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CIRCULAR OF STATE ADMINISTRATION OF TAXATION FOR RELEVANT ISSUE CONCERNING PURCHASE AND USE OF INVOICES BY AGENCIES IN CHINA OF FOREIGN LAW OFFICES

The State Administration of Taxation

Circular of State Administration of Taxation for Relevant Issue Concerning Purchase and Use of Invoices by Agencies in China of Foreign
Law Offices

GuoShuiFa [2000] No.140

August 8, 2000

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

Ministry of Justice recently pointed out that, the business of agencies in China of foreign law offices is different from those of
permanent agencies of other enterprises since the former agencies are allowed to operate to the extent prescribed by State policies
after registration in State Administration for Industry and Commerce. Ministry of Justice also proposed to provide uniform tax invoices
for such agencies on the ground that it is inconvenient for the foreign law offices to conduct normal business due to the same taxation
administration as that of permanent agencies of general foreign enterprises currently. After consideration, we clarify the relevant
issue as follows:

1.

The said agencies are allowed to apply for purchasing and using the general invoices used nationwide so that it is easy for them to
conduct normal business.

2.

The said agencies, which apply for purchasing the invoices, shall establish and perfect their account books and shall account the
income and expenses and cost. All the records shall be correct and complete together with legal vouchers as accounting basis.

3.

The said agencies, which purchase and use the invoice, shall be levied business tax and income tax according to their actual returns
in principle, not according to the income calculated on the expenditure.



 
The State Administration of Taxation
2000-08-08

 







CIRCULAR OF CHINA SECURITIES REGULATORY COMMISSION AND THE MINISTRY OF FINANCE ON ISSUING “MEASURES FOR ADOPTING THE SYSTEM OF TEMPORARY LICENSE TO FOREIGN ACCOUNTING FIRMS FOR ENGAGING IN BUSINESS OF AUDITING FOR FINANCIAL LISTED COMPANIES”

The China Securities Regulatory Commission, the Ministry of Finance

Circular of China Securities Regulatory Commission and the Ministry of Finance on Issuing “Measures for Adopting the System of Temporary
License to Foreign Accounting Firms for Engaging in Business of Auditing for Financial Listed Companies”

January 12, 2001

Every relevant accounting firms:

With a view to fully learning from international standards, making more fair and reliable the auditing results of listed companies
of banking, securities and insurance industries, ensuring the quality of information disclosure, protecting the legitimate rights
and interests of investors, and procuring an adequate and reliable basis for supervision of companies of this kind after listed,
“Measures for Adopting the System of Temporary License to Foreign Accounting Firms for Engaging in Business of Auditing for Financial
Listed Companies” formulated jointly by China Securities Regulatory Commission and the Ministry of Finance is hereby issued for your
implementation.

Attachment:Measures for Adopting the System of Temporary License to Foreign Accounting Firms for Engaging in Business of Auditing for Financial
Listed Companies

Article 1

With a view to fully learning from international standards, making more fair and reliable the auditing results of listed companies
of banking, securities and insurance industries, ensuring the quality of information disclosure, protecting the legitimate rights
and interests of investors and procuring an adequate and reliable basis for supervision of companies of this kind after listed, these
Measures have been formulated in accordance with “Securities Law”, “Registered Accountant Law of People’s Republic of China” and
No.1,3 and 5 of “Rules for Information Compilation and Disclosure by Companies Publicly Issuing Securities” by China Securities Regulatory
Commission (hereinafter referred to as CSRC).

Article 2

Listed companies of banking, securities and insurance industries shall retain simultaneously one domestic and another foreign accounting
firms to separately render service of accounting statement auditing. CSRC and the Ministry of Finance shall adopt the system of temporary
license to accounting firms registered outside china (hereinafter referred to as foreign accounting firms) for engaging in business
of auditing for listed companies of banking, securities and insurance industries. To apply for temporary license, a foreign accounting
firm shall submit their application to CSRC and the Ministry of Finance, and may perform business only upon approval by the two said
departments.

Article 3

The temporary license for business relating to banking, securities and insurance companies shall be valid for one year.

Article 4

Before arranging business with their clients, foreign accounting firms shall submit relevant documents to CSRC and the Ministry of
Finance, which shall issue a temporary license to those who are considered qualified after being examined. Those who are not considered
qualified after being examined shall be ordered to cease their business arrangement by being given a notice.

Article 5

Foreign accounting firms applying for temporary license for business relating to banking, securities and insurance companies shall
meet the following requirements:

(1)

having auditing experience in relevant industries (from outside China);

(2)

being an international accounting firm;

(3)

being familiar with relevant industries in China.

Article 6

Foreign accounting firms applying for temporary license shall submit the following documents:

(1)

a written application for temporary license for business relating to banking, securities and insurance companies;

(2)

specifications of relevant business;

(3)

basic situation of the firm outside China;

(4)

resumes of partner(s) and senior manager(s) relating to business to be performed in China.

(5)

other documents required by CSRC and the Ministry of Finance. All documents above shall be in Chinese.

Article 7

CSRC and the Ministry of Finance may make spot-checks on the quality of service performed in China by foreign accounting firms applying
temporary license. Those whose business performance fails to meet the quality requirements by CSRC shall cease their business, and
no application from them for temporary license is to be accepted.

Article 8

Where any foreign accounting firm performs business relating to listed companies of banking, securities or insurance industry without
temporary license, CSRC and the Ministry of Finance shall order them to cease their business, confiscate their earnings and shall
not accept their application for temporary license.

Article 9

Where any foreign accounting firm obtains temporary license by fraud or other illicit means, the temporary license shall be revoked,
illegal earnings be confiscated and business be stopped with no application from them for temporary license being accepted and all
those above being announced.

Article 10

Foreign accounting firms who violate Chinese Law in performing business relating to listed companies of banking, security or insurance
industry shall be investigated for their responsibilities according to Chinese law.

Article 11

CSRC and the Ministry of Finance shall be responsible for the interpretation of these Measures.

Article 12

These Measures shall enter into force as of the date of promulgation.



 
The China Securities Regulatory Commission, the Ministry of Finance
2001-01-12

 







GENERAL RULES GOVERNING JOINT INSPECTION OF INCOMING AND OUTGOING SHIPS

RULES GOVERNING OPERATION OF FOREIGN CIVIL AIRCRAFT

Category  CIVIL AVIATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1979-02-23 Effective Date  1979-02-23  


Rules Governing Operation of Foreign Civil Aircraft


Attachment  I
Attachment  II

(Approved by the State Council and promulgated by the General

Administration of Civil Aviation of China on February 23, 1979)

    Article 1  A foreign civil aircraft, when entering or leaving the
territory of the People’s Republic of China, operating or stopping-over
therein, shall comply with these rules.

    Article 2  A foreign civil aircraft is permitted to enter or leave the
territory of the People’s Republic of China or make flights therein only in
accordance with the air transport agreement or other relevant documents
concluded between the Government of the People’s Republic of China and the
Government concerned, or by application through diplomatic channels to the
Government of the People’s Republic of China and after its acceptance has been
confirmed.

    Article 3  A foreign civil aircraft and its crew and passengers, when
making flights or stopping-over in the territory of the People’s Republic
of China, shall comply with the laws of the People’s Republic of China and
its decrees and regulations relating to entry into, exit from and transit
through its territory.

    Article 4  A foreign civil aircraft, when entering or leaving the
territory of the People’s Republic of China or making flights therein, shall
follow the instructions of the air traffic control (ATC) service of the
General Administration of Civil Aviation of China and observe all regulations
applicable to the flights.

    Article 5  A foreign civil aircraft is permitted to operate scheduled
services and additional flights thereto in the territory of the People’s
Republic of China in accordance with the airtransport agreement concluded
between the Government of the People’s Republic of China and the Government
concerned on routes specified in the agreement.    

    A scheduled flight shall be conducted in accordance with a timetable,
which shall first be submitted to the General Administration of Civil Aviation
of China for approval by the airline designated by the Government of the other
party of the agreement.    

    The application for any additional flight shall be filed with the Civil
Aviation Administration of China by the airline designated by the
Government of the other party to the agreement at least five days before the
anticipated flight or within the time limit specified in the agreement. The
flight can be operated only after a permission thereof has been obtained.

    Article 6  All non-scheduled flights other than scheduled flights and
additional flights operated by a foreign civil aircraft can be operated in
the territory of the People’s Republic of China only after a prior application
has been submitted and acceptance thereof has been confirmed.

