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INTERIM PROVISIONS ON BOARDS OF SUPERVISORS IN SOLELY STATE-OWNED COMMERCIAL BANKS

Category  BANKING Organ of Promulgation  The State Council Status of Effect  Invalidated
Date of Promulgation  1997-11-12 Effective Date  1997-11-12 Date of Invalidation  2000-03-15


Interim Provisions on Boards of Supervisors in Solely State-owned Commercial Banks



(Approved by the State Council on October 20, 1997 and promulgated

by Decree No. 3 of the People’s Bank of China on November 12, 1997) (Editor’s
Note: These Regulations have been annulled by the Board of Supervisors of Key State-Owned Financial Institutions> promulgated  
on March 15, 2000)

    Article 1  These Provisions are formulated in accordance with the
Commercial Bank Law of the People’s Republic of China and the Regulations on
Supervision and Management of State-owned Enterprises Property and for the
purpose of deepening the reform of the banking system, establishing boards of
supervisors in solely state-owned commercial banks and perfecting the
supervision mechanism in solely state-owned commercial banks.

    Article 2  A board of supervisors in any solely state-owned commercial
bank (hereinafter referred to as “a board of supervisors”) is an organization
that, stationed by the People’s Bank of China in a solely state-owned
commercial bank under the authorization of the State Council, exercises
supervision over the assets quality and conditions of preservation and
appreciation of the value of state-owned assets in the solely state-owned
commercial bank.

    Article 3  The main responsibilities of a board of supervisors are as
follows:

    (1) examining the financial statements of the solely state-owned
commercial bank and supervising and evaluating the quality of credit assets,
ratio management between assets and debts and the conditions of preservation
and appreciation of the value of state-owned assets in the solely state-owned
commercial bank;

    (2) carrying out supervision and evaluation of the business performance of
the chairman or president of the solely state-owned commercial bank and
proposing for his or her appointment and relief of the post, rewards and
penalties;

    (3) carrying out supervision over acts of the chairman or president who
performs the functions of the solely state-owned commercial bank and, may
require him or her to make corrections if he or she commits acts violating
laws, administrative regulations or rules of the bank; and

    (4) when necessary, proposing a meeting of the board of directors or of
high-ranking managerial staff of the solely state-owned commercial bank to
discuss major problems in operations and management.

    Article 4  A board of supervisors shall be responsible to the People’s
Bank of China and report on its work to the People’s Bank of China at regular
intervals.

    The People’s Bank of China should report on the work of boards
of supervisors to the State Council at regular intervals.

    Article 5  A board of supervisors shall be composed of the following
members:

    (1) one representative from the People’s Bank of China;

    (2) one representative each from the Ministry of Finance, the State
Economic and Trade Commission, the National Audit Administration and the
State Administration of State Assets;

    (3) one or two representatives from staff members of the solely
state-owned commercial bank; and

    (4) one or two experts in economics or law.

    Article 6  Any supervisor of a solely state-owned commercial bank should
fulfil the following requirements:

    (1) impartial and honest, faithful in the discharge of his duties and free
of violation of laws or discipline on record;

    (2) having an educational background of a graduate from economic or law
faculty of a university or above and engaged in economic or legal work for
more than 10 years;

    (3) having an excellent understanding of macro-policies, comprehensive
mastery of knowledge in the field of banking, financial accounting and law and
rich experiences in theory and practice of economic management; and

    (4) other requirements stipulated by the People’s Bank of China.

    Article 7  Representatives from the different departments in a board of
supervisors shall be nominated by these departments and appointed by the
People’s Bank of China upon verification of their qualifications.

    Representatives from staff members of a solely state-owned commercial bank
in its board of supervisors shall be elected democratically by staff members
of the bank and appointed by the People’s Bank of China upon verification of
their qualifications.

    Experts in economics or law in a board of supervisors shall be recommended
by the relevant departments and units and appointed by the People’s Bank of
China upon verification of their qualifications.

    The People’s Bank of China shall submit the list of members of the board
of supervisors to the State Council for the record.

    Article 8  The chairman of a board of supervisors shall be nominated from
among the supervisors by the People’s Bank of China and submitted to the State
Council for the appointment.

    Article 9  The chairman of a board of supervisors holds a full-time
position and other supervisors on the board hold part-time positions.

    Article 10  The high-ranking managerial staff and the person in charge of
financial affairs in a solely state-owned commercial bank shall not
concurrently serve as supervisors of their own bank.

    Article 11  The term of office of a supervisor shall be three years. A
supervisor may, if approved through verification by the People’s Bank of China
upon the expiration of the term of office, serve consecutive terms but shall
serve no more than two consecutive terms.

    Article 12  If the chairman of a board of supervisors no longer meets the
requirements for the position before the expiration of the term of office, the
People’s Bank of China shall report to the State Council for relief of the
post.

    If any other supervisor on a board of supervisors no longer meets the
requirements for the position before the expiration of the term of office, the
People’s Bank of China shall remove him or her from office upon verification
and report to the State Council for the record.

    Article 13  The meeting of a board of supervisors shall be convened once
a quarter. Upon proposal made by the chairman of the board of supervisors or
one-third or more of supervisors, an interim meeting may be convened.

    Article 14  The meeting of a board of supervisors can be held only if
two-thirds or more of the supervisors are present.

    Any resolution of a board of supervisors becomes effective with the
consent of more than half of all the supervisors.

    Article 15  The chairman of a board of supervisors may attend major
working meetings convened by the People’s Bank of China.

    Article 16  Members of a board of supervisors have the following rights
for the performance of functions and responsibilities:

    (1) attending major working meetings and business meetings convened by
the solely state-owned commercial bank, and understanding and mastering in
time related economic and financial policies;

    (2) consulting financial accounts and related information of the solely
state-owned commercial bank;

    (3) addressing inquiries to high-ranking managerial staff and relevant
professionals of the solely state-owned commercial bank; and

    (4) putting forth proposals for the operations and management of the
solely state-owned commercial bank.

    Article 17  Members of a board of supervisors shall not reveal business
secrets of the solely state-owned commercial bank.

    Article 18  Neither a board of supervisors nor its supervisors have the
right to interfere with autonomous management of the solely state-owned
commercial bank.

    Article 19  With the exception of the representative(s) appointed as a
supervisor(s) from among staff members of a solely state-owned commercial
bank, no other member of the board of supervisors shall accept remuneration
of the solely state-owned commercial bank.

    Article 20  The People’s Bank of China shall bear the expenses necessary
for the performance of functions and responsibilities of a board of
supervisors.

    Article 21  Matters related to a board of supervisors not stipulated in
these Provisions shall be handled in accordance with the relevant provisions
of the Regulations on Supervision and Management of State-owned Enterprises
Property.

    Article 22  The People’s Bank of China shall be responsible for
organizing the implementation of these Provisions.

    Article 23  These Provisions shall enter into force as of the date of
promulgation.





OFFICIAL REPLY OF THE STATE COUNCIL CONCERNING THE CATALOGUE OF THE NATIONAL PROTECTED KEY WILD PLANTS (THE FIRST BATCH)

Category  ENVIRONMENTAL PROTECTION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-09-09 Effective Date  1999-09-09  


Official Reply of the State Council Concerning the Catalogue of the National Protected Key Wild Plants (the First Batch)


State Forestry Administration and the Ministry of Agriculture:    The State Council approves the Catalogue of the National Protected Key
Appendix: The Catalogue of the National Protected Key Wild Plants

(Approved by the Document No.92[1999] of the State Council on August 4,

1999, promulgted by Decree No. 4 of the State Forestry Administration and
the Ministry of Agriculture on Septomber 9, 1999)

State Forestry Administration and the Ministry of Agriculture:    The State Council approves the Catalogue of
the National Protected Key
Wild Plants (the First Batch) and this Catalogue shall be promulgated and
implemented jointly by you.

Appendix: The Catalogue of the National Protected Key Wild Plants
(the First Batch)

         SCIENTIC  NAMENS                  
PROTECTED  CLASSES

                                            
CLASS I   CLASS II

         Pteridophytes

Angiopteridaceae                                        

  Angiopteris sparsisora                                  II    

  Archangiopteris bipinnata                              
II    

  Archangiopteris henryi                                  II    

                                                  
Aspleniaceae                                            

  Phyllitis japonica                                      II    

                                                  
Athyriaceae                                            

  Cystoathyrium chinense                        I

                                                  
Blechnaceae                                            

  Brainea insignis                                        II

                                                  
Christenseniaceae                                      

  Christensenia assamica                                  II

                                                        

                                                  
Cyatheaceae spp.                                          II

                                                        
Dicksoniaceae spp.                                        II

Dryopteridaceae                                        

  Cyrtomium hemionitis                                    II

  Sorolepidium glaciale                        
I

                                                        

Helminthostachyaceae                                    

  Helminthostachys zeylanica                              II

                                                        

