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REGULATIONS ON THE EXPLOITATION OF OFFSHORE PETROLEUM RESOURCES IN COOPERATION WITH FOREIGN ENTERPRISES

Regulations of the People’s Republic of China on the Exploitation of Offshore Petroleum Resources in Cooperation with Foreign Enterprises

     (Effective Date:1982.01.30–Ineffective Date:)

CONTENTS

CHAPTER I GENERAL PRINCIPLES

CHAPTER II RIGHTS AND OBLIGATIONS OF THE PARTIES TO PETROLEUM CONTRACTS

CHAPTER III PETROLEUM OPERATIONS

CHAPTER IV SUPPLEMENTARY PRINCIPLES

CHAPTER I GENERAL PROVISIONS

   Article 1. In the interests of developing the national economy and expanding international economic and technological cooperation, these Regulations
are formulated, on the premise of safeguarding national sovereignty and economic interests, to permit foreign enterprises to participate
in the cooperative exploitation of offshore petroleum resources of the People’s Republic of China.

   Article 2. All petroleum resources in the internal waters, territorial sea and continental shelf of the People’s Republic of China and in all
sea areas within the limits of national jurisdiction over the maritime resources of the People’s Republic of China are owned by the
People’s Republic of China.

In the sea areas referred to in the preceding paragraph, all buildings and structures set up and vessels operating to exploit petroleum,
as well as the corresponding onshore oil (gas) terminals and bases, shall be under the jurisdiction of the People’s Republic of China.

   Article 3. The Government of the People’s Republic of China shall protect, in accordance with the law, the investments of foreign enterprises
participating in the cooperative exploitation of offshore petroleum resources, the profits due to them and their other legitimate
rights and interests, and shall protect, in accordance with the law, the cooperative exploitation activities of foreign enterprises.

All activities for the cooperative exploitation of offshore petroleum resources within the scope of these Regulations shall be subject
to the laws and decrees of the People’s Republic of China and relevant provisions of the State; all persons and enterprises taking
part in petroleum operations shall be subject to the laws of China and shall accept inspection and supervision by the competent authorities
concerned of the Chinese Government.

   Article 4. The Ministry of Petroleum Industry of the People’s Republic of China shall be the competent authority in charge of the exploitation
of offshore petroleum resources in cooperation with foreign enterprises, and shall determine the forms of cooperation and demarcate
areas of cooperation in accordance with the zones and the surface areas of cooperation designated by the State; it shall work out
a plan for the exploitation of offshore petroleum resources in cooperation with the foreign enterprises in accordance with long-term
state economic plans, formulate operation and management policies for the cooperative exploitation of offshore petroleum resources
and examine and approve the overall development program for offshore oil (gas) fields.

   Article 5. The China National Offshore Oil Corporation (CNOOC) shall have exclusive and overall responsibility for the work of exploiting offshore
petroleum resources in the People’s Republic of China in cooperation with foreign enterprises.

CNOOC shall be a state corporation with the qualifications of a juridical person and shall have the exclusive right to explore for,
develop, produce and market the petroleum within the zones of cooperation with foreign enterprises.

CNOOC may, as the work requires, establish regional corporations, specialized corporations and overseas representative offices to
carry out the tasks delegated by the head office.

   Article 6. CNOOC shall, by means of calling for bids and signing petroleum contracts, cooperate with foreign enterprises to exploit petroleum
resources in accordance with the zones, surface areas and areas of cooperation with foreign enterprises for the exploitation of petroleum
resources.

The petroleum contracts referred to in the preceding paragraph shall come into force after approval by the Foreign Investment Commission
of the People’s Republic of China.

All documents signed by CNOOC for other forms of cooperative exploitation of petroleum resources utilizing technology and funds provided
by foreign enterprises shall also be subject to approval by the Foreign Investment Commission of the People’s Republic of China.

CHAPTER II RIGHTS AND OBLIGATION OF THE PARTIES TO PETROLEUM CONTRACTS

   Article 7. CNOOC shall cooperate with foreign enterprises to exploit offshore petroleum resources by means of entering into petroleum contracts,
and, unless otherwise specified by the Ministry of Petroleum Industry or in a petroleum contract, the foreign enterprise that is
one party to the petroleum contract (hereafter “foreign contractor”) shall provide the investment to carry out exploration, be responsible
for exploration operations and bear all exploration risks; after a commercial oil (gas) field is discovered, both the foreign contractor
and CNOOC shall provide the investment for its cooperative development, and the foreign contractor shall be responsible for the development
operations and production operations until CNOOC takes over the production operations when conditions permit as provided in the petroleum
contract. The foreign contractor, in accordance with the provisions of the petroleum contract, may recover its investment and expenses
and receive remuneration out of the petroleum produced.

   Article 8. The foreign contractor may export the petroleum due to it and the petroleum it purchases, and may also remit abroad, in accordance
with the law, the investment it recovers, its profits and its other legitimate income.

   Article 9. All Chinese enterprises and foreign enterprises participating in the cooperative exploitation of offshore petroleum resources shall
pay taxes in accordance with the law and shall pay mining royalties.

All employees of the enterprises referred to in the preceding paragraph shall pay individual income tax in accordance with the law.

   Article 10. The equipment and material imported for carrying out the petroleum contract shall be subject to tax at a reduced rate, or exempted
from tax, or given other preferential tax treatment in accordance with State provisions.

   Article 11. The foreign contractor shall open a bank account in accordance with the provisions of the Provisional Regulations on Foreign Exchange
Control of the People’s Republic of China.

   Article 12. In carrying out the petroleum contract, the foreign contractor shall use appropriate and advanced technology and management experience
and shall be obliged to transfer the technology and pass on the experience to the personnel of the Chinese side involved in carrying
out the petroleum contract (hereafter “Chinese personnel”); in petroleum operations, the foreign contractor must give preference
in employment to Chinese personnel, progressively increase the percentage of Chinese personnel and train Chinese personnel in a planned
way.

   Article 13. In carrying out the petroleum contract, the foreign contractor must promptly and accurately report to CNOOC on the situation of petroleum
operations; and it must acquire complete and accurate date, records, samples, vouchers and other original data with respect to various
aspects of the petroleum operations, and regularly submit to CNOOC necessary data and samples as well as various technological, economic,
financial and accounting, and administrative reports.

   Article 14. In carrying out the petroleum contract, the foreign contractor shall establish a branch or subsidiary or representative office within
the territory of the People’s Republic of China and fulfil registration formalities in accordance with the law.

The domiciles of the offices referred to in the preceding paragraph shall be determined through consultation with CNOOC.

   Article 15. The provisions of Articles 3, 8, 9, 10 and 14 of these Regulations shall apply, by analogy, to foreign subcontractors that render
services in connection with the petroleum operations.

CHAPTER III PETROLEUM OPERATIONS

   Article 16. In order to achieve the highest possible oil recovery factor, the operator must, in accordance with these Regulations and the relevant
provisions promulgated by the Ministry of Petroleum Industry on the exploitation of petroleum resources and by taking account of
international practice, formulate an overall development program for the oil (gas) field and implement production operations.

   Article 17. In carrying out the petroleum contract, the foreign contractor shall use the existing bases within the territory of the People’s
Republic of China, and, if new bases are needed, they must be established within the territory of the People’s Republic of China.

The specific locations of the new bases referred to in the preceding paragraph, and other arrangements that may be necessary in special
circumstances, must all be subject to the written approval of CNOOC.

   Article 18. CNOOC shall have the right to send personnel to join the foreign operator in making master designs and engineering designs for carrying
out the petroleum contract. Design corporations within the territory of the People’s Republic of China shall have priority in entering
into subcontracts for the master designs and engineering designs mentioned above, provided that their terms are competitive.

   Article 19. With respect to all facilities required to be built in carrying out the petroleum contract, including artificial islands, platforms,
buildings and structures, when signing subcontracts, the operator must give preference to manufacturing plants and engineering corporations
within the territory of the People’s Republic of China, provided that they are competitive in terms of quality, price, term of delivery
and services.

   Article 20. With respect to the equipment and materials required to carry out the petroleum contract, the operator and subcontractors must give
preference to procuring and utilizing equipment and materials manufactured and supplied by the People’s Republic of China, provided
that these are competitive.

   Article 21. With respect to services that are required to carry out the petroleum contract, such as those for geophysical prospecting, well-drilling,
diving, aircraft, ships and bases, the operator and subcontractors must enter into subcontracts and service contracts with relevant
departments within the territory of the People’s Republic of China, provided that they are competitive in terms of price, efficiency
and services.

   Article 22. The ownership of all assets purchased or built by the foreign contractor to carry out the petroleum contract in accordance with the
plan and budget, excluding equipment leased from a third party, shall belong to CNOOC after the foreign contractor’s investment has
been compensated as provided for, and, within the term of the contract, the foreign contractor may continue to use those assets in
accordance with the provisions of the contract.

   Article 23. CNOOC shall have the ownership of all of the data, records, samples, vouchers and other original data with respect to the petroleum
operations stipulated in Article 13 of these Regulations.

The utilization and transfer, donation, exchange, sale and publication of the previously mentioned data, records, samples, vouchers
and other original data and their export and transmission from the People’s Republic of China all must be conducted in accordance
with the “Provisions for the Control of Data” formulated by the Ministry of Petroleum Industry.

   Article 24. In the course of implementing petroleum operations, the operator and subcontractors shall comply with the relevant laws and provisions
on environmental protection and safety of the People’s Republic of China, and shall, by taking account of international practice
when conducting operations, protect fishery resources and other natural resources and prevent the environment, including the air,
sea, rivers, lakes and land, from being polluted or damaged.

   Article 25. The petroleum produced within the petroleum contract area shall be landed in the People’s Republic of China or may be exported from
oil (gas) metering points on offshore terminals. In case such petroleum has to be landed at a point outside the People’s Republic
of China, the approval of the Ministry of Petroleum Industry must be obtained.

   Article 26. In case of war, threat of war or other state of emergency, the Chinese Government shall have the right of compulsory purchase or
requisition with respect to a portion or all of the petroleum earned or purchased by the foreign contractor.

CHAPTER IV SUPPLEMENTARY PRINCIPLES

   Article 27. Any dispute arising between foreign and Chinese enterprises during the cooperative exploitation of offshore petroleum resources shall
be settled through friendly consultations. If it cannot be resolved through consultation, mediation and arbitration may be conducted
by an arbitration body of the People’s Republic of China, or the parties to the contract may agree upon arbitration by another arbitration
body.

   Article 28. In case an operator or subcontractor violates the provisions of these Regulations in implementing petroleum operations, the Ministry
of Petroleum Industry shall have the right to issue a warning and set a deadline for correction. If no correction can be made prior
to the specified deadline, the Ministry of Petroleum Industry shall have the right to adopt necessary measures, even to the extent
of suspending implementation of petroleum operation. All economic losses caused as a result of this shall be borne by the responsible
party.

