital goods and other goods or
equipment as contributing investments. These goods may be sold in accordance
with the frontier trade bartering stipulations and shall be granted a 50
percent reduction in import custom duties and consolidated industrial and
commercial tax.

    4. The aforesaid four cities may set aside certain areas within the
administrative region of each city so as to set up frontier economic
cooperation zones. With the intent of attracting investment from inland
enterprises, each city may establish manufacturing enterprises and relevant
tertiary industries, whose products are to be exported to countries within the
Commonwealth of Independent States. The specific limits of the frontier
economic cooperation zones shall be examined and decided by the Office for
Specific Economic Zones under the State Council in conjunction with other
departments concerned.

    5. Those industrial enterprises in the frontier economic cooperation zones
which have a cooperation agreement with other domestic industrial enterprises
and which have a production capacity and export figures over certain amounts,
may be granted licenses for engaging in import from and export to the
Commonwealth of Independent States after the approval by the Ministry of
Foreign Trade and Economic Cooperation. The specific standards of permitted
import and export amounts shall be decided by the Ministry of Foreign Trade
and Economic Cooperation after a study. Enterprise income tax for the
aforesaid enterprises shall be levied at a reduced rate of 24 percent locally.
Investors in the aforesaid enterprises who bring their share of profits back
to other inland regions, shall have 9 percent more income tax collected by the
tax authorities of those inland regions. The investment direction adjustment
tax shall be exempted within the period of the Eighth Five-Year Plan of the
national economy.

    6. Goods which are obtained by the aforesaid enterprises and the
foreign-invested enterprises located in the frontier economic cooperation
zones through barter trade with countries in the Commonwealth of Independent
States may be sold without authorization, and a 50 percent reduction of
customs duties and consolidated industrial and commercial taxes shall be
granted at the time of their importation. As to those commodities whose
imports are limited by the State, the enterprises shall go through the
examination and approval procedures in accordance with related stipulations by
the State.

    7. With respect to machinery, equipment and other construction goods which
must be imported for the construction of the necessary infrastructure within
the frontier economic cooperation zones, import customs duties and product
taxes (or value-added taxes) may be exempted. Within the period of the Eighth
Five-Year Plan, the newly increased fiscal revenue in the frontier economic
cooperation zones may be left with the localities and used for the
construction of the necessary infrastructure.

    8. Within the period of the Eighth Five-Year Plan, the People’s Bank of
China shall arrange forty million yuan (ten million yuan for each city) in
special fixed assets loans each year, which shall be used for the development
of the frontier economic cooperation zones. This shall be listed in the state
credit and investment plan.

    The people’s governments of Heilongjiang Province, Jilin Province and the
Inner Mongolia Autonomous Region shall strengthen their leadership role
towards the four cities, and shall help them to perfect overall planning of
development. The scale of construction in the four cities must be appropriate
to the feasibility of development, and over-ambitious development plans must
be abandoned. While expanding the opening to the outside world and speeding up
economic construction, the four cities shall strengthen the building of a
socialist society with an advanced culture and ideology, strengthen economic
management and control, and ensure the security and stability in frontier
areas as well as the healthy development of various undertakings.





REGULATIONS ON CONTROL OF OUTBOUND AND INBOUND LUGGAGE AND ARTICLES CARRIED BY CHINESE CITIZENS

Regulations of the PRC on Control of Outbound and Inbound Luggage and Articles Carried by Chinese Citizens

     (Effective Date:1992.06.01–Ineffective Date:)

   Article 1. These regulations are formulated in accordance with relevant provisions of “The Customs Law of the People’s Republic of China” and
“Procedures of the Customs of the People’s Republic of China for Controlling Inbound and Outbound Luggage and Articles Carried by
Passengers”.

   Article 2. Chinese citizens mentioned in these regulations refer to Chinese who reside in China and enter and exit of China through passports
for private affairs signed and issued by Chinese public security departments.

   Article 3. Clearance shall be given by the Customs, upon duty levying or exemption according to Customs provisions, to items and amounts of
inbound luggage and articles within limits as prescribed in the attached “Table of Limits on Articles Carried into China by Chinese
Citizens (Referred hereafter as “Table of Limits”, see Appendix 1) if they are carried by Chinese citizens who have resided continuously
outside China for a year or more before the date of entry.

For articles beyond the limit of duty exemption as prescribed in Items 4 and 5 of the Table of Limits, clearance shall be given to
only one article upon examination and approval by the Customs.

