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CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON TAXATION OF THE INCOME FROM THE INTEREST OBTAINED BY FOREIGN BANKS FROM THE FOREIGN-CAPITAL FINANCIAL INSTITUTIONS IN CHINA

The State Taxation Administration

Circular of the State Administration of Taxation on Taxation of the Income from the Interest Obtained by Foreign Banks from the Foreign-capital
Financial Institutions in China

GuoShuiHan [1997] No.372

June 19, 1997

The state and local tax bureaus of various provinces, autonomous regions, municipalities directly under the Central Government and
municipalities separately listed on the State plan:

It is enquired whether interests of loan by the foreign banks which provide the loan to the financial institutions within the territory
of China such as foreign-capital banks, the branches of the foreign banks, Chinese-foreign joint venture banks, foreign-capital financial
companies and financial companies of Chinese-foreign joint venture (hereinafter referred to as foreign-capital financial institutions)
is applied to the tax exemption stipulated in the 3rd Subparagraph of Paragraph 3 of Article 19 of the Income Tax Law of the People’s
Republic of China on the Enterprises with Foreign Investment and Foreign Enterprises (hereinafter referred to as Tax Law). Through
study, it should be clarified as follows:

According to the Article 65 of Rules for the Implement of the Tax Law, the foreign-capital financial institutions do not belong to
the state banks of China stipulated in the 3rd Subparagraph of Paragraph 3 of Article 19 of the Tax Law. Therefore, tax should be
levied on the income from interest of loan according to the relevant provisions.



 
The State Taxation Administration
1997-06-19

 







CIRCULAR OF THE MINISTRY OF FINANCE, THE STATE ADMINISTRATION OF TAXATION AND THE PEOPLE’S BANK OF CHINA ON THE TAXATION OF OPERATING RMB BUSINESS BY FOREIGN-CAPITAL FINANCIAL INSTITUTIONS

The Ministry of Finance, the State Administration of Taxation, the People’s Bank of China

Circular of the Ministry of Finance, the State Administration of Taxation and the People’s Bank of China on the Taxation of Operating
RMB Business by Foreign-capital Financial Institutions

CaiShuiZi [1997] No.52

May 5, 1997

With the deep development of reform and opening-up and expanding of the financial businesses, the foreign-capital financial institutions
are allowed to deal with the business of RMB for trial in the parts of China from 1997 approved by the State Council. In order to
standardize the tax policies and regulations and promote equal competitions among the capital financial institutions at home and
abroad, the taxation policy on undertaking the RMB currency by the foreign capital financial institutions should be clarified as
follows:

I.

The foreign-capital financial institutions that deal with the business of RMB for trial should keep the accounting of RMB and foreign
currency apart and calculate the tax of respectively.

II.

The corporate income tax of earnings from the business of RMB by the foreign-capital financial institutions should be paid according
to the Income Tax Law on Enterprises with Foreign Investment and Foreign Enterprises and its Rules for the Implementation. The dealers
should pay the business income tax at the 30% rate and local tax at the 3% rate from the date when the undertaking the business of
RMB is approved and do not enjoy the preferential tax policy of one exemption and two reduction. The attribution of the business
income tax paid by foreign-capital financial institutions is carried out by the provisions of the document of CaiYuZi [1996] No.200

III.

The sales tax of the foreign-capital financial institutions that deal with the business of RMB should be paid on the base of the relevant
provisions on the unified sales tax of the state, the same as the domestic-funded financial enterprises.

The Circular entered into force as of January 1, 1997.



 
The Ministry of Finance, the State Administration of Taxation, the People’s Bank of China
1997-05-05

 







PROCEDURES FOR THE ELECTION OF DELEGATES OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION TO THE NINETH NATIONALPEOPLE’S CONGRESS

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The National People’s Congress Status of Effect  In Force
Date of Promulgation  1997-03-14 Effective Date  1997-03-14  


Procedures for the Election of Delegates of the Hongkong Special Administrative Region of the People’s Republic of China to the Nineth
NationalPeople’s Congress



(Adopted at the Fifth Session of the Eighth National People’s Congress

on March 14, 1997)

    Article 1  These Procedures are formulated in accordance with the
Constitution of the People’s Republic of China, the Basic Law of the Hongkong
Special Administrative Region of the People’s Republic of China and the
provisions of Paragraph 3, Article 15 of the Election Law of the National
People’s Congress and the Local People’s Congresses at All Levels of the
People’s Republic of China and in the light of the actual conditions of the Hongkong Special Administrative Region.

    Article 2  The election of delegates of the Hongkong Special Administra-
tive Region to the Nineth National People’s Congress shall be presided over
by the Standing Committee of the National People’s Congress.

    Article 3  The quota of delegates to be elected from the Hongkong
Special Administrative Region to the Nineth National People’s Congress
shall be thirtysix.

    Article 4  The delegates to be elected from the Hongkong Special
Administrative Region to the National People’s Congress must be Chinese
citizens from among the residents in the Hongkong Special Administrative
Region.

    Article 5  An election conference for the delegates to the Nineth
National People’s Congress shall be established in the Hongkong Special
Administrative Region. The election conference shall be composed of Chinese
citizens from among members of the Recommendation Commission of the first
government prescribed in the Concerning the Procedures of the Formation of the First Government and
the Legislative Council of the Hongkong Special Administrative Region>,
and those residents of the Hongkong Special Administrative Region who are
not members of the Recommendation Commission but are members of the Eighth
National Committee of the Chinese People’s Political Consultative Conference
and members of the Interim Legislative Assembly of the Hongkong Special Admini-
strative Region who are Chinese citizens save that he or she who shows his or
her unwillingness to participate.

    List of members of the election conference shall be published by the
Standing Committee of the National People’s Congress.

    Article 6  The first session of the election conference shall be convened
by the Standing Committee of the National People’s Congress for the recommenda-
tion and election of eleven members of the election conference which shall
constitute the presidium which shall recommend and elect a standing chairman
from among its members.

    The presidium shall preside over the election conference.

    The election conference shall formulate specific election procedures in
accordance with these Procedures pursuant to the proposal of the presidium.

    Article 7  More than ten members of the election conference may
jointly put forth candidates for delegates. The number of candidates for
delegates each member puts forth in joint recommendation shall not exceed
the quota.

    Article 8  Candidates for the Nineth National People’s Congress put
forth by the election conference shall be one fifth to one half more
than the number to be elected and differential election shall be held.

    Election by direct ballot shall be held in case the number of nominated
candidates does not exceed tha one half differential percentage of the
number to be elected. In case the number of nominated candidates exceeds
the one half differential percentage of the number to be elected, all
members of the election conference shall cast their votes, the list of official candidates shall be determined and election by ballot
shall be
held in accordance with the order of precedence of the number of votes
for the candidates and the differential percentage of not more than one
half.

    Article 9  Election of delegates to the Nineth National People’s
Congress by the election conference shall be by ballot.

    When the election conference holds election, votes cast which exceed
the number of voters shall be null and void, while votes cast which are
equal to or less than the number of voters shall be valid.

    The number of candidates voted for on each ballot paper which exceed
the number to be elected shall be invalid, those which are equal to or
less than the number to be elected shall be valid.

    Article 10  Candidates of delegates with more votes shall be elected.
In case the number of votes is equal and the delegate-elect can not be
determined, one more ballot shall be cast with respect to candidates with
equal number of votes and one who gains more votes shall be elected.

    Article 11  The election results shall be announced by the presidium
and submitted to the Delegate Qualification Review Committee of the Standing
Committee of the National People’s Congress.

    The Standing Committee of the National People’s Congress shall confirm
the qualification of the delegates and publish the list of delegates on the
basis of the report submitted by the Delegate Qualification Review Committee.






REGULATIONS ON THE ADMINISTRATION OF URBAN ROADS

Category  COMMUNICATIONS AND TRANSPORT Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1996-06-04 Effective Date  1996-10-01  


Regulations on the Administration of Urban Roads

Chapter I  General Provisions
Chapter II  Planning and Building
Chapter III  Maintenance and Repair
Chapter IV  Road Administration
Chapter V  Penalty Provisions
Chapter VI  Supplementary Provisions

(Promulgated by Decree No.198 of the State Council of the People’s

Republic of China on June 4, 1996)
Chapter I  General Provisions

    Article 1  These Regulations are formulated for the purposes of
strengthening the administration of urban roads, guaranteeing urban roads in
good condition, giving full play to the function of urban roads and promoting
the urban economy and social development.

    Article 2  For the purpose of these Regulations, the term “urban road”
shall mean either urban roads and bridges providing passage to vehicles and
passengers and with certain technical conditions or attached facilities of
such roads and bridges.

    Article 3  These Regulations shall apply to the planning, building,
maintenance, repair and the administration of urban roads.

    Article 4  The administration of urban roads shall follow the principles
of unified planning, building complete network, coordinate development and
laying equal stress on building, maintenance and administration.

    Article 5  The state shall encourage and support the research in urban
road science and technology, spread advanced technology and raise the
scientific and technical level with regard to the administration of urban
roads.

    Article 6  The administrative department for construction of the State
Council shall take charge of the administration of urban roads throughout the
country.

    The administrative department for urban construction of people’s
governments of provinces and autonomous regions shall be responsible for the
administration of urban roads within their respective regions.

    The administrative department for municipal engineering of municipal
people’s governments at and above the county level shall be responsible for
the administration of urban roads within their respective regions.
Chapter II  Planning and Building

    Article 7  Municipal people’s governments at and above the county level
shall organize the departments of municipal engineering, city planning,
public security and communications, etc. to work out a planning for the
development of urban roads in accordance with the general city planning.

    The administrative department for municipal engineering shall, in
accordance with the planning for the development of urban roads, make an
annual plan for the building of urban roads and implement the plan after it
has been approved by the municipal government.

    Article 8  The funds for the building of urban roads may, in accordance
with relevant provisions of the state, be raised through various channels
such as government investment, pooling resources, domestic or external loans,
income from compensated use of state-owned land and issuing bonds.