A party responsible for serious violation of these Regulations may be fined by and/or even be subject to suit before the judicial
authorities filed by the Ministry of Petroleum Industry.

   Article 29. The terms used in these Regulations shall have the following definitions:

(1) “Petroleum” means crude oil or natural gas deposited underground, currently being extracted or already extracted.

(2) “Exploitation” means, in general, the exploration for and development, production and marketing of petroleum, as well as other
related activities.

(3) “Petroleum contract” means a contract signed, in accordance with the law, between CNOOC and foreign enterprises for the cooperative
exploitation of offshore petroleum resources of the People’s Republic of China, including the exploration for and development and
production of petroleum.

(4) “Contract area” means a surface area designated within a sea area demarcated by geographical coordinates in the petroleum contract
for the cooperative exploitation of petroleum resources.

(5) “Petroleum operations” means all exploration, development and production operations and other related activities conducted in
carrying out the petroleum contract.

(6) “Exploration operations” means all work done to locate the petroleum-bearing traps by means of geological, geophysical and geochemical
methods and including drilling exploratory wells, etc., and all work done to determine the commerciality of discovered petroleum
traps, including appraisal drilling, feasibility studies and preparation of the overall development program for an oil (gas) field.

(7) “Development operations” means projects, such as those for design, construction, installation and drilling, and corresponding
research work, conducted from the date of the approval of the overall development program for an oil (gas) filed by the Ministry
of Petroleum Industry, in order to bring about petroleum production, including production activities carried out before the commencement
of commercial production.

(8) “Production operations” means all operations for producing petroleum conducted after the date of commencement of the commercial
production of an oil (gas) field and related activities, such as extraction, injection, production stimulation, processing, storage
and transportation and lifting of petroleum and other operations.

(9) “Foreign contractor” means a foreign enterprise that signs a petroleum contract with CNOOC. The foreign enterprises may be a corporation
or a consortium of corporations.

(10) “Operator” means an entity that is responsible for implementing the operations pursuant to the provisions of the petroleum contract.

(11) “Subcontractor” means an entity that renders services to the operator.

   Article 30. Rules for the implementation of these Regulations shall be formulated by the Ministry of Petroleum Industry.

   Article 31. These Regulations shall come into force on the day of promulgation.

    





INTERIM REGULATIONS ON SPECIAL COMMISSIONERS’ OFFICES OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1982-07-15 Effective Date  1982-07-15  


Interim Regulations on Special Commissioners’ Offices of the Ministry of Foreign Economic Relations and Trade



(Approved by the State Council on July 15, 1982, promulgated by the

Ministry of Foreign Economic Relations and Trade)

    While China continues to implement its opening policy and relatively more
departments, localities and enterprises are participating in foreign economic
relations and trade, in order to refrain from self-competition and avoid
chaos while appropriately arousing the enthusiasm of all various aspects and
devoting major efforts to developing foreign economic relations and trade,
the coordination and administration of foreign economic relations and trade
must be strengthened so as to realize unified and joint external actions.
Therefore, in addition to other coordinative and administrative measures, it
is decided that commissioners shall be sent to major ports and commissioners’
offices shall be set up.

    1. As agencies of the Ministry of Foreign Economic Relations and Trade
and by the name of the Commissioners’ Office of the Ministry of Foreign
Economic Relations and Trade in ____ , commissioners’ offices shall be
subjected to the leadership of the Ministry of Foreign Economic Relations and
Trade and be responsible to the Ministry. Commissioners shall maintain close
ties with the local governments and Party organizations, report the work
situation to them, get supports therefrom, and make reports in good time to
the Ministry of Foreign Economic Relations and Trade for instructions.

    2. The Duties of Commissioners

    (1) They shall, in accordance with the principle of unified policy,
unified planning and unified external action and in consideration of being
favorable to the development of foreign economic relations and trade, conduct
supervision and direction over the implementation of import and export
commodity coordinating programs worked out by the Import and Export
Commodity Coordinating Group. When any problem arises from the implementation
of an import and export commodity coordinating program, the commissioner may
settle the problem then and there if it is within his jurisdiction; the
problem shall be settled by the Coordinating Group of the company if it is
a national problem, such as great changes of markets, quantities, prices and
customers, etc.;

    (2) They shall strengthen the administration and, according to the
jurisdiction authorized by the Ministry of Foreign Economic Relations and
Trade, be responsible for the examination and approval of applications for
and the issuance of import and export licenses for some commodities;

    (3) They shall assist specialized import and export companies (including
companies engaging in both industry and trade, same below) to realize step by
step the unified and combined operations by sectors and with major ports as
centers, with regard to main exports.

    (4) They shall, for the purpose of strengthening the unification and
combination of external actions and in the light of specific situations,
convene contacting conferences attended by the foreign economic relations and
trade departments of the ports they reside in and those of the provinces,
municipalities or autonomous regions under their jurisdictions, so as to
facilitate the exchange of each other’s situation and the coordination of
relations between ports and inland areas. Relevant specialized companies and
relevant units under the Ministry of Foreign Economic Relations and Trade may
send their personnel to the conferences;

    (5) They shall make investigation and research on the implementation of
general and specific policies regarding foreign economic relations and trade,
the strengthening of import and export administration and the reform of the
system of foreign economic relations and trade, and shall put forward
proposals to the Ministry of Foreign Economic Relations and Trade; and

    (6) They shall deal with other matters entrusted by the Ministry of
Foreign Economic Relations and Trade.

    3. Rights of Commissioners

    (1) They may interfere and stop the business activities of import and
export enterprises which do not conform to the division of import and export
operations or the coordinating programs;

    (2) They may stop transactions in violation of policies, laws or
regulations of the state, and refuse to issue licenses with regard to those
transactions;

    (3) Import and Export Commodity Coordinating Groups of various
specialized companies shall provide commissioners with business information
(including coordinating programs, summaries of conferences, bulletins,
statistical data and reports, etc.), so as to facilitate commissioners’
inspection and supervision on and adjudication in the coordinating work;

    (4) Administrative departments of the local provinces or municipalities
and of relevant inland provinces, municipalities or autonomous regions shall
send to commissioners a duplicate of their reports on the administrative
work. Commissioners may, for the need of the work, request the administrative
departments of foreign economic relations and trade and enterprises engaging
in foreign trade in the local areas and those of relevant provinces,
municipalities or autonomous regions to provide information and materials
concerning the coordination and administration; and

    (5) Relevant local departments such as departments in charge of transport
and communications, ports, banks, customs and commodity inspection, etc.
shall take active cooperation with commissioners for the latter’s performance
of duties stipulated in the Regulations.

    4. The Appointments, Terms and Members’ Activities of and Awards and
Punishments to Commissioners

    (1) A commissioners’ office shall have one commissioner and one deputy
commissioner, which shall all be appointed by the State Council upon
nomination by the Ministry of Foreign Economic Relations and Trade.

    (2) The term of office of a commissioner shall generally be two years and
the commissioner shall be rotated upon its expiration. The term may be
appropriately extended if necessary. The rotating system shall also be
applicable to personnel of commissioners’ offices.

    (3) The Ministry of Foreign Economic Relations and Trade shall be
responsible for the political and ideological work of commissioners’ offices.
Party and League members among commissioners and personnel of commissioners’
offices shall respectively set up their Party and League organizations which
shall be respectively under the leadership of the Party and League committee
of the Ministry of Foreign Economic Relations and Trade. In case of urgent
and important report relay or document reading, they may ask the local Party
committee to assist in arrangement.

    (4) The Ministry of Foreign Economic Relations and Trade shall be
responsible for handling awards and punishments to commissioners and
personnel of commissioners’ offices.

    5. Compositions and Sources of Funds of Commissioners’ Offices and Daily
Lives of Their Personnel

    (1) The compositions of commissioners’ offices shall be determined
according to the principle of efficiency and simplification with the cadres
sent by the Ministry of Foreign Economic Relations and Trade. The internal
structural establishments shall be simple and they shall strive to raise
working efficiency.

    (2) Expenditures of commissioners’ offices shall be incorporated in the
budget of the Ministry of Foreign Economic Relations and Trade.

    (3) Relevant departments of the local people’s governments shall assist
in arranging daily lives of personnel of commissioners’ offices.

    6. The Style of Work of Commissioners and Personnel of Commissioners’
Offices

    Commissioners and personnel of commissioners’ offices shall actively
study the Party’s lines, guiding principles and policies, correctly implement
policies and provisions concerning foreign economic relations and trade, and
try to promote the development of foreign economic relations and trade. They
shall strengthen the work of investigation and research, listen to opinions
from various aspects with an open mind, be practical and realistic in their
work, and adopt an overall point of view. They shall impartial and
conscientious in their work, carry forward the fine traditions of the Party,
serve the people wholeheartedly, and do their best at the work they
undertake.

    7. These Interim Regulations shall enter into force upon the approval of
the State Council. Supplements or amendments to these Regulations shall be
proposed by the Ministry of Foreign Economic Relations and Trade, and
implemented after submitted to and approved by the State Council.





REGULATIONS FOR THE IMPLEMENTATION OF THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

MARITIME TRAFFIC SAFETY LAW OF THE PEOPLE’S REPUBLIC OF CHINA

DETAILED IMPLEMENTING RULES GOVERNING THE REGULATIONS FOR THE CONTROL OF ADVERTISING

Detailed Implementing Rules Governing the Regulations for the Control of Advertising

     (Effective Date:1988.01.09–Ineffective Date:)

(Promulgated 9 January 1988 by the State Administration for Industry and Commerce)

   Article 1. These Detailed Implementing Rules are formulated in accordance with the provisions of Article 21 of the Regulations for the Control
of Advertising (hereinafter referred to as the Regulations).

   Article 2. The administrative scope as prescribed by Article 2 of the Regulations shall include:

(1) advertisements printed in newspapers, periodicals, books, name registries, etc.;

(2) advertisements broadcast on radio or television or through films, videos, slide shows, etc.;

(3) advertisements on buildings in streets, public squares, airports, railway stations, wharves, etc., or on billboards in vacant
spaces, or using neon lights, electronic display boards, display windows, lanterns, walls, etc.;

(4) advertisements displayed or posted inside or outside such places as theatres, stadiums, cultural centres, exhibition halls, guest
houses, restaurants, sightseeing and amusement centres, markets, etc.;

(5) advertisements displayed, drawn or posted on vehicles, vessels, aeroplanes or other means of transport;

(6) publicity material on various types of products which is sent through the mail;

(7) advertising publicity gained through the presentation of samples of products;

(8) advertising using other forms of media or other means to publish, broadcast, display or post advertisements.

