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PROVISIONS OF THE GENERAL ADMINISTRATION OF CUSTOMS AND THE MINISTRY OF FINANCE CONCERNING THE LEVY AND EXEMPTION OF CUSTOMS DUTIES AND CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX ON IMPORTS AND EXPORTS FOR THE CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF OFFSHORE OIL

19820228the State Council

The General Administration of Customs, the Ministry of Finance

Provisions of the General Administration of Customs and the Ministry of Finance Concerning the Levy and Exemption of Customs Duties
and Consolidated Industrial and Commercial Tax on Imports and Exports for the Chinese-foreign Cooperative Exploitation of Offshore
Oil

(Approved on February 28, 1982 by the State Council, Promulgated on April 1, 1982 by the General Administration of Customs and the
Ministry of Finance)

In order to encourage Chinese-foreign cooperative exploitation of offshore oil, rules for the levy and exemption of customs duties
and the consolidated industrial and commercial tax on imports and exports for offshore oil exploitation are hereby drawn up as follows:

Article 1

The following imported goods shall be exempt from the duties and the tax:

(1)

machinery, equipment, spare parts and materials verified and approved for direct use in exploration.

(2)

machinery, equipment, spare parts and materials verified and approved as necessary imports for direct use in development, in accordance
with Article 19 to Article 21 of the “Regulations of the Republic of China on the Exploitation of Offshore Oil Resources in Cooperation
with foreign Enterprises.”

(3)

parts, components and materials verified and approved as necessary imports for manufacturing machinery and equipment in China for
the exploitation of offshore oil (including prospecting, well drilling, well cementing, well logging, mud logging, oil production,
work-over, etc.).

(4)

Machinery and other engineering equipment, temporarily imported for exploitation of oil and guaranteed to be re-exported by foreign
contractors, shall be oil and guaranteed to be reexported by foreign contractors, shall be exempt from the duties and the tax when
imported or re-exported.

Article 2

Crude oil received by foreign contractors in accordance with provisions of the oil contracts shall be exempt from export duties when
it is exported.

Article 3

Customs duties and consolidated industrial and commercial tax shall be levied on imports and exports beyond the scope specified in
Article 1 and Article 2 above according to the Customs Import and Export Tariff of the People’s Republic of China and the Regulations
of the Consolidated Industrial and Commercial Tax of the People’s Republic of China (Draft).

Article 4

All goods imported free of the duties and the tax shall not be used for other purposes without Custom’s approval. Breaching of these
rules shall be dealt with by the Customs in accordance with “The Interim Customs Law of the People’s Republic of China”.

Attachment:List of Imported Goods Exempt from the Duties and the Tax for the Chinese-foreign Cooperative Exploitation of Offshore Oil

I

Goods verified and approved as necessary imports for direct use in exploration:

A.

For geophysical exploration:

(1)

ships for geophysical exploration and accessory equipment thereof.

(2)

seismographs, components and accessories thereof, gravimeter and magnetometers and accessories thereof.

(3)

hydrophone streamers and accessory equipment thereof.

(4)

data processing computers and accessory equipment thereof.

(5)

seismic tapes.

(6)

on-land navigation and positioning equipment and accessory facilities thereof.

B.

For well drilling:

(1)

various offshore drilling installations, including jack-ups and semi-submersible drilling rigs, floating drilling ships and drilling
platforms as well as tender ships, working boats and service vessels.

(2)

drilling rigs, and components, accessories or fittings thereof.

(3)

well cementing equipment and auxiliary equipment, including cement mixer and feeding equipment.

(4)

well logging equipment and auxiliary equipment including electrical logging instruments, mud logging instruments, directional survey
instruments and other logging instruments.

(5)

production testing equipment, work-over equipment, and components or accessories thereof.

(6)

special tools for well drilling, including drilling bits, drill collars, drill pipes, deviation control tools, fishing tools and other
tools.

(7)

drilling mud treating equipment and chemicals.

(8)

materials used exclusively for oil wells, including tubing, casing, wellhead equipment and subsea equipment and tools.

(9)

oil well cements and various additives.

C.

For safety and lifesaving:

(1)

various kinds of equipment, spare parts and materials for blowout prevention.

(2)

various kinds of equipment and materials for fire prevention and fire fighting.

(3)

various kinds of equipment, accessories and tools for lifesaving.

(4)

special labor protection outfits for personnel working offshore.

(5)

equipment and materials for diving operations.

D.

For transportation and communications:

(1)

helicopters and facilities for helipad.

(2)

vessels for transportation, communications and convoy, and accessory equipment thereof.

(3)

various kinds of equipment and outfits for wire and radio communication.

E.

For fuels and oils:

Special fuels, lubricating oils and cooling fluids necessary for offshore oil operations.

II

Goods verified and approved as necessary imports for development, or, oil field construction:

A.

For oil production:

(1)

production platforms, including oil production platforms, oil-gas processing platforms, living platforms and flare platforms.

(2)

offshore oil loading facilities, including single-point mooring, single articulated leg mooring, oil storage vessels, under-water
oil storages and loading berths.

(3)

vessels for offshore construction operations.

(4)

power generating equipment and accessories thereof, including internal-combustion engines, steam turbines, gas turbines, steam engines,
generators and electric motors as well as controlling panels and related installation.

(5)

injection equipment and accessories thereof, including water and gas injection as well as facilities for water and gas treatment.

(6)

downhole packers and downhole blowout preventors.

(7)

cranes, lifting equipment and tools.

(8)

oil (gas) transportation equipment, line pipes, and valves and pipe fittings thereof, equipment for pumping and boosting stations
and onshore terminal, and valves and pipe fittings thereof, including various kinds of pumps, equipment for liquid separating, heat-exchanging,
purifying, and compressing, various kinds of measuring, monitoring and parameter indicating meters, and various kinds of valves and
pipe fittings thereof, various kinds of electric instruments and cables.

