Home China Laws Page 208

China Laws

CIRCULAR OF THE STATE DEVELOPMENT PLANNING COMMISSION, THE STATE ECONOMIC AND TRADE COMMISSION, THE PEOPLE’S BANK OF CHINA ON RELEVANT ISSUES CONCERNING STRENGTHENING CONTROL OVER SALE OF EXCHANGE UNDER CAPITAL ACCOUNT

The State Development Planning Commission, the State Economic and Trade Commission, the People’s Bank of China

Circular of the State Development Planning Commission, the State Economic and Trade Commission, the People’s Bank of China on Relevant
Issues Concerning Strengthening Control over Sale of Exchange Under Capital Account

JiWaiZi [1998] No.992

June 15,1998

Province, autonomous region, the Development Planning Commission of municipality directly under the Central Government, the Economic
and Trade Commission, the branch of People’s Bank of China :

Because of having adopted proper and effective policies and measures and the emergence of new means of investment and financing, in
recent years there has been an increase of foreign investment in the infrastructure and the issue of H share listed abroad and B
share listed within China also have progressed greatly, which have consequently made the sale amount of exchange under capital account
grow in a relatively fast speed and at the same time exerted pressure on the supply of Renminbi to some extent. In order to strengthen
supervision and control over sale of foreign exchange under capital account, following matters concerning the control over sale of
exchange under capital account with approval from State Council are hereby pronounced:

1.

On the premise of continual adoption of moderately tight monetary policy, domestic financial institutions are encouraged to make use
of new financing means to participate in financing of Renminbi in the projects of domestic and foreign funds. Efforts to restructure
should be strengthened to reduce excessive dependence of infrastructure projects on foreign funds.

2.

Within the current limits of authority to examine and approve, no localities and departments are allowed to divide up projects surmounting
the prescribed quota of foreign fund into projects under the quota or deliberately lower down the total investment amount so as to
examine and approve by themselves. In event of foreign-funded projects of BOT, financing of projects outside China, portfolio financing
(ABS) etc., they must be all examined and approved by State Development Planning Commission or by State Council through State Development
Planning Commission without exception.

3.

In case of various kinds of projects utilizing foreign funds and having a need of sale of exchange, yearly plan of fund for sale based
by year should be added in the feasibility report presented for examination. When examining and approving the feasibility report
of the project, the government agencies in charge of the examination and approval should check and determine the prescribed quota
for sale. Copy of the feasibility report approved by examining government agencies concerned should be sent to State Administration
of foreign exchange having the same authority to provide basis for state administration of foreign exchange to learn into the trend
of sale of exchange under capital account.

4.

Establishment of record and registration system of sale of exchange under capital accounts. For those foreign-funded projects needing
sale of exchange (including the issuing of B share listed within China and the share listed abroad), institutions with a project
over the prescribed quota should go through record and registration of sale of exchange in State Administration of Foreign Exchange
within 30 days since the date of approval of the feasibility report of the project in question. Institutions with a project below
the quota should finish record and registration of purchase of foreign exchange in local branch of State Administration of foreign
exchange. Those projects not having been recorded and registered should not be granted the right to sale exchange.

5.

If it is needed to issue B share within China and issue share abroad, listed companies having a direct demand for foreign exchange
should be given priority. For those listed companies having a direct demand for foreign exchange, the need for sale of exchange should
be added into the prospectus of the company. Exchange incomes can be deposited in Chinese banks in Hong Kong after approval and can
be taken back for sale of exchange by installments according to the progress of use of funds in domestic projects.

6.

If found having committed activities of interest arbitrage through sale of exchange, enterprises which have borrowed foreign commercial
loans, should be dealt according to relevant provisions.



 
The State Development Planning Commission, the State Economic and Trade Commission, the People’s Bank of China
1998-05-29

 







METHOD FOR THE SELECTION OF THE CANDIDATE FOR THE FIRST CHIEF EXECUTIVE OF THE MACAO SPECIAL ADMINISTRATION REGION

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1999-01-16 Effective Date  1999-01-16  


Method for the Selection of the Candidate for the First Chief Executive of the Macao Special Administration Region of the People’s
Republic of China



(Adopted at the Fifth Plenary Meeting of the Preparatory Committee for the

Macao Special Administrative Region of the National People’s Congress on
January 16, 1999)

    Article 1  In accordance with the Basic Law of the Macao Special
Administrative Region ( hereinafter referred to as “the Basic Law”) and the
Decision of the National People’s Congress on the Method for the Formation
of the First Government, the First Legislative Council and the First
Judiciary of the Macao Special Administrative Region, this Method is
formulated in order to select the candidate for the first Chief Executive
of the Macao Special Administrative Region.