   Article 3. An enterprise applying for approval to engage in advertising operations, in addition to meeting enterprise registration requirements,
etc., shall also be required to meet the following conditions;

(1) establish an organisation responsible for conduction market surveys and provide the relevant specialised personnel;

(2) provide administrative personnel familiar with advertising control legislation and personnel able to undertake the design, production
and editing of advertisements;

(3) provide full-time accounting personnel;

(4) have the ability to provide the relevant services if applying to undertake contract work for or to act as agent for foreign businessmen
who come to China to advertise.

   Article 4. A public institution applying to engage in advertising operations part-time shall meet the following conditions:

(1) have the means to directly issue advertisements and the technology and equipment required for the design and production of advertisements;

(2) provide administrative personnel and editorial personnel familiar with advertising control legislation;

(3) establish an independent accounting system, to be staffed by full-time or part-time accounting personnel.

   Article 5. If a Sino-foreign joint equity enterprise or a Sino-foreign co-operative enterprise applies to engage in advertising operations,
the matter shall be handled in accordance with the Regulations, these Detailed Implementing Rules and other relevant regulations.

   Article 6. If an individual industrial or commercial household operation applies to engage in advertising operations, in addition to meeting
the requirements prescribed in the Provisional Regulations governing the Administration of Individual Industrial and Commercial Household
Operations in Towns and Villages, the individual shall also be required to be skilled in the specialised field of advertising, to
be familiar with advertising control legislation and to qualify through an examination.

   Article 7. In accordance with be provisions of Article 6 of the Regulations, the examination, approval and registration of an advertising operator
shall be conducted as follows:

(1) A national advertising enterprise or a Sino-foreign joint equity enterprise or Sino-foreign co-operative enterprise wanting to
engage in advertising operations shall apply to the State Administration for Industry and Commerce and, subject to verification and
approval of its application, shall be issued with a business licence of the People’s Republic of China.

A regional advertising enterprise shall apply to its local municipal or county administration for industry and commerce and shall
be issued with a corporate business licence by the said administration, subject to verification and approval of the application by
the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality or
an authorised municipal administrative body under provincial jurisdiction.

(2) A public institution wanting to engage part-time in advertising activities shall apply to its local municipal or county administration
for industry and commerce and shall be issued with an advertising permit by the said administration, subject to verification and
approval of the application by the administration for industry and commerce of the relevant province, autonomous region or directly
administered municipality or an authorised municipal administrative body under provincial jurisdiction.

A public institution engaged part-time in advertising activities, which wishes to undertake direct advertising work for foreign businessmen
who come to China to advertise, shall apply to the administration for industry and commerce of the relevant province, autonomous
region or directly administered municipality and shall be issued with an advertising licence of the People’s Republic of China by
the said administration, subject to its inspection of the application and subsequent examination and approval of the application
by the State Administration for Industry and Commerce.

(3) An independent industrial or commercial household operation wanting to engage in advertising activities shall apply to its local
municipal or county administration for industry and commerce and shall be issued with a business licence by the said administration,
subject to verification and approval of the application by the administration for industry and commerce of the relevant province,
autonomous region or directly administered municipality or an authorised municipal administrative body under provincial jurisdiction.

(4) A unit wanting to engage in advertising operations within a local area for a short period shall apply to the administration for
industry and commerce of the relevant province, autonomous region or directly administered municipality or an authorised municipal
administrative body under provincial jurisdiction and shall be issued with a temporary advertising licence, subject to its examination
and approval of the application. A unit wanting to engage in advertising operations nationally for a short period shall apply to
the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality and
shall be issued with a temporary advertising licence by the said administration, subject to approval of the application by the State
Administration for Industry and Commerce.

   Article 8. A public institution engaging in part-time advertising activities may, subject to examination and approval, act as agent for other
advertising operations which use similar mediums.

   Article 9. If an advertising client applies to use a medium other than radio, television or the print media to advertise cigarettes, prior approval
must be obtained from the administration for industry and commerce of the relevant province, autonomous region, directly administered
municipality or authorised municipal administrative body under provincial jurisdiction.

If an advertising client applies to advertise any of the high quality spirits which have received any of the various national, department
or provincial level awards, prior approval must be obtained from the administration for industry and commerce of the relevant province,
autonomous region, directly administered municipality or authorised municipal administrative body under provincial jurisdiction.
When using the print or broadcast media to advertise alcoholic beverages of up to 39 per cent (including 39 per cent) alcohol, the
specific amount must be clearly stated.

   Article 10. In accordance with the provisions of Article 7 of the Regulations, a client applying for the issue of an advertisement shall present
the appropriate certificate as follows:

(1) An industrial or commercial enterprise or an independent industrial or commercial household operation shall present for inspection
a copy of its corporate business licence or business licence respectively.

(2) An administrative organ, social group or public institution shall present the certificate of its respective unit.

(3) An individual shall present a certificate issued by his/her local township, village, subdistrict office or unit.

(4) A national enterprise, Sino-foreign joint equity enterprise, Sino-foreign co-operative enterprise or sole foreign investment enterprise
shall present for inspection its business licence of People’s Republic of China, issued by the State Administration for Industry
and Commerce.

(5) A resident representative office of a foreign enterprise shall present for inspection its certificate of registration as the resident
representative office in china of a foreign enterprise.

   Article 11. When applying to advertise a commodity, a quality certificate verifying that the commodity complies with State standards, department
standards (specialised standards) or enterprise standards shall be presented for inspection in accordance with the provisions of
item (1) of Article 11 of the Regulations.

   Article 12. When applying to advertise a commodity as an award winner, a certificate attesting to the granting of the award and issued by a competent
administrative department at the level of province, autonomous region, directly administered municipality or above shall be presented
in accordance with the provisions of item (2) of Article 11 of the Regulations.

   Article 13. In accordance with the provisions of item (7) of Article 11 of the Regulations, the relevant certificates shall be presented when
applying to release any of the following types of advertisements:

(1) If advertising the publication of a newspaper or periodical, a registration certificate verified by the news publishing organ
of the relevant provincial, autonomous region or directly administered municipality shall be presented.

(2) If advertising the publication of a book, a certificate issued by the relevant news publishing organ approving the establishment
of the publishing house shall be presented.

(3) If advertising any of the various types of artistic and cultural performances, a certificate authorising the performance, issued
by the department in charge of cultural affairs at local county level or above, shall be presented.

(4) If a university or college is advertising to recruit students, a certificate issued by the State Education Commission or the education
administrative department of the relevant province, autonomous region or directly administered municipality, authorising the release
of such advertisements through the press and broadcast media, shall be presented. In the case of polytechnic schools, a certificate
issued by the local district (municipal) education administrative department, authorising the release of such advertisements through
the print and broadcast media, shall be presented. If advertising to recruit foreigners to study in China, it shall be necessary
to present a certificate issued by the State Education Commission authorising such advertising through the press and broadcast media.

(5) If advertising any of the various after-school supplementary educational classes, recruiting students for specialised technical
training classes or advertising to recruit workers or to invite applications for employment positions, a certificate issued by an
education administrative department or labour and personnel department at county level or above, authorising the release of such
advertisements through the press and broadcast media, shall be presented.

(6) If advertising individual medical practices, a certificate approving the practitioner, issued by the relevant health administration
department at county level or above, and a certificate verifying and approving the content of the advertisement shall be presented.

(7) If advertising pharmaceuticals or related products, a pharmaceutical advertising examination and approval list verified by a health
administration department of the relevant local province, autonomous region or directly administered municipality shall be presented.

(8) If advertising veterinary medicines, a certificate of approval issued by an agriculture, animal husbandry and fisheries administrative
organ of the relevant province, autonomous region or directly administered municipality shall be presented.

(9) If advertising agricultural chemicals, an agricultural chemical advertising examination and approval list, examined and approved
by the Ministry of Agriculture, Animal Husbandry and Fisheries or the drug inspection or plant protection department of the agriculture,
animal husbandry and fisheries office (bureau) of the relevant province, autonomous region or directly administered municipality,
shall be presented.

   Article 14. In accordance with the provisions of item (8) of Article 11 of these Regulations, the relevant certificates shall be presented when
applying to use the print or broadcast media to publicise advertisements of the following content:

(1) If advertising foodstuffs, a foodstuffs advertising examination and approval list approved by the foodstuffs hygiene supervisory
body at the local regional (municipal) level or above shall be presented.

(2) If advertising any of the various display and sales exhibitions, order placement meetings, trade fairs, etc., a certificate of
approval issued by the department in charge of the organising unit shall be presented.

(3) If advertising to encourage bank savings deposits, a certificate from a higher level authority of the People’s Bank shall be presented.

(4) If advertising notices or statements concerning individuals, a certificate issued by the person’s unit, township (village) people’s
government or subdistrict office shall be presented.

   Article 15. When a client requests an advertisement for publishing, broadcasting, displaying or posting, it shall present the original of the
certificate required or a duplicate copy to which the original certificate issuing organ has fixed its signature or seal and which
has been notarised by a public notary office.

   Article 16. In accordance with the provisions of Article 15 of the Regulations, agency fees for undertaking domestic advertising work shall be
10% of the advertising costs. Agency fees of 15% of the advertising costs shall be paid when undertaking advertising work for foreign
businessmen who come to China to advertise.

   Article 17. If a foreign enterprise (organisation) or person of foreign nationality needs to hire a contractor to produce and release an advertisement,
it shall commission an advertising operator authorised to provide advertising services to foreign businessmen to undertake the work.

   Article 18. In accordance with the provisions of Article 12 of the Regulations, when acting as an agent for or as the issuer of an advertisement,
the agent or issuer shall be responsible for inspecting the content of the advertisement and relevant certificates and shall have
the right to request the advertising client to provide any other necessary certificates and documents. An advertising agent or issuer
shall not be permitted to continue to handle work for an advertisement if the certificate is found to be illegal or incomplete or
if the content of the advertisement is found to be false.

An advertising operator shall establish a filing system to maintain records of advertising contract registrations, reviews and services
rendered. An advertising service file shall be kept for a minimum of one year.

   Article 19. If an advertising client violates the provisions of Article 3 or item (5) of Article 8 of the Regulations by using an advertisement
to mislead or cheat users and consumers, the client shall be ordered to issue an amended advertisement within a corresponding area
and, depending on the seriousness of the case, shall be fined between two and five times the cost of the advertisement, as well as
held responsible for compensation users and consumers for any resultant losses.