   Article 4. Clearance and exemption shall be given by the Customs to articles within limits as prescribed in Items 1, 2 and 3 of the Table of
Limits which are carried into China by Chinese citizens having resided outside China continuously for less than one year before the
current entry. For articles in Items 4 and 5 of the Table of Limits, clearance shall be given to only one article chosen from among
them after duty payment if Chinese citizens enter China for the first time in each Gregorian-calendar year.

Articles beyond the limit of those taxed and permitted to enter shall not be allowed to come into Chinese territories. Travellers
shall go through procedures to claim and send them out of China on their own within the time limit set by the Customs. The Customs
shall dispose of the articles beyond the time limit.

   Article 5. For travellers under the age of 16 full years, clearance shall be given only to articles necessary for travelling.

   Article 6. Except articles the exit of which is prohibited or restricted by the State, a reasonable amount of luggage and articles carried by
Chinese residents for their own use are allowed to leave Chinese territories.

   Article 7. Articles listed in “Table of Articles Prohibited to Enter or Leave the People’s Republic of China” shall not be carried by Chinese
citizens into or outside of China.

   Article 8. Inbound and outbound luggage and articles carried by personnel holding passports for private affairs or valid passes issued by competent
Chinese departments in charge of Hongkong, Macro and Taiwan affairs shall be processed by the Customs pursuant to other related regulations.

Clearance is given only to inbound and outbound luggage and articles necessary for travelling of personnel who hold the above-mentioned
documents and cross Chinese borders with neighbouring countries.

   Article 9. Matters not provided for in these regulations are handled according to related Customs laws and regulations.

   Article 10. The regulations shall come into force as of June 1, 1992.

Appendix 1

TABLE OF LIMITS ON ARTICLES CARRIED INTO CHINA BY CHINESE CITIZENS

Amount

Residing abroad Residing abroad

Item continuously continuously

for more than for less than

one year one year

1. Foodstuffs, clothing

material, clothing, arts

and crafts, ordinary

watches and other

    





CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE COMPLETION OF FORMALITIES CONCERNING RATIFICATION AND APPROVAL OF INTERNATIONAL TREATIES AND AGREEMENTS

Category  FOREIGN AFFAIRS Organ of Promulgation  The General Office of the State Council Status of Effect  In Force
Date of Promulgation  1992-08-12 Effective Date  1992-08-12  


Circular of the General Office of the State Council Concerning the Completion of Formalities Concerning Ratification and Approval
of International Treaties and Agreements



(August 12, 1992)

    The conclusion or accession of international treaties and agreements
constitutes serious work and must strictly conform with the Law of the
People’s Republic of China regarding the Procedure of the Conclusion of
Treaties. To facilitate and ensure the timely completion of formalities
associated with ratification, approval, accession and acceptance of
international treaties and agreements and in conformance with the State
Council’s directives, the following circular requires that:

    1. Concerning international treaties or agreements that are statutorily
required to be submitted to the Standing Committee of the National People’s
Congress for ratification or to the State Council for approval, the relevant
department shall submit these documents within three months of the date of
their signature to the State Council. In the event that the existence of
special circumstances requires a choice of a proper opportunity for
ratification of the Standing Committee of the National People’s Congress or
for approval of the State Council, the documents may be submitted at a later
date to the State Council provided that the relevant department include with
these documents the reasons for such delay.

    2. Concerning international treaties or agreements that are to be
submitted to the Standing Committee of the National People’s Congress for
ratification or accession at a date as promised to a foreign party(s), the
relevant department shall submit the documents to the State Council no later
than two and a half months prior to the promised date. Concerning
international treaties or agreements that are to be submitted to the State
Council for approval, accession or acceptance at a date as promised to a
foreign party(s), the relevant department shall submit the documents to the
State Council no later than one and a half months prior to the promised date.
In either case, if by reason of special circumstances or urgent requirements,
submission of these documents within these time period is made impossible, the
relevant department shall consider them as urgent documents by providing
reasons at the time of their submission to the State Council.





LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON SAFETY IN MINES

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.65

The Law of the People’s Republic of China on Safety in Mines which has benn adopted at 28th session of the Standing Committee of the
7th National People’s Congress on November 7, 1992 is promulgated now, and shall enter into force as of May 1, 1993.

President of the People’s Republic of China: Yang Shangkun

November 7, 1992

Law of the People’s Republic of China on Safety in Mines ContentsChapter I General Provisions

Chapter II Guarantees for Satefy in Mine Construction

Chapter III Guarantees for Safety in Exploitation of Mines

Chapter IV Safety Managment of Mining Enterprises

Chapter V Supervision and Control over Safety inMines

Chapter VI Disposition of Accidents in Mines

Chapter VII Legal Responsibilities

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the purpose of ensuring safety in production in mines, preventing accidents and protecting personal safety
of workers and staff at mines and promoting the development of mining industry.