    Article 9  The building of urban roads shall comply with the technical
standards of urban roads.

    Article 10  In case government invests to build an urban road, the
construction shall be organized by the administrative department for
municipal engineering in accordance with the planning for the development of
urban roads and the annual plan for the building of urban roads.

    The building of urban roads through investment by units shall be
consistent with the planning for the development of urban roads and must be
submitted to the administrative department for municipal engineering for
approval.

    The building of roads in urban residential quarters or development areas
shall be incorporated in the plan for the development and construction of the
residential quarter or development area as a necessary part of the plan.

    Article 11  The state encourages domestic and foreign enterprises, other
organizations and individuals to make investment in the building of urban
roads in accordance with the planning for the development of urban roads.

    Article 12  The plans for the installation of various pipes and lines and
pole lines attached to urban roads for urban drainage, supply of water, gas,
heating power and electricity, communications and fire fighting, etc. shall
be coordinated with the planning for the development of urban roads and the
annual plan for the building of urban roads. Such facilities shall be
installed in step with the building of urban roads by following the principle
of underground operations first.

    Article 13  In case a newly built urban road intersects with a main
railway line, the relevant city planning shall, in the light of the need,
leave space for the future construction of overpass installations.

    Intersections of urban roads and railway lines shall be constructed in
accordance with the state’s technical standards, and overpass installations
shall be built at such intersections step by step in the light of the need.
The investment needed for the construction of overpass installations shall be
determined through consultation by relevant departments according to relevant
provisions of the state.

    Article 14  Bridges over and tunnels under rivers shall be built in
accordance with the state’s flood control standards, navigation standards and
other relevant technical standards.

    Article 15  Municipal people’s governments at and above the county level
shall, in accordance with the technical standards for urban roads and in a
planning way, rebuild and broaden junctures of urban roads and highways, and
the department for highway administration may give financial support in
accordance with relevant provisions of the state.

    Article 16  A unit engaging in design or building of urban roads must
have a qualification degree and take on corresponding design or building of
urban roads in accordance with its qualification degree.

    Article 17  Urban roads shall be designed and built in strict accordance
with the national and local technical standards for urban road design and
building.

    A system for supervision of construction quality shall be adopted in
urban road building.

    Urban roads may be open to traffic only after passing the inspection;
those without inspection or failing to pass the inspection may not be open to
traffic.

    Article 18  A guarantee system shall be adopted to urban roads. The
guarantee period for urban roads shall be a year, counting from the date of
its opening to traffic. The relevant unit shall be responsible for any
construction quality problem arising within the guarantee period.

    Article 19  With respect to large-scale bridges and tunnels built with
loans or pooling resources, the administrative department for municipal
engineering may, within a certain period, charge tolls from passing vehicles
(excluding military vehicles). Tolls charged may not be used for purposes
other than repaying the loans or pooling resources.

    The scope and period for charging tolls shall be determined by the
people’s government of province, autonomous region or municipality directly
under the central government.
Chapter III  Maintenance and Repair

    Article 20  With regard to urban roads built under its own organization
and under its own administration, the administrative department for municipal
engineering shall, in the light of the grades and amount or number of the
urban roads as well as the maintenance and repair quotas, fix the financial
appropriations annually for the maintenance and repairs, and arrange the
maintenance and repair funds in a unified way.

    Article 21  Units undertaking to maintain and repair urban roads shall
strictly implement the technical norms for urban road maintenance and repair,
conduct the maintenance and repair regularly and ensure the quality of the
maintenance and repair works.

    The administrative department for municipal engineering shall carry out
supervision over and inspection on the quality of the maintenance and repair
works, and ensure the urban roads in good condition.

    Article 22  The maintenance and repair of urban roads built under the
organization and under the administration of the administrative department
for municipal engineering shall be entrusted to an urban road maintenance
and repair unit(s) by said department. Urban roads built with investment by a
unit and under the control of the same unit shall be maintained and repaired
by the investing unit or other units entrusted by the investing unit. Roads
in residential quarters and development areas shall be maintained repaired by
the construction unit or other units entrusted by the construction unit.

    Article 23  Checkwells and case lids installed on urban roads for various
pipes and lines and the attached facilities of urban roads shall conform to
the standards for urban road maintenance. In case where any of them is
damaged or missing resulting in being harmful to traffic and safety, the
relevant post_title unit shall supply the missing or repair the damages in good
time.

    Article 24  Urban road maintenance and repair works shall be completed
within prescribed periods and clear signs and protective walls shall be put
and set up on the operation sites so as to ensure the safety of pedestrians
and traffic.

    Article 25  Vehicles special for urban road maintenance and repair shall
bear a uniform symbol; when carrying out tasks, they are not subject to
restrictions on routes or directions so long as the traffic safety is ensured
and the traffic can be kept going.
Chapter IV  Road Administration

    Article 26  When performing duties, personnel with duties of road
administration of the administrative department for municipal engineering
shall, in accordance with relevant provisions, wear a badge and hold the
certificate.

    Article 27  The following acts shall be forbidden on urban roads:

    (1) occupy or dig urban roads without authorization;

    (2) caterpillar tractors, iron-wheel tractors or trailers or overweight,
overheight or overlength vehicles’ going on urban roads without authorization;

    (3) motor vehicles’ testing brakes on bridges or non-designated urban
roads;

    (4) construct buildings or structures on urban roads without
authorization;

    (5) erect along bridges gas pipes with a pressure of 4 kg./ sq.cm.
(0.4 megopascal) or power lines with high-tension of more than 10 Kv. or
other inflammable or explosive pipes or lines;

    (6) put billboards or hang suspended articles on bridges or road lamp
installations without authorization; or

    (7) other activities damaging or occupying urban roads.

    Article 28  Where any caterpillar tractor, iron-wheel tractor or trailer
or any overweight, overheight or overlength vehicle needs to go through urban
roads, a permit shall be obtained in advance from the administrative
department for municipal engineering, and the vehicle shall go through at the
time and along the route designated by the department for administration of
public security and communications.

    Military vehicles which need to go through urban roads when performing
duties are not subject to provisions of the preceding paragraph, but shall
take safety and protective measures in accordance with relevant provisions.

    Article 29  Only with the approval of the administrative department for
municipal engineering may pipes, lines or pole lines be built attaching to
urban roads.

    Article 30  Without the approval of the administrative department for
municipal engineering and the department for the administration of public
security and communications, no unit or individual may occupy or dig urban
roads.

    Article 31  When there is a need to temporarily occupy any urban road due
to some special reasons, an approval must be obtained from the administrative
department for municipal engineering and the department for the
administration of public security and communications. Only with such approval
may the urban road be occupied in accordance with relevant provisions.

    Those approved to temporarily occupy an urban road may not damage the
urban road and shall, upon the expiration of the occupation, immediately
clean up the occupied site and make the urban road restore to the original
state; those having made damages to the urban road shall make renovation or
give compensation.

    Article 32  Municipal people’s governments shall strictly control
occupying urban roads as fair grounds.

    When there is really a need to occupy urban roads as fair grounds, an
approval shall be obtained from the municipal people’s government at or above
the county level; those occupying urban roads as fair grounds without
authorization shall be ordered, by the administrative department for
municipal engineering, to evacuate and clean up the occupied urban roads and
make them restore to functions.

    The existing occupations of urban roads as fair grounds starting before
the implementation of these Regulations without the approval of the municipal
people’s government at or above the county level shall go through the
procedures for examination and approval in accordance with provisions of
these Regulations.

    Article 33  Those who are to dig urban roads for some engineering
operation shall go through the procedures for examination and approval with
the administrative department for municipal engineering and the department
for the administration of public security and communications by producing the
approval documents issued by the city planning department and relevant design
papers. Only with the approval of the administrative department for municipal
engineering and the department for the administration of public security and
communications can the urban roads be dug in accordance with relevant
provisions.

    Urban roads newly built, broadened or rebuilt may not be dug within five
years from its opening to traffic and urban roads having urdergone big
repair may not be dug within three years from the completion of the repair;
when there is a need to make digging due to some special reasons, an approval
shall be obtained from the municipal people’s government at or above the
county level.

    Article 34  When any pipe or line buried under urban roads has broken
down and needs rush repair, the urban road may be dug and rush repair
conducted immediately and, in the meanwhile, a report shall be submitted to
the administrative department for municipal engineering and the department
for the administration of public security and communications and the
procedures for approval shall be gone through within twenty-four hours.

    Article 35  Those approved to dig urban roads shall put clear signs and
set up protective walls on the operation sites and, after the completion of
the operation, immediately clean up the sites and notify the administrative
department for municipal engineering for inspection.

    Article 36  Those approved to occupy or dig urban roads shall make the
occupation or digging at the approved location and within the approved area
and period. When there is a need to change the location or extend the area or
period, they shall go through in advance the procedures for approving the
changes.

    Article 37  Those occupying or digging urban roads under the
administration of the administrative department for municipal engineering
shall pay fees for the occupation or renovation-after-digging of urban roads
to the said department.

    The schedule of fees for occupation of urban roads shall be drawn up by
the administrative department for construction of the people’s government of
province or autonomous region or by the administrative department for
municipal engineering of the people’s government of municipality directly
under the central government, and submitted to the departments of finance and
price control at the same level for ratification. The schedule of fees for
renovation-after-digging of urban roads shall be formulated by the
administrative department for construction of the people’s government of
province or autonomous region or by the administrative department for
municipal engineering of the people’s government of municipality directly
under the central government, and submitted to the departments of finance and
price control at the same level for filing.