If an advertising operator assists a client to practise fraud, a notice of criticism may be circulated, any illegal earnings confiscated
and a fine of between two and five times the cost of the advertisement may be imposed, depending on the seriousness of the case.
If such offences continue, the advertising operator may be ordered to suspend business operations while the matter is rectified and
may have its business licence or advertising permit revoked. Joint and several liability shall be borne by the operator for any resultant
losses incurred by users and consumers.

The cost of issuing an amended advertisement shall be borne jointly by the advertising client and advertising operator.

   Article 20. If the provisions of Article 4 or item (6) of Article 8 of the Regulations are violated, a notice of criticism may be circulated,
any illegal earnings may be confiscated, a fine of up 5, 000 yuan may be imposed or an order given to suspend operations while rectification
is undertaken, depending on the seriousness of the case.

   Article 21. If an advertising operator violates the provisions of Article 6 of the Regulations by engaging in advertising activities without
the necessary certification or by exceeding its approved scope of operations, its illegal activities shall be banned, any illegal
earnings shall be confiscated and a fine of up to 5,000 yuan shall be imposed.

   Article 22. If an advertising client violates the provisions of Article 7 of the Regulations, a notice of criticism may be circulated and a fine
of up to 5,000 yuan may be imposed, depending on the seriousness of th case.

   Article 23. If the provisions of items (1), (2), (3) or (4) of Article 8 of the Regulations are violated, a notice of criticism shall be circulated
regarding the advertising operator involved, any illegal earnings by the operator confiscated and a fine of up to 10,000 yuan imposed.
The advertising client may be sent a notice of criticism and fined up to twice the amount of the advertising costs, depending on
the seriousness of the case.

   Article 24. If a news unit violates the provisions of Article 9 of the Regulations, a notice of criticism may be circulated, any illegal earnings
confiscated and a fine of up to 10,000 yuan imposed, depending on the seriousness of th case.

   Article 25. If an advertising operator violates the provisions of Article 10 of the Regulations, a notice of criticism may be circulated, any
illegal earnings confiscated and a fine of up to 10,000 Yuan imposed depending on the seriousness of the case.

   Article 26. If an advertising client violates the provisions of Article 11 of the Regulations by forging, altering, stealing and using or illegally
copying a certificate, a notice of criticism shall be criticism shall be circulated and a fine of up to 5,000 yuan imposed.

An advertising operator which violates the provisions of items (1) or (2) of Article 11 of the Regulations shall be subject to a fine
of up to 1,000 yuan.

If an advertising operator provides a client with illegal or false certificates, a notice of criticism shall be circulated, a fine
of up to 5, 000 yuan imposed and the operator shall bear joint and several liability.

   Article 27. If an advertising operator violates the provisions of Article 12 of the Regulations, a notice of criticism may be circulated, any
illegal earnings confiscated and a fine of up to 3,000 yuan imposed, depending on the seriousness of the case. If false advertising
is the result, the operator shall be responsible for issuing an amended advertisement and shall bear joint and several liability
for the losses incurred by users and consumers.

   Article 28. If the provisions of Article 13 of the Regulations are violated through the illegal display or posting of advertisements, any illegal
earnings shall be confiscated, a fine of up to 5,000 yuan shall be imposed and a time limit shall be specified for the dismantling
and removal of the offending advertisements. In the event of failure to dismantle and remove such an advertisement within the specified
time limit, the dismantling and removal of the advertisement shall be enforced, with the costs being borne by the party which displayed
or posted the advertisement.

   Article 29. If the provisions of Articles 14 or 15 of the Regulations are violated, an order may be issued to rectify the situation within a
specified time limit, any illegal earnings confiscated and a fine of up to 5,000 yuan imposed, depending on the seriousness of the
case.

   Article 30. If a foreign enterprise or the resident representative office of a foreign enterprise violates any of the provisions of the Regulations,
the administration for industry and commerce of the relevant province, autonomous region or directly administered municipality shall,
with reference to the provisions of these Detailed Implementing Rules, suggest a means of dealing with the matter. Such a proposal
shall be implemented subject to its approval by the State Administration for Industry and Commerce.

   Article 31. The State Administration for Industry and Commerce shall be responsible for interpreting these Detailed Implementing Rules.

   Article 32. These Detailed Implementing Rules shall take effect from the date of promulgation.

    





SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE PUNISHMENT OF THE CRIMES OF CATCHING OR KILLING PRECIOUS AND ENDANGERED SPECIES OF WILDLIFE UNDER SPECIAL STATE PROTECTION

Category  CRIMINAL LAW Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  Invalidated
Date of Promulgation  1988-11-08 Effective Date  1988-11-08 Date of Invalidation  1997-10-01


Supplementary Provisions of the Standing Committee of the National People’s Congress Concerning the Punishment of the Crimes of Catching
or Killing Precious and Endangered Species of Wildlife under Special State Protection

(Adopted at the Fourth Meeting of the Standing Committee of the Seventh

National People’s Congress and promulgated for enforcement by Order No.10 of
the President of the People’s Republic of China on November 8, 1988)
(Editor’s Note: This Decision has been invalidated by the Criminal Law of the
People’s Republic of China revised at the Fifth Session of the Eighth National
People’s Congress on March 14, 1997, and effective on October 1, 1997)

    For the purpose of strengthening the protection of precious and endangered
species of wildlife under special state protection, the Fourth Meeting of the
Standing Committee of the Seventh National People’s Congress has decided to
make supplementary provisions to the Criminal Law: Anyone who illegally
catches or kills precious and endangered species of wildlife under special
state protection shall be sentenced to fixed-term imprisonment of not more
than seven years or criminal detention, may concurrently or exclusively be
fined; anyone who sells or resells or smuggles precious and endangered species
of wildlife under special state protection shall be punished for crimes of
speculation or smuggling.





PROVISIONS OF THE STATE COUNCIL CONCERNING THE ENCOURAGEMENT OF INVESTMENTS BY COMPATRIOTS FROM TAIWAN

Category  LAWS AND REGULATIONS ON AFFAIRS CONCERNING OVERSEAS CHINESE AND HONG KONG, MACAO AND TAIWAN Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-07-03 Effective Date  1988-07-03  


Provisions of the State Council Concerning the Encouragement of Investments by Compatriots From Taiwan



(Adopted by the Tenth Executive Meeting of the State Council on June 25,

1988, promulgated by Decree No. 7 of the State Council of the People’s
Republic of China on July 3, 1988, and effective as of the date of
promulgation)

    Article 1  These Provisions are formulated in order to promote economic
and technological exchanges between China’s mainland and the region of Taiwan,
thereby boosting common prosperity of the two parts of the motherland on both
sides of the Straits, and to encourage companies, enterprises and individuals
on Taiwan (hereinafter referred to as “investors from Taiwan”) to make
investments on China’s mainland.

    Article 2  Investors from Taiwan may make investments in all provinces,
autonomous regions, municipalities directly under the Central Government, and
special economic zones on China’s mainland.

    Investors from Taiwan are encouraged to engage themselves in land
development operations in Hainan Province and on the designated islands and in
areas along the coastal regions of the Provinces of Fujian, Guangdong and
Zhejiang.

    Article 3  The investments made by investors from Taiwan on China’s
mainland may take the following forms:

    (1) to establish enterprises with the capital wholly owned by investors
from Taiwan;

    (2) to establish equity or contractual joint ventures;

    (3) to carry out compensation trade, to process supplied materials, to
assemble supplied parts, and to carry out contractual production;

    (4) to purchase shares and various kinds of bonds and debentures of
existing enterprises;

    (5) to purchase real estate;

    (6) to obtain land use right according to law and to engage in land
development operations; and

    (7) to adopt other forms of investment permitted under the laws and
regulations.

    Article 4  Investors from Taiwan may make investments in various trades in
China’s mainland: industries, agriculture, service trades, and other trades
that are in conformity with the orientation of social and economic
development. Investors from Taiwan may select investment projects from the
lists of projects published by the departments concerned under various local
people’s governments; they may also put forward, of their own accord,
proposals as to their investment intent and file their applications to the
departments of foreign economic relations and trade or to the examining and
approving organs designated by various local people’s governments in areas
where they intend to make investments.

    The State encourages investors from Taiwan to make investments in the
establishment of export oriented enterprises and of technological advanced
enterprises and gives corresponding preferential treatment to such enterprises.

    Article 5  With respect to the various types of enterprises established
with investments by investors from Taiwan – enterprises with the capital
wholly owned by investors from Taiwan, equity and contractual joint ventures
(hereinafter referred to as “enterprises with investments by compatriots from
Taiwan”), they shall all be operated in accordance with these Provisions; in
addition to this, they may also enjoy the corresponding preferential treatment
as enjoyed by enterprises with foreign investments with reference to the
relevant provisions in foreign-related economic laws, decrees and regulations
of the state.

    With respect to the other forms of investment made by investors from
Taiwan on China’s mainland, and with respect to those investors from Taiwan
who have not set up business offices on the mainland, but have dividends,
interest, rental, royalties and other incomes that come from China’s mainland,
in addition to the application of these Provisions, reference shall be made to
the relevant foreign-related economic law, decrees and regulations.

    Article 6  Investors from Taiwan may make investments by using freely
convertible currencies, machinery and equipment or other physical goods,
industrial property right, and proprietary technology.

    Article 7  The investments made on China’s mainland by investors from
Taiwan, the assets they have purchased, their industrial property rights,
their profits from investments, and other lawful rights and interests shall be
protected by state laws, and may be transferred or inherited according to law.

    Investors from Taiwan shall, in their activities on China’s mainland,
abide by state laws, decrees and regulations.

    Article 8  The state shall not nationalize the investments made by
investors from Taiwan or other assets belonging to them.

    Article 9  Where the state, in light of the needs of social and public
interest, has to requisition the enterprises with investments by compatriots
from Taiwan, the State shall handle the requisitioning according to the legal
procedures and the investors concerned shall be duly compensated.

    Article 10  The lawful profits gained by the investors from Taiwan from
their investments, their other lawful income and the funds after liquidation
may be remitted out of China’s mainland according to law.

    Article 11  Machinery and equipment imported to meet the needs of the
enterprises with investments by compatriots from Taiwan and included in the
total amount of investment, the motor vehicles for use in production, the
office equipment, as well as the articles and means of communications for
personal use and within reasonable quantities, imported by individual
compatriots from Taiwan during the period when they work in the aforesaid
enterprises shall be exempted from Customs duties and consolidated industrial
and commercial tax, and also from application of import licences.

    The raw and processed materials, fuels, bulk parts, spare and component
parts, primary parts, and fittings, which are imported by the enterprises with
investments by compatriots from Taiwan for the production of export
commodities, shall all be exempted from Customs duties and consolidated
industrial and commercial tax and also from obtaining import licences, and
placed under the supervision of the Customs. In case that the aforesaid
imported raw materials and parts are used for the production of commodities to
be sold on the market of China’s mainland, it is imperative to make up the
procedures for importation and to pay taxes and duties according to the
regulations.