Isoetaceae                                              

  Isoetes spp.  *                              
I

                                                  
Parkeriaceae                                            

  Ceratopteris spp.  *                                    II

         SCIENTIC  NAMENS                  
PROTECTED  CLASSES

                                            
CLASS I   CLASS II


Platyceriaceae                                          

  Platycerium wallichii                                  
II

                                                  
Polypodiaceae                                          

   Neocheiropteris palmatopedata                          II

Sinopteridaceae                                        

   Sinopteris grevilleoides                              
II

      Gymnospermae                            

Cephalotaxaceae                                        

   Cephalotaxus lanceolata                                II

   Cephalotaxus oliveri                                  
II

                                                        
Cupressaceae                                            

  Calocedrus macrolepis                                  
II

  Chamaecyparis formosensis                              
II

  Cupressus chengiana                                    
II

  Cupressus gigantea                            I

  Fokienia hodginsii                                      II

  Thuja koraiensis                                        II

                                                  
Cycadaceae                                              

  Cycas spp.                                    I

                                                  
Ginkgoaceae                                    
I

  Ginkgo biloba                                
I

                                                  
Pinaceae                                                

   Abies beshanzuensis                          I

   Abies chensiensis                                      II

   Abies fanjingshanensis                      
I

   Abies yuanbaoshanensis                      
I

   Abies ziyuanensis                            I

   Cathaya argyrophylla                        
I

   Keteleeria davidiana var. formosana                    II

   Keteleeria hainanensis                                
II

         SCIENTIC  NAMENS                  
PROTECTED  CLASSES

                                            
CLASS I   CLASS II

Keteleeria pubescens                                    
II
Larix chinensis                                          II
Larix mastersiana                                        II
Picea brachytyla var. complanata                        
II
Picea neoveitchii                                        II
Pinus densiflora var. dabeshanensis                      II
Pinus fenzeliana var. dabeshanensis                      II
Pinus koraiensis                                        
II
Pinus kwangtungensis                                    
II
Pinus squamata                                
I
Pinussylvestris var. sylvestriformis            I
Pinus wangii                                            
II
Pseudolarix amabilis                                    
II
Pseudotsuga spp.                                        
II

                                                  
Taxaceae                                              

  Amentotaxus formosana                        
I

  Amentotaxus yunnanensis                      
I

  Pseudotaxus chienii                                    
II

  Taxus spp.                                    I

  Torreya spp.                                            II

                                                  
Taxodiaceae                                            

   Glyptostrobus pensilis                      
I

   Metasequoia glyptostroboides                
I

   Taiwania cryptomerioides                              
II

      Angiospermae                    


Acanthochlamydaceae                                    

   Acanthochlamys bracteata                              
II

                                                  
Aceraceae                                              

   Acer catalpifolium                                    
II

   Acer yangjuechi                                        II

         SCIENTIC  NAMENS                  
PROTECTED  CLASSES

                                            
CLASS I   CLASS II

   Dipteronia dyerana                                    

                                                    
Alismataceae                                              

  Ranalisma rostratum   *                      
I

  Sagittaria natans     *                                
II

                                                    
Apocynaceae                                            

  Parepigynum funingense                                  II

  Rauvolfia serpentina                                    II

                                                    

MEASURE FOR PUNISHING ILLEGAL BANKING ACTIVITIES

Category  BANKING Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-02-22 Effective Date  1999-02-22  


Measure for Punishing Illegal Banking Activities


Attachment: The Relevant Provisions in the Criminal Law

(Adopted at the 13th Executive Meeting of the State Council on January 14, 1999, and promulgated by Decree No. 260 of the State Council of the People’s Republic of China
on February 22, 1999)

    Article 1  These Measures are enacted for the purpose of punishing illegal banking activities, maintaining banking order, and preventing
banking risks.

    Article 2  If a banking institution violates the provisions on banking control of the State, and the relevant laws and administrative
regulations contain penal provisions, the banking institution shall be punished according to the said provisions; if the relevant
laws and administrative regulations do not contain penal provisions, the banking institution shall be punished according to these
Measures.

    The term “banking institution” in these Measures means the financial institutions that are legally established
and engaged in banking business within the territory of the People’s Republic of China, and includes banks, credit cooperatives,
finance companies, trust and investment companies, lease financing companies, etc.

    Article 3  Administrative sanctions stipulated in these Measure shall be decided by the People’s Bank of China; however, the administrative
sanctions stipulated in Article 24 and Article 25 of these Measures shall be decided by the foreign exchange control department of
the State.

    Disciplinary sanctions stipulated in these Measures, including warning, recording of a demerit, recording
of a major demerit, demotion, removal from post, placement on probation and dismissal, shall be decided by the employing banking
institution or the banking institution at a higher level.

    Any employee of a banking institution who has been subjected to the disciplinary sanction of dismissal according
to these Measures shall not work in any banking institution again, and the People’s Bank of China shall notify all banking institution
that he or she may not be employed and publish an announcement to that effect in national newspapers. With respect to a senior management
employee of a banking institution who has been subjected to the disciplinary sanction of removal from his or her post in accordance
with these Measures, the people’s bank of China shall decide that he or she may not, for a set period of time or ever again, hold
senior management post or a post equivalent to his or her former post in any banking institution, and it shall notify all banking
institution that he or she may not be employed and publish an announcement to that effect in national newspapers.  

    The term “senior management employees” in these Measures means legal representatives of banking institutions
and other principal persons in charge, including the chairmen of the board of directors, vice chairmen of the board of directors,
bank managers, deputy bank managers, heads and deputy heads of banks and their branches;

    The chairmen of administrative board, vice chairmen of administrative board, heads and deputy heads of credit
cooperatives; and the chairmen of the board of directors, vice-chairmen of the board of directors, general managers, deputy general
managers, etc. of banking institutions such as finance companies, trust and investment companies, lease financing companies, etc.

    Article 4  Any employee of a banking institution who, after leaving a banking institution, is found to have violated the provisions
on banking control of the State during the period of working in the banking institution, shall be investigated for liability according
to law.

    Article 5  The establishment, merger or closure of branches or representative offices by banking institutions shall be subject to
the approval of the People’s Bank of China.

    A banking institution that establishes, mergers or closes a branch or representative office without the approval
of the People’s Bank of China shall be given a warning, and fined not less than 300,000 yuan but not more than 50,000 yuan; the senior
management employees directly responsible of the said banking institution shall be given a disciplinary sanction ranging from removal
from their posts to dismissal.

    Article 6  With respect to any one of the following circumstances, a banking institution shall apply to the People’s Bank of China
for approval:

    (1) makes a change to its name;

    (2) makes a change to its registered capital;

    (3) makes a change to its location;

    (4) makes a change in its senior management employees; or

    (5) makes other changes stipulated by the People’s Bank of China.

    If a banking institution under any one of the circumstances mentioned in the preceding paragraph does not
apply to the People’s Bank of China for approval, the institution shall be given a warning and fined not less than 10,000 yuan but
not more than 100,000 yuan; under the circumstances prescribed in the fourth item of the preceding paragraph, the senior management
employees of the banking institution who are directly responsible shall be given disciplinary sanctions ranging from removal from
their posts to dismissal.

    Article 7  Any banking institution that alters shareholders, transfers stock ownership or adjusts stock structure shall apply to
the People’s Bank of China for approval; a banking institution that involves a change in State-owned stock shall apply to finance
departments for approval according to relevant provisions.

    Any banking institution that alters shareholders, transfers stock ownership, or adjusts stock structure without
legal approval shall be given a warning, have illegal income confiscated, and have a fine of not less than one time but not more
than three times illegal income imposed, or have a fine of not less than 50,000 yuan but not more than 300,000 yuan imposed if there
is no illegal income; the senior management employees of the banking institution who are directly responsible shall be given disciplinary
sanctions ranging from removal from their posts to dismissal.

    Article 8  Banking institution may not make sham capital contributions or surreptitiously withdraw contributed capital.

    A banking institution making a sham capital contribution or surreptitiously withdrawing its capital contributions
shall be ordered to suspend businesses and carry out rectification and fined not less than five percent but not more than ten percent
of the amount of the sham capital contribution or the surreptitiously withdrawn capital contribution. The banking institution’s senior
management employees directly responsible shall be subjected to the disciplinary sanction of dismissal, and the other persons in
charge who are directly responsible and other directly responsible persons shall be subjected to disciplinary sanctions ranging from
recording of a demerit to dismissal. If the case is serious, the banking institution’s permit to conduct banking businesses shall
be revoked. If the criminal offence of making sham capital contributions, surreptitiously withdrawing capital contributions or another
criminal offence is constituted, criminal liability shall be investigated according to law.

    Article 9  Banking institution may not engage in financial business activities out of the business scope approved by the People’s
Bank of China.

    If a banking institution, in engaging in financial business activities, exceeds the business scope approved
by the People’s Bank of China, it shall be given a warning, and its illegal income shall be confiscated; in addition, it shall be
imposed a fine of not less than 1 time and not more than 5 times the illegal income or, if there is no illegal income, a fine of
not less than 100,000 yuan but not more than 500,000 yuan; The senior management employees of the banking institution directly responsible
shall be subjected to disciplinary sanctions ranging from removal from their posts to dismissal; and the other persons in charge
who are directly responsible and other directly responsible persons shall be subjected to disciplinary sanctions ranging from recording
of a demerit to dismissal; if the circumstances are serious, the banking institution shall be ordered to suspend businesses and carry
out rectification or its permit to conduct banking businesses shall be revoked; if the criminal offence of illegal operation or another
criminal offence is constituted, criminal liability shall be investigated according to law.

    Article 10  Representative offices of banking institutions may not engage in banking businesses.

    If a representative office of a banking institution engages in banking business, it shall be given a warning
and its illegal income shall be confiscated; in addition, it shall be subjected to a fine of not less than 1 time but not more than
3 times the illegal income or, if there is no illegal income, a fine of not less than 50,000 yuan but not more than 300,000 yuan.
The senior management employees of the banking institution directly responsible shall be subjected to disciplinary sanctions ranging
from removal from their posts to dismissal, and the other persons in charge who are directly responsible and other directly responsible
persons shall be subjected to disciplinary sanctions ranging from demotion to being dismissal; if the circumstances are serious,
the representative office shall be closed.