    Article 2  The candidate for the first Chief Executive shall be nominated
in accordance with the principle of fairness, impartiality, publicity,
democracy, and probity.

    Article 3  The candidate for the first Chief Executive must have the
following qualifications:

    1. A Chinese citizen who is a permanent resident of Macao with no right of
abode in any foreign  country or consenting to give up the right of abode in
any foreign country;

    2. Not less than 40 years of age;

    3. Have ordinarily resided in Macao for a continuous period of not less
than 20 years;

    4. Support the Basic Law;

    5. Give allegiance to the People’s Republic of China and the Macao Special
Administrative Region.

    Among these qualifications, “not less than 40 years old” means already
being 40 by the cutoff date of the enrollment of the election; “have
ordinarily resided in Macao for a continuous period of not less than 20
years” means having ordinarily resided in Macao for a continuous period of not
less than 20 years by the cutoff date of the enrollment of the election,
calculation of such a period shall include the time of going abroad for
study, business or visiting relatives and friends when residing in Macao.

    Article 4  Current in-service public servants who intend to participate in
the selection of the First Chief Executive must resign their public service
and leave their post while enunciating their intention of participation.

    Article 5  People who intend to participate in the selection of the First
Chief Executive shall attend in their individual capacities. People who are
members of political parties must secede from these political parties while
enunciating their intention of participation.  

    Article 6  The selection of the first Chief Executive shall be taken charge
by the Chair Meeting of the Preparatory Committee for the Macao Special
Administrative Region of the People’s Republic of China (hereinafter referred
to as “the Chair Meeting of the Preparatory Committee”).

    Article 7  The first Chief Executive shall be selected through the method
of nomination by the Selection Committee for the First Government of the Macao
Special Administrative Region (hereinafter referred to as “the Selection
Committee”). The following are the specific procedures:

    A. Enrollment and Qualification Verification

    People who intend to participate in the selection of the first Chief
Executive shall enunciate their intention of participation to the Chair
Meeting of the Preparatory Committee in written form and shall submit a
Resume Form of Participant for the Office of the First Chief Executive of the
Macao Special Administrative Region of the People’s Republic of China while
enrolling for the selection. Participants for the selection of the Chief
Executive shall not be members of the Selection Committee. If a member of
the Selection Committee intends to participate in the selection, he must
simultaneously resigned his post in the Selection Committee while enunciating
his intention to participate in the selection. The vacancy shall be disposed
in accordance with Article 12 of the Method for the Formation of the
Selection Committee for the First Government of the Macao Special
Administrative Region of the People’s Republic of China.

    The Chair Meeting of the Preparatory Committee shall be responsible for
the verification of qualification of people who have submitted Resume Form,
and when necessary may require them to provide certifying papers concerning
matters they wrote in the Form. People who have the qualification become
participants for the selection of the first Chief Executive and the Chair
Meeting of the Preparatory Committee shall publicize the list of the
participants.

    B. Nomination and Determination of Candidates

    The Selection Committee shall, on the basis of the list of participants,
bring forward candidates for the office of the first Chief Executive by secret
ballot after consultation. Each member of the Selection Committee may nominate
one candidate. When counting nomination ballots, the scrutineer elected
by the members of the Selection Committee shall oversee the counting.
Participants who nominated by not less than 20 members of the Selection
Committee become candidates for the office of  the first Chief Executive, who
shall be subsequently affirmed by the Chair Meeting of the Preparatory
Committee.

    The list of candidates and their brief introduction shall be printed and
distributed to all members of the Selection Committee and shall be announced
to the public.

    C. Election

    The Chair Meeting of the Preparatory Committee shall convene plenary
session of the Selection Committee. The candidates for the office of the first
Chief Executive shall report to the plenary session of the Selection Committee
their personal status and their administrative plans, and shall answer
questions from members of the Selection Committee.

    Members of the Selection Committee shall vote by secret ballot. Each
member may  vote for one candidate. Ballots voting for one candidate are
valid, and those voting for more than one candidates are invalid.

    Members of the Selection Committee shall elect mutually a scrutineer to
oversee the balloting. If the number of ballots is equal to or less than the
number of balloters, the vote is valid; if the number of ballots is more than
the number of balloters, the vote is invalid and must be hold again.

    The candidate who receives more than half of the votes of members of the
Selection Committee shall be elected. If no candidate receives more than half
of the votes, then the two leading candidates shall enter into a second round
vote and the one receiving more votes in the second round shall be elected.

    The scrutineer shall report the voting result to the Chair Meeting of the
Preparatory Committee, who shall then announce the voting result to the public.

