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SUPPLEMENTARY PROVISIONS ON ACCOUNTING FOR FOREIGN CURRENCY TRANSACTIONS BY JOINT VENTURES USING CHINESE AND FOREIGN INVESTMENT

STANDARDIZATION LAW

Category  TECHNOLOGICAL CONTROL Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1988-12-29 Effective Date  1989-04-01  


Standardization Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Formulation of Standards
Chapter III  Implementation of Standards
Chapter IV  Legal Responsibility
Chapter V  Supplementary Provisions

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

National People’s Congress on December 29, 1988, promulgated by Order No. 11
of the President of the People’s Republic of China on December 29, 1988, and
effective as of April 1, 1989)
Contents

    Chapter I    General Provisions

    Chapter II   Formulation of Standards

    Chapter III  Implementation of Standards

    Chapter IV   Legal Responsibility

    Chapter V    Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is formulated with a view to developing the socialist
commodity economy, promoting technical progress, improving product quality,
increasing social and economic benefits, safeguarding the interests of the
State and the people and suiting standardization to the needs in socialist
modernization and in the development of economic relations with foreign
countries.

    Article 2  Standards shall be formulated for the following technical
requirements that need to be unified:

    (1) the varieties, specifications, quality and grades of industrial
products as well as the safety and sanitary requirements for them;

    (2) the design, production, inspection, packing, storage, transportation
and methods of operation of industrial products as well as the safety and
sanitary requirements for them in the process of production, storage and
transportation;

    (3) technical requirements and testing methods related to environmental
protection;

    (4) the designs, construction procedure and safety requirements for
construction projects; and

    (5) technical terms, symbols, code names and drawing methods related to
industrial production, project construction and environmental protection.

    Major agricultural products and other items that need to be standardized
shall be designated by the State Council.

    Article 3  The tasks of standardization shall include the formulation of
standards and organization of and supervision over the implementation of the
standards.

    Standardization shall be incorporated in the plan for national economic
and social development.

    Article 4  The State shall encourage the active adoption of international
standards.

    Article 5   The department of standardization administration under the
State Council shall be in charge of the unified administration of
standardization throughout the country. Competent administrative authorities
under the State Council shall, in line with their respective functions, be
in charge of standardization in their respective departments and trades.

    The departments of standardization administration of provinces, autonomous
regions and municipalities directly under the Central Government shall be in
charge of the unified administration of standardization within their
respective administrative areas. Competent administrative authorities under
the governments of provinces, autonomous regions and municipalities directly
under the Central Government shall, in line with their respective functions,
be in charge of standardization in their respective departments and trades
within their respective administrative areas.

    The standardization administration departments and the competent
administrative authorities of cities and counties shall, in line with their
respective functions as assigned by the governments of provinces, autonomous
regions and municipalities directly under the Central Government, be in charge
of standardization within their respective administrative areas.
Chapter II  Formulation of Standards

    Article 6  National standards shall be formulated for the technical
requirements that need to be unified nationwide. National standards shall be
formulated by the department of standardization administration under the State
Council. Where, in the absence of national standards, technical requirements
for a certain trade need to be unified, trade standards may be formulated.
Trade standards shall be formulated by competent administrative authorities
under the State Council and reported to the department of standardization
administration under the State Council for the record, and shall be annulled
on publication of the national standards. Where, in the absence of both
national and trade standards, safety and sanitary requirements for industrial
products need to be unified within a province, an autonomous region or a
municipality directly, under the Central Government, local standards may be
formulated. Local standards shall be formulated by departments of
standardization administration of provinces, autonomous regions and
municipalities directly under the Central Government and reported to the
department of standardization administration and the competent
administrative authorities under the State Council for the record, and shall
be annulled on publication of the national or trade standards.

    Where, in the absence of both national and trade standards for products
manufactured by an enterprise, standards for the enterprise shall be
formulated to serve as the criteria for the organization of production. An
enterprise’s standards for its products shall be reported to the
standardization administration department and the competent administrative
authorities under the local government for the record. Where national or
trade standards have been formulated, the State shall encourage enterprises
to formulate their enterprise standards, which are more stringent than the
national or trade standards, to be used in these enterprises.

    Where the formulation of standards is otherwise provided for by law, such
legal provisions shall be complied with.

    Article 7  National standards and trade standards shall be classified
into compulsory standards and voluntary standards. Those for safeguarding
human health and ensuring the safety of the person and of property and those
for compulsory execution as prescribed by the laws and administrative rules
and regulations shall be compulsory standards, the others shall be voluntary
standards.

    The local standards formulated by standardization administration
departments of provinces, autonomous regions and municipalities directly
under the Central Government for the safety and sanitary requirements of
industrial products shall be compulsory standards within their respective
administrative area.

    Article 8  The formulation of standards shall be conducive to ensuring
safety and the people’s health, safeguarding consumer interests and
protecting the environment.

    Article 9  The standards to be formulated shall be conducive to a
rational use of the country’s resources, a wider utilization of scientific
and technological gains and the enhancement of economic returns, conform to
operation instructions, increase the universality and interchangeability of
products, and be technologically advanced and economically rational.

    Article 10  The standards to be formulated shall be coordinated with and
supported by related standards.

    Article 11  The standards to be formulated shall help promote economic
and technological cooperation with foreign countries and foreign trade.

    Article 12  The roles of trade associations, scientific research
institutions and academic organizations shall be brought into play in the
formulation of standards.

    A department engaged in the formulation of standards shall organize a
committee on standardization technology composed of specialists, which shall
be responsible for the drafting of the standards and shall participate in the
examination of the draft standards.