    Article 11  Banking institutions may not engage in off-the-books businesses in any of the following forms:

    (1) in carrying out business such as deposit or lending business, failing to book or register the same in
accordance with the accounting system, or failing to reflect the same in its accounting statements;

    (2) handling different types of business such as deposits, and lending by setting off the same against each
other in one account;

    (3) failing to book operating revenue; or

    (4) other off-the-book businesses.

    If a banking institution violates the provisions of the preceding paragraph , it shall be given a warning
and its illegal income shall be confiscated; in addition, it shall be subject to a fine of not less than 1 time but not more than
5 times the illegal income or, if there is no illegal income, a fine not less than 100,000 yuan but not more than 500,000 yuan. The
senior management employees of the banking institution directly responsible, other persons in charge who are directly responsible
and other directly responsible persons shall be subjected to the disciplinary sanction of dismissal. If the circumstances are serious,
the banking institution shall be ordered to suspend businesses and carry out rectification or its permit to conduct banking businesses
shall be revoked. If the criminal offence of illegally making inter-banking-institution loans or other loans with off-the-books customer
funds or another criminal offence is constituted, criminal liability shall be investigated according to law.

    Article 12  Banking institutions may not submit financial and accounting reports or statistical reports which are a sham or which
conceal major facts.

    A banking institution that submits a financial or accounting reports or a statistical report which is a sham
or which conceals major facts shall be given a warning, and subjected to a fine of not less than 100,000 yuan but not more than 500,000
yuan; the senior management employees of the banking institution directly responsible shall be subjected to disciplinary sanctions
ranging from removal from their posts to dismissal, and the other persons in charge who are directly responsible and other directly
responsible persons shall be subjected to disciplinary sanctions ranging from recording of a major demerit to dismissal; if the circumstances
are serious, the banking institution shall be ordered to suspend businesses and carry out rectification or its permit to conduct
banking businesses shall be revoked; if the criminal offence of submitting a sham financial or accounting report or another criminal
offence is constituted, criminal liability shall be investigated according to law.

    Article 13  Banking institution may not issue financial instruments such as letters of credit, letters of guarantee, negotiable instruments,
certificates of deposit or certificates of creditworthiness, etc. that do not agree with the facts.

    A banking institution that practices fraud by issuing a financial instrument such as a letter of credit, letter
of guarantee, negotiable instrument, certificate of deposit or certificate of creditworthiness, etc. that does not agree with the
facts shall be given a warning and its illegal income shall be confiscated; in addition, it shall be subjected to a fine of not less
than 1 time bur not more than 5 times the illegal income or, if there is no illegal income, a fine of not less than 100,000 yuan
but not more than 500,000 yuan; the senior management employees of the banking institution directly responsible, other persons in
charge who are directly responsible and other directly responsible persons shall be subjected to the disciplinary sanction of dismissal;
if the criminal offence of illegally issuing a financial instrument or another criminal offence is constituted, criminal liability
shall be investigated according to law.

    Article 14  Banking institutions may not accept, discount, pay or guarantee negotiable instruments which violate provisions of the
law on negotiable instruments.

    A banking institution that accepts, discounts, pays or guarantees a negotiable instrument which violates provisions
of the law on negotiable instruments shall be given a warning and its illegal income shall be confiscated; in addition, it shall
be subjected to a fine of not less than 1 time but not more than 3 times the illegal income or, if there is no illegal income, a
fine of not less than 50,000 yuan but not more than 300,000 yuan; the senior management employees of the banking institution directly
responsible, other persons in charge who are directly responsible and other directly responsible persons shall be subjected to disciplinary
sanctions ranging from recording of a major demerit; if a loss of funds results, the said banking institution’s senior management
employees directly responsible shall be subjected to disciplinary sanctions ranging from removal from their posts to dismissal; if
the criminal offence of accepting, paying or guaranteeing an illegal negotiable instrument or another criminal offence is constituted,
criminal liability shall be investigated according to law.

    Article 15  In conducting deposit businesses, banking institutions may not:

    (1) without authorization, raise interest rates or covertly raise interest rates to attract deposits;

    (2) permit an account to be opened in the name of an individual for the purpose of depositing funds which
the banking institution knows well or should know to be funds of a unit;

    (3) launch new types of deposit business without authorization;

    (4) accept deposits which do not meet People’s Bank of China regulations on customer scope, time limit or
minimum amount;

    (5) open multiple accounts for clients in violation of regulations; or

    (6) carry out other deposit acts in violation of People’s Bank of China regulations.

    A banking institution that commits any one of the acts mentioned in the preceding paragraph shall be given
a warning and its illegal income shall be confiscated; in addition, it shall be subjected to a fine of not less than 1 time but not
more than 3 times the illegal income or, if there is no illegal income, a fine of not less than 50,000 yuan but not more than 300,000
yuan; the senior management employees of the banking institution directly responsible shall be subjected to disciplinary sanctions
ranging from removal from their posts to dismissal, and the other persons in charge who are directly responsible and other directly
responsible persons shall be subjected to disciplinary sanctions ranging from demotion to dismissal; if the circumstances are serious,
the banking institution shall be ordered to suspend businesses and carry out rectification or its permit to conduct banking business
shall be revoked.

    Article 16  In conducting loan business, banking institutions may not:

    (1) grant unsecured loans to connected persons;

    (2) grant secured loans to connected persons on terms more favorable than those offered to other borrowers
of the same kind of loans;

    (3) raise or lower interest rate in violation of regulations or make loans by other improper methods; or

    (4) carry out other lending acts in violation of People’s Bank of China regulations.

    A banking institution that commits any one of the acts mentioned in the preceding paragraph shall be given
a warning and its illegal income shall be confiscated; in addition, it shall be subjected to a fine of not less than 1 time but not
more than 5 times the illegal income or, if there is no illegal income, a fine of not less than 100,000 yuan but not more than 500,00
yuan; the senior management employees of the banking institution directly responsible, other persons in charge who are directly responsible
and other directly responsible persons shall be subjected to disciplinary sanctions ranging from removal from their posts to dismissal;
if the circumstances are serious, the banking institution shall be ordered to suspend businesses and carry out rectification or its
permit to conduct banking business shall be revoked; if the criminal offence of illegally making loans to connected persons, illegally
granting loans or another criminal offence is constituted, criminal liability shall be investigated according to law.

    Article 17  In conducting inter-banking-institution lending, banking institutions may not:

    (1) grant inter-banking-institution loans in excess of the maximum permissible amount;

    (2) grant inter-banking-institution loans of a term exceeding the maximum permissible term;

    (3) conduct inter-banking-institution lending business if they do not have the qualifications to conduct such
business;

    (4) conduct inter-banking-institution lending business outside the national unified inter-banking-institution
lending network;

    (5) engage in other inter-banking-institution lending acts in violation of People’s Bank of China regulations.

    A banking institution that commits any one of the acts mentioned in the preceding paragraph shall be subjected
to a temporary suspension or termination of the said business and its illegal income shall be confiscated; in addition, it shall
be subjected to a fine of not less than 1 time but not more than 3 times the illegal income or, if there is no illegal income, a
fine of not less than 50,000 yuan but not more than 300,00 yuan; the senior management employees of the banking institution directly
responsible, other persons in charge who are directly responsible and other directly responsible persons shall be subjected to disciplinary
sanctions ranging from recording of a demerit to dismissal.

    Article 18  Banking institutions may not violate State regulations by conducting securities, futures or other derivatives transactions,
provide credit funds or guarantees for securities, futures or other derivatives transactions, or violate State regulations by investing
in immovable property not for their own use, equity or industry, etc.

    A banking institution that violates the provisions of the preceding paragraph shall be given a warning and
its illegal income shall be confiscated; in addition, it shall be subjected to a fine of not less than 1 time but not more than 5
times the illegal income or, if there is no illegal income, a fine of not less than 100,000 yuan but not more than 500,00 yuan; the
senior management employees of the banking institution directly responsible shll be subjected to the disciplinary sanction of dismissal,
and the other persons in charge who are directly responsible and other directly responsible persons shall be subjected to disciplinary
sanctions ranging from removal from their posts to dismissal; if the circumstances are serious, the banking institution shall be
ordered to suspend businesses and carry out rectification or its permit to conduct banking business shall be revoked; if the criminal
offence of illegal operation, illegally granting of loans or another criminal offence is constituted, criminal liability shall be
investigated according to law.

    Article 19  Banking institutions shall comply with the provisions of the People’s Bank of China on cash control, and they shall not
permit any units or individuals to withdraw cash exceeding the permissible limit.

    A banking institution that violates the provisions of the People’s Bank of China on cash control by permitting
units or individuals to withdraw cash exceeding the permissible limit and its illegal income shall be given a warning and fined not
less than 50,000 yuan but not more than 300,000 yuan; the senior management employees of the banking institution directly responsible,
other persons in charge who are directly responsible and other directly responsible persons shall be subjected to disciplinary sanctions
ranging from recording of a major demerit to dismissal.

    Article 20  Banking institutions shall comply with the provisions of the People’s Bank of China on control over credit card, and shall
not violate provisions by permitting credit cardholders to make overdrafts or aiding them to use their credit cards to illicitly
obtain cash.

    A banking institution that violates the provisions of the People’s Bank of China on control over credit card
by permitting credit cardholders to make overdrafts or aiding them to use their credit cards to illicitly obtain cash shall be given
a warning and fined not less than 50,000 yuan but not more than 300,000 yuan; the senior management employees of the banking institution
directly responsible, other persons in charge who are directly responsible and other directly responsible persons shall be subjected
to disciplinary sanctions ranging from recording of a major demerit to dismissal.