    The application for any non-scheduled flight shall be filed through
diplomatic channels at least ten days before the flight unless otherwise
specified in the bilateral air agreement.

    Article 7  The application for any non-scheduled flight shall include the
following particulars:

    (1) nationality of registration, owner and operator of the aircraft;

    (2) purpose of flight;

    (3) type, maximum all-up weight and maximum landing weight of the aircraft;

    (4) identification marks (including nationality and registration marks) of
the aircraft;

    (5) call signs of the radiotelephony and radiotelegraphy of the aircraft;

    (6) frequency range to be used by the radio station on the aircraft;

    (7) name, position and nationality of each crew member; number of
passengers and weight of cargo on board;

    (8) approved weather minima of the pilot-in-command;

    (9) itinerary, date and hours to be flown from the aerodrome of initial
departure to the aerodrome of destination, and the air route to be flown
within the territory of the People’s Republic of China;

    (10) other information.

    Article 8  A foreign civil aircraft operating non-scheduled flights within
the territory of the People’s Republic of China shall be escorted by crew
members (including a navigator and a radio operator) assigned by the General
Administration of Civil Aviation of China to guide the flight aboard the
aircraft unless otherwise stipulated in the clearance.

    Article 9  A foreign civil aircraft operating in the territory of the
People’s Republic of China shall bear its nationality and registration marks.
A foreign civil aircraft without nationality and registration marks shall not
be permitted to make any flight within the territory of the People’s Republic
of China.

    Article 10  A foreign civil aircraft operating in the territory of the
People’s Republic of China shall carry the following documents:

    (1) its certificate of registration;

    (2) its certificate of airworthiness;

    (3) the professional licences or certificates for each member of the crew;

    (4) its journey log book;

    (5) the aircraft radio station licence;

    (6) a general declaration;

    (7) if it carries passengers, a list of their names and places of
embarkation and destination;

    (8) if it carries cargo, a manifest of the cargo.

    Article 11  A foreign civil aircraft shall fly within a specified air
corridor or over a specified entry/exit point when across the national
boundary of the People’s Republic of China. Deviation from the air corridor or
the entry/exit point is prohibited.

    Article 12  Within a time limit of 15-20 minutes before flying across the
boundary of the People’s Republic of China either in entry or exit, the flight
crew of a foreign civil aircraft shall report the following to the relevant
ATC service of the General Administration of Civil Aviation of China:

    – aircraft call sign;

    – estimated time of crossing the national boundary;

    – flight altitude; and
to obtain a clearance for flying across the national boundary in entry or
exit. Without such clearance the aircraft is not permitted to make entry into
or exit from the national boundary.

    Article 13  A foreign civil aircraft, while flying across the border
of the People’s Republic of China or flying over a specified reporting point
in the territory of the People’s Republic of Chin shall report immediately
its position to the relevant ATC service of the General Administration of
Civil Aviation of China. Position report shall contain:

    (1) aircraft call sign;

    (2) position;

    (3) time;

    (4) flight altitude or flight level;

    (5) estimated time of flying over the next position or estimated time of
arrival at the aerodrome of landing;

    (6) other particulars requested by the ATC service or deemed necessary to
report by the air crew.

    Article 14  When a foreign civil aircraft having flown across the national
boundary of the People’s Republic of China either in exit or in entry is
unable to continue its flight due to weather deterioration, malfunction of the
aircraft or any other special reasons, it is permitted to return by the
original route or air corridor. The flight crew shall, in the meantime,
report the following to the relevant ATC service of the General Administration
of Civil Aviation of China:

    – aircraft call sign;

    – reason for forced return;

    – time beginning to return;

    – flight altitude, and

    – aerodrome for intended landing.

    If no instructions have been received within the territory of the People’s
Republic of China from the relevant ATC service of the General Administration
of Civil Aviation of China, the return flight shall generally take a course of
opposite direction at a flight level immediately below the one originally
flown. In case this flight level is below the minimum safe altitude, the
return flight level shall then be immediately above the one originally flown.

    Article 15  No foreign civil aircraft is allowed to fly across the
boundary of the People’s Republi of China or to operate therein without having
established radio contact with the relevant ATC service of the General
Administration of Civil Aviation of China.

    Article 16  When a foreign civil aircraft making flight within the
territory of the People’s Republic of China interrupts its contact with the
aeronautical radio station of the relevant ATC service of the General
Administration of Civil Aviation of China, its crew shall manage to establish
contact with other aeronautical radio stations or other aircraft in flight to
relay aeronautical information. When such effort is of no avail, the flight
shall be conducted in accordance with the following procedures:

    In visual meteorological conditions, the aircraft shall continue to
maintain its flight in VMC and land at a nearby aerodrome (i.e. the aerodrome
of departure, the intended aerodrome of landing or alternate aerodrome
previously designated by the General Administration of Civil Aviation of
China). The landing should be made in accordanc with procedures laid down in
Attachment I, “Symbols and Signals used as Means of Auxiliary Communications”,
to these Rules.

    In instrument meteorological conditions or when a landing at a nearby
aerodrome cannot be made in VMC, the aircraft shall proceed strictly according
to the current flight plan and fly over the NDB of a designated aerodrome of
landing, commencing descent at the estimated time of arrival specified in the
flight plan. The landing should be made within thirty minutes after ETA in
accordance with the normal instrument approach procedure of the NDB.

    In case of radio failure, if the aircraft transmitter is functioning, the
aircraft shall make blind transmission giving the pilot’s intention of
continued flight and other flight information. Blind transmission shall also
be made at predetermined time intervals or over the predetermined reporting
points. If, however, the aircraft receiver is functioning, the aircraft shall
keep a continuous listening watch for the instructions from the aeronautical
ground radio station.

    Article 17  The visual meteorological conditions for an aircraft operating
within the territory of the People’s Republic of China are as follows:

    – visibility: not less than 8km;

    – vertical distance of aircraft from the cloud base: not less than 300m;

    – horizontal distance of aircraft from cloud: not less than l.500m.

    Article 18  The term “safe altitude” refers to the minimum flight altitude
which ensures an aircraft to avoid collision with surface obstacles.

    Over mountainous region and plateau area the safe altitude along an air
route within the territory of the People’s Republic of China is 600m above the
highest elevation within 25km on each side of the centre line of the air
route; over areas other than mountainous region and plateau area, the safe
altitude is 400m above the highest elevation within 25km on each side of the
centre line of the air route.

    Article 19  A foreign civil aircraft making flight within the territory of
the People’s Republic of China shall fly at a specified level or altitude.

    The flight levels within the territory of the People’s Republic of China
are as follows:

    0 through 179 degrees(T): from 600m to 6,000m, flight levels are at
intervals of 600m;

    above 6,000m, they are at intervals of 2,000m.

    180 through 359 degrees(T): from 900m to 5,700m, flight levels are at
intervals of 600m;

    above 7,000m, flight levels are at intervals of 2,000m.

    Flight levels are calculated on a specific pressure datum of 76Omm height
of mercury and courses are measured from true north at the initial and turning
point of an air route.

    Article 20  The flight altitude or flight level for each flight conducted
by a foreign civil aircraft within the territory of the People’s Republic of
China is assigned by the relevant ATC service of the General Administration
of Civil Aviation of China.

    When a foreign civil aircraft finds it necessary to change its altitude or
flight level during flight, no matter what weather conditions prevails, a
clearance must be obtained beforehand from the relevant ATC service of the
General Administration of Civil Aviation of China.

    Article 21  A foreign civil aircraft making flight within the territory of
the People’s Republic of China shall follow a specified air route, deviation
from which is prohibited.

    The maximum width of an air route within the territory of the People’s
Republic of China is 20km and the minimum width is 8km.

    Artilce 22  If the pilot-in-command of a foreign civil aircraft flying
within the territory of the People’s Republic of China is unable to determine
his position, he shall report to the relevant ATC service of the General
Administration of Civil Aviation of China immediately.  