    Article 13  After the standards come into force, the department that
formulated them shall, in the light of scientific and technological
developments and the needs in economic construction, make timely reviews of
the current standards to determine if they are to remain effective or are to
be revised or annulled.
Chapter III  Implementation of Standards

    Article 14  Compulsory standards must be complied with. It shall be
prohibited to produce, sell or import products that are not up to the
compulsory standards. With regard to voluntary standards, the State shall
encourage their adoption by enterprises on an optional basis.

    Article 15  With respect to products for which national or trade standards
have been formulated enterprises may apply to the standardization
administration department under the State Council or agencies authorized by
the same department for product quality authentication. For products which
are authenticated to conform to the standards, certificates shall be issued
by the department that made the authentication and the use of the prescribed
authentication marks shall be permitted on such products and the packing
thereof.

    If products for which authentication certificates have been granted do
not conform to national or trade standards, or if products have not undergone
authentication or found not up to the standards after the authentication
proceedings, no authentic marks shall be permitted for use on such products
leaving factories for sale.

    Article 16  Technical requirements for export products shall comply with
contractual provisions.

    Article 17  The development of new products, improvement of products
or technical renovation by an enterprise shall conform to standardization
requirements.

    Article 18  Departments of standardization administration under
governments at or above the county level shall be responsible for supervision
over and inspection of the implementation of the standards.

    Article 19  Departments of standardization administration under
governments at or above the county level may, in accordance with needs,
establish inspection organizations or authorize inspection organizations of
other units to examine whether products conform to the standards. Where the
laws and administrative rules and regulations provide otherwise on inspection
organizations, such provisions shall apply.

    Disputes over whether a product conforms to the standards shall be
handled in accordance with the inspection data provided by the inspection
organizations as specified in the preceding paragraph.
Chapter IV  Legal Responsibility

    Article 20  Whoever produces, sells or imports products that do not
conform to the compulsory standards shall be dealt with according to law by
the competent administrative authorities as prescribed by the laws and
administrative rules and regulations. In the absence of such prescriptions,
his products and unlawful proceeds shall be confiscated and he shall be
concurrently fined by the administrative authorities for industry and
commerce; where serious consequences are caused and crimes are constituted,
the person directly responsible shall be investigated for criminal
responsibility in accordance with the law.

    Article 21  Where authentication marks are used on products leaving a
factory for sale, for which authentication certificates have been issued but
which do not conform to national or trade standards, the enterprise concerned
shall be ordered by the department of standardization administration to stop
the sale and shall be fined concurrently; where the circumstances are serious,
the authentication certificates shall be revoked by the department that made
the authentication.

    Article 22  Whoever uses authentication marks, without authorization,
on products leaving a factory for sale, which have not undergone
authentication or have been found not up to the standards after the
authentication proceedings, shall be ordered by the department of
standardization administration to stop the sale and shall concurrently be
fined.

    Article 23  A party which refuses to accept the punishment of
confiscation of its products and of its unlawful proceeds and a fine may,
within 15 days of receiving the penalty notice, apply for reconsideration to
the office immediately above the one that made the punishment decision; a
party which refuses to obey the reconsideration decision may, within 15 days
of receiving the reconsideration decision, bring a suit before a people’s
court. The party also may, within 15 days of receiving the penalty notice,
directly bring a suit before a people’s court. If a party neither applies
for reconsideration nor brings a suit before a people’s court within the
prescribed time nor complies with the punishment decision, the office that
made the punishment decision shall apply to a people’s court for compulsory
execution.

    Article 24  Personnel responsible for the supervision, inspection and
administration of standardization who violate the law or neglect their
duties, or are engaged in malpractices for personal gains, shall be given
disciplinary sanctions; where crimes are constituted, their criminal
responsibility shall be investigated in accordance with the law.
Chapter V  Supplementary Provisions

    Article 25  Rules for the implementation of this Law shall be formulated
by the State Council.

    Article 26  This Law shall go into effect as of April 1, 1989.

                                                                                  





CONSITUTION AMENDMENT

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

     (Effective Date:1988.04.12–Ineffective Date:)

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

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

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

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

    





REGULATIONS FOR CONTROLLING THE REGISTRATION OF ENTERPRISES AS LEGAL PERSONS

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


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

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

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

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

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

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

    (1) enterprises owned by the whole people;

    (2) enterprises under collective ownership;

    (3) jointly operated enterprises;

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

    (5) privately operated enterprises;

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

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

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

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

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

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

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

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

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

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

    (1) name, organization and articles of association;

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

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

    (4) ability to bear civil liabilities independently;

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (3) its articles of association;

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

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

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

    (7) other relevant papers and certificates.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (6) engaging in illegal business operations.

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

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

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

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

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

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

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

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

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

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

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

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





INTERIM REGULATIONS ON STAMP TAX

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


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


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

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

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

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

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

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

    (2) documents for transfer of property rights;

    (3) business account books;

    (4) certificates evidencing rights or licences; and

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Appendix: Stamp Tax Schedule of Tax Items and Tax Rates

    Stamp Tax Schedule of Tax Items and Tax Rates


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

REGULATIONS ON PREVENTION AND CURE OF AMBIENT NOISE POLLUTION

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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





INTERIM PROVISIONS GOVERNING NON-SCHEDULED FLIGHTS IN CIVIL AIR TRANSPORT

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


Interim Provisions Governing Non-scheduled Flights in Civil Air Transport



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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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





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

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


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



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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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





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

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


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



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

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

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

    Article 2  Definitions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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





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

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


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    (1) 70 years for residential purposes;

    (2) 50 years for industrial purposes;

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

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

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

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

    (1) by reaching an agreement through consultations;

    (2) by invitation to bid; or

    (3) by auction.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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





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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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