    Article 21  Banking institutions shall comply with the provisions of the People’s Bank of China on the administration of asset-liability
ratios.

    A banking institution that violates the provisions of the People’s Bank of China on the administration of
asset-liability ratios shall be given a warning and its illegal income shall be confiscated; in addition, it shall be subjected to
a fine of not less than 1 time but not more than 3 times the illegal income or, if there is no illegal income, a fine of not less
than 50,000 yuan but not more than 300,000 yuan; the senior management employees of the banking institution directly responsible
shall be subjected to disciplinary sanctions ranging from recording of a major demerit to dismissal.

    Article 22  Banking institutions shall not tie up public finance deposits or funds.

    A banking institution that ties up public finance deposits or funds shall be given a warning and its illegal
income shall be confiscated; in addition, it shall be subjected to a fine of not less than 1 time but not more than 3 times the illegal
income or, if there is no illegal income, a fine of not less than 50,000 yuan but not more than 300,000 yuan; the senior management
employees of the banking institution directly responsible shall be subjected to disciplinary sanctions ranging from removal from
their posts to dismissal and the other persons in charge who are directly responsible and other directly responsible persons shall
be subjected to disciplinary sanctions ranging from demotion to dismissal.

    Article 23  Banking institutions shall, according to law, assist the tax and customs authorities in carrying out the freezing or the
seizing and transferring of taxpayers’ deposits.

    A banking institution that violates the provisions of the preceding paragraph, resulting in the loss of tax
revenue, shall be given a warning and fined not less than 100,000 yuan but not more than 500,00 yuan; the senior management employees
of the banking institution directly responsible, other persons in charge who are directly responsible and other directly responsible
persons shall be subjected to disciplinary sanctions ranging from removal from their posts to dismissal; if a violation of public
security administration is constituted, they shall be subjected to public security administration penalties according to law; if
the criminal offence of obstructing official business or another criminal offence is constituted, criminal liability shall be investigated
according to law.

    Article 24  Banking institutions engaging in foreign exchange business shall comply with the provisions of the State on foreign exchange
control.

   A banking institution engaging in foreign exchange business that violates the provisions of the State on foreign exchange
control shall be subjected to administrative penalties according to the provisions of the regulations on foreign exchange control;
the senior management employees of the banking institution directly responsible, other persons in charge who are directly responsible
and other directly responsible persons shall be subjected to disciplinary sanctions ranging from recording of a demerit to dismissal;
if the circumstances are serious, the senior management employees of the banking institution directly responsible shall be subjected
to disciplinary sanctions ranging from removal from their posts to dismissal; if a criminal offence is constituted, criminal liability
shall be investigated according to law.

    Article 25  Banking institutions engaging in foreign exchange business may not cot:

    (1) fail to promptly report unusual circumstances such as large or frequent purchase of foreign exchange,
or the deposit or withdrawal of large amounts of foreign currency in cash; or

    (2) fail to declare its balance of international receipts and payments according to provisions.

    A banking institution engaging in foreign exchange business that commits any one of the acts mentioned in
the preceding paragraph shall be given a warning and fined not less than 50,000 yuan but not more than 300,000 yuan; the senior management
employees of the banking institution directly responsible, other persons in charge who are directly responsible and other directly
responsible persons shall be subjected to disciplinary sanctions ranging from recording of a demerit to dismissal; if the circumstances
are serious, the senior management employees of the banking institution directly responsible shall be subjected to disciplinary sanctions
ranging from removal from their posts to dismissal; if the criminal offence of being defrauded due to dereliction of duty in the
signing or performance of a contract or another criminal offence is constituted, criminal liability shall be investigated according
to law.

    Article 26  Commercial banks may not permit overdrafts for the purpose of clearing funds for securities or futures transactions or
for the purpose of applications for purchase of new shares.

    A commercial bank that permits overdrafts for the purpose of clearing funds for securities or futures transactions
or for the purpose of applications for purchase of new shares shall be given a warning and its illegal income shall be confiscated;
in addition, it shall be subjected to a fine of not less than 1 time but not more than 5 times the illegal income or, if there is
no illegal income, a fine of not less than 100,000 yuan but not more than 500,000 yuan; the senior management employees of the commercial
bank directly responsible shall be subjected to disciplinary sanctions of dismissal, and other persons in charge who are directly
responsible and other directly responsible persons shall be subjected to disciplinary sanctions ranging from removal from their posts
to dismissal.

    Article 27  Finance companies may not:

    (1) issue finance company bonds on a scale exceeding that approved by the People’s Bank of China;

    (2) take in deposits form, or grant loans to, units that are not group members;

    (3) furnish banking services to units that are not group members, in violation of provisions; or

    (4) carry out other acts in violation of provisions of the People’s Bank of China.

    A finance company that carries out any one of the acts mentioned in the preceding paragraph shall be given
a warning and its illegal income shall be confiscated; in addition, it shall be subjected to a fine of not less than 1 time but not
more than 5 times the illegal income or, if there is no illegal income, a fine of not less than 100,000 yuan but not more than 500,000
yuan; the senior management employees of the finance company directly responsible, other persons in charge who are directly responsible
and other directly responsible persons shal

REGULATIONS ON MANAGEMENT OF HOUSING PROVIDENT FUND

Category  Finance Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-04-03 Effective Date  1999-04-03  


Regulations on Management of Housing Provident Fund

Chapter One  General Provisions
Chapter Two  Organs and Their Functions and Responsibilities
Chapter Three Payment and Deposit
Chapter Four  Withdrawal and Use
Chapter Five  Supervision
Chapter Six  Penalty Provisions
Chapter Seven  Supplementary Provisions

(Adopted at the 15th Executive Meeting of the State Council on March 17th, 1999, and promulgated by Decree No.262 of the State Council of People’s Republic of China on April
3, 1999)

Chapter One  General Provisions

    Article 1  These Regulations are formulated with a view to strengthening the management of, protecting the legal rights and interests
of housing provident fund owners, promoting the construction of houses in cities and towns, and improving the housing standard of
residents in cities and towns.

    Article 2  These Regulations are applicable to the payment and deposit, withdrawal, use, management and supervision of housing provident
fund within the territory of the People’s Republic of China.

    The term “housing provident fund” as referred to in these Regulations means long-term housing deposit fund
collected from State organs, State-owned enterprises, collectively owned enterprises in cities and towns, enterprises with foreign
investment, private enterprises in cities and towns as well as other enterprises and institutions in cities and towns (hereinafter
referred to as units) and their on-the-job workers and staff.

    Article 3  The housing provident fund paid and deposited by workers and staff themselves as well as that paid and deposited by units
to which the workers and staff belong is owned by the workers and staff themselves.

    Article 4  The principle that the housing committee makes decisions, the managing center of housing provident fund operates, the
bank deposits in special account and the finance supervises shall be excised in the management of housing provident fund.

    Article 5  Housing provident fund shall be used by workers and staffs for buying, building, overhauling and repairing houses for
self living and shall not be misused by any unit or individuals for other purposes.

    Article 6  The deposit interest and loan interest of housing provident fund shall be lodged by the People’s Bank of China and then,
after soliciting the opinion of the competent department of construction administration of the State Council, submitted to the State
Council for approval.

    Article 7  The competent department of construction administration of the State Council shall, together with the financial department
of the State Council and the People’s Bank of China, work out policies on housing provident fund and supervise the fulfillment.

    The competent department of construction administration under the people’s government of a province or an
autonomous region is responsible for directing the management work in relation to housing provident fund within its administrative
region.  
Chapter Two  Organs and Their Functions and Responsibilities

    Article 8  In a municipality directly under the Central Government, a city where the people’s government of a province or an autonomous
region is located as well as any other city divided into districts, a housing committee composed of the responsible persons of the
people’s government, the responsible persons of financial department, construction department and other departments as well as the
representatives of the trade union and specialists shall be set up as the decision-making organ of management of housing provident
fund

    Article 9  The housing committee shall perform the following functions and responsibilities in the management of housing provident
fund:

    (1) work out and adjust the specific measures for the management of housing provident fund and supervise the
implementation thereof in according to the relevant laws, regulations and policies

    (2) set the specific payment and deposit ratio of housing provident fund according to the provisions of Article
18 of these Regulations;

    (3) decide on the highest amount of loan of housing provident fund;

    (4) examine and approve the plan for collecting and using the housing provident fund;

    (5) examine and approve the report on the implementation of the plan for collecting and using the housing
provident fund;

    Article 10  In a municipality directly under the Central Government, a city where the people’s government of a province, an autonomous
region is located and a city divided into districts, a managing center of housing provident fund, which is to be responsible for
managing and operating housing provident fund, shall be set up on the basis of the principle of simplification and efficiency.

    No managing center of housing provident fund, in principal, shall be set up in a county (city); where its
establishment is necessary indeed, the matter shall be submitted to the people’s government of province, autonomous region and municipality
directly under the Central Government for approval.

    The managing center of housing provident fund is a not-for-profit and independent institution.

    Article 11  The managing center of housing provident fund shall fulfill the following functions and responsibilities:

    (1) make and implement the plan for collecting and using housing provident fund;

    (2) record the payment and deposit, withdrawal and use of housing provident fund of worker and staff;

    (3) take the responsibility of the assessment of housing provident fund

    (4) examine and approve the withdrawal and use of housing provident fund;

    (5) take the responsibility of the value-keeping and return of housing provident fund;

    (6) make the report on the implementation of the plan for collecting and using housing provident fund;

    (7) undertake other work decided by the housing committee.  

