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PROVISIONS ON THE ADMINISTRATION OF MARITIME INTERNATIONAL CONTAINER TRANSPORT

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  With An Amendment Existing
Date of Promulgation  1990-12-05 Effective Date  1990-12-05  


Provisions of the People’s Republic of China on the Administration of Maritime International Container Transport

Chapter I  General Provisions
Chapter II  Procedures for the Examination and Approval of Applications
Chapter III  Management of Freight Transportation
Chapter IV  Hand-Over Procedures and Responsibilities
Chapter V  Provisions on Penalties
Chapter VI  Supplementary Provisions

(Promulgated by Decree No. 68 of the State Council of the People’s

Republic of China on December 5, 1990, and effective as of the date of
promulgation)(Editor’s Note: For the revised text, see the Decision of the
State Council Regarding Amending the Provisions of the People’s Republic of
China on the Administration of Maritime International Container Transport
promulgated on April 18, 1998)
Chapter I  General Provisions

    Article 1  These Provisions are formulated in order to strengthen the
administration of maritime international container transport, to clearly
define the responsibilities of the various parties concerned, and to meet
the State’s needs in handling foreign trade.

    Article 2  These Provisions shall apply to those enterprises that are
established within the territory of the People’s Republic of China for the
handling of maritime international container transport, and also to units
and individuals that are involved in the operations of maritime international
container transport.

    Article 3  The Ministry of Communications of the People’s Republic of
China shall be responsible for the administration of the operations of
maritime international container transport throughout the country.

    Article 4  In conducting maritime international container transport, the
principles of safety, accuracy, speed, economy, and civilized services must
be followed and door-to-door transportation shall be actively developed.
Chapter II  Procedures for the Examination and Approval of Applications
for the Establishment of Enterprises That Handle Maritime International
Container Transport

    Article 5  “Enterprises for the operations of maritime international
container transport” refers to those shipping enterprises that are engaged in
maritime international container transport, and also to those enterprises
that are engaged in port handling, with their inland transshipment stations
and freight stations that undertake maritime international container
transport.

    Article 6  The applications for the establishment of enterprises that
are engaged in the operations of maritime international container transport
shall be submitted to the competent departments for communications of the
provinces, autonomous regions, or municipalities directly under the Central
Government for examination and verification, and then to the Ministry of
Communications for examination and approval.

    Article 7  The applications for the establishment of enterprises that
are engaged in port handling of international containers shall be submitted
to the competent departments for communications of the provinces, autonomous
regions, or municipalities directly under the Central Government for
examination and approval, and then to the Ministry of Communications for the
record.

    After the promulgation of these Provisions, the applications for the
establishment of new inland transshipment stations and freight stations that
undertake the transport of maritime international containers shall be
submitted first to the competent department that has established the said
enterprise for examination, verification, and consent; and then to the
competent departments for communications of the provinces, autonomous
regions, or municipalities directly under the Central Government for
examination and approval; and finally to the Ministry of Communications for
the record.

    The procedures for the examination and approval of the applications for
the establishment of new transshipment stations and freight stations that
undertake the transport of maritime international containers shall be
formulated separately by the Ministry of Communications in conjunction with
the Ministry of Foreign Economic Relations and Trade.

    Article 8  The applications for the establishment of Chinese-foreign
equity joint ventures and Chinese-foreign contractual joint ventures that
handle maritime international container transport shall be submitted to the
Ministry of Communications for examination, verification, and consent; and
shall then, in accordance with the provisions of the pertinent laws and
regulations, be submitted to the Ministry of Foreign Economic Relations and
Trade for examination and approval.

    Article 9  The establishment of enterprises that are engaged in the
operations of maritime international container transport must satisfy the
following conditions;

    (1) to have transport vessels, transport motor vehicles, transport
equipment and other relevant facilities that correspond to theft scope of
business and to the needs of their customers;

    (2) to have the necessary organizational structure, site for setting up
their business office, and specialized administrative personnel;

    (3) to have the registered capital and their own working capital that
meets the requirements of their business operations;

    (4) to meet other conditions as stipulated by State laws, decrees and
regulations governing the establishment of enterprises.

    Article 10  The competent department for communications shall examine,
verify and approve the scope of business operations of the enterprises that
have applied for the permission to handle maritime international container
transport in light of their sources of funds, the conditions of equipment and
facilities, the standard of administration, and the sources of cargoes.

    Article 11  The competent department of communications shall issue the
approving documents to those enterprises, which have obtained the approval to
handle maritime international container transport. The units that have
received the approving documents shall apply and go through the registration
procedures by presenting the aforesaid approving documents to the
administrative department for industry and commerce, which shall issue the
business licences after checking and approving the enterprises’ application;
and only then shall the enterprises be permitted to start business operations.

    Cases concerning the establishment of inland transshipment stations and
freight stations that undertake the transport of maritime international
containers shall also be submitted to the Customs for the completion of the
registration procedures.
Chapter III  Management of Freight Transportation

    Article 12  The containers used in maritime international container
transport shall conform to the provisions and technical standards of the
international organization for the standardization of containers, and also
to the provisions of the pertinent international containers convention.

    The owners and operators of containers shall do a good job in the
management and maintenance of containers and carry out regular inspections, in
order to guarantee the provision of containers that are suitable for the
transportation of cargoes.

    In case that the provisions in the second paragraph of this Article have
been violated, and, as a result, goods are damaged or short in number or
quantity, the person(s) who is (are) held responsible for this shall bear the
liability, for compensation in accordance with the pertinent provisions.

    Article 13  Shippers and enterprises that are engaged in port handling,
shall guarantee that the vessels, motor vehicles, handling machinery and
tools are kept in a good technical condition, thereby ensuring the
transportation and safety of containers.

    In case that shippers and enterprises that are engaged in port handling
have violated the provisions in the first paragraph of this Article, and, as
a result, goods are damaged or short in number or quantity, they shall bear
the liability for compensation in accordance with the pertinent provisions.

    Article 14  Shippers and enterprises that are engaged in port handling
shall use the container shipping documents.

    Article 15  Shippers may directly organize the contracting of the
transportation of container goods, and consignors may directly hold business
talks with shippers or commission shipping agents for the consignment of
import and export container goods.

    Article 16  Consignors shall submit an accurate report on the names of
goods, and their property, quantity, weight, and specifications. The goods
shipped by consignment in containers must conform to the requirements of
container transport, and marks on the goods should be obvious and clear.

    Article 17  Consignors or shippers shall, before vanning, carry out a
careful inspection of containers, and containers that might cause an adverse
effect on to the transportion and vanning of goods may not be used.

    Article 18  Containers which are used for shipping such perishables as
grains, edible oils, and frozen food, shall be inspected by the department for
commodity inspection and found to be up to the standard before they are used
for shipping.

    Article 19  As soon as container goods have reached their destination,
the shipper shall promptly send a cargo delivery notice to the consignee; and
the consignee shall, upon receiving the notice, take delivery of goods on the
strength of the bill of lading.

    In case that the consignee fails to clear the goods when the prescribed
time limit is overdue, or that the consignee fails to return the containers
according to the prescribed time limit, the said consignee shall be required
to pay in accordance with the pertinent stipulations or with the agreement
set forth in the contract, the demurrage charge for the extended use of
containers.

    Article 20  The freight charges for maritime international container
transport and other expenses shall be calculated and collected in accordance
with the State provisions concerning shipping charges and charge rates. In the
absence of State provisions, the freight charges shall be calculated and
collected in accordance with the prices agreed upon by both parties. No units
shall be permitted to collect charges at random.

    Article 21  Shippers and enterprises that are engaged in port handling,
shall submit periodical statistical statements on transportion to the
competent department for communications.

    Article 22  Various parties that are involved in maritime international
container transport shall, in good time, provide each other with information
concerning container transport.
Chapter IV  Hand-Over Procedures and Responsibilities

    Article 23  Shippers and consignors or consignees shall, in accordance
with the hand-over method stipulated, in the bill of lading, handle the
hand-over operations of containers and container goods at marshalling yards,
freight stations, or other places agreed upon by the two parties concerned.

    Article 24  Shippers and enterprises that are engaged in port handling,
which take part in maritime international container transport, shall handle
the hand-over operations in accordance with the following provisions:

    (1) maritime shippers shall handle the hand-over operations alongside
vessel through the tally companies and enterprises that are engaged in port
handling;

    (2) with respect to containers transported by waterways through nodal
points, the enterprises that engaged in port handling and waterway carriers
shall handle the hand-over operations alongside vessel;

    (3) with respect to containers transported by highways through nodal
points, the enterprises that engaged in port handling and highway carriers
shall handle the hand-over operations at the gate of the container terminal;

    (4) with respect to containers transported by railway through nodal
points, the enterprise that engaged in port handling or highway carriers and
railway carriers shall handle the hand-over operations at the site of handing.

    Article 25  While handling the hand-over operations of containers, the
two handling parties shall check the container numbers, the bodies of
containers and the containers’ marking seals. The loaded containers shall be
handed over by their marking seals and by the condition of container body; and
the empty containers shall be handed over by condition of container body.

    After checking the container numbers, the bodies of containers and the
marking the two handling parties shall make a record and confirm it by
appending their signatures to the record.

    Article 26  With respect to the liabilities of shippers and enterprises
that are engaged in port handling for the damage and loss of containers and
container goods, before the hand-over operations, the liabilities shall be
taken up by the handing-over party; after the hand-over operations, the
liabilities shall be taken up by the receiving party. However, if, within 180
days immediately after the hand-over operations, the receiving party is able
to produce evidence to testify to the fact that the damage of the containers,
or the damage and loss of container goods, were caused by the handing-over
party, then the handing-over party shall take up the liabilities for
compensation, unless otherwise provided by law.

    Article 27  Unless otherwise provided by law, shippers and consignors
shall, in accordance with the following provisions, take up the liabilities
for the damage or loss of container goods:

    (1) With respect to those goods, the vanning of which is done by the
shippers, if the goods in the containers are damaged or are short in number
or quantity during the period of time from the day the shippers receive the
goods to the day when the goods reach their destination but before they are
handed over to the consignees, the shippers shall take up the liabilities for
the damage or shortage.

    (2) With respect to those goods, the vanning of which is done by the
consignors, if the container bodies and the marking seals have remained intact
but the goods (in the containers) have been damaged or are short in number or
quantity during the period of time from the completion or the vanning and the
completion of the procedures for consignment to the day before the containers
are handed over to the consignees, the consignors shall take up the liabilities
for the damage or shortage; if the container bodies are damaged or the marking
seals broken, and the goods in the containers are also damaged or are short
in number or quantity, the shippers shall take up the liabilities for the
damage or shortage.

    The time limits for shippers and consigness or consignees to raise
claims of compensation shall be limited to no more than 180 days, beginning
from the day when container goods are handed over, unless otherwise provided
by law.

    Article 28  In case that the consignors’ inaccurate or false declaration
on container goods has resulted in injuries and death of personnel, or in the
loss of means of transport of the goods proper and the containers, or of other
goods, the consignors shall bear the liabilities for the consequences
arising therefrom.

    Article 29  In case that the fault of the person in charge of the vanning
has resulted in injuries and death of personnel, or in the loss of means of
transport, of other goods, or containers, the aforesaid person shall bear the
liabilities for the consequences arising therefrom.

