Home China Laws Page 207

China Laws

CONSITUTION AMENDMENT

Amendment to the Constitution of the People’s Republic of China

(Effective Date:1988.04.12–Ineffective Date:)

AMENDMENT TO THE CONSTITUTION OF THE PEOPLE’S REPUBLIC OF CHINA

(Adopted at the First Session of the Seventh National People’s Congress on April 12, 1988)

Article 1. Article 11 of the Constitution shall include a new paragraph which reads: “The state permits the private sector of the economy to
exist and develop within the limits prescribed by law. The private sector of the economy is a complement to the socialist public
economy. The state protects the lawful rights and interests of the private sector of the economy, and exercises guidance, supervision
and control over the private sector of the economy.”

Article 2. The fourth paragraph of Article 10 of the Constitution, which provides that ” no organization or individual may appropriate, buy,
sell or lease land or otherwise engage in the transfer of land by unlawful means,” shall be amended as: ” No organization or individual
may appropriate, buy, sell or otherwise engage in the transfer of land by unlawful means. The right to the use of land may be transferred
according to law.”

REGULATIONS FOR CONTROLLING THE REGISTRATION OF ENTERPRISES AS LEGAL PERSONS

Category	ADMINISTRATION FOR INDUSTRY AND COMMERCE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1988-06-03	Effective Date	1988-07-01

Regulations of the People’s Republic of China for Controlling the Registration of Enterprises As Legal Persons

Chapter I  General Provisions
Chapter II  Registration Authorities
Chapter III  Conditions for Registration and Entities to Apply for
Chapter IV  Items of Registration
Chapter V  Registration for Starting Operations
Chapter VI  Changes in Registration
Chapter VII  Cancellation of Registration
Chapter VIII  Announcement, Annual Check-up and Control of Certificates
Chapter IX Control of the Registration of Business Operations by
Chapter X  Supervision and Control
Chapter XI  Supplementary Provisions

(Adopted by the Fourth Executive Meeting of the State Council on May

13, 1988, promulgated by Decree No. 1 of the State Council of the People’s
Republic of China on June 3, 1988, and effective as of July 1, 1988)
Chapter I  General Provisions

Article 1 In accordance with relevant provisions of the General Principles
of the Civil Law of the People’s Republic of China, the present Regulations
are formulated with a view to establishing a system for controlling the
registration of enterprises as legal persons, confirming their status as such,
safeguarding their legitimate rights and interests, stamping out illegal
business operations, and preserving social and economic order.

Article 2 Any of the following enterprises which are qualified as legal
persons shall register as such in accordance with the relevant provisions of
the present Regulations:

(1) enterprises owned by the whole people;

(2) enterprises under collective ownership;

(3) jointly operated enterprises;

(4) Chinese-foreign equity joint ventures, Chinese-foreign contractual
joint ventures and foreign-capital enterprises established within the territory
of the People’s Republic of China;

(5) privately operated enterprises;

(6) other enterprises required by the law to register as legal persons.

Article 3 Those enterprises applying for registration as legal persons
shall be given Business Licenses for Enterprises as Legal Persons and the
status of legal persons when their applications for registration have been
examined and approved by the authorities in charge of the registration of
enterprises as legal persons and their legitimate rights and interests shall
be protected by laws of the State.

Those enterprises, which are required by law to register as legal persons
but which have not gone through the procedures of examination and approval
registration by the authorities in charge of the registration of enterprises
as legal persons, shall not be allowed to engage in business operations.
Chapter II Registration Authorities

Article 4 The authorities in charge of the registration of enterprises as
legal persons (hereinafter referred to as the registration authorities) are
the State Administration for Industry and Commerce and administrative
departments for industry and commerce at various levels. Registration
authorities at various levels shall perform their functions according to law
under the leadership of higher registration authorities and be free from
unlawful interference.

Article 5 The registration of national corporations, enterprise groups
and corporations handling import-export business set up with the approval of
the State Council or departments authorized by the State Council shall be
examined and approved by the State Administration for Industry and Commerce.
The registration of Chinese-foreign equity joint ventures, Chinese-foreign
contractual joint ventures and foreign-capital enterprises shall be examined
and approved by the State Administration for Industry and Commerce or by local
administrative departments for industry and commerce authorized by the State
Administration for Industry and Commerce.

The registration of son (or branch) companies of national corporations,
enterprises, enterprise groups or companies handling import-export trade
established with the approval of the people’s governments of provinces,
autonomous regions or municipalities directly under the Central Government or
departments authorized by them shall be examined and approved by the
administrative departments for industry and commerce of the provinces,
autonomous regions and municipalities directly under the Central Government.

The registration of other enterprises shall be examined and approved by
the administrative departments for industry and commerce of the cities or
counties (districts) where the enterprises are located.

Article 6 Registration authorities at various levels shall institute a
file of the registration of enterprises as legal persons and a system for
tabulating statistics relating to such registration, and collect basic
information about the registration of enterprises as legal persons so as to
serve the development of a planned commodity economy.

Registration authorities shall offer, in a planned manner and according to
the needs of society, the service of providing the public with data about the
registration of enterprises as legal persons.
Chapter III Conditions for Registration and Entities to Apply for
Registration

Article 7 Entities applying for registration as enterprises as legal
persons must satisfy the following conditions, i.e. having:

(1) name, organization and articles of association;

(2) fixed sites for business operations and essential facilities;

(3) funds and employees in conformity with State regulations and in line
with their scale of production, operation or service;

(4) ability to bear civil liabilities independently;

(5) a scope of business in conformity with the provisions of the relevant
laws, regulations and policies of the State.

Article 8 The application of an enterprise for registration as a legal
person shall be filed by the person responsible for establishing the
enterprise.

The registration as a legal person of a jointly operated enterprise which
bears civil labilities independently shall be applied for by the person
responsible for initiating the said enterprise.
Chapter IV Items of Registration

Article 9 The major items to be registered for an enterprise as a legal
person are: name, residence, site for business operation, legal representative,
economic nature, scope of business, mode of operation, registered capital,
number of employees, duration of operation and subdivisions.

Article 10 An enterprise as a legal person shall use only one name. The
name to be used by the enterprise as a legal person in its application for
registration shall be examined by the registration authorities and, after it
is approved and registered, the enterprise as a legal person shall enjoy the
right to the exclusive use of the registered name within a definite limit.

Those who apply for establishing Chinese-foreign equity joint ventures,
Chinese-foreign contractual joint ventures or foreign-capital enterprises
shall apply to the registration authorities for registering the names of the
enterprises before their contracts and articles of association are examined
and approved.

Article 11 The legal representative of an enterprise as a legal person,
which has been registered after examination and approval by a registration
authority, shall be the signatory who exercises functions and powers on behalf
of the enterprise. The signature of the legal representative shall be
submitted to the registration authority for the record.

Article 12 The registered capital of an enterprise as a legal person
represents the total value of the property the State entrusts to it for
operation and management or that of the property owned by the enterprise
itself.

When an enterprise as a legal person registers for starting operations,
the discrepancy between the sum of capital it applies for registration and the
sum of capital it actually possesses shall be handled in accordance with
specific regulations of the State.

Article 13 The scope of business of an enterprise as a legal person shall
be in harmony, with its capital, sites, equipment, employees and technical
force. It may focus on one line of business as its main operation while
engaging in other operations simultaneously in accordance with relevant
regulations of the State. An enterprise as a legal person shall engage in
operations within the scope of business as approved in registration.
Chapter V Registration for Starting Operations

Article 14 An enterprise as a legal person shall apply to a registration
authority for registration for starting operations within 30 days after the
approval of the department in charge of it or that of an authority for
examination and approval. For an enterprise which does not have a department
in charge or authority for examination and approval, its application for
registration for starting operations shall be examined by a registration
authority. The registration authority shall make a decision of approval or
disapproval of the application for registration within 30 days after receiving
it.

Article 15 An enterprise as a legal person shall submit the following
papers when applying for registration for starting operations:

(1) an application for registration signed by the person responsible for
its establishment;

(2) the document of approval issued by the department in charge or the
authority for examination and approval;

(3) its articles of association;

(4) a certificate of its creditworthiness, a certificate of the
verification of its capital or a guarantee for its capital;

(5) a certificate of the identity of the principal responsible person of
the enterprise;

(6) a certificate of the right to use the residence and site for operation;

(7) other relevant papers and certificates.

Article 16 When the application filed by an entity for starting
operations as an enterprise as a legal person has been examined and approved
by a registration authority and a Business Licenses for Enterprises as a Legal
Person is received, the enterprise shall be considered as established. The
enterprises as a legal person may henceforth have its official seal made, open
a bank account, sign contracts and conduct business operations by dint of its
Business License.

The registration authority may, after a check-up, issue duplicates of the
Business License, if the enterprise as a legal person needs them for its
business operations.
Chapter VI Changes in Registration

Article 17 An enterprise as a legal person shall apply for making changes
in its registration whenever it changes its name, residence, site, legal
representative, economic nature, scrape of business, mode of operation,
registered capital or duration of operation and whenever it increases or
disbands its branches.

Article 18 An enterprise as a legal person shall apply to the registration
authority for making changes in its registration within 30 days after the
changes are approved by the department in charge or by the authority for
examination and approval.

Article 19 An enterprise as a legal person shall apply to the registration
authority for making changes in its registration, or for registration for
starting operations or for cancelling its registration, whenever it is split
up, or merged with others or moved elsewhere, within 30 days after these
changes are approved by the department in charge or by the authority for
examination and approval.
Chapter VII Cancellation of Registration

Article 20 An enterprise as a legal person shall go through the
procedures for cancelling its registration with the registration authority
when it closes down, is dissolved, declares bankruptcy or terminates its
business operations for other reasons.

Article 21 Whenever an enterprise as a legal person is to cancel its
registration, it must submit an application signed by its legal representative,
a document of approval issued by the department in charge or by the authority
for examination and approval, a certificate showing the completion of the
clearing up of its liabilities, or a document showing that a liquidation
organization will be responsible for clearing up its creditor’s rights and
liabilities. The registration authority, after examining and approving the
application, shall recall the Business License for Enterprise as a Legal
Person, duplicates of the License, take over the official seal of the
enterprise, and notify the banks at which it has opened an account of the
cancellation of its registration.

Article 22 An enterprise as a legal person, which fails to start
operations 6 months after receiving its Business License for Enterprise as a
Legal Person or which has ceased its operations for a year, shall be regarded
as having closed down, and the registration authority shall recall its Business
License for Enterprises as a Legal Person, duplicates of the License, take
over its official seal and notify the banks at which it has opened an account
of the cancellation of its registration.
Chapter VIII Announcement, Annual Check-up and Control of Certificates

Article 23 The registration authority shall issue registration
announcements whenever an enterprise as a legal person starts operations,
changes its name or cancels its registration. No other organ shall be enpost_titled
to issue such announcements without the approval of the registration authority.

Article 24 A system for conducting annual check-up shall be instituted to
administer the registration of enterprises as legal persons. An enterprise as
a legal person shall submit its annual check-up report, its balance sheet or
statement of assets and liabilities to the registration authority at the time
it prescribes. The registration authority shall check up the major items
contained in the registration of the enterprise as a legal person.

Article 25 The Business License for Enterprises as a Legal Person issued
by the registration authority is the certificate of an enterprise as a legal
person. Except the registration authority, which may withhold or cancel it in
accordance with the legal procedures, no other organ or individual is enpost_titled
to take over, detain or destroy it.

An enterprise as a legal person, which has lost its Business License
for Enterprise as a Legal Person or duplicates of the License, must announce
the loss in a newspaper before it can apply for a replacement.

The Business License for Enterprise as a Legal Person and its duplicates
may not be forged, altered, leased, lent, sold or reproduced without
permission.

Article 26 An enterprise as a legal person shall pay registration and
annual check-up fees according to the rules when it registers for starting
operations and applies for making changes in its registration and when it
receives the annual check-up. The fees to be charged on registration for
starting operations shall be 1 millesimal of the sum of the enterprise’s
registered capital; in cases where the registered capital exceeds 10 million
yuan, the fees to be charged on the portion in excess of the said sum shall
be 0.5 millesimal of it; in cases where the registered capital exceeds 100
million yuan, no fees shall be charged on the portion in excess of the said sum
. The minimum registration fee shall be 50 yuan. Fees to be charged on making
changes in the registration and conducting the annual check-up shall be
prescribed by the State Administration for Industry and Commerce.
Chapter IX Control of the Registration of Business Operations by
Institutions and Scientific and Technological Public Organizations

Article 27 When institutions or scientific and technological public
organizations establish enterprises qualified as legal persons in line with
relevant regulations of the state, the applications for registration shall be
filed by the enterprises. They may engage in business operations only after
their applications for registration have been approved by the registration
authorities and after they have received their respective Business Licenses
for Enterprise as a Legal Person.

Article 28 Institutions, which are run like enterprises in accordance
with relevant regulations of the State and which no longer receive operating
funds from the State, or scientific and technological public organizations
which are established for business operations, shall apply for registration if
they are qualified to be enterprises as legal persons. They may engage in
business operations only after their applications have been approved by the
registration authorities and they have received their respective Business
Licenses for Enterprise as a Legal Person.
Chapter X Supervision and Control

Article 29 The registration authorities shall exercise the following
functions of supervision and control over enterprises as legal persons
according to law:

(1) supervising the registration for starting operations, the application
for making changes and the cancellation of registration by enterprises as
legal persons according to regulations;

(2) supervising the conduct of business operations by enterprises as legal
persons in line with the items of registrations, articles of association
and contracts;

(3) supervising the compliance of enterprises as legal persons and
their legal representatives with laws, regulations and policies of the State;

(4) stopping, investigating or dealing with illegal business operations
of enterprise as legal persons; protecting their legitimate rights and
interests.

Article 30 The registration authority may, in light of the circumstance,
penalize an enterprise as legal person by warning, fine, confiscation of
illegal earnings, suspension of business for consideration, or withholding or
revoking the Business License for Enterprise as a legal Person, if it is
involved in any of the following case:

(1) concealing the true situation and resorting to deception in the course
of registration or starting operations before the approval of its registration;

(2) altering major items in the registration without permission or
engaging in business operations beyond the scope of business as approved in
registration;

(3) failing to cancel registration according to the rules or failing to
submit the check-up report or receive the annual check-up;

(4) forging, altering, leasing, lending, transferring, selling or
reproducing the Business License for Enterprise as a Legal Person or its
duplicates without permission;

(5) withdrawing or transferring capital, concealing assets or dodging
liabilities;

(6) engaging in illegal business operations.