Article 2

All activities relating to exploitation of mineral resources conducted within the boundaries of the People’s Republic of China, as
well as in other sea areas under its jurisdiction must comply with this Law.

Article 3

Mining enterprises must possess facilities that ensure safety in production, establish and perfect the system of safety management,
take effective measures to improve the working conditions for workers and staff and strengthen the work of safety control in mines
in order to ensure safe production.

Article 4

The competent departments of labour administration under the State Council shall exercise unified supervision over the work of safety
control throughout the country.

The competent departments of labour administration of the local people’s governments at or above the county level shall exercise unified
supervision over the work of safety control in mines within their respective administrative regions.

The authorities in charge of mining enterprises under the people’s governments at or above the county level shall administer safety
work in mines.

Article 5

The State shall encourage research in science and technology relating to safety in mines, popularize advanced technology, improve
safety facilities and enhance the level of safe production in mines.

Article 6

Units and individuals that have make outstanding achievements in persistent safe production in mines, prevention of accidents, participation
in rescue work at mines and scientific and technological research relating to safety in mines shall be awarded.

Chapter II Guarantees for Satefy in Mine Construction

Article 7

Safety facilities in mine construction projects must be designed, constructed and put into operation and use at the same time with
the principal parts of the projects.

Article 8

The design papers for mine construction projects must comply with the safety rules and technological standards for mining industry
and shall, according to regulations of the State, be subject to the approval of the authorities in charge of mining enterprises;
those failing to comply with the safety rules and technological standards for mining industry may not be approved.

The designs of safety facilities in mine construction projects must be examined with the participation of the competent department
of labour administration.

The safety rules and technological standards for mining industry shall be formulated by the authorities in charge of mining enterprises
under the State Council.

Article 9

The following items in mining designs must comply with the safety rules and technological standards for mining industry:

(1)

ventilation system of the shaft, and quantity, quality and speed of underground air;

(2)

slope angles of an opencast mine and the width and height of its steps;

(3)

electricity supply system;

(4)

hoisting and transportation systems;

(5)

water control and drainage systems and fire control and fire- extinguishing systems;

(6)

gas control system and dust control system;

(7)

other items concerning safety in mines.

Article 10

Each underground mine must have at least two walkable safety outlets and the direct horizontal distance between such outlets must
comply with the safety rules and technological standards for mining industry.

Article 11

Mines must have transportation and communication facilities that link the mines with the outside and meet safety requirements.

Article 12

Mine construction projects must be constructed in accordance with the design papers approved by the authorities in charge of mining
enterprises.

Upon completion, the safety facilities in mine construction projects shall be subject to inspection for acceptance by the authorities
in charge of mining enterprises, with participation of the competent department of labour administration; those failing to comply
with the safety rules and technological standards for mining industry may not pass inspection for acceptance, and may not be put
into operation.

Chapter III Guarantees for Safety in Exploitation of Mines

Article 13

For exploitation of mines, requirements that ensure safe production must be met, and the safety rules and technological standards
for mining industry corresponding to the exploitation of different types of minerals must be observed.

Article 14

Mine pillars and rock pillars to be preserved as specified in the mining designs shall, within the prescribed period of time, be protected
and may not be exploited or damaged.

Article 15

Equipments, apparatus, protective appliances and safety testing instruments used in mines with special safety requirements must comply
with the national safety standards or safety standards of the mining industry; those failing to comply with the national safety standards
or safety standards of the mining industry shall not be put into use.

Article 16

Mining enterprises must regularly carry out inspection, maintenance and repair of mechanical and electrical equipments and protective
installations thereof, as well as safety testing instruments, so as to ensure safe operation.

Article 17

Mining enterprises inspect the poisonous and harmful substances at the work sites and the percentage of oxygen in underground air
to ensure that they meet safety requirements.

Article 18

Mining enterprises must adopt preventive measures against the following hidden dangers of accidents that jeopardize safety:

(1)

roof falling, slabbing, slope sliding, and surface collapsing;

(2)

gas blast and coal dust explosion;

(3)

bumps, gas outburst and blowout;

(4)

fire and flood on surface and underground;

(5)

perils arising from demolition apparatus and demolition operations;

(6)

perils caused by dust, poisonous and harmful gases, radioactive and other harmful substances; and

(7)

other perils.

Article 19

Mining enterprises shall take preventive measures against perils that may arise out of using mechanical and electrical equipment,
soil tips, mine tips, dams and lagoons, as well as from disused mine pits.