    When a foreign civil aircraft in flight deviates from a specified air
route, the relevant ATC service of the General Administration of Civil
Aviation of China shall do its possible to assist the aircraft in recovering
its original route. However, the ATC service of the General Administration of
Civil Aviation of China shall not be held responsible for whatever
consequences resulted therefrom.                                              

    Article 23  The following rules shall apply when aircraft approaching each
other in visual flight:

    (1) when two aircraft are approaching head-on at the same level, each
shall alter its course to the right, maintaining a separation between them of
500 metres or more;

    (2) when two aircraft are converging at the same altitude, the pilot who
sees from the cockpit the other aircraft on his left shall descend, while the
pilot who sees the other aircraft on his right shall ascend;

    (3) overtaking of aircraft at the same level shall be made at a lateral
distance of 500 metres or more to the right side of the aircraft being
overtaken;

    (4) individual aircraft shall take the initiative to give way to aircraft
in formation or aircraft engaged in towing objects; power-driven aircraft
shall take the initiative to give way to non-power-driven aircraft.

    Article 24  A foreign civil aircraft, when flying within the territory of
the People’s Republic of China, shall maintain continuous guard for timely
radio contact with the relevant ATC service of the General Administration of
Civil Aviation of China in conformity with mode of transmission and
frequencies prescribed by the General Administration of Civil Aviation of
China.

    For air/ground radio communications, the following rules shall be observed:

    (1) ln radiotelegraphy the international Q code is to be used; in
radiotelephony, the Chinese language or any other language agreed upon by the
Government of the People’s Republic of China is to be used.

    (2) For geographic localities, Chinese names in romanization, location
indicators, location designators, identifications of radio navigation aids or
geographical coordinates shall be used.

    (3) Units of measurement: Distance in metres or kilometres: flight
altitude, elevation and height in metres; horizontal speed and wind speed in
air in kilometres per hour; vertical speed and surface wind speed in metres
per second; wind direction in degrees (true north as zero degree); visibility
in kilometres or metres; altimeter setting in millimeters of mercury or
millibars; temperature in degrees (C); weight in tons or kilograms; time in
hours and minutes (GMT on 24-hour basis beginning from zero hours).

    Article 25  A foreign civil aircraft flying within the territory of the
People’s Republic of China shall land at an aerodrome designated by the
General Administration of Civil Aviation of China. Prior to landing, a
clearance shall be obtained from the ATC service at the designated aerodrome;
after landing, no take-off is allowed without a clearance.

    The pilot-in-command of an aircraft on non-scheduled flight shall, after
landing, report to the ATC service at the aerodrome about the flight
conditions within the territory of the People’s Republic of China and shall
file an application for the ensuing flight.

    Article 26  The air crew of a foreign civil aircraft shall have completed
their preflight preparation before departure. The pilot-in-command or his
representative shall submit a flight plan to the relevant ATC service of the
General Administration of Civil Aviation of China at least one hour before
the estimated time of departure.

    When the departure of an aircraft is delayed more than 30 minutes, the
original flight plan shall be revised, or a new one be submitted.

    Article 27  The aerodrome traffic pattern within the territory of the
People’s Republic of China is usually of left hand type with a height normally
between 300 and 500 metres. No aircraft is allowed to overtake another
aircraft of the same type or of similar speed when making flight in the
traffic pattern. A longitudinal separation of 2,000 metres or more shall be
maintained and the effect of wake turbulence shall also be taken into
consideration. Only with ATC permission is an aircraft of higher speed allowed
to overtake the slower one on or before down wind leg, and overtaking shall be
made on the outer side of the pattern with a lateral separation of not less
than 500 metres. Except in the case of emergency landing, no aircraft is
allowed to overtake any other aircraft on the inner side of the traffic
pattern.

    Aircraft entering the traffic pattern shall obtain prior clearance from
the ATC service at the aerodrome, and entry is to be made along the direction
of the pattern and no crosswise interception is allowed.

    Article 28  When a foreign civil aircraft is making a flight at a
terminal control area under visual meteorological conditions, the air crew
shall keep a vigilant watch against possible collision with other aircraft.
The pilot-in-command shall be held responsible if any collision occurs.

    Article 29  When a foreign civil aircraft is taking off from or
landing at an aerodrome within the territory of the People’s Republic of
China, the following altimeter setting procedures are to be observed:

    (1) At an aerodrome where a transition altitude and transition level are
stipulated:

    Before take-off: The aircraft altimeter shall be set to the atmospheric
pressure at the aerodrome elevation; upon reaching the transition altitude the
altimeter shall be set to 760mm.

    Prior to landing: When an aircraft is passing through a transition level,
the altimeter shall be set to the atmospheric pressure at the aerodrome
elevation.

    (2) At an aerodrome where no transition altitude or transition level is
stipulated:

    Before take-off: The aircraft altimeter shall be set to the atmospheric
pressure at the aerodrome elevation; after take-off when the aircraft has
reached in altitude of 600 metres, the altimeter shall be set to 760mm.

    Before landing: When an aircraft has entered the boundary of a terminal
control area or so instructed by ATC controller, the altimeter shall be set
to the atmospheric pressure at the aerodrome elevation.

    (3) At an aerodrome of high elevation:

    Before take-off: When the aircraft altimeter cannot be set to the
atmospheric pressure at the aerodrome elevation, it will then be set to 760mm,
with the indicated altitude interpreted as zero altitude.

    Before landing: When the aircraft altimeter cannot be set to the
atmospheric pressure at the aerodrome elevation, landing is to be made with
the assumed zero altitude notified by ATC controller.

    Article 30  When taking off from or landing at an aerodrome within the
territory of the People’s Republic of China, a foreign civil aircraft shall
observe the aerodrome weather minima specified by the General Administration
of Civil Aviation of China. No take-off or landing is allowed when the weather
conditions are below the minima. If in the case of emergency, the
pilot-in-command decides to land below the minima, he shall be held fully
responsible for his decision and all the consequences arising therefrom.

    When the weather is extremely poor, the ATC service at the aerodrome shall
close the aerodrome, prohibiting all take-offs and landings.

    Article 31  In case of hazardous weather that will endanger the aircraft
en route or in the vicinity of an aerodrome of departure or landing within the
territory of the People’s Republic of China, the relevant ATC service of the
General Administration of Civil Aviation of China may advise the
pilot-in-command of the aircraft in the affected area to postpone the
take-off, turn back or make a diversion to an alternate as appropriate. The
pilot-in-command, however, has the right to make a final decision for which he
is likewise to be responsible.

    Article 32  When a foreign civil aircraft making a flight within the
territory of the People’s Republic of China is found to be in serious
mechanical or other troubles which may endanger its flight safety, the
relevant ATC service of the General Administration of Civil Aviation of China
has the right to terminate its flight and shall in the meantime inform the
State of registry of the aircraft, which shall decide if the flight is to be
continued.

    Article 33  A foreign civil aircraft flying within the territory of the
People’s Republic of China shall not be, in any circumstances, allowed to
enter the prohibited airspace delineated by the People’s Republic of China.
The General Administration of Civil Aviation of China shall take serious
measures vis-a-vis the pilot-in-command of the aircraft entering such
prohibited airspace and shall not be responsible for any consequences that
may produce to such aircraft.

    Article 34  When the General Administration of Civil Aviation of China
declares, under special circumstances, the closure of a specific air route or
an aerodrome, the pilot-in-command of the foreign civil aircraft concerned
shall amend his flight plan according to the NOTAM(s) issued by the General
Administration of Civil Aviation of China or the instructions from ATC service
concerned.

    Article 35  With the exception of parachuting in emergency, no foreign
civil aircraft when flying within the territory of the People’s Republic of
China shall be allowed to jettison articles, spray liquids or make use of
parachutes unless with the permission from the relevant ATC service of the
General Administration of Civil Aviation of China and under prescribed
conditions.

    Article 36  When a foreign civil aircraft flying within the territory of
the People’s Republic of China finds itself in emergency where the safety of
crew and passengers are endangered and immediate assistance is required, the
crew of the aircraft shall immediately send a distress signal to ATC service
of the General Administration of Civil Aviation of China so that search and
rescue service can be provided.

    The distress signal by radiotelephony is “MAYDAY” and by radiotelegraphy,
“SOS”. As soon as a distress signal is sent, the crew of the aircraft in
distress shall do their possible to report the call sign of the aircraft,
nature of distress, present position, altitude and heading of the aircraft,
as well as the intention of the pilot-in-command by emergency communication.
Emergency communication shall be effected on frequencies currently used by
local air/ground radio communications systems. If necessary, the frequencies
can be switched over to the emergency frequencies for further contact in
accordance with the instructions of the relevant ATC service of the General
Administration of Civil Aviation of China. Emergency frequencies are given in
the AIP.