While penalizing an enterprise as a legal person in line with the above
provisions, the registration authority shall investigate its legal
representative’s administrative and economic responsibilities according to the
seriousness of the violations of the law; judicial organs shall investigate
the criminal responsibilities of those who have violated the criminal law.

Article 31 The registration authority shall ascertain the facts and act
according to law when dealing with the illegal activities of an enterprise as
a legal person and notify the parties concerned of its decision in writing.

Article 32 When an enterprise as a legal person disagrees with the
penalty meted out but by the registration authority, it may appeal within 15
days after receiving the notice of penalty, to the immediate higher
registration authority for reconsideration. The higher registration authority
shall make a reconsideration decision within 30 days after receiving the appeal
for reconsideration. The enterprise may file a suit in a people’s court within
30 days after receiving the notice of reconsideration in it disagrees with the
reconsideration decision. The registration authority may, in accordance with
the prescribed procedures, ask the bank at which the enterprise has an account
to transfer from its account the sum to be fined or confiscated as penatly, if
it fails to appeal or to pay the fine or the confiscated sum at the expiry of
the prescribed period.

Article 33 When an enterprise as a legal person has its business license
revoked, the registration authority shall take over its official seal and
notify the bank at which it has account of the cancellation of its
registration, and the department in charge or a liquidation organization shall
be responsible for settling its creditor’s rights and liabilities.

Article 34 Any functionary of the department in charge, the authority
for examination and approval or of the registration authority, who has violated
the present Regulations, neglected his duties to a serious extent, abused his
powers, practised graft and embezzlement, extorted and taken bribes or
encroached on the legitimate rights and interests of an enterprise as a legal
person, shall be given administrative or economic penalty in light of the
circumstances; the judicial organ shall investigate, according to law, his
criminal responsibility, if he violates the criminal law.
Chapter XI Supplementary Provisions

Article 35 When an enterprise as a legal person establishes a branch
which is incapable of bearing civil liability independently, the registration
of the branch shall be applied for by the enterprise. The branch shall
receive a Business License after the application is approved by the
registration authority and may engage in business operations within the scope
of business as approved in registration.

In accordance with relevant State regulations, administrative institutions
depending on State funding or scientific and technological social bodies must
apply for registration if they engage in business operations or establish
enterprises not qualified; as legal persons. They shall receive Business
Licenses after their applications are approved by the registration authorities
and may engage in business operations within the scope of business as approved
in registration.

The specific control of the registration involved shall be enforced with
reference to the provisions of the present Regulations.

Article 36 For new enterprises to be established with the approval of
relevant departments of the State Council or planning departments at various
levels, if their preparations have been under way for more than 1 year,
applications for the registration of the establishment shall be filed
according to specific regulations.

Article 37 Enterprises qualified as legal persons, whose registration
was approved by the registration authorities before the present Regulations
are put into effect, are not required to go through the formalities again for
registration as enterprises as legal persons.

Article 38 The State Administration for Industry and Commerce shall be
responsible for interpreting the present Regulations; and the rules for their
implementation shall also be formulated by the State Administration for
Industry and Commerce.

Article 39 The present Regulations shall enter into force on July 1,
1988. The Regulations for Controlling the Registration of Chinese-Foreign
Equity Joint Ventures promulgated by the State Council on July 26, 1980, the
Regulations for Controlling the Registration of Industrial and Commercial
Enterprises promulgated by the State Council on August 9, 1982, and the
Interim Provisions for Controlling the Registration of Companies approved by
the State Council on August 14, 1985 and promulgated by the State
Administration for Industry and Commerce on August 25, 1985 shall all be
abrogated on the same date.

INTERIM REGULATIONS ON STAMP TAX

Category	TAXATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1988-08-06	Effective Date	1988-10-01

Interim Regulations of the People’s Republic of China on Stamp Tax (Note 1.)

Appendix: Stamp Tax Schedule of Tax Items and Tax Rates
Note:

(Adopted by the Ninth Executive Meeting of the State Council on June 24,

1988 and promulgated by Decree No.11 of the State Council of the People’s
Republic of China on August 6, 1988, and become effective as of October 1,
1988)

Article 1 All units and individuals who execute or receive, within the
territory of the People’s Republic of China, documents in the categories
specified in these Regulations shall be taxpayers subject to stamp tax
(hereinafter referred to as “taxpayers”), and shall pay stamp tax in
accordance with the provisions of these Regulations.

Article 2 The following categories of documents shall be taxable
documents:

(1) contracts or documents in the nature of a contract with regard to:
purchases and sales, the undertaking of processing, contracting for
construction projects, property leasing, commodity transport, warehousing,
loans, property, insurance, technology;

(2) documents for transfer of property rights;

(3) business account books;

(4) certificates evidencing rights or licences; and

(5) other documents that are taxable as determined by the Ministry of
Finance.

Article 3 According to the nature of the taxable document, taxpayers
shall calculate the amount of tax due on the basis of a flat tax rate or a
fixed amount per document. Determination the specific tax rate or amount of
tax shall be made with reference to the Schedule of Tax Items and Tax Rates
accompanying these Regulations.

No stamp tax shall be due where the amount of tax payable does not exceed
one jiao.

Where the amount of tax payable is one jiao or more, an odd amount not
exceeding five fen shall not be counted; where the odd amount is five fen or
more, the tax shall be calculated as one jiao.

Article 4 The following documents shall be exempt from stamp tax:

(1) duplicates or copies of documents on which stamp tax has already been
paid;

(2) documents executed for the donation of property to the government,
social welfare establishments or schools by the property owner;

(3) other documents which are exempt from stamp tax with the approval of
the Ministry of Finance.

Article 5 Measures for the payment of stamp tax shall be implemented
whereby taxpayers shall, in accordance with the provisions, calculate the
amount of tax payable and purchase and affix at one time the full
corresponding amount of tax stamps (hereinafter referred to as “stamping”).

In order to simplify the stamping procedures where the amount of tax to be
paid is relatively large or where frequent stamping is necessary, taxpayers
may apply to the tax authorities to use a tax payment account instead of
stamping, or a periodic payment method.

Article 6 “Fax stamps shall be affixed to taxable documents; taxpayers
shall cancel each stamp along its border with a seal or a drawn line. Tax
stamps that have already been affixed may not be reused.

Article 7 Tax stamps shall be affixed to taxable documents at the time
of execution or upon receipt.

Article 8 Where the same document is executed by two or more parties
and each party holds a copy, each party shall be responsible for affixing on
its own copy the full amount of tax stamps due.

Article 9 Where a document on which tax stamps have already been affixed
is amended, resulting in an increase in the value thereof, additional tax
stamps shall be affixed on the document in accordance with the amount of such
increase.

Article 10 The tax authorities shall be responsible for the
administration of the collection of stamp tax.

Article 11 The State Taxation Bureau shall supervise the printing of the
tax stamps. The face value of tax stamps shall be denominated in Renminbi.

Article 12 Units issuing or processing taxable documents shall be
responsible for the supervision to taxpayers in respect of the payment of
stamp tax in accordance with the law.

Article 13 Where taxpayers are found to have engaged in any of the
following, the tax authorities shall impose penalties in light of the
seriousness of the case:

(1) in the case of a failure to affix tax stamps, or to affix an
insufficient amount of tax stamps, on taxable documents, the tax authorities
may, in addition to ordering taxpayers to make up the tax stamps, impose a
fine equal to twenty times or less the amount of tax stamps due;

(2) in the case of a violation of the provisions of Paragraph 1 of Article
6 of these Regulations, the tax authorities may impose a fine equal to ten
times or less the amount of the tax stamps that have not been cancelled by a
seal or a drawn line; and

(3) in the case of a violation of the provisions of Paragraph 2 of Article
6 of these Regulations, the tax authorities may impose a fine equal
to thirty times or less the amount of the tax stamps that have been reused.

In a case where tax stamps have been forged, the tax authorities shall
submit the matter to the judicial authorities for investigation into criminal
liability in accordance with the law.

Article 14 The collection and administration of stamp tax shall, in
addition to the provisions of these Regulations, be administered in accordance
with the pertinent provisions of the Interim Regulations of the People’s
Republic of China for Tax Administration.

Article 15 The Ministry of Finance shall be responsible for the
interpretation of these Regulations. The rules for the implementation of these
Regulations shall be formulated by the Ministry of Finance.

Article 16 These Regulations shall become effective as of October 1, 1988.

Appendix: Stamp Tax Schedule of Tax Items and Tax Rates

    Stamp Tax Schedule of Tax Items and Tax Rates

————————————————————————
|   Tax Item   |     Scope      | Tax Rate |Tax Payer|    Remarks      |
|————–|—————-|———-|———|—————–|
|1. purchases  |including con-  | 0.03% of | parties |
|
| and sales    |tracts for supp-| the value| to the  |
|
| contracts    |ly, advanced    | of the   | contract|
|
|              |sales, institu- | purchase |
|                 |
|              |tional pur-     | or sale  |
|                 |
|              |chases, combin- |          |
|                 |
|              |ed purchase and |          |
|                 |
|              |cooperative     |          |
|                 |
|              |manufacturing,  |          |
|                 |
|              |assembly com-   |          |
|                 |
|              |pensation trade,|          |
|                 |
|              |barter, and so  |          |
|                 |
|              |on.
|          |         |
|
|————–|—————-|———-|———|—————–|
|2. processing |including con-  |stamping  | parties |
|
| contracts    |tracts for pro- |as 0.05%  | to the  |
|
|              |cessing, special|of the in-| contract|
|
|              |orders, repair  |come from |
|                 |
|              |and renovation, |processing|
|                 |
|              |overhaul, print-|or        |
|                 |
|              |ing,advertising,|contract- |
|                 |
|              |surveying,      |ing
|         |
|
|              |testing and so  |          |
|                 |
|              |on.
|          |         |
|
|————–|—————-|———-|———|—————–|
|3. survey and |including con-  | 0.05% of | parties |
|
| design con-  |tracts for      | receipts | to the  |
|
| tracts for   |survey and      |          |
contract|                 |
| engineering  |design          |          |
|                 |
| and construc-|                |          |
|                 |
| tion projects|                |          |
|                 |
|————–|—————-|———-|———|—————–|
|4.construction|including con-  | 0.03% of | parties |
|
| and installa-|tracts for con- | the con- | to the  |
|
| tion project |straction and   | tracted  | contract|
|
| contracts    |installation    | amount   |
|                 |
|              |undertaking     |          |
|                 |
|————–|—————-|———-|———|—————–|
|5. property   |including con-  | 0.1% of  | parties |
|
| leasing      |tracts for      | the lease| to the  |
|
| contracts    |leasing of      | amounts  | contract|
|
|              |buildings,      |
less than|         |
|
|              |vessels,        |
one yuan |         |
|
|              |aircraft,
| to be    |         |
|
|              |motor vehicles, | stamped  |
|                 |
|              |machinery, ap-  | as one
|         |
|
|              |pliances and    | yuan
|         |
|
|              |other such      |          |
|                 |
|              |equipment
|          |         |
|
|————–|—————-|———-|———|—————–|
|6. goods      |including con-  | 0.05% of | parties | where the
|
| transporta-  |tracts for civil|   the    | to the  | documents are
|
| tion         |aviation,       | transpor-| contract|used as
contracts|
| contracts    |railway         | tation   |
|, stamping shall |
|              |transportation, | fees
|         | be made to the  |
|              |maritime        |          |
| documents as in |
|              |transportation. |          |
| the case of     |
|              |inland water-   |          |
| contracts       |
|              |ways, overland  |          |
|                 |
|              |and through     |          |
|                 |
|              |transportation  |          |
|                 |
|————–|—————-|———-|———|—————–|
|7. warehousing|including con-  | 0.01% of | parties |where warehousing|
|and safekeep- |tracts for      | the ware-| to the  | or safekeeping  |
|ing contracts |warehousing     | housing  | contract|receipts are used|
|              |and safekeeping | and      |
| as contracts,   |
|              |                |
safekeep-|         | stamping shall  |
|              |                |
ing fee  |         | be made to the  |
|              |                |          |
| documents as in |
|              |                |          |
| the case of     |
|              |                |          |
| contracts       |
|————–|—————-|———-|———|—————–|
|8. contracts  |including con-  | 0.005% of| parties | if documents are|
| for loan     |tracts for loan | the loan | to the  | used as con-    |
|              |entered by      |
amount   | contract| tracts, stamping|
|              |banks and other |          |
| shall be made to|
|              |financial
|          |         | the documents
|
|              |organizations   |          |
| in the case of  |
|              |and borrowers   |          |
| contracts       |
|              |except interbank|          |
|                 |
|              |loan agreements |          |
|                 |
|————–|—————-|———-|———|—————–|
|9. property   |including in-   | 0.003% of| parties | if documents are|
| insurance    |surance con-    | the      | to the  |
used as con-    |
| contracts    |tracts for pro- | amount   | contract| tracts, stamping|
|              |perty, bonding, | insured  |
| shall be made to|
|              |guarantee, sure-|          |
| the documents as|
|              |ty and credit   |          |
| in the case of  |
|              |undertakings    |          |
| contracts       |
|              |and so on
|          |         |
|
|              |                |          |
|                 |
|————–|—————-|———-|———|—————–|
|10. technology|including con-  | 0.03% of | parties |
|
|contracts     |tracts for      | the in-  | to the  |
|
|              |technology      |
dicated  | contract|                 |
|              |development     | amount
|         |
|
|              |and transfer,   |          |
|                 |
|              |consulting, ser-|          |
|                 |
|              |vice, and so on |          |
|                 |
|————–|—————-|———-|———|—————–|
|11. property

REGULATIONS ON PREVENTION AND CURE OF AMBIENT NOISE POLLUTION

Category	ENVIRONMENTAL PROTECTION	Organ of Promulgation	The State Council	Status of Effect	Invalidated
Date of Promulgation	1989-09-26	Effective Date	1989-12-01	Date of Invalidation	1997-03-01

Regulations of the People’s Republic of China on Prevention and Cure of Ambient Noise Pollution

Chapter I  General Provisions
Chapter II  Standards of Ambient Noise and Monitor and Measure of Ambient
Chapter III  Provention and Cure of Industrial Noise
Chapter IV  Provention and Cure of Noise Pollution out of Construction
Chapter V  Provention and Cure of Noise Pollution from Communications
Chapter VI  Provention and Cure of Noise Pollution from Social Lives
Chapter VII  Legal Liabilities
Chapter VIII  Supplementary Provisions

(Adopted by the 47th Executive Meeting of the State Council on September

1, 1989, promulgated by Decree No.40 of the State Council of the People’s
Republic of China on September 26, 1989)(Editor’s Note: These Regulations
have been annulled by Law of the People’s Republic of China on the Prevention
and Control of Environmental Noise Pollution promulgated on October 29, 1996)
Chapter I  General Provisions

Article 1 With a view to preventing and curing ambient noise pollution,
ensuring for people a good living environment and safeguarding health of
people, the present Regulations are hereby formulated.