    Article 12  The managing center of housing provident fund shall, according to the relevant provisions of the People’s Bank of China,
commission the bank designated by the housing committee (hereinafter referred to as the commissioned bank) to undertake banking businesses
such as loan and settlement of housing provident fund and to undergo procedures such as the open, payment and deposit, and return
of housing provident fund.  

    The managing center of housing provident fund shall sign a contract for commission with the commissioned bank.
Chapter Three Payment and Deposit

    Article 13  The managing center of housing provident fund shall open a special account of housing provident fund in the commissioned
bank.

    A unit shall undertake registration of payment and deposit of housing provident fund at the managing center
of housing provident fund and then, upon the verification by the managing center of housing provident fund, undergo the procedures
of opening the account of housing provident fund for its workers and staff at the commissioned bank. Each worker and staff shall
only have one account of housing provident fund.

    The managing center of housing provident fund shall establish a subsidiary book of housing provident fund
of workers and staff, which records the payment and deposit and withdrawal of the housing provident fund by individual worker and
staff.

    Article 14  A newly-established unit shall undertake the registration of payment and deposit of housing provident fund at the managing
center of housing provident fund within 30 days of its establishment, and shall , on the basis of the verification documents of the
managing center of housing provident fund, undergo the procedure of opening the accounts of housing provident fund for its workers
and staff at the commissioned bank within 20 days of the registration.

    In case of merger, separation, termination, dissolvent or bankruptcy of a unit, the original unit or the liquidation
group shall, within 30 days of the occurrence of the above-mentioned situations, undertake the alteration registration or termination
registration at the managing center of housing provident fund, and shall, on the basis of verification documents of the managing
center of housing provident fund, undergo the procedures of transferring or sealing up the accounts of housing provident fund for
its workers and staff at the commissioned bank within 20 days of the completion of the registration of alteration registration or
termination registration.

    Article 15  If a unit employs a new worker or staff, the unit shall undertake the registration of payment and deposit at the managing
center of housing provident fund within 30 days of the employment, and shall, on the basis of the verification documents of the managing
center of housing provident fund, undergo the procedure of opening or transferring the account of housing provident fund of workers
and staff at the commissioned bank.

    In case of the termination of the labor relationship between the unit and a worker or staff, the unit shall
undertake the alteration registration at the managing center of housing provident fund within 30 days of the termination of the labor
relationship, and shall, on the basis of the verification documents of the managing center of housing provident fund, undergo the
procedure of transferring or sealing up the account of housing provident fund at the commissioned bank.

    Article 16  The monthly amount of housing provident fund paid and deposited by a worker or staff equals to the product of his or her
average monthly salary in last year timing the payment and deposit ratio of housing provident fund of the worker or staff.

    The monthly amount of housing provident fund paid and deposited by a unit for a worker or staff equals to
the product of the average monthly salary of the worker or staff in last year timing the payment and deposit ratio of housing provident
fund of the unit.

    Article 17  A new worker or staff shall begin to pay and deposit the housing provident fund from the second month after his or her
beginning of work, the monthly amount of payment and deposit equals to the product of his or her salary in this month timing the
payment and deposit ratio of housing provident fund of the worker or staff.

    A newly transferred into worker or staff of a unit shall begin to pay and deposit the housing provident fund
from the day on which the new unit pays him salary, the monthly amount of payment and deposit equals to the product of his or her
salary in this month timing the payment and deposit ratio of housing provident fund of the worker or staff.

    Article 18  The payment and deposit ratio of housing provident fund of a worker and staff as well as a unit shall not be less than
5% of the monthly average salary in the last year; cities with good circumstances may properly raise the payment and deposit ratio.
The specific payment and deposit ratio shall be drawn out by the housing committee, and then, after being verified by the people’s
government at the same level, be submitted to the people’s government of a province, an autonomous region or a municipality directly
under the Central Government for approval.

    Article 19  The housing provident fund to be paid and deposited by a worker or staff shall be withheld monthly from his or her salary
by the unit to which he belongs.

    The unit shall collectively pay the housing provident fund that is paid and deposited by the unit and that
is withheld for its workers and staff into the special bank account of housing provident fund within 5 days from the payday every
month, which shall be calculated into the account of housing provident fund of workers and staff by the commissioned bank.

    Article 20  A unit shall timely pay and deposit housing provident fund in full amount, and shall not pay and deposit it after the
expiration of the time period or pay it not in full amount.

    If the unit has difficulty in paying housing provident fund, through the discussion by the worker representative
conference or the labor union, after verification of the managing center of housing provident fund and approval of the housing committee,
it can lower the ratio of payment or defer the payment. When the business running is better, the ratio shall be raised and the housing
provident fund be repaid.

    Article 21  The housing provident fund shall be calculated interest according to the prescribed interest rate of the State from the
day when it is deposited into the housing provident fund account of workers and staff.

    Article 22  The managing center of housing provident fund shall issue valid certificates certifying the payment and deposit of housing
provident fund to the workers and staff who have paid and deposited housing provident funs.

    Article 23  The housing provident fund paid and deposited by a unit for its workers and staff shall be listed as outlay according
to the following provisions:

    (1) an organ shall list it into budget;

    (2) an institution shall list it into budget or expense after the verification of income and expenditure by
the financial department;

    (3) an enterprise shall list it as cost
Chapter Four  Withdrawal and Use

    Article 24  Under any one of the following circumstances, a worker or staff may withdraw the remaining money in the housing provident
fund account of a worker or staff:

    (1) buying, building, overhauling or repairing the house for self living;

    (2) retirement;

    (3) completely losing the ability to work and terminating the labor relation with the former unit;

    (4) registered permanent residence being transferred out of the former city or county or settling in any foreign
country;

    (5) repaying the loan and its interest for buying a house;

    (6) the rent for the house exceeds the prescribed ratio of a family’s salary.

    Where the housing provident fund of a worker or staff is withdrawn according to the provisions of the Sub-paragraphs
(2), (3) and (4) of the preceding paragraph, the account of housing provident fund of the said worker or staff shall be cancelled
at the same time.

    Where a worker or staff is dead or is declared dead, his heir and devisee may withdraw the remaining money
in the housing provident fund account of the worker or staff; where there is no heir or beneficiary of will, the remaining money
in the housing provident fund account of the worker or staff shall be merged into the value-added proceeds of housing provident fund  

    Article 25  Where a worker or staff withdraws the remaining money in the housing provident fund account of the worker or staff, the
unit to which he belongs shall undertake verification and issue a certification of withdrawal.

    The worker or staff shall, on the basis of the certification of withdrawal, apply to the managing center of
housing provident fund for withdraw housing provident fund. The managing center shall make a decision of withdrawal or non-withdrawal
within 3 days of the acceptance of the application and inform the worker or staff; where the withdrawal id approved, the commissioned
bank shall undergo the procedures of payment.

    Article 26  When buying, building, overhauling or repairing a house for self living, a worker or staff paying and depositing housing
provident fund may apply to the managing center of housing provident fund for the loan of housing provident fund.

    The managing center of housing provident fund shall make the decision of granting or not granting the loan
with 15 days of the acceptance of the application and inform the applicant; where the loan is granted, the commissioned bank shall
undergo the procedures for loan.

    The risk arising from the loan of housing provident fund shall be borne by the managing center of housing
provident fund.  

    Article 27  An applicant applying for the loan of housing provident fund shall offer guarantee.

    Article 28  Under the prerequisite of ensuring the withdrawal and loan of housing provident fund, the managing center of housing provident
fund may, upon the approval of the housing committee, use the housing provident fund to buy the national debt.

    The managing center of housing provident fund shall not offer guarantee for others.

    Article 29  The value-added proceeds of housing provident fund shall be deposited into the special account of value-added proceeds
of housing provident fund opened in the commissioned bank by the managing center of housing provident fund, and shall be used for
establishing the risk preparation fund of the loan of housing provident fund, for administrative expenditure of the managing center
of housing provident fund and for supplementary fund of building urban cheaply renting houses.

    Article 30  With respect to the administrative expenditure of a managing center of housing provident fund, the managing center shall,
according to the prescribed standard, make a budget of whole amount of expenditures through the year, and submit it to the financial
department of the people’s government at the same level for approval, handed over to the finance at the same level from the increased
benefit of housing provident fund and appropriated by the finance at the same level.

    The standard for administrative expenditure of a managing center is to be set on the basis of the standard
slightly higher than the State prescribed stand for institutions by the competent department of construction administration under
the people’s government of a province, an autonomous region or a municipality directly under the Central Government, together with
the financial department at the same level, and financial department in charge at the same level.
Chapter Five  Supervision

    Article 31  The financial department of the relevant local people’s government shall strengthen the supervision on the collection,
withdrawal and use of housing provident fund within its administrative region and makes report to the housing committee of the people’s
government at the same level.

    When making the plan for collecting and using the housing provident fund, the managing center of housing provident
fund shall solicit the opinion of the financial department.

    The financial department must participate in the examination and approval of the report on the plan for collecting
and using housing provident fund and the implementation of the plan by the housing committee.  

    Article 32  The annual budget and settlement of housing provident fund made by the managing center of housing provident fund shall,
after being verified by the financial department, be submitted to the housing committee for examination and discussion.

    Every year the managing center of housing provident fund shall regularly send the financial report to the
financial department and the housing committee and publicize it to society.

    Article 33  The managing center of housing provident fund shall subject itself to the supervision through auditing from the audit
department.