Chapter IV Safety Managment of Mining Enterprises

Article 20

Mining enterprises must establish and improve the safe production responsibility system.

Managers of mines shall be responsible for the safe production in their respective enterprises.

Article 21

Managers of mines shall, on a regular basis, report their work on safe production to the corresponding congresses of workers and staff
or assemblies of workers and staff, thus bringing into play the supervisory role of the congresses of workers and staff.

Article 22

Workers and staff of mining enterprises must observe the laws, regulations and enterprise rules concerning safety in mines.

Workers and staff of mining enterprises have the right to make criticisms, reports and charges against any conduct that endangers
safety.

Article 23

Trade unions of mining enterprises shall safeguard, in accordance with the law, the lawful rights and interests of the workers and
staff in relation to safe production, organize the workers and staff to carry out supervision over the safety work of the mines.

Article 24

If a mining enterprise violates any laws or regulations concerning safety, the trade union is enpost_titled to demand that the management
of the enterprise or the department concerned deal with the case seriously.

Meetings held by mining enterprises to discuss matters concerning safe production shall be attended by representatives of trade unions,
and trade unions have the right to advance their opinions and proposals.

Article 25

Where the management of an enterprise gives a command contrary to the established rules and compels workers to operate under unsafe
conditions, or, major hidden dangers of accidents and occupational hazards are found in the course of production the trade union
has the right to put forward proposals for a solution; where the life of the workers and staff is in danger, the trade union has
the right to propose to the management that the workers and staff be evacuated from the dangerous site in an organized manner, and
the management must make a decision without delay.

Article 26

Mining enterprises must give safety education and training to their workers and staff; those who have not received safety education
and training may not take up a post of duty.

Special operators in charge of safe production in mining enterprises must receive special training; they may take up a post of such
duty only after they have obtained a certificate of operation qualification after passing due examination and verification.

Article 27

Managers of mines must prove, through examination, to have special knowledge of safety and the capability of leading safe production
and disposing of accidents in mines.

Personnel in charge of safety work in mining enterprises must possess necessary specialized knowledge of safety and experience in
safety work in mines.

Article 28

Mining enterprises must distribute to their workers and staff labour protective gadgets necessary for guaranteeing safe production.

Article 29

Mining enterprises may not recruit adolescents to engage in underground work.

Mining enterprises shall in accordance with regulations of the State practise special labour protection with respect to women workers
and staff, and may not assign women workers any underground work.

Article 30

Mining enterprises must adopt preventive measures against accidents in mines, and be responsible for their implementation.

Article 31

Mining enterprises shall establish rescue and first-aid groups composed of full-time or part-time personnel and equipped with necessary
equipment and medicine.

Article 32

Mining enterprises must, in accordance with regulations of the State, draw special funds for safety technical measures from the amount
of sales of their mineral products. The special funds for safety technical measures must be used exclusively to improve conditions
of safe production in mines and may not be diverted to any other purposes.

Chapter V Supervision and Control over Safety inMines

Article 33

Competent departments of labour administration of the people’s governments at or above the county level shall exercise the following
supervisory functions and responsibilities with respect to safety work in mines:

(1)

to inspect the implementation of laws and regulations on safety in mines by mining enterprises and the authorities in charge of mining
enterprises;

(2)

to participate in the examination of designs of safety facilities in mine construction projects as well as the inspection for acceptance
upon completion of such projects;

(3)

to inspect the working conditions and state of safety in mines;

(4)

to inspect the work of giving education and training in safety to workers and staff by mining enterprises;

(5)

to supervise the allocation and use of the special funds for safety technical measures by mining enterprises;

(6)

to participate in and supervise investigation and disposition of accidents in mines;

(7)

other supervisory functions and responsibilities provided for in laws and administrative rules and regulations.

Article 34

The authorities in charge of mining enterprises under the people’s governments at or above the county level shall exercise the following
functions and responsibilities with respect to the control of safety work in mines:

(1)

to inspect the implementation of laws and regulations on safety in mines by mining enterprises;

(2)

to examine and approve designs of safety facilities in mine construction projects;

(3)

to be responsible for the inspection for acceptance upon completion of safety facilities in mine construction projects;

(4)

to organize the training of managers of mines and personnel in charge of safety work in mining enterprises;

(5)

to investigate and deal with serious accidents in mines; and

(6)

other controlling functions and responsibilities provided for in laws and administrative rules and regulations.