    The export commodities produced by the enterprises with investments by
compatriots from Taiwan shall, with the exception of those commodities the
export of which is under restriction by the state, be exempted from Customs
duties on export goods and consolidated industrial and commercial tax.

    Article 12  Enterprises with investments by compatriots from Taiwan may
obtain loans from financial institutions of China’s mainland; they may also
obtain loans from financial institutions outside China’s mainland, and may use
their assets as well as their rights and interests as mortgage or security.

    Article 13  With respect to the enterprises with the capital wholly owned
by investors from Taiwan, their period of operation shall be determined by the
investors themselves; as to equity and contractual joint ventures their period
of operation shall be determined, through consultation, by the various parties
to the ventures, they may also choose not to stipulate a period of operation.

    Article 14  The composition of the board of directors of equity joint ]
ventures and the appointment of the chairman of the board of directors, the
composition of the board of directors or of the joint managerial organs of
contractual joint ventures and the appointment of the chairman or the
appointment of the director of the joint managerial organs, shall be
determined, through consultation, by the various parties to the equity or
contractual joint ventures in light of the proportion of investments or the
terms of contract.

    Article 15  Enterprises with investments by compatriots from Taiwan shall
conduct their operational and managerial activities in accordance with the
approved contract or articles of association. The enterprises’ decision-making
power for business operations and management shall not be interfered with.

    Article 16  The technical and managerial personnel, engaged by individuals
and enterprises investing on China’s mainland may apply and obtain
multiple-journey travel documents.

    Article 17  The investors from Taiwan, who make investments on China’s
mainland, may appoint their relatives or friends residing on the mainland as
their agents. The agents should hold legally effective letters of authority.

    Article 18  In areas where enterprises with investments by compatriots
from Taiwan are concentrated, the investors from Taiwan may apply to the local
people’s government for the establishment of the association of investors from
Taiwan.

    Article 19  With respect to equity and contractual joint ventures to be
established, on China’s mainland, with investments by investors from Taiwan,
the application for the establishment of the aforesaid enterprises shall be
filed by the mainland party; as to the enterprises to be established with
capital wholly owned by investors from Taiwan, the application shall be filed
directly by the investors from Taiwan themselves, or they may entrust their
relatives or friends residing on the mainland, or entrust the institution
providing advisory services, with the application. The applications for the
establishment of enterprises with investments by investors from Taiwan shall
be accepted and handled, in a unified manner, by the local department for
foreign economic relations and trade, or by the examining and approving organs
designated by the local people’s government.

    Cases concerning the examination and approval of the application for the
establishment of enterprises with investments by compatriots from Taiwan shall
be handled in accordance with the authority prescribed by the State Council.
Departments for foreign economic relations and trade at various levels or the
examining and approving organs designated by the local people’s government
shall, within forty-five days of receipt of complete application documents,
make the decision on whether the said application is approved or disapproved.

    The applicants shall, within thirty days of receipt of the written
approval, file an application to the department for the administration of
industry and commerce, and, in accordance with the relevant procedures for
registration and administration, go through procedures for registration and
obtain business licences.

    Article 20  With respect to the investors from Taiwan who have made
investments in China’s mainland, in case that a dispute arises during the
execution of, or in connection with, a contract, the parties concerned shall
try their best to settle the dispute through consultation or mediations.

    Where the parties concerned are unwilling to settle the dispute through
consultation or mediation, or the consultation or mediation has failed, the
parties concerned may, in accordance with the stipulation of the arbitration
articles in the contract, or in accordance with the written arbitration
agreement reached by the parties concerned after the dispute has arisen,
submit their dispute to the arbitration authorities on China’s mainland or in
Hong Kong for settlement.

    In the event that the parties concerned did not include an arbitration
article in their contract, and no written arbitration agreement has been
reached after the dispute has arisen, then the dispute may be brought before
the people’s court.

    Article 21  The right to interpret these Provisions resides in the
Ministry of Foreign Economic Relations and Trade.

    Article 22  These Provisions shall go into effect as of the date of
promulgation.





ADOPTION LAW

Category  MARRIAGE AND FAMILY Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  With An Amendment Existing
Date of Promulgation  1991-12-29 Effective Date  1992-04-01  


ADOPTION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Contents
Chapter I  General Provisions
Chapter II  Establishment of Adoptive Relationship
Chapter III  Validity of Adoption
Chapter IV  Termination of the Adoptive Relationship
Chapter V  Legal Responsibility
Chapter VI  Supplementary Provisions

(Adopted at the 23rd Meeting of the Standing Committee of the Seventh

National People’s Congress on December 29, 1991, promulgated by Order No. 54
of the President of the People’s Republic of China on December 29, 1991, and
effective as of April 1, 1992)(Editor’s Note: For the revised text,see the
Decision on the Revision of the Adoption Law of the People’s Republic of
China by the Standing Committee of the National People’s Congress
promulgated on November 4, 1998)
Contents

    Chapter I    General Provisions

    Chapter II   Establishment of Adoptive Relationship

    Chapter III  Validity of Adoption

    Chapter IV   Termination of the Adoptive Relationship

    Chapter V    Legal Responsibility

    Chapter VI   Supplementary Provisions

Chapter I  General Provisions

    Article 1  This Law is enacted to protect the lawful adoptive relationship
and to safeguard the rights of parties involved in the adoptive relationship.

    Article 2  Adoption shall be in the interest of the upbringing and growth
of adopted minors, in conformity with the principle of equality and
voluntariness, and not in contravention of social morality.

    Article 3  Adoption shall not contravene laws and regulations on family
planning.
Chapter II  Establishment of Adoptive Relationship

    Article 4  Minors under the age of 14, as enumerated below, may be
adopted:

    (1) orphans bereaved of parents;

    (2) abandoned infants or children whose parents cannot be ascertained or
found; or  

    (3) children whose parents are unable to rear them due to unusual
difficulties.

    Article  5 The following citizens or institutions shall be enpost_titled to
place out children for adoption:

    (1) guardians of an orphan;

    (2) social welfare institutions; or  

    (3) parents unable to rear their children due to unusual difficulties.

    Article 6  Adopters shall meet simultaneously the following requirements:

    (1) childless;

    (2) capable of rearing and educating the adoptee; and

    (3) having reached the age of 35.

    Article 7  Any childless citizen who has reached the age of 35 may adopt
a child belonging to a collateral relative by blood of the same generation
and up to the third degree of kinship, irrespective of the restrictions
specified in Item (3), Article 4; Item (3), Article 5; and Article 9 of this
Law as well as the restriction of a minor under the age of 14.

    An overseas Chinese, in adopting a child belonging to a collateral
relative by blood of the same generation and up to the third degree of
kinship, may even be not subject to the adopter’s childless status.

    Article 8  The adopter may adopt one child only, male or female.

    Orphans or disabled children may be adopted irrespective of the
restrictions that the adopter shall be childless, reach the age of 35 and
adopt one child only.

    Article 9  Where a male person without spouse adopts a female child, the
age difference between the adopter and the adoptee shall be no less than
40 years.

    Article 10  Where the parents intend to place out their child for
adoption, they must act in concert. If one parent cannot be ascertained or
found, the other parent may place out the child for adoption alone.

    Where a person with spouse adopts a child, the husband and wife must
adopt the child in concert.

    Article 11  Adoption of a child and the placing out of the child for the
adoption shall both take place on a voluntary basis.

    Where the adoption involves a minor aged 10 or more, the consent of the
adoptee shall be obtained.

    Article 12  If the parents of a minor are both persons without full civil
capacity, the guardian(s) of the minor may not place out him(her) for
adoption, except when the parents may do serious harm to the minor.

    Article 13  Where a guardian intends to place out an orphaned minor for
adoption, the guardian must obtain the consent of the person who has
obligations to support the orphan. Where the person who has obligations to
support the orphan disagrees to place out the orphan for adoption, and the
guardian is unwilling to continue the performance of his guardianship, it is
necessary to change the guardian in accordance with the General Principles of
the Civil Law of the People’s Republic of China.

    Article 14  A stepfather or stepmother may, with the consent of the
parents of the stepson or stepdaughter, adopt the stepson or stepdaughter,
and such adoption may be free from the restrictions specified in Item (3),
Article 4; Item (3), Article 5; and Article 6 of this Law, as well as from
the restriction that the adoptee must be under the age of 14.

    Article 15  Whoever adopts an abandoned infant or child whose parents
cannot be ascertained or found or an orphan in the care of a social welfare
institution shall register the adoption with a civil affairs department.

    Apart from the provisions of the preceding paragraph, a written agreement
on adoption shall be concluded by the adopter and the person placing out the
child for adoption in accordance with the terms on adoption and on placing
out a child for adoption provided by this Law. The adoption may also be
notarized. If the adopter or the person placing out the child for adoption
wishes that the adoption be notarized, the adoption shall be notarized.

    Article 16  Orphans or children whose parents are unable to rear them may
be supported by relatives or friends of their parents.

    The adoptive relationship shall not apply to the relationship between the
supporter and the supported.

    Article 17  Where a spouse places out a minor child for adoption after
the death of the other spouse, the parents of the deceased shall have the
priority in rearing the child.

    Article 18  Persons having placed out a child for adoption may not bear
any more child, in violation of the regulations on family planning, on the
ground of having placed out their child for adoption.

    Article 19  It is strictly forbidden to buy or sell a child or to do so
under the cloak of adoption.

    Article 20  A foreigner may, in accordance with this Law, adopt a child
(male or female) in the People’s Republic of China.

    With respect to the adoption by a foreigner in the People’s Republic of
China, papers certifying such particulars of the adopter as age, marital
status, profession, property, health and whether subjected once to criminal
punishment shall be provided. Such certifying papers shall be notarized by a
notarial agency or notary of the country to which the adopter belongs, and
the notarization shall be authenticated by the Embassy or Consulate of the
People’s Republic of China stationed in that country. The adopter shall
conclude a written agreement with the person placing out the child for
adoption, register in person the adoption with a Chinese civil affairs
department and complete the procedure for notarizing the adoption at a
designated notarial agency. The adoptive relationship shall be established as
of the date of the notarization.

    Article 21  When the adopter and the person placing out the child for
adoption wish to make a secret of the adoption, others shall respect their
wish and shall not make a disclosure thereof.
Chapter III  Validity of Adoption

    Article 22  As of the date of establishment of the adoptive relationship,
the legal provisions governing the relationship between parents and children
shall apply to the rights and duties in the relationship between adoptive
parents and adopted children; the legal provisions governing the relationship
between children and close relatives of their parents shall apply to the
rights and duties in the relationship between adopted children and close
relatives of the adoptive parents.