    Article 38  The administrative department for municipal engineering may,
in the light of the need of municipal construction or other special needs,
make decision with regard to temporary occupation of urban roads by units or
individuals to reduce the area of occupation, shorten the period of
occupation or stop the occupation and, in accordance with the actual
situation, refund some of the fees already paid for the occupation.
Chapter V  Penalty Provisions

    Article 39  If anyone commits any of the following acts in violation of
these Regulations, the administrative department for municipal engineering
shall order them to suspend the design or building and make corrections
within a prescribed time limits, and may impose a fine up to 30,000 yuan or,
when circumstances are serious, suggest to the department issuing the
credentials for design or building that such credentials be revoked, if they
have already been issued:

    (1) undertake to design or build urban roads without qualifications for
design or building or beyond their qualification degree for design or
building;

    (2) fail to design or build urban roads in accordance with the technical
standards for design or operation; or

    (3) fail to conduct operations in accordance with design drawings or
alter the design drawings without authorization.

    Article 40  If anyone violates the provisions of Article 17 of these
Regulations by using without authorization urban roads that have not been
inspected or fail to pass the inspection, the administrative department for
municipal engineering shall set a time limit for correction and give a
warning and may concurrently impose a fine up to two percent of the cost of
the works.

    Article 41  If any unit engaging in urban road maintenance and repair
violates the provisions of these Regulations and fails to conduct regular
maintenance and repair or fails to complete the repairs within the prescribed
time limits and refuse to accept the supervision and inspection by the
administrative department for municipal engineering, the administrative
department for municipal engineering shall set a time limit for correction,
give a warning, and impose a disciplinary sanction to the person in charge
directly responsible and other person directly responsible.

    Article 42  If anyone violates the provisions of Article 27 of these
Regulations or commits any of the following acts, the administrative
department for municipal engineering or other relevant department shall set
a time limit for correction and may impose a fine up to 20,000 yuan, or if
any losses have been caused, the party responsible shall bear the
responsibility for compensation:

    (1) fail to supply or repair in good time the missing or damages of
checkwells or case lids of various pipes or lines on urban roads or
facilities attached to urban roads;

    (2) fail to put clear signs or set up protective walls on the urban road
operation sites;

    (3) fail to clean up the urban roads after the occupation or digging of
urban roads;

    (4) install various pipes, lines or pole lines attaching to urban roads
without going through procedures for approval in accordance with provisions;

    (5) fail to go through the procedures for approval in accordance with
relevant provisions after a rush repair of pipes or lines buried under urban
roads; or

    (6) fail to comply with the approved location, area or period in occupying
or digging urban roads, or change the location or extend the area or period
without going through the procedures for approval in advance.

    Article 43  Those violate provisions of these Regulations and commit a
crime shall be investigated for criminal responsibility by the judicial
organ; if the circumstances are not serious enough to constitute a crime but
a penalty for public security should be given, a penalty shall be imposed in
accordance with provisions of the Regulations on Administrative Penalties for
Public Security.

    Article 44  Personnel of the administrative department for municipal
engineering who commit a crime by neglecting duties, abusing powers or
playing favoritism and committing irregularities shall be investigated for
criminal responsibility or, if the circumstances are not serious enough to
constitute a crime, be given a disciplinary sanction in accordance with the
law.
Chapter VI  Supplementary Provisions

    Article 45  These Regulations shall go into effect on October 1, 1996.






CONSTRUCTION LAW

Category  INDUSTRY Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1997-11-01 Effective Date  1998-03-01  


Construction Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Building Permit
Chapter III  Construction Project Contract Issuance and Contracting
Chapter IV  Construction Project Supervision and Control
Chapter V  Construction Production Safety Management
Chapter VI  Construction Project Quality Control
Chapter VII  Legal Liability
Chapter VIII  Supplementary Provisions

(Adopted at the 28th Meeting of the Standing Committee of the Eighth

National People’s Congress on November 1, 1997 and promulgated by Order
No. 91 of the President of the People’s Republic of China on November 1,
1997)
Contents

    Chapter I  General Provisions

    Chapter II  Building Permit

     Section 1  Building Permit for Construction Project

     Section 2  Qualifications for Operations

    Chapter III  Construction Project Contract Issuance and Contracting

     Section 1  General Rules

     Section 2  Contract Issuance

     Section 3  Contracting

    Chapter IV  Construction Project Supervision and Control

    Chapter V  Construction Production Safety Management

    Chapter VI  Construction Project Quality Control

    Chapter VII  Legal Liability

    Chapter VIII  Supplementary Provisions
Chapter I  General Provisions

    Article 1  This Law is enacted with a view to enhancing supervision and
administration over building operations, maintaining order in the construction
market, ensuring the quality and safety of construction projects and promoting
the sound development of the building industry.

    Article 2  This Law shall be adhered to in engaging in building operations
and in the exercise of supervision and administration over building operations
within the territory of the People’s Republic of China.

    The building operations referred to in this Law mean construction of all
types of housing and the construction of their ancillary facilities as well
as their matching installation operations of wiring, piping and equipment.

    Article 3  The building operations shall ensure the quality and safety
of construction projects and ensure that they are in conformity with the
state safety standards for construction projects.

    Article 4  The State supports the development of the building industry,
supports scientific and technological research in construction to improve
the levels in the design of housing construction, encourages energy economy
and environmental protection, encourages adoption of advanced technologies,
advanced equipment, advanced techniques and new building materials and
modern mode of management.

    Article 5  In engaging in building operations, laws and regulations shall
be adhered to, and public interest of society and the legitimate rights and
interests of others shall not be infringed upon.

    No unit or individual shall hinder or obstruct the building operations
conducted in accordance with law.

    Article 6  The competent department of construction administration under
the State Council exercises uniform supervision and administration over
building operations nationwide.
Chapter II  Building Permit

    Section 1  Building Permit for Construction Project

    Article 7  A construction unit shall, prior to the start of construction
of a construction project, apply to the competent department of construction
administration of the people’s government at or above the county level of the
place wherein the project is to be located for a building permit pursuant to
the relevant state provisions; however, the below-ceiling small projects
determined by the competent department of construction administration under
the State Council are exceptions.

    A construction project the report for the start of construction of which
has been approved pursuant to the terms of reference and procedures prescribed
by the State Council shall no longer obtain a building permit.

    Article 8  Application for a building permit shall meet the following
terms:

    (1) having completed the formalities for the approval of land use for the
said construction project;

    (2) having obtained the planning permit in the case of the construction
project in an urban planning zone;

    (3) in the case of necessity of demolition and shifting, the pace of
demolition and shifting conforming to the requirements of construction;

    (4) having determined the construction enterprise;

    (5) having construction drawings and technical information which meet the
requirements for construction;

    (6) having specific measures for ensuring project quality and safety;

    (7) the construction funds having been made available; and

    (8) other terms prescribed by laws and administrative regulations.

    The competent department of construction administration shall, within
15 days from the date of receipt of an application, issue a building permit
for the application which conforms to the terms.

    Article 9  A construction unit shall start the construction within three
months from the date of acquisition of the building permit. For inability to
start the construction in time due to unforeseen reasons, an application for
extension shall be filed with the permit-issuing organ; the extension shall
be limited to two times, and each time shall not exceed three months. The
building permit shall be automatically annulled in the case of a construction
project which neither gets started nor applies for extension, or which has
exceeded the time limit for extension.

    Article 10  For suspension of construction of a construction project
under construction due to unforeseen reasons, the construction unit shall,
within one month from the date of suspension of the construction, submit
a report to the permit-issuing organ and carry out maintenance and
administration of the construction project in accordance with rules.

    A report shall be submitted to the permit-issuing organ when the
construction project resumes construction; prior to resumption of construction
of a construction project whose construction has been suspended for a year,
the construction unit shall submit a report to the permit-issuing organ for
the verification and examination of the building permit.

    Article 11  For inability to start construction in time or suspension of
construction due to unforeseen reasons, a construction project the report for
the start of construction of which has been approved pursuant to the relevant
provisions of the State Council shall submit a report to the approval
authority in time on the situation. For inability to start construction in
time exceeding six months due to unforeseen reasons, formalities for the
approval of the report for the start of construction shall be completed again.

    Section 2  Qualifications for Operations

    Article 12  Building construction enterprises, survey units, design
units and project supervision units engaging in building operations shall
have the following qualifications:

    (1) having a registered capital conforming to state provisions;

    (2) having specialized technical personnel with qualifications for legal
operations commensurate with the building operations engaged in;

    (3) having technical equipment for engaging in related building
operations; and

    (4) other qualifications prescribed by laws and administrative regulations.

    Article 13  Building construction enterprises, survey units, design
units and project supervision units engaging in building operations shall be
classified into different grades of human quality in accordance with such
human quality qualifications as the registered capital, specialized technical
personnel, technical equipment in their possession and achievements in
construction projects completed, and may engage in building operations within
the scope permitted by their respective human quality grades on acquisition of
the corresponding grade human quality certificates upon passing human quality
examination.

    Article 14  Specialized technical personnel engaging in building
operations shall obtain corresponding qualification certificates for
operations in accordance with law and engage in building operations
within the scope permitted by the qualification certificates for operations.
Chapter III  Construction Project Contract Issuance and Contracting

    Section 1  General Rules

    Article 15  The contract issuing unit and contracting unit of a
construction project shall conclude a contract in writing according to law
expressly defining the rights and obligations of the parties.

    The contract issuing unit and contracting unit shall comprehensively
fulfil the obligations agreed in the contract. The party that fails to
fulfil the obligations pursuant to the agreement in the contract shall bear
the liability for the breach of the agreement according to law.

    Article 16  Invitation to tender and bidding of the tender of contract
issuance and contracting of a construction project shall follow the principle
of openness, fairness and equal competition and the contracting unit shall
be selected on merit.

    For invitation to tender and bidding of the tender of construction
projects not prescribed by this Law, provisions of laws relating to invitation
to tender and bidding of the tender shall apply.

    Article 17  A contract issuing unit and its staff members shall not,
in the contract issuance of a construction project, accept bribes and
commissions or seek other benefits.

    A contracting unit and its staff members shall not employ such unfair
means as offering bribes, commissions or giving other benefits to the
contract issuing unit and its staff members to contract the project.