    Article 8  The procedure selecting the candidate for the first Chief
Executive shall be completed within 45 days after the establishment of the
Selection Committee.

    Article 9  Participants and candidates for the first Chief Executive shall
not carry out personal abuse on each other and shall not bribe members of the
Selection Committee or offer or promise to offer them any benefits.

    The Chair Meeting of the Preparatory Committee shall be responsible for
supervising the vote and handling appeals.

    Article 10  After the recommended candidate for the first Chief Executive
is elected, the Preparatory Committee shall report to the Central Government
for appointment.

    Article 11  Matters not stipulated in this Method may be
supplemented by the Plenary Session of the Preparatory Committee in accordance
with the proposal of the Chair Meeting of the Preparatory Committee.

    Article 12  The Chair Meeting of the Preparatory Committee shall be
responsible for the interpretation of this Method.






PROPOSALS ON STRENGTHENING SAFETY IN PRODUCTION

Category  LABOR Organ of Promulgation  The General Office of the State Council Status of Effect  In Force
Date of Promulgation  1999-03-20 Effective Date  1999-03-20  


Proposals on Strengthening Safety in Production



(Submitted by the State Economic and Trade Commission on March 8, 1999, promulgated by the General Office of the State Council on March 20, 1999)

    Safety in production has an important bearing on the security of the State
and of the people’s lives and property, and is of vital importance to the
stability of the society and the healthy development of economy. In recent
years, the localities and departments have earnestly implemented the policy
“safety and prevention are the top priority”; they have done a lot of work
in constructing the legal system for safety in production, establishing the
mechanism for safety in production, strengthening the control over hidden
peril of accidents and the handling of accidents, establishing the
responsibility system of safety in production, promoting education and
publicity of safety in production, Great achievements have been made
national-widely in the aspect of safety in production. However, in recent
period, in some localities and industries the situation of safe production
has become serious, major casualty accidents occur now and then. In order to
redress the serious situation and better the work of safety in production,
proposals are put forward as follows:

    1.Implementing earnestly important instructions on the work in relation
to safety in production made by leaders of the Central Party, strengthening
guidance on the work of safety in production, and putting into effect the
responsibility system of safety in production.

    (1) Jiang Zemin and other leaders of the Central Party have made series
of significant instructions on safety in production, which have a very import
significance in doing a good job in relation to the safety in production at
present and in the future and should be implemented earnestly by all
localities, departments and enterprises. In year 1999 we will celebrate the
50th anniversary of the People’s Republic of China, welcome the return of
Macao, therefore doing a good job in relation to safety in production has
special significance, leaders at various levels must have a clear perception
into current situations, pay great attention to safety in production, and
comprehend the instructions given by the leaders of the Central Party, they
should, form the aspect of emphasizing politics, maintaining stability,
promoting economical and social development as well as taking responsibility
for people, properly deal with the relation between safety in production and
economic development, between safety in production and economic returns. It
is a must to continue to implement the policy “safety and prevention are the
top priority”, overcome carelessness, get rid of laxation, emphasize the work
of preventing accidents in safety in production, and strive to avoid the
occurrence of injuries and serious accidents.

    (2) All localities and departments should take responsibility of managing safety in production, strengthening
the leadership of safety in production, include the work in relation to safety in production into local and departmental economy
and social developments, solve the problems in the safety in production timely and effectively. In reforming and reshuffling enterprises,
the work in relation to safety in production cannot be weakened, instead should be strengthened. Supervisory and managerial teams,
especially the basic teams should be well organized and stabilized; in the mean time more capital should be invested for safety in
production, technical development should be accelerated.

    (3) Enterprises should strictly implement laws, regulations and  policies on safety in production,
voluntarily accept supervision of the State and industrial management. The responsibility system of safety in production should be
carried out, bylaws on safety in production should be formulated and improved, working conditions of workers and staff should be
bettered, necessary equipment for labor protection should be provided to workers and staff. Legal representatives of enterprises
are the first responsible persons for safety in production, they should take overall responsibility for safety in production.

    2.Strengthening supervisory work of safety in production, enhancing legal construction and systemization of
safety in production, and intensifying the execution of law.

    (1) All localities and departments should strengthen on-the-spot supervision over safety in production, especially
in those dangerous industries, such as transportation, coal-mining, electricity, oil, chemical industry, construction, forestry,
commerce, entertainment; they should reinforce the work of examining project designs, check and acceptance after completion of projects,
including those newly built, rebuilt and enlarged. As to those projects with inadequate matching safety equipment and in substandard
quality, they should not be put into use and production. Boiler and other pressure containers should be under strict quality supervision
and inspection, the substandard products are forbidden to be sold and used. The supervisory work of producing, selling and using
labor protection equipment should be strengthened. The check, evaluation, supervision and control of hidden peril of accidents and
danger sources should be reinforced. The safety authentication of dangerous equipment and facilities should be strengthened; the
management of examining the enterprise leaders and specialists should be enhanced. Effective supervisory work of the common people
should be carried out.