B.

For automation, remote controlling and telemetering:

(1)

various kinds of installation and meters.

(2)

air-conditioning equipment.

III

Parts, components and materials verified and approved as necessary imports for manufacturing equipment and machinery in China for
the exploitation of offshore oil.

IV

The importation of the above-mentioned goods shall be subject to the verification and approval of the Ministry of Petroleum Industry.



 
The General Administration of Customs, the Ministry of Finance
1982-04-01

 







RESOLUTION OF THE FIFTH SESSION OF THE FIFTH NATIONAL PEOPLE’S CONGRESS

Category  NATIONAL FLAG, NATIONAL EMBLEM, CAPITAL, NATIONAL ANTHEM AND NATIONAL DAY Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1982-12-04 Effective Date  1982-12-04  


Resolution of the Fifth Session of the Fifth National People’s Congress

on the National Anthem of the People’s Republic of China

(Adopted on December 4, 1982)

    The Fifth Session of the Fifth National People’s Congress resolves to
readopt the March of the Volunteers as the national anthem of the People’s
Republic of China and revoke the decision on the national anthem of the
People’s Republic of China adopted at the First Session of the current
National People’s Congress on March 5, 1978.






PROVISIONS FOR THE USE OF CURRENCY IN CONTRIBUTING TAXES TO THE STATE AND IN SETTLEMENT ON ACCOUNTS WITH ENTERPRISES OR INDIVIDUALS RESIDING IN CHINA BY CHINESE-FOREIGN EQUITY JOINT VENTURES

The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance, the People’s Bank of China

Provisions for the Use of Currency in Contributing Taxes to the State and in Settlement on Accounts with Enterprises or Individuals
Residing in China by Chinese-foreign Equity Joint Ventures

The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance, the People’s Bank of China

February 24, 1983

(Issued by the Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance, the People’s Bank of China on February
24, 1983)

In accordance with the pertinent stipulations laid down in the “Law of Chinese-foreign Equity Joint Ventures” and “Interim Regulations
for Control of Foreign Exchange”, the currency used by Chinese-foreign equity joint ventures (hereinafter referred to as joint ventures)
in contributing taxes to the State and in settlement on accounts with enterprises or individuals residing in China is stipulated
as follows:

Article 1

Joint ventures shall contribute taxes and pay legitimate fees in Renminbi in all cases. No governmental organizations should accept
foreign currency of foreign exchange certificate paid by joint ventures. These taxes and fees include:

(1)

import and export duty;

(2)

industrial and commercial tax (industrial and commercial consolidated tax);

(3)

enterprise income tax and local surtax, income tax on remitted profit of the foreign participant;

(4)

urban real estate tax;

(5)

enterprise site use fee;

(6)

enterprise registration fee or enterprise registration alteration fee;

(7)

commodity inspection fee;

(8)

vehicle or vessel license fee;

(9)

road toll, harbour due;

(10)

individual income tax of foreign employees working in joint ventures.

Article 2

Renminbi shall be used in the settlement on accounts between joint ventures and enterprises or individuals residing in China. No enterprises
or individuals should accept foreign currency or foreign exchange certificate paid by joint ventures. These include:

(1)

fees charged for water, electricity and heating;

(2)

fees charged for domestic telephone calls, telexes, telegrams and other cost on communications;

(3)

domestic communications and transportation fees (including vehicle, ship and aircraft), personal service and other services;

(4)

payments by joint ventures on raw materials, fuels (coal, oil, gas), auxiliary equipment and other needed commodities supplied by
enterprises or individuals residing in China;

(5)

charges on manufactured or semi-manufactured goods sold by joint ventures to enterprises or individuals residing in China.

Article 3

As circumstances alter, either Renminbi or foreign currency shall be used in the settlement on accounts between joint ventures and
banks, insurance companies and foreign trade corporations.

(1)

Should joint ventures borrow loans in Renminbi from Bank of China residing in China, the repayment of the loans and interest shall
be in Renminbi. While the loans are in foreign currency the repayment shall be in foreign currency accordingly.

(2)

The insurance appropriate the joint ventures shall be furnished by Chinese insurance companies. Should the property of joint ventures
is insured in foreign currency, the insurance premium shall be paid in foreign currency. Should the property is insured in Renminbi,
the insurance premium shall be in Renminbi. The Chinese insurance companies shall settle the claims according to the currency used
by joint ventures.

(3)

In accordance with the Categories of Export Commodities defined by the Ministry of Foreign Economic Relations and Trade, in their
purchase of the needed raw material, accessories, auxiliary equipment or other commodities from the foreign trade corporations or
other enterprises authorized to handle import and export business, joint ventures should be granted approval from the Ministry of
Foreign Economic Relations and Trade. The buyers and sellers may settle the price and payment of accounts in foreign currency through
consultations. The two sides may also calculate the price in foreign currency but arrange the payment in Renminbi; Should joint ventures
sell their manufactured or semi-manufactured goods subject to the approval by the foreign trade department in charge to the foreign
trade corporations or other enterprises authorized to handle import and export business, the two sides may either settle payment
of accounts in foreign currency or calculate the price in foreign currency but arrange the payment in Renminbi.

Joint ventures shall pay the freight rate in foreign currency to the General Administration of Civil Aviation of China, foreign trade
transportation corporations, Chinese ocean shipping companies or other enterprises approved to engage in business on transportation
of import and export commodities.

Article 4

Except the undertakings of tourist hotel projects using foreign funds, capital construction units residing in China shall contract
to build projects for joint ventures on the payment term of Renminbi.