    Article 30  In case that the damage or shortage in number or quantity
of container goods involves a claim for compensation from a foreign unit,
which necessitates an appraisal and the issue of the relevant certificate by
the administrative department for commodity inspection, the case shall be
handled in accordance with the provisions in the Law of the People’s Republic
of China on the Inspection of Import and Export Commodities. In case that the
shortage in number or quantity of containers or container goods involves a
claim for compensation from a foreign unit, which necessitates the issue of
the relevant certificate by the tally department, the case shall be handled in
accordance with the pertinent provisions.
Chapter V  Provisions on Penalties

    Article 31  With respect to those who are engaged in container transport
business without a business licence for handling transport business, the
competent department for communications shall order them to cease business
operations, and penalties shall be imposed on them by the administrative
department for industry and commerce.

    Article 32  With respect to those who have received shipping charges in
violation of these Provisions and the relevant laws and regulations of the
State on commodity prices, they shall be penalized by the department for the
control of commodity prides.

    Article 33  With respect to those who have violated the administration
of transport documents, they shall be given an administrative warning or a
pecuniary penalty by the competent department for communications in light of
the seriousness of the cases.

    Article 34  With respect to those who have disturbed the normal order of
transportation or have expanded their scope of business without authorization,
they shall be ordered by the competent department for communications to carry
out rectification of their business, and shall be penalized by the
administrative department for industry and commerce.

    Article 35  In the event that the person concerned does not accept the
decision on penalties, he/she may, within 15 days as of the first day after
the receipt of the notice of the decision on penalties, appeal to the
competent department immediately above the punishing department for
reconsideration of the aforesaid decision on penalties. The competent
department that has received the appeal for reconsideration shall, within
30 days (after receiving the appeal), make the decision on reconsideration.
If the person concerned still does not accept the decision of the
reconsideration, he/she may within 15 days immediately after receiving the
decision on reconsideration, bring a suit before a people’s court. If the
person concerned neither appeal for reconsideration, nor bring a suit before
the people’s court, nor execute the decision on penalties or the decision of
the reconsideration within the prescribed period of time, the department that
has made the decision on penalties may apply to the people’s court for
enforcement.
Chapter VI  Supplementary Provisions

    Article 36  The right to interpret these Provisions resides in the
Ministry of Communications.

    The Ministry of Communications may formulate the rules for implementation
in accordance with these Provisions.

    Article 37  These Provisions shall go into effect as of the date of
promulgation.





NATIONAL FLAG LAW

Category  NATIONAL FLAG, NATIONAL EMBLEM, CAPITAL, NATIONAL ANTHEM AND NATIONAL DAY Organ of Promulgation  The Standing Commettee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1990-06-28 Effective Date  1990-10-01  


Law of the People’s Republic of China on the National Flag


Appendix: Directions for the Making of the National Flag

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

National People’s Congress on June 28, 1990, promulgated by Order No.28 of the
President of the People’s Republic of China on June 28, 1990, and effective
as of October 1, 1990)

    Article 1  This Law is enacted in accordance with the Constitution with a
view to defending the dignity of the National Flag, enhancing citizens’  
consciousness of the State and promoting the spirit of patriotism.

    Article 2  The National Flag of the People’s Republic of China shall be a
red flag with five stars.

    The National Flag of the People’s Republic of China shall be made
according to the Directions for the Making of the National Flag promulgated by
the Presidium of the First Plenary Session of the Chinese People’s Political
Consultative Conference.

    Article 3  The National Flag of the People’s Republic of China is the
symbol and hallmark of the People’s Republic of China.

    All citizens and organizations shall respect and care for the National
Flag.

    Article 4  The local people’s governments at various levels shall exercise
supervision over and administration of the display and use of the National
Flag within their respective administrative areas.

    The Ministry of Foreign Affairs, the competent department in charge of
communications under the State Council and the General Political Department of
the Chinese People’s Liberation Army shall exercise supervision over and
administration of the display and use of the National Flag within their
respective jurisdiction.

    The National Flag shall be made by enterprises designated by the people’s
governments of provinces, autonomous regions and municipalities directly under
the Central Government.

    Article 5  The National Flag shall be displayed daily in the following
places or premises of institutions:

    (1) Tiananmen Square and Xinhuamen in Beijing;

    (2) The Standing Committee of the National People’s Congress, the State
Council, the Central Military Commission, the Supreme People’s Court and the
Supreme People’s Procuratorate;

    The National Committee of the Chinese People’s Political Consultative
Conference;

    (3) The Ministry of Foreign Affairs;

    (4) Airports, harbours and railway stations of entry or exit and other
frontier ports, frontier stations and coastal defence stations.

    Article 6  Departments under the State Council, the standing committees of
the local people’s congresses, the people’s governments, the people’s courts,
the people’s procuratorates and the local committees of the Chinese People’s
Political Consultative Conference at various levels shall display the National
Flag during working days.

    Full-time schools shall display the National Flag daily, except during
winter vacations, summer vacations and Sundays.

    Article 7  State organs at all levels and mass organizations shall display
the National Flag on National Day, International Labour Day, New Year’s Day
and the Spring Festival; the National Flag may be displayed, when conditions
permit, in premises of enterprises, institutions, villagers’ committees and
residents’ committees, in urban residential compounds (buildings) and in
public places such as squares and parks.

    In minority nationality areas where the Spring Festival is not a
traditional festival, whether the National Flag is displayed during the Spring
Festival shall be prescribed by the authorities practising self-government in
the national autonomous areas.

    In a national autonomous area, the National Flag may be displayed on the
anniversary of the founding of the national autonomous area and during major
traditional festivals of the minority nationalities.

    Article 8  The National Flag may be displayed when important celebration  
and commemorative activities, large-scale cultural and sports activities and
major exhibitions are held.

    Article 9  Measures for the display and use of the National Flag in
diplomatic activities and by the Chinese embassies and consulates stationed in
foreign countries and other diplomatic representative agencies shall be
prescribed by the Ministry of Foreign Affairs.

    Article 10  The National Flag shall be displayed by military organs at
barracks and on military vessels in accordance with the relevant provisions of
the Central Military Commission.

    Article 11  Measures for the display of the National Flag by civilian
vessels or foreign vessels entering Chinese territorial waters shall be
prescribed by the competent department in charge of communications under the
State Council.

    Measures for the display of the National Flag by public security vessels  
on frontier defence, security or fire control duties shall be prescribed by
the departments in charge of public security under the State Council.

    Article 12  The National Flag, when displayed under Articles 5, 6 and 7 of
this Law, shall be hoisted in the morning and lowered in the eve- ning.

    Where the National Flag shall be displayed under this Law, when the
weather is inclement, it is permissible that the Flag not be displayed.

    Article 13  When the National Flag is displayed, a Flag-hoisting ceremony
may be held.

    When a Flag-hoisting ceremony is held, persons present shall face the Flag
and stand at attention to salute the Flag, and the National Anthem may be
played or sung while the National Flag is being hoisted.

    A full-time middle school or primary school shall hold a Flag-hoisting  
ceremony once a week, except during vacations.

    Article 14  The National Flag shall be lowered to the half staff as at
token of mourning when the following persons pass away:

    (1) President of the People’s Republic of China, Chairman of the Standing
Committee of the National People’s Congress, Premier of the State Council and
Chairman of the Central Military Commission;

    (2) Chairman of the National Committee of the Chinese People’s Political  
Consultative Conference;

    (3) Persons who have made outstanding contributions to the People’s
Republic of China;

    (4) Persons who have made outstanding contributions to world peace or the
cause of human progress.

    When unfortunate events causing especially serious casualties occur or
when serious natural calamities have caused heavy casualties, the National
Flag may be flown at half staff as a token of mourning.

    The half-staffing of the National Flag in accordance with the provisions  
of (3) and (4) in the first paragraph and of the second paragraph of this
Article shall be decided by the State Council.

    Dates and places for the half-staffing of the National Flag under this
Article shall be decided by the funeral organ established by the State, or
shall be decided by the State Council.

    Article 15  When the National Flag is displayed, it shall be placed in a
prominent position.

    The National Flag, when raised or carried in a procession with another  
flag or flags, shall be in front of the other flag or flags.

    The National Flag, when displayed with another flag or flags, shall be
either at the center, above the other flag or flags, or in a position of
prominence.

    When the National Flags of two or more nations are displayed in foreign  
affairs activities, relevant provisions of the Ministry of Foreign Affairs or
the international practice shall be followed.

    Article 16  The National Flag, when hoisted or lowered from a vertical  
staff, shall be hoisted or lowered slowly. When hoisted, the National Flag
must reach the peak of the staff; when lowered, it may not touch the ground.

    The National Flag, when flown at half staff, shall be first hoisted to the
peak of the staff and then lowered to a point where the distance between the
top of the Flag and the peak of the staff is one third of the length of the
staff; the Flag, when lowered, shall be again hoisted to the peak before it is
lowered.

    Article 17  No damaged, defiled, faded or substandard National Flag shall
be displayed.

    Article 18  The National Flag and the design thereof shall not be used as
a trade mark or for advertising purposes, and shall not be used in private
funeral activities.

    Article 19  Whoever desecrates the National Flag of the People’s Republic
of China by publicly and wilfully burning, mutilating, scrawling on, defiling
or trampling upon it shall be investigated for criminal responsibilities  
according to law; where the offence is relatively minor, he shall be detained
for not more than 15 days by the public security organ in reference to the
provisions of the Regulations on Administrative Penalties for Public Security.

    Article 20  This Law shall enter into force as of October 1, 1990.

Appendix: Directions for the Making of the National Flag
(Promulgated by the Presidium of the First Plenary Session of the Chinese
People’s Political Consultative Conference on September 28, 1949)

    The shape and colour of either side of the National Flag shall be
identical, whereas the five stars on both sides of the Flag shall be opposite
to each other. For convenience’s sake, these directions shall take the
circumstances where the staff is on the left as the basis for illustration.
Where the staff is on the right, the word “left” used in these directions
shall all be changed to “right”, while the word “right” referring to direction
shall all be changed to “left”.

    (1) The face of the Flag shall be red and rectangular; the proportion of
its length and height shall be 3 to 2. The upper left of the face of the Flag
shall be studded with five yellow five-pointed stars. One of the stars shall
be bigger than the others, with its circumcircle’s diameter being three-tenth
of the height of the Flag, and shall be placed in the left; the four other
stars shall be smaller, with their circumcircle’s diameter being one-tenth of
the height of the Flag, encircling the big star on its right in the shape of
an arch. The cover of the staff shall be white.

    (2) The five stars shall be positioned and drawn as follows:

    a. To determine the position of the five stars, the face of the Flag shall
be first folded both ways to form four equal rectangles; then the rectangle on
the upper left shall be vertically divided into ten equal sections and
horizontally divided into fifteen equal sections.

    b. The central point of the big five-pointed star shall be at a point in
the rectangle where the fifth line from above (or the fifth line from below),
and the fifth line from the left (or the tenth line from the right) meet. The
method of drawing shall be: taking this point as the centre and the length of
three such equals as the radius to make a circle. On the circumference of this
circle, five points with equal distances from each other shall be determined,  
one of the points must be in the right above position of the circle. Then
connect each of the five points with every other point to form a straight line
respectively. The outline formed by these five straight lines shall be the
required big five-pointed star. An angle of the five-pointed star shall point
in the right above direction.

    c. The centres of the four small five-pointed stars shall be as follows:
the first shall be at a point, in the rectangle, where the second line from
above (or the eighth line from below), and the tenth line from the left (or
the fifth line from the right) meet; the second shall be at a point where the
fourth line from above (or the sixth line from below), and the twelfth line
from the left (or the third line from the right) meet; the third shall be at a
point where the seventh line from above (or the third line from below), and
the twelfth line from the left (or the third line from the right) meet; the
fourth shall be at a point where the ninth line from above (or the first line
from below), and the tenth line from the left (or the fifth line from the
right) meet. The method for drawing shall be: taking each of the above four
points as the centre and the length of one such equal as the radius to make
four circles. On each circle, five points with equal distances from each other
shall be determined. One of such points must be on the line linking  the
centre of the circle with the centre of the big five-pointed star. Then the
same methods used in forming the big five-pointed star shall be used to form
the small five-pointed stars. The four small five-pointed stars shall
respectively have an angle pointing right at the centre of the big
five-pointed star.