    (2) Considering the economic restructure, all localities and departments should comprehensively administer
the dangerous industries and enterprise, decisively close illegal mines which have unreasonable overall arrangement and bad production
condition in accordance with unified planning of the State, reorganize and close the” five kinds of small factories”( glass factories,
cement factories, oil-refining factories, thermal power plants, and steel plants) which own backward technology, or waste resources,
or make low-grade products, or pollute the environment, or cannot accord with the requirement of safety in production.          

    (3) Reinforcing the legal system establishment of safety in production. On the basis of existing regulation
and bylaws, it is a must to speed up the work of complementing and consummating regulations, standards and bylaws for safety in production.
All localities and departments in charge of supervising safety in production should collaborate closely, execute law strictly, punish
illegal acts according to the law; it is also a must to achieve the aims that the laws must be observed and strictly enforced, and
law-breakers must be prosecuted so as to ensure the effective implementation of laws and regulation on safety in production.

    3.Reinforcing the education and publicity of safety in production and training of personnel, improving the
awareness of safety of the whole society.

    (1) Publicity departments at various levels and enterprises should adopt
manifold forms of education, spread the idea of safety in production widely
and deeply, especially strengthen the publicity of laws and regulations on
safety in production. Media should actively co-operate, portray advanced
elements in safety in production, and vigorously publicize the idea of safety
in production. As to heavy accidents and illegal acts against laws and
regulations on safety in production, it is a must to expose them, employ
typical examples to educate workers and staff, so that they would know law,
stand by law, heighten their consciousness of rule of law, advance the
consciousness of security and self-protection. Schools, universities should
also properly educate students, inform them of the idea of safe production,
persistently launch the activity of “the week of safe production” every year.

    (2) Reinforce the training and examining work of managers and personnel in charge of supervising safe production,
improve their managing ability in the aspect of safe production. The enterprise staff, especially peasants have to take the training
for safe production and obtain qualification, otherwise they cannot be permitted to work. Employees in special industries have to
take special training for safe production and obtain special qualification.

    4.Strengthening the work of reporting and statistics on accidents and dealing with problems arising from accidents.

    After the accidents happened, units concerned should timely report the situations to local government and
supervisory department in charge of safe production. Supervisory departments in charge of safe production at various levels should
reinforce the work of accident counting and reporting, insure that information be timely, correctly, and comprehensively conveyed.
As for the accidents in which three or more persons died, the relevant departments should report it timely to the State  Economics
and Trade Commission the relevant departments of the State Council. Among them, the especially heavy accidents should be immediately
reported to the State Council. Governments and relevant departments at various levels should seriously deal with the especially heavy
accidents in accordance with the relevant provisions. As for the accidents caused by carelessness and peccancy, the relevant leaders
and personnel in charge should be investigated for responsibility and be punished according to the related provisions; if crimes
are constituted, criminal responsibilities should be investigated by judiciary organs. The State Economics and Trade Commission is
in charge of organizing and harmonizing the work in relation to the investigation and handling of especially heavy accidents, and
replying investigation results of especially heavy accidents, major issues should be reported to the State Council for decision.






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING TAXATION POLICY ON PROMOTION OF APPLICATION OF SCIENTIFIC AND TECHNOLOGICAL ACHIEVEMENTS

The Ministry of Finance, the State Administration of Taxation

Circular of the Ministry of Finance and the State Administration of Taxation Concerning Taxation Policy on Promotion of Application
of Scientific and Technological Achievements

CaiShuiZi [1999] No.45

May 27, 1999

Finance departments (bureaus), state and local taxation bureaus of all provinces, autonomous regions, municipalities directly under
the Central Government and municipalities separately listed on the State plan:

In order to carry out the Law of People’s Republic of China on the Progress of Science and Technology and the Law of People’s Republic
of China on the Promotion of Application of Scientific and Technological Achievements, and to encourage the development of high/new
technology industry, the circular regarding taxation policy of the research and development of high/new technology and the transmission
of scientific achievements of scientific research institutions and colleges and universities, after the approval of State Council,
is notified hereby as follows:

1.

The technology transference income of scientific research institutions continues being exempted from business tax, and the technology
transfer income of colleges and universities is exempted from sales tax since May 1, 1999.

2.