With the exception of the aforesaid stipulations, it is impossible to enumerate all payment items in economic transactions between
the joint ventures and institutions, enterprises (including joint ventures, enterprises with overseas Chinese capital, enterprises
with foreign capital) and individuals residing in China. However the principle in general is that all transactions and payments of
accounts undertaken in China shall be paid in Renminbi except those subject to be examined and approved by the foreign exchange control
department. Joint ventures shall not pay foreign currency or foreign exchange certificate to the aforesaid establishments.

These stipulations are applicable to the Chinese-foreign contractual joint ventures, cooperative exploration projects and enterprises
established in China with overseas Chinese capital or foreign capital.

The four Special Economic Zones of Shenzhen, Zhuhai and Shantou in Guangdong Province and Xiamen in Fujian Province may, with the
reference of these regulations, formulate feasible provisions in the light of specific local conditions.



 
The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Finance, the People’s Bank of China
1983-02-24

 







SUPPLEMENTARY PROVISIONS OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE TIME LIMITS FOR HANDLING CRIMINAL CASES

Category  LITIGATION Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  Invalidated
Date of Promulgation  1984-07-07 Effective Date  1984-07-07 Date of Invalidation  1997-01-01


Supplementary Provisions of the Standing Committee of the National People’s Congress Concerning the Time Limits for Handling Criminal
Cases



(Adopted at the Sixth Meeting of the Standing Committee of the Sixth

National People’s Congress, promulgated for implementation by Order No.15 of
the President of the People’s Republic of China on July 7, 1984, and effective
as of July 7, 1984) (Editor’s Note: These Provisions were annulled by the
Decision of the National People’s Congress on Amendments of the Criminal
Procedure Law of the People’s Republic of China promulgated on March 17, 1996
and effective as of January 1, 1997)

    The time limits for handling criminal cases prescribed by the Criminal
Procedure Law in the spirit of shortening the time limits as much as possible
and guaranteeing the citizens’ right of the person are both appropriate and
correct. The public security organs and judicial organs shall continue to
improve their work, raise the quality of case-handling and work efficiency,
conscientiously implement the time limits for case-handling prescribed by the
Criminal Procedure Law and, in a practical manner, strive to shorten the time
limits as much as possible. Meanwhile, the following supplementary provisions
are made in order to solve certain special, concrete problems which have
arisen in the process of implementation.

    1. In the event that major cases involving crimes committed by a group or
major and complex cases involving persons going from place to place committing
crimes cannot be concluded within the time limit for holding a defendant in
custody during investigation as stipulated in Paragraph 1 of Article 92 of the
Criminal Procedure Law, or within the time limit for trial in a case of first
instance as stipulated in Article 125, or within the time limit for trial in a
case of second instance as stipulated in Article 142, the time limit for
holding the defendant in custody during investigation may be extended by two
months upon approval or decision by the people’s procuratorates of provinces,
autonomous regions, or municipalities directly under the Central Government,
and the time limit for trial in cases of first and second instances may be
extended by one month upon approval or decision by the higher people’s courts
of provinces, autonomous regions, or municipalities directly under the Central
Government.

    2. In the event that major and complex criminal cases in remote areas with
extremely poor communications cannot be concluded within the time limit
stipulated in the Criminal Procedure Law for holding the defendant in custody
during investigation or within the time limit for trial in a case of first or
second instance, the time limit for case-handling may be appropriately
extended. The extension of the time limit for case-handling and the measures
for its examination and approval shall be dealt with in pursuance of item (1)
above.

    When the time limit for case-handling may be extended in remote areas with
extremely poor communications, such areas shall be designated by the standing
committees of the people’s congresses of the relevant provinces or autonomous
regions.

    3. If in the course of investigation the defendant is found to have
committed other serious crimes, supplementary investigation may be conducted
upon approval of or decision by the people’s procuratorate, and the time limit
for holding the defendant in custody during investigation may be calculated
anew.

    4. A defendant held in custody who is subject to investigation,
prosecution or trial in a case of first or second instance which cannot be
concluded within the time limit stipulated in the Criminal Procedure Law and
who, if permitted to obtain a guarantor pending trial or to live at home under
surveillance, will pose no threat to society may obtain a guarantor pending
trial or live at home under surveillance. The period during whicb he obtains a
guarantor pending trial or lives at home under surveillance shall not be
counted in the time limit for case-handling as stipulated in the Criminal
Procedure Law, but the hearing of the case shall not be suspended.

    5. In the event of a case of public prosecution reviewed and brought by
the people’s procuratorates and heard by a people’s court where the defendant
is not held in custody, the handling of the case is not subject to the
restriction of the time limits stipulated in Articles 97, 125 and 142 of the
Criminal Procedure Law, but the hearing of the case shall not be suspended.

    6. In the event a case of public prosecution over which a people’s
procuratorate or people’s court has jurisdiction is transferred, the time
limit for case-handling shall be reckoned from the date when the new
case-handling organ receives the case.

    7. In the event a people’s court has returned a case to a people’s
procuratorate for supplementary investigation, the latter sball complete the
supplementary investigation within one month. After supplementary
investigation has been completed and the case has been returned to the
people’s court, the court shall calculate anew the time limit for
case-hearing.

    8. Where a people’s court of second instance returns a case for retrial to
the people’s court which originally handled the case, the latter people’s
court shall calculate anew the time limit for case-hearing from the date it
receives the returned case.

    9. The time period during which a defendant undergoes examination for
determination of mental illness shall not be counted in the time limit for
case-handling.

    10. These Provisions shall go into effect on the day of their
promulgation.

    Appendix:
The Relevant Articles in the Criminal Procedure Law

    Article 92  The time limit for holding a defendant in custody during
investigation shall not exceed two months. If the circumstances of a case are
complex and the case cannot be concluded before the expiration of that period,
an extension of one month may be allowed with the approval of the people’s
procuratorate at the next higher level.