    (3) The measurement in common use for the National Flag, from which people
from various circles may choose at their discretion shall be as follows:

    a. 288 cm. in length, 192 cm. in height;

    b. 240 cm. in length, 160 cm. in height;

    c. l92 cm. in length, 128 cm. in height;

    d. 144 cm. in length, 96 cm. in height;

    e. 96 cm. in length, 64 cm. in height.





DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS REGARDING THE SEVERE PUNISHMENT OF CRIMINALS WHO ABDUCT AND TRAFFIC IN OR KIDNAP WOMEN OR CHILDREN

Category  CRIMINAL LAW Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1991-09-04 Effective Date  1991-09-04  


Decision of the Standing Committee of the National People’s Congress Regarding the Severe Punishment of Criminals Who Abduct and
Traffic in or Kidnap Women or Children



(Adopted at the 21st Meeting of the Standing Committee of the Seventh

National People’s Congress on September 4, 1991, promulgated by Order No.52 of
the President of the People’s Republic of China on September 4, 1991, and
effective as of September 4, 1991)(Editor’s Note: In accordance with the
provisions of Article 452 of the Criminal Law of the People’s Republic of China revised at the Fifth Session of the Eighth National
People’s Congress on
March 14, 1997, and effective on October 1, 1997, the provisions regarding
administrative penalties and administrative measures in this Decision shall
continue to be in force and the provisions regarding criminal liability have
been incorporated into the revised Criminal Law)

    With a view to severely punishing criminals who abduct and traffic in or
kidnap women or children so as to protect the personal safety of women and
children and maintain the public security order, the relevant provisions of
the Criminal Law are supplemented or amended as follows:

    1. Whoever abducts and traffics in a woman or a child shall be sentenced  
to fixed-term imprisonment of not less than five years and not more than ten
years, and shall concurrently be punished with a fine of not more than 10,000
yuan; if under any of the following circumstances, the offender shall be
sentenced to fixed-term imprisonment of not less than ten years or life
imprisonment, with the concurrent punishment of a fine of not more than 10,000
yuan or confiscation of property; if the circumstances are especially serious,
the offender shall be sentenced to death with the concurrent punishment of
confiscation of property:

    (1) Being a ringleader of a gang engaged in the abduction of and
trafficking in women or children;

    (2) Abducting and trafficking in three or more women and/or children;

    (3) Raping the woman who is abducted and trafficked in;

    (4) Enticing or forcing the woman who is abducted and trafficked in to
engage in prostitution, or selling such woman to any other person or persons
who will force the woman to engage in prostitution;

    (5) Causing serious bodily injury or death or other severe consequences
of the woman or child who is abducted and trafficked in or of their relatives;

    (6) Selling a woman or a child out of the territory of China.

    Abducting and trafficking in a woman or a child mean any act of abducting,
buying, trafficking in, fetching or sending, or transferring a woman or a
child, for the purpose of selling the victim.

    2. Whoever kidnaps a woman or a child by means of violence, intimidation
or anaesthesia for the purpose of selling the victim shall be sentenced to
fixed-term imprisonment of not less than ten years or life imprisonment, and
shall concurrently be sentenced to a fine of not more than 10,000 yuan or
confiscation of property; and if the circumstances are especially serious,
the offender shall be sentenced to death with the concurrent punishment of
confiscation of property.

    Whoever steals a baby or an infant for the purpose of selling the victim
or extorting money or property shall be punished in accordance with the
provisions in the first paragraph of this Article.

    Whoever kidnaps any other person or persons for the purpose of extorting  
money or property shall be punished in accordance with the provisions in the
first paragraph of this Article.

    3. It shall be strictly prohibited for anyone to buy a woman or a child
who is abducted and trafficked in or kidnapped. Whoever buys a woman or a
child who is abducted and trafficked in or kidnapped shall be sentenced to
fixed-term imprisonment of not more than three years, criminal detention or
public surveillance.

    Whoever buys a woman who is abducted and trafficked in or kidnapped and
has sexual relations with her against her will shall be punished in accordance
with the provisions on the crime of rape in the Criminal Law.

    Whoever buys a woman or a child who is abducted and trafficked in or
kidnapped, and illegally deprives the victim of his or her personal freedom
or restricts his or her personal freedom, or commits any criminal act such as
hurting, insulting or maltreating the victim, shall be punished in accordance
with the relevant provisions in the Criminal Law.

    Whoever buys a woman or a child who is abducted and trafficked in or
kidnapped, and commits any criminal act as specified in the second or third
paragraph of this Article shall be punished in accordance with the provisions
on combined punishment for several crimes in the Criminal Law.

    Whoever buys a woman or a child who is abducted and trafficked in or
kidnapped and sells the victim afterwards shall be punished in accordance with
the provisions in Article 1 of this Decision.

    Whoever, having bought a woman or a child who is abducted and trafficked
in or kidnapped, does not obstruct the woman from returning to her original
place of residence according to her will, or does not maltreat the child nor
obstruct his or her rescue, shall be exempted from being investigated for
criminal responsibility.

    4. No individual or organization may obstruct the rescue of a woman or a
child abducted and trafficked in or kidnapped, nor may any individual or
organization extort the costs he or she or it has paid for buying such woman
or child and the living expenses thereof from the woman or child who is
abducted and trafficked in or kidnapped, or his or her family members, or his
or her rescuers. In case such costs and expenses have been extorted, they
shall be recovered.

    Whoever obstructs with violence or intimidation State functionaries from
rescuing a woman or a child who has been bought shall be punished in
accordance with the provisions in Article 157 of the Criminal Law; whoever  
obstructs, by providing assistance in transferring or hiding the victim or by
other means, State functionaries from rescuing a woman or a child who has been
bought, but without using violence or intimidation, shall be punished in
accordance with the provisions in the Regulations on Administrative Penalties
for Public Security.

    Major culprits who gather crowds to prevent State functionaries from
rescuing a woman or a child who has been bought shall be sentenced to
fixed-term imprisonment of not more than five years or criminal detention;
other participants in the offence shall be punished in accordance with the
provisions in the second paragraph of this Article.

    5. The people’s governments at various levels shall have the functions and
responsibilities to rescue a woman or a child who is abducted and trafficked
in or kidnapped. The rescue work shall be carried out by the public security
organs in conjunction with the departments concerned. Any State functionary
charged with functions and responsibilities to rescue who fails to make any
rescue effort on receiving a request for rescue by a woman or a child who is
abducted and trafficked in or kidnapped or by his or her family members or on
receiving a report thereon made by any other person and therefore results in
serious consequences, shall be punished in accordance with the provisions in
Article 187 of the Criminal Law; if the circumstances are relatively minor,
such State functionary shall be subjected to administrative sanctions.

    Any State functionary charged with functions and responsibilities to
rescue who, by taking advantage of his or her office, hinders the rescue,
shall be sentenced to fixed-term imprisonment of not less than two years and
not more than seven years; if the circumstances are relatively minor, such
State functionary shall be sentenced to fixed-term imprisonment of not more
than two years or criminal detention.

    6. The illegal incomes gained from abducting and trafficking in or
kidnapping a woman or a child shall be confiscated.

    All the incomes from fines and confiscations shall be turned over to the
State Treasury.

    7. This Decision shall enter into force as of the date of promulgation.





PROVISIONS ON THE CONTROL OF MARITIME NAVIGATIONAL WARNINGS AND NAVIGATIONAL NOTICES

Category  CIVIL AVIATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-12-22 Effective Date  1993-02-01  


Provisions of the People’s Republic of China on the Control of Maritime Navigational Warnings and Navigational Notices



(December 22, 1992)

    Article 1  These Provisions are enacted in accordance with
the relevant provisions of the Maritime Traffic Safety Law of the
People’s Republic of China, with the purpose of strengthening the
control of maritime navigational warnings and navigational
notices, and ensuring the safety of vessels and installations in
navigations and operations.

    Article 2  These Provisions shall apply to all vessels,
installations and personnel that engage in activities in the
coastal waters of the People’s Republic of China that affect
or may affect the safety of maritime traffic, and the relevant
units and personnel responsible for issuing maritime navigational
warnings and navigational notices.

    Article 3  The harbor superintendency agency of the People’s
Republic of China (hereinafter referred to as the state competent
authority) is responsible for issuing maritime navigational
warnings and navigational notices throughout the country.

    The harbor superintendency agencies along coastal waters
(hereinafter referred to as regional competent authorities) are
responsible for issuing maritime navigational warnings and
navigational notices within their jurisdiction areas.

    The jurisdiction areas of the harbor superintendency agencies
along the coastal waters shall be determined by the state
competent authority.

    Article 4  Maritime navigational warnings shall be issued by
the state competent authority or its authorized agencies through
radiogram or radio telephone.

    Maritime navigational notices shall be issued by the state
competent authority or regional competent authorities in writing
or through newspaper, radio, television, and other news medium.

    Article 5  To engage in following activities in the coastal
waters of the People’s Republic of China, an application to issue
maritime navigational warnings and navigational notices must be
filed with the regional competent authority for the sea area
concerned:

    (1) Changing navigation lanes or troughs;

    (2) Designating, changing, or revoking restricted navigation
zones, earth-dumping zones, aquatic zones, speed-measuring
zones, or water amusement areas;

    (3) Placing or removing public compasses or demagnetization
fields;

    (4) Salvaging sunken ships or objects;

    (5) Laying, removing, inspecting, or repairing cables, pipes,
and tunnels;

    (6) Placing or removing mooring buoys or other structures;

    (7) Placing or removing installations used for maritime
exploration or exploitation, and the safety zones thereof;

    (8) Engaging in such operations as sea sweeping, dredging,
demolition, pile driving or pile pulling, lifting, or drilling;

    (9) Engaging in over-length, over-height, or ponderous towing
operations which limit the navigational capacity of vessels;

    (10) Making oceanic geological surveys, exploration, or
hydrologic surveys which hinder maritime navigational safety; or

    (11) Conducting other activities which affect maritime
navigation and operational safety.

    Where military units have designated, changed, or revoked
military forbidden navigation zones, military training zones,
maritime navigational warnings and navigational notices shall be
issued by the state competent authority or regional competent
authority.

    Article 6  Those units which organize or engage in the
activities listed in Paragraph 1, Article 5 shall, before seven
days as of the day of conducting the operation(s), file a written
application to issue maritime navigational warnings and
navigational notices with the regional competent authority
concerned, except in those cases where maritime navigational
warnings and navigational notices need to be issued at once and
that has been affirmed by the regional competent authority.
Activities listed in Item (9), Paragraph 1 of Article 5 shall be
conducted in accordance with Article 7 of these Provisions.

    The written application shall include the following:

    (1) The dates of the beginning and end of the activity and
daily times of operation;

    (2) The content and form of the activity;

    (3) The names of the vessels, installations, and units which
will take part in the activity;

    (4) The area of the activity; and

    (5) Safety measures.