The technological services income gained by scientific research institutions and colleges and universities, in various industries
and from technological achievements transference, technological training, technological consultancy, technological service and technological
contract shall be exempted temporarily from enterprise income tax.

3.

Since July 1, 1999, where scientific research institutions and colleges and universities which transmit the scientific and technological
achievements tied to a position grant personal premium in the form of share rights such as stock or proportion of capital contribution
and so on, the person who has been granted premium temporarily need not pay individual income tax at the time of gaining the stock
or proportion of capital contribution. And income tax shall be paid when profits are gained by shares or proportion of capital contribution
or interests are gained by transference of shares or proportion of capital contribution.

The relevant specific implementing rules are to be promulgated by the State Administration of Taxation.



 
The Ministry of Finance, the State Administration of Taxation
1999-05-27

 







CIRCULAR OF THE GENERAL ADMINISTRATION OF CUSTOMS, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE STATE ECONOMIC AND TRADE COMMISSION ON THE ISSUES OF EVALUATING STANDARDS AND EXAMINATION AND APPROVAL PROCEDURES FOR THE CLASSIFIED MANAGEMENT OVER THE PROCESSING TRADE ENTERPRISES

The General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, the State Economic and Trade Commission

Circular of the General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation and the State Economic and
Trade Commission on the Issues of Evaluating Standards and Examination and Approval Procedures for the Classified Management over
the Processing Trade Enterprises

ShuJian [1999] No.522

July 12, 1999

The General Administration of Customs Guangdong branch, the various customs directly under the General Administration of Customs,
foreign trade and economic cooperation commissions (departments, bureaus) and economic and trade commissions (economic commissions
and economic planning commissions) of the various provinces, autonomous regions, municipalitie directly under the Central Government
and municipalities separately listed on the State plan :

With a view to implementing the Opinions of the State Economic and Trade Commission and other Departments On further Perfecting the
Bank Deposit Account System for Processing Trade Transmitted by the General Office of the State Council (GuoBanFa [1999] No. 35),
in accordance with the spirit of instructions by the leaders of the State Council, the inter- ministerial conference on processing
trade has adopted at its second session the evaluating standards and examination and approval procedures for the classified management
of the processing trade enterprises, the relevant issues of which are notified as follows:

1.

Conditions for Processing Trade Enterprises Not to Implement the Bank Deposit Account System

Processing trade enterprises evaluated and approved by the Customs for applicable to the management under Category A, in accordance
with the provisions of the Article 6 of the Implementation Procedures of the Customs of the People’s Republic of China for the Classified
Management of Enterprises, jointly distributed by the General Administration of Customs, the Ministry of Foreign Trade and Economic
Cooperation and the State Economic and Trade Commission (ShuJian [1999] No. 240), and meeting one of the following conditions, the
Customs may not implement to them the bank deposit account system:

(1)

Bonded factories where Customs commissioners are sent for supervision or a computer internet management system is established by the
Customs in charge;

(2)

Processing trade engaged in processing in planes, ships and other special professions;

(3)

Enterprises whose total import and export value exceeds over 30 million U.S. dollars (including 30 million U.S. dollars) a year or
self-operated productive enterprises whose total export value exceeds 10 million U.S. dollars (including 10 million U.S. dollars)
a year, or enterprises whose total processing export value exceeds 10 million U.S. dollars (including 10 million dollars).

2.

Processing Trade Enterprises Applicable to Examination and Approval Standards for the Management under Category C

(1)

Enterprises having one of the conditions enlisted in the Article 9 of Document ShuJian No. 240, the Customs shall implement to them
management under Category C.

(2)

The “infringement” called in Clause one of the Article 9 of Document ShuJian No. 240, is interpreted as fines decided by the Customs
for the infringement of the enterprises as defined in Chapter 3 of the Detailed Rules for the Implementation of Administrative Penalties
of the Customs Law of the People’s Republic of China and that the decision for fines has come into force. But the fines for infringement
below 1000 yuan RMB (including 1000 yuan RMB) shall not be recorded for evaluating enterprises.

(3)

The time limit for examining and approving the infringement and smuggling of the enterprises is August 1, 1998, namely the infringement
and smuggling behaviours happened after this time shall be recorded as reference for evaluating classified management over the enterprises.

3.

Evaluating Procedures for Classified Management over Processing Trade Enterprises

(1)

Councils for classified management over the enterprises shall be established by the various Customs.