Article 35

The personnel in charge of mine safety supervision under the competent department of labour administration are enpost_titled to enter mining
enterprises and make on-the-spot inspections on the state of safety; when circumstances of emergency threatening the safety of workers
and staff are discovered, they shall demand a prompt action thereof by the mining enterprise involved.

Chapter VI Disposition of Accidents in Mines

Article 36

In case an accident occurs in a mine, the mining enterprise concerned must organize rescue work immediately so as to prevent the spreading
of the accident and reduce casualties and property losses, and must immediately and truthfully report any accident involving causalities
to the competent department of labour administration and the authorities in charge of mining enterprises.

Article 37

In the case of an ordinary mine accident, the mining enterprise concerned shall be responsible for the investigation and the disposition
thereof.

In the case of a serious mine accident, the relevant government, together with its competent department, the trade union and the mining
enterprise concerned, shall investigate and deal with the case in accordance with the provisions of administrative rules and regulations.

Article 38

Mining enterprises shall, in accordance with regulations of the State, give pensions or compensations for workers and staff members
who died or were injured in accidents in mines.

Article 39

After the occurrence of a mine accident, dangers at the scene shall immediately be eliminated, causes of the accident promptly ascertained
and preventive measures timely devised. Production may be resumed only after dangers at the scene have been eliminated.

Chapter VII Legal Responsibilities

Article 40

Whoever commits any of the acts enumerated below in violation of this Law shall be ordered by the competent department of labour administration
to make a rectification and may concurrently be punished by a fine; if the circumstances are serious, the case shall be submitted
to the people’s government at or above the county level for a decision ordering the suspension of production for a cleaning up; the
person in charge and the person directly responsible shall be subjected to administrative sanctions by the unit to which they belong
or by the competent authorities at higher levels:

(1)

assigning any worker or staff member to a post of duty without due education and training in safety;

(2)

using equipment, apparatus, protective appliances and safety examination and testing instruments manufactured not in compliance with
the national safety standards or safety standards of the industry;

(3)

failing to allocate or use the special funds for safety technical measures in compliance with relevant regulations;

(4)

refusing personnel in charge of safety in mines to make on-the-spot inspections, or concealing hidden dangers of accidents or failing
to truthfully report the situations when being inspected;

(5)

failing to make timely and truthful reports, as prescribed, on accidents at mines.

Article 41

Mine mangers without special knowledge of safety, or specialized operators in charge of safe production taking up a post of duty without
certificates of operation qualifications shall be ordered by the competent department of labour administration to make a rectification
within a fixed period of time; where rectifications are not made upon expiration of the period, the matter shall be submitted to
the relevant people’s government at or above the county level for a decision ordering the suspension of production, and production
may not be resumed until qualified personnel are assigned to such posts after readjustment.

Article 42

Where a mine construction project is started without having the designs of its safety facilities approved, the mining enterprise concerned
shall be ordered by the authorities in charge of mining enterprises to stop the construction; with respect to the mining enterprise
refusing to carry out the order, the matter shall be submitted by the authorities in charge of mining enterprises to the relevant
people’s government at or above the county level for a decision on the rescission of its mining permit and business license by the
competent authorities.

Article 43

Where the safety facilities in a mine construction project are put into operation without having been inspected for acceptance or
without having passed inspection for acceptance, the mining enterprise concerned shall be ordered to stop production by the competent
department of labour administration in conjunction with the authorities in charge of mining enterprises, and shall also be fined
by the competent department of labour administration; with respect to the mining enterprise refusing to stop production, the matter
shall be submitted by the competent department of labour administration to the relevant people’s government at or above the county
level for a decision on the rescission of its mining permit and business license by the competent authorities.

Article 44

Where a mining enterprise already put into operation but without the due conditions for safe production insists on forced exploitation,
it shall be ordered by the competent authorities of labour administration in conjunction with the authorities in charge of mining
enterprises to make improvement within a fixed period of time; with respect to the mining enterprise that still fails to meet the
conditions for safe production upon expiration of the period, the matter shall be submitted by the competent department of labour
administration to the relevant people’s government at or above the county level for a decision on the suspension of production for
the purpose of readjustment or on the rescission of its mining permit and business license by the competent authorities.

Article 45

If any party is not satisfied with the decision on administrative sanctions, it may, within 15 days from receiving the notification
of the decision, apply for reconsideration to the higher authorities next to the one that has made the decision; the party also may
directly bring a suit before a people’s court within 15 days from receiving the notification of the decision.

The authorities responsible for shall make a decision within 60 days from receiving the application for reconsideration. If the party
is not satisfied with the decision, it may bring a suit before a people’s court within 15 days from receiving the decision. If upon
expiration of the time limit, the authorities fail to make a decision, the party may bring a suit before the people’s court within
15 days upon expiration of the period for reconsideration.