    Article 37  When the safety of a foreign civil aircraft and/or its
occupants on board are endangered in an emergency which does not warrant
immediate assistance, the air crew of the foreign civil aircraft flying within
the territory of the People’s Republic of China shall immediately send an
emergency signal to the relevant ATC service of the General Administration of
Civil Aviation of China. The emergency signal used in radiotelephony is”PAN”
and “XXX” in radiotelegraphy. As soon as emergency signal is sent, the crew of
the aircraft shall also report by radio the call sign of the aircraft, nature
of emergency, its present position, altitude and heading of the aircraft as
well as the intention of the pilot-in-command. Emergency communication shall
be effected on the designated air/ground radio frequency, which can be
switched over to emergency frequencies whenever necessary for further contact.
Emergency frequencies are given in AIP.

    Article 38  A foreign civil aircraft entering or leaving the territory of
the People’s Republic of China shall land at or take off from a designated
airport with Customs, quarantine and frontier inspection offices.

    Article 39  A foreign civil aircraft within the territory of the People’s
Republic of China (including all its necessary documents, crew members,
passengers and articles carried aboard) is subject to inspection by the
relevant agencies of the People’s Republic of China.

    Article 40  A foreign civil aircraft within the territory of the People’s
Republic of China is prohibited from carrying explosives, inflamables,
firearms, ammunition and other prohibited articles as prescribed by the
Government of the People’s Republic of China.

    Article 41  When any crew member or passenger on board the foreign
civil aircraft suffers from an acute disease during flight, the
pilot-in-command shall immediately report to the relevant ATC service for
arrangement of necessary assistance and medical service for the patient upon
landing.

    Article 42  If a foreign civil aircraft flying within the territory of the
People’s Republic of China is found in violation of these Rules, the air
defence aircraft of the Chinese People’s Liberation Army on duty may force the
aircraft to land at a designated aerodrome. Non-compliance with the
instructions of the relevant ATC service of the General Administration of
Civil Aviation of China shall constitute a violation of these Rules.    

    Signals used by the air defence aircraft on duty intercepting a foreign
civil aircraft which is found in violation of these Rules and the signals
used by the intercepted aircraft will be those as prescribed in Attachment II.

    A foreign civil aircraft which is forced to make a landing may continue
its flight only after a clearance has been obtained from the General
Administration of Civil Aviation of China.

    Article 43  If the crew members or passengers of a foreign civil aircraft
entering or leaving the territory

INTERIM REGULATIONS ON FOREIGN EXCHANGE CONTROL

Category  BANKING Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1980-12-18 Effective Date  1981-03-01 Date of Invalidation  1996-04-01


Interim Regulations on Foreign Exchange Control of the People’s Republic of China

Chapter I  General Provisions
Chapter II  Foreign Exchange Control Relating to State Units and
Chapter III Foreign Exchange Control Relating to Individuals
Chapter IV  Foreign Exchange Control Relating to Foreign Resident
Chapter V Foreign Exchange Control Relating to Enterprises with Overseas
Chapter VI Control Relating to Carrying Foreign Exchange, Precious Metals
Chapter VII  Supplementary Provisions

(Promulgated by the State Council on December 18, 1980)(Editor’s Note:

These Regulations have been annulled by Regulations of the People’s Republic
of China on Foreign Exchange Control promulgated on January 29, 1996 and
effective as of April 1, 1996)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purpose of
strengthening foreign exchange control, increasing national foreign
exchange income and economizing on foreign exchange expenditure so as to
facilitate the development of national economy and safeguard the rights and
interest of the country.

    All foreign exchange income and expenditure, the issuance and circulation
of all kinds of payment instrument in foreign currency, and the carrying of
foreign exchange, precious metals and payment instruments in foreign currency
into and out of the territory of the People’s Republic of China shall be
governed by these regulations.

    Article 2  Foreign exchange mentioned in these Regulations refers to:

    a. foreign currencies,including banknotes, coins, etc.

    b. securities in foreign currency, including government bonds, treasury
bills, corporate bonds and debentures, stocks, and interest coupons, etc.

    c. instruments payable in foreign currency, including bills, drafts,
cheques, bank deposit certificates, postal savings certificates, etc.

    d. other foreign exchange funds.

    Article 3  The People’s Republic of China pursues the policy of
centralized control and unified management of foreign exchange by the State.

    The administrative agency of the People’s Republic of China in change of
foreign exchange control is the State Administration of Foreign Exchange
Council (SAFEC) and its branch offices.

    The specialized bank of the People’s Republic of China engaged in foreign
exchange business is the Bank of China. No other financial institution shall
engage in foreign exchange business, unless approved by the SAFEC.

    Article 4  All Chinese and foreign organizations or individuals within the
territory of the People’s Republic of China must, unless otherwise stipulated
by law, decrees and these Regulations, sell their foreign exchange to the Bank
of China. Any foreign exchange they required is to be sold to them by the Bank
of China in accordance with the plans approved by the State or with relevant
provisions.

    The circulation, use and mortgage of foreign currency, the unauthorized
sales and purchases of foreign exchange, and the unlawful procurement of
foreign exchange or evasion of foreign exchange control by whatever means are
prohibited within the territory of the People’s Republic of China.
Chapter II  Foreign Exchange Control Relating to State Units and
Collective Economic Organizations

    Article 5  All the foreign exchange incomes and expenditures of State
organs, units of the armed forces, nongovernmental bodies, schools, State
enterprises, institutions and urban and rural collective economic
organizations within China’s territory (hereinafter referred to as
organizations within territory) are all subject to planned control.

    Organizations within territory are permitted to hold their retained
foreign exchange in accordance with the relevant provisions.

    Article 6  Unless approved by the SAFEC or its branch offices,
organizations within territory shall not possess foreign exchange; deposit
foreign exchange abroad; offset foreign exchange expenditure against foreign
exchange income; or use the foreign exchange belonging to State organs
stationed abroad or enterprises and institutions established in foreign
countries or in the Hong Kong and Macao regions by the State, by way of
borrowing or acquisition.

    Article 7  Unless approved by the State Council, organizations within
territory shall not issue securities with foreign exchange value inside or
outside China.

    Article 8  With regard to loans to be accepted by organizations within
territory from banks or enterprises in foreign countries or in the Hong Kong
and Macao regions, the relevant competent departments under the State Council
or the relevant people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government shall consolidate and
draw up overall annual plans for such loans which must be submitted to the
SAFEC and the Foreign Investment Control Commission for examination and
transmission to the State Council for approval.

    The measures for examining and approving such loans shall be prescribed
separately.

    Article 9  Any foreign exchange held by organizations within territory,
including their retained foreign exchange, non-trade foreign exchange and
foreign exchange under compensatory trade received in advance and reserved for
later payments, funds borrowed in convertible foreign currencies and other
foreign exchange held with the approval of the SAFEC or its branch offices
must be placed in foreign currency deposit accounts or foreign currency quota
accounts to be opened with the Bank of China, and must be used within the
prescribed scope and be subject to the supervision of the Bank of China.

    Article 10  When organizations within territory import or export goods,
the banks handling the transactions shall check their foreign exchange
receipts and payments either against the import or export licenses duly
verified by the Customs or against the Customs declaration forms for imports
or exports.

    Article 11  State organs stationed abroad must use foreign exchange
according to the plan approved by the State.

    The profits derived from their business operations by enterprises and
institutions established in foreign countries or in the Hong Kong and Macao
regions, except for the portion kept there as working funds according to the
plan approved by the State, must be transferred back on schedule and be sold
to the Bank of China.

    No organization stationed abroad is permitted to keep foreign exchange
for organizations within territory without authorization.

    Article 12  Delegations and working groups sent temporarily to foreign
countries or to the Hong Kong and Macao regions must use foreign exchange
according to their respective specific plans, and must, upon completion of
their missions and return, promptly transfer back to China their surplus
foreign exchange to be checked by and sold to the Bank of China.

    Foreign exchange earned in their various business activities by the
delegations and working groups mentioned in the preceding paragraph and by
members thereof, must be promptly transferred back to China and must not be
kept abroad without the approval of the SAFEC or its branch offices.
Chapter III Foreign Exchange Control Relating to Individuals

    Article 13  Foreign exchange remitted from foreign countries or from the
Hong Kong and Macao regions to Chinese, foreign nationals and stateless
persons residing in China must be sold to the Bank of China, except the
portion retained as permitted by the State.

    Article 14  Chinese, foreign nationals and stateless persons residing in
China shall be permitted to keep in their own possession foreign exchange
already in China.