    Article 18  The cost of a construction project shall, pursuant to
relevant state provisions, be agreed upon by the contract issuing unit
and the contracting unit in the contract. For a construction project with
invitation to open tender, the agreement on its cost shall abide by the
provisions of laws on invitation to tender and bidding.

    The contract issuing unit shall, pursuant to the agreement in the
contract, make allocations for the project in time.

    Section 2  Contract Issuance

    Article 19  Construction projects shall practise contract issuance by
invitation to tender in accordance with law; those construction projects
not suitable for contract issuance by invitation to tender may adopt direct
contract issuance.

    Article 20  For a construction project for invitation to open tender,
the contract issuing unit shall, pursuant to the legal procedures and mode,
publish a tender notice providing tender documents carrying such contents as
major technical requirements of the project open to tender, main articles of
the contract, standards and methods of bid evaluation as well as procedures of
bid opening, bid evaluation and bid finalization.

    Bid opening shall be held in public at the time and place prescribed in
the tender document. Evaluation and comparison of bid proposals shall be
carried out pursuant to the standards and procedures for bid evaluation
prescribed in the tender document after the bids are opened, and selection
of the winning bidder made from among bidders with corresponding human quality
qualifications on merit.

    Article 21  Bid opening, bid evaluation and bid selection of the
construction project open to tender shall be organized and carried out
by the construction unit according to law and subject to the supervision
of the competent administrative departments concerned.

    Article 22  For a construction project following contract issuance
through tender, the contract issuing unit shall award the contract of the
construction project to the contracting unit winning the bid in accordance
with law. For a construction project following direct contract issuance,
the contract issuing unit shall award the contract of the construction
project to the contracting unit with corresponding human quality
qualifications.

    Article 23  The Government and its subordinate departments shall not
abuse their administrative powers in restricting contract issuing units
in awarding contracts of construction projects following contract issuance
through tenders to designated contracting units.

    Article 24  General contracting of construction projects shall be
encouraged and dismemberment of contract issuance of construction projects
shall be prohibited.

    The contract issuing unit of a construction project may award in total
the contract of surveying, design, construction and equipment procurement
of the construction project to a general contracting unit of the project.
It may also award one item or several items of surveying, design, construction
and equipment procurement of the construction project to a general contracting
unit of the project; however, it shall not dismember a construction project
which should be completed by one single contracting unit into several parts
for awarding contracts to several contracting units.

    Article 25  For building materials, building structural pieces and parts
and equipment to be procured by the contracting unit of the project pursuant
to the agreement in the contract, the contract issuing unit shall not
designate the contracting unit in the procurement of building materials,
building structural pieces and parts and equipment for the project, nor
shall it designate the manufacturers and suppliers of the same.

    Section 3  Contracting

    Article 26  The contracting units of construction projects shall contract
projects with human quality certificates obtained in accordance with law and
within the business scope permitted by their human quality grades.

    Building construction enterprises shall be prohibited to contract
projects beyond the business scope permitted by their respective human quality
grades or in the name of other building construction enterprises in any form.
Building construction enterprises shall be prohibited to permit in any form
other units or individuals in the use of their human quality certificates,
business licences to contract projects in the name of their respective
enterprises.

    Article 27  Large construction projects or construction projects with
complex structures may be jointly contracted by more than two contracting
units. Parties to the joint contract shall bear joint responsibilities in
the implementation of the contract.

    In the case of a joint contract by more than two units with different
human quality grades, the project shall be contracted in accordance with
the business scope granted to the unit with lower human quality grade.

    Article 28  Subcontracting to others of the entire construction project
contracted by the contracting unit shall be prohibited. Subcontracting to
others in the name of subcontracting after dismemberment of the entire
construction project contracted by the contracting unit shall be prohibited.

    Article 29  The general contracting unit of a construction project may
award contracts of parts of the contracted project to subcontracting units
with corresponding human quality qualifications; however, except for the
subcontracting agreed upon in the general contracting contract,
acknowledgement of the construction unit shall be obtained. In the case of
general contracting of construction, construction of the main structure of the
construction project must be completed by the general contracting unit itself.

    The general contracting unit of a construction project shall, pursuant to
the agreement in the general contracting contract, be responsible to the
construction unit; subcontracting units shall, pursuant to the agreement in
the subcontracts, be responsible to the general contractor. The general
contracting unit and subcontracting units shall bear joint responsibility
to the construction unit in respect of the subcontracted projects.

    The general contracting unit is prohibited to subcontract the project
to units with no corresponding human quality qualifications. The
subcontracting unit shall be prohibited to re-subcontract the project it
has contracted.
Chapter IV  Construction Project Supervision and Control

    Article 30  The State practises the construction project supervision and
control system.

    The State Council may determine the scope of mandatory supervision and
control of construction projects.

    Article 31  The construction unit of a construction project under
supervision and control shall entrust the supervision and control with
an engineering supervision and control unit with corresponding human quality
qualifications. The construction unit and its entrusted engineering
supervision and control unit shall conclude a contract for entrustment of
supervision and control in writing.

    Article 32  The construction project supervisor-controller shall, pursuant
to the laws, administrative regulations as well as relevant technical
standards, design documents and the construction project contractual contract,
exercise supervision over the contracting unit in construction quality,
construction schedule and use of construction funds on behalf of the
construction unit.

    Engineering supervisors have the power to ask the building construction
enterprise to make corrections when they hold that construction of the
project does not conform to engineering design requirements, construction
technical standards and agreement in the contract.

    Engineering supervisors shall, upon discovery of engineering design not
in conformity with construction project quality standards or quality
requirements agreed in the contract, report to the construction unit to
ask the design unit to make corrections.

    Article 33  The construction unit shall, prior to the exercise of
supervision and control over the construction project, notify the building
construction enterprise to be put under supervision and control in writing
of the entrusted engineering supervision and control unit, the contents of
supervision and control and terms of reference in supervision and control.

    Article 34  An engineering supervision and control unit shall undertake
engineering supervision and control business within the scope of supervision
and control permitted for its human quality grade.

    The engineering supervision and control unit shall, in accordance with
the entrustment of the construction unit, conduct the missions of supervision
and control objectively and fairly.

    The engineering supervision and control unit and the contracting unit
of the project under supervision and control as well as supply units of
building materials, building structural pieces and parts and equipment shall
not have subordinate relationship or other relations of interest.

    The engineering supervision and control unit shall not transfer
its engineering supervision and control business.

    Article 35  An engineering supervision and control unit shall bear
corresponding liability of compensation in the case of failure to fulfil
the obligations of supervision and control agreed in the contract of
entrustment of supervision and control, not carrying out inspection or
carrying out inspection not in accordance with the provisions over items
which should have been put under supervision and inspection, thus causing
losses to the construction unit.

    An engineering supervision and control unit shall bear joint liability of
compensation with the contracting unit for collusion in gaining illegal
interests for the contracting unit thus causing losses to the construction
unit.
Chapter V  Construction Production Safety Management

    Article 36  Construction project production safety management must adhere
to the policy of safety first and prevention first, establish and perfect the
responsibility system of production safety and the system of prevention and
treatment by the masses.

    Article 37  Construction project design shall conform to the construction
safety procedures and technical standards formulated in accordance with
state provisions to ensure the safety performance of the project.

    Article 38  A building construction enterprise shall work out
corresponding safety technical measures according to the characteristics of
the construction project in the compilation of design for construction
organization; for speciality-intensive items of the project, design for
special-purpose safety construction organization shall be compiled and
safety technical measures taken.

    Article 39  A building construction enterprise shall take such measures
as the maintenance of safety, precautions against danger and fire prevention
at the construction site; where there are the required conditions,
construction site closed management shall be followed.

    A building construction enterprise shall take safety protection measures
in the case of the construction site causing possible damage to its adjoining
buildings, structures or special operational environment.

    Article 40  The construction unit shall provide the building construction
enterprise with the relevant information on underground piping and wiring
of the construction site, and the building construction enterprise shall
take measures for their protection.

    Article 41  The building construction enterprise shall abide by the
provisions of the laws and regulations relating to environmental protection
and safety in production and take control and disposal measures at the
construction site of various kinds of dust, waste gas, waste water, solid
waste as well as noise, vibration polluting and damaging the environment.

    Article 42  A construction unit shall, pursuant to the relevant state
provisions, go through the formalities of application for approval in case
of any of the following circumstances:

    (1) need of temporarily occupying sites beyond the approved planned
scope;

    (2) possibility of damaging such public facilities as roads, pipes and
cables, electricity, postal service and telecommunications;

    (3) need of temporary suspension of water supply, electricity supply and
suspension of road traffic;

    (4) need to conduct explosion operations; and

    (5) other circumstances requiring going through the formalities of
application for approval as prescribed by laws and regulations.

    Article 43  The competent department of construction administration
shall be responsible for the administration of construction safety in
production and subject to the guidance and supervision of the competent
department of labour in construction safety in production in accordance
with law.

    Article 44  A building construction enterprise must, in accordance with
law, strengthen construction safety production management, implement the
safety production responsibility system and take effective measures to prevent
casualties and other accidents in safety production from taking place.

    The legal representative of a building construction enterprise shall be
responsible for the safety in production of the enterprise.

    Article 45  The building construction enterprise shall be responsible
for the construction site safety. The general contracting unit shall be
responsible for the construction site safety of the project under general
contract for construction. Subcontracting units shall be responsible to
the general contracting unit and subordinate themselves to the management
of the general contracting unit for construction site safety in production.

    Article 46  Building construction enterprises shall establish and
perfect the educational and training system of safety in labour and
production, step up the education and training of workers and staff members in
safety in production; no personnel without undergoing education and training
in safety in production shall take up posts in operations.