If upon expiration of the time period, the party concerned has not applied for reconsideration, nor brought a suit before the people’s
court, nor complied with the decision, the authorities that has made the decision may apply to the people’s court for compulsory
execution.

Article 46

Any responsible person of a mining enterprise who gives command in violation to established regulations and compels workers to carry
out operations at risks, thus causing accidents involving serious causalities, shall be investigated for criminal responsibilities
in accordance with the provisions of Article 114 of the Criminal Law.

Article 47

Any responsible person who fails to take measures with respect to hidden dangers of accidents in a mine, thereby causing accidents
involving serious causalities, shall be investigated for criminal responsibilities by applying mutatis mutandis the provisions of
Article 187 of the Criminal Law.

Article 48

Where any person in charge of safety supervision or safety control in a mine abuses his power, neglects his duty, or practices favoritism
and irregularities, and if the act constitutes a crime, the person concerned shall be investigated for criminal responsibilities
in accordance with the law; if the act does not constitute a crime, administrative sanctions shall be given.

Chapter VIII Supplementary Provisions

Article 49

Regulations for implementation shall be formulated by the competent department of labour administration under the State Council in
accordance with this Law, and the regulations formulated shall be submitted to the State Council for approval before implementation.

The standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly under the Central
Government may, in accordance with this Law and in light of the actual conditions of their respective areas, draw up measures of
implementation.

Article 50

This Law shall enter into force as of May 1, 1993.



 
The Standing Committee of the National People’s Congress
1992-11-07

 






CIRCULAR OF THE STATE COUNCIL CONCERNING PROMOTING SELF-OPERATED IMPORT AND EXPORT OF THE PRODUCTION ENTERPRISES

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1993-05-12 Effective Date  1993-05-12  


Circular of the State Council Concerning Promoting Self-operated Import and Export of the Production Enterprises



(May 12, 1993)

    To authorize the large- and medium-size production enterprises to operate
import and export so as to enable them to participate directly in competition
in the international market is one of the important measures of deepening
enterprise reform and vitalizing the large- and medium-size state-owned
enterprises, which is of great importance to quicken the pace of reform and
opening to the outside world and develop foreign trade in this country. Since
issuing of Circular of the State Council Concerning Vitalizing the Large- and
Medium-Size State-Owned Enterprises and Circular of the State Council
Concerning Approval and Transmitting of Suggestions by the Ministry of Foreign
Economic Relations and Trade and the Production Office of the State Council on
Authorizing the Production Enterprises to Operate Import and Export, the
production enterprises which are authorized to operate import and export have
amounted to more than one thousand due to the effort made by the relevant
departments. The growth rate of the aggregate export value and self-operated
expert value of these enterprises are higher than the average growth level of
export throughout the country, they have obviously become one of the important
sources of foreign currency.

    With a view of implementing in an all-round way the Regulations on
Transformation of Operational Mechanism of the State-Owned Enterprises,
keeping abreast of the socialist market economy regime and giving full play to
the superiority of the production enterprises in self-operated import and
export, the measure on the relevant matters are hereunder provided for:

    1. The production enterprises which are authorized to operate import and
export (hereinafter referred to as “the self-operated enterprises”), after
going through the formalities of registration with the industry and commerce
administration, are to qualify as external legal person. The self-operated
enterprises may establish organization for import and export internally when
necessary. Qualified large-scale enterprise group(s) may establish a wholly
owned subsidiary company for import and export subject to approval. The
self-operated enterprises may export their products and relative technology
and import technology, equipment, spare parts and accessories, raw materials
needed in their production. Eligible self-operated enterprises may be granted
contractual management right for construction projects abroad.

    The self-operated enterprises are obligated to fulfill the tasks of
export and earning foreign exchange assigned by the state, subordinate
themselves to the management and coordination by the local competent economic
and trade departments and submit information on their business operation and
statistics to the competent foreign economic and trade departments as required.

    2. The local people’s governments and the departments concerned of the
State Council shall give support to the self-operated enterprises in every
respect. With a view to promoting the import and export of the self-operated
enterprises, the rights and the preferential policies to which the
self-operated enterprises are enpost_titled shall be positively granted, timely
guidance and assistance shall be rendered and personnel training for the
self-operated enterprises shall be given importance to. To the enterprises
which shoulder heavier task of earning foreign exchange by export, necessary
assistance and guarantee shall be provided in respect of raw material supply,
power supply, transportation arrangement, loans for circulating funds, etc.
so as to help them solve the difficulties in production and operation.