    The foreign exchange mentioned in the preceding paragraph shall not,
without authorization, be carried or sent out of China either by owners or
by others or by post.

    If the owners need to sell the foreign exchange, they must sell it to the
Bank of China and are permitted to retain a portion of the foreign exchange
according to the percentage prescribed by the State.

    Article 15  When the foreign exchange that has been kept in foreign
countries or in the Hong Kong and Macao regions by Chinese residing in China
prior to the founding of the People’s Republic of China, by overseas Chinese
prior to their returning to and settling down in China, or by Hong Kong and
Macao compatriots prior to their returning to and settling down in their
native places, is transferred to China, the owners shall be permitted to
retain a portion of the foreign exchange according to the percentage
prescribed by the State.

    Article 16  When the foreign exchange belonging personally to individuals
sent to work or study in foreign countries or in the Hong Kong and Macao
regions is remitted or brought back to China, the owners, upon the completion
of their missions and return, shall be permitted to retain the entire amount
of the foreign exchange.

    Article 17  The percentages of foreign exchange retention permitted under
Articles 13, 14, and 15 of these Regulations shall be prescribed separately.

    Foreign exchange retained by individuals as permitted under Articles 13,
14,15, and 16 of these Regulations must be deposited with the Bank of China.
These foreign exchange deposits may be sold to the Bank of China or remitted
out of China through the Bank of China, or taken out of China against
certification by the Bank of China. It is however not permitted, without
authorization, to carry or send deposit certificates out of China either by
holders or by others or by post.

    Article 18  The foreign exchange remitted or brought into China from
foreign countries or from the Hong Kong and Macao regions by foreign nationals
coming to China, by overseas Chinese and Hong Kong and Macao compatriots
returning for a short stay, by foreign experts, technicians, staff members and
workers engaged to work in organizations within China, and by foreign students
and trainees, may be kept in their own possession, or sold to or deposited
with the Bank of China, or remitted or taken out of China.

    Article 19  Chinese, foreign nationals and stateless persons residing
in China may apply to the local branch offices of the SAFEC for the purchase
of foreign exchange to be remitted or taken out of China. Upon approval of
such applications, the required foreign exchange shall be sold to the
applicants by the Bank of China.

    When foreign experts, technicians, staff members and workers engaged to
work in organizations within territory are to remit or take out of China their
foreign exchange, the Bank of China shall handle the matter in accordance with
the stipulations as provided in the relevant contracts or agreements.
Chapter IV  Foreign Exchange Control Relating to Foreign Resident
Representative Offices in China and Their Personnel

    Article 20  Foreign exchange remitted or brought into China from foreign
countries or from the Hong Kong and Macao regions by foreign diplomatic
missions, consular posts, commercial offices, offices of international
organization and nongovernmental bodies resident office in China, foreign
diplomatic and consular officers as well as other resident staff members of
the aforesaid missions, posts and offices, may be kept in their own
possession, or sold to or deposited with the Bank of China, or remitted or
taken out of China.

    Article 21  The conversion into foreign currency, if required, of visa
and certification fees received in Renminbi from Chinese citizens by foreign
diplomatic missions and consular posts in China, is subject to approval by
the SAFEC or its branch offices.
Chapter V Foreign Exchange Control Relating to Enterprises with Overseas
Chinese Capital, Foreign-Capital Enterprises, and Chinese-Foreign Equity
Joint Ventures and Their Personnel

    Article 22  All foreign exchange receipts of enterprises with overseas
Chinese capital, foreign-capital enterprises and Chinese-foreign equity joint
ventures must be deposited with the Bank of China, and all their foreign
exchange disbursements must be effected from their foreign exchange deposit
accounts.

    The enterprises mentioned in the preceding paragraph must periodically
submit their statements of foreign exchange business to the SAFEC or its
branch offices, all of which are empowered to check on the movements of the
foreign exchange receipts and payments of these enterprises.

    Article 23  Except where otherwise approved by the SAFEC or its branch
offices, Renminbi shall in all cases be used in the settlement of accounts
between enterprises with overseas Chinese capital, foreign-capital
enterprises, Chinese-foreign equity joint ventures on the one hand and other
enterprises or individuals residing in the People’s Republic of China on the
other hand.

    Article 24  Enterprises with overseas Chinese capital, foreign-capital
enterprises and foreign joint venturers in Chinese-foreign equity joint
ventures may apply to the Bank of China for remitting abroad their net profits
as well as other legitimate earnings after taxation according to law, by
debiting the foreign exchange deposit accounts of the enterprises concerned.

    Where the enterprises and foreign joint venturers mentioned in the
preceding paragraph are to transfer foreign exchange capital abroad, they
shall apply to the SAFEC or its branch offices for the transfer by debiting
the foreign exchange deposit accounts of the enterprises concerned.

    Article 25  An amount not exceeding 50% of their after-tax legitimate net
earnings from wages, etc. may be remitted or taken out of China in foreign
currency by staff members and workers of foreign nationality and those from
the Hong Kong and Macao regions employed by enterprises with overseas Chinese
capital, foreign-capital enterprises and Chinese-foreign equity joint ventures.

    Article 26  Enterprises with overseas Chinese capital, foreign-capital
enterprises and Chinese-foreign equity joint ventures which wind up operations
in accordance with legal procedure, shall be responsible for the liquidation,
within the scheduled period, of their outstanding liabilities and taxes due in
China under the joint supervision of the relevant competent departments and
the SAFEC or its branch offices.
Chapter VI Control Relating to Carrying Foreign Exchange, Precious Metals
and Payment Instruments in Foreign Currency into and out of China

    Article 27  No restriction as to the amount is imposed on the carrying
into China of foreign exchange, precious metals and objects made from them,
but declaration to the Customs is required at the place of entry.

    To carry out of China foreign exchange or the foreign exchange previously
brought in shall be permitted by the Customs against certification by the
Bank of China or against the original declaration form filled out at the time
of entry.

    To carry out of China precious metals and objects made from them or the
precious metals and objects made from them previously brought in shall be
permitted by the Customs according to the specific circumstances as prescribed
by State regulations or against the original declaration form filled out at
the time of entry.

    Article 28  To bring into China Renminbi traveller’s cheques, traveller’s
letters of credit and other Renminbi payment instruments convertible into
foreign currency shall be permitted by the Customs against the declaration
form filled out at the Customs; and to take the same out of China shall be
permitted by the Customs against certification by the Bank of China or against
the original declaration form filled out at the time of entry.

    Article 29  Unless otherwise approved by the SAFEC or its branch offices,
it is not permitted to carry or send out of China by holders or by others or
by post such certificates and deeds held by Chinese residing in China as
bonds, debentures, share certificates issued abroad; post_title deeds for real
estate abroad; other documents or deeds involving the disposal of creditor’s
right, inheritance, real estate or other foreign exchange assets abroad.

    Article 30  The carrying or sending out of China of Renminbi instruments,
such as Renminbi cheques, drafts, passbooks and deposit certificates, held by
Chinese or foreign nationals or stateless persons residing in China, is not
permitted, either by holders or by others or by post.
Chapter VII  Supplementary Provisions

    Article 31  All units and individuals have the right to report any
violation of these Regulations. Rewards shall be given to such units or
individuals according to the merits of the report. Violators shall be
penalized by the SAFEC, its branch offices or by public security organs, or by
administrative departments of industry and commerce, or by the Customs. In
light of the seriousness of the offence, the penalties may take the form of
compulsory exchange of the foreign currency for Renminbi, or fine or
confiscation of the properties or both, or punishment by judicial organs
according to law.

    Article 32  The exchange control measures for special economic zones, for
frontier trade and for personal dealings between inhabitants across the border
shall be formulated, in accordance with these Regulations, by the people’s
governments of the provinces, autonomous regions and municipalities directly
under the Central Government in the light of actual local conditions, be
submitted to the State Council for approval and be enforced thereupon.

    Article 33  Rules for the implementation of these Regulations shall be
formulated by the SAFEC.

    Article 34  These Regulations shall enter into effect on March 1, 1981.