    In tbe event a particularly grave and complicated case still cannot be
concluded within the extension period provided in the preceding paragraph, the
Supreme People’s Procuratorate shall request the Standing Committee of tbe
National People’s Congress to approve a postponement of the hearing of the
case.

    Article 97  A people’s procuratorate shall make a decision within one
month on a case that a public security organ has transferred to it with a
recommendation to initiate a public prosecution or exempt it from prosecution;
an extension of half a month may be allowed for major and complicated cases.

    Article 125  A people’s court shall pronounce judgment on a case of public
prosecution within one month, or one and a half months at the latest, after
accepting it for trial.

    Article 142  A people’s court of second instance shall conclude the trial
of a case of appeal or protest within one month, or one and a half months at
the latest, after accepting it for trial.






PROVISIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON SANITATION OF FOOD FOR EXPORT (FOR TRIAL IMPLEMENTATION)

PROVISIONS ON ADMINISTRATION OF BUY AND SALE OF SPOT AND FORWARD FOREIGN EXCHANGE BY FINANCIAL INSTITUTES ON CLIENTS’ BEHALF

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-03-05 Effective Date  1988-03-05  


Provisions on Administration of Buy and Sale of Spot and Forward Foreign Exchange by Financial Institutes on Clients’ Behalf



(Approved by the State Council on December 13, 1987, promulgated by the

State Administration of Foreign Exchange Control on March 5, 1988)

    Article 1  These Provisions are formulated in order to guard against the
risks of foreign exchange rate, stabilize the costs of import and export trade
(including other foreign economic activities) and develop the businesses of
buy and sale of spot and forward foreign exchange.

    Article 2 The Bank of China may be entrusted to buy and sell spot and
forward foreign exchange by departments, organizations, enterprises,
institutions and other units (hereinafter referred to as the client) in the
territory of China.

    Other financial institutions intending to conduct the businesses mentioned
in the preceding paragraph shall be approved by the State Administration of
Foreign Exchange Control.

    Article 3  Buy and Sale of foreign exchange referred to in these
Provisions means the buy and sale conducted among various convertible
currencies.

    Article 4  The client intending to entrust the Bank of China or other
financial institutions approved by the State Administration of Foreign
Exchange Control (hereinafter referred to as the designated financial agency)
on its behalf to buy and sell spot and forward foreign exchange shall be
approved by the State Administration of Foreign Exchange Control or its local
departments except for the following two situations:

    1) Specialized banks, financial institutions and foreign invested
enterprises with foreign investment with approval to conduct foreign exchange
businesses, for their self-owned or self-raised capitals of foreign exchange,
may buy and sell spot or forward foreign exchange by themselves in the
international financial market or entrust the designated financial agencies
to handle such businesses.

    2) Other clients not stipulated in the above paragraph who borrow foreign
exchange in cash within or out of China and receive, with permission,
donated foreign exchange, upon the approval to open cash account of foreign
exchange in financial institutions within China, may entrust the designated
financial agencies to buy and sell on their behalf spot or forward foreign
exchange according to the foreign trade contracts or other economic agreements.

    Article 5  The principle of voluntariness shall be adhered to in the
transactions of buy and sale of spot and forward foreign exchange.

    Article 6  The designated financial agency which is entrusted by a client
to buy and sell spot and forward foreign exchange shall base the transaction
on the foreign trade contracts or economic agreements signed by the client,
but transactions entrusted by the financial institutions with approval to
conduct foreign exchange and enterprises with foreign investment are excepted.

    Article 7  When the designated financial agency is entrusted by a client
to buy and sell spot or forward foreign exchange, the client shall provide
performance guarantee. Mortgage of foreign exchange quota or advance payment
of performance bond in cash may be used as the performance guarantee.

    The letter of guarantee for RMB at equal value issued by the deposit
bank shall be simultaneously provided in case the foreign exchange quota is
mortgaged as guarantee.

    In case the foreign exchange quota is settled ahead of time into foreign
exchange in cash to pay the performance bond in advance, the settlement is
limited to using US dollar.

    Article 8  When a client buys and sells forward foreign exchange,
application and copies of trade contracts or other economic agreements shall
be submitted to the local department of foreign exchange control in accordance
with the stipulation of Article 6. After being examined and approved by the
department of foreign exchange control, the client may entrust the designated
financial agency to buy forward foreign exchange by presenting the approval
documents of the department of foreign exchange control.

    Article 9  In case the foreign exchange quota is settled ahead of time
into foreign exchange in cash to pay the performance bond in advance, the
department of foreign exchange control shall endorse the payment notice of
foreign exchange quota issued by the client with the date and its stamp and
shall deduct the foreign exchange ration. The client in the same city shall
within 3 working days after the date of the endorsement (7 working days for
the client in a different city) buy US dollars from the quota and deposit
them into the account of “specific guarantee deposit” in the designated
financial agency.

    In case the foreign exchange quota is mortgaged, the department of foreign
exchange control shall transfer the foreign exchange quota mortgaged by the
client to the account of foreign exchange quota in the designated financial
agency.

    In case the option transaction is entrusted by the client, only foreign
exchange quota can be mortgaged as guarantee, but the insurance premium of
option which should be paid upon conclusion of the transaction may be settled
in advance into foreign exchange in cash.

    Article 10  When the designated financial agency is entrusted to buy
and sell spot and forward foreign exchange, if the client uses the foreign
exchange quota to settle ahead of time into foreign exchange in cash and pay
the performance bond in advance for the transaction of forward foreign
exchange, the designated financial agency shall check and calculate through
the account of “specific guarantee deposit”; but if the client uses the cash
of foreign exchange originally owned to pay the performances bond in advance
for the transaction of forward foreign exchange, the designated financial
agency shall still check and calculate through the account of “guarantee
deposit”.