    The State Economic and Trade Commission and the Ministry of Foreign Trade
and Economic Co-operation shall strengthen the coordination and administration
in self-operated import and export, resolve the problems and difficulties
in time and help the enterprises to enhance their ability to participate in
the competition on the world market. The competent authorities of foreign
trade at all levels shall incorporate the self-operated enterprises into
uniform administration and statistics at the state or local level, assign
annual export task and formulate tax refund plan in the light of actual
conditions prevailing in the self-operated enterprises and give necessary
guidance in respect of foreign trade policy and business.

    3. The self-operated enterprises shall be treated equally with the foreign
trade enterprises in respect of the preferential import and export policy of
the state. The self-operated enterprises should apply for quota and licence
according to the relevant regulations of the state in their import and export
business involving commodities covered by the quota and licence control.

    The self-operated enterprises may participate in bid on an equal basis
with the foreign trade enterprises for the export quota and licence
distributed through tendering or auction. The tax refund on export for the
foreign trade enterprises shall be uniformly practised for the self-operated
enterprises and timely, adequate refund shall be made to them based on the
principle of “refund to the full amount of export”.

    4. The self-operated enterprises, after fulfilling the task of handing
over the required amount of foreign exchange earnings to the state, are
enpost_titled to use the foreign exchange self-retained and to make adjustment, no
department or unit is allowed to appropriate or withhold the foreign exchange
retained by the enterprises, to withhold the RMB repayable to the enterprises
after handing over the reimbursable foreign exchange earnings or to attach any
condition to the use of the foreign exchange earnings retained. The qualified
self-operated enterprises may open cash account in foreign currency with the
bank(s) authorized to handle foreign exchange business subject to approval by
the competent authorities. The self-operated enterprises are encouraged to
develop the business of import for the expansion of export, for the foreign
exchange earnings from it, within the amount and turnover approved, the amount
handing over to the state treasury shall be calculated in terms of net foreign
exchange earnings on the scale stipulated by the state.

    5. The self-operated enterprises may open a circulating fund account of
RMB and foreign exchange with the bank(s) handling business of foreign
exchange settlement. The foreign trade circulating fund loan application filed
by the self-operated enterprises shall be considered by the bank on the
merits of their performance in production and operation, and requirements for
import and export, and the preferential interest rate for foreign trade shall
be applied. The self-operated enterprises may apply for export credit with the
relevant banks of the state in accordance with relevant regulations. The
self-operated enterprises are enpost_titled to decide on the use of fund retained
upon entry into force of the General Rules Governing Enterprise Financial
Affairs and the Accounting Criteria for Enterprises. The self-operated
enterprises may establish an export risk fund, withdrawal, utilization and
management of which shall be done as provided for by the Ministry of Finance.

    6. The self-operated enterprises are enpost_titled to decide on theirown the
number and list of business personnel of the enterprises going abroad
frequently, and one-time approval for multiple trips within one year shall be
followed subject to approval by the competent authorities. Political scrutiny
in the case of director(general manager)of the enterprise going abroad shall
be carried out by the personnel department at a higher level, and in the case
of other persons of the enterprise going abroad shall be conducted by the said
enterprise’s personnel department. The enterprise may submit an application to
its responsible department for its persons going abroad with the letter(cable)
of invitation by a foreign firm, and the visa application and other procedures
in relation to departure shall be handled by the department in charge of
foreign affairs after approval.

    The self-operated enterprises which are authorized by the State Council
to approve temporary business trips abroad (out of the territory) and
invitation to China may within their scope of business approve in their power
temporary business trips abroad (out of the territory) of the personnel from
their enterprises and invitation to foreign businessmen to China, and may
accomplish the formalities of departure from and entry into the country as
stipulated. In the case of directors(general managers), approval shall be
given by competent departments.

    the self-operated enterprises may use their own foreign exchange earnings
to finance business trips abroad of their personnel out of the need of
developing their foreign business; in case of shortage in their own foreign
exchange earnings, they may apply to competent authorities for adjustment.
The relevant departments shall provide necessary assistance and facilities
for the self-operated enterprises to participate in or hold exhibitions,
business talks or trade fairs both at home or abroad.

    7. The self-operated enterprises are encouraged to establish maintenance
and repair service network out of the territory (excluding Hongkong and
Macao), for this purpose the approval procedures shall be further simplified.
The establishment of the service network to meet the needs of their business
operations out of the territory (excluding Hongkong and Macao) for which the
investment by the Chinese side is less than one million US dollars may be
approved by the enterprises themselves, in the case of more than one million
US dollars (including one million US dollars), it shall be submitted for
approval as stipulated by the state. The maintenance and repair network so
established out of the territory shall strictly abide by the state regulations
on assets, finance, taxation and foreign exchange, etc. as well as the regime
and provisions for investment out of the territory provided for by the state.