(2)

The Customs having jurisdiction over the enterprises shall raise the list of enterprises managed over under Category A that are not
to apply the bank deposit account system, and send out copies of the list within 7 work days to the departments of foreign trade
and economic cooperation commissions, economic and trade commissions, taxation, foreign exchange control and Bank of China, etc.
where the enterprises are located (at regional and municipal level and above, the same below) for seeking their opinions. The above
mentioned departments should feed back their opinions within 7 work days; if they disagree to the categories determined for certain
enterprises, they should submit to the Customs detailed statement and demonstration material for reconsideration by the Customs;
if the departments feed back no opinion within the prescribed time, it will be deemed that they have no different opinion.

(3)

Should the Customs find out that the enterprises have committed infringement or smuggling, they shall readjust at any time, in accordance
with the relevant files, the management categories for these enterprises to Category C or D. For enterprises examined and approved
for applicable to the management under Category C or D, the Customs should send on the date of examination and approval copies of
a list of them to the departments of foreign trade and economic cooperation commissions, economic and trade commissions, taxation,
foreign exchange control and Bank of China, etc. where the enterprises are located, and shall start management over them under Category
C or D from 3 days (the third day) after the date of examination and approval.

(4)

The Customs shall not announce to the public the management categories applicable to the enterprises, but should inform these to the
enterprises concerned (enterprises applicable to Category B are excluded). If the enterprises disagree to the categories approved
by the Customs after examination, they may apply for reconsideration in accordance with the Law of Administrative Reconsideration
of the People’s Republic of China.

Please carry out the above completely.



 
The General Administration of Customs, the Ministry of Foreign Trade and Economic Cooperation, the State Economic and
Trade Commission
1999-07-12

 







CIRCULAR OF THE IMPORT AND EXPORT BANK OF CHINA ON SUPPORTING THE EXPORT OF HIGH-NEW TECHNOLOGIC PRODUCTS

The Import and Export Bank of China

Circular of the Import and Export Bank of China on Supporting the Export of High-New Technologic Products

JinChuYinJiFa [1999] No.210

September 24, 1999

With a view to implementing the strategy of revitalizing China through science and education, promoting vigorously the improvement
of science and technology, strengthening the innovation of the technology, and supporting the exportation of high and new-technology
on effort, Circular of the General Office of the State Council Concerning Transmitting the Opinions of the Ministry of Foreign Trade
and Economic Cooperation and Other Relevant Departments on Taking Further Measures to Encourage the Expansion of the Exportation
(GuoBanFa [1999] No.71) has decided that Import and Export Bank of China will enlarge the business scope of export credit and favorable
loans as to include the exportation of high new technology product. Hereby notify the relevant matters as follows:

1.

The scope of the high and new technology product that need support shall be decided according to the List of Exports and Imports of
High and New technology Product of China (the 2000 edition) jointly formulated by the Ministry of Science and Technology and other
relevant ministries.

2.

To support the exportation of high and new-technology product shall make full use of seller credits of exports, buyer credits, favorable
loans for foreigners, export credit insurance, external guaranty and other ways. Each of them shall be transacted according to the
procedures and provisions.

3.

The export seller credit interest of high and new-technology product shall be decided according to the Circular on Calculating the
Export Seller Credit Interest of the New-technology Product (JinChuYinJiFa [1999] No.205). That is to say the first-grade interest
rate (large-scale equipment in whole set and machinery and electrical appliances with high technology) of export seller credit in
RMB which is decided by People’s Bank of China. The present interest rate is 4.05%.

4.

It shall be given a favorable rate of the insurance fee for the high and new technology product that gets the export credit insurance.

5.

Departments concerned credit and insurance shall count and report the amount of export high and new technology product that received
supports, and shall count the amount of machinery and electrical appliances with high and new technology and other kinds of high
and new technology products separately.



 
The Import and Export Bank of China
1999-09-24

 







REPLY OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ISSUES CONCERNING THE EXCHANGE RATE APPLICABLE TO THE BILATERAL INVESTMENT PROTECTION AGREEMENT

The State Administration of Foreign Exchange

Reply of the State Administration of Foreign Exchange on Issues Concerning the Exchange Rate Applicable to the Bilateral Investment
Protection Agreement

HuiHan [1999] No.35

October 26, 1999

The Ministry of Foreign Trade and Economic Cooperation:

Your Letter for Consultation on Several Articles of the Bilateral Investment Protection Agreement (WaiJingMaoFaHanZi [1999] No.69)
has been duly received. Please find our reply as follows:

In 1994, resulting from the reform our country’s foreign exchange system, the mechanism of buying foreign exchange from and selling
foreign exchange to banks was adopted, and a single and managed RMB floating exchange rate system based on market supply and demand
was established. Accordingly, the People’s Bank of China makes a daily announcement of the benchmark exchange rates of RMB against
US dollar, Hong Kong dollar and Japanese yen respectively based on the prevailing rates in the inter-bank foreign exchange market
the day before. All designated foreign exchange banks can, based on the benchmark exchange rate of RMB against US dollar and within
the floating range set up by the People’s Bank of China, decide their own exchange rates of RMB against all convertible currencies
and conduct foreign exchange transactions accordingly. Therefore, in our opinion, the settling (or selling) of foreign funds to be
paid (or remitted) shall be conducted at designated foreign exchange banks in compliance with the relevant stipulations on foreign
exchange settlement and sales administration and at an exchange rate set by the designated foreign exchange bank based on the benchmark
exchange rate and the floating range announced by the People’s Bank of China.