    Article 11  In case the date of import payment is behind the date of
delivery, if the foreign exchange quota is settled ahead of time into foreign
exchange in cash, designated financial agency shall re-deposit temporarily
the cash position derived from the delivery into the account of “specific
guarantee deposit”; and if the cash of foreign exchange originally owned
is used, the designated financial agency shall re-deposit the cash position
derived from the delivery into the account of “guarantee deposit”.

    Article 12  The authority to interpret these Provisions resides in the
State Administration of Foreign Exchange Control.

    Article 13  These Provisions shall enter into force as of the date of
promulgation.






CIRCULAR OF THE STATE COUNCIL CONCERNING THE ANNULMENT OF A PART OF REGULATIONS GOVERNING FOREIGN-RELATED MATTERS

Category  CATALOGUE OF INVALIDATED LAWS AND ADMINISTRATIVE REGULATIONS GOVERNING FOREIGN-RELATED MATTERS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-06-18 Effective Date  1988-06-18  


Circular of the State Council Concerning the Annulment of a Part of Regulations Governing Foreign-related Matters


Annex I  A CATALOGUE OF THE FIRST BATCH OF REGULATIONS GOVERNING
Annex II  A CATALOGUE OF THE FIRST BATCH OF REGULATIONS GOVERNING

(June 18, 1988)

    In order to speed up the implementation of the strategy for economic
development in the coastal areas, and to promote the development of
export-oriented economy in the coastal areas of our country, the departments
concerned under the State Council, in accordance with the planning and
requirements of the State Council for the sorting out of regulations governing
foreign-related matters, have undertaken the sorting out of the existing
administrative regulations as well as other regulatory documents (hereinafter
referred to as “the regulations”, for short), promulgated by the State Council
or promulgated with the approval of the State Council. At present, the first
batch of seventeen regulations, which have been sorted out and should be
annulled, have been re-examined, piece by piece, by the Leading Group under
the State Council for the Sorting Out of Regulations jointly with the Bureau
of Legislative Affairs of the State Council and by the State Council; and it
is decided to announce the annulment of the aforesaid regulations (See Annex I
for the post_titles of the aforesaid regulations).

    At the same time, the first batch of eleven regulations, which have become
invalid automatically, have also been sorted out and re-examined, piece by
piece, by the Leading Group under the State Council for the Sorting Out of
Regulations jointly with the Bureau of Legislative Affairs of the State
Council; and now these eleven invalid regulations (See Annex II for their
post_titles) are also included here as Annex II in order to help various regions
and departments concerned obtain an overall understanding of the condition of
those invalid regulations governing foreign-related matters, thereby
facilitating their work.

    Annex I: A Catalogue of the First Batch of Regulations Governing
Foreign-Related Matters Which Should Be Annulled (17 pieces)

    Annex II: A Catalogue of the First Batch of Regulations Governing
Foreign-Related Matters Which Have Become Invalid Automatically (11 pieces)

Annex I  A CATALOGUE OF THE FIRST BATCH OF REGULATIONS GOVERNING
FOREIGN-RELATED MATTERS WHICH SHOULD BE ANNULLED


—————————————————————————
|Serial|   The post_title of      | Organ  | Serial  |                        
|
|Number|                     |
and    | Number  |  Reasons for Annulment  |
|      |  the Regulations    | date of|  of    
|                        
|
|      |                    
| promul-| Outgoing|                        
|
|      |                    
| gation | Document|                        
|
|——|———————|——–|———|————————-|
|  1   | Interim Provisions  | Promul-| (1965)  | Relaced by “Approval    |
|      | of the State Council| gated  | State   | and Transmission by the |
|      | Concerning the      | on     | Council,|
State Council Concern-  |
|      | Unified Procedure   |November| No. 394 | ing a Report Submitted  |
|      | for the Price-making| 11,    |        
| by the State Administra-|
|      | of Export           | 1965   |        
| tion for Commodity      |
|      | Commodities         |        |        
| Prices Requesting In-   |
|      |                    
|        |         | structions on Several  
|
|      |                    
|        |         | Problems Concerning the |
|      |                    
|        |         | Price-making of Export  |
|      |                    
|        |         | Commodities” promulgated|
|      |                    
|        |         | by Document (1979)      |
|      |                    
|        |         | No.206 of the State    
|  
|      |                    
|        |         | Council on August 21,  
|
|      |                    
|        |         | 1979, and “Notice      
|
|      |                    
|        |         | Concerning the          |
|      |                    
|        |         | Strengthening of Control|
|      |                    
|        |         | of Purchasing Prices of |
|      |                    
|        |         | Export Commodities”    
|
|      |                    
|        |         | issued by Document      |