Article 2 The term “ambient noise” mentioned in the present Regulations
refers to any sound that is produced in industrial production, construction,
transportation, and other social lives and that affects living environment
thereabout.

The term “ambient noise pollution” mentioned in the present Regulations
refers to emission of the undesired ambient sound to such an extent that
exceeds the state prescribed standards of ambient sound and disturbs people’s
working, studying, living and other normal activities.

Article 3 Any unit or individual whoever emits undesired ambient sound
within the territory of the People’s Republic of China shall comply with the
present Regulations.

Article 4 The State Council and local people’s governments at different
levels shall include prevention and cure of ambient noise pollution in their
plans for state economy and society development and shall adopt countermoves
and measures to prevent and cure ambient noise pollution.

Article 5 Local governments at different levels when formulating
construction programmes for cities, towns and villiages shall properly design
different functional areas and location of constructions, structions and roads
in such a way that prevents the future ambient noise from polluting the
environment and safeguards peace of the living environment.

Article 6 Environmental protection departments of local governments at
different levels shall be responsible for unified supervision and
administration of prevention and cure of ambient noise pollution.

Departments at different levels in charge of social security,
transportation, railway and civil aviation shall be responsible for
supervision and control of ambient noise emitted by motor- driven
vehicles, trains, ships and aircrafts respectively.

Public security organs at different levels shall be resposible for
supervision and control of ambient noise emitted in social lives.

Article 7 Any unit or individual shall have the duty to protect the
environment from noise pollution and shall have the right to report and charge
against any unit or individual who creates ambient noise pollution.

Any unit or individual who is directly affected by ambient noise pollution
shall have the right to claim for alleviation and elimination of the harm of
ambient noise pollution.

Article 8 The State shall encourage scientific research on provention
and cure of ambient noise pollution, spread advanced technology thereof and
improve science and technology on provention and cure of ambient noise
pollution.

Article 9 The people’s government shall extend praise and reward to those
units and individuals who have made outstanding achivements in provention and
cure of ambient noise pollution.
Chapter II Standards of Ambient Noise and Monitor and Measure of Ambient
Noise

Article 10 The environment protection department of the State Council
shall formulate the national quality standards governing ambient noise.

Local people’s governments at and above the county level shall, according
to prescriptions of diffenent national ambient noise quality standards
applicable to different districts, designate different environmental districts
within their own administrative regions.

Article 11 The environment protection department of the State Council
shall formulate the national standards governing ambient noise emission
in accordance with the national ambient noise quality standards and in
light of economic and technological conditions.

The people’s government of province, profecture or autonomous region may
in consideration of local needs formulate local standards governing ambient
noise emission of items which are not covered by the national standards; or
where necessity so arises and where economic and technological conditions so
permit formulate stricter local standards than the national ones on items
already included in the national standards. Local standards governing ambient
noise emission shall be submitted to the environment protection department of
the State Council for record.

Whenever ambient noise is emitted in the living areas where local
standards governing ambient noise emission are available, the local standards
shall be complied with.

Article 12 The environment protection department of the State Council
shall establish a system for monitoring and measuring ambient noise, organise
a net for monitoring and measuring ambient noise and formulate unified
methodology for monitoring and measuring ambient noise.

Article 13 Wherever the ambient noise emission standards are exceeded,
effective measures shall be taken to bring the situation under control and a
fee shall be levied for pollution emission above nomal standards according to
corresponding state provisions. The fees so levied shall be used for the
purpose of provention and cure of ambient noise pollution.

Article 14 Environment protection departments and other concerned
supervisory and administrative organs shall within their own territory
administration have the power to conduct on- the- spot investigations with any
unit or individual who has ambient noise imitted. The concerned unit and
individual shall report the true situation and supplyy necessary materials.
The investigator shall have the duty to keep confidential technological and
business secrets for the benefit of concerned unit or individual.
Chapter III Provention and Cure of Industrial Noise

Article 15 Any new construction, reconstruction or extension shall be
subject to corresponding state provisions regarding environment protection
with construction.

The report of environmental implications of construction shall include
assessment of possible ambient noise emitted in the construction, provisions
on provention and cure measures and shall be submitted to environment
protection department for approval in accordance with prescribed procedures.

Finished construction before being used for production or other purposes
shall have its facilities for proventing and curing noise pollution be subject
to the check- up of environment protection department and be deemed up to the
standard.

Article 16 Wherever industrial noise is emitted to ambient living
environment, a report shall be submited to the environment protection
department of the local government for registration of all facilities that
emits noise, facilities for cure of noise pollution, types, number of noise
sources and intensity of the noise emitted under normal operation conditions;
and relevant materials concerning provention and cure of noise pollution
shall be supplied.

In case there is a great change concerning the type, number of noise
sources and intensity of noise, it shall be reported in time. Dismantlement or
idling of facilities for cure of noise pollution shall be subject to approval
of environment protection department of the local people’s government.

Article 17 Enterprises and institutions whenever having noise emitted
into ambient living environment shall comply with corresponding state
prescriptions of standards governing emission of ambient noise within limited
boundary.

Article 18 Any enterprise or institution who has noise emitted in excess
of the state prescribed standards governing emission of ambient noise within
limited boundary and consequently creates serious environmental pollution
shall cure the situation within a limited time.

The cure of noise pollution within a limited time by an enterprise or
institution under the auspices of the people’s government at or below the
municipal or county level shall be proposed by the environment protection
department of the municipal or county people’s government. The proposal shall
be submitted for approval to the people’s government at the same level. The
cure of noise pollution within a limited time by an enterprise or institution
under the direct auspices of relevant departments of the State Council or the
people’s government of province, autonomou regions or municipality under the
direct leadership of the central government shall be proprosed by the
environment protection department of the people’s government of province,
autonomous regions or municipality under the direct leadership of the central
government. The proposal shall be submitted for approval the people’s
government at the same level.

Article 19 In case an enterprise which produces products of urgent
necessity to the national economy is unable to eliminate ambient noise
pollution through controll of noise sources due to actual economical or
technological restrictions, the enterprise shall adopt effect measures to
reduce the harm of noise pollution to a minimum and shall make an agreement
through negotiation with the organisation of suffered residents and other
relevant units opon other arrangements for protection of the rights and
interests of the victims subject to the approval of the local people’s
government.

Article 20 Any unit who engages in activities with occasional emission of
strong noise shall in advance file an application with the environment
protection department of the local people’s government and the public security
organ, only after the obtainment of approval from which can such activities
be conducted.

In advance to the occassional emission of strong noise the environment
protection department of the local people’s government and the public security
organ shall make a joint declaration to notify the public.
Chapter IV Provention and Cure of Noise Pollution out of Construction

Article 21 Any unit in charge of construction who has noise emitted into
ambient living environment shall comply with state prescribed standards
governing emission of ambient noise within limited boundary of construction.

Article 22 In case facilities, equipments or other apparatus when used
in construction may create noise in excess to state prescribed standards
governing emission of ambient noise within limited boundary of construction,
a report shall be made 15 days prior to the beginning of construction to
environment protection department of the local people’s government upon the
name of the construction project, the name of the unit in charge of
construction, location and length of construction, intensity of noise possibly
emitted within the construction boundary and measures to be adopted for
prevention and control of noise pollution.

Article 23 In case the emission of construciton noise exceeds the state
prescribed standards governing emission of ambient noise within limited
construction boundary to the detriment of the ambient living environment,
environment protection department of the local people’s government may impose
restriction upon the time of construction subject to approval of the people’s
government at or above the county level.

Article 24 It shall be prohibited to conduct construction at night that
creates noise pollution and disturbs the rest of residents in residential
districts, cultural and educaional districts or convalescent districts except
for urgent repairs or emergency. If technology or special necessity requires
continuous construciton, it shall be subject to approval of environment
department of the people’s government at or above the county level.

Article 25 In case the emission of construction noise into ambient living
environment exceeds state prescribed standards governing emission of ambient
noise within limited construction boundary and is unable to be eliminated
through controll of noise sources due to actual economical or technological
restrictions, effect measures shall be adopted to reduce noise pollution to a
minimum and an agreement shall be made through negotiation with the
organisation of the affected residents and other relevant units opon other
arrangements for protection of the rights and interests of the victims subject
to the approval of the local people’s government.
Chapter V Provention and Cure of Noise Pollution from Communications

Article 26 Moving motor vehicles shall have equipped with them silencers
and whistles complying with prescriptions and shall keep effective
technological functions. The whole vehicle shall not emit noise in excess of
prescribed standards governing emission of noise by motor vehicles. Those
which can not reach the standards in terms of noise emission shall not be
licensed.

Equipment of alarms on fire trucks, ambulances, construction
emergency trucks and security trucks shall comply with corresponding
provisions of the security department. Alarms shall not be used when it
is not an urgent situation and where such use is prohibited.

Article 27 Different motor-driven ships including hovercrafts shall
use sound signals according to corresponding provisions.

Article 28 Public security departments and communications
administration departments of the people’s governemnts at or above the
county level may, with a view to preventing and controlling of traffic
noise pollution and reaching the quality standards governing ambient
noise, make their prescriptions as to where and when motor- driven
vehicles and ships are prohibited from moving.

Article 29 Trains passing or arriving in urban district of a city,
convalescent district or scenic spot shall use only air whistle.

Article 30 Aircrafts which emit noise when taking off or landing shall
conform to the standards governing emission of noise by aircrafts. Aircrafts
shall be prohibited from exercising hedgehopping in the air over urban
district of a city.

Article 31 Bus or railway stations, marshalling stations, harbour,
wharfs, airports and other hubs of communications where loudspeakers are used
shall bring the volume of loudspeakers under control so as to reduce the
influence of noise upon ambient environment.
Chapter VI Provention and Cure of Noise Pollution from Social Lives

Article 32 Loudspeakers of strong power and propaganda cars with
loudspeakers of strong power shall be banned to be used in public
districts such as streets, squares, parks and convalescent districts
and scenic spots without prior approval of the people’s government at
or above the county level.

Article 33 It shall be prohibited to make loud noise to canvassing
customer in commercial districts.

Article 34 Managers of entertainment places, sports gymnasiums and
stadiums shall adopt effective measures to lessen or eliminate the
influence of noise upon ambient environment.

Article 35 Anyone who uses household appliances or organise indoor
entertainment activities shall control the volume of sound to avoid
disturbing other residents.
Chapter VII Legal Liabilities

Article 36 For committing of any of the following offences in
violation of the present Regulations, environment protection department
or other supervisory and administrative organ may, besides charging
the offender to make correction, give him a warning or fine punishement
in light of the seriousness of the offence:

1) refusal of or lying in report for registration of matters concering
emission of noise as are required by environment protection department
of the State Council;

2) arbitrarily dismantling or idling facilities for prevention and
cure of noise pollution or having noise emitted in excess of prescribed
standards governing noise emission without prior approval of
environment protection department;

3) refusal to accept on-spot investigation of environment protection
department or other supervisory and administrative organ or practicing
fraud during the investigation;

4) disobey of the provisions of the people’s government regarding
restriction on time of construction or continuing construction without
prior approval at night in residential districts, cultural and
educational districs, convalescent districts which disturbs the rest of
resident;

5) vehicles emitting noise in excess of prescribed standards governing
emission of noise by motor-driven vehicles;

6) trains using air whistles when passing or arriving in urban
district of cities, convalescent districts or scenic spots;

Article 37 In case the fee for emission of pollution fails to be paid, a
fine may be imposed in addition to pursuing the payment of the fee or
the fee for emission of pollution in excess of prescribed standards and
overdue fine.

Article 38 Committing of any of the following offence in violation of
the present Regulations shall be punished by the public security organs
according to the Regulations of the People’s Republic of China
Regarding Security Administration and Penalties:

1) using loudspeakers of strong power or propaganda cars with strong
power loudspeakers in public places such as streets, squares, parkes or
in convalescent districts or scenic spots without prior approval of the
people’s government at or above the county level;

2) resorting to methods with loud noise to canvass customers;

3) making noise that disturbs others indoors or in public places;

4) failure to equip or use alarms for vehicles of special purposes in
accordance with correponding provisions;

5) driving motor vehicles or sailing ships when and where it is
banned to do so;

Article 39 In case a construction is used for production or other
purposes when facilities for provention and cure of noise pollution
are not finished or up to the corresponding state provisions regarding
environment protection with constructions, the original environment
protection department who reviewed and approved the report of
environment implications of the construction shall order to stop
production or use and may impose a fine as well.

Article 40 In case an enterprise or institution fails to complete the
ordered treatment of noise within a limited time, a fine may be imposed
in light of the conscequent damages or a charge may be issued to
suspend production or shut down in addition to payment of certain fee
for emission of pollution according to corresponding state provisions.

The punishment of fine shall be decided by environment protection
department or other supervisory and administrative department. The
charge to suspend production or shut down shall be issued by the
people’s government who ordered the treatment of noise within a limited
time. If the charge to stop production or shut down is to be issued to
an enterprise or institution under the direct auspices of relevant
department of the State Council, it shall be submitted for approval to
the revelant department.

Article 41 If an offence in violation of the present Regulations
causes serious damages in consequence of noise pollution, the unit to
which the offender is attached or the responible organ at the higher
level shall impose an administrative disciplinary sanction, or in case
a crime is constituted, the criminal liabilities shall be assessed.

Article 42 If the person concerned refuses to accept the disciplinary
sanction, the person may within 15 days upon receipt of the notice of
sanction apply for reconsideration with the authority of a level
immediately above the organ who decided the sanction. If the person
concerned again refuses to accept the decision after reconsideration,
the person may within 15 days upon receipt of notice of decision after
reconsideration bring a suit with the people’s court. Alternatively the
person concerned may within 15 days upon receipt of the notice of sanction
directly go to the people’s court for legal proceedings. If the deadline for
such actions has been passed with the person concerned neither applying for
reconsideration or sueing with the people’s court nor carrying out the
decision of sanction, the organ who made the decision of sanction shall apply
with the people’s court for enforced implementation of the decision.

Any refusal to accept punishment of security administration shall be
handled according to the regulations regarding security administration
and penalties.

Article 43 Any unit or individual who have caused emission of noise
pollution shall have the liabilities to eliminate the consequent harms
and compensate the units or individuals for the losses they directly
suffers.