    Article 7  Where vessels engage in activities listed in
Item (9) of Article 5, a written application to issue maritime
navigational warnings and navigational notices shall, three days
in advance of the day of towing, be filed with the regional
competent authority of the maritime area in which such activity
is concerned.

    The written application shall include the following:

    (1) The names of the towing and towed vessels;

    (2) The time for beginning of the towing;

    (3) The beginning and ending positions and points of
major changes of direction;

    (4) The total length of the tow; and

    (5) The navigational speed.

    Article 8  After the maritime navigational warnings and
navigational notices are issued, the applicant shall conduct
activities in the area and during the time approved by the state
competent authority or the regional competent authority; if the
time or the area need to be changed, a new application shall be
submitted in accordance with these Provisions.

    Article 9  Vessels and installations shall, when encountering
the following cases, report to the nearby regional competent
authority:

    (1) Shallows or rocks not recorded in navigational books;

    (2) Unusual magnetic areas or color changes of sea water;

    (3) Sunken vessels or objects, dangerous objects and flotsam
which jeopardizes navigation;

    (4) Variations in or disorder of navigational aids or
navigational facilities; or

    (5) Other abnormal situations jeopardizing the safety of
navigation.

    Report should include the time and place of discovery, and
the objects found.

    Article 10  After receiving a report which concerns
jeopardizing the safety of navigation or an application to issue
maritime navigational warnings and navigational notices, the
regional competent authority shall verify the materials at once,
and in light of the actual need and scope of jurisdiction, decide
to issue maritime navigational warnings and navigational notices.

    Article 11  Regional competent authorities shall issue
maritime navigational warnings and navigational notices in the
following cases in their jurisdiction areas:

    (1) Placement, adjustment or removal of anchorages;

    (2) Establishment or dissolution of sea disaster rescue
areas, pollution-prevention operation areas, and major sea-operation
accident areas;

    (3) Placement, alteration, or removal of sub-navigational
routing systems;

    (4) Placement, removal, renovation, alteration or restoration  
of navigational aids or navigational facilities; or

    (5) Other circumstances which jeopardize the safety of
navigation.

    Article 12  The state competent authority or regional
competent authority shall, in issuing maritime navigational
warnings and navigational notices and receiving the reports
provided for by Article 9 of these Provisions, provide at once
relevant materials to the naval maritime navigation security
department and inform them of relevant situations.

    Article 13  Coastal radio stations shall be responsible for
broadcasting maritime navigational warnings in accordance with
the specified time, frequency and demand. The specific procedures
and measures shall be formulated by the competent department of
communications under the State Council.

    Article 14  The relevant personnel shall receive and copy the
maritime navigational warnings broadcast by the coastal radio
station in accordance with regulations.

    Article 15  Relevant units receiving maritime navigational
notices shall take effective measures and inform their
subordinate vessels and installations.

    Article 16  Those units or persons who have outstanding
achievements in enforcing these Provisions shall be given rewards
by the state competent authority or regional competent authority.

    Article 17  Anyone who violates Paragraph 1 of Article 5, or
Article 8 of these Provisions shall be ordered to cease such
activity and may be concurrently given a fine of up to 2,000 RMB
yuan by the state competent authority or regional competent
authority.

    Article 18  Anyone who fails to apply to issue maritime
navigational warnings or navigational notices during the period
provided for in Articles 6 and 7 of these Provisions may be
given a warning and may be concurrently given a fine of up to
800 RMB yuan by the state competent authority or regional
competent authority.

    Article 19  The person(s) responsible for violating the
provisions of Article 14 of these Provisions shall be given a
warning or have their work certificates withheld or revoked by
the state competent authority or regional competent authority
in accordance with the facts of the case.

    Article 20  In the event violation of these Provisions
results in a maritime traffic accident, in addition to civil
compensation responsibility in accordance with the law, the state
competent authority or regional competent authority shall, in
accordance with the facts of the case, give fines or withhold or
revoke work certificates; if said actions constitute a crime,
criminal responsibility shall be investigated in accordance with
law.

    Article 21  If a party does not agree with the fine or
the withholding or revocation of the work certificate, he may
apply for an administrative reconsideration to the harbor
superintendency agency of the People’s Republic of China within
15 days after receiving notification of the penalty, or may bring
a suit to the people’s court directly. If neither an application
for an administrative reconsideration nor legal suit is made, and
the penalty has not been complied with upon the expiration of the
given time period, the competent authority which made the penalty
decision shall request compulsory enforcement from the people’s
court.

    Article 22  In the event of constructing, altering or
extending installations or conducting other operations within the
waters of fishing harbors, the fishery administration and fishing
harbor superintendency agency shall issue maritime navigational
notices in accordance with these and other relevant provisions.

    Article 23  Measures concerning the administration of
maritime navigational warnings and navigational notices involving
military units shall be formulated separately in accordance with
the provisions of Maritime Traffic Safety Law of the People’s
Republic of China.

    Article 24  The Ministry of Communications shall be
responsible for the interpretation of these Provisions.

    Article 25  These Provisions shall enter into force as of
February 1, 1993.





ACCOUNTING SYSTEM OF THE PEOPLE’S REPUBLIC OF CHINA FOR ENTERPRISES WITH FOREIGN INVESTMENT






20020201

The Ministry of Finance

Accounting System of the People’s Republic of China for Enterprises with Foreign Investment

the Ministry of Finance

June 24,1992

Chapter I General Provisions

Article 1

These System are formulated in accordance with the laws and regulations of the People’s Republic of China concerning enterprises with
foreign investment with a view to strengthening the accounting functions of enterprises with foreign investment and to protect the
legal rights of these enterprises and their investors.

Article 2

These System shall apply to enterprises with foreign investment established in the People’s Republic of China which include Chinese-foreign
equity joint ventures, Chinese-foreign contractual joint ventures and wholly foreign owned enterprises.

Article 3

The Ministry of Finance shall be responsible for the administration of the accounting affairs relating to enterprises with foreign
investment throughout the People’s Republic of China.

The finance department and bureau of each province, autonomous regions and municipalities directly under the Central Government and
the responsible authorities under the State Council shall administer the accounting affairs relating to enterprises with foreign
investment in its own region or under its administration and may, in accordance with the System and the practical circumstances,
formulate supplementary provisions, copies of which shall be filed with the Ministry of Finance for reference.

Enterprises with foreign investment shall formulate their own accounting systems, based on the System and related supplementary provisions,
to suit their own practical circumstances. The manuals on these accounting systems shall be filed with the responsible finance bureau,
local tax authorities and other relevant supervisory authorities.

Chapter II Accounting Practices and Principles

Article 4

Accounting practices of enterprises with foreign investment shall conform with the relevant laws and regulations of the People’s Republic
of China and with the provisions of the System.

Article 5

Enterprises with foreign investment shall account for their transactions in distinct accounting periods (month, quarter and year).

The accounting year of enterprises with foreign investments shall coincide with the calendar year, i.e. from January 1 to December
31 on the Gregorian calendar.

Article 6

Enterprises with foreign investment shall only account for business transactions which have actually taken place, and shall ensure
that the accounting books are accurate, complete, prepared up to date, and shall also ensure that correct methods and appropriate
procedures have been applied.

Article 7

Enterprises with foreign investment shall maintain their accounting books using the accrual method. Income earned and expenses incurred
during the period shall be accounted for as income and expenses of the period, regardless of whether the amount has been received
or paid during the period.

Income and expenses not earned and incurred during the period shall not be accounted for as income and expenses of the period, even
if the amount has been received or paid during the period.

Article 8

Enterprises with foreign investment shall match their income with the related expenses. Income earned during an accounting period
shall be taken into the accounts of the same accounting period together with the related costs and expenses.

Article 9

Assets of enterprises with foreign investment shall be accounted for at historical cost. Unless otherwise authorized, enterprises
may not adjust the carrying value of their assets at their own discretion.

Article 10

Enterprises with foreign investment shall distinguish capital expenditure from revenue expenditure. Expenditure shall be regarded
as capital expenditure where the benefits to the enterprise last for more than one (not including one) accounting year and as revenue
expenditure where the benefits to the enterprise last for only one accounting year.

Article 11

Accounting methods adopted by enterprises with foreign investment shall be consistent within each accounting period and from one period
to the next and shall not be changed at will. Where changes are necessary, such changes shall generally be introduced at the beginning
of a new accounting year and shall be disclosed in the notes to the accounts of that accounting year.

Chapter III Book Keeping and Accounting Books

Article 12

Enterprises with foreign investment shall adopt the double entry accounting method.

Article 13

Enterprises with foreign investment may maintain their accounts in Renminbi or a foreign currency (generally, the foreign currency
shall be one for which the exchange rate is quoted by the State Administration of Exchange Control. The same definition applies wherever
reference is made to foreign currency). This reporting currency shall not be changed at will once it is adopted. Where changes are
necessary, approval shall be obtained from the responsible finance bureau or other relevant supervisory authorities under the State
Council. Such changes shall be introduced at the beginning of a new accounting year and disclosed in the notes to the accounts of
that accounting year.

Enterprises engaged in multi-currency financing or finance leasing may maintain their accounts in Renminbi as well as other related
foreign currencies according to their actual requirements.

Article 14

Accounts of enterprises with foreign investment shall be kept in Chinese or in both Chinese and another foreign language.

Article 15

Enterprises with foreign investment shall obtain the original supporting document or prepare a primary voucher whenever there is a
business transaction. All original documents and primary vouchers must be true, complete and accurate, and shall be obtained or prepared
through proper procedures. The original documents and primary vouchers shall be used as accounting vouchers only after they have
been verified as correct.

Article 16

Enterprises with foreign investment shall keep three major accounting books namely the journal ledger, general ledger and sub-ledgers
together with all other necessary supporting books.

All accounting books shall be kept based on the primary vouchers, accounting vouchers or voucher summaries which have been verified
as correct. All entries to the accounting books must be made on a timely basis, and must be complete, accurate and denoted with clear
particulars.

Corrections to any of the accounting books must be made strictly following the working rules for accounting personnel.

Article 17

In the case of Chinese-foreign co-operative joint ventures where parties to the joint ventures pay their taxes separately, combined
accounting books shall be kept in accordance with the provisions set out in Article 16 of the System in respect of assets and liabilities
and income and expenses commonly shared and borne by the parties. The parties shall also keep relevant books of their own.

Article 18

Where enterprises with foreign investment use computers in maintaining their accounting books, the software used shall conform with
the requirements provided in the System and possess functions for ensuring security and confidentiality.

Data stored in magnetic or other media shall be supported by back-up files and hard copies of the data shall be printed on a regular
basis.

Chapter IV Current Assets

Article 19

Current assets of enterprises with foreign investment shall include cash on hand, cash in bank, marketable securities, receivables,
prepayments and inventory.

Cash on hand, cash in bank and marketable securities shall be accounted for separately; receivables shall be accounted for separately
where appropriate as bills receivable, accounts receivable, short term loans receivable and other receivables; prepayments shall
be accounted for separately where appropriate as deposits to suppliers (trade deposits), income tax prepaid and expenses prepaid;
inventory shall be accounted for separately where appropriate as merchandise, raw materials, work-in-progress, semi-finished goods,
finished goods, containers and low-value consumables.

Amounts receivable after one year from the balance sheet date shall be separately disclosed below the long term investment category
in the balance sheet.

Article 20

Enterprises with foreign investment shall keep a journal for cash on hand and cash in bank and shall record each transaction on a
daily basis. Where the accounting books are maintained in multi-currencies (including foreign exchange certificates. The same definition
applies wherever reference is made to multi-currencies), different journals shall be kept for each currency.