|      |                    
|        |         | (1987) No.492 of the    |
|      |                    
|        |         | Ministry of Foreign    
|
|      |                    
|        |         | Economic Relations and  |
|      |                    
|        |         | Trade and the State Ad- |
|      |                    
|        |         | ministration for Com-  
|
|      |                    
|        |         | modity Prices          
|
|——|———————|——–|———|————————-|
|  2   | Interim Provisions  | Promul-| (1974)  | Replaced by “The Law of |
|      | of the People’s     | gated  | State   | the People’s
Republic of|
|      | Republic of China   | by the | Council,| China Concerning the    |
|      | Concerning the      | State  | No. 11  |
Protection of Marine En-|
|      | Prevention of       | Council|        
| vironment”, promulgated |
|      | Pollution in the    | on     |        
| by the Standing         |
|      | Coastals Waters     | January|        
| Committee of the        |
|      |                    
| 30,1974|         | National People’s       |
|      |                    
|        |         | Congress on August 23,  |
|      |                    
|        |         | 1982                    |
|——|———————|——–|———|————————-|
|  3   | Provisions on       | Promul-| (1979)  | Replaced by “Provisions
|
|      | Several Ploblems    | gated  | State   | of the State
Council    |
|      | Concerning Vigorous | by the | Council,| Concerning the speeding |
|      | Development of      | State  | No. 202 | up and deepening
of the |
|      | Foreign Trade and   | Council|         |
Reform in the Systems   |
|      | Increase in Foreign | on     |        
| of Foreign Trade”, pro- |
|      | Exchange Earnings   | August |         |
mulgated by Document    |
|      |                    
|13, 1979|         | (1988) No. 12 of the    |
|      |                    
|        |         |  State Council on      
|
|      |                    
|        |         | February 26, 1988, and  |
|      |                    
|        |         | by other documents      |
|——|———————|——–|———|————————-|
|  4   | Trial Procedures    | Promul-| (1979)  | Replaced by “Procedures |
|      | for the Retention   | gated  | State   | for the Retention of
a  |    
|      | of a Portion of     | by the | Council,| Portion of Foreign      |

|      | Foreign Exchange    | State  | No. 202 | Exchange from Export    |
|      | from Export         | Council|        
| Commodities”, promul-   |
|      | Commodities         | on     |        
| gated by Document       |
|      |                    
| August |         | (1985) No. 43 of the    |
|      |                    
|13, 1979|         | State Council on        |  

|      |                    
|        |         | March 29, 1985          |

|——|———————|——–|———|————————-|
|  5   | Approval and Trans- |December| (1979)  | Replaced by “Notice of  |
|      | mission by the State| 21,    | State   | the State Council Con-  |
|      | Council Concerning  | 1979   | Council,| cerning the Approval and|
|      | the Procedures for  |        | No. 297 |
Transmission of Interim |
|      | the Handling of     |        |        
| Provisions of the State |
|      | Cases of Using      |        |        
| Planning Commission     |
|      | Foreign Loans in    |        |        
| Concerning the Improve- |
|      | the Introduction    |        |        
| ment of the Planning    |
|      | of Technology and   |        |        
| System”, promulgated    |
|      | the Importation of  |        |        
| by Document No. 138,    |
|      | Equipment for       |        |        
| (1984) of the State     |
|      | Carrying Out        |        |        
| Council on October 4,   |
|      | Capital Construction|        |        
| 1984, and also by       |
|      | Projects by Such    |        |        
| “Approval and           |
|      | Departments as      |        |        
| Transmission by the     |  
|      | Foreign Exchange,   |        |        
| State Council Concern-  |
|      | Finance, and        |        |        
| ing Suggestions Raised  |
|      | Planning  for       |        |        
| by the State Planning   |
|      | Capital Construction|        |        
| Comission on the        |
|      |                    
|        |         | Exploitation of        
|
|      |                    
|        |         | Foreign Loans”, promul- |
|      |                    
|        |         | gated by Document      
|
|      |                    
|        |         | No. 83 (1986) of the    |
|      |                    
|        |         | State Council on        |
|      |                    
|        |         | August 16, 1986        
|
|——|———————|——–|———|————————-|
|   6  | Approval and Trans- | June   | (1980)  | Replaced by “Notice of  |
|      | mission by the      | 30,    | State  
| the State Bureau of     |
|      | State Council       | 1980   | Council,| Foreign Expert
Affairs  |
|      | Concerning the      |        |
No. 151 | Concerning the Publica- |
|      | Summary of a        |        |        
| tion of `A Summary of a |
|      | National Forum on   |        |        
| National Conference on  |
|      | the Work of         |        |        
| the Work of Foreign Ex- |
|      | Foreign Experts in  |        |        
| perts in Culture and    |
|      | Cultural and        |        |        
| Education'” promulgated |
|      | Educational Work    |        |        
| by Document No. 78      |
|      |                    
|        |         | (1987) of the State    
|
|      |                    
|        |         | Bureau of Foreign Expert|
|      |                    
|        |         | Affairs on April 10,    |
|      |                    
|        |         | 1987                    |
|——|———————|——–|———|————————-|
|  7   | Notice of the State | June   | (1981)  | Replaced by “Notice of  |
|      | Council Concerning  | 3,     | State   | the State
Council       |
|      | Its Approval and    | 1981   | Council,| Concerning its Approval
|
|      | Transmission of “A  |        | No.97  
| and Transmission of the |
|      | Report Concerning   |        |        
| Suggestions Raised by   |
|      | How the present     |        |        
| the State planning      |
|      | Foreign Economic    |        |        
| Commission, the Economic|
|      | Relations and       |        |        
| Commission and the      |
|      | Trade Can Serve     |        |        
| Ministry of Foreign     |
|      | the Readjustment    |        |        
| Economic Relations and  |  
|      | of National         |        |        
| Trade Concerning        |
|      | Economy”, Submitted |        |        
| Division of Labour in   |
|      | by the State        |        |        
| the Work of Foreign     |
|      | Commission for      |        |        
| Economic Relations and  |
|      | Imports and Exports |        |        
| Trade”, Promulgated     |
|      |                    
|        |         | by Document No. 13      |
|      |                    
|        |         | (1983) of the State    
|
|      |      &n

MEASURES FOR MANAGEMENT OF FOUNDATIONS

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1988-09-27 Effective Date  1988-09-27  


Measures for Management of Foundations



(Adopted at the 21st Executive Meeting of the State Council

on September 9, 1988, promulgated by Decree No.18 of the State
Council of the People’s Republic of China on September 27, 1988)

    Article 1  These Measures are formulated in order to
strengthen the management of foundations so as to ensure their
healthy development.