    Article 47  Building construction enterprises and their personnel shall,
in the process of construction, abide by the laws and regulations relating to
safety in production and safety regulations and procedures of the building
industry, and shall not give command in contravention of regulations or
operate in contravention of regulations. Operators have the right to put
forth suggestions for improvement with regard to the operational procedures
and operational conditions adversely affecting physical health and have the
right to obtain protective gear necessary for safety in production. Operators
have the right to make criticism, report the case of and file charges against
acts endangering lives, safety and physical health.

    Article 48  Building construction enterprises must insure workers and
staff members engaging in dangerous operations against accidental injuries
and pay the insurance premium.

    Article 49  In restoration or rehabilitation project involving the main
body of the building and changes in the weight-bearing structure, the
construction unit shall, prior to the construction, entrust the original
design unit or a design unit with corresponding human quality qualifications
to put forth a design proposal; where there is no design proposal, no
construction shall be undertaken.

    Article 50  Dismantling of houses shall be undertaken by building
construction units with conditions to ensure safety and the person-in-charge
of the building construction units shall be responsible for the safety.

    Article 51  In the event of an accident in the process of construction,
the building construction enterprise shall take emergency measures to reduce
casualties of personnel and losses caused by the accident, and submit a report
in time to the departments concerned pursuant to relevant state provisions.
Chapter VI  Construction Project Quality Control

    Article 52  The quality of survey, design and construction of a
construction project must conform to the requirements of state safety
standards relating to construction projects. Specific control measures
shall be formulated by the State Council.

    State standards relating to safety in construction projects shall be
revised in time when they are unable to adapt to the requirements of ensuring
safety in building.

    Article 53  The State practises the quality system authentication system
with respect to units engaging in building operations. Units engaging in
building operations may, in accordance with the princ

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON ISSUE CONCERNING TAXATION OF THE ENTERPRISES UNDERTAKING LEASING

The State Administration of Taxation

Circular of the State Administration of Taxation on Issue Concerning Taxation of the Enterprises Undertaking Leasing

GuoShuiFa [1997] No.8

January 14, 1997

The state and local tax bureaus of various provinces, autonomous regions, municipalities directly under the Central Government and
municipalities separately listed on the State plan:

In order to in line with the system reform of the small and medium-sized enterprises and strengthen the collection administration
of corporate income tax of leasing enterprises, the taxation of domestic-funded leasing enterprises should be clarified as follows:

I.

All or parts of enterprises are leased and operated by individual, other enterprises and institutions without changing the name of
leasing enterprises and registration in industry and commerce of lesser enterprise. the lessee enterprises that run the business
in name of lesser enterprises should be the tax-payers of corporate income tax and levied the income tax on all the earnings no matter
how the business earnings are allotted between the lesser and lessee.

II.

All or parts of enterprises leased and operated by individual, other enterprises and institutions, the lessee should register in the
industrial and commercial departments again and engage in business in name of lessee. The corporate income tax should be levied on
the earnings of the enterprises by the enterprises and units newly registered in the industrial and commercial departments as a taxpayer.

III.

All the enterprise is leased by another enterprise or unit and registered in the industrial and commercial departments again. The
enterprise newly-registered should not establish new enterprise and not enjoy the policy of tax exemption that the new enterprise
does.



 
The State Administration of Taxation
1997-01-14

 







REGULATIONS FOR THE IMPLEMENTATION OF THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE ENTRY AND EXIT ANIMAL AND PLANT QUARANTINE






The State Council

Decree of the State Council of the People’s Republic of China

No.206

Regulations for the Implementation of the Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine
are hereby promulgated and shall come into force as of the day of July 1, 1997.

Premier of the State Council, Li Peng

December 2, 1996

Regulations for the Implementation of the Law of the People’s Republic of China on the Entry and Exit Animal and Plant Quarantine

Chapter I General Provisions

Article 1

These Regulations are formulated in accordance with the provisions of the “Law of the People’s Republic of China on the Entry and
Exit Animal and Plant Quarantine” (hereinafter referred to as the Law on the Entry and Exit Animal and Plant Quarantine).

Article 2

The following objects shall be subject to quarantine in accordance with the provisions of the Law on the Entry and Exit Animal and
Plant Quarantine and those of these Regulations:

(1)

Entry, exit or transit animals and plants, their products and other quarantine objects;

(2)

Containers, packaging materials and bedding materials used for carrying animals and plants, their products or other quarantine objects;

(3)

Means of transport from an animal and plant epidemic area;

(4)

Waste vessels for dismantling after entry; and

(5)

Other goods and items subject to entry and exit animal and plant quarantine according to provisions of relevant laws, administrative
regulations and international treaties or as agreed upon in trade contracts.

Article 3

The department of agriculture administration under the State Council shall be in charge of the entry and exit animal and plant quarantine
in the whole country.

The Bureau of Animal and Plant Quarantine of the People’s Republic of China (hereinafter referred to as the State Bureau of Animal
and Plant Quarantine) shall exercise unified control over the entry and exit animal and plant quarantine in the whole country, collect
information on major animal and plant epidemics at home and abroad and be responsible for international cooperation and exchanges
in entry and exit animal and plant quarantine.

The State Bureau of Animal and Plant Quarantine shall establish port animal and plant quarantine organs in open ports and at places
where there is concentration of entry and exit animal and plant quarantine operations, and perform entry and exit animal and plant
quarantine according to the provisions of the Law on the Entry and Exit Animal and Plant Quarantine and these Regulations.

Article 4

In the event that a serious animal or plant epidemic occurs outside the territory and is liable to spread into the country; the following
emergent preventive measures shall be adopted in the light of the prevailing conditions:

(1)

The State Council may take control measures in the border regions concerned and may, when necessary, order the ban of entry of means
of transport from the animal and plant epidemic area or seal the ports concerned;

(2)

The department of agriculture administration under the State Council may publish catalogues of animals and plants, their products
and other quarantine objects the entry of which shall be banned from the country or region where there is an animal or plant epidemic;

(3)

The port animal and plant quarantine organs concerned may take emergent quarantine measures with regard to the entry objects likely
contaminated by epidemics or pests as listed in Article 2 of these Regulations; and

(4)

The local people’s governments of the areas under the threat of animal or plant epidemic may immediately call the departments concerned
to work out and implement emergent plans, and simultaneously report to the people’s governments at a higher level and the State Bureau
of Animal and Plant Quarantine.

The departments of posts and telecommunications and departments of transportation shall give top priority to transmitting or transporting
reports concerning serious animal or plant epidemics or materials to be sent for quarantine inspection.

Article 5

Entry of animals and plants, their products and other quarantine objects for either official use or private use by foreign organizations
and personnel enjoying diplomatic or consular privileges and immunity shall be subject to quarantine in accordance with the provisions
of the Law on the Entry and Exit Animal and Plant Quarantine and those of these Regulations; the port animal and plant quarantine
organs shall comply with the provisions of relevant laws when performing inspection.

Article 6

The customs shall, according to law, coordinate with port animal and plant quarantine organs in exercising supervision and control
over entry and exit animals and plants, their products and other quarantine objects. Specific measures shall be formulated by the
department of agriculture administration under the State Council in conjunction with the General Administration of Customs.

Article 7

The catalogues of animal and plant epidemic areas and countries and regions where there are animal and plant epidemics referred to
in the Law on Entry and Exit Animal and Plant Quarantine shall be determined and published by the department of agriculture administration
under the State Council.

Article 8

Units and individuals that make outstanding achievements in the implementation of the Law on the Entry and Exit Animal and Plant Quarantine
and these Regulations shall be rewarded.

Chapter II Examination and Approval of Quarantine Inspection

Article 9

The State Bureau of Animal and Plant Quarantine or its authorized port animal and plant quarantine organs shall be responsible for
the examination and approval of quarantine inspection with respect to the import of animals, animal products and objects prohibited
from entering the country as listed in Item 1, Article 5 of the Law on Entry and Exit Animal and Plant Quarantine.

The organs prescribed by the Regulations on Plant Quarantine shall be responsible for the examination and approval of quarantine inspection
with respect to the import of plant seeds, seedlings and other propagating materials.

Article 10

Procedures of examination and approval of quarantine inspection for import may be processed when the following conditions are satisfied:

(1)

The exporting country or region has no serious animal or plant epidemic;

(2)

The import of which is in compliance with the provisions of the relevant Chinese laws, regulations and rules on animal and plant quarantine;
and

(3)

The import of which is in compliance with relevant bilateral quarantine agreements (including quarantine agreements and aide-memoires,
same below) signed between and by China and the exporting countries or regions.

Article 11

Procedures of examination and approval of quarantine inspection shall be completed before the signing of the trade contracts or agreements.

Article 12

For entry into the country of plant seeds, seedlings and other propagating materials by carrying or by post, an application shall
be submitted in advance and formalities for the examination and approval of quarantine inspection completed; under extraordinary
circumstances when the formalities cannot be completed in advance, the carrier or sender shall complete the formalities for examination
and approval of quarantine inspection at the port and the same shall be allowed to enter the country upon the consent of the examination
and approval authority and upon quarantine clearance.

Article 13

For request to transport animals in transit, the owner or his or her agent shall submit a written application to the State Bureau
of Animal and Plant Quarantine in advance and present certifications on the epidemic situation issued by the animal and plant quarantine
authority of the government of the exporting country or region, the certificate issued by the animal and plant quarantine organ of
the government of the importing country or region permitting the entry of the same, and illustrate the proposed transit route. The
State Bureau of Animal and Plant Quarantine shall issue an “Animal Transit Permit” upon examination and approval.

Article 14

In respect of special needs for scientific research, when processing the formalities of special examination and approval of quarantine
inspection for objects prohibited from entry as prescribed in paragraph 1, Article 5 of the Law on Entry and Exit Animal and Plant
Quarantine, the consignor, the owner or his or her agent must submit a written application describing quantity, use, mode of entry
and epidemic prevention measures after entry, and enclose the remarks by the port animal and plant quarantine office concerned.