    Article 34  The managing center of housing provident fund and its workers and staff are enpost_titled to supervise and urge a unit to fulfill
the following duties in time:

    (1) the payment and deposit registration of housing provident fund or the registration of its alteration or
termination;

    (2) the opening, transferring and sealing up of the housing provident fund account;

    (3) paying and depositing housing provident fund in full amount.

    Article 35  The managing center of housing provident fund shall supervise and urge the commissioned bank to timely handle the business
agreed upon in the commission contract.

    The commissioned bank shall, according to the agreement in the commission contract, regularly provide the
relevant data to the managing center of housing provident fund.

    Article 36  Workers and staff as well as units are enpost_titled to make inquiries about the payment, deposit and withdrawal of their own
housing provident fund, the managing center of housing provident fund and the commissioned bank shall not refuse the inquiries.

    Where a worker or staff or a unit has any objections to the remaining money in the housing provident fund
account, he or it may apply to the commissioned bank to recheck; where having objections to the recheck result, he or it may apply
to the managing center of housing provident fund to recheck again. The managing center of housing provident fund and the commissioned
bank shall give a written reply within 5 days of the receipt of the application.

    Workers and staff are enpost_titled to disclose, impeach and indict the act of misappropriating housing provident
fund.
Chapter Six  Penalty Provisions

    Article 37  Where a unit, in violation of the provisions of these Regulations, fails to make the payment and deposit registration
of housing provident fund or fails to undergo the procedure for its workers and staff to open the housing provident fund account,
the managing center of housing provident fund shall order it to be undertaken within a specified time limit; where it is not undertaken
by the expiration of the specified time limit, a fine of not less than 10,000 yuan nor more than 50,000 yuan shall be imposed.

    Article 38  Where a unit, in violation of the provisions of these Regulations, fails to pay or pays not in full amount the housing
provident fund by the expiration of the time limit, the managing center of housing provident fund shall order it to be paid and deposited
within a specified time limit; where it is not paid and deposited yet by the expiration of the specified time limit, compulsory enforcement
by the people’s court may be applied.

    Article 39  Where, in violation of the provisions of these Regulations, the housing provident fund is appropriated, it shall be recovered;
where there are any illegal gains, such illegal gains shall be confiscated and merged into housing provident fund; where a crime
is constituted, criminal liability shall be investigated according to law; where no crime is constituted, administrative sanctions
shall be imposed upon the persons in charge directly responsible and the other direct responsible persons.

    Article 40  Where the managing center of housing provident fund, in violation of the provisions of these Regulations, offers guarantee
for others, the persons in charge directly responsible and the other direct responsible persons shall be imposed administrative sanctions.

    Article 41  In the work of supervision and administration of housing provident fund, functionaries in State organs who abuse their
powers, neglect their duties or practice favoritism shall be investigated for criminal liabilities where crimes are constituted;
where no crime is constituted, administrative sanctions shall be imposed.
Chapter Seven  Supplementary Provisions

    Article 42  The measures for financial management and accounting of housing provident fund are to be formulated by the financial department
of the State Council in consultation with the construction department of the State Council.

    Article 43  The unit that has not make the payment and deposit registration of housing provident fund or has not undergone the procedure
of opening housing provident fund account of workers and staff before the effectiveness of these Regulations shall, within 60 days
after the date of effectiveness of these Regulations, make the payment and deposit registration of housing provident fund with the
managing center of housing provident fund, and undergo the procedure of opening housing provident fund account with the commissioned
bank.

    Article 44  These Regulations take effect as of the date of promulgation.





CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION ON ISSUE CONCERNING TAXATION ON THE TURNOVER OF THE BUSINESS TAX OF THE FINANCING LEASING

The Ministry of Finance, the State Administration

Circular of the Ministry of Finance and the State Administration on Issue Concerning Taxation on the Turnover of the Business Tax
of the Financing Leasing

CaiShuiZi [1999] No.183

June 24, 1999

The finance department (bureaus) of province, autonomous region, municipality directly under the Central Government and municipality
separately listede on the state plan, the state and local taxation bureaus:

Circular on Transmitting the Circular of the State Council on some Issue Concerning Adjusting the Taxation Policy of Finance and Insurance
(CaiShuiZi [1997] No.45) which issued by the Ministry of Finance and the State Administration of Taxation prescribes that the turnover
of the tax-payers undertaking the financing lease is the balance: all the charge from the lessee and fee beyond cost (including scrap
value) deducted of the cost of rented goods the lesser should be responsible for. The real cost of goods rented includes purchase
price of goods, duty, added-value tax, consumption tax, delivery fee, installation fee, insurance and etc. Recently, it is required
from the local regions in the letters whether the interest of foreign exchange loan of the Financing Leasing enterprise can be deducted
during taxation. Now the following should be clarified:

The turnover of the tax-payers undertaking the financial leasing is the balance all the cost and charge beyond cost from lessees taking
off the real cost of goods rented by leasers and sales tax should be paid on that. The real cost of goods rented includes the interest
of foreign exchange loan for buying the leasing goods.

This provision shall come into force from July 1, 1999. the turnover should not be adjusted no matter whether the interest of foreign
exchange loan is deducted when the local institutions tax.

Please carry it out completely.



 
The Ministry of Finance, the State Administration
1999-06-24

 






CIRCULAR OF THE STATE COUNCIL ON THE IMPLEMENTATION OF THE ADMINISTRATIVE RECONSIDERATION

Category  JURISDICTION AND ADMINISTRATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-05-06 Effective Date  1999-05-06  


Circular of the State Council on the Implementation of the Law of the People’s Republic of China on Administrative Reconsideration

(Promulgated by Document No. [1999] 10 of the State Council on May 6, 1999)

    The Law of the People’s Republic of China on Administrative Reconsideration (hereinafter referred to as the
Administrative Reconsideration Law) has been adopted by the Ninth Meeting of the Standing Committee of the Ninth National People’s
Congress on April 29,1999, and will take effect as of October 1, 1999. This is a significant event in the construction of socialist
democracy and legal system in our country. It is an important responsibility of administrative organs at various levels to guarantee
the complete and correct implementation of the Administrative Reconsideration Law, and to promote the governments at various levels
and the departments thereof to illegally execute administration and strictly govern administration, so as to build an honest, realistic,
efficient and diligent government. It is also an important task in the government legal system construction. The local governments
at various levels and the departments under the State Council should pay great attention to the implementation of the Administrative
Reconsideration Law, and practically do good jobs in the work in relation to its implementation. In order to achieve that, the Circular
is given as follows:

    1.Understand the importance of the Administrative Reconsideration Law from the point of basic strategy of
governing the country according to law and the point of executing administration in strict accordance with law, and learn and publicize
the Administrative Reconsideration Law in a down-to-earth way

    Administrative reconsideration is an important supervisory mechanism for the administrative organs to correct
mistakes by themselves. The Administrative Reconsideration Law, on the basis of summing up practical experience from the implementation
of Regulations on Administrative Reconsideration formulated by the State Council in 1990, further improves the administrative reconsideration
system, which includes: to enlarge the scope of administrative reconsideration, so as to further reinforce the role of administrative
reconsideration in solving administrative disputes; to simplify application procedures of administrative reconsideration, so as to
fully embody the principle of convenience-for-people; to authorize the party concerned with the right of initiative in relation to
the supervision mechanism of regulatory documents; to establish the system that the State Council accepts administrative reconsideration
cases involving departments under the State Council and governments at the provincial level and makes final decision, by which to
strengthen the State Council’s supervision over its departments and governments at the provincial level; and to strictly specify
the administrative organs’ legal liability for not implementing the function of administrative reconsideration. The Administrative
Reconsideration Law, after the promulgation of the Administrative Procedural Law, the State Compensation Law and the Administrative
Penalty Law, is another important law for normalizing governmental conducts, it has important significance in not only protecting
legal rights and interests of citizens, legal persons and other organizations, but also in guaranteeing and supervising administrative
organs to perform their function and powers according to law, in promoting the execution of administration according to law and governing
the administration in a strict way, in increasing working efficiency, in strengthening the construction of honest government, in
maintaining close t
ie between the government and people, and in maintaining social stability. The staff members of administrative organs at various levels,
especially the leaders, should, from the point of basic strategy of governing the country according to law and the point of executing
administration in strict accordance with law, understand the importance of the implementation of the Administrative Reconsideration
Law, earnestly study the Administrative Reconsideration Law, deeply comprehend its spirit and crux, strengthen the consciousness
in legally executing administration, and in improving the ability in legally executing administration. Governments at various levels
and their departments should lay out concrete measures for studying, publicizing and implementing the Administrative Reconsideration
Law, and pay close attention to its fulfillment. It is necessary to take advantage of newspaper, broadcasting, television and other
media, by adopting all kinds of vivid and lively forms, to deeply publicize the Administrative Reconsideration Law to the masses,
with a purpose of making everybody know it, have an intimate knowledge about the administrative reconsideration system, and use it
to protect their legal rights and interests. It is necessary, by combining the implementation of the Administrative Reconsideration
Law, to further strengthen the training on the personnel of administrative law-enforcement and the personnel engaging in concert
work in relation to administrative reconsideration. The working agencies of legal system under the governments at or above the county
level and their departments should, under the uniform leadership of the governments at the same level or their departments, organize
the work in relation to studying, publicizing and training in their own localities or departments.