Disputes aring from compensation liabilities and volume of damages
shall be handled by environment protection department upon request of
the concerned parties. The concerned party who refuses to accept the
decision upon the disputes may sue with the people’s court. Alternatively
concerned parties may directly go to the people’s court for a suit.

Article 44 Any occurrence of abuse of power, favoritism or negligence
by the environment protection or supervision staff shall be punished by
way of disciplinary sanction or where a crime is constituted the
criminal liabilities shall be assessed.
Chapter VIII Supplementary Provisions

Article 45 The environment protection department of the State Council
shall be responsible for interpretation of the present Regulations.

Article 46 Provinces, autonomous regions and municipalities under the
direct leadership of the Central Government may formulate more
detailed provisions for implementation of the present Regulations in
light of their own circumstances.

Regulations regarding prevention and cure of noise pollution from
military activities shall be seperately formulated by the military.

Article 47 The present Regulation shall come into effect as of the
date of December 1, 1989.

INTERIM PROVISIONS GOVERNING NON-SCHEDULED FLIGHTS IN CIVIL AIR TRANSPORT

Category	CIVIL AVIATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1989-03-02	Effective Date	1989-03-02

Interim Provisions Governing Non-scheduled Flights in Civil Air Transport

(Adopted at the 31st Executive Meeting of the State Council on January 3,

1989, promulgated by Decree No. 29 of the State Council of the People’s
Republic of China on March 2, 1989 and effective as of the date of
promulgation)

Article 1 These Provisions are formulated for the purpose of safeguarding
the rights and interests of the State in aviation, ensuring safety in air
transport and promoting the development of civil air transport.

Article 2 These Provisions shall apply to the non-scheduled flights of
Chinese and foreign aircraft engaged in carrying passengers, baggage, cargoes
and mail within the territorial spheres of the People’s Republic of China and
between the People’s Republic of China and foreign countries.

Article 3 The term “non-scheduled flights” referred to in these
Provisions denotes civil air transport flight other than scheduled air
services.

Article 4 The operation of non-scheduled flights shall be subject to the
submission on an application to the Civil Aviation Administration of China
(CAAC) for its approval. The application and approval procedures shall be
formulated by the CAAC.

Article 5 The operation of non-scheduled flights shall abide by the
transport regulations formulated by the CAAC and may not affect the normal
operations of scheduled flights.

Article 6 Air crew and aircraft engaged in non-scheduled flights shall
meet the criteria or be up to the technical standards stipulated by the CAAC
and possess and bear a Crew Licence, the Aircraft Registration Certificate,
the Aircraft Airworthiness Certificate and other certificates and documents
as required to be on board in accordance with the relevant provisions.

Article 7 The operation of non-scheduled flights for commercial
transportation into or out of the territorial spheres of the People’s
Republic of China by a foreign civil air carrier shall be handled in
accordance with the relevant provisions in the air transport agreement entered
into by the Government of the People’s Republic of China and the Government
of the foreign country to which the said carrier belongs.

Article 8 No foreign civil air carrier may operate non-scheduled flights
for commercial transportation between any two points within the territorial
spheres of the People’s Republic of China.

Article 9 To remunerated non-scheduled flights for commercial
transportation operated by foreign civil air carrier, the Chinese authorities
shall have the right to levy compensation for the grant of air traffic right.

Article 10 Chinese civil air carriers shall have the priority to operate
non-scheduled flights originating in the People’s Republic of China and
destined for foreign countries, for carrying passengers, baggage, cargoes and
mail.

Article 11 The tariffs and the terms and conditions as well as the
measures for the administration for non-scheduled flights in civil air
transport shall be formulated by the CAAC in conjunction with the State
Administration of Commodity Prices.

Article 12 Unless otherwise specially approved by the CAAC, a foreign
aircraft engaged in non-remunerated non-scheduled flights may only land at
designated point within the territorial spheres of the People’s Republic of
China and may not carry out of the territorial spheres of the People’s
Republic of China any people or cargoes other than those the aircraft has
originally carried on board, nor may it leave within the territorial spheres
of the People’s Republic of China any people and cargoes it has originally
carried on board.

Article 13 Aircraft engaged in non-scheduled flights for international
transport shall complete such procedures as border inspection, Customs
clearance, quarantine and security examination and pay the fees in accordance
with the relevant provisions.

Article 14 Foreign aircraft engaged in non-scheduled flights and their
crew members, and the passengers, baggage, cargoes and mail that they carry on
board, whether entering, or leaving, or remaining within the territorial
spheres of the People’s Republic of China, shall abide by the relevant laws,
regulations and rules of the People’s Republic of China and pay various fees
in accordance with relevant provisions.

Article 15 Operators of foreign aircraft engaged in non-scheduled flights
must cover liability insurance against damage that the aircraft may incur to
the third party on the ground while flying within the territorial spheres of
the People’s Republic of China and they must also cover the statutory
liability insurance if they operate non-scheduled flights for carrying
passengers, baggage, cargoes and mail.

Article 16 The CAAC shall have the power to impose such penalties upon
those units and individuals that violate these Provisions, as warning, fine,
compulsory suspension of flights or revocation of relevant certificates. If
the violation constitutes a crime, the judicial organs shall investigate the
criminal liability of those responsible.

Article 17 The CAAC shall be responsible for the interpretation of these
Provisions.

Article 18 These Provisions shall become effective as of the date of
promulgation.

REGULATIONS CONCERNING THE ADMINISTRATION OF THE WORK FOR THE PROTECTION OF UNDERWATER CULTURAL RELICS

Category	CULTURE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1989-10-20	Effective Date	1989-10-20

Regulations of the People’s Republic of China Concerning the Administration of the Work for the Protection of Underwater Cultural Relics

(Promulgated by Decree No. 42 of the State Council of the People’s

Republic of China on October 20, 1989 and effective as of the date of
promulgation)

Article 1 These Regulations are formulated in accordance with the
pertinent provisions of the Law of the People’s Republic of China for the
Protection of Cultural Relics for the purpose of strengthening the
administration of the work for the protection of underwater cultural relics.

Article 2 The term “underwater cultural relics” referred to in these
Regulations denotes the human cultural heritage that has historic, artistic
and scientific values and that remains in the following waters:

(1) all the cultural relics of Chinese origin, or of unidentified origin,
or of foreign origin that remain in the Chinese inland waters and territorial
waters;

(2) cultural relics that are of Chinese origin or of unidentified origin
that remain in sea areas outside the Chinese territorial waters but under
Chinese jurisdiction according to the Chinese law;

(3) cultural relics of Chinese origin that remain in sea areas outside the
territorial waters of any foreign country but under the jurisdiction of a
certain country, or in the high seas.

The provisions in the preceding paragraph shall not cover objects that
have remained underwater since 1911 that have nothing to do with important
historical events, revolutionary movements or renowned personages.

Article 3 The ownership of the underwater cultural relics specified in
Items (1) and (2) of Paragraph 1 of Article 2 of these Regulations shall
reside in the state and the state shall exercise jurisdiction over them; with
respect to underwater cultural relics specified in Item (3) of Paragraph 1 of
Article 2 of these Regulations, the state shall have the right to identify
the owners of the objects.

Article 4 The State Administration for Protection of Cultural Relics
shall be the competent authority in charge of the registration of underwater
cultural relics, of the administration of the protection thereof, and of the
work of examination and approval concerning the archaeological exploration and
excavation activities with respect to underwater cultural relics.

Administrative departments for cultural relics at various levels in the
localities shall be in charge of the protection of the underwater cultural
relics in their respective administrative regions and shall, in conjunction
with the archaeological and research institutions for cultural relics, be in
charge of the work to identify and assess the value of underwater cultural
relics. With respect to underwater cultural relics in sea waters, the State
Administration for Protection of Cultural Relics may designate the
administrative departments for cultural relics in the localities to be in
charge of the administration of the work for the protection of underwater
cultural relics.

Article 5 On the basis of the value of underwater cultural relics, the
State Council and the people’s governments of the provinces, autonomous
regions and municipalities directly under the Central Government may in
accordance with the pertinent procedures specified in the provisions in
Chapter II of the Law of the People’s Republic of China for the Protection of
Cultural Relics, determine the underwater cultural relics protection units and
underwater cultural relics reserves at the national or provincial levels and
publicly announce them.

Within the limits of the underwater cultural relics protection units and
underwater cultural relics reserves, any activities that may jeopardize the
safety of the underwater cultural relics, such as fishing and demolitions,
shall be prohibited.

Article 6 Any units or individuals that have discovered by any means
underwater cultural relics specified in Items (1) and (2) of Paragraph 1 of
Article 2 of these Regulations shall report promptly to the State
Administration for Protection of Cultural Relics or to the administrative
departments for cultural relics in the localities and those that have been
fished up shall be handed over promptly to the State Administration for
Protection of Cultural Relics or to the administrative departments for
cultural relics in the localities to be properly dealt with.

Any units or individuals that have discovered by any means underwater
cultural relics specified in Item (3) of Paragraph 1 of Article 2 of these
Regulations shall report promptly to the State Administration for Protection
of Cultural Relics or to the administrative departments for cultural relics in
the localities and those that have been fished up shall be turned in promptly
to the State Administration for Protection of Cultural Relics or to the
administrative departments for cultural relics in the localities to be
identified and assessed.

Article 7 Archaeological exploration and excavation activities with
respect to underwater cultural relics shall have, as their objective, the
protection of cultural relics and scientific research.

Any units or individuals that intend to conduct in the waters under
Chinese jurisdiction archaeological exploration or excavation activities with
respect to underwater cultural relics shall apply to the State Administration
for Protection of Cultural Relics and submit the relevant data. Without
approval by the State Administration for Protection of Cultural Relics, no
units or individuals may conduct by any means unauthorized exploration or
excavation.

Foreign countries, international organizations and foreign legal persons
or natural persons that are to conduct in the waters under Chinese
jurisdiction archaeological exploration or excavation activities shall do so
in cooperation with the Chinese side and shall submit their application
therefor to the State Administration for Protection of Cultural Relics, which
shall further submit it to the State Council of the People’s Republic of China
for special approval.

Article 8 With respect to any units or individuals that have been
permitted to effect archaeological exploration or excavation activities with
respect to underwater cultural relics, if the range of their activities covers
water under the jurisdiction of the harbour superintendancy, the case shall be
reported to the harbour superintendancy for verification and approval and the
harbour superintendancy shall, upon verification and approval, delineate the
safe operation area(s) and put out a navigation notice.

Article 9 Any units or individuals that are effecting archaeological
exploration or excavation activities with respect to underwater cultural
relics shall, in addition to complying with these Regulations, abide by other
laws and regulations of China and accept the administration by the departments
concerned, shall observe rules concerning underwater archaeological
activities, diving and navigation and ensure the safety of the personnel and
the underwater cultural relics, shall prevent the water from environmental
pollution and protect the underwater biological resources and other natural
resources from damage, shall protect all the surface and underwater facilities
and may not obstruct communication and transportation, fishery production,
military drills and other normal surface and underwater operations and
activities.

Article 10 Those who have made outstanding contributions to the
protection of underwater cultural relics, if the circumstances are in
conformity with those specified in the provisions in Article 29 of the Law of
the People’s Republic of China for the Protection of Cultural Relics, shall be
commended or rewarded.

Those who, in violation of the provisions in Articles 5, 6 and 7 of these
Regulations, damage underwater cultural relics, or explore, excavate or dredge
up underwater cultural relics without authorization, or hide, share secretly,
traffic in, illicitly sell or illicitly export underwater cultural relics, if
the circumstances are found to be those specified in the provisions in
Articles 30 and 31 of the Law of the People’s Republic of China for the
Protection of Cultural Relics, shall be given administrative sanctions or have
their criminal liability investigated in accordance with the law.

With respect to those who violate the provisions in Articles 8 and 9 of
these Regulations, if the violation has resulted in serious consequences, the
administrative department for cultural relics shall, in conjunction with the
departments concerned, order the operation to be suspended and set a deadline
for correction or shall give such administrative sanctions as withdrawing the
approval granted, with an additional imposition of a fine ranging from
Renminbi 1,000 yuan to 10,000 yuan.

Article 11 The State Administration for Protection of Cultural Relics
shall be responsible for the interpretation of these Regulations.

Article 12 The rules for the implementation of these Regulations shall be
formulated by the State Administration for Protection of Cultural Relics.

Article 13 These Regulations shall go into effect as of the date of
promulgation.

MEASURES FOR THE ADMINISTRATION OF THE COLLECTION VERIFICATION AND WRITING-OFF OF EXPORT PROCEEDS IN FOREIGN EXCHANGE

Category	BANKING	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1990-12-18	Effective Date	1991-01-01

Measures for the Administration of the Collection Verification and Writing-off of Export Proceeds in Foreign Exchange

(Approved by the State Council on December 9, 1990, and promulgated

jointly by the People’s Bank of China, the State Administration of Foreign
Exchange Control, the Ministry of Foreign Economic Relations and Trade, the
General Customs Administration, and the Bank of China on December 18, 1990)

Article 1 These Measures arc formulated in order to strengthen the
administration of the collecting of export proceeds in foreign exchange in
accordance with the provision in Interim Regulations on Foreign Exchange
Control of the People’s Republic of China and with the requirements of the
State Council concerning the strengthening and perfecting of the system of
the collecting, verifying and writing-off of export proceeds in foreign
exchange.

Article 2 Definitions

(1) “Departments for foreign exchange control” refers to the State
Administration of Foreign Exchange Control and its branch offices;

(2) “Trustee banks” refers to those banks (including foreign-capital
financial institutions set up within the territory of China, and
Chinese-foreign equity joint financial institutions) or non-banking financial
institutions which are approved by the State Administration of Foreign
Exchange Control to have the right to accept the entrustment of export
units for tendering documents to and claiming reimbursements from foreign
firms abroad.

(3) “Paying banks” refers to those banks (including foreign-capital
financial institutions established within the territory of China, and
Chinese-foreign equity joint financial institutions), or those non-banking
financial institutions which are approved by the State Administration of
Foreign Exchange Control to have the right to accept the entrustment of
export units for tendering documents to and claiming reimbursements from
foreign firms abroad, and which can deliver payments for goods to exporters
in either RMB yuan or foreign exchange;

(4) “Exporters” refers to those companies which have been approved by
the Ministry of Foreign Economic Relations and Trade or by its authorized
units to have the right to handle export business, and also to those
enterprises as well as enterprises with foreign investment which have the
right to handle foreign trade.