    8. The self-operated enterprises shall build up a reputation for their
brands in the market both at home and abroad. In the case of one trade mark,
the registration of which at home is by a production enterprise and by a
foreign trade enterprise abroad, the production enterprise after being
authorized to operate import and export business itself may become transferee
of the trade mark registered abroad by the foreign trade enterprise on the
basis of reimbursement; if the self-operated enterprise intends to use a
trade mark which has been registered by a foreign trade enterprise in china,
it shall sign a licencing agreement with the foreign trade enterprise in
accordance with the relevant law and guarantee the quality of the products
bearing the trade mark.

    9. The self-operated enterprises of machinery and electronic products
shall be encouraged to expand their export for increasing foreign exchange
earnings while improving their economic efficiency. For the self-operated
enterprises of machinery and electronic products with linkage of the
aggregate salary with its economic performance, one more scale factor linking
the aggregate salary to the increase of their export value (or the foreign
exchange earnings received) may be added apart from the fixed coefficient
between total wage quota and the profits and taxes realized in pursuance of
the Circular of the State Council on Approval and Transmitting of the
Suggestions by the Machinery and Electronic Products Export Office of the
State Council on Further Promoting Export of Machinery and Electronic
Products, with the factors not exceeding 1 accumulatively. The calculation
therefor shall be governed by the Circular on the Calculation of Wage
Increases on the Basis of the Increased Floating Ratio of the Foreign
Exchange Earned by Export for the Production Enterprises of Machinery and
Electronic Products for Export by the former Machinery and Electronic
Products Export Office of the State Council, the Ministry of Labour and the
Ministry of Finance.

    10. the self-operated enterprises must strictly abide by the policies,
laws and regulations on foreign trade by the state and operate under the
guidance and supervision of the competent authorities for foreign trade at
all levels. They must be oriented towards both the domestic and international
markets, aggressively develop new products, improve product quality, upgrade
their products and enhance the ability of competition in the international
market. They shall transform their operational mechanism, streamline internal
management, reduce cost and raise economic efficiency. They should positively
join the relevant chamber of commerce of importers and exporters, and be
subordinate to the guidance and coordination of the chamber in consideration
of the state interest. To keep a breast of the healthy development of
internationalized operation, the leading cadres and foreign trade personnel
of the enterprises shall enhance their political and business quality.

    Reference shall be made to the above measures for the scientific and
research institutions which are authorized to manage import and export
business.





CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE QUESTIONS CONCERNING THE APPLICABLE TAX RATE AND DEDUCTION OF CALCULATED TAX AMOUNT RELATED TO INCOME OF ENTERPRISES WITH FOREIGN INVESTMENT FROM OUTSIDE CHINA

The State Administration of Taxation

Circular of the State Administration of Taxation on the Questions Concerning the Applicable Tax Rate and Deduction of Calculated Tax
Amount Related to Income of Enterprises with Foreign Investment from Outside China

GuoShuiFa [1993] No.39

July 14,1993

In accordance with the related stipulations of the Income Tax Law on Enterprises with Foreign Investment and Foreign Enterprises and
its Rules for the Implementation (hereinafter referred to as the Tax Law and Rules), we hereby clarify the question concerning the
applicable tax rate related to the income gained by an enterprise with foreign investment from outside China and the question concerning
calculation of deduction of the income tax already paid outside China:

I.

In accordance with Article 71 of the Rules, the reduced tax rate as stipulated in the Tax Law is applicable only to the income gained
by a enterprise with foreign investment from production and operation carried out in appropriate districts. Therefore, with regard
to the income gained by a enterprise with foreign investment from outside China, enterprise income tax and 1ocal income tax shall
be calculated and levied without exception in accordance with the stipulations of Article 5 of the Tax Law.

II.

As regards the item which states “the total amount of payable tax calculated in accordance with the Tax Law on incomes gained from
inside and outside China” as set in the formula for calculating the quota of overseas tax payment to be deducted as listed in Article
84 of the Rules, the total amount of income gained from inside and outside China shall be calculated in accordance with the enterprise
income tax rate and local income tax rate as stipulated in Article 5 of the Tax Law.

III.

This Circular shall enter into force as of the day of receipt of the document.



 
The State Administration of Taxation
1993-07-14

 






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CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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