Article 15

If any of the following circumstances occurs after the completion of the formalities of examination and approval of quarantine inspection,
the consignor, owner or his or her agent shall once again apply for the examination and approval of quarantine inspection:

(1)

Change in category or quantity of entry objects;

(2)

Change in the exporting country or region;

(3)

Change in port of entry; or

(4)

Expiration of the validity of the approval of quarantine inspection.

Chapter III Entry Quarantine

Article 16

The quarantine requirements prescribed by China’s law referred to in Article 11 of the Law on Entry and Exit Animal and Plant Quarantine
mean the quarantine requirements prescribed by China’s laws, administrative regulations and the department of agriculture administration
under the State Council.

Article 17

The State shall practice the registration system for production, processing and stockpiling units of animal and plant products abroad
for export to China. The specific measures shall be formulated by the department of agriculture administration under the State Council.

Article 18

For the import of animals or plants, their products or other quarantine objects, the owner or his or her agent shall apply to the
animal and plant quarantine office at the place of entry before entry or upon entry for quarantine. In the case of quarantine to
be conducted away from the Customs supervision and control area, the owner or his or her agent shall notify the animal and plant
quarantine office at the port concerned upon arrival of the same at the designated place. In the case of goods being shipped to another
Customs area, the owner or his or her agent shall, upon entry, submit a declaration to the animal and plant quarantine office at
the port of entry, and shall submit the same to the port animal and plant quarantine office at the designated place for quarantine
upon arrival of the same at the designated place.

For the import of stud stock, their sperms or fetuses, application for quarantine shall be submitted 30 days before entry of the same;
for the import of other animals, application for quarantine shall be submitted 15 days before entry of the same; for the import of
plant seeds, seedlings or other propagating materials, application for quarantine shall be submitted 7 days before entry of the same.

For the entry of packaging materials or bedding materials of the nature of animal or plant, the owner or his or her agent shall submit
the declaration to the port animal and plant quarantine office in time; the animal and plant quarantine office may perform quarantine
of the declared objects in the light of specific conditions.

The packaging materials or bedding materials of the nature of animal or plant referred to in the aforesaid paragraph mean the animal
products, plants or plant products used directly as packaging materials or bedding materials.

Article 19

An application form for quarantine shall be filled in when applying for quarantine to the port animal and plant quarantine office,
and the quarantine certificate issued by the animal and plant quarantine office of the government of the exporting country or region,
the certificate of origin, the trade contract, the letter of credit and the invoices, etc. shall be presented; in the case of necessity
of formalities of examination and approval of quarantine inspection according to law, an approval document for quarantine inspection
shall be submitted. For objects without valid quarantine certificate issued by the animal and plant quarantine office of the government
of the exporting country or region or in the case of failure to complete the formalities of examination and approval of quarantine
inspection for the same according to law, the port animal and plant quarantine office may return or destroy the same objects in the
light of the specific circumstances.

Article 20

On arrival at the port of the imported animals or plants, their products or other quarantine objects, the quarantine functionaries
may embark on the means of transport or go to the site of the objects to perform quarantine inspection, to check whether the goods
are in keeping with the certificates, and may collect samples in accordance with regulations. The carrier, the owner or his or her
agent shall submit the list of loading and other relevant information to the quarantine functionaries.

Article 21

On arrival at the port of the means of transport loaded with animals, persons embarking or disembarking the same and persons close
to the animals shall be subject to epidemic prevention disinfections by the port animal and plant quarantine office, and shall carry
out other on-the-spot preventive measures adopted by it.

Article 22

Quarantine functionaries shall perform on-the-spot quarantine according to the following provisions:

(1)

For animals: Check to see whether there are clinical symptoms of an epidemic. Upon discovery of animals suspected to have infected
with infectious diseases or dead animals, the situation shall be verified and dealt with forthwith with the cooperation of the owner
or the escort. For bedding materials, leftover fodder and excretion of animals, the treatment of removal of harmful effects shall
be carried out by the owner or his or her agent under the supervision of the quarantine functionaries.

(2)

For animal products: Check to see whether there are signs of staleness or deterioration and whether the containers and packages are
in perfect condition. For those in line with the required standards, permission shall be granted for unloading from the means of
transport. On discovery of bail-off or broken or cracked containers, permission shall be granted for unloading from the means of
transport only when the owner or his or her agent takes the responsibility upon himself or herself to make them good again. Treatment
of disinfections shall be carried out with regard to the concerned parts of the means of transport as well as the containers, outer
packages, bedding materials and the contaminated sites loading animal products in the light of prevailing circumstances. In case
of necessity of laboratory quarantine, samples shall be collected in accordance with regulations. For animal products liable to breed
plant insects or animal products mixed with concealed weed seeds, simultaneous plant quarantine shall be performed.

(3)

For plants and plant products: Check to see whether the goods and packing contain plant diseases or insect pests and collect samples
as prescribed. On discovery of plant diseases or insect pests which are likely to spread, necessary timely epidemic prevention measures
shall be taken with respect to such goods, the means of transport and the loading-unloading sites. For plant products from the epidemic
area of an animal infectious disease or likely to carry pathogens of animal infectious diseases or parasitic diseases and used as
animal fodder, simultaneous animal quarantine shall be performed.

(4)

For packing and bedding materials of the nature of animals or plants: Check to see whether they carry diseases or insect pests, are
mixed with concealed weed seeds or carry soil with them, and collect samples as prescribed.

(5)

For other quarantine objects: Check to see whether the packing is in perfect condition and whether they are contaminated by diseases
or insect pests. On discovery of breakage or contamination by diseases or insect pests, treatment for the removal of harmful effects
shall be carried out.

Article 23

Inspection shall be carried out at different levels of bulk animal and plant products carried by ships or trains; inability to carry
out on-the-spot inspection in view of limited storage facilities at the port or the railway station, the goods may be unloaded and
transported to the designated place for storage with the consent of the port animal and plant quarantine office. On discovery of
epidemic in the process of unloading, the unloading operation shall be suspended forthwith, and the owner or his or her agent shall
carry out treatment for the removal of harmful effects from the loaded and unloaded goods in accordance with the requirements of
the port animal and plant quarantine office.

Article 24

Imported big or medium-size cattle for breeding purposes shall be quarantined in isolation for 45 days in an isolated animal quarantine
court set up by the State Bureau of Animal and Plant Quarantine; other imported animals shall be quarantined in isolation for 30
days in an isolated animal quarantine court designated by the port animal and plant quarantine office. Control measures for isolated
animal quarantine courts shall be formulated by the department of agriculture administration under the State Council.

Article 25

When the same batch of entry animal or plant products is to be unloaded separately at different ports, the port animal and plant quarantine
office shall only perform quarantine of the goods unloaded at the said port. The port animal and plant quarantine office of the first
unloading port shall notify in time the port animal and plant quarantine offices of other separate unloading ports of the information
on quarantine and treatment; the port animal and plant quarantine office of the last unloading port shall unified issue quarantine
certificates, when they are needed, after gathering all necessary information.

Discovery of epidemic in the process of quarantine inspection at the separate unloading port which requires on-board fumigation or
disinfections, the port animal and plant quarantine office at the said separate unloading port shall unified issue quarantine certificates
and notify in time the port animal and plant quarantine offices at other separate unloading ports.

Article 26

The imported animals and plants, animal and plant products and other quarantine objects shall be quarantined in accordance with the
national or industrial standards of China or the relevant provisions of the State Bureau of Animal and Plant Quarantine.

Article 27

For import animals or plants, animal or plant products or other quarantine objects which pass quarantine inspection, the port animal
and plant quarantine office shall affix its stamp on the Customs declaration form or issue a “Quarantine Clearance Notice”. For goods
which require to be transferred from the Customs supervision and control area at the port of entry for quarantine, the port animal
and plant quarantine office at the port of entry shall issue a “Quarantine Transfer Notice”. The owner or his or her agent shall
go through the formalities of Customs declaration, shipment and delivery on the strength of the stamp affixed by the port animal
plant quarantine office on the Customs declaration form or on the strength of the “Quarantine Clearance Notice” or “Quarantine Transfer
Notice” issued by it. The Customs shall perform inspection on and issue clearance for the import animals or plants, their products
or other quarantine objects on the strength of the stamp affixed by the port animal and plant quarantine office on the Customs declaration
form or the “Quarantine Clearance Notice” or “Quarantine Transfer Notice” issued by it. The departments of transportation and departments
of posts and telecommunications shall effect shipment and delivery on the strength of the aforesaid form and notices and no further
quarantine shall be performed by other quarantine organs in the country during shipment and delivery.

Article 28

For import animals or plants, their products or other quarantine objects that fail to pass quarantine, the port animal and plant quarantine
office shall issue a “quarantine treatment notice”, notifying the owner or his or her agent to carry out treatment for the removal
of harmful effects under the supervision an technical guidance of the port animal and plant quarantine office; the port animal and
plant quarantine office shall issue quarantine certificates for those seeking claims from foreign exporters.

Article 29

The State Bureau of Animal and Plant Quarantine may dispatch quarantine personnel to perform pre-quarantine, supervision over loading
or conduct epidemic investigation in the place of origin according to quarantine requirements and with the agreement of the organs
concerned of the government of the exporting country or region of the animals or plants or their products after consultation.

Article 30

Illegal entry animals and plants, their products and other quarantine objects intercepted and captured by the Customs, border control
departments or other departments shall be handed over to the nearest port animal and plant quarantine office for quarantine.

Chapter IV Exit Quarantine

Article 31

The owner or his or her agent shall provide the trade contract or agreement when going through the formalities of application for
exit quarantine inspection of animals or plants, their products or other quarantine objects according to law.

Article 32

If the importing country requires China to register the production, processing and stockpiling units engaging in export to their country
of animals or plants, their products or other quarantine objects, the port animal and plant quarantine office may practice registration
and report to the State Bureau of Animal and Plant Quarantine for the record.