(5) “Instrument for the collecting, verifying and writing-off of export
proceeds in foreign exchange” (also referred to as “verifying and writing-off
instrument” for short) refers to vouchers with serial numbers, printed and
issued by the State Administration of Foreign Exchange Control, filled in by
exporters, trustee banks and paying banks, accepted by the Customs as
documents for clearance of goods, and used by departments for foreign
exchange control for verifying and writing-off export proceeds in foreign
exchange; and the said instrument has counterfoil attached to it;

(6) “The deadline for the collecting” refers to the deadlines, as stipulated in Article 9 of these Measures,
for the settlement or the
collection of export proceeds in foreign exchange;

(7) “The overdue uncollected foreign exchange” refers to the non-settled
or uncollected export proceeds in foreign exchange, after the deadline for
the collection.

Article 3 These Measures shall apply to all cases concerning the
collection of foreign exchange under the heading of export trade done in all
forms.

Article 4 Exporters shall apply to the local department for foreign
exchange control for the verifying and writing-off instrument, which is
affixed with a stamp – with the inscription “COLLECTING OF FOREIGN EXCHANGE
UNDER SUPERVISION” – by the department for foreign exchange control. When
applying to the Customs for clearance of goods, an exporter must present to
the Customs the relevant verifying and writing-off instrument, and go through
the procedures for declaration at the Customs with a declaration form marked
with the serial number of the relevant verifying and writing-off instrument;
otherwise, the Customs shall not accept the application for Customs clearance.
After the completion of the procedures for Customs clearance of goods, the
Customs shall affix the stamp – with the inscription “CLEARED” – to the
verifying and writing-off instrument and to the declaration form marked with
the serial number of the said verifying and writing-off instrument.

Article 5 In case that goods cannot be exported for one reason or another
after the exporter concerned has filled in the verifying and writing-off
instrument, the said exporter shall go through the procedures for the
cancellation of the verifying and writing-off instrument at the department for
foreign exchange control.

Article 6 After going through the procedures for Customs declaration of
goods, the exporter concerned must, in good time, submit the relevant
declaration forms, the duplicates of drafts for remittance, invoices and the
counterfoils of verifying and writing-off instruments to the local department
for foreign exchange control for the verifying and writing-off of export
proceeds.

Article 7 When an exporter tenders documents to a trustee bank, the
trustee bank must, on the strength of the verifying and writing-off instrument
affixed with the “CLEARED” stamp, accept the relevant export documents.
The trustee bank shall not be permitted to accept those export documents,
to which no verifying and writing-off instrument is attached. An exporter,
which handles export business either on its own or per procurationem, must
use its own verifying and writing-off instrument when applying to the Customs
for clearance of goods. A unit undertaking declaration at the Customs per
procurationem must return, in good time, the verifying and writing-off
instrument and the relevant Customs declaration forms to the consignor as soon
as it has gone through the Customs declaration procedures for the exporter.

Article 8 An exporter, after using up the verifying and writing-off
instruments it has, may apply to the local department of foreign exchange
control for obtaining new verifying and writing-off instruments.

Article 9 All the export proceeds in foreign exchange of an exporter
must be collected or settled, before the following deadlines for collection:

(1) With respect to payments for goods through spot letter of credit or
through spot collection, it is stipulated that export proceeds in foreign
exchange must be settled or collected, within 20 days for region of Hong Kong
and Macao and other offshore areas, and 30 days for the areas beyond the
oceans, beginning from the day the relevant export documents are mailed.

(2) With respect to payments for goods through forward letter of credit
or through forward collection, it is stipulated that export proceeds in foreign exchange must be settled or collected, within 30 days
for region of
Hong Kong and Macao and other offshore areas, and 40 days for the areas beyond
the oceans, beginning from the day specified in the drafts of remittance for
payment.

(3) With respect to payments for goods through consignment sales, the
exporter must indicate the deadline for the collection on the counterfoil
of the verifying and writing-off instrument, and the deadline shall not exceed
the time limit of 360 days beginning from the day when the procedures for
Customs declaration are completed.

(4) With respect to payments for goods through the sending of documents
by the exporter itself – an operation not included in the scope of consignment
sales (This refers to the procedures of tendering documents and collecting
foreign exchange without the assistance of a bank), the exporter must settle
or collect export proceeds in foreign exchange within 50 working days beginning
from the day when the procedures for Customs declaration are completed.

Article 10 An exporter, no matter what forms of export proceeds
collection it may adopt, must, within 30 working days immediately after the
deadline for the collection, go through the procedures at the local department
of foreign exchange control for the collecting, verifying and writing-off
of export proceeds in foreign exchange, on the strength of the verifying and
writing-off instrument signed by the paying bank, the foreign exchange
settlement voucher or the collection advice, as well as other relevant
certifying documents.

Article 11 In case that export proceeds have not been collected within
the prescribed time limit, the exporter must promptly submit a written report
to the department of foreign exchange control, giving an account of the case,
and it is up to the department for foreign exchange control to handle the
case at its discretion.

Article 12 The trustee bank and the paying bank shall strengthen their
supervision over the overdue export proceeds of exporter, and shall also, in
good time, press foreign banks for payment. The trustee bank and the paying
bank must, within the first ten days of each quarter, submit a report to the
local department for foreign exchange control concerning the uncollected
overdue export proceeds.

Article 13 With respect to those who have violated the provisions of
these Measures, the department for foreign exchange control has the power to
impose on the violators such penalties as an administrative warning,
circulation of a notice of criticism, a fine, or a temporary suspension of
the use of a foreign exchange account. In case that the violators concerned
refuse to comply with the aforesaid penalty decision, the case may be handled
in accordance with Implementing Rules on Punishment of Violation of Foreign
Exchange Control adopted by the State Council on March 25, 1985 and
promulgated by the State Administration of Foreign Exchange Control on April
5, 1985.

Article 14 The Measures for the supervision and control of the collection
of export proceeds in foreign exchange formulated by the various localities
and departments prior to the promulgation of these Measures shall cease to
be effective.

Article 15 The right to interpret these Measures resides in the State
Administration of Foreign Exchange Control; and the relevant rules for
implementation shall be formulated by the State Administration of Foreign
Exchange Control in conjunction with other departments concerned.

Article 16 These Measures shall go into effect as of January 1, 1991.

INTERIM REGULATIONS CONCERNING THE ASSIGNMENT AND TRANSFER OF THE RIGHT TO THE USE OF THE STATE-OWNED LAND IN THE URBAN AREAS

Category	LAND ADMINISTRATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1990-05-19	Effective Date	1990-05-19

Interim Regulations of the People’s Republic of China Concerning the Assignment and Transfer of the Right to the Use of the State-owned Land in the Urban Areas

Chapter I  General Provisions
Chapter II  The Assignment of the Right to the Use of the Land
Chapter III  The Transfer of the Right to the Use of the Land
Chapter IV  The Lease of the Right of the Use of the Land
Chapter V  The Mortgage of the Right to the Use of the Land
Chapter VI  The Termination of the Right to the Use of the Land
Chapter VII  The Allocated Right to the Use of the Land
Chapter VIII  Supplementary Provisions

(Promulgated by Decree No. 55 of the State Council of the People’s

Republic of China on May 19, 1990 and effective as of the date of
promulgation)
Chapter I  General Provisions

Article 1 These Regulations are formulated in order to reform the system
of using the State-owned land in the urban areas, rationally develop, utilize
and manage the land, strengthen land administration and promote urban
construction and economic development.

Article 2 The State, in accordance with the principle of the ownership
being separated from the right to the use of the land, implements the system
whereby the right to the use of the State-owned land in the urban areas may be
assigned and transferred, with the exclusion of the underground resources, the
objects buried underground, and the public works.

The term “State-owned land in the urban areas” as used in the preceding
paragraph refers to the land owned by the whole people (hereinafter referred
to as “the land”) within the limits of cities, county sites, administrative
towns and industrial and mining areas.

Article 3 Any company, enterprise, other organization and individual
within or outside the People’s Republic of China may, unless otherwise
provided by law, obtain the right to the use of the land and engage in land
development, utilization and management in accordance with the provisions of
these Regulations.

Article 4 Users of the land who have obtained the right to the use of the
land in accordance with these Regulations may, within the term of land use,
transfer, lease, or mortgage the right to the use of the land or use it for
other economic activities, and their lawful rights and interests shall be
protected by the laws of the State.

Article 5 Users of the land shall, in their activities to develop,
utilize and manage the land, abide by the laws and regulations of the State
and may not jeopardize the interests of the society and the public.

Article 6 The land administrative departments under the people’s
governments at or above the county level shall conduct supervision and
inspection, according to law, over the assignment, transfer, lease, mortgage
and termination of the right to the use of the land.

Article 7 The registration of the assignment, transfer, lease, mortgage
and termination of the right to the use of the land and the registration of
the above-ground buildings and other attached objects shall be handled by the
land administration department and housing administration departments of the
government in accordance with the law and the pertinent regulations of the
State Council.

The registration documents shall be made available for public reference.
Chapter II The Assignment of the Right to the Use of the Land

Article 8 The assignment of the right to the use of the land refers to
the act of the State as the owner of the land who, within the term of a
certain number of years, assigns the right to the use of the land to land
users, who shall in turn pay fees for the assignment thereof to the State.

An assignment contract shall be signed for assigning the right to the use
of the land.

Article 9 People’s governments at the municipal and county levels shall
be in charge of assigning the right to the use of land, which shall be
effected in a planned, step-by-step way.

Article 10 The land administration departments under the people’s
governments at the municipal and county levels shall, in conjunction with the
administrative departments for urban planning and construction and the housing
administration departments, draw up a plan concerning the size and location,
the purposes, the term, and other conditions with respect to the assigning of
the right to the use of the land. The plan shall be submitted for approval in
accordance with the limits of authority for approval as stipulated by the
State Council and shall then be implemented by the land administration
departments.

Article 11 The contract for assigning the right to the use of the land
shall be signed by and between the land administration departments under the
people’s governments at the municipal and county levels (hereinafter referred
to as “the assigning party”) and the land users in accordance with the
principle of equality, voluntariness and compensation for use.

Article 12 The maximum term with respect to the assigned right to the use
of the land shall be determined respectively in the light of the purposes
listed below:

(1) 70 years for residential purposes;

(2) 50 years for industrial purposes;

(3) 50 years for the purposes of education, science, culture, public
health and physical education;

(4) 40 years for commercial, tourist and recreational purposes; and

(5) 50 years for comprehensive utilization or other purposes.

Article 13 The assignment of the right to the use of the land may be
carried out by the following means:

(1) by reaching an agreement through consultations;

(2) by invitation to bid; or

(3) by auction.

The specific procedures and steps for assigning the right to the use of
the land by the means stipulated in the proceding paragraphs shall be
formulated by the people’s government of the relevant province, automonous
region, or municipality directly under the Central Government.

Article 14 The land user shall, within 60 days of the signing of the
contract for the assignment of the right to the use of the land, pay the total
amount of the assignment fee thereof, failing which, the assigning party shall
have the right to terminate the contract and may claim compensation for breach
of contract.

Article 15 Thc assigning party shall, in compliance with the stipulations
of the contract, provide the right to the use of the land thus assigned,
failing which, the land user shall have the right to terminate the contract
and may claim compensation for breach of contract.

Article 16 After paying the total amount of the fee for the assignment
of the right to the use of the land, the land user shall, in accordance with
the relevant provisions, go through the registration thereof, obtain the
certificate for land use and accordingly the right to the use of the land.

Article 17 The land user shall, in conformity with the stipulations of
the contract for the assignment of the right to the use of laud and the
requirements of city planning, develop, utilize and manage the land.

Should any land user fail to develop and utilize the land in accordance
with the period of time specified in the contract and the conditions therein,
the land administration department under the people’s government at the
municipal or county level shall make corrections and, in light of the
seriousness of the case, give such penalties as a warning, a fine or, in an
extreme case, withdrawing the right to the use of the land without
compensation.

Article 18 If the land user needs to alter the purposes of land use as
stipulated in the contract for assigning the right to the use of land, he
shall obtain the consent of the assigning party and the approval of the land
administration department and the urban planning department and shall, in
accordance with the relevant provisions in this Chapter, sign a new contract
for assigning the right to the use of the land, readjust the amount of the
assignment fee thereof, and undertake registration anew.
Chapter III The Transfer of the Right to the Use of the Land

Article 19 The transfer of the right to the use of the land refers to the
land user’s act of re-assigning the right to the use of the land, including
the sale, exchange, and donation thereof.

If the land has not been developed and utilized in accordance with the
period of time specified in the contract and the conditions therein, the right
to the use thereof may not be transferred.

Article 20 A transfer contract shall be signed for the transfer of the
right to the use of the land.

Article 21 With the transfer of the right to the use of the land, the
rights and obligations specified in the contract for assigning the right to
the use of the land and in the registration documents shall be transferred
accordingly.

Article 22 The land user who has acquired the right to the use of the
land by means of the transfer thereof shall have a term of use which is the
remainder of the term specified in the contract for assigning the right to the
use of the land minus the number of the years in which the original land user
has used the land.

Article 23 With the transfer of the right to the use of the land, the
ownership of the above-ground buildings and other attached objects shall be
transferred accordingly.

Article 24 The owners or joint owners of the above-ground buildings and
other atttached objects shall have the right to the use of the land within the
limits of use of the said buildings and objects.

With the transfer of the ownership of the above-ground buildings and other
attached objects by the land users, the right to the use of the land within
the limits of use of the said buildings and objects shall be transferred
accordingly, with the exception of the movables.

Article 25 With respect to the transfer of the right to the use of the
land and of the ownership of the above-ground buildings and other attached
objects, registration for the transfer shall be undertaken in accordance with
the relevant provisions.

Divided transfer of the right to the use of the land and of the ownership
of the above-ground buildings and other attached objects shall be subject to
the approval of the land administration department and the housing
administration department under the people’s government at the municipal or
county level, and registration for the divided transfer shall be undertaken
in accordance with the relevant provisions.

Article 26 When the transfer of the right to the use of the land is
priced at a level obviously lower than the prevailing market price, the
people’s government at the municipal or county level shall have the
priority of the purchase thereof.

When the market price for the transfer of the right to the use of the land
rises to an unreasonable extent, the people’s government at the municipal or
county level may take necessary measures to cope with it.

Article 27 If, after the transfer of the right to the use of the land,
necessity arises for altering the purposes of land use as stipulated in the
contract for assigning the right to the use of the land, it shall be handled
in accordance with the provisions in Article 18 of these Regulations.
Chapter IV The Lease of the Right of the Use of the Land

Article 28 The lease of the right to the use of the land refers to the
act of the land user as the lessor to lease the right to the use of the land
together with the above-ground buildings and other attached objects to the
lessee for use who shall in turn pay lease rentals to the lessor.