    Article 2  “Foundations”, as referred to in these Measures,
means non-governmental and non-profit organizations which
conduct management of funds donated voluntarily by social
organizations or other organizations or individuals either
at home or abroad and which are legal person social
organizations.

    The purpose of foundations is to promote the development of
scientific research, cultural education, social welfare and
other public welfare undertakings through financial assistance.

    These Measures shall not apply to foundations established
with government appropriations for scientific research, nor to
organizations managing other types of special funds.

    Article 3  Foundations to be established must satisfy the
following requirements:

    (1) The nature and aim of the foundation and the source of
funds accord with the provisions of Article 2 of these Measures;

    (2) Have a registered capital of at least 100,000 RMB yuan
(or at least the equivalent of 200,000 RMB yuan in foreign
exchange);

    (3) Have a foundation constitution, management organization
and necessary financial personnel; and

    (4) Have a fixed working place.

    Article 4  Foundations may raise funds by soliciting
contributions from enterprises, institutions, social
organizations or other organizations or individuals either at
home or abroad who support the aims of the foundation, provided
that the contributions are made on a voluntary basis.
Apportionment is strictly prohibited.

    Article 5  The leading position of a foundation may not be
concurrently held by any active government personnel.

    Foundations shall carry out democratic management, institute
a strict system for the raising, use and management of funds and
publish a balance sheet regularly.

    Article 6  Foundation funds shall be used for those
activities and undertakings which accord with the aim of the
foundation and may not be appropriated for other purposes.
Foundations may not operate or manage enterprises.

    Article 7  Foundations may place their funds in interest-
bearing financial institutions, or may purchase bonds, stocks or
other securities provided that the amount of stocks purchased
from an enterprise shall not exceed 20 percent of the total stock
of the enterprise.

    Article 8  Foundations are enpost_titled to supervise those
accepting an offering of funds with regards to the use of the
funds. In the event that the foundation discovers that the use of
donated funds violates the agreement reached, the foundation is
enpost_titled to reduce or stop the offering of such funds, or to
recall funds already offered.

    Article 9  The salaries of personnel and the administrative
expenses of a foundation shall come from the interest income of
the foundations assets or the like.

    Article 10  Foreign exchange donated to a foundation from
abroad shall be owned by the foundation. Foundations are allowed
to open foreign exchange deposit accounts.

    Goods and materials donated to a foundation from abroad are
exempted from customs duty and shall be owned by the foundation;
foundations are enpost_titled to transfer those goods and materials
free of charge to assist organizations or individuals who are
associated with the aim of the foundation. Such goods and
materials may not be sold.

    Article 11  Application for the establishment of a foundation
shall be submitted to the People’s Bank of China for examination
and approval by the authoritative administrative department.
After examination and approval by the People’s Bank, the
foundation shall register with and obtain a license from the
civil administration department. Only after obtaining qualification
as a body corporate by going through the above procedures may a
foundation begin its activities.

    Application for the establishment of national foundations
shall be submitted to the People’s Bank of China for examination
and approval and shall apply to the Ministry of Civil Affairs for
registration, and then be submitted to the State Council for
filing. Application for the establishment of local foundations
shall be submitted to the local provincial, regional or municipal
branch of the People’s Bank of China for examination and approval
and shall apply for registration to the civil administration
department of the people’s government of that province,
autonomous region or municipality directly under the central
government, and then be submitted for filing to the people’s
government of that province, autonomous region or municipality
directly under the central government.

    Changes in name, merging or rescission of foundations shall
be handled in accordance with the procedures prescribed for their
establishment.

    Article 12  Foundations shall submit annual reports to the
People’s Bank of China and civil administration departments
concerning their revenues, expenditures and activities.
Foundations are subject to the supervision of the People’s Bank
and civil administration departments.

    If any foundation’s activities violate these Measures, the
People’s Bank is enpost_titled to stop payment, freeze foundation
funds and order a rectification; the civil administration
departments are authorized to issue penalties such as warnings
or revocation of the operational license.

    Article 13  The People’s Bank of China and the Ministry of
Civil Affairs shall implement these Measures. They may draw up
the necessary rules for implementation.

    Article 14  These Measures shall go into effect as of the
date of promulgation.






PROVISIONS CONCERNING THE PAYMENT OF ROYALTIES FOR THE EXPLOITATION OF OFFSHORE PETROLEUM RESOURCES

Category  FINANCE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-01-01 Effective Date  1989-01-01  


Provisions Concerning the Payment of Royalties for the Exploitation of Offshore Petroleum Resources



(Approved by the State Council on December 5, 1988, promulgated by Decree

No.1 of the Minister of Finance on January 1, 1989)

    Article 1  These Provisions are formulated in accordance with the
“Regulations of the People’s Republic of China on the Exploitation of Offshore
Petroleum Resources in cooperation with Foreign Enterprises”, in order to
promote the development of national economy, to expand international economic
and technological cooperation, and to encourage the exploitation of China’s
offshore petroleum resources.

    Article 2  All Chinese and foreign enterprises, which are engaged in the
exploitation of offshore petroleum resources pursuant to the law in the inland
sea, territorial sea and continental shelf of the People’s Republic of China
and in any other sea areas under the jurisdiction of the People’s Republic of
China, shall pay royalties in accordance with these Provisions.