This is the reply.



 
The State Administration of Foreign Exchange
1999-10-26

 







CIRCULAR OF THE STATE ADMINISTRATION FOR ENTRY-EXIT INSPECTION AND QUARANTINE, THE MINISTRY OF FOREIGN TRADE AND ECONOMIC COOPERATION AND THE GENERAL ADMINISTRATION OF CUSTOMS ON IMPLEMENTING STATUTORY INSPECTION ON THE SMALL HOUSEHOLD APPLIANCE EXPORTS

The State Administration for Entry-exit Inspection and Quarantine, the Ministry of Foreign Trade and Economic Cooperation, the General
Administration of Customs

Circular of the State Administration for Entry-exit Inspection and Quarantine, the Ministry of Foreign Trade and Economic Cooperation
and the General Administration of Customs on Implementing Statutory Inspection on the Small Household Appliance Exports

GuoJianJianLian [1999] No.383

December 16, 1999

Each bureau of inspection and quarantine directly under the State Administration for Entry-exit Inspection and Quarantine, commissions
(departments, bureaus) of foreign trade and economic cooperation in various provinces, autonomous regions, municipalities directly
under the Central Government and municipalities separately listed on the State plan, each local electromechanical product import
and export administration offices, Guangdong Branch of the General Administration of Customs and every customs directly under the
General Administration of Customs:

With the development of China’s foreign trade, as one of the important electromechanical products, small household appliances have
been registering a higher and higher export volume and have already entered the European and American markets among others in the
world. As small household appliances are directly associated with the safety of the end-users, safety problems of small household
appliance exports have affected the export of Chinese electromechanical product.

In order to promote the foreign trade development, improve the quality of the small household appliance exports, further expand its
export and give full play to the responsibility of the inspection organs, small household appliance exports are now under statutory
inspection in accordance with the Law of the People’s Republic of China on Import and Export Commodity Inspection. Relevant inspection
details are hereby publicized as follows:

I.

The small household appliance for export (see attached Commodity HS Code) are under statutory inspection as of January 1, 2000.

II.

During inspection, the safety feature standard for the small household appliances for export shall not be lower than the standard
of GB47061 and GB4706.

III.

The customs check and grant clearance for the small household appliances for export upon presentation of the Clearance Certificate
for Exports issued by the State Administration for Entry-exit Inspection and Quarantine. The sample of Clearance Certificate for
Exports will be publicized in other document later.

IV.

Relevant provisions of the State Administration for Entry-exit Inspection and Quarantine shall be followed with respect to application
for inspection, inspection and certificate issuance.



 
The State Administration for Entry-exit Inspection and Quarantine, the Ministry of Foreign Trade and Economic Cooperation,
the General Administration of Customs
1999-12-16

 







OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON VALUE ADDED TAX RELATING TO REPAIR AND REPLACEMENT BUSINESS ACCEPTED FROM ABROAD BY ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Official Reply of the State Administration of Taxation on Value Added Tax Relating to Repair and Replacement Business Accepted from
Abroad by Enterprises with Foreign Investment

GuoShuiHan [2001] No.104

January 20, 2001

The Administration of State Taxation of Xiamen City:

“The Report for Requesting Instructions on Exemption of Value Added Tax relating to Repair and Replacement Business Accepted from
Abroad by Newly Established Enterprises with Foreign Investment” (XiaGuoShui [2000] No.40), as submitted by your Administration has
been received. According to your Report, enterprises with foreign investment established before January 1, 1994 are, in accordance
with relevant provisions of the Circular of the State Administration of Taxation on Taxation of Goods Exported by Enterprises with
Foreign Investment (GuoShuiFa [1999] No.189 ), exempted from value added tax on their incomes received from airplane repair and replacement
business accepted from abroad, and given refund of value added tax already levied on spare parts and materials; there are, however,
no definite provisions concerning taxation on similar business taken by enterprises with foreign investment that were established
after January 1, 1994. In this regard, this Reply is hereby made after due consideration as follows:

In accordance with the provisions of Article 2 of the “Interim Regulations of the People’s Republic of China on Value Added Tax,
“and Article 16 of the State Administration on Taxation’s” Measures for Tax Refund (Exemption) for Exported Goods” (GuoShuiFa [1994]
No.031 ), enterprises with foreign investment established after January 1, 1994 shall be exempted from value added tax on their incomes
from airplane repair and replacement business accepted from abroad and, according to the value added tax invoice and the applicable
rate of refund, given refund of tax paid when purchasing in China spare parts and materials needed for the repairs. Please carry
out these provisions completely.