If the land has not been developed and utilized in accordance with the
period of time specified in the contract and the conditions therein, the right
to the use thereof may not be leased.

Article 29 A lease contract shall be signed for leasing the right to the
use of the land by and between the lessor and the lessee.

The lease contract shall not run counter to the laws and regulations of
the State or the stipulations of the contract for assigning the right to the
use of the land.

Article 30 After leasing the right to the use of the land, the lessee
must continue to perform the contract for assigning the right to the use of
the land.

Article 31 With respect to the lease of the right to the use of the land
together with the above-ground buildings and other attached objects, the
lessee shall undertake registration in accordance with the relevant provisions.
Chapter V The Mortgage of the Right to the Use of the Land

Article 32 The right to the use of the land may be mortgaged.

Article 33 With the mortgage of the right to the use of the land, the
above-ground buildings and other attached objects thereon shall be mortgaged
accordingly.

With the mortgage of above-ground buildings and other attached objects,
the right to the use of the land within the limits of use of the said
buildings and objects shall be mortgaged accordingly.

Article 34 Amortgage contract shall be signed for mortgaging the right to
the use of the land by and between the mortgagor and the mortgagee.

The mortgage contract shall not run counter to the laws and regulations
of the State or the stipulations of the contract for assigning the right to
the use of the land.

Article 35 With respect to the mortgage of the right to the use of the
land together with the above-ground buildings and other attached objects,
registration for the mortgage shall be undertaken in accordance with the
relevant provisions.

Article 36 If the mortgagor fails to fulfil liabilities within the
prescribed period of time or declares dissolution or bankruptcy within the
term of the mortgage contract, the mortgatee shall have the right to dispose
of the mortgaged property in accordance with the laws and regulations of the
State and the stipulations of the mortgage contract.

With respect to the right to the use of the land and the ownership of the
above-ground buildings and other attached objects acquired as a result of the
disposal of the mortgaged property, transfer registration shall be undertaken
in accordance with the relevant provisions.

Article 37 The mortgagee shall have the priority of compensation with
respect to the receipts resulting from the disposal of the mortgaged property.

Article 38 If the mortgage is eliminated as a result of the liquidation
of liabilities or for other reasons, procedures shall be undertaken to nullify
the mortgage registration.
Chapter VI The Termination of the Right to the Use of the Land

Article 39 The right to the use of the land terminate for such reasons as
the expiration of the term of use as stipulated in the contract for assigning
the right to the use of the land, the withdrawal of the right before the
expiration, or the loss of the land.

Article 40 Upon expiration of the term of use, the right to the use of
the land and the ownership of the above-ground buildings and other attached
objects thereon shall be acquired by the State without compensation. The land
user shall surrender the certificate for land use and undertake procedures to
nullify the registration.

Article 41 Upon expiration of the term of use, the land user may apply
for its renewal. Where such a renewal is necessary, a new contract shall be
signed in accordance with the provisions in Chapter II of these Regulations
and the land user shall pay the fee for the assignment of the right to the use
of the land and undertake registration.

Article 42 The State shall not withdraw before the expiration of the term
of use the right to the use of the land which the land user acquired in
accordance with the law. Under special circumstances, the State may, based on
the requirements of social public interests, withdraw the right before the
expiration of the term of use in line with the relevant legal procedures and
shall, based on the number of years in which the land user has used the land
and actual state of affairs with respect to the development and utilization of
the land, offer corresponding compensation.
Chapter VII The Allocated Right to the Use of the Land

Article 43 The allocated right to the use of the land refers to the right
to the use of the land which the land user acquires in accordance with the
law, by various means, and without compensation.

The land user referred to in the preceding paragraph shall pay tax for the
use of the land in accordance with the provisions of the Interim Regulations
of the People’s Republic of China Concerning the Tax for the Use of the Land
in the Urban Areas.

Article 44 The allocated right to the use of the land may not be
transferred, leased, or mortgaged, with the exception of cases as specified in
Article 45 of these Regulations.

Article 45 On condition that the following requirements are satisfied,
the allocated right to the use of the land and the ownership of the
above-ground buildings and other attached objects may, subject to the approval
of the land administration departments and the housing administration
departments under the people’s governments at the municipal or county level,
be transferred, leased or mortgaged:

(1) the land users are companies, enterprises, or other economic
organizations, or individuals;

(2) a certificate for the use of state-owned land has been obtained;

(3) possessing legitimate certificates of property rights to the
above-ground buildings and other attached objects; and

(4) a contract for assigning the right to the use of land is signed in
accordance with the provisions in Chapter II of these Regulations and the land
user makes up for the payment of the assignment fee to the local municipal or
county people’s government or uses the profits resulting from the transfer,
lease or mortgage to pay the assignment fee.

The transfer, lease or mortgage of the allocated right to the use of the
land referred to in the preceding paragraphs shall be handled respectively in
accordance with the provisions in Chapters III, IV and V of these Regulations.

Article 46 Any units or individuals that transfer, lease or mortgage the
allocated right to the use of the land without authorization shall have their
illegal incomes thus secured confiscated by the land administration
departments under the people’s governments at the municipal or county level
and shall be fined in accordance with the seriousness of the case.

Article 47 If the land user who has acquired the allocated right to the
use of the land without compensation stops the use thereof as a result of
moving to another site, dissolution, disbandment, or bankruptcy or for other
reasons, the municipal or county people’s government shall withdraw the
allocated right to the use of the land without compensation and may assign it
in accordance with the relevant provisions of these Regulations.

The municipal or county people’s government may, based on the needs of
urban construction and development and the requirements of urban planning,
withdraw the allocated right to the use of the land without compensation and
may assign it in accordance with the relevant provisions of these Regulations.

When the allocated right to the use of the land is withdrawn without
compensation,the municipal or county people’s government shall, in the light
of the actual state of affairs, give due compensation for the above-ground
buildings and other attached objects thereon.
Chapter VIII Supplementary Provisions

Article 48 The right to the use of the land may be inherited if it is
acquired by individuals in accordance with the provisions of these Regulations.

Article 49 The land user shall pay tax in accordance with the provisions
of the tax laws and regulations of the State.

Article 50 Fees collected by assigning the right to the use of the land
in accordance with these Regulations shall be included in the fiscal budget
and managed as a special fund, which shall be used mainly for urban
constrction and land development. The specific measures for the use and
management of the fund shall be separately prescribed by the Ministry of
Finance.

Article 51 The people’s governments of various provinces, autonomous
regions and municipalities directly under the Central Government shall, in
accordance with the provisions of these Regulations and with the actual state
of affairs in their respective localities, select as their pilot testing
grounds some of the cities or towns where conditions are relatively ripe.

Article 52 With respect to foreign investors engaging in developing and
managing tracts of land, the administration of the right to the use of the
land shall be effected in accordance with the relevant provisions of the State
Council.

Article 53 The State Administration for Land Uses shall be responsible
for the interpretation of these Regulations; the measures for the
implementation thereof shall be formulated by the people’s government of the
provinces, autonomous regions and municipalities directly under the Central
Government.

Article 54 These Regulations shall go into effect as of the date of
promulgation.

RULES FOR THE IMPLEMENTATION OF THE FOREIGN-CAPITAL ENTERPRISES

Category	FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1990-12-12	Effective Date	1990-12-12

Rules for the Implementation of the Law of the People’s Republic of China on Foreign-capital Enterprises

Contents
Chapter I  General Provisions
Chapter II  Procedures for Establishment
Chapter III  Form of Organization and Registered Capital
Chapter IV  Methods of Contributing Investment and the Time Limit
Chapter V  Use of Site and the Site Use Fees
Chapter VI  Purchasing and Marketing
Chapter VII Taxation
Chapter VIII  Control of Foreign Exchange
Chapter IX  Financial Affairs and Accounting
Chapter X  Workers and Staff Members
Chapter XI  Trade Union
Chapter XII  Term of Operations, Termination and Liquidation
Chapter XIII  Supplementary Provisions

(Approved by the State Council on October 28, 1990, and promulgated by

Decree No. 1 of the Ministry of Foreign Economic Relations and Trade on
December 12, 1990)
Contents

Chapter I General Provisions

Chapter II Procedures for Establishment

Chapter III Form of Organization and Registered Capital

Chapter IV Methods of Contributing Investments and the Time Limit

Chapter V Use of Site and the Site Use Fees

Chapter VI Purchasing and Marketing

Chapter VII Taxation

Chapter VIII Control of Foreign Exchange

Chapter IX Financial Affairs and Accounting

Chapter X Workers and Staff Members

Chapter XI Trade Union

Chapter XII Term of Operations, Termination and Liquidation

Chapter XIII Supplementary Provisions
Chapter I General Provisions

Article 1 These Rules are formulated in accordance with the provisions in
Article 23 of The Law of the People’s Republic of China on Foreign-Capital
Enterprises.

Article 2 Foreign-capital enterprises shall be under the jurisdiction of
and protection by China’s laws.

Foreign-capital enterprises, while engaged in business operational
activities within the territory of China, must abide by Chinese laws and
regulations and must not jeopardize the social and public interests of China.

Article 3 A foreign-capital enterprise to be established in China must be
conducive to the development of China’s national economy, be capable of gaining
remarkable economic results and shall meet at least one of the following
conditions:

(1) the enterprise is to adopt advanced technology and equipment, engage in
the development of new products, conserve energy and raw materials, and
realize the upgrading of products and the replacement of old products with new
ones which can be used for placing similar Imported goods;

(2) its annual output value of export products accounts for more than 50%
of the annual output value of all products, thereby realizing the balance
between revenues and expenditures in foreign exchange or with a surplus.

Article 4 No foreign-capital enterprise shall be established in the
following trades:

(1) the press, publication, broadcasting, television, and movies;

(2) domestic commerce, foreign trade, and insurance;

(3) post and telecommunications;

(4) other trades in which the establishment of foreign-capital enterprises
is forbidden, as prescribed by the Chinese government.

Article 5 The establishment of foreign-capital enterprises shall be
restricted in the following trades:

(1) public utilities;

(2) communications and transportation;

(3) real estate;

(4) trust investment;

(5) leasing.

The application for the establishment of a foreign-capital enterprise in
the trades mentioned in the preceding paragraph shall be submitted to the
Ministry of Foreign Economic Relations and Trade of the People’s Republic of
China (hereinafter referred to the Ministry of Foreign Economic Relations and
Trade) for approval, except as otherwise provided by Chinese laws and
regulations.

Article 6 Application for the establishment of a foreign-capital
enterprise shall not be approved if the proposed enterprise would involve one
of the following circumstances:

(1) injury to China’s sovereignty or to social and public interests;

(2) impairment of China’s national security;

(3) violation of Chinese laws and regulations;

(4) incompatibility with the requirements of China’s national economic
development; or

(5) possible creation of environmental pollution.

Article 7 A foreign-capital enterprise shall make its own managerial
decisions within the approved scope of business operations and shall not be
subject to intervention.
Chapter II Procedures for Establishment

Article 8 The application for the establishment of a foreign-capital
enterprise shall be submitted to the Ministry of Foreign Economic Relations and
Trade, and after examination and approval, a certificate of approval shall be
issued by the Ministry.

With respect to the application for the establishment of a foreign-capital
enterprise that comes under one of the following circumstances, the State
Council shall authorize the people’s government of the relevant province,
autonomous region, municipality directly under the Central Government,
municipality separately listed on the state plan, or the special economic zone,
to issue the certificate of approval after examining and approving the
application:

(1) the total amount of investment is within the limits of powers for the
examination and approval of investments stipulated by the State Council;

(2) the proposed enterprises does not need the raw and processed materials
to be allocated by the State, or does not influence unfavourably the national
comprehensive balance of energy resources, communications and transportation,
as well as export quotas for foreign trade.

Where the people’s government of the province, autonomous region,
municipality directly under the Central Government, municipality separately
listed on the state plan, or the special economic zone has approved the
establishment of a foreign-capital enterprise within its limits of powers
granted by the State Council, it shall, within 15 days after the approval,
submit a report to the Ministry of Foreign Economic Relations and Trade for the
record (hereinafter the Ministry of Foreign Economic Relations and Trade, and
the people’s government of the province, autonomous region, municipality,
directly under the Central Government, municipality separately listed on the
state plan, and the special economic zone shall be called generally as the
examining and approving organ).

Article 9 With respect to a foreign-capital enterprise, the establishment
of which has been applied for, if its products are subject to export licence,
export quota, or import licenee, or are under restrictions by the State, prior
consent of the department of foreign economic relations and trade shall be
obtained in accordance with the limits of powers for administration.

Article 10 A foreign investor shall, prior to the filing of an application
for the establishment of a foreign-capital enterprise, submit a report to the
local people’s government at or above the county level at the place where the
proposed enterprise is to be established. The report shall include: the aim of
the establishment of the proposed enterprise; the scope and scale of business
operation; the products to be produced; the technology and equipment to be
adopted and used; the proportion of the sales of products between the domestic
market and the foreign market; the area of land to be used and the related
requirements; the conditions and quantities of water, electricity, coal, coal
gas and other forms of energy resources required; and the requirement of public
facilities.

The local people’s government at or above the county level shall within 30
days after receiving the report submitted by the foreign investor, give a reply
in writing to the said foreign investor.

Article 11 In case that a foreign investor wishes to establish a
foreign-capital enterprise, an application shall be submitted to the examining
and approving organ through the local people’s government at or above the
county level at the place where the enterprise is to be established, together
with the following documents.

(1) the written application for the establishment of a foreign-capital
enterprise;

(2) a feasibility study report;

(3) the articles of association of the foreign-capital enterprise;

(4) the name-list of the legal representatives (or the candidates for
members of the board of directors) of the foreign-capital enterprise;

(5) the legal certifying documents and the credit position certifying
documents of the foreign investor;

(6) the written reply given by the people’s government at or above the
county level at the place, where the enterprise is to be established;

(7) an inventory of goods and materials needed to be imported;

(8) other documents that are required to be submitted.

The documents mentioned in Items(1) and (3) in the preceding paragraph must
be written in the Chinese language; while the documents mentioned in Items
(2), (4) and (5) in the preceding paragraph may be written in a foreign
language, but a corresponding Chinese translation shall be attached.

In the event that two or more foreign investors jointly file an application
for the establishment of a foreign-capital enterprise, they shall submit a
duplicate of the contract concluded and signed between them to the examining
and approving organ for the record.