Article 21

Marketable securities include inventory and debentures to be realized within one year from the balance sheet date and shall be accounted
for at cost. Where the cost includes an element of dividend declared or interest accrued, that portion relating to the dividend and
interest shall be accounted for as a temporary payment and disclosed under other receivables.

Dividend and interest income received or receivable from marketable securities; and profit or loss arising from disposal or liquidation
of marketable securities shall be accounted for as non-operating income or expenses being profit or loss on investments.

Article 22

Receivables and prepayments shall be separately accounted for in their originating currency.

Enterprises may make a general provision for bad debts at the end of the accounting year. The general provision should not exceed
3 % of the total receivables, such as accounts and bills receivable or loans, outstanding at the end of the accounting year.

Provision for bad debts shall be accounted for separately and stated in the balance sheet as a deduction from receivables or loans.
Where the amount of provision to be provided at the accounting year end exceeds the amount of provision already made in the accounts,
the difference shall be made up by making an additional provision in the accounts; where it is below the amount already provided
for, the balance of the provision should be adjusted downward accordingly.

Enterprises with foreign investment shall charge losses arising from bad debts to general and administrative expenses. For enterprises
which have made a provision for bad debts, any amount of bad debt to be written off shall be charged against the provision for bad
debts. Any subsequent recoveries of bad debts written off shall be credited to the provision for bad debts or general and administrative
expenses.

The write-off of bad debts shall be dealt with in accordance with relevant regulations in the People’s Republic of China.

Article 23

Inventory shall be accounted for at historical cost.

The historical cost of inventory purchased includes the purchase consideration, transportation, loading and unloading expenses, insurance,
reasonable loss incurred in transit, preparatory expenses incurred before warehousing and taxes payable. For trading and service
enterprises, the historical cost of commodities purchased includes purchase consideration and taxes payable.

The historical cost of materials manufactured, produced or excavated by the enterprise itself shall be the actual costs incurred in
the process of manufacturing, production and excavation of these materials.

The historical cost of inventory processed by third party subcontractors includes costs of raw materials or semi-finished goods actually
used together with processing charges, transportation, loading and unloading expenses, insurance and taxes payable. For trading and
service enterprises, the historical cost of commodities processed by third parties includes the cost of unprocessed materials, processing
charges and taxes payable.

The historical cost of inventory donated to the enterprise includes the price of the inventory determined based on the provisions
set out in the second paragraph of Article 49 of the System together with transportation, loading and unloading expenses, insurance
and taxes payable borne by the enterprise.

Inventory gains shall be accounted for at original historical cost or at the historical cost or at the historical cost of similar
inventory.

Where inventory is accounted for at the planned cost (or standard cost. The same definition applies wherever reference is made to
planned cost), any difference between the planned cost and historical cost shall be accounted for separately.

Article 24

Inventory shall be accounted for using the perpetual inventory method.

Merchandise, raw materials, semi-finished goods and finished-products shall be accounted for at historical cost; the historical cost
can be determined using the first-in-first-out, weighted average, moving average, last-in-first-out or batch methods. Where the planned
cost is used, the difference in cost in each period shall be taken up to adjust the budget cost of inventory acquired or delivered
to historical cost.

Low-value consumables and containers for repetitive use may be expended entirely upon incurring or amortized over two years or by
installments. Low-value consumable acquired in large quantities on commencement of business may be accounted for as other assets.

Article 25

Inventory counts shall be conducted on a regular basis but not less than once every year. Differences between the results of inventory
counts and book records shall be adjusted for as soon as possible after the reasons for such differences are identified. The adjustment
shall normally be made before the finalisation of accounts for the accounting year in which the inventory count is conducted.

Gains on inventory shall generally be used to offset relevant expenses. Losses on inventory or damages shall be charged to relevant
expenses after taking into account and compensation from person(s) causing such losses or damage or from insurance companies and
the scrap value of the inventory. Net losses as a result of extraordinary causes shall be accounted for as non-operating expenses.

At the accounting year end, where defects in or obsolescence of the merchandise, finished goods or semi-finished goods available for
sale to third parties have caused the net realizable value of the merchandise and products to be less than their book costs, such
loss may be charged to the selling expenses of the accounting year after approval is obtained from the responsible finance bureau
or other relevant supervisory authorities under the State Council. Such loss may also be charged to a provision for losses that may
arise on sale of the inventory and stated as a deduction from inventory in the balance sheet. On actual sale of inventory for which
the provision has been made, any over-provision shall be used to write down the selling expenses. Net realizable value shall be determined
based on the expected sales proceeds less any necessary processing or maintenance charges.

Chapter V Long Term Investments

Article 26

Long term investments of enterprises with foreign investment represent capital injected into other enterprises for a period of more
than one year and include cash on hand, tangible and intangible assets and shares and debentures not expected to be realized within
one year from the balance sheet date. Long term investments shall be accounted for separately and separately disclosed in the balance
sheet.

Any portion of long term investments to be realized or recoverable within one year from the balance sheet date shall be separately
disclosed under current assets in the balance sheet.

Investments in other enterprises shall be accounted for based on actual payments or based on the cost of materials or intangible assets
contributed as agreed in the investment contracts or agreements.

Investments in shares shall be accounted for based on actual payments or based on the cost of materials or intangible assets contributed
as agreed in the investment contracts or agreements including expenses related to the transactions. Where the actual payments include
dividends declared by the investing company, that portion of the dividend shall be accounted for as a temporary payment and disclosed
under other receivables in the books of the investing company.

Investments in debentures shall be accounted for based on actual payments. Where the actual payments include interest accrued, that
portion of the interest shall be accounted for as a temporary payment and disclosed under other receivables.

Where debentures are acquired at a premium or discount, the difference between the cost and the face value of the debentures shall
be amortized by installments using the straight line method or effective interest rate method over the period to maturity of the
debentures in order to adjust the interest income and the book value of the long term investments.

Any difference between the appraised values of tangible or intangible assets contributed and their book values shall be treated as
deferred investment profits or losses which shall be accounted for as non-operating income or expenses over the investment period
by equal annual installments. The balance of deferred investment profits or losses as at the accounting year end shall be separately
disclosed under other assets or other liabilities in the balance sheet.

Article 27

The cost method shall generally be used in accounting for investments in other enterprises and shares. The equity method may also
be used where an enterprise’s investment exceeds 25% of the total capital or total share capital of the invested enterprise and significance
influence can be exercised over its management.

Dividend and interest income received or receivable from long term investments; profit or loss on liquidation or assignment of long
term investments and, in the case of enterprises which equity account for long term investments, the changes in book value of long
term investments arising from any changes in the interest in the invested enterprise shall be treated as investment gains or losses
and accounted for as non-operating income or expenses.

Article 28

Funds to branches which keep their own accounts but do not pay their taxes individually shall be accounted for as funds to branches
and separately disclosed under long term investments in the balance sheet.

Funds to branches shall be accounted for at the book value of the cash, tangible or intangible assets actually contributed.

Chapter VI Fixed Assets and Work in Progress

Article 29

Fixed assets of enterprises with foreign investment shall be accounted for separately and separately disclosed in the balance sheet.
Assets under finance leases shall be accounted for separately until ownership is transferred. Assets under operating leases shall
be recorded in supporting memorandum books and shall be disclosed in the notes to the accounts.

Article 30

Fixed assets shall be accounted for at cost.

The cost of fixed assets contributed by the investors represents the amount stated in contracts, agreements, the enterprise’s application
document for incorporation or the statement of examination and receipt of fixed assets contributed including transportation, loading
and unloading expenses, insurance and taxes payable borne by the enterprise.

The cost of fixed assets purchased represents the purchase consideration including transportation, loading and unloading expenses,
insurance and taxes payable.

Cost of fixed assets manufactured and constructed by the enterprise itself represents actual expenses incurred in the manufacturing
and construction process.

The cost of fixed assets under finance leases represents the purchase consideration stated in the contracts including transportation,
loading and unloading expenses, insurance and taxes payable borne by the enterprise. Where the purchase consideration stated in the
contracts includes interest and handling charges, that portion of the interest and handling charges shall be deducted from the cost.
Such interest and handling charges need not be accounted for separately if the value of the fixed assets under finance leases is
not substantial and the term of the lease is not long.

The cost of fixed assets donated to the enterprise represents the price of the fixed assets determined based on the provisions set
out in the second paragraph of Article 49 of the System, including transportation, loading and unloading expenses, insurance and
taxes payable borne by the enterprise. For used assets, the rate of depreciation shall be estimated according to the condition of
these assets.

Surplus of fixed assets on physical counts shall be determined by the replacement cost of such assets and their rates of depreciation
shall be estimated according to the condition of these assets.

Expenses incurred in modifying fixed assets for the purpose of expansion, replacement, renovation or technological improvement may
be included under the cost of fixed assets.

Cost shall also include installation costs, if any, of the fixed assets.

Article 31

Fixed assets shall generally be depreciated using the straight line method. The production or service output method may also be used
where the straight line method is not appropriate.

Depreciation of fixed assets shall generally be determined based on the cost of fixed assets and the depreciation rate set for each
category of fixed assets. Depreciation rates may also be applied on an individual asset basis where the depreciation rate by category
is not appropriate. The rates of depreciation of fixed assets shall be determined based on their cost, estimated residual values,
which shall generally be not less than 10% of their cost, and their expected useful lives.

Accelerated depreciation shall generally be calculated using only the double reducing balance method or sum-of-digits method.

Fixed assets shall be depreciated on a monthly basis from the month following that in which the assets are used in operation. For
fixed assets which are no longer used in operation, provision for depreciation on such assets shall cease to be made from the month
following that in which the assets cease to be used. Fixed assets may continue to be used after they have been fully depreciated
during which time no further depreciation shall be required. Provision for depreciation shall also cease to be made for fixed assets
damaged before the end of their expected useful lives.

Where the cost of fixed assets is adjusted for the purpose of expansion, replacement, renovation or technological improvement, depreciation
shall be calculated after taking into account the adjusted cost, accumulated depreciation already provided, estimated residual values
and the remaining useful lives. Fixed assets used in construction work during the set-up period of the enterprise may be depreciated
in full on completion of work or be equal installments over the period of construction and the depreciation charge shall be included
in the cost of construction. In respect of fixed assets used during the set-up period but not directly related to the construction
work, the depreciation charge shall be included in pre-operating expenses. Assets under finance and operating leases shall also be
depreciated. Fixed assets, other than buildings, idle for a long period shall not be depreciated.

Accumulated depreciation shall be accounted for separately and separately disclosed as a deduction under fixed assets in the balance
sheet. Accumulated depreciation for fixed assets under finance leases shall be accounted for separately.

Article 32

A physical count of fixed assets shall be made on a regular basis, at least once every year. Differences between the physical count
results and book records shall be adjusted for as soon as possible after the reasons for such differences are identified. The adjustment
shall normally be made before the finalisation of accounts for the accounting year in which the physical count of assets is conducted.
Any surplus of fixed assets identified on physical counts shall be accounted for as operating income at an amount equal to their
cost less accumulated depreciation while losses shall be accounted for as operating expenses at an amount equal to their cost less
accumulated depreciation and any compensation from person(s) causing such losses or from insurance companies. Surplus and shortage
of fixed assets on physical counts during the construction period shall be included in the related construction cost.

Net profit or losses on disposals of fixed assets arising from sale, obsolescence or damage shall be accounted for as non-operating
income or expenses. Net profit or losses on the disposal of fixed assets arising during the period of construction shall be accounted
for as part of the construction cost.