REGULATIONS ON SPECIAL ECONOMIC ZONES IN GUANGDONG PROVINCE

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1980-08-26 Effective Date  1980-08-26  


Regulations on Special Economic Zones in Guangdong Province

Contents
Chapter I  General Provisions
Chapter II  Registration and Operation
Chapter III  Preferential Treatment
Chapter IV  Labour Management
Chapter V  Administrative Organization
Chapter VI  Supplementary Provisions

(Approved for implementation at the 15th Meeting of the Standing

Committee of the Fifth National People’s Congress on August 26, 1980)
Contents

    Chapter I    General Provisions

    Chapter Il   Registration and Operation

    Chapter III  Preferential Treatment

    Chapter IV   Labour Management

    Chapter V    Administrative Organization

    Chapter VI   Supplementary Provisions
Chapter I  General Provisions

    Article 1  In order to develop economic cooperation and technical
exchanges with foreign countries and to promote the socialist modernization
programme, certain areas shall be delineated respectively in the three cities
of Shenzhen, Zhuhai and Shantou in Guangdong Province for the establishment
of special economic zones (hereinafter referred to as “special zones”), The
special zones shall encourage foreign citizens, overseas Chinese, compatriots
from Hongkong and Macao and their companies and enterprises (hereinafter
referred to as” investors”) to open factories and set up enterprises and
other establishments with their own investment or in joint ventures with our
side, and shall protect their assets, the profits due them and their other
lawful rights and interests in accordance with the law.

    Article 2  Enterprises and individuals in the special zones must abide by
the laws, decrees and pertinent provisions of the People’s Republic of China.
Where there are specific provisions in these Regulations, they shall be
observed accordingly.

    Article 3  A Guangdong Provincial Committee for the Administration of
Special Economic Zones shall be set up to exercise unified administration of
the special zones on behalf of the Guangdong Provincial People’s Government.

    Article 4  The special zones shall provide investors with a wide scope of
operation, create favourable operating conditions and guarantee them stable
business sites. Investors may establish, with their own investment or in
joint ventures with our side, all projects that have positive significance
for international economic cooperation and technical exchanges, including
industry, agriculture, animal husbandry, aquaculture, tourism, housing and
construction, and research and manufacture involving high technology, as
well as other
businesses of common interest to investors and to our side.

    Article 5  Land-levelling projects and various public works in the
special zones such as water supply, drainage, power supply, roads, wharves,
communications and warehouses shall be undertaken by the Guangdong Provincial
Committee for the Administration of Special Economic Zones. When necessary,
foreign investment may be used in building these projects.

    Article 6  Each of the special zones shall invite Chinese and foreign
specialists and relevant personages who are enthusiastic about China’s
modernization programme to form an advisory committee that will serve as a
consultative body for that special zone.
Chapter II  Registration and Operation

    Article 7  Investors wishing to open factories or set up various economic
undertakings in the special zones with their own investment shall apply to the
Guangdong Provincial Committee for the Administration of Special Economic
Zones, which shall issue them registration certificates and land use
certificates after examination and approval.

    Article 8  Investors may open accounts and conduct their foreign exchange
transactions with the Bank of China established in the special zones or with
other banks established there with the approval of the Chinese side.

    Investors may take out various kinds of insurance policies at the
People’s insurance Company of China in the special zones or at other
insurance companies established there with the approval of the Chinese side.

    Article 9  Products of the enterprises in the special zones shall be sold
on the international market. If their products are to be sold in the interior
of China, they must have the approval of the Guangdong Provincial Committee
for the Administration of Special Economic Zones and go through the
procedures for paying customs duties.

    Article 10  Investors may operate their enterprises independently in the
special zones and employ foreign personnel for technical and managerial work.

    Article 11  If an enterprise established by an investor in the special
zones wishes to terminate operations before its scheduled expiration, it
shall report the reasons to the Guangdong Provincial Committee for the
Administration of Special Economic Zones, go through termination procedures
and settle claims and debts. After termination of operations, its assets may
be assigned and its funds may be remitted out of China.
Chapter III  Preferential Treatment

    Article 12  Land in the special zones is owned by the People’s Republic of
China. The land to be used by investors shall be provided according to actual
needs, and preferential treatment shall be given with respect to the duration
of its use, the amount of the use fee and the method of payment according to
the different types of business and uses. Provisions for specific measures
shall be made separately.

    Article 13  The machinery and equipment, spare parts, raw and
semi-processed materials, means of transportation and other capital goods
necessary for production that are imported by enterprises in the special zones
shall be exempted from import duties. The necessary consumer goods may either
be subjected to import duties or allowed a reduction or exemption therefrom,
depending on the specific situation of each case. When the above-mentioned
goods are imported or products of the special zones are exported, a customs
declaration shall be filed.

    Article 14  The enterprise income tax rate in the special zones is 15
percent. Special preferential treatment shall be given to enterprises
established within two years of the promulgation of these Regulatins, to
enterprises with an investment US$ 5 million or more, and to enterprises
involving higher technology or having a longer period of capital turnover.

    Article 15  The lawfuI profit that an investor receives after payment of
the enterprise income tax, and the wages and salaries and other legitimate
earnings that foreign, overseas Chinese and Hongkong and Macao workers and
staff members of an enterprise in the special zones receive after payment of
the individual income tax, may be remitted abroad through the Bank of China
or other banks in the special zones, in accordance with the provisions of the
foreign exchange control measures of the special zones.

    Article 16  An investor that reinvests its share of the profit in the
special zones for a period of five years or longer may apply for a reduction
of or an exemption from income tax on the reinvested portion.

    Article 17  Enterprises in the special zones shall be encouraged to use
machinery and equipment, raw and semi-processed materials and other materials
produced in China, and preferential prices shall be offered on the basis of
China’s current export prices for the same kinds of commodities, using
foreign exchange to settle accounts. These products and materials may be
shipped directly to the special zones with the sales vouchers of the selling
units.

    Article 18  Entry and exit procedures shall be simplified and
conveniences given to the foreign personnel, overseas Chinese and
compatriots from Hongkong and Macao entering and leaving the special zones.
Chapter IV  Labour Management

    Article 19  A labour service company shall be set up in each of the
special zones. Chinese staff members and workers to be employed by
enterprises in the special zones, whether they are recommended by the local
labour service companies or recruited by the investors themselves with the
consent of the Guangdong Provincial Committee for the Administration of
Special Economic Zones, shall all be tested by the enterprises before
employment and labour contracts shall be signed with the staff members
and workers.

    Article 20  The staff members and workers employed by enterprises in the
special zones shall be managed by the enterprises according to their business
requirements and, when necessary, may be dismissed, after going through the
procedures provided in the labour contracts.

    Staff members and workers of the enterprises in the special zones may
submit their resignations to the enterprises in accordance with the
provisions of the labour contracts.

    Article 21  The wage levels, types of wages, award measures and the
labour insurance and various state subsidies for the Chinese staff members
and workers of the enterprises in the special zones shall be included in the
contracts signed by the enterprises with the staff members and workers as
stipulated by the Guangdong Provincial Committee for the Administration of
Special Economic Zones.

    Article 22  Enterprises in the special zones shall adopt the necessary
measures for labour protection to ensure that staff members and workers work
in safe and hygienic conditions.
Chapter V  Administrative Organization

    Article 23  The Guangdong Provincial Committee for the Administration of
Special Economic Zones shall exercise the following functions and powers:

    (1) to draw up development plans for the special zones and organize their
imple-mentation;

    (2) to examine and approve the investment projects of investors in the
special zones;

    (3) to handle registration of industrial and commercial enterprises and
land allotment in the special zones;

    (4) to coordinate working relations among the banking, insurance,
taxation, Customs, frontier inspection, postal and telecommunications and
other organizations in the special zones;

    (5) to provide the staff members andd workers needed by enterprises in
the special zones and protect the legitimate rights and interests of the
staff members and workers;

    (6) to establish educational, cultural, health and various public welfare
institutions in the special zones; and

    (7) to maintain law and order in the special zones and protect, in
accordance with the law, the persons and property in the special zones
against encroachment.

    Article 24  The Shenzhen Special Zone shall be under the direct
management and administration of the Guangdong Provincial Committee for the
Administration of Special Economic Zones. Necessary offices shall be set up
in the Zhuhai and Shantou Special Zones.

    Article 25  A Guangdong Provincial Special Economic Zones Development
Company shall be set up to suit the expanding economic activities in the
special zones. Its scope of business shall include: undertaking to raise
funds and handle trust investment business; operating, or jointing with
investors in operating, relevant enterprises in the special zones; acting
as agent for investors in the special zones in transactions relating to
sales and purchases in trade with the interior; and providing services for
business talks.
Chapter VI  Supplementary Provisions

    Article 26  These Regulations shall go into effect after they have been
adopted by the People’s Congress of Guangdong Province and submitted to and
approved by the Standing Committee of the National People’s Congress of the
People’s Republic of China.?