Article 12 The examining and approving organ shall, within 90 days after
receiving all the required documents with respect to an application for the
establishment of foreign-capital enterprise, make a decision whether to approve
or disapprove the application. In the event that the examining and approving
organ has found that the documents mentioned above are not complete, or that
some of them are inappropriate, it may call on the applicant to make up the
incomplete documents, or to make necessary revisions, within a prescribed time
limit.

Artricle 13 After the approval of the application for the establishment of a foreign-capital
enterprise by the examining and approving organ, the foreign
investor shall, within 30 days after receiving the certificate of approval,
file an application with the relevant administrative department for industry
and commerce for registration, and obtain a business licence. The date on which
the business licence is issued shall be the date of the establishment of the
said enterprise.

In the event that the foreign investor fails to file an application with
the administrative department for industry and commerce for registration on the
expiration of the 30 days after receiving the certificate of approval, the
certificate of approval for the establishment of the proposed enterprise shall
become invalid automatically,

A foreign-capital enterprise shall, within 30 days after its establishment,
go through the procedures for taxation registration with the tax authorities.

Article 14 Foreign investors may appoint a Chinese service agency for
enterprises with foreign investment or other economic organizations to handle,
on their behalf, the affairs stipulated in Article 9, the first paragraph of
Article 10 and Article 11 of these Rules, but a contract of entrustment shall
be concluded and signed between them.

Article 15 The written application for the establishment of a
foreign-capital enterprise shall include the following contents:

(1) the name or designation, the residence and the place of registration of the foreign investor, and the
name, nationality, and position of the legal
representative;

(2) the name and residence of the foreign-capital enterprise;

(3) the scope of business operations, the varieties of products, and the
scale of production;

(4) the total amount of investment, the registered capital, the source of
funds, and the method of investment contribution and the operation period;

(5) the organizational form and organs, and the legal representative of the
foreign-capital enterprise;

(6) the primary production equipment to be used and the degrees of
depreciation, production technology, technological level and their sources;

(7) the sales orientation and areas, the sales channels and methods, and
the sales proportion between China’s market and foreign markets;

(8) the arrangements for the revenues and expenditures in foreign exchange;

(9) the arrangements for the establishment of relevant organs and the
authorized size of working personnel, the engagement and use of workers and
staff members, their training, salaries and wages, material benefits,
insurance, and labour protection;

(10) the degrees of probable environmental pollution and the measures for
tackling pollution;

(11) the selection of sites and the area of land to be used;

(12) the funds, energy resources, raw and processed materials needed in
capital construction and in production and business operations and the
solutions thereof;

(13) the progress plan for the construction of the project; and

(14) the period of business operations of the foreign-capital enterprise to
be established.

Article 16 The articles of association of a foreign-capital enterprise
shall include the following contents:

(1) the name and the residence;

(2) the aim and the scope of business operations;

(3) the total amount of investments, the registered capital, and the time
limit for contributing investment;

(4) the form of organization;

(5) the internal organizational structures and their functions and powers
as well as their rules of procedures; the functions, duties and limits of
powers of the legal representative as well as of the general manager, chief
engineer, chief accountant and other staff members;

(6) the principles and system of financial affairs, accounting and
auditing;

(7) labour administration;

(8) the term of business operations, termination, and liquidation; and

(9) the procedures for the amendment of the articles of association.

Article 17 The articles of association of a foreign-capital enterprise
shall become effective after the approval by the examining and approving organ.
The same procedure shall apply when amendments are made.

Article 18 The division or merge of foreign-capital enterprises, and the
significant change in capital resulting from other causes, shall be subject to
the approval by the examining and approving organ; in addition, the said
enterprises shall engage a Chinese registered acountant to carry out
verification, and to submit a report on the verification of capital; after the
approval by the examining and approving organ, the enterprises concerned shall
go through the procedures for the change of the registration with the relevant
administative department for industry and commerce.
Chapter III Form of Organization and Registered Capital

Article 19 The organizational form of a foreign-capital enterprise shall
be a limited liability company.

With approval, the enterprise may also take any other liability form.

With respect to a foreign-capital enterprise which is a limited liability
company, the liability of the foreign investor to the enterprise shall be
limited to the amount of investment subscribed and contributed to the
enterprise by the investor.

With respect to a foreign-capital enterprise which takes any other
liability form, the liability of the foreign investor to the enterprise shall
be dealt with in accordance with the provisions of Chinese laws and regulations.

Article 20 The total amount of investment of a foreign-capital enterprise
refers to the total amount of funds needed for the establishment of the
enterprises, i.e. the sum total of the funds invested in capital construction
in accordance with the scope of production and the circulating funds for
production.

Article 21 The registered capital of a foreign-capital enterprise refers
to the total amount of capital registered with the administrative department
for industry and commerce for the purpose of establishing the foreign-capital
enterprise, i.e. the total amount of investment the foreign investor undertakes
to contribute.

The registered capital of a foreign-capital enterprise shall fit in with
the enterprise’s scope of business operations; and the proportion between the
registereed capital and the total amount of investment shall conform with the
provisions of the relevant Chinese laws and regulations.

Article 22 A foreign-capital enterprise shall not reduce the registered
capital during the term of business operations.

Article 23 The increase or assignment of the registered capital of a
foreign-capital enterprise shall be subject to the approval by the examining
and approving organ; in addition, the said enterprise shall go through the
procedures for the change of the registration with the administrative
department for industry and commerce.

Article 24 In case that a foreign-capital enterprise intends to mortgage
or assign its assets or rights and interests to a foreign unit, the case shall
be submitted to the examining and approving organ for approval, and then to the
administrative department for industry and commerce for the record.

Article 25 The legal representative of a foreign-capital enterprise shall
be the person-in-charge who, in accordance with the stipulations in the
enterprise’s articles of association, executes his/her functions and powers on
behalf of the enterprise.

In the event that the legal representative is unable to execute his/her
functions and powers, he/she shall entrust in writing an agent with the
execution of his/her functions and powers.
Chapter IV Methods of Contributing Investment and the Time Limit

Article 26 Foreign investors may use convertible foreign currencies for
the contribution of investment, or use as their investment machinery and
equipment, industrial property rights, and proprietary technology that are
assigned a fixed price.

Foreign investors may, after approval by the examining and approving organ,
use, as their investment, their profits in Renminbi (RMB) earned from other
enterprises with foreign investment established within the territory of China.

Article 27 In case that foreign investors intend to use machinery and
equipment, being assigned a fixed price, as their investment, the said
machinery and equipment must meet the following requirements:

(1) those that are needed for the production of the foreign-capital
enterprise;

(2) those that cannot be produced in China, or that can be produced in
China but cannot be guaranted to meet the needs in terms of technical
performance or time of supply.

The price fixed for the aforesaid machinery and equipment shall not be
higher than the normal price for similar machinery and equipment sold on the
international market at the time.

With respect to the machinery and equipment, being assigned a fixed price
and used as contributing investment, an inventory listing in detail the
assigning of fixed prices as contributing investment, including the names,
categories, quantities, and the assignment of prices, shall be made and
submitted to the examining and approval organ as an appendix to the application
for the establishment of the foreign-capital enterprise.

Article 28 In case that foreign investors intend to use industrial
property rights and proprietary technology, being assigned a fixed price, as
their investment, the said industrial property rights and proprietary
technology must meet the following requirements:

(1) owned by the foreign investors themselves;

(2) capable of producing new products that are urgently needed by China, or
that are suitable for export and marketable abroad.

The assigning of a fixed price for the aforesaid industrial property rights
and proprietary technology shall be in conformity with the general pricing
principles of the international market, and the amount of pricing thereof shall
not exceed 20% of the registered capital of the foreign-capital enterprise.

With respect to those industrial property rights and proprietary
technology, being assigned a fixed price for contributing investment, a
detailed inventory of relevant data, including a duplcate of the proprietary
rights certificate, the effective condition, technological performance, the
practical value, the basis and standard for the calculation of pricing, shall
be prepared and submitted to the examining and approving organ as an appendix
to the application for the establishment of the foreign-capital enterprise.

Article 29 When the machinery and equipment, being assigned a fixed price
and used as contributing investment, have arrived at China’s port, the
foreign-capital enterprise shall apply to China’s commodity inspection
authorities for inspection, which shall then issue an inspection report.

In the event that the variety, quality and quantity of the machinery and
equipment, being assigned a fixed price and used as contributing investment,
are not in conformity with the variety, quality and quantity of the machinery
and equipment, being assigned a fixed price as contributing investment and
listed in the inventory submitted to the examining and approving organ, the
examining and approving organ has the power to require the foreign investors to
make corrections within a prescribed time limit.

Article 30 After the industrial property rights and proprietary technology
priced as contributing investment have been put to use, the examining and
approving organ has the power to carry out inspection. In the event that the
said industrial property rights and proprietary technology are not in
conformity with the data originally provided by the foreign investors, the
examining and approving organ has the power to require the foreign investors to
make corrections within a prescribed time limit.

Article 31 The time limit for a foreign investor to make the investment
contributions shall be clearly stipulated in the written application for the
establishment of the foreign-capital enterprise and also in the articles of
association of the enterprise. A foreign investor may make the investment
contribution by instalments, but the last instalment of the contribution shall
be made within the period of three years beginning from the day when the
business licenee is issued. The first instalment of investment contribution
shall not be less than 15% of the total amount of investment contribution that
the foreign investor undertakes to make, and shall be made in full within a
period of 90 days beginning from the day when the business licenee is issued.

In the event that a foreign investor fails to make in full the first
instalment of the investment contribution within the time limit stipulated in
the preceding paragraph, the certificate of approval for the establishment of
the proposed foreign-capital enterprise shall become invalid automatically. The
foreign-capital enterprise in question shall go through the procedure for
registration cancellation with the relevant administrative department for
industry and commerce, and hand in its business licence for cancellation.

In the event of the failure to go through the procedure for registration
cancellation and to hand in the business licence for cancellation, the
administrative department for industry and commerce shall revoke the business
licence and announce the case publicly.

Article 32 After making the first instalment of investment contribution,
the foreign investor shall make the remaining instalments of contribution
strictly as scheduled. In the event that a foreign investor is in arrears with
the contribution for 30 days without any justification, the case shall be
handled in accordance with the provisions of paragraph 2 of Article 31 of these
Rules.

In the event that a foreign investor has proper reasons for requesting the
postponement of investment contribution, prior consent of the examining and
approving organ shall be obtained, and the case shall also be reported to the
administrative department for industry and commerce for the record.

Article 33 After the foreign investor’s each instalment of investment
contribution, the foreign-capital enterprise shall engage a Chinese registered
accountant to carry out verification, and to prepare a report on the
verification of capital, which shall be submitted to the examining and
approving organ and the administrative department for industry and commerce for
the record.
Chapter V Use of Site and the Site Use Fees

Article 34 With espect to the site to be used by a foreign-capital
enterprise, the local people’s government at or above the county level in the
place where the enterprise is to be located, shall make arrangements after
examination and verification in the light of the local conditions.

Article 35 A foreign-capital enterprise shall, within 30 days from the day
the business licence is issued, go through the procedure for the use of land
and obtain the land certificate by presenting the certificate of approval and
the business licence to the land administration department under the local
people’s government at or above the county level in the place where the
enterprise is to be located.

Article 36 The land certificate shall be the legal instrument for the
foreign-capital enterprise to use land. The foreign-capital enterprise within
its term of operations, may not assign its land-use right without permission.

Article 37 A foreign-capital enterprise shall, when obtaining the land
certificate, pay its land use fee to the land administrative department in the
place where the enterprise is located.

Article 38 In case that a foreign-capital enterprise uses land that has
already been developed, it shall pay the land development fee.

The land development fee, as mentioned in the preceding paragraph, includes
the expense for the requisition of land, the expense for the pulling down of
houses and the settlement allowance, and the expense for the