 
The State Administration of Taxation
2001-01-20

 







INTERIM GENERAL RULES CONCERNING INSPSCTION OF ENTRY AND EXIT TRAINS, TRAIN CREW, PASSENGERS AND LUGGAGE

Interim General Rules Concerning Inspsction of Entry and Exit Trains, Train Crew, Passengers and Luggage

     (Effective Date:1951.05.24–Ineffective Date:)

1. These General Rules are formulated to unify the inspection work relating to the entry and exit trains, train crew, passengers,
luggage, and articles passengers carry along in order to ensure the safety of driving, to maintain the public order in the border
areas, to prevent epidemic diseases from spreading, and to suppress smuggling.

2. The following government organs shall, in accordance with their respective competent scope of operations carry out inspections,
at stations in the country’s border areas, of the entry and exit trains, train crew, passengers, luggage, and articles passengers
carry along.

(1) Public security organs: It shall be responsible for inspecting passengers’ passports and other certificates, for safeguarding
the operations on trains, and for maintaining the public order in the country’s border areas; shall work in cooperation with the
Customs Office in inspecting trains, train crew, passengers, luggage, and articles passengers carry along; and, when necessity arises,
shall inspect certain suspicious passengers separately.

(2) Quarantine organs: It shall be responsible for inspection and prevention of diseases and epidemic diseases on trains and among
train crew and passengers.

(3) Customs offices: It shall be responsible for inspecting trains, train crew, passengers, luggage, and articles passengers carry
along, for smuggled goods; and when necessary, it shall inspect passengers suspicious of smuggling individually.

Other government organs, unless specially authorized by the Government Administrative Council, are not permitted to conduct inspections.

3. To carry out the inspection of the entry and exit trains, train crew, passengers, luggage, and articles passengers carry along,
the railway authorities shall notify all inspection units concerned to effect a coordinated inspection at a specified time in accordance
with the stipulations in the preceding article; if no special situation occurs, the inspection shall be made, in principle, just
once.

4. In principle, inspections are not carried out on board the trains; when necessity arises, however, a coordinated inspection shall
be carried out on board the trains by the public security organ, the Customs office and the quarantine organ; the working procedures
for such a coordinated inspection shall be worked out by the organs concerned through consultation.

5. The inspection of foreign diplomatic personnel shall be carried out in accordance with the pertinent provisions promulgated by
the Ministry of Foreign Affairs under the Central People’s Government.

6. In principle, inspections are not carried out on board the domestic trains, except by the public security organ; however, inspections
shall be carried out by the organs concerned through the railway authorities under either of the following two circumstances.

(1) When trains running from or to epidemic-stricken areas, or when epidemic cases or deaths from epidemic diseases occur on the train,
and the quarantine organ considers it necessary to make an inspection;

(2) When the train is running close to border area where smuggling is rampant, or when suspicious cases of smuggling arise and the
Customs office considers it necessary to make an inspection.

7. At all stations on the country’s borders, the public security organ shall be responsible for calling and presiding over regular
meetings on the coordination in inspection work; and all organs concerned shall discuss problems that crop up during the inspections,
and exchange views on how to coordinate their actions, to work in close cooperation under division of competence, and to simplify
operative procedures.

8. Government inspection personnel shall wear uniforms and the badges and armbands issued by their respective organs.

9. The term inspection, as mentioned in these General Rules, refers to the inspection provisions listed in the various items in Article
2 of these General Rules. Other provisions of inspection, such as the control of cargo shipment and the inspection and examination
of goods for taxation as executed by the Customs office, shall be executed by various organs concerned in accordance with the existing
relevant provisions.

10. All the inspection organs concerned under the Central Government shall, in accordance with their respective competent scope of
operations, send immediately to the Ministry of Railways the regulations and decrees concerning the prohibitions, restrictions and
bans to be imposed on the railway transportation of passengers and cargos; and the same procedure shall be followed when amendments
are made.

11. These General Rules shall go into effect after their promulgation by the Government Administrative Council. If any former inspection
procedures adopted in various regions conflict with these General Rules, the former shall be abolished.

    






CONSTITUTION ACT, 1982 – page 22

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