    The rights and duties in the relationship between an adopted child and
his or her parents and other close relatives shall terminate with the
establishment of the adoptive relationship.

    Article 23  An adopted child may adopt his or her adoptive father’s or
adoptive mother’s surname, and may also retain his or her original surname,
if so agreed through consultation between the parties concerned.

    Article 24  Any act of adoption contravening the provisions of Article 55
of the General Principles of the Civil Law of the People’s Republic of China
and those of this Law shall be of no legal validity.

    Any act of adoption ruled to be invalid by a people’s court shall be of
no legal validity from the very start of the act.
Chapter IV  Termination of the Adoptive Relationship

    Article 25  No adopter may terminate the adoptive relationship before the
adoptee comes of age, except when the adopter and the person having placed
out the child for the adoption agree to terminate such relationship. If the
adopted child involved reaches the age of 10 or more, his or her consent
shall be obtained.

    Where an adopter fails to perform the duty of rearing the adoptee or
commits maltreatment, abandonment, or other acts of encroachment upon the
lawful rights of the minor adopted child, the person having placed out the
child for adoption shall have the right to demand termination of the adoptive
relationship. Where the adopter and the person having placed out the child
for adoption fail to reach an agreement thereon, a suit may be brought in a
people’s court.

    Article 26  Where the relationship between the adoptive parents and an
adult adopted child deteriorates to such a degree that their living together
in a same household becomes impossible, they may terminate their adoptive
relationship by agreement. In the absence of an agreement, they may bring a
suit in a people’s court.

    Article 27  To terminate an adoptive relationship, the parties concerned
shall conclude a written agreement. Where the adoptive relationship was
established through registration with a civil affairs department, the parties
shall complete the procedure for registering the termination of the adoptive
relationship at a civil affairs department. Where the adoptive relationship
was notarized, the parties shall have the termination of the adoptive
relationship also notarized at a notarial agency.

    Article 28  Upon termination of an adoptive relationship, the rights and
duties in the relationship between an adopted child and his or her adoptive
parents and their close relatives shall also terminate, and the rights and
duties in the relationship between the child and his or her parents and their
close relatives shall be restored automatically. However, with respect to the
rights and duties in the relationship between an adult adopted child and his
or her parents and their close relatives, it may be decided through
consultation as to whether to restore them.

    Article 29  Upon termination of an adoptive relationship, an adult adopted
child who has been reared by the adoptive parents shall provide an amount of
money to support the adoptive parents who have lost ability to work and are
short of any source of income. If the adoptive relationship is terminated on
account of the maltreatment or desertion of the adoptive parents by the
grown-up adopted child, the adoptive parents may demand a compensation from
the adopted child for the living and education expenses paid during the
period of adoption.

    If the parents of an adopted child request the termination of the
adoptive relationship, the adoptive parents may demand an appropriate
compensation from the parents for the living and education expenses paid
during the period of adoption, except if the adoptive relationship is
terminated on account of the maltreatment or desertion of the adopted child
by the adoptive parents.
Chapter V  Legal Responsibility

    Article 30  Whoever abducts and traffics in a child under the cloak of
adoption shall be investigated for criminal responsibility in accordance with
the 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.

    Whoever abandons an infant shall be imposed upon a fine of not more
than 1,000 yuan by a public security organ; if the circumstances are so
flagrant as to constitute a crime, the offender shall be investigated for
criminal responsibility in accordance with Article 183 of the Criminal Law.

    Whoever sells his or her own child shall be punished in accordance with
the provisions in the second paragraph of this Article.
Chapter VI  Supplementary Provisions

    Article 31  The people’s congress and its standing committee in a
national autonomous area may, on the basis of the principles of this Law and
in the light of the local conditions, formulate adaptive or supplementary
provisions.

    The relevant regulations of a national autonomous region shall be
submitted to the Standing Committee of the National People’s Congress for the
record. The relevant regulations of an autonomous prefecture or autonomous
county shall be submitted to the standing committee of the provincial or
autonomous region’s people’s congress for approval before coming into force,
and shall also be submitted to the Standing Committee of the National
People’s Congress for the record.

    Article 32  The State Council may, in accordance with this Law, formulate
measures for its implementation.

    Article 33  This Law shall enter into force as of April 1, 1992.





TOBACCO MONOPOLY LAW

Category  TOBACCO MONOPOLY Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1991-06-29 Effective Date  1992-01-01  


Law of the People’s Republic of China on Tobacco Monopoly

Contents
Chapter I  General Provisions
Chapter II  Plantation, Purchase and Allocation of Leaf Tobacco
Chapter III  Production of Tobacco Products
Chapter IV  Sale and Transportation of Tobacco Products
Chapter V  Production and Sale of Cigarette Paper, Filter Rod, Cigarette
Chapter VI  Import and Export Trade and Foreign Economic and
Chapter VII  Legal Responsibility
Chapter VIII  Supplementary Provisions

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

National People’s Congress on June 29, 1991, promulgated by Order No. 46 of
the President of the People’s Republic of China on June 29, 1991, and
effective as of January 1, 1992)
Contents

    Chapter I     General Provisions

    Chapter II    Plantation, Purchase and Allocation of Leaf Tobacco

    Chapter III   Production of Tobacco Products

    Chapter IV    Sale and Transportation of Tobacco Products

    Chapter V     Production and Sale of Cigarette Paper, Filter Rod,

                  Cigarette Tow and Cigarette
Manufacturing Equipment

    Chapter VI    Import and Export Trade and Foreign Economic and

                  Technological Co-operation

    Chapter VII   Legal Responsibility

    Chapter VIII  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted with a view to exercising tobacco monopoly
administration, organizing the production and management of tobacco monopoly
commodities in a planned way, improving the quality of tobacco products,
safeguarding consumers’ interests and ensuring the national revenue.

    Article 2  As used in this Law, “tobacco monopoly commodities” refer to
cigarettes, cigars, cut tobacco, redried leaf tobacco, leaf tobacco,
cigarette paper, filter rods, cigarette tow and cigarette manufacturing
equipment.

    Cigarettes, cigars, cut tobacco and redried leaf tobacco are generally
referred to as tobacco products.

    Article 3  The State shall according to law exercise monopoly
administration over the production, sale, import and export of tobacco
monopoly commodities, and practice a tobacco monopoly license system.

    Article 4  The department of tobacco monopoly administration under the
State Council shall be responsible for the nation-wide tobacco monopoly. The
departments of tobacco monopoly administration in the provinces, autonomous
regions and municipalities directly under the Central Government shall be
responsible for the tobacco monopoly within the areas under their respective
jurisdiction, and shall be under the dual leadership of the department of
tobacco monopoly administration under the State Council and the people’s
governments of the relevant provinces, autonomous regions and municipalities
directly under the Central Government, with the leadership of the department
of tobacco monopoly administration under the State Council as the main
leading authority.

    Article 5  The State shall strengthen the scientific research and
technical development of tobacco monopoly commodities, so as to improve the
quality of tobacco products and reduce the content of tar and other hazardous
ingredients in such products.

    The State and society shall intensify the publicity of and education in
the fact that smoking is hazardous to health, forbid or restrict smoking on
public traffic vehicles and in public places, dissuade teen-agers and
youngsters from smoking, and forbid primary school pupils and middle school
students from smoking.

    Article 6  The State shall exercise administration of tobacco monopoly in
national autonomous areas, and shall, according to the relevant provisions of
this Law and the Law on Regional National Autonomy, take the interests of
national autonomous areas into account and give preferential treatment to the
plantation of leaf tobacco and the production of tobacco products in such
areas.
Chapter II  Plantation, Purchase and Allocation of Leaf Tobacco

    Article 7  For the purpose of this Law, the term “leaf tobacco” means
fluecured tobacco and selected air- and sun-cured tobacco needed for the
production of tobacco products. The catalogue of selected air- and sun-cured
tobacco items shall be determined by the department of tobacco monopoly
administration under the State Council.

    Other air- and sun-cured tobacco items which are not included in the
abovementioned catalogue may be sold at rural or urban trade markets.

    Article 8  In growing tobacco, good varieties of tobacco shall be
cultivated and popularized in line with the local conditions. Good varieties
of tobacco shall, after examination and approval by the national or
provincial tobacco evaluation committees, be supplied by local tobacco
companies.

    Article 9  Leaf tobacco purchasing plans shall be assigned by the
planning departments of the local people’s governments at or above the county
level on the basis of the plans assigned by the planning department under the
State Council. No other organizations or individuals shall make any
modifications thereto.

    Tobacco companies or their authorized agencies shall conclude leaf
tobacco purchasing contracts with tobacco growers. Any leaf tobacco
purchasing contract shall specify the agreed area for leaf tobacco plantation.

    The purchasing prices of leaf tobacco shall be set, on a grading basis,
by the pricing authorities under the State Council in conjunction with the
department of tobacco monopoly administration under the State Council.

    Article 10  A unified purchase of leaf tobacco shall be effected by
tobacco companies or their authorized agencies in accordance with the
standards and prices set by the State. No other organizations or individuals
may effect any leaf tobacco purchase.

    Tobacco companies or their authorized agencies shall, after setting price
on a grading basis and according to the State-prescribed standards, purchase
all the leaf tobacco grown by leaf tobacco growers within the plantation
areas specified in the leaf tobacco purchasing contracts. The grades and
prices thereof shall not be forced down, and disputes arising from leaf
tobacco purchasing shall be dealt with properly.

    Article 11  The plans for allocating leaf tobacco and redried leaf
tobacco among the provinces, autonomous regions and municipalities directly
under the Central Government shall be assigned by the planning department
under the State Council; the plans for allocating leaf tobacco and redried
leaf tobacco within areas under the jurisdiction of each province, autonomous
region or municipality directly under the Central Government shall be
assigned by the planning department of the relevant province, autonomous
region or municipality directly under the Central Government. No other
organizations or individuals may make any modifications thereto.

    A contract must be concluded for any allocation of leaf tobacco or
redried leaf tobacco.
Chapter III  Production of Tobacco Products

    Article 12  The establishment of an enterprise producing tobacco products
shall be subject to the approval of the department of tobacco monopoly
administration under the State Council and the acquisition of a license for
the tobacco monopoly production enterprise, and then to the registration upon
its examination and approval by the administrative department for industry
and commerce; the splitup, merger or dissolution of an enterprise producing
tobacco products shall be subject to the approval of the department of
tobacco monopoly administration under the State Council and go through
formalities for the change and cancellation of the registration with the
administrative department for industry and commerce. The administrative
department for industry and commerce shall not approve and register an
enterprise that has not obtained a license for the tobacco monopoly
production enterprise.