PROTECTION OF DISABLED PERSONS LAW

Law of the People’s Republic of China on the Protection of Disabled Persons



	(Adopted at the 17th Meeting of the Standing Committee of the Seventh National People’s Congress on December 28, 1990 and promulgated by Order No.36 of the President of the People’s Republic of China on December 28, 1990) Contents Chapter I General Provisions Chapter II Rehabilitation Chapter III Education Chapter IV Employment Chapter V Cultural Life Chapter VI Welfare Chapter VII Environment Chapter VIII Legal Liabilities Chapter IX Supplementary Provisions Chapter I General Provisions Article 1 This Law is formulated in accordance with the Constitution for the purposes of protecting the lawful rights and interests of, and developing undertakings for, disabled persons, and ensuring their equal and full participation in social life and their share of the material and cultural wealth of the society. Article 2 A disabled person refers to one who suffers from abnormalities or loss of a certain organ or function, psychologically or physiologically, or in anatomical structure and who has lost wholly or in part the ability to engage in activities in a normal way. “Disabled persons” refers to those with visual, hearing, speech or physical disabilities, mental retardation, mental disorder, multiple disabilities and/or other disabilities. The criteria for classification of disabilities shall be established by the State Council. Article 3 Disabled persons shall enjoy equal rights with other citizens in political, economic. cultural and social fields, in family life and other aspects. The citizen’s rights and personal dignity of disabled persons shall be protected by law. Discrimination against, insult of and infringement upon disabled persons shall be prohibited. Article 4 The State shall provide disabled persons with special assistance by adopting supplementary methods and supportive measures with a view to alleviating or eliminating the effects of their disabilities and external barriers and ensuring the realization of their rights. Article 5 The State and society shall provide special assurance, treatment and pension to wounded or disabled servicemen and persons disabled while on duty or for protecting the interests of the State and people. Article 6 The people’s governments at all levels shall incorporate undertakings for disabled persons into plans for economic and social development through budget arrangement, overall planning and coordination and other measures under strengthened leadership with a view to ensuring that undertakings for disabled persons develop in coordination with economic and social progress. The State Council and the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government shall adopt organizational measures to coordinate departments concerned in the work for the disabled. The establishment of specific institutions shall be decided upon by the State Council and/or the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government. Departments concerned under the people’s governments at various levels shall keep in close contact with disabled persons, solicit their opinions and fulfil their respective duties in the work for disabled persons. Article 7 The whole society should display socialist humanitarianism, understand, respect, care for and assist people with disabilities and support the work for disabled persons. State organs, public organizations, enterprises, institutions and urban and rural organizations at grassroots level shall do their work for the disabled well, as is within their responsibility. State functionaries and other personnel engaged in the work for the disabled should work hard to fulfil their lofty duties in serving the disabled. Article 8 The China Disabled Persons’ Federation (CDPF) and its local branches shall represent the common interests of disabled persons, protect their lawful rights and interests, unite, educate and provide service to disabled persons. Disabled persons’ federations shall undertake tasks entrusted by the government, conduct work for disabled persons and mobilize social forces in developing undertakings for disabled persons. Article 9 Legal fosterers of disabled persons must fulfil their duties toward their charge. Guardians of disabled persons must fulfil their duties of guardianship and protect the lawful rights and interests of their charge. Family members and guardians of disabled persons should encourage and assist disabled persons to enhance their capability of self-reliance. Maltreatment and abandoning of disabled persons shall be prohibited. Article 10 Disabled persons must abide by laws, carry out their due obligations, observe public order and respect social morality. Disabled persons should display an optimistic and enterprising spirit, have a sense of self-respect, self-confidence, self-exertion and self-reliance, and make contributions to the socialist construction. Article 11 The State shall undertake, in a planned way, the work of disability prevention, strengthen leadership in this regard, publicize and popularize knowledge of eugenics and disability prevention, formulate laws and regulations dealing with disability-causing factors such as heredity, diseases, medical poisoning, accidents, calamity and environmental pollution and adopt measures to prevent the occurrence and aggravation of disabilities by organizing and mobilizing social forces. Article 12 Governments and departments concerned shall award those disabled persons who make notable achievements in socialist construction and those units or individuals who make remarkable contributions to safeguarding the lawful rights and interests of, promoting undertakings for, and providing service to, disabled persons. Chapter II Rehabilitation Article 13 The State and society shall adopt measures of rehabilitation to help disabled persons regain normal functions or compensate for lost functions, thus enhancing their ability to participate in social life. Article 14 The work of rehabilitation shall, proceeding from the actual conditions, combine modern rehabilitation techniques with traditional Chinese techniques, with rehabilitation institutions at the core and the community as the base and relying on the families of disabled persons for support. Emphasis shall be laid on rehabilitation projects which are practical, easy to realize and widely beneficial. Efforts shall also be made in the research, exploration and application of new rehabilitation technology so as to provide more effective rehabilitation service to disabled persons. Article 15 The governments and departments concerned should establish in a planned way medical rehabilitation departments (sections) in hospitals, set up appropriate special institutions of rehabilitation and carry out clinical practice and training, scientific research, personnel training and work of technical guidance in the field of rehabilitation. The people’s governments and departments concerned at various levels shall organize and guide urban and rural community service networks, medical prevention and health care networks, organizations and families of disabled persons and other social forces in carrying out community-based rehabilitation work. Departments of education, welfare enterprises and institutions and other service organizations for disabled persons shall create conditions for rehabilitation training activities. Disabled persons, with guidance from professional personnel and help from relevant staff, volunteers and family members, should actively take part in training programmes for functional recovery, and acquiring self-care ability and work skills. The State Council and departments concerned shall determine priority rehabilitation projects in different phases, formulate plans thereof and organize forces for their implementation. Article 16 Medical colleges and schools and other relevant educational institutes shall, in a planned way, offer courses and specialties on rehabilitation so as to train various kinds of special personnel for rehabilitation work. The State and society shall provide various forms of technical training for personnel engaged in rehabilitation work, popularize knowledge of rehabilitation among disabled persons, their family members, relevant staff and volunteers and teach them methods of rehabilitation. Article 17 Governmental departments concerned shall organize and support the research, production, supply and maintenance of rehabilitation appliances, equipment for self-service, special articles and other auxiliary facilities for disabled persons. Chapter III Education Article 18 The State shall guarantee the right of disabled persons to education. People’s governments at various levels shall make education of disabled persons a component of the State educational programme, strengthen leadership in this respect and include it in their overall planning. The State, society, schools and families shall provide compulsory education to disabled children and juveniles. The State shall exempt disabled students who accept compulsory education from tuition and reduce fees or exempt them from fees in the light of actual conditions. The State shall offer grants to aid students who are poor and disabled. Article 19 The education of disabled persons shall be carried out according to their physical and psychological features and needs and shall meet the following requirements: (1) Strengthen physical and psychological compensation and vocational and technical training while providing ideological and cultural education; (2) Adopt normal or special methods of education according to different categories of disability and varied abilities of response; and (3) The curricula, teaching materials and methods for special education and the age requirement for admission and schooling may be determined with appropriate flexibility. Article 20 The principle of combining popularization with upgrading of quality shall be implemented in education of disabled persons, with emphasis on the former. Priority shall be given to compulsory education and vocational and technical education while efforts shall be made to carry out preschool education and gradually develop education at and above the senior middle school level. Article 21 The State shall set up educational institutions for disabled persons and encourage social forces to run schools and donate funds for schools. Article 22 Ordinary educational institutions shall provide education to disabled persons who are able to respond to ordinary education. Ordinary primary schools and junior middle schools must admit disabled children or juveniles who are able to adapt themselves to life and study there; ordinary senior middle schools, secondary polytechnic schools, technical schools and institutions of higher learning must admit disabled students who meet the state admission requirements and shall not deny their admission for their disabilities; in case of such denial, the disabled student, his/her family members or guardian may appeal to the relevant authorities for disposition. The relevant authorities shall instruct the school concerned to accept the student. Ordinary institutions of preschool education shall admit disabled children who are able to adapt themselves to the life there. Article 23 Preschool education institutions for the disabled, classes for disabled children attached to ordinary preschool education institutions, preschool classes of special education schools, welfare institutions for disabled children and families of disabled children shall be responsible for preschool education of disabled children. Special schools at or below junior middle school level and special classes attached to ordinary schools shall be responsible for the implementation of compulsory education for disabled children and juveniles who are not able to respond to ordinary education. Special schools and special classes attached to ordinary schools at or above senior middle school level as well as institutions of vocational and technical education for disabled persons shall be responsible for providing cultural education at or above senior middle school level and vocational and technical education for eligible disabled persons. Article 24 Governmental departments concerned, units where disable persons work and society shall carry out anti-illiteracy education, vocational training and other forms of adult education for disabled persons and encourage them to tap their talents through self-studies. Article 25 The State shall systematically set up various forms of normal schools and specialties for special education at different levels and special education classes (departments) attached to ordinary normal schools to educate and train teaching staff for special education. Ordinary normal schools shall offer courses or lectures on special education so that teachers in ordinary education may have some necessary knowledge of special education. Teachers of special education and sign language interpreters shall enjoy allowances for special education. Article 26 Governmental departments concerned shall organize and support the research and application of braille and sign language, the compilation, writing and publication of special education teaching materials and the research, production and supply of teaching apparatus and other auxiliary facilities for special education. Chapter IV Employment Article 27 The State shall guarantee disabled persons’ right to work. People’s governments at various levels shall formulate overall plans for employment of disabled persons and create conditions for their employment. Article 28 Employment of disabled persons shall follow the principle of combining collective arrangement with individual arrangement. Preferential policies and measures of support and protection shall be adopted with a view to gradually popularizing, stabilizing and rationalizing employment of disabled persons through multiple channels, at various levels and in a variety of forms. Article 29 The State and society shall set up welfare enterprises for disabled persons, workers sanatoria, massage therapy centres and other enterprises and institutions of welfare nature as a way of providing concentrated employment for disabled persons. Article 30 The State shall promote the employment of disabled persons by various units. People’s governments at all levels and departments concerned shall organize and provide guidance in this regard. State organs, public organizations, enterprises, institutions and urban and rural collective economic organizations shall employ a certain proportion of disabled persons in appropriate types of jobs and posts. The specific ratio may be determined by the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government in line with their actual conditions. Article 31 Governmental departments concerned shall encourage and assist disabled persons to find employment through voluntary organization or to open individual business. Article 32 Local people’s governments at various levels and rural grassroots organizations shall organize and support disabled persons in rural areas to engage in crop planting, animal breeding, handicraft industry and other forms of production. Article 33 The State shall implement the policy of tax reduction or exemption in relation to welfare enterprises and institutions for disabled persons and self-employed disabled workers in urban and rural areas, and provide assistance in production, management, technology, funds, materials supply, working sites and other fields. Local people’s governments and departments concerned shall determine the types of products suitable for production by disabled persons, give priority to the production of such products by welfare enterprises for disabled persons and gradually determine which products are to be produced exclusively by such enterprises. Governmental departments concerned shall, in determining the quota for employing and engaging workers and staff members, allot a certain proportion of the quota to disabled persons. Departments concerned shall, in verifying and issuing business licenses, give priority to disabled persons who apply for licenses as self-employed workers or businessmen and give them preferential treatment in allotting work sites and loans and in other ways. Departments concerned shall provide assistance to disabled persons engaged in various kinds of labour in rural areas by way of production services, technical guidance, supply of materials for agricultural use, collection and purchase of farm and sideline products and loans. Article 34 The State shall protect the property ownership and the managerial decision-making power of welfare enterprises and institutions for disabled persons, whose lawful rights and interests shall not be violated. No discrimination shall be practised against disabled persons in employment, engagement, status regularization, promotion, determining technical or professional post_titles, payment for labour, welfare, labour insurance or in other aspects. No enterprises or institutions shall deny disabled graduates assigned by the State from institutions of higher learning, polytechnic schools or technical schools solely on the ground of their disabilities; in case of such denial, the disabled graduates may appeal to departments concerned for disposition and the relevant departments shall instruct the enterprises or institutions concerned to accept the said graduate students. Enterprises and institutions where disabled persons work shall provide the disabled workers with appropriate working conditions and labour protection. Article 35 Enterprises and institutions where disabled persons work shall provide in-service technical training to disabled employees with a view to upgrading their skills and techniques. Chapter V Cultural Life Article 36 The State and society shall encourage and assist disabled persons to participate in various cultural, sports and recreative activities and strive to meet the needs of the spiritual and cultural life of disabled persons. Article 37 Cultural, sports and recreative activities for disabled persons should be directed at grassroots levels, integrated in public cultural life and geared to the different characteristics and needs of different categories of disabled persons with a view to bringing about extensive participation. Article 38 The State and society shall adopt the following measures to enrich the spiritual and cultural life of disabled persons: (1) Reflect the life of disabled persons through radio, film, television, press and periodicals, books and other media in the interests of disabled persons. (2) Organize and support the compilation, writing and publication of braille books, audio materials for the blind and reading materials for the deaf and mentally retarded; offer TV programmes in sign language and put in subpost_titles or narrations in some movies and TV programmes. (3) Organize and support disabled persons for mass cultural, sports and recreative activities, and in staging special art performances, holding special sports meets and participating in major international sports games and exchanges; and (4) Provide facilities and accommodations for disabled persons at places of cultural, sports, recreative and other public activities and set up in a planned way activity centres for disabled persons. Article 39 The State and society shall encourage and assist disabled persons to engage in creative work beneficial to the people, such as in literature, art, education, science and technology. Chapter VI Welfare Article 40 The State and society shall adopt supportive, relief and other welfare measures to secure and improve the life of disabled persons. Article 41 The State and society shall provide relief and subsidies through various channels to disabled persons with real financial difficulties. The State and society shall foster and provide relief, in accordance with relevant regulations, to disabled persons without work capabilities, or legal fosterer, or financial resource. Article 42 Units where disabled persons work, urban and rural grassroots organizations and families of disabled persons should encourage and assist disabled persons to join social insurance. Article 43 People’s governments at various levels and the society shall establish welfare centres and other placement and foster institutions, settle and foster disabled persons in accordance with relevant regulations and gradually improve their living standards. Article 44 Agencies of public services shall provide preferential and auxiliary services to disabled persons. In taking public transport vehicles, disabled persons shall be given convenience and special consideration; they shall be permitted to carry on board their indispensable and auxiliary facilities free of charge. Blind persons may take local buses, trolleybuses, subways and ferries free of charge. Mailing and delivery of braille books shall be free of charge. People’s governments at county and township levels shall, in line with the actual conditions, reduce or exempt disabled persons in rural areas from obligatory labour, public utilities fees and other social obligations. People’s governments at various levels shall step by step increase their care and support for the disabled. Chapter VII Environment Article 45 The State and society shall step by step create a sound environment to improve the conditions for disabled persons to participate in social life. Article 46 The State and society shall gradually regularize the design of urban roads and buildings to the convenience of disabled persons and adopt barrier-free measures. Article 47 The State and society shall promote mutual understanding and exchanges between disabled persons and their fellow-citizens, publicize undertakings for disabled persons and deeds of assisting disabled persons, promulgate the unyielding spirit of disabled persons and foster a social environment of unity, fraternity and mutual assistance. Article 48 The third Sunday of May each year is the National Day of Assisting Disabled Persons. Chapter VIII Legal Liabilities Article 49 Where the lawful rights and interests of disabled persons are violated, the offended persons or their agents shall have the right to appeal to the competent authorities for disposition, or institute lawsuits at people’s courts in accordance with law. Article 50 Where government functionaries neglect their duties, in violation of law, and infringe upon the lawful rights and interests of disabled persons, the units to which they belong or their higher authorities shall instruct such persons to correct their wrong doings or subject them to administrative sanctions. Article 51 Whoever infringes upon the lawful rights and interests of a disabled person and causes property or other losses or damage shall compensate for the losses or damage according to law or bear other civil liabilities. Article 52 Whoever infringes upon the right of person or other lawful rights of disabled persons by taking advantage of their disabilities and constitutes a crime shall be given a heavier punishment in accordance with the relevant provisions of the Criminal Law. Whoever, by violence or other means, publicly insults disabled persons, shall, if the circumstances are serious, be investigated for criminal responsibility in accordance with the provisions of Article 145 of the Criminal Law, and, if the circumstances are less serious, be subject to punishment in accordance with the provisions of Article 22 of the Regulations on Administrative Penalties for Public Security. Whoever maltreats disabled persons shall be punished in accordance with the provisions of Article 22 of the Regulations on Administrative Penalties for Public Security; and, if the circumstances are flagrant, he shall be investigated for criminal responsibility in accordance with the provisions of Article 182 of the Criminal Law. Whoever refuses to perform his duty of fostering a disabled person who is unable to live independently, shall, if the circumstances are flagrant, or if he abandons such a disabled person, be investigated for criminal responsibility in accordance with the provisions of Article 183 of the Criminal Law. Whoever has illicit sexual relations with a disabled person who is unable to account for her own conduct due to mental retardation or mental disorder shall be deemed to have committed rape and shall be investigated for criminal responsibility in accordance with the provisions of Article 139 of the Criminal Law. Chapter IX Supplementary Provisions Article 53 Departments concerned under the State Council shall formulate relevant regulations in accordance with this Law and submit them to the State Council for approval before implementation. The standing committees of the people’s congresses of provinces, autonomous regions and municipalities directly under the Central Government may formulate measures of implementation in accordance with this Law. Article 54 This Law shall enter into force as of May 15, 1991.

Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.

1...206207208...212 Page 207 of 212