    2.Carry out the work of administrative reconsideration in strict accordance with Administrative Reconsideration
of Law

    The Administrative Reconsideration Law clearly specifies the scope, application, acceptance, decision, and
legal liability of administrative reconsideration. Governments at or above the county level and their departments should strictly
implement these provisions, earnestly perform  their functions and duties in administrative reconsideration. As to the
review and disposition of the regulatory documents used as basis in specific administrative acts applied for administrative reconsideration
as well as the transference of applications for administrative reconsideration by the governments at the county level, the localities
may make specific provisions according to their legal authorization. It is necessary, on the basis of summing up practical experience
of administrative reconsideration, to establish and perfect the record system of major administrative reconsideration decisions,
pay close attention to the revision of standardized format of administrative reconsideration documents, further perfect the system
of statistics of administrative reconsideration and response to reconsideration. As to problems concerning the concrete application
of the Administrative Reconsideration Law, the Legislative Affairs Office of the State Council should handle these matters according
to the provisions of the Decision on Strengthening the Work Concerning the Interpretation of Law adopted by the Standing Committee
of the National People’s Congress.

    3.Reinforce supervision and inspection over administrative reconsideration activities

    The Administrative Reconsideration Law clearly stipulates the supervision over administrative reconsideration
activities, and clearly specifies the legal liability for law-breaking acts of administrative reconsideration organs and their staff
members. Governments at or above the county level and their departments should strictly reinforce supervision over administrative
reconsideration activities, and take the inspection  over circumstances as priority, such as whether accepting administrative
reconsideration case according to law, whether transferring application of administrative reconsideration according to provisions,
and whether conducting review and making decisions of administration reconsideration according to law; once the circumstances are
found such as not accepting applications for administrative reconsideration that should be accepted, not making decisions that should
be made, as well as that officials shelter officials or any other serious neglect of duties, investigation and punishment should
be conducted in strict accordance with law, and correction should be firmly made; where legal liability should be investigated, it
should be done according to law, first of all, the legal liability of responsible persons should be investigated. The working agencies
of legal system under the governments at or above the county level should, according to uniform deployment of the governments at
the same level, concretely organization and undertake the work in relation to the supervision and inspection over administrative
reconsideration. Where a working agency of legal system finds that the governments at lower level or the departments under the governments
at the same level do not accept applications for administrative reconsideration without justified reasons,  do not make
administrative reconsideration decisions within legal time limit, do not fulfil the administrative reconsideration decisions, retaliate
the applicants or commit any other acts violating th
e Administrative Reconsideration Law, it should offer suggestions of deposition to the government at the same level or to the administrative
supervisory department at the corresponding level. The administrative departments received suggestions should dispose it within two
months according to the Administrative Reconsideration Law and the relative laws and administrative regulations.

    4.Provide necessary guarantee to the normal carrying out of administrative reconsideration work

    Administrative reconsideration law stipulates: “The organs in charge of administrative reconsideration should
not claim any fee from applicants. The cost of administrative reconsideration should be considered as part of administrative cost
of the administrative organ, and be provided by finance at the same level.” Administrative reconsideration is a kind of self-correcting
activity for administrative organs, to correct any mistake is obligation of administrative organs. All the departments concerned
should uphold the principle of “serving people by heart”, deal with the cases according to law, and claim no fee from the applicants.
The cost of administrative reconsideration should be listed in normal administrative cost of the administrative departments. Financial
departments should guarantee that. The administrative reconsideration outlay should be listed into a special list, and cannot be
appropriated. Administrative reconsideration departments should safeguard that necessary equipment and working condition be provided.

    5.Through implementing administrative reconsideration, strengthen establishing governmental legal system,
improve administration according to law

    The 15th Congress of the Party adopted the principle of governing the country according to law as the basic
strategy of the Party in leading the people to govern the country, and ordered definitely that “all administrative organs should
execute administration according to law”. The Second Session of the Ninth National People’s Congress passed an amendment to Constitution
that “The People’s Republic of China governs the country according to law, and making it a socialist country ruled by law.” Administration
is an organic part of rule by law. Strict administration by law is of vital importance to the realization of rule by law. “Report
on Government Work” approved by the Second Session of the Ninth National People’s Congress put forward that the government should
strengthen legalization of administration, enforce legal supervision, advance legal administration; and one of the three important
things for implementing basic strategy of rule by law is expressly defined as “administering strictly, constructing an honest, diligent
efficient and realistic government”. New circumstances require new tasks for legal work of the government. Governments at various
levels and their organs should understand the significance of legal construction in the new period, put reinforcing legal construction
in an important position, and list it in agenda. At present, through implementing administrative reconsideration law, the government
should advance legalization, execution of law and supervision over it greatly.

    Administrative reconsideration is a kind of work, which has a strong legal character, specialize to great
degree, covers vast fields. An administrative organ, which has an intimate knowledge of law and is relatively detached, is needed
to deal with administrative reconsideration. Administrative reconsideration law stipulates: ” The administrative organs discharging
administrative reconsideration duty are administrative reconsideration organs. The institutions of these organs are responsible for
dealing with cases concerning administrative reconsideration. Their duties are as follows;(1) Accept application for administrative
reconsideration;     (2) Investigate related organizations and people, acquire necessary evidence, and consult
documents and materials; (3) Examine specific administrative conduct concerning the application for administrative reconsideration,
draw up decision on administrative reconsideration; (4) Deal with the application regulated by Article 7 of this Law, or forward
it; (5) Made relevant suggestion towards administrative organs, which violate this Law; (6) Deal with the suits, which are caused
by disagreeing with decision on administrative reconsideration; (7) Other duties prescribed by laws and regulations. According to
these regulations, the working agencies of legal system in administrative organs should take important responsibility in administrative
reconsideration. The implementation of administrative reconsideration and image of administrative organs hinge on completely and
correctly implementing duties prescribed by administrative reconsideration law. Holding the principle of being highly responsible
for people, the working agencies of legal system should take facts as basis, laws as criteria, and strictly discharge legal duties.
Governments at or above the county level and their departments should follow the principles made by the State Council in strengthening
the work of legal system in governmental structure reform, reinforce
legal construction, establish a politics-sensitive, good style of working, and professional legal team. The setting of the working
agencies of legal system and personnel should be adapted to legal work of local government (including administrative reconsideration
work). Necessary conditions should be created for the working agencies of legal system to launch their work, so that their function
of aiding administrative leaders could be completely fulfilled.  

    After receiving this Circular, all localities and departments should seriously study and implement it according
to actual circumstances. The relevant major circumstances and problems arising from the implementation of the Administrative Reconsideration
Law should be promptly reported to the Legislative Affairs Office of the State Council.





THE INTERIM MEASURES FOR RECOGNITION OF THE EXPORT BASE FOR HIGH/NEW TECHNOLOGICAL PRODUCTS WITHIN THE STATE HIGH/NEW TECHNOLOGICAL INDUSTRIAL DEVELOPMENT AREAS

The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Science and Technology

Circular of the Ministry of Science and Technology and the Ministry of Foreign Trade and Economic Cooperation on Printing and Distributing
the Interim Measures for Recognition of the Export Base for High/new Technological Products within the State High/new Technological
Industrial Development Areas

GuoKeFaHuoZi [1999] No.523

November 16, 1999

The people’s governments of the various provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan:

The implementation programme for the action plan of flourishing trade by means of science and technology has been decided. Accordingly,
a number of export bases for the State high/new technological products shall be chosen within the State high/new technological industrial
development areas to be given more support to enable them to become in a short time the export base for the high/new technological
products with distinguishing features and their own export products. To regulate the examination and approval formalities for the
export base for high/new technological products, the Interim Measures for Recognition of the Export Base for high/new technological
Products within the State high/new technological Industrial Development Areas are printed and distributed to you for trying out.

Attachment

The Interim Measures for Recognition of the Export Base for high/new technological Products within the State high/new technological
Industrial Development Areas

Article 1

These Measures are enacted with the purposes of implementing the action plan of flourishing trade by means of science and technology,
promoting exports of China’s high/new technological products, quickening internationalization process of the State high/new technological
industrial development areas, and regulating the management of the export base for high/new technological products within the state
high/new technological industrial development areas.

Article 2

These Measures are applicable to the State high/new technological industrial development areas (hereinafter referred to as the State
high- tech areas for short).

Article 3

The export base for high/new technological products within the State high-tech areas shall be created with the approval of the Ministry
of Science and Technology and the Ministry of Foreign Trade and Economic Cooperation, whose daily work of management and supervision
shall be responsible by the Huoju high/new technological Industrial Development Centre (hereinafter simplified as Huoju Centre for
short) under the Ministry of Science and Technology.

Article 4

Conditions for applying for the export base for high/new technological products within the State high-tech areas are as follows:

(1)

The general development in the State high-tech areas is rapid with good results in soft and hard environmental construction, vigorous
development in high/new technological products, sound system for fostering and innovation, and excellent services provided for export
enterprises;

(2)

A faster export growth of products produced by the high/new technological enterprises within the areas, which is capable to formulate
a big-sized export capacity of leading products. And over 30% of export products enjoy independent intellectual property rights;

(3)

The annual export volume within the areas exceeds 100 million U.S. dollars; those below 100 million U.S. dollars should have over
10 back- bone export enterprises with annual export volume of 3 million U. S. dollars each;

(4)

high/new technological products are the main exports, whose export earnings in foreign exchange accounting for over 50% of the total
earnings in foreign exchange in the areas;

(5)

The local Government pays attention to the construction and development of the export base, which has laid down relevant policy measures
and given financial support needed;

(6)

Having a small number of highly trained and effective managerial personnel with good experience in foreign trade.