    Article 13  Capital construction or technological innovation to be
conducted by an enterprise producing tobacco products for expanding
production capacity shall be subject to the approval by the department of
tobacco monopoly administration under the State Council.

    Article 14  The total annual production plans for cigarettes and cigars
of the provinces, autonomous regions and municipalities directly under the
Central Government shall be assigned by the planning department under the
State Council. The total annual production plans for cigarettes and cigars of
an enterprise producing tobacco products shall be assigned by the department
of tobacco monopoly administration at the provincial level on the basis of
the plans assigned by the planning department under the State Council and in
light of the marketing conditions. Local people’s governments shall not
assign additional production quotas to an enterprise producing tobacco
products. If an enterprise producing tobacco products, in light of the
marketing conditions, finds it necessary to manufacture cigarettes and cigars
exceeding the total annual production plans, it must obtain the approval of
the department of tobacco monopoly administration under the State Council.

    The national tobacco company shall, on the basis of the total annual
production plans set by the planning department under the State Council,
assign cigarette output targets with grading and classification
specifications to the tobacco companies at the provincial level, which shall,
on the basis of the cigarette output targets with grading and classification
specifications set by the national tobacco company and in light of the
marketing conditions, assign cigarette output targets with grading and
classification specifications to the enterprise producing tobacco products.
An enterprise producing tobacco products may, in light of the marketing
conditions, make appropriate adjustments to the cigarette output targets with
grading and classification specifications, within the scope of the total
annual production plans of the enterprise.
Chapter IV  Sale and Transportation of Tobacco Products

    Article 15  Any enterprise which is to engage in the wholesale trade of
tobacco products shall be subject to the approval of the department of
tobacco monopoly administration under the State Council or the department of
tobacco monopoly administration at the provincial level, and the acquisition
of a license for the tobacco monopoly wholesale enterprise, and then to the
approval and registration by the administrative department for industry and
commerce.

    Article 16  Any enterprise or individual that is to engage in the retail
trade of tobacco products shall be subject to the examination and approval
of, before the issuance of a license for tobacco monopoly retail trade by,
the administrative department for industry and commerce under the people’s
government at the county level on the commission of the department of tobacco
monopoly administration at the next higher level. In areas where departments
of tobacco monopoly administration at the county level have been set up, such
departments may, after their examination and approval, also issue tobacco
monopoly retail licenses.

    Article 17  The department of tobacco monopoly administration under the
State Council shall, together with the pricing authorities under the State
Council, select on a grading basis cigarettes of certain brands as
indicators. The prices of such indicators shall be set by the pricing
authorities under the State Council together with the department of tobacco
monopoly administration under the State Council. The prices of nonindicator
cigarettes, of cigars and cut tobacco shall be fixed by the department of
tobacco monopoly administration under the State Council or by the departments
of tobacco monopoly administration of the provinces, autonomous regions and
municipalities directly under the Central Government, as authorized by the
department of tobacco monopoly administration under the State Council, and
shall be submitted for the record to the pricing authorities under the State
Council or to the pricing authorities under the people’s governments of the
relevant provinces, autonomous regions and municipalities directly under the
Central Government.

    Article 18  The State shall lay down the tar content grading standards
for cigarettes and cigars. The packages of cigarettes and cigars shall
indicate the grade of tar content and that smoking is hazardous to your
health.

    Article 19  Advertising for tobacco products shall be banned on
broadcasting stations, television stations, or in newspapers or periodicals.

    Article 20  Applications must be made for the registration of trade marks
of cigarettes, cigars and packed cut tobacco, which shall not be manufactured
and marketed before the trade mark is registered upon approval.

    The production and sale of tobacco products with counterfeit trade marks
shall be forbidden.

    Article 21  Trade mark labels for tobacco products must be printed by
enterprises designated by the administrative department for industry and
commerce at the provincial level. Non-designated enterprises may not print
trade mark labels for tobacco products.

    Article 22  Whoever consigns the transportation of tobacco monopoly
commodities to others or undertakes the transportation thereof by himself
must hold a transportation permit signed and issued by the department of
tobacco monopoly administration or its authorized agency; consignees may not
undertake the transportation for any consignor who does not hold a
transportation permit.

    Article 23  Whoever sends by post or brings from another place leaf
tobacco or tobacco products shall not exceed the quantity limits prescribed
by the competent department under the State Council.

    Article 24  Any individual who enters the territory of China shall not
carry tobacco products more than the quantity limits prescribed by the
competent department under the State Council.
Chapter V  Production and Sale of Cigarette Paper, Filter Rod, Cigarette
Tow and Cigarette Manufacturing Equipment

    Article 25  Any enterprise which is to engage in the production of
cigarette paper, filter rods, cigarette tow or cigarette manufacturing
equipment must apply to the department of tobacco monopoly administration
under the State Council for approval and obtain a license for the tobacco
monopoly production enterprise.

    As used in this Law, the term “cigarette manufacturing equipment” means a
complete set of equipment for cigarette manufacturing.

    Article 26  Any enterprise engaged in the production of cigarette paper,
filter rods, cigarette tow or cigarette manufacturing equipment shall
organize production in accordance with the plans assigned by the department
of tobacco monopoly administration under the State Council and the order
contracts concluded with the enterprises producing tobacco products.

    Article 27  Any enterprise engaged in the production of cigarette paper,
filter rods, cigarette tow or cigarette manufacturing equipment may sell its
products only to tobacco companies or enterprises producing tobacco products
with the license for tobacco monopoly production enterprises.
Chapter VI  Import and Export Trade and Foreign Economic and
Technological Co-operation

    Article 28  The department of tobacco monopoly administration under the
State Council shall, in accordance with the relevant regulations of the State
Council, exercise control over tobacco industry’s import and export trade and
its foreign economic and technological cooperation.

    Article 29  Any enterprise engaged in the import and export of tobacco
monopoly commodities, the consignment for sale of foreign tobacco products or
the purchase and sale of dutyfree foreign tobacco products within a customs
surveillance zone shall be subject to the approval of the department of
tobacco monopoly administration under the State Council or the department of
tobacco monopoly administration at the provincial level and must obtain a
special license for the tobacco monopoly operation enterprise.

    Any enterprise with a special license for the tobacco monopoly operation
enterprise must, in accordance with the relevant regulations of the
department of tobacco monopoly administration under the State Council, submit
to the department the plans and statements about its purchases, sales and
stock.
Chapter VII  Legal Responsibility

    Article 30  Whoever, in violation of this Law, purchases leaf tobacco
without authorization shall be fined by the department of tobacco monopoly
administration, and the leaf tobacco illegally purchased shall be repurchased
by the said department at the price set by the State; if the illegal purchase
involves large quantities, the leaf tobacco purchased and the illegal income
derived therefrom shall be confiscated.

    Article 31  Whoever transports or consigns to others the transportation
of tobacco monopoly commodities without a transportation permit, or in excess
of the quantity specified in the transportation permit, shall be fined by the
department of tobacco monopoly administration, and the tobacco monopoly
commodities thus involved may be purchased by the said department at the
price set by the State; if the circumstances are serious, the tobacco
monopoly commodities illegally transported and the illegal income derived
therefrom shall be confiscated.

    A consignee who, knowing that the goods to be transported are tobacco
monopoly commodities, undertakes the transportation thereof for units or
individuals that do not hold transportation permits, shall be confiscated of
the illegal income derived therefrom by the department of tobacco monopoly
administration, with the concurrent punishment of a fine.

    Whoever brings from another place leaf tobacco or tobacco products far in
excess of the quantity limits prescribed by the State shall be dealt with in
accordance with the provisions of the first paragraph of this Article.

    Article 32  Where an enterprise that does not hold a license for the
tobacco monopoly production enterprise produces tobacco products, the
department of tobacco monopoly administration shall order it to close down,
confiscate the illegal income derived therefrom and concurrently impose
a fine.

    Where an enterprise that does not hold a license for the tobacco monopoly
production enterprise produces cigarette paper, filter rods, cigarette tow or
cigarette manufacturing equipment, the department of tobacco monopoly
administration shall order it to stop the production of the said products,
confiscate the illegal income derived therefrom and may concurrently impose
a fine.

    Article 33  Where an enterprise that does not hold a license for the
tobacco monopoly wholesale enterprise engages in the wholesale trade of
tobacco products, the department of tobacco monopoly administration shall
order it to close down or to stop the wholesale trade of tobacco products,
confiscate the illegal income derived therefrom and concurrently impose
a fine.

    Article 34  Where an enterprise that does not hold a special license for
the tobacco monopoly operation enterprise engages in the import and export of
tobacco monopoly commodities, the consignment for sale of foreign tobacco
products, or the purchase and sale of duty-free foreign tobacco products, the
department of tobacco monopoly administration shall order it to stop the
aforesaid operations, confiscate the illegal income derived therefrom and
concurrently impose a fine.

    Article 35  Where an enterprise or individual that does not hold a
tobacco monopoly retail license engages in the retail sale of tobacco
products, the administrative department for industry and commerce shall order
it or him/her to stop retail business, confiscate the illegal income derived
therefrom and concurrently impose a fine.

    Article 36  Where an enterprise or individual produces or sells
cigarettes, cigars or packed cut tobacco without registered trade marks, the
administrative department for industry and commerce shall order it or him/her
to stop the production and sales thereof and shall concurrently impose a fine.

    Where an enterprise or individual produces or sells tobacco products with
counterfeit trade marks, the administrative department for industry and
commerce shall order it or him/her to stop the infringing act and to
compensate the losses of the infringed, and may concurrently impose a fine;
if the infringement constitutes a crime, the offender’s criminal
responsibility shall be investigated according to law.

    Article 37  Where an enterprise or individual, in violation of the
provisions of Article 21 of this Law, illegally prints trade mark labels for
tobacco products, the administrative department for industry and commerce
shall destroy the printed trade mark labels, confiscate the illegal income
derived therefrom and  concurrently impose a fine.

    Article 38  Where an enterprise or individual profiteers in tobacco
monopoly commodities and the profiteering constitutes a crime of illicit
speculation, such profiteer’s criminal responsibility shall be investigated
according to law; if the circumstances are not so serious as to constitute
a crime, the administrative department for industry and commerce shall
confiscate the profiteered tobacco monopoly commodities as well as the
illegal income derived therefrom and may concurrently impose a fine.

    Personnel of a department of tobacco monopoly administration or of
a tobacco company, who, by taking advantage of their office, commit the crime
specified in the preceding paragraph, shall be subjected to heavier
punishments according to law.

    Article 39  Any enterprise or individual that forges or alters the
licenses prescribed in this Law such as those for tobacco monopoly production
enterprises, tobacco monopoly business, as well as transportation permits,
shall be investigated for criminal responsibility according to law.