CIRCULAR OF THE STATE COUNCIL CONCERNING THE APPROVAL AND TRANSMISSION

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1981-12-28 Effective Date  1982-02-01  


Circular of the State Council Concerning the Approval and Transmission

Circular
A REPORT REQUESTING INSTRUCTIONS ON THE IMPOSITION OF EXPORT LICENCE
CATALOGUE OF GOODS AND MATERIALS SUBJECT TO THE EXPORT LICENCE PROCEDURES

of a Report Submitted by the State Import and Export Commission and the
State Planning Commission Requesting Instructions on the Imposition of
Export Licence Procedures for the Export of Some Goods and Materials beyond
the State Plan


(December 28, 1981)

Circular

    The State Council agrees with the “Report Requesting Instructions on the
Imposition of Export Licence Procedures for the Export of Some Goods and
Materials Beyond the State Plan” submitted by the State Import and Export
Commission and the State Planning Commission, and the Report is hereby
transmitted to you; it is required you consider carefully the ways to implement
this Report in accordance with the prescribed categories of goods and
materials.
A REPORT REQUESTING INSTRUCTIONS ON THE IMPOSITION OF EXPORT LICENCE
PROCEDURES FOR THE EXPORT OF SOME GOODS AND MATERIALS BEYOND THE STATE PLAN

     With the further implementation of the policy for the readjustment of the
national economy, and with the structural reform of foreign trade and the
gradual decentralization of power of management, the foreign trade of our
country will have a new development. With a view to meeting the needs of the
development, various localities and departments have established some export
institutions to engage directly in export business. In the course of these
developments, owing to poor communication among different localities and
departments, the State, on the one hand, imports in large quantities some
finished products in short supply at home and other goods and materials that
are of the high energy consumption and are not suitable for export, while some
localities or departments, on the other hand, are organizing the export of the
aforesaid goods and materials beyond the state plan. For the same kind of
commodity, the price is low when it is exported, and the price is high when it
is imported, and consequently, the State suffers losses in terms of foreign
exchange, and is also affected unfavourably with respect to the needs for
construction. If this situation is allowed to continue, the country will suffer
serious losses. We have, therefore, consulted with the relevant departments,
and hereby put forward the following proposals with respect to the export of
the goods and materials that are in short supply in China:

    1. We hereby propose to designate eleven categories of badly-needed goods
and materials, on the export of which, if beyond the state plan, the export
licence procedures shall be imposed (the specific catalogue is attached below
as appendix). The products in short supply as mentioned above are relatively in
short supply, for, in the course of the implementation, circumstances might
change. It is proposed here that the State Import and Export Commission and the
State Planning Commission, while working out the annual plan for the national
economy, and through consultation with the competent authorities concerned, set
about revising, in good time, the aforesaid catalogue in the light of the
supply-and-demand situation.

    2. With respect to export goods and materials subject to the export licence
procedures with the exception of those export commodities that are included in
the State plan, materials imported to execute processing contracts, or
imported by foreign trade departments for processing into finished goods, or
contained in the approved and signed contracts for compensation trade, or
commodities on which agreements have been signed between foreign trade
departments and local units for supporting the production for export, if any
locality or department is to make arrangements, beyond the State plan, for the
export of the said goods and materials, or to organize exchange of categories
and types that are favorable to us, the case shall obtain the consent of the
competent allocating departments, and be submitted to the State Import and
Export Commission and the State Planning Commission for approval.

    3. Customs offices at various localities should improve their control over
the goods and materials that are exported beyond the State plan. In order to
facilitate the administration of the Customs offices over the aforesaid export
goods and materials, all localities and departments that deal in the eleven
categories of export goods and materials stipulated in the said catalogue,
either within or beyond the State plan, shall all apply to the foreign trade
departments for export licences and the Customs offices shall examine the
export according to the licences; otherwise, no clearance shall be given to
these goods and materials.

    4. All the goods and materials listed in the catalogue for export beyond
the State plan, so long as their quality meets the state standards and no
problem arises in transportation, shall be purchased at the prices set by the
state, by the competent allocating departments, or the competent allocating
departments shall assist in locating users for domestic sale.

    If the above proposals are feasible, we request that they be approved and
transmitted to all departments and all provinces, autonomous regions, and
municipalities directly under the Central Government for implementation as of
February 1, 1982.
CATALOGUE OF GOODS AND MATERIALS SUBJECT TO THE EXPORT LICENCE PROCEDURES
FOR THE EXPORT BEYOND THE STATE PLAN

    1. crude oil, heavy oil, refined oil.

    2. coal.

    3. steel products: sheet steel (including zinc-plating steel, tin-plating
steel), strip steel, medium and heavy steel plate (including steel plate for
ship-building), welded pipe (including zinc-plating welded pipe), square
billet.

    4. pig iron, coke, iron alloy, chromium ore.

    5. plate glass.

    6. non-ferrous metals: copper, aluminium, lead, zinc, tin, cobalt, bismuth,
concentrate molybdenum ore and its products, tellurium; copper products,
aluminium products, and lead products placed under the state’s unified
allocation.

    7. timber: log, sawn wood products, plywood.

    8. cement produced by large, medium-sized and small cement mills.

    9. natural rubber.

    10. sodium carbonate, polyethylene, polypropylene, phosphorus ore,
mawsonite, sulphur, benzene anhydride, liquid hydrocarbon.

    11. rice, soybean, corn, sugar, cotton, rosin, tung oil, flue-cured
tobacco.?







RESOLUTION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS PROVIDING AN IMPROVED INTERPRETATION OF THE LAW

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE SEVERE PUNISHMENT OF CRIMINALS WHO SERIOUSLY SABOTAGE THE ECONOMY

Category  CRIMINAL LAW Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  Invalidated
Date of Promulgation  1982-03-08 Effective Date  1982-04-01 Date of Invalidation  1997-10-01


Decision of the Standing Committee of the National People’s Congress Regarding the Severe Punishment of Criminals Who Seriously Sabotage
the Economy


Appendix: Relevant Articles of the Criminal Law

(Adopted at the 22nd Meeting of the Standing Committee of the Fifth

National People’s Congress on March 8, 1982)(Editor’s Note: This Decision
has been invalidated by the Criminal Law of the People’s Republic of China
revised at the Fifth Session of the Eighth National People’s Congress on
March 14, 1997, and effective on October 1, 1997)

    In view of the fact that currently criminal activities in the economic
field, such as smuggling, arbitrage and speculation for exorbitant profits,
theft of public property, theft and sale of precious cultural relics and
extortion and acceptance of bribes are rampant, seriously jeopardizing the
cause of the country’s socialist construction and the interests of the people,
and in order to deal firm blows to such criminal activities and severely
punish the criminals and those state functionaries who have participated in,
shielded or connived at these criminal activities, it is necessary to
appropriately supplement or amend some relevant provisions of the Criminal Law
of the People’s Republic of China. It is hereby decided as follows:

    1. The following supplementations and amendments shall be made with
regard to the relevant provisions of the Criminal Law:

    (1) With respect to the crimes of smuggling, arbitrage and speculation
for exorbitant profits mentioned in Article 118 of the Criminal Law, of theft
mentioned in Article 152, of sale of narcotics mentioned in Article 171, and
of secretly transporting precious cultural relics for export mentioned in
Article 173, penalties are respectively supplemented or revised as fellows:
When the circumstances are especially serious, the offender shall be
sentenced to fixed-term imprisonment of not less than ten years, life
imprisonment or death, and he may in addition be sentenced to confiscation
of property.

    State functionaries who take advantage of their office to commit the
crimes listed in the preceding paragraph, when the circumstances are
especially serious, shall be given a heavier punishment in accordance with
the provisions of the preceding paragraph. State functionaries referred to in
this Decision include personnel working in state organs of power at all
levels, administrative organs at all levels, judicial organs at all levels,
the armed forces, state enterprises and state institutional organizations, and
other personnel of all types who are engaged in public service according to
law.

    (2) With respect to the crime of acceptance of bribes mentioned in
Paragraphs 1 and 2, Article 185 of the Criminal Law, the following revisions
are made: Any state functionary who extorts or accepts bribes shall be
punished as for the crime of embezzlement mentioned in Article 155 of the
Criminal Law; when the circumstances are especially serious, he shall be
sentenced to life imprisonment or death.