Article 5

Application for the export base for high/new technological products within the State high-tech areas should be submitted to the Ministry
of Science and Technology and the Ministry of Foreign Trade and Economic Cooperation by the Governments of the various provinces,
autonomous regions, municipalities directly under the Central Government and municipalities separately listed on the State plan,
and a copy should be sent to the Huoju Centre. Entrusted by the Ministry of Science and Technology and the Ministry of Foreign Trade
and Economic Cooperation, the Huoju Centre shall organize the examination and verification work. Those meeting the prescribed conditions
of the Article 4 of the present Measures, their export bases for high/new technological products within the State high-tech areas
shall be established with the approval of the Ministry of Science and Technology and the Ministry of Foreign Trade and Economic Cooperation.

Article 6

Dynamic management shall be implemented on the export base for high/new technological products within the State high-tech areas, by
the Ministry of Science and Technology and the Ministry of Foreign Trade and Economic Cooperation. Warning and even cancellation
shall be given to those slow developed export bases for high/new technological products within the State high-tech areas.

Article 7

In the process of recognizing, by the Ministry of Science and Technology and the Ministry of Foreign Trade and Economic Cooperation,
the export base for high/new technological products within the State high-tech areas, the Ministries may loosen in certain degree,
in consideration of the rational distribution of industries, the conditions for recognition of those in the central and western areas.

Article 8

The policy of giving special support implemented by the State to the export base for high/new technological products within the State
high-tech areas shall separately be formulated.

Article 9

The present Measures shall enter into force as of the date of promulgation.



 
The Ministry of Foreign Trade and Economic Cooperation, the Ministry of Science and Technology
1999-11-16

 






DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON ADDING LAWS TO THE LIST OF THE NATIONAL LAWS IN ANNEX III TO THE BASIC LAW OF THE MACAO SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’S REPUBLIC OF CHINA

Decision of the Standing Committee of the National People’s Congress on Adding Laws to the List of the National Laws in Annex III
to the Basic Law of the Macao Special Administrative Region of the People’s Republic of China

(Adopted at the 13th Meeting of the Standing Committee of the Ninth National People’s Congress on December 20, 1999) 

The following national Laws shall be added to Annex III to the Basic Law of the Macao Special Administrative Region of the People’s
Republic of China: 

1. The Law on the Exclusive Economic Zone and Continental Shelf of the People’s Republic of China; 

2. Law of the People’s Republic of China on Garrisoning the Macao Special Administrative Region. 

The above-mentioned national laws shall be promulgated or implemented through legislation by the Macao Special Administrative Region
as of December 20, 1999.

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






CIRCULAR OF STATE ADMINISTRATION OF TAXATION CONCERNING THE ISSUE OF HANDLING THE TAXATION OF ENTERPRISES WITH FOREIGN INVESTMENT AND FOREIGN ENTERPRISES ENGAGED IN CONSULTING BUSINESSES

The State Administration of Taxation

Circular of State Administration of Taxation Concerning the Issue of Handling the Taxation of Enterprises with Foreign Investment
and Foreign Enterprises Engaged in Consulting Businesses

GuoShuiFa [2000] No.82

May 12, 2000

In recent years, numerous accounting, auditing, consulting and law firms outside of China (hereinafter collectively cited as “Consulting
Enterprises Outside of China”) have entered into China to engage in businesses such as taxation, accounting, auditing, law, consultation,
etc. (hereinafter referred to as “Consulting Businesses”). Some of them have established enterprises with foreign investment which
are specially engaged in Consulting Businesses in China. Others have set up their agencies in China. Depending on the particularities
of the businesses, some Consulting Enterprises Outside China participated in consulting activities within China; some directly sent
their staff to conduct business in China, and others did so jointly with enterprises with foreign investment and agencies within
China. In order to regulate the taxation administration, we now pronounce as follows with regard to the issue of handling the taxation
on the income derived by the enterprises with foreign investment, agencies and consulting enterprises which are engaged in Consulting
Businesses within China:

1.

The issue of handling the taxation on the income of enterprises with investment and agencies within China derived from Consulting
Businesses:

The income, acquired by enterprises with investment and agencies through signing contracts (including the contracts signed by agencies
on behalf of its head office and the business performed actually by agencies) with clients and providing them with services in the
form of Consulting Businesses, shall be fully regarded as the income of enterprises with foreign investment and agencies, and they
should report and pay business tax and enterprise income tax at the places where their establishments are located.

2.

The issue of handling the taxation on the income acquired by Consulting Enterprises Outside China for solely providing clients with
the services of Consulting Businesses:

The income acquired by Consulting Enterprises Outside China through solely signing contract with clients and providing them with the
services of Consulting Businesses, the said enterprises shall report and pay business tax and enterprise income tax with respect
to the entire income, provided that all the provided service occurs within China. In case the provided service occurs within China
as well as outside China, the corresponding income shall be divided into income within China and income outside China on the basis
of the place where the service occurs, and they shall report and pay tax with respect to the income acquired through providing service
within China. Generally, the business income that is derived from the said Consulting Businesses and is provided to clients within
China shall be divided as that within China and shall be no less than 60% of the total income.

If all the consulting service provided to clients is outside China, the corresponding income will not be taxed in China.

3.

The issue of handling the taxation on the income acquired by Consulting Enterprises Outside China and enterprises with foreign investment
or agencies within China through jointly providing the services of Consulting Businesses to clients:

The income, acquired by Consulting Enterprises Outside China and enterprises with foreign investment or agencies within China through
jointly signing the contracts with clients and providing them with Consulting Businesses together, shall be firstly divided into
the respective income of the enterprises outside China and that within China according to the work load or reasonable proportions
stipulated in the contracts. Enterprises with foreign investment or agencies within China shall report and pay business tax and enterprise
income tax with respect to their delegated income. If Consulting Enterprises Outside China and their affiliated enterprises or agencies
within China jointly provide the services of Consulting Businesses to clients in China, the proportion of income delegated as theirs
shall be no less than 60% of the total income of the business.

The income, which is derived from the said Consulting Businesses in which enterprises outside China also sent staff to participate
and is delegated as their income, shall be defined as their business income within China according to the place where the service
occurs, and shall be no less than 50%. The said enterprises shall report and pay business tax and enterprises income tax in accordance
with relevant regulations.

4.

The taxable business income within China acquired by Consulting Enterprises Outside China stated in Article 1 and 2 herein, shall
be incorporated into the income of their agencies and be taxed, provided that the said enterprises outside China and their agencies
within China jointly provided the business. If the Consulting Enterprises Outside China have no agencies within China, or they do
not jointly provide the business in spite of having agencies within China, it shall be deemed that the said enterprises have places
of business within China, and the taxpayer shall withhold the tax payment.

5.

In case that the above-mentioned provisions involve Consulting Businesses, which are conducted by consulting enterprises from those
countries, or the Hong Kong Special Administration Region, which have signed agreements or arrangements of avoidance of double taxation
with China, it shall be determined whether or not they constitute permanent organizations according to the stipulations regarding
permanent organization provided in said agreements or arrangements. Those that constitute permanent organizations shall be taxed
on the enterprises income according to the said circular.

6.

The said circular shall come into effect as of June 1, 2000. Matters which have been handled prior to the execution of the said circular
will not be adjusted again; those which have not been handled or whose relevant contracts have not expired shall be carried out according
to the said circular.



 
The State Administration of Taxation
2000-05-12

 






CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON THE EXECUTION OF THE CIRCULAR CONCERNING THE RELEVANT ISSUES OF SOFTWARE EXPORTS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on the Execution of the Circular Concerning the Relevant Issues of Software
Exports

HuiFa [2001] No.28

February 22, 2001

The sub-administrations of the State Administration of Foreign Exchange; the departments of foreign exchange administration of Beijing
and Chongqin; and the sub-administrations of Dalian, Qingdao, Ningbo, Xiamen and Shenzhen:

In order to promote the software export enterprises to export their products and earn foreign exchange income, the relevant issues
of the execution of item 7) of Article 1 of the Circular Concerning the Relevant Issues of Software Exports (WaiJingMaoJiFa [2000]
No.680 ) (hereinafter referred to as the Circular) promulgated jointly by the Ministry of Foreign Trade and Economic Cooperation,
the Ministry of Information Industry, the State Administration of Taxation, the General Administration of Customs, the State Administration
of Foreign Exchange and the State Administration of Statistics are hereby defined as follows:

1.

The domestic-funded software enterprises of self-management export (hereinafter referred to as “enterprises”) that meet the conditions
for account opening as provided by the Circular shall, when applying to the foreign exchange administrations for opening accounts
of foreign exchange settlement, provide the “Certificate of Cognizance of Software Enterprise” issued by the competent department
under the Ministry of Information Industry, apart from providing the relevant materials as provided for in the Procedures for the
Keeping of Limited Amount of Foreign Exchange Income by Domestic-funded Enterprises.

2.

When making the examination and verification of account opening of an enterprise, the foreign exchange administration shall examine
and verify whether the enterprise is in the “List of Honorable Enterprises”, and shall determine the maximum limit of the account
on the basis of 15% of the sum of cancellation after verification of export earnings in foreign exchange of last year issued by the
foreign exchange administration of the place where the enterprise is located. The sum cancelled after verification of export earnings
in foreign exchange that is used to determine the limit shall be kept together with the materials for account opening, for the purpose
of check and verification.

3.

The sub-administrations shall strictly take the sum cancelled after verification of export earnings in foreign exchange of last year
that actually occurred to the enterprise as the base, and determine the limit of the account of foreign exchange settlement according
to the prescribed proportion. The limit may not be broken without the approval of the general administration.

The sub-administrations shall transmit this Circular to their branches as soon as possible after receiving it.



 
The State Administration of Foreign Exchange
2001-02-22

 






1...210211212Page 212 of 212

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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