    Any enterprise or individual that purchases or sells the licenses
prescribed in this Law such as those for tobacco monopoly production
enterprises, tobacco monopoly business, as well as transportation permits,
shall be investigated for criminal responsibility by applying mutatis
mutandis the provisions of Article 117 of the Criminal Law.

    Personnel of a department of tobacco monopoly administration or of a
tobacco company who, by taking advantage of their office, commit the crimes
specified in the preceding two paragraphs shall be subjected to heavier
punishments according to law.

    Article 40  Where the smuggling of tobacco monopoly commodities
constitutes the crime of smuggling, the smuggler’s criminal responsibility
shall be investigated in accordance with the Supplementary Provisions
Concerning the Punishment of the Crimes of Smuggling; if the smuggling does
not involve tobacco monopoly commodities in large quantities, thus not
constituting the crime of smuggling, the smuggled commodities and articles as
well as the illegal income derived therefrom shall be confiscated by the
Customs, and a fine may concurrently be imposed.

    Personnel of a department of tobacco monopoly administration or of a
tobacco company who, by taking advantage of their office, commit the crime
specified in the preceding paragraph shall be subjected to heavier
punishments according to law.

    Article 41  The department of tobacco monopoly administration shall have
the right to carry out inspection on the implementation of this Law. Whoever
by means of violence or threat obstructs such inspectors from carrying out
their duties according to law shall be investigated for criminal
responsibility according to law; whoever refuses or obstructs such inspectors
from carrying out their duties according to law, but without resorting to
violence or threat, shall be punished by the public security organs in
accordance with the Regulations on the Administrative Penalties for Public
Security.

    Article 42  Personnel from a people’s court or a relevant department
dealing with lawbreaking cases who share out the confiscated tobacco products
shall be investigated for criminal responsibility in accordance with the
provisions of Article 1 and Article 2 of the Supplementary Provisions
Concerning the Punishment of the Crimes of Embezzlement and Bribery.

    Personnel from a people’s court or a relevant department dealing with
lawbreaking cases who purchase the confiscated tobacco products shall be
ordered to return the products and may be subjected to administrative
sanctions.

    Article 43  Personnel from the department of tobacco monopoly
administration or from a tobacco company who abuse their power, seek personal
interests and commit malpractice or neglect their duties shall be subjected
to administrative sanctions; if the circumstances are so serious as to
constitute a crime, the offender shall be investigated for criminal
responsibility according to law.

    Article 44  A party, if not satisfied with the decision on administrative
sanctions made by the department of tobacco monopoly administration or the
administrative department for industry and commerce, may, within 15 days
after receiving the notice about the decision on punishment, apply for
reconsideration to the authorities at the next higher level over the
authorities that made the decision on punishment; the party may also, within
15 days after receiving the notice about the decision on punishment, directly
bring a suit in a people’s court.

    The reconsideration department shall, within 60 days after receiving the
application for reconsideration, make a reconsideration decision. The party,
if not satisfied with the reconsideration decision, may, within 15 days after
receiving the reconsideration decision, bring a suit in a people’s court; if
the reconsideration department fails to make a reconsideration decision
within the time limit, the party may, within 15 days after the expiration of
the time limit for reconsideration, bring a suit in a people’s court.

    If a party has not applied for reconsideration, nor brought a suit in
a people’s court within the time limit, nor complied with the decision on
punishment, the department that has made the decision may apply to a people’s
court for compulsory execution.
Chapter VIII  Supplementary Provisions

    Article 45  The State Council shall formulate implementing regulations on
the basis of this Law.

    Article 46  This Law shall enter into force on January 1, 1992. The
Regulations on Tobacco Monopoly promulgated by the State Council on September
23, 1983 shall be annulled simultaneously.





SUPPLEMENTARY PROVISIONS TO MEASURES OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE FOR THE IMPLEMENTATION OF EXAMINATION AND CONFIRMATION OF PRODUCTS EXPORT ENTERPRISES AND TECHNOLOGICALLY-ADVANCED ENTERPRISES WITH FOREIGN INVESTMENT

e0242319961203

The Ministry of Foreign Economic Relations and Trade

Supplementary Provisions to Measures of the Ministry of Foreign Economic Relations and Trade for the Implementation of Examination
and Confirmation of Products Export Enterprises and Technologically-advanced Enterprises with Foreign Investment

the Ministry of Foreign Economic Relations and Trade

March 2, 1992

To improve the system of examination and confirmation of the two types of enterprises, the Ministry of Foreign Economic Relations
and Trade (MOFERT) hereby promulgates the following supplements for its “Measures for the Implementation of Examination and Confirmation
of Products Export Enterprises and Technologically-Advanced Enterprises with Foreign Investment” promulgated on January 27, 1987.

Article 1

Any enterprise with foreign investment which applies to be confirmed as an export-oriented enterprise or a technologically-advanced
enterprise (hereinafter referred to as two-type enterprises) shall be an enterprise turning out tangible products with the exception
of circumstances provided for in Paragraph 2 of Article 5 of these supplements.

Article 2

Organs for examining and confirming the two-type enterprises (EC organs) shall be MOFERT and foreign economic relations and trade
departments of provinces, autonomous regions, municipalities directly under the Central Government, municipalities separately listed
on the State plan and special economic zones (hereinafter referred to as provincial-level EC organs). MOFERT may entrust in writing
provincial-level EC organs to examine two-type enterprises approved and confirmed by MOFERT. MOFERT shall examine two-type enterprises
set up by organizations under ministries, commissions and bureaus of the State Council, or MOFERT may entrust in writing such ministries,
commissions and bureaus to do the job.

If provincial-level EC organs need to entrust examination/ confirmation work of export-oriented enterprises to foreign economic relations
and trade departments of a lower level because of excessive EC work load, they shall obtain prior MOFERT approval.

Article 3

After registering at administrations of industry and commerce and obtaining business licenses, enterprises with foreign investment
can apply to EC organs for confirmation of their two-type-enterprise status. Such organs shall do their job by examining documents
such as the contracts of Chinese-foreign joint or contractual ventures, application forms of foreign-capital enterprises and reports
of feasibility studies, or by examining the exports, adoption of advanced technologies and contract fulfillment of the enterprises
in question.

Article 4

Examination of export-oriented enterprises.

1)

Any enterprises with foreign investment confirmed as export-oriented shall apply to an EC organ for examination within 90 days of
the termination of its first complete calendar year of operation; and, from then on, it shall, before the end of March every year,
submit to its EC organ a report of its exports of the previous year and an annual report of its balance of payments in foreign exchange
(forex).

2)

A favorable balance of payments in forex of a calendar year refers to greater forex earnings than expenditures within the same year,
excluding the amount carried over from the previous year.

3)

For a product, the value of exports shall be calculated according to the actual producer’s price of the time; when there is not a
home-sale price to compare with, the value of its exports shall be calculated as the RMB value of forex earnings of the exports converted
according to the forex-buying rate of the day of the receipt of forex at the local forex-swap center.

For processing with overseas-supplied materials, export goods purchased by foreign-trade firms and export goods processed by enterprises
on behalf of such firms, their export value shall be calculated with the following methods: for processing with overseas-supplied
materials, export value shall be limited to processing fees; for the other two kinds of export goods handled by foreign-trade firms,
their export value shall be calculated according to producer’s prices and be limited to processing fees respectively. The value of
products sold on the home market for forex shall not be included in the export value of the enterprise in question.

The above provisions are applicable to calculating the export value of export-oriented enterprises. The existing system of statistical
compilation remains unchanged with regard to its scope and definition for statistical compilation of the exports of enterprises with
foreign investment.

4)

Examination of export-oriented enterprises shall be conducted once every year by EC organs in collaboration with finance, taxation,
forex control and customs departments of the government at the same level.

Article 5

Confirmation and examination of technologically-advanced enterprises (TAEs).

1)

TAEs shall meet the following requirements:

A.

They shall generally engage in business lines or projects where foreign investment is encouraged by the State;

B.

They shall use internationally advanced and suitable technology and equipment and turn out products which are deemed as newly-developed
in China or are indeed superior in terms of quality and technology compared with identical or similar home-made products;

C.

They shall generally have signed agreements on technology transfers or special articles on technology transfers in their joint venturing
or cooperation agreements; such agreements or articles shall stipulate details on technology transfers, steps for the transfer of
technology and product standards, time limits for the attainment of technology and product standards, and production localization
progress for parts and components; Processing enterprises which are limited to importing equipment which is superior to home-made
machinery in function and efficiency or those which are engaged mainly in assembling supplied parts shall not be confirmed as TAEs.

2)

High-tech and new-tech enterprises engaged in developing authentic advanced technologies may apply for TAE status confirmation even
though they do not turn out tangible products.

3)

Examination and confirmation of TAEs shall be done by industrial departments in charge or science and technology departments organized
by EC organs; or it shall be done by such organs on the basis of prior appraisal by specialists organized by departments in charge.

4)

A enterprise with foreign investment with a TAE status shall apply to an EC organ for examination within 90 days of the termination
of its first complete calendar year of operation. An applying enterprise with foreign investment shall submit to an EC organ a detailed
report on its production, sales, technology transfers, product quality and the progress of production localization.

5)

TAEs, after being confirmed as such, will not generally be submit to annual examination unless otherwise stipulated by their EC organs.

Article 6

Apart from stipulated content, examination of two-type enterprises shall cover how well investors of an enterprise fulfil the terms
of their contract. An enterprise shall fail to qualify as a TAE if it or its investors have seriously violated or failed to fulfil
the contract in question, thus failing to carry out obligations contained in their investment application.

Article 7

For enterprises which apply for confirmation as two-type enterprises after they have gone into operation, examination can proceed
simultaneously with confirmation.

Article 8

Enterprises which fail examinations for three consecutive years shall be deprived of their two-type-enterprise status.

Article 9

EC organs shall send a list of two-type enterprises which have passed or failed to pass annual examinations to banks as well as the
finance, taxation, customs and land-management departments of the government at the same level before May 31 every year.

Article 10

Provincial-level EC organs shall submit a list of confirmed two-type enterprises of the previous year to MOFERT for the record before
January 31 every year. They shall submit the result of examinations of two-type enterprises of the previous year to MOFERT for the
record before May 31 every year. They shall also submit to MOFERT a list of enterprises which have failed examinations for three
consecutive years and are deprived of their two-type-enterprise status.

Article 11

These Provisions shall apply wherever they are contravened by stipulations of the “Measures for the Implementation of Examination
and Confirmation of Products Export Enterprises and Technologically Advanced Enterprises with Foreign Investment.”



 
The Ministry of Foreign Economic Relations and Trade
1992-03-02

 






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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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