    (3) State functionaries, regardless of whether or not they are judicial
functionaries, who take advantage of their office to protect or shelter
criminals as provided in Items (1) and (2) of this Article, concealing and
covering up the facts of their crimes, shall all be punished in accordance
with Article 188 of the Criminal Law for malpractices from selfish motives.

    Relatives of state functionaries, or state functionaries who have already
left office, who commit the above crimes shall be punished in accordance
with Paragraph 2, Article 162 of the Criminal Law for the crime of protecting criminals.

    Whoever destroys criminal evidence or fabricates false evidence in
favour of the above-mentioned criminals shall be punished in accordance
with Article 148 of the Criminal Law for the crime of giving false evidence.

    Whoever carries on obstructive actions, threats or retaliatory attacks
against law enforcement personnel and persons who expose, accuse and give
testimony shall be punished in accordance with Article 157 of the Criminal
Law for the crime of obstructing the administration of public order or
Article 146 for the crime of retaliation or frame-ups.

    Whoever conspires with the criminals listed in Items (1) and (2) of this
Article, before committing the crimes listed in the preceding four paragraphs,
shall be punished as for a joint crime.

    (4) In cases where state functionaries with the responsibility for
investigation do not handle criminals listed in Items (1), (2) and (3) of this
Article according to law: or if they do not perform the investigatory
obligations stipulated by law because they are thwarted; and in cases where
personnel directly in charge who know the circumstances of criminals and
of the facts of crimes, or the personnel with sole knowledge of these
circumstances, do not report the cases according to law and do not give
testimony truthfully, they shall be punished respectively according to the
crimes of dereliction of duty specified in Articles 187, 188 and 190 of the
Criminal Law.

    2. This Decision shall be implemented as of April 1, 1982.

    In cases of crimes committed before the date of implementation of this
Decision, if the offender voluntarily surrenders before May 1 , 1982 or, if
having already been arrested, he truthfully confesses all his crimes before
May 1, 1982, and in addition brings truthful accusations with respect to the
facts of crimes of other criminals, he shall be dealt with in accordance with
the relevant provisions of law before the implementation of this Decision.
In cases where the offender, before May 1, 1982, continues to conceal the
crimes he has committed, refusing to surrender voluntarily, or refuses to
confess all his crimes, and also does not bring accusations with respect to
the crimes of other criminals, he shall be taken as continuing to commit
crimes and shall be dealt with in accordance with this Decision.

    3. This Decision has a major bearing on the interests of the state and
the entire people. From the date of promulgation of this Decision, all state
organs, the armed forces, enterprises, institutional organizations, rural
people’s communes and production brigades, Party organizations, people’s
organizations, schools, newspapers, broadcasting stations and other mass
media units shall have the duty to adopt every effective method to publicize
and explain it repeatedly in a way understandable to the entire force of working personnel, army officers and men, staff and workers,
students and
urban and rural residents, so as to make this Decision known to everyone.
Appendix: Relevant Articles of the Criminal Law

    Article 118  Whoever makes a regular business of smuggling or speculation,
smuggles or speculates in huge amounts or is the ringleader of a
group that smuggles or speculates shall be sentenced to fixed-term
imprisonment of not less than three years and not more than ten years, and may
concurrently be sentenced to confiscation of property.

    Article 152  A habitual thief or habitual swindler or anyone who
steals, swindles or forcibly seizes a huge amount of public or private
property, shall be sentenced to fixed-term imprisonment of not less than five
years and not more than ten years; if the circumstances are especially
serious, he shall be sentenced to fixed-term imprisonment of not less than
ten years or life imprisonment, and may concurrently be sentenced to
confiscation of property.

    Article 171  Whoever manufactures, sells or transports opium, heroin,
morphine or other narcotic drugs shall be sentenced to fixed-term imprisonment
of not more than five years or criminal detention, and may concurrently be
sentenced to a fine.

    Whoever manufactures, sells or transports the narcotic drugs mentioned
in the preceding paragraph continually or in large quantities shall be
sentenced to fixed-term imprisonment of not less than five years, and may
concurrently be sentenced to confiscation on of property.

    Article 173  Whoever, in violation of the laws and regulations on
protection of cultural relics, secretly transports precious cultural relics
for export shall be sentenced to fixed-term imprisonment of not less than
three years and not more than ten years, and may concurrently be sentenced to
a fine; if the circumstances are serious, the offender shall be sentenced to
fixed-term imprisonment of not less than ten years or life imprisonment,
and may concurrently be sentenced to confiscation of property.

    Article 185  Any state functionary who takes advantage of his office
to accept bribes shall be sentenced to fixed-term imprisonment of not more
than five years or criminal detention. The funds or articles that he received
as bribes shall be confiscated, and public funds or articles shall be
recovered.

    Whoever commits the crime mentioned in the preceding paragraph and
causes the interests of the state or citizens to suffer serious losses shall
be sentenced to fixed-term imprisonment of not less than five years.

    Whoever offers or introduces a bribe to a state functionary shall be
sentenced to fixed-term imprisonment of not more than three years or
criminal detention.

    Article 155  Any state functionary who takes advantage of his office
to embezzle public property shall be sentenced to fixed-term imprisonment
of not more than five years or criminal detention; if the amount involved
is huge and the circumstances are serious, he shall be sentenced to fixed-
term imprisonment of not less than five years; if the circumstances are
especially serious, he shall be sentenced to life imprisonment or death.

    For the crime mentioned in the preceding paragraph, the offender shall
be sentenced concurrently to confiscation of property or ordered to make
restitution or compensation.

    If any person entrusted by state organs, enterprises, institutions or
people’s organizations to perform public duties commits the crime mentioned
in the first paragraph of this Article, he shall be punished in accordance
with the provisions of the two preceding paragraphs.

    Article 188  Any judicial functionary who engages in malpractices for
the benefit of his friends and subjects to prosecution a person he clearly
knows to be innocent and intentionally protects from prosecution a person
he clearly knows to be guilty, or intentionally twists the law, confounding
right and wrong, when rendering judgments or orders, shall be sentenced to
fixed-term imprisonment of not more than five years, criminal detention or
deprivation of political rights; if the circumstances are particularly
serious, he shall be sentenced to fixed-term imprisonment of not less than
five years.

    Article 162  Whoever harbours counterrevolutionaries or gives false
evidence to protect them shall be sentenced to fixed-term imprisonment of not more than three years, criminal detention or public
surveillance; if the
circumstances are serious, the offender shall be sentenced to fixed-term
imprisonment of not less than three years and not more than ten years.

    Whoever harbours other criminals or gives false evidence to protect
them shall be sentenced to fixed-term imprisonment of not more than two
years, criminal detention or public surveillance; if the circumstances are
serious, the offended shall be sentenced to fixed-term imprisonment of not
less than two years and not more than seven years.

    Conspirators to a crime mentioned in the two preceding paragraphs
shall be punished as for a joint crime.

    Article 148  If, during an investigation or trial, any witness, expert
witness, recorder or interpreter intentionally gives false evidence or makes
a false expert evaluation, record or translation concerning circumstances
that bear an important relation to a case, in order to frame another person
or conceal criminal evidence, shall be sentenced to fixed-term imprisonment
of not more than two years or criminal detention; if the circumstances are
serious, he shall be sentenced to fixed-term imprisonment of not less than
two years and not more than seven years.

    Article l57  Whoever by means of force or threat obstructs a state
functionary from carrying out his functions according to law or refuses to
carry out legally effective judgments or orders of people’s courts shall be
sentenced to fixed-term imprisonment of not more than three years, criminal
detention, a fine or deprivation of political rights.

    Article l46  Any state functionary who abuses his power, using his
public office for private gain, in order to retaliate against or frame
complainants, petitioners or critics shall be sentenced to fixed-term
imprisonment of not more than two years or criminal detention; if the
circumstances are serious, he shall be sentenced to fixed-term imprisonment
of not less than two years and not more than seven years.

    Article 187  Any state functionary who, because of neglect of duty,
causes public property or the interests of the state and the people to suffer
heavy losses shall be sentenced to fixed-term imprisonment of not more than
five years or criminal detention.

    Article 190  Any judicial functionary who releases a criminal without
authorization shall be sentenced to fixed-term imprisonment of not more
than five years or criminal detention; if the circumstances are serious, he
shall be sentenced to fixed-term imprisonment of not less than five years
and not more than ten years.






REGULATIONS ON REWARDS FOR RATIONALIZATION PROPOSALS AND TECHNOLOGICAL IMPROVEMENTS