Article 33

Export animals that need to be placed in isolation for quarantine inspection before exit shall be quarantined in an isolation court
designated by the port animal and plant quarantine office. Export plants, animal or plant products and other quarantine objects shall
be quarantined at the warehouse or depot; they may also be quarantined in the process of production and processing, if necessary.

Exit plants, animal or plant products and other quarantine objects awaiting quarantine inspection shall be complete in quantity, with
perfect packing, neat piling and prominent marks.

Article 34

Quarantine inspection of export animals and plants, their products and other quarantine objects shall abide by:

(1)

Provisions relating to animal and plant quarantine of the importing countries or regions and China;

(2)

Bilateral quarantine agreements;

Regulations for the Implementation of the Law of the People’s Republic of China on Entry and Exit Animal and Plant Quarantine

(3)

Quarantine requirements clearly defined in the trade contracts.

Article 35

The following procedures shall be followed with respect to animals or plants, their products or other quarantine objects that have
passed quarantine inspection by the animal and plant quarantine office at the place of consignment upon arrival at the port of exit:

(1)

Animals shall be subject to clinical quarantine or re-quarantine by the port animal and plant quarantine office at the point of exit;

(2)

For exit plants, animal or plant products or other quarantine objects with original means of transport from the place of consignment,
clearance shall be given by the exit port animal and plant quarantine office upon examination of the certificates; for those that
change the means of transport for exit, clearance shall be given upon change of certificates; and

(3)

For plants, animal or plant products or other quarantine objects to be repackaged upon arrival at the exit port, or different quarantine
requirements to be followed as a result of change of the importing country or region, or those that exceed the prescribed validity
of quarantine, a fresh application for quarantine inspection shall be submitted.

Article 36

When export animals or plants, their products or other quarantine objects which have passed the quarantine inspection of the port
animal and plant quarantine office at the place of consignment are to be transported to the exit port, the departments of transportation
and departments of posts and telecommunications shall effect shipment and delivery on the strength of the quarantine certificate
issued by the port animal and plant quarantine office at the place of consignment, and no further quarantine shall be performed by
other quarantine organs in the country.

Chapter V Transit Quarantine

Article 37

The transit (including trans-shipment, same below) of animals or plants, their products or other quarantine objects requires the carrier
or escort to submit the shipping document and the certification issued by the animal and plant quarantine organ of the government
of the exporting country or region to the port animal and plant quarantine office at the port of entry for quarantine inspection;
for transit of animals, an “Animal Transit Permit” issued by the State Bureau of Animal and Plant Quarantine shall be presented in
addition.

Article 38

On arrival of transit animals at the entry port, the entry port animal and plant quarantine office shall carry out treatment of disinfections
of the means of transport, the outside of the containers and perform clinical quarantine of the animals, and those having passed
the quarantine inspection shall be permitted to transit. The entry port animal and plant quarantine office may send out quarantine
personnel to supervise the shipment to the exit port whose animal and plant quarantine office shall perform no further quarantine
inspection.

Article 39

The means of transport, packing and containers carrying transit plants, animal and plant products and other quarantine objects must
be in perfect condition. In the case of discovery, upon inspection by the port animal plant quarantine office, of the possibility
of disintegration or leakage in transit of the means of transport, the packing or containers, the carrier or escort shall adopt sealing
measures as required by the port animal and plant quarantine office; there shall be denial of transit for inability to take sealing
measures.

Chapter VI Quarantine of Materials Carried by Passengers or by Post

Article 40

Any plant seeds, seedlings or other propagating materials carried or posted into the country without going through the formalities
of examination and approval of quarantine inspection in accordance with law, shall either be returned or destroyed by the port animal
and plant quarantine office. Reasons for the return of the postal matter shall be given on the said postal matter and its delivery
notice by the port animal and plant quarantine office; for the postal matter to be destroyed, the port animal and plant quarantine
office shall issue a notice to the sender.

Article 41

Whoever enters the country carrying animals or plants; animal or plant products or other quarantine objects must declare at the Customs
and accept quarantine inspection by the port animal and plant quarantine office upon entry. The Customs shall hand over the animals
or plants, animal or plant products or other quarantine objects declared or intercepted upon inspection to the port animal and plant
quarantine office in time for quarantine inspection. No object shall be carried into the country without quarantine inspection.

Article 42

The port animal and plant quarantine offices may carry out on-the-spot inspections in the passenger passage ways or at the baggage
collection points at ports, airports, railway or coach stations, by making inquiries and carrying out sample inspection of the articles
of those who may carry animals or plants, animal or plant products or other quarantine products without declaration, or carrying
out inspection by opening the packages (cases) when necessary.

Animal and plant quarantine inspection counters with marks shall be set up at the inspection site of entry and exit passengers.

Article 43

Whoever carries animals into the country must possess a quarantine certificate issued by the animal and plant quarantine organ of
the government of the exporting country or region and clearance shall be given upon passing the quarantine inspection; those who
carry dogs, cats or other pets into the country must hold a vaccination certificate in addition. For objects without quarantine certificates
or vaccination certificates, the port animal and plant quarantine offices shall direct that either the said objects be returned within
a specified time limit or be confiscated and destroyed. For objects to be returned within a specified time limit, those who carry
the objects must receive and carry the same out of the country on the strength of the interception and detention voucher issued the
port animal and plant quarantine office within the specified time; failure to receive them within the specified time limit shall
be deemed as voluntary abandonment.

Any plants, animal or plant products or other quarantine objects carried into the country shall be cleared therewith upon passing
on-the-spot quarantine inspection; for those which need to be either clinically quarantined or quarantined in isolation, the port
animal and plant quarantine office shall issue an interception and detention voucher. For those having passed the interception quarantine,
the carrier shall, on the strength of the interception and detention voucher, receive them from the port animal and plant quarantine
office; failure to receive the same within the specified time limit shall be deemed as voluntary abandonment.

Animals and plants, animal and plant products and other quarantine objects listed in the catalogues specified in Article 29 of the
Law on the Entry and Exit Animal and Plant Quarantine shall be prohibited from being carried or posted into the country.

Article 44

Animals or plants, animal or plant products or other quarantine objects posted into the country shall be quarantined by the port animal
and plant quarantine office at the International Postal Exchange Bureau (including international postal express delivery companies
and other units engaged in international postal operations, hereinafter referred to as the post offices). The post offices shall
provide the necessary facilities for the work.

For objects passing the quarantine inspection, the port animal and plant quarantine office shall affix the quarantine inspection clearance
stamp on them and hand them over to the post offices for transportation and delivery. For those needing to be clinically quarantined
or quarantine inspected in isolation, the port animal and plant quarantine office shall go through the formalities of handing-over
and taking-over with the post offices; those passing quarantine inspection shall be affixed a quarantine inspection clearance stamp
and handed over to the post offices for transportation and delivery.

Article 45

Animals or plants, animal or plant products or other quarantine objects carried or posted into the country, which fail in quarantine
inspection and defy effective treatment for the removal of harmful eff

RELEVANT PROVISIONS GOVERNING THE ACCOUNTING TREATMENT AS CONTAINED IN RULES FOR THE IMPLEMENTATION OF THE BUSINESSES OF FOREIGN EXCHANGE SETTLEMENTS, SALES AND PAYMENTS OF FOREIGN-CAPITAL BANKS

The People’s Bank of China

Relevant Provisions Governing the Accounting Treatment as Contained in Rules for the Implementation of the Businesses of Foreign Exchange
Settlements, Sales and Payments of Foreign-capital Banks

the People’s Bank of China

June 18, 1996

These Provisions concerning the issues related to the opening of separate-purpose RMB accounts by the foreign banks operating in the
various parts of China are formulated in accordance with the Rules for the Implementation of the Businesses of Foreign Exchange Settlements,
Sales and Payments of Foreign-capital Banks (hereinafter referred to as the Rules for Implementation).

l.

The special RMB accounts for foreign exchange settlement and sale by foreign banks shall be set up under Heading 0109 for Foreign
Banks’ Deposits and the heading has been turned into a heading for both foreign currencies and the RMB.

2.

When opening the special RMB accounts for the settlement and sale of foreign exchange by foreign banks, the People’s Bank of China
shall, in accordance with the Measures for Accounts Administration and the relevant provisions in Article 8 of the Rules for Implementation,
appraise the relevant documents, and shall, in addition to the routine check up of the accounts at the close of each business day,
focus its attention on examining whether the balances in the deposit accounts exceed the amounts stipulated by the State General
Administration of Foreign Exchange Control.

3.

The interest on the deposits of foreign banks in their special RMB accounts for foreign exchange settlement and sale shall be paid
on the basis of the interest rate for the deposits of financial institutions in the People’s Bank of China.

4.

The exchange of financial instruments within the same city which the People’s Bank of China organizes for foreign banks shall be handled
in line with the methods for the exchange of financial instruments conducted in the same city by the local branches of the People’s
Bank of China.

5.

The attached overleaf is the format of the RMB Special Vouchers that foreign banks shall use for foreign exchange settlement and sale.

 
The People’s Bank of China
1996-06-18

 




CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL ON TRANSMITTING SUGGESTIONS OF THE STATE PLANNING COMMISSION AND THE STATE SCIENCE AND TECHNOLOGY COMMISSION ON FURTHER PROMOTING THE IMPLEMENTATION OF THE CHINA AGENDA FOR THE 21ST CENTURY

Category  GENERAL Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1996-07-19 Effective Date  1996-07-19  


Circular of the General Office of the State Council on Transmitting Suggestions of the State Planning Commission and the State Science
and Technology Commission on Further Promoting the Implementation of the China Agenda for the 21St Century


APPENDIX: SUGGESTIONS ON FURTHER PROMOTING THE IMPLEMENTATION OF THE CHINA

(July 19, 1996)

    The State Council has agreed to the Suggestions of the State Planning
Commission and the State Science and Technology Commission on further
Promoting the Implementation of the China Agenda for the 21st Century, and
hereby transmits it to you for your conscientious implementation in the light
of local and departmental situations.
APPENDIX: SUGGESTIONS ON FURTHER PROMOTING THE IMPLEMENTATION OF THE CHINA
AGENDA FOR THE 21ST CENTURY

    With a view to conscientiously implementing the gist of the Fifth Plenary
Session of the 14th Central Committee of the Party and the Fourth Session of
the Eighth National People’s Congress, carrying out the prescriptions of the
Circular of the State Council on the Implementation of the China Agenda for
the 21st Century, the White Book of China on Population, Environment and
Development in the 21st Century, and further promoting the execution of the
China Agenda for the 21st Century, the following suggestions are hereby put
forward:

    1. to make the sustainable development an important strategy in the
construction of modernization

    (1) Sustainable development means that consideration should be given to
the needs for both present and future development and development in the
interest of the present generation should not be achieved at the expense of
future generation’s interests. Sustainable development also means coordinated
development of population, economy, society, resources and environment, that
is to say, while the goal of economic development is pursued, natural
resources and environment on which the human beings rely for existence should
be protected so that our future generations could enjoy the development
forever, live in harmony and work contentedly.