During the set-up period of the enterprise, surplus or shortage of fixed assets on physical counts or on disposals not directly related
to any construction work, and profits or losses on disposals of fixed assets as a result of extraordinary causes shall be accounted
for as pre-operating expenses.

Article 33

Construction in progress of enterprises with foreign investment shall include preparation work before commencement of the construction,
work under construction, and construction and installation work completed but not yet used in operation. Construction in progress
shall be accounted for separately and separately disclosed in the balance sheet.

Where the period of construction exceeds one year, and construction items are numerous and construction cost is substantial, construction
items may be accounted for separately. Construction in progress shall be accounted for on the following basis:

materials used in construction — provisions out in Article 23 of the System;

equipment to be installed — provisions set out in Article 30 of the System;

payment on account to contractors — the actual amount paid;

management expenses of the construction work — the actual management expenses incurred;

construction work undertaken by the enterprise itself — the direct materials, direct labour, direct mechanical work expenses and
attributable management expenses;

construction work undertaken by third party subcontractors — the amount paid to subcontractors and attributable management expenses;

installation of equipment — the cost of equipment including installation charges, trial run expenses and attributable management
expenses.

Equipment acquired or invested during the set-up period of the enterprise but not yet installed may also be accounted for as construction
in progress.

Article 34

Where there is spoilage or damage to the construction in progress, net losses resulting shall generally be accounted for as part of
the cost of construction in progress after deduction of the residual value and compensation from person(s) causing such losses or
from insurance companies. Net losses arising from spoilage or damage as a result of extraordinary causes shall be accounted for as
pre-operating expenses if the construction is undertaken during the set-up period and accounted for as non-operating expenses if
the asset has already been used in operation.

Net expenses arising from trial runs before the asset is used in operation shall be accounted for as part of the cost of construction
in progress. Where products produced during trial runs can be sold to third parties, the actual or estimated sale proceeds shall
be deducted from the cost of construction in progress.

Article 35

When the construction of an asset is completed and it is used in operation but the total cost of the asset is yet to be determined,
the asset shall be transferred to fixed assets at the estimated value based on the budgeted price or cost of the work, and shall
be depreciated according to the provisions set out in Article 31 of the System. The estimated value of the asset and its accumulated
depreciation shall be adjusted for after the actual cost of the asset is ascertained.

Chapter VII Intangible and Other Assets

Article 36

Intangible assets of enterprises with foreign investment include patents, proprietary technology, patents and trademarks, land occupancy
rights and other intangible assets, and shall be accounted for separately and separately disclosed in the balance sheet.

Intangible assets contributed by the investors shall be accounted for at the amount specified in the contracts, agreements or the
enterprise’s application document for incorporation including related expenses borne by the enterprise.

Intangible assets acquired by the enterprises shall be accounted for at cost.

Article 37

Intangible assets shall be amortized by equal installments over the beneficiary period from the time the enterprise starts deriving
beneficiary period from the intangible assets or, where there is no specified beneficiary period, over the estimated beneficiary
period.

Article 38

Other assets of enterprises with foreign investment include pre-operation expenses, exchange losses during the set-up period, deferred
investment losses and other deferred expenses to be amortized by installments, and shall be accounted for separately and separately
disclosed in the balance sheet.

Pre-operating expenses shall be accounted for based on cost incurred in relation to business registration fees, wages and salaries,
business trip expenses, staff training expenses, expenses incurred by the board of directors (or a joint management committee. The
same definition applies wherever reference is made to the board of directors.) and other expenses not included in the purchase or
construction of fixed assets or intangible assets.

Exchange losses during the set-up period shall be accounted for based on the amounts realized during the set-up period.

Deferred investment losses shall be accounted for based on the difference between the appraised value and the book value of the investments.

Deferred expenses shall be accounted for based on actual expenses incurred.

Article 39

Other fixed assets shall be amortized on the following basis:

Pre-operating expenses and exchange losses during the set-up period — by equal installments over a period of not less than 5 years
from the date the enterprise commences operation

Deferred investment losses — by equal installments over the investment period but not less than 10 years

Other deferred expenses — by equal installments over the estimated beneficiary period but not less than 10 years

Chapter VIII Current Liabilities, Long Term Liabilities and Other Liabilities

Article 40

Current liabilities of enterprises with foreign investment include short term borrowings, payables, deposits from customers (advance
deposits) and accrued expenses.

Short term borrowings, deposits from customers (advance deposits) and accrued expenses shall be accounted for separately. Payables
shall be accounted for separately where appropriate as bills payable, accounts payable, accrued payroll, tax payable, dividend payable
and other payables. Current liabilities denominated in multi-currencies shall be individually accounted for in their originating
currencies.

Staff and workers’ bonus and welfare fund and other funds, which are liabilities in nature, shall be accounted for as current liabilities.

Amounts payable after one year from the balance sheet date shall be separately disclosed under long term liabilities in the balance
sheet.

Article 41

Long term liabilities of enterprises with foreign investment include long term borrowings, redeemable bonds and amounts payable under
finance leases, and shall be accounted for separately and separately disclosed in the balance sheet.

Long term liabilities repayable within one year from the balance sheet date shall be separately disclosed under current liabilities
in the balance sheet.

Article 42

Redeemable bonds shall be accounted for based on the face value of the bonds issued. The difference between the proceeds of issue
and the face value of the bonds shall be accounted for as the premium or discount on issue and shall be accounted for separately
and separately disclosed as an addition to or a deduction from the redeemable bonds account in the balance sheet. Accrue

OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE ESTABLISHMENT OF THE KUNSHAN ECONOMIC AND TECHNOLOGICAL DEVELOPMENT ZONE

Category  SPECIAL ECONOMIC ZONES AND COASTAL ECONOMIC DEVELOPMENT ZONES Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-08-22 Effective Date  1992-08-22  


Official Reply of the State Council Concerning the Establishment of the Kunshan Economic and Technological Development Zone

(August 22, 1992)

    People’s Government of Jiangsu Province:

    The Report on the Request for the Listing of the Kunshan Economic and
Technological Development Zone in the Catalogue of National Development Zones,
submitted by your Province, has been received. We hereby make an official
reply as follows:

    The State Council has agreed to establish the Kunshan Economic and
Technological Development Zone, in which the policies, regarding levying the
income tax on enterprises with foreign investment of a production nature in
Economic and Technological Development Zones of open coastal cities at a
reduced rate of 15 percent, shall apply, but in which other policies in
Economic and Technological Development Zones of open coastal cities shall not
be cited as precedents.

    The planned area of the Kunshan Economic and Technological Development
Zone is 10 square kilometers, of which a 5 square kilometers area is to be
developed at the first phase. Its detailed scope shall be verified by the
Special Economic Zones Office under the State Council in consultation with
other relevant departments.





PROVISIONS ON SEARCH AND RESCUE OF CIVIL AIRCRAFT

Category  CIVIL AVIATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1992-12-28 Effective Date  1992-12-28  


Provisions of the People’s Republic of China on Search and Rescue of Civil Aircraft

Chapter I  General Provisions
Chapter II  Preparations for Search and Rescue
Chapter III  Conduct of Search and Rescue
Chapter IV  Penalty
Chapter V  Supplementary Provisions

(Approved by the State Council on December 8, 1992 and promulgated by

Decree No. 29 of the Civil Aviation Administration of China on December 28,
1992)
Chapter I  General Provisions

    Article 1  These Provisions are formulated to meet the requirements for
timely and efficient search and rescue of civil aircraft in emergency, so as
to obviate or minimize the casualties of persons and loss of property.

    Article 2  These Provisions are applicable to the search and rescue of all
civil aircraft in the territory of the People’s Republic of China, and on such
portion of the high seas where China shall undertake such search and rescue
operations as stipulated in the international treaties concluded or acceded to
by the People’s Republic of China.

    Article 3  In addition to the application of these Provisions, the search
and rescue of civil aircraft on the sea shall comply with the other provisions
governing search and rescue on the sea prescribed by the State Council.

    Article 4  The search and rescue of civil aircraft shall be conducted in
accordance with the following division of labour:

    (1) The Civil Aviation Administration of China (hereinafter referred to as
CAAC) shall be responsible for the overall direction of the search and rescue
of civil aircraft in the country;

    (2) The people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government shall be responsible for
the search and rescue of civil aircraft on land within their respective
administrative areas, and CAAC regional administrations (hereinafter referred
to as CARA) shall assist in such operations;

    (3) The national maritime search and rescue service shall be responsible
for the search and rescue of civil aircraft on the sea and the departments
concerned shall render support thereto.

    Article 5  The CAAC Search and Rescue Coordination Centre and CARA search
and rescue coordination centres shall undertake to coordinate the search and
rescue of civil aircraft on and over the land.

    Article 6  The Civil Aviation Search and Rescue Area of the People’s
Republic of China covers the territory of the People’s Republic of China and
such portion of the high seas where China shall undertake search and rescue
operations as stipulated in the international treaties concluded or acceded to
by the People’s Republic of China. The Civil Aviation Search and Rescue Area
shall be divided into several regional civil aviation search and rescue areas,
the delineation of which shall be published by CAAC.

    Article 7  The civil aviation shall be the main force in search and rescue
missions when aircraft is used, and in cases where civil aviation is
inadequate in force, the armed forces shall dispatch aircraft in support of
such missions.

    Article 8  In order to perform the urgent mission of the search and rescue
of civil aircraft, all localities, departments, units and personnel concerned
must take initiative in active coordination and fulfil the mission with all
efforts. Those units and individuals making outstanding achievements in search
and rescue operations shall be awarded by the organs at higher levels.
Chapter II  Preparations for Search and Rescue

    Article 9  Each CARA shall work out a programme for the search and rescue
of civil aircraft on and over the land by aircraft. The programme, after being
approved by CAAC, shall be submitted to the people’s governments of provinces,
autonomous regions and municipalities directly under the Central Government
for file.

    Article 10  The maritime search and rescue services of coastal provinces,
autonomous regions and municipalities directly under the Central Government
shall work out a programme for the search and rescue of civil aircraft by
vessels and aircraft at sea. The programme, after being approved by the
national maritime search and rescue service, shall be submitted to the
people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government and CAAC for file with copies to CARAs
concerned at the same time.

    Article 11  The programme of search and rescue of civil aircraft shall
contain the following provisions:

    (1) provisions concerning the units to conduct search and rescue
operations by aircraft and vessels, the types of aircraft and vessels, and the
preparedness for the operations;

    (2) provisions concerning the airports to be used by aircraft and ports to
be used by vessels, the area for the search and rescue operations, and the
services in support of such operations;

    (3) provisions concerning the coordination between the vessels and the
aircraft conducting the search and rescue operations on the sea;

    (4) provisions concerning the request through consultation for local
garrison to dispatch aircraft or vessels to support the search and rescue
operation when the force of civil aviation conducting the operation is
inadequate.

    Article 12  The CARAs and the maritime search and rescue services of
coastal provinces, autonomous regions and municipalities directly under the
Central Government shall organize periodical search and rescue exercises in
the light of approved programmes.

    Article 13  The communications used in the search and rescue of civil
aircraft shall conform to the following provisions:

    (1) The civil aviation air traffic control units and the aircraft
undertaking search and rescue mission shall be equipped with communication
facilities with aeronautical emergency frequency 121.5 MHz, and are to be
equipped, step by step, with communication facilities with aeronautical
emergency frequency 243 MHz;

    (2) Aircraft undertaking search and rescue mission on  the  sea shall be
equipped with communication facilities with distress frequency 2,182 KHz;

    (3) Some of the aircraft undertaking search  and  rescue mission shall be
equipped with homing devices so as to enable themselves to home in on the
emergency location beacon of aircraft in distress according to its
transmission signals, and in addition, with the facilities to communicate with
search and rescue vessels on modulation frequency 156.8 MHz.