    Article 3  Royalties shall be computed and imposed on the basis of the
gross output of crude oil or natural gas produced every calendar year from
each oil or natural gas field. The rates of the royalties are as follows:

    1. Crude oil

    the portion of annual gross output of crude oil not exceeding 1 million
tons, shall not be subject to the payment of royalties;

    for the portion of annual gross output of crude oil from 1 million to 1.5
million tons, the rate shall be 4%;

    for the portion of annual gross output of crude oil from 1.5 million to 2
million tons, the rate shall be 6%;

    for the portion of annual gross output of crude oil from 2 million to 3
million tons, the rate shall be 8%;

    for the portion of annual gross output of crude oil from 3 million to 4
million tons, the rate shall be 10%;

    for the portion of annual gross output of crude oil exceeding 4 million
tons, the rate shall be 12.5%.

    2. Natural gas

    the portion of annual gross output of natural gas not exceeding 2 billion
cubic meters, shall not be subject to the payment of royalties;

    for the portion of annual gross output of natural gas from 2 billion to
3.5 billion cubic meters, the rate shall be 1%;

    for the portion of annual gross output of natural gas from 3.5 billion to
5 billion cubic meters, the rate shall be 2%;

    for the portion of annual gross output of natural gas exceeding 5 billion
cubic meters, the rate shall be 3%.

    Article 4  The royalties for crude oil and natural gas shall be paid in
kind.

    Article 5  The royalties for crude oil and natural gas shall be levied
and administered by the tax authorities.

    With respect to the royalties of Chinese-foreign Cooperative oil or gas
fields, the operators shall act as agents for withholding the royalties, and
shall hand over the royalties withheld to China National Offshore Petroleum
Corporation, which, in turn, shall act as an agent for making the payment of
the royalties.

    Article 6  The royalties shall be computed annually and paid in advance
in installments either based on times or on terms; and the final settlement
shall be made after the end of the tax year. The time limits for advance
payment and final settlement shall be set by the tax authorities.

    Article 7  The oil or gas fields operators shall, within 10 days after the
end of each quarter, submit to the tax authorities a report on the output of
oil or gas fields and any other related materials required by the tax
authorities.

    Article 8  The withholding agents and paying agents with regard to the
royalties must, in accordance with the time limits set by the tax authorities,
pay the royalties. In case of failure to pay the royalties within the time
limits, the tax authorities shall impose a surcharge for overdue payment equal
to 1% of the overdue royalties for everyday in arrears, starting from the
first day the payment becomes overdue.

    Article 9  In the case that the oil or gas fields operators, in violation
of the provisions in Article 7, fail to submit on time to the tax authorities
the reports on output of oil or gas fields and other related materials
required by the tax authorities, the tax authorities may impose a fine in
light of the circumstances up to but not exceeding RMB 5,000 yuan; in dealing
with those who conceal the actual output, the tax authorities, in addition to
pursuing the royalties payment, may impose a fine, in light of the
circumstances, up to but not exceeding five times of the amount of royalties
that shall be made up.

    Article 10  The following terms, used in these Provisions, are defined
below:

    (1) Crude oil: refers to solid and liquid hydrocarbon in the natural
state as well as any liquid hydrocarbon extracted from natural gas, except
for methane ( CH4).

    (2) Natural gas: refers to non-associated natural gas and associated
natural gas in the natural state.

    Non-associated natural gas: refers to all gaseous hydrocarbon extracted
from gas deposits, including wet gas, dry gas, and residual gas remaining
after the extraction of liquid hydrocarbon from wet gas.

    Associated natural gas: refers to all gaseous hydrocarbon extracted from
oil deposits simultaneously with crude oil, including residual gas remaining
after the extraction of liquid hydrocarbon.

    (3) Annual gross output of crude oil: refers to the total amount of crude
oil produced by each oil or gas field in the same contracted area, in one
calendar year, less the quantity of oil used for petroleum operations and that
of wasted.

    (4) Annual gross output of natural gas: refers to the total amount of
natural gas produced by each oil or gas field in the same contracted area, in
one calendar year, less the quantity of natural gas used for petroleum
operations and that of wasted.

    Article 11  These Provisions shall become effective as of January 1, 1989.






CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON ADJUSTMENT OF THE PROVISIONS CONCERNING PERSONNEL SENT ABROAD ON OFFICIAL DUTY

Category  MISCELLANEOUS ADMINISTRATION AFFAIRS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1989-08-28 Effective Date  1989-09-10  


Circular of the General Office of the State Council on Adjustment of the Provisions Concerning Personnel Sent Abroad on Official
Duty

(August 28, 1989)

    The Circular is hereby issued concerning the decision of the State Council
to carry out adjustment of the provisions concerning personnel who are sent
abroad on official duty, in order to strengthen the control of imported
articles whose importation is under restriction by the state, to check the
indiscriminate sending of personnel and groups abroad, and to promote the
development of an honest and incorruptible atmosphere among government
functionaries.

    1. The existing provision shall be abolished which permits personnel to be
sent abroad on official duty to exchange a small amount of Renminbi (RMB) for
free foreign currencies.

    2. The existing provision shall be abolished which permits personnel sent
abroad on official duty, to bring, every three months, into the country from
abroad duty-free a total of two articles, one selected from Category 4 and the
other from Category 5 in “A Table of Restricted Quantities for Articles to be
Carried into the Country by the Personnel Going Abroad”, as promulgated by the
Customs; the amended provisions now stipulates that those who have been abroad
for full six months (i.e. 180 days) shall be permitted to bring into the
country duty-free a total of two articles, one from Category 4 and the other
from Category 5, but the highest number of years prescribed for this
preferential treatment shall not be exceeded.

    3. Beginning from September 10, 1989, all personnel sent abroad on
official duty shall have to act strictly on the amended provisions as
afore-mentioned in this Circular.

    Corresponding administrative procedures shall be formulated by the
Ministry of Finance, the General Administration of Customs and the State
Administration of Foreign Exchange Control.






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...