    (2) The approach of sustainable development is a inevitable choice for our
country’s construction of modernization. Our country has a large population.
Per capita resources are of a small quantity. Economy and technology are at
relatively low level. With the growth of population and the development of
economy, many places suffer from serious environmental pollution and worsening
of ecological environment. Therefore, great value should be attached to
population control, resources saving and environmental protection. The growth
of population should conform with the development of social productivity. In
this way economic construction and social progress could be coordinated with
population, resources and environment, and a virtuous cycle could be realized.

    (3) The China Agenda for the 21st Century has laid down, in the light of
our country’s circumstances, general strategies, policies and executive
programmes for sustainable development, and is an instructive document for
smooth development of our economy and society into the 21st century. The
strategy of sustainable development is of significant value for economic,
social development and even for the whole modernization construction over the
next 15 years.

    2. to realize the China agenda for the 21st Century so as to promote the
basic transformations of economic system and economic growth form

    (1) Both the Fifth Plenary Session of the 14th Central Committee of the
Party and the Fourth Session of the Eighth National People’s Congress
emphasized the point that the future work on economy shall ensure for two
basic transformations of economic system and economic growth form that are of
overall significance. Under the socialist market economy system, giving full
play to the basic role of the market in resources distribution will help raise
the efficiency of resources exploitation and reduce material consumption and
is therefore beneficial to environmental and resources protection. On the
other hand, the spontaneity and blindness of the market will to some extent
hamper the coordinated development of economy, resources and environment. In
the course of the implementation of the China Agenda for the 21st century,
full play should be given to the basic role of the market in resources
distribution while macro-control shall also be strengthened so as to promote
the basic transformation of economic system and economic growth form.

    (2) The implementation of the China Agenda for the 21st Century shall be
combined with carrying out the gist of the Fifth Plenary Session of the 14th
Central Committee of the Party and the Fourth Session of the Eighth National
People’s Congress. Establishment of such an enterprise operational system
should be promoted that helps save resources, reduce consumption, increase
efficiency and improve environment, as well as establishment of a
technological advance mechanism that conduces to self reliance, and an
economic operational mechanism that encourages fair competition on market and
optimum distribution of resources. By this way the economy and society of our
country could be advanced to the pattern of sustainable development.

    (3) The China Agenda for the 21st Century emphasizes the positive role of
technological advance in the fields of population, economy, society, resources
and environment. Each locality and each department should attach great
importance to the work of technological advance and adopt vigorous measures to
promote transformation of scientific and technological achievements and
development of technology in respect of clean production, clean sources of
energy and effective utilization of energy resources as well as technology of
rational resources exploitation, comprehensive resources utilization and
environmental protection. Much effort should be made to do soft science
research on key construction projects, regions and industries in order to lend
scientific and technological support to people’s governments at different
levels in economic and social administration.

    (4) The principle of practising economy at the same time of exploiting
resources should be followed in economic and social development. Saving of
land, water, energy, raw materials and food must be required in production,
construction, circulation, consumption and other activities. Occupation and
consumption of resources should be reduced by every possible means and
efficiency of use of resources, energy and raw materials be raised by a big
margin, and pollution arising from production be reduced and eliminated. Each
locality and each department shall, in accordance with the requirements for
sustainable development and within the framework of the Ninth-Five-Year Plan
on National Economy and Social Development and Outlines of Long-Term
Objectives in Perspective of the Year 2010, formulate detailed programmes and
measures for economizing on resources by stages and implement them seriously
in their routine duties.

    (5) People’s governments at different levels shall regard the
implementation of the sustainable development strategy as a major means to
transform agricultural growth form. By combining this task with the
construction of agricultural, forestry and hydraulic infrastructure and the
popularization of “high yield, quality and efficiency” engineering and
ecological agriculture, they could adjust the agricultural structure,
optimize the combination of productive elements, step out the application of
scientific and technological achievements for agricultural development,
protect agricultural ecological environment, promote the sustainable
utilization of agricultural resources and advance comprehensive agricultural
productive forces for the purpose of lead agriculture to a sustainable
development path.

    (6) People’s governments at different levels should conscientiously
observe laws and regulations on resources management and environmental
protection, reinforce enforcement of law, take different and effective
measures to strictly control occupation of arable land by construction,
prevent from desertization of land and deterioration of grassland, strenuously
enlarge coverage of forest vegetation, rationally utilize and protect water
and marine resources, and gradually improve ecological environment. Control
over environmental pollution in cities and towns shall be strengthened,
especially in seriously polluted cities or districts which should be the focal
points of work, with a view to ensuring the realization of objectives on
environmental protection as laid down in the Ninth-Five-Year Plan on National
Economy and Social Development and Outlines of Long-Term Objectives in
Perspective of the Year 2010.

    3. to introduce the basic gist and contents of the China Agenda for the
21st Century into all regional and departmental plans for national economy and
social development

    (1) All localities and departments should, in accordance with the
requirements of the State Council, include the basic gist and contents of the
China Agenda for the 21st Century in their respective regional or departmental
plan for national economy and social development, and, in the light of their
own characteristics and major issues they are faced with, make detailed action
programmes for sustainable development.

    (2) The China Agenda for the 21st Century should be carried out by stages
through national economy and social development planning. People’s governments
at different levels and relevant departments of the State Council should
vigorously create conditions and render priority to major projects for fixed
assets investment that are conducive to the realization of sustainable
development strategy. Examination and approval of fixed assets investment
shall be conducted in terms of requirements of sustainable development
strategy. Those that do not meet the requirements should be modified and
improved, and may not be granted approval otherwise.

    (3) People’s governments at different levels and relevant departments of
the State Council should take into full consideration the requirements of
sustainable development proposed in the China Agenda for the 21st Century when
making decisions concerning social development and economic growth, and make
assessment on economic and social development policies and plans in terms of
strategic ideas of sustainable development so as to avoid gross mistakes.

    (4) All localities should construct cities and towns under the guidance of
sustainable development strategy. They should properly continue their trials
and go on to do more comprehensive experiments with sustainable development
strategy, on selected administrative districts of a new group of small-,
medium- and large-sized towns and cities, which boast relative economic
strength and have typical and representative value as models so that a city
development pattern with Chinese characteristics could be found out. During
the course of trials, special attention should be paid to sustainable
development of impoverished regions.

    (5) All localities and departments should strengthen leadership over the
implementation of the China Agenda for the 21st Century, specify
administrative organs held responsible for the work within their jurisdiction
and improve the comprehensive coordination competence. They should arrange
necessary funds for the implementation of the China Agenda for the 21st
Century and provide necessary working conditions.

    4. to inspire the sustainable development ideology in all the people and
to establish and perfect corresponding mechanisms

    (1) Education on sustainable development strategy should be strengthened.
Educational departments at different levels should introduce the strategic
ideology of sustainable development into the whole education process from
primary to higher learning. Primary and high schools should have such contents
as population control, sustainable application of resources and environmental
protection included in relevant courses and after-class readings. The subject
of sustainable development should be listed in the curriculum of higher
education and adult education.

    (2) Publicity and dissemination of sustainable development science and
technology should be strengthened. The State Planning Commission and the State
Science and Technology Commission should as soon as possible compile popular
readings on the China Agenda for the 21st Century. People’s governments at
different levels should make plans for dissemination, make full use of local
mass media such as television, film, broadcasting, newspapers, journals and
books to vigorously spread the strategic ideology of sustainable development.
They should also organize, in conjunction with the Five-Ones-Project for
socialist spiritual civilization construction, the creation of a group of
excellent works to demonstrate the strategic ideology of sustainable
development. Different academic departments and research societies should
mobilize experts and academicians to participate in popularization of the
sustainable development strategy.

    (3) Management cadres, particularly leading cadres at different levels
should be trained with sustainable development theories. Different regions and
departments should, through cadre training schools, workshops and lectures
etc., inspire the China Agenda for the 21st Century into cadres at different
levels so that they could improve knowledge and understanding of sustainable
development strategy.

    (4) Relevant statutes and policies regarding sustainable development
strategy should be considered, formulated and revised. Research on theories of
sustainable development should be conducted and an information system of
international connection should be gradually developed. Where conditions
permit, localities or departments may, in the light of their practical
circumstances, design a sustainable development index and try its application
within the localities or departments. In the course of the implementation of
the China Agenda for the 21st Century, different regions and department should
strengthen information communication and exchange of experiences.

    (5) Relevant mechanisms should be established so as to guarantee the
smooth execution of the China Agenda for the 21st Century. A series of
management procedures should be studied, formulated, improved and perfected,
including procedures through which the strategic ideas of sustainable
development could be absorbed by decision-making processes, and procedures
regarding the assessment of economic and social development policies and
projects in terms of sustainable development requirements. By this way
relevant contents of the China Agenda for the 21st Century could be smoothly
executed. Where conditions permit, reports on national economy and social
development should also include a special topic on the assessment of
implementation of the China