    Article 14  CARA search and rescue coordination centres shall establish
direct communication with the maritime search and rescue services of relevant
provinces, autonomous regions and municipalities directly under the Central
Government.

    Article 15  The units conducting search and rescue mission shall be
responsible for preparing the survival supplies to be airdropped to personnel
in distress in accordance with the following stipulations:

    (1) medical and first aid supplies_red;

    (2) food and water_blue;

    (3) protective clothing and blankets_yellow;

    (4) other supplies_black;

    (5) mixed supplies in the same container or package_mixed colours.

    Instructions on the use of survival supplies shall be enclosed in each
container or package in Chinese, English and another optional language.
Chapter III  Conduct of Search and Rescue

    Article 16  Any unit or person having observed or listened in to the
emergency of a civil aircraft shall immediately notify and CARA search and
rescue coordination centre concerned;when the position of the civil aircraft
in emergency is found on land, the local government shall be notified at the
same time; when it is at sea, the local maritime search and rescue service
shall be notified at the same time.

    Article 17  Upon receiving the information of a civil aircraft in
emergency, the CARA search and rescue coordination centre must make a
judgement immediately and take search and rescue measures in accordance with
the provisions of Article 19, Article 20 and Article 21,  as  appropriate, of
these Provisions, and report or notify thereon  to  the CAAC Search and Rescue
Coordination Centre and units concerned in time accordingly.

    Article 18  The state of emergency of a civil aircraft referred to in
these Provisions is classified into the following three phases:

    (1) Uncertainty phase refers to a situation where uncertainty exists as to
the safety of a civil aircraft, including such cases where:

    (i) the air traffic control unit cannot establish communication with the
civil aircraft in prescribed time;

    (ii) the civil aircraft does not land within prescribed time, and with no
other information available.

    (2) Alert phase refers to a situation where apprehension exists as to the
safety of a civil aircraft, including such cases where:

    (i) the air traffic control unit still cannot establish contact with a
civil aircraft in uncertainty phase;

    (ii) the operating capability of the civil aircraft has been impaired, but
not yet to the extent that a forced landing is likely;

    (iii) communication has not been reestablished with the civil aircraft
which has been cleared to land and the aircraft has failed to land within five
minutes of the estimated time of landing.

    (3) Distress phase refers to a situation where there is a reasonable
certainty that a civil aircraft is threatened by grave and imminent danger and
consequently requires immediate rescue, including such cases where:

    (i) it is difficult for the civil aircraft in alert phase to proceed
further according to calculation of fuel consumption;

    (ii) the operating capability of the civil aircraft has been gravely
impaired to the extent that a forced landing is likely;

    (iii) the civil aircraft has made a forced landing or has crashed.

    Article 19  With regard to civil aircraft in uncertainty phase, the CARA
search and rescue coordination centre shall:

    (1) determine the area to be searched in the light of specific conditions;

    (2) notify to activate relevant facilities such as aeronautic stations,
radio navigation aids, direction finders and radars with a view to locating
the aircraft;

    (3) establish contact with the civil aircraft as soon as possible and take
necessary measures.

    Article 20  With regard to civil aircraft in alert phase, the CARA search
and rescue coordination centre shall:

    (1) alert immediately the units concerned;

    (2) require the aircraft and vessels undertaking the search and rescue
mission to be immediately on the alert;

    (3) urge the checking of all electronic facilities, and continue to
establish contact with and search for the civil aircraft in uncertainty phase;

    (4) organize the guidance of the civil aircraft to land at the nearest
airport in accordance with the extent of the impairment of its operating
capability and the opinion of the pilot-in-command;

    (5) promptly find out, jointly with the airport where the civil aircraft
is to land, the situation of the aircraft which has been cleared to land but
failed to land within five minutes of the estimated time of landing, and take
necessary measures.

    Article 21  With regard to civil aircraft in distress phase, the CARA
search and rescue coordination centre shall:

    (1) notify immediately the units concerned that a civil aircraft is in
distress;

    (2) estimate by analysis the possible distressed area of the civil
aircraft which has run out of fuel and the position of which is still unknown,
and notify search and rescue units to send people or dispatch aircraft and
vessels to conduct immediate search and rescue operations;

    (3) notify the search and rescue units to dispatch aircraft to escort the
civil aircraft, the operating capability of which has been impaired so gravely
that a forced landing is likely, or dispatch people or aircraft and vessels to
the predetermined site of forced landing to conduct rescue operations;

    (4) report immediately to the people’s governments of the relevant
provinces, autonomous regions and municipalities directly under the Central
Government when the position of the civil aircraft having made a forced
landing or having an accident is on land; when the position is at sea, notify
immediately the maritime search and rescue services of relevant coastal
provinces, autonomous regions and municipalities directly under the Central
Government.

    Article 22  Upon receiving the report or notification of the forced
landing or accident of a civil aircraft, the people’s governments of the
relevant provinces, autonomous regions and municipalities directly under the
Central Government or the maritime search and rescue services of the relevant
coastal provinces, autonomous regions and municipalities directly under the
Central Government shall immediately organize the departments concerned and
the local garrison to conduct search and rescue operations, and designate a
personincharge at the scene of accident.

    Article 23  The main duties of the person-in-charge at the scene of
accident are as follows:

    (1) to organize the rescue of survivors;

    (2) to take measures to deter the civil aircraft from bursting into fire
or to extinguish the fire;

    (3) carefully to protect the scene of accident of the civil aircraft, the
scene that has to be disrupted for the rescue of personnel or fire fighting
shall be photographed or videotaped;

    (4) carefully to protect the distressed civil aircraft and the property of
its occupants.

    Article 24  Prior to the arrival of the designated person-in-charge at the
scene of accident, the competent person of the rescue unit that first arrives
at the scene shall act as provisional person-in-charge at the scene and
exercise the duties provided in Article 23 of these Provisions, and shall be
responsible to hand over the work to the person-in-charge at the scene after
the latter’s arrival.

    Article 25  The CARA search and rescue coordination centre shall manage to
notify the crew of the civil aircraft in emergency of the rescue measures
already taken.

    Article 26  Radio communication shall be used to establish contact among
the aircraft and vessels conducting search and rescue mission, survivors and
search and rescue teams. In case of non-availability of such equipment or the
failure of radio communication, international search and rescue signals as
stipulated in the Appendix to these Provisions shall be used for
communication.

    Article 27  If the state of emergency of a civil aircraft no longer exists
or if the search and rescue operation may be terminated, the CARA search and
rescue coordination centre shall timely issue closure notification of the
state of emergency to units concerned in accordance with prescribed
procedures.
Chapter IV  Penalty

    Article 28  Whoever violates of these Provisions by one of the following
acts shall be subjected to administrative sanction by the unit where he
serves, or by a higher authority. Where the offence constitutes a crime, the
criminal responsibility shall be investigated according to law:

    (1) Great losses have been incurred due to the failure to act actively and
to coordinate with each other in performing the search and rescue mission;

    (2) Losses have been aggravated due to the failure to actively perform his
duties or to obey directions;

    (3) Losses have been incurred due to neglect of duty, improper judgement
on the state of emergency of a civil aircraft, improper disposition of the
emergency or forfeit of chance.
Chapter V  Supplementary Provisions

    Article 29  The expenses incurred by aircraft conducting search and rescue
missions may be subsidized by the State. Detailed method of subsidy shall be
formulated by the department concerned in conjunction with the financial
department through consultation.

    Article 30  CAAC shall be responsible for the interpretation of these
Provisions.

    Article 31  These Provisions shall go into effect as of the date of
promulgation.





CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON QUESTIONS CONCERNING APPLICABLE REGULAR TAX REDUCTION AND EXEMPTION ON INCOME FROM LIQUIDATION BY ENTERPRISE WITH FOREIGN INVESTMENT

The State Administration of Taxation

Circular of the State Administration of Taxation on Questions Concerning Applicable Regular Tax Reduction and Exemption on Income
from Liquidation by Enterprise with Foreign Investment

GuoShuiFa [1993] No.8

June 15, 1993

With regard to the question as to whether or not enterprise with foreign investment which conduct liquidation within the regular tax
reduction and exemption period as stipulated in Article 8 of the Income Tax Law of the People’s Republic of China for Enterprise
with Foreign Investment and Foreign Enterprises (hereinafter referred to as Tax Law) can enjoy enterprise income tax reduction and
exemption, it is hereby clarified as follows:

The stipulation set in Article 8 of the Tax Law which states “Productive enterprise with foreign investment scheduled to operate
for a period over 10 years shall be exempted from enterprise income tax in the first two profit-making years and be granted a 50
percent enterprise income tax reduction in the third to the fifth year” applies only to the income gained during the enterprise’s
operational period. Therefore, income gained from liquidation which is conducted during the above- mentioned tax reduction and exemption
period shall not be granted enterprise income tax reduction and exemption in accordance with Article 8 of the Tax Law.

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

 
The State Administration of Taxation
1993-06-15

 



CIRCULAR OF THE STATE COUNCIL CONCERNING ENFORCING TAX ADMINISTRATION AND STRICTLY CURBING TAX EXEMPTION AND REDUCTION

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1993-07-23 Effective Date  1993-07-23  


Circular of the State Council Concerning Enforcing Tax Administration and Strictly Curbing Tax Exemption and Reduction



(July 23, 1993)

    This year, based on the foundation of rapid development in national
economy, there is also an increase in tax revenue, but, its increasing
range does not correspond to that of production, one of the important
reasons of which is that, some localities and units violate state tax law,
overstep their competence, provide tax reduction and exemption without
authorization and enlarge the scope of tax exemption and reduction, formulate
policies for tax incentives without authorization, prolong time limit for tax
exemption and reduction, contract turnover tax, even evade state taxation with
illegal means and consequently cause serious loss of taxation. For purpose of
enforcing state tax law, to guarantee the timely and full turning of national
tax which should be submitted into State Treasury, to fulfill the tax task of
this year better and increase financial revenue, to curb the national
financial deficit within the budgeted amount, and promote the development
of national economy in a quicker and better way, some issues relating to
enforcing tax administration and strict curbing of tax exemption and
reduction are hereby notified as follows:

    1. Strictly curbing tax (including tariff) exemption and reduction this
year, the State shall issue no more new policies for tax exemption and
reduction, all provisional and difficulty-caused tax exemption and reduction
shall be stopped for examination and approval. The tax exemption and reduction
regulated by national policy shall be examined and approved strictly according
to tax administrative system, those among which, on expiration of their tax
exemption and reduction period according to related policy, shall resume to
their tax liability immediately. The withholding agency system shall be
strictly applied for Individual Income Regulation Tax, those who do not
perform their withholding liability, shall pay the tax due, otherwise, they
shall be handled according to the provisions in the Law of the People’s
Republic of China on the Administration of Tax Collection. Administration of
the regulation tax on investment orientation for fixed assets shall be
enforced and there shall be no exemption and reduction.

    2. Earnestly clear up tax incentive policies made in illegal and
unauthorized way. All kinds of tax incentive policies (including foreign
related tax policies) made be respective regions and departments which
overstepped their own authority and at their own discretion in violation of
the provisions of the Law on the Administration of Tax Collection and policies
of the State shall be invalidated uniformly. All kinds of economic
development zones with no approval from the State Council shall not benefit
uniformly from respective tax incentive policies provided by the State for
the economic development zones at national level.

    3. Take decisive measures, resolutely correct wrong practice of
contracting turnover tax. Turnover tax being the main tax of the State and
the main source of state revenue, must be collected according to law and
brought into line with budgetary system. No matter what kind of finance
system is followed by respective regions and departments, it is not
permissible to contract turnover tax for enterprises at one’s own discretion.
All whose who have contracted turnover tax by themselves must correct it
immediately.

    4. Clear up delinquent tax in earnest. The system to collect additional
pecuniary penalty for delinquent payment must be strictly applied; For those
in arrears with tax payment, tax departments or customs office shall inform
banks to withhold the tax due and turn it into State Treasury. Banks should
ensure the timely and full submission of tax to the Treasury, it is not
allowed to seize or hold tax, otherwise, leading personnel of the work units
of the seizers and holders shall be investigated for their responsibility.

    5. Enforce administration concerning tax refund for exportation. Strictly
implement `the 2-invoices-and-2-forms` (i.e. specified tax invoice, invoice
of input goods and declaration form for exportation, verification form for
payment receipt) system, no refund is allowed for cases inconsistent with
the provisions. Those who try to obtain refund by fraud shall be severely
dealt with according to law.

    6. Actually enforce administration of tax collection for individual
industrial and commercial households, private-owned enterprises,
collective-owned enterprises and enterprises with foreign investment. To
individual industrial and commercial households, a general adjustment on their
fixed tax amount shall be carried out timely in combination with the
adjustment on business tax rate. Strict administration of tax collection for
large private-owned enterprises shall be enforced vigorously, the book-keeping
and financial system should be set up and the tax should be levied according
to verification. To enterprises with foreign investment, effective measures
should be taken to strengthen the work against tax avoidance and to block
the loopholes of fiscal omission and evasion through transfer of profits by
enterprises with foreign investment, to ensure that the tax due is
collected fully.

    7. Regarding respective kinds of banks, financial, insurance enterprises,
and nonbank financial institutions set up by respective regions and
departments, their income tax liability must be fulfilled in accordance with
the regulations of the State. Henceforth, income tax on respective newly
established banks, financial, insurance enterprises by respective regions and
departments shall be paid uniformly to the central finance.

    8. Strictly enforce administration of tax collection of the `2 funds`
(i.e. the key construction fund for energy and communication and the
budgetary adjustment fund). Respective local governments at all levels and
departments concerned are not allowed to provide tax exemption or reduction
on the `2 funds` without authorization. Those who have overstepped their
authority by granting reduction or exemption must immediately make correction.
For the ones who have omitted or are owing the `2 funds`, a plan of making
the payment due should be worked out and the funds in arrears shall be paid
within a limited time period. For the respective localities who have failed to
perform the task of turning the `2 funds` to the center due to tax exemption
and reduction without authorization, the sharing part of the localities from
the `2 funds` shall be reduced and deducted accordingly by the central finance.

    People’s Governments at all levels should further enforce the leadership
in respect of taxation, vigorously support legal tax collection by tax
organizations. Departments of industrial and commercial administration, public
security, supervision, auditing and judicature should energetically support
and coordinate with tax organizations in the performance of their
responsibilities according to law. Tax organizations at all levels should
strictly enforce the law on tax collection, abide by the principles and
collect tax in accordance with law. Taxable units and individuals should
increase the conscientiousness of having overall point of view and a sense
of legal system, and pay tax spontaneously according to law. With a view to
safeguarding the sanctities of the laws on finance and taxation and to
enhancing macrocontrol and supervision, the State Council has decided that,
starting from August a general nation-wide check on taxation and finance shall
be carried out, with the emphasis that whether respective taxes and the
`2 funds` have been turned to the State Treasury according to national
policies. In the general check respective omitted revenue should be recovered
and turned over to the State Treasury, additionally the units and those
directly responsible who repeatedly break the rules in frequent checks, and
violate laws with full knowledge of them shall be penalized with more
severity in accordance with law.





REGULATIONS ON THE MONETARY POLICY COMMISSION OF THE PEOPLE’S BANK OF CHINA

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1997-04-15 Effective Date  1997-04-15  


Regulations on the Monetary Policy Commission of the People’s Bank of  China

Chapter I  General Provisions
Chapter II  Organization
Chapter III  Rights and Obligations of Members
Chapter IV  Working Procedures
Chapter V  Supplementary Provision

(Promulgated by Decree No. 215 of the State Council of the People’s

Republic of China on April 15, 1997)
Chapter I  General Provisions

    Article 1  These Regulations are formulated in pursuance of the
provisions of the Law on the People’s Bank of China for the purpose
of being instrumental to the correct formulation of the state monetary
policy.

    Article 2  The Monetary Policy Commission is the advisory and discussion
body of the People’s Bank of China in the formulation of monetary policy.

    The Monetary Policy Commission shall be formed pursuant to these
Regulations.

    Article 3  The functions and responsibilities of the Monetary Policy
Commission are to discuss the following monetary policy matters and put
forth proposals on the basis of comprehensive analysis of the macroeconomic
situation in accordance with the macroeconomic regulatory and control goals
of the State:

    (1) formulation and adjustment of monetary policy;

    (2) monetary policy control goals within a specified period;

    (3) employment of monetary policy tools;

    (4) important measures concerning monetary policy; and

    (5) coordination between monetary policy and other macroeconomic policies.

    Article 4  The Monetary Policy Commission carries out its functions and
responsibilities through its plenary meeting.
Chapter II  Organization

    Article 5  The Monetary Policy Commission shall be composed of the
personnel of the following units:

    Governor of the People’s Bank of China;

    Two Deputy Governors of the People’s Bank of China;

    One Vice President of the State Planning Commission;

    One Vice President of the State Economic and Trade Commission;

    One Vice Minister of the Ministry of Finance;

    Director General of the State Administration of Foreign Exchange Control;

    President of China Securities Supervisory and Control Commission;

    Two Governors of commercial banks of sole state proprietorship; and

    One financial specialist.

    Adjustment in the units of which the Monetary Policy Commission is
composed shall be determined by the State Council.

    Article 6  The Governor of the People’s Bank of China, Director General
of the State Administration of Foreign Exchange Control and President of China
Securities Supervisory and Control Commission are members with automatic
qualification of the Monetary Policy Commission.

    Candidacy for other members of the Monetary Policy Commission shall be
nominated by either the People’s Bank of China or the People’s Bank of China
in consultation with the departments concerned and submitted to the State
Council for appointment.

    Article 7  The Monetary Policy Commission shall have one President and
one Vice President. The Governor of the People’s Bank of China shall be the
President; and the Vice President shall be nominated by the President.

    Article 8  Members of the Monetary Policy Commission should have the
following qualifications:

    (1) He or she should normally be under 65 years of age with citizenship
of the People’s Republic of China;

    (2) He or she should be upright and honest in performing official duties
with no law-breaking and discipline-breaking record; and

    (3) He or she should have expertise in such areas as macro-economy,
monetary matters and banking and practical experiences, and be conversant
with relevant laws, regulations and policies.

    Article 9  The financial specialist on the Monetary Policy Commission
should, in addition to meeting the qualifications prescribed in Article 8 of
these Regulations, have the following qualifications:

    (1) He or she should have senior special technical post_title with more than
ten years in financial research; and

    (2) He or she should be a non-public servant of the State and have no
position in any profit-making institution.

    Article 10  The term of office of membership of the governors of the
commercial banks with sole state proprietorship and the financial specialist
on the Monetary Policy Commission shall be two years.

    Article 11  Any member on the Monetary Policy Commission having any of
the following circumstances, the People’s Bank of China shall submit a
report to the State Council for the relief of the said member from the
membership of the Monetary Policy Commission:

    (1) He or she who submits a written application for resignation;

    (2) He or she who is no longer capable of representing the unit concerned
to serve as a member of the Monetary Policy Commission due to change in
position during the term of office; and

    (3) He or she who fails to fulfil obligations of a member or is incapable
of carrying out the duties as a member owing to various reasons.

    Article 12  Change in the membership of the Monetary Policy Commission
shall be handled in accordance with the provisions of Article 6 of these
Regulations.

    Article 13  The Monetary Policy Commission shall set up a secretariat
as the standing office of the Monetary Policy Commission.
Chapter III  Rights and Obligations of Members

    Article 14  Members of the Monetary Policy Commission have equal rights
and obligations.

    Article 15  Members of the Monetary Policy Commission enjoy the
following rights in the fulfillment of their duties and responsibilities:

    (1) to get to know the situation in financial and monetary policies;

    (2) to express views on questions discussed in the Monetary Policy
Commission; and

    (3) to put forward proposals to the Monetary Policy Commission on
monetary policy questions and have the right to vote.

    Article 16  Members of the Monetary Policy Commission should be
present at the meetings of the Monetary Policy Commission and put forth
suggestions and proposals relating to monetary policy matters.

    In case of inability of a member to be present at the meeting owing to
extraordinary circumstances, he or she should delegate a relevant person
who is conversant with the situation as his or her representative to take
part in the meeting with his or her written remarks, and the representative
has no right to vote.

    Article 17  Members of the Monetary Policy Commission should scrupulously
abide by their duties and not abuse their powers and engage in malpractices
for selfish purposes.

    Article 18  Members of the Monetary Policy Commission should keep state
secrets and commercial secrets, comply with the working rules of the
Monetary Policy Commission and shall not divulge monetary policy and
related information in contravention of provisions.

    Any member of the Monetary Policy Commission divulging state secrets and
commercial secrets in contravention of provisions shall be removed from the
membership of the Monetary Policy Commission and his or her legal
responsibilities investigated in accordance with law.

    Article 19  Any member of the Monetary Policy Commission shall not
openly object to the monetary policy formulated according to legal procedures
during his or her term of office and within one year after leaving the post.
Chapter IV  Working Procedures

    Article 20  The Monetary Policy Commission shall practise the system of
regular meetings.

    An ad hoc meeting can be held on the proposal of the President of the
Monetary Policy Commission or the joint proposal of over one third of the
members.

    Article 21  The secretariat of the Monetary Policy Commission should,
ten days before the convocation of the regular meeting of the Monetary Policy
Commission, deliver the topics of the meeting and relevant materials to all
the members; and during the meeting provide latest statistics and relevant
technical analyses to all the members.

    Article 22  The meeting of the Monetary Policy Commission can only be
held when there are over two thirds of the members present.

    The meeting of the Monetary Policy Commission shall be presided over by
the President. The meeting shall be presided over by the Vice President
on behalf of the President in case of the inability of the President to
carry out his or her duties due to unforeseen reasons.

    Article 23  Various views expressed at the meeting of the Monetary
Policy Commission should be recorded in the form of summary of minutes.

    A monetary policy motion put forward by members of the Monetary Policy
Commission shall, when passed by vote by over two thirds of the members
present at the meeting, form a proposal of the Monetary Policy Commission.

    Article 24  The People’s Bank of China should, while submitting its
report on proposal for decision of yearly money supply, interest rates,
exchange rates or other important monetary policy matters to the State
Council for approval, enclose the proposal of the Monetary Policy Commission
or the summary of minutes of its meeting as appendices.

    The People’s Bank of China should, while submitting its report on the
decision of other related matters concerning the monetary policy to the
State Council for the record, also submit the proposal of the Monetary
Policy Commission or the summary of minutes of its meeting for the record.

    Article 25  Internal working rules for the Monetary Policy Commission
shall be worked out by the Monetary Policy Commission.
Chapter V  Supplementary Provision

    Article 26  These Regulations shall come into force as of the date of
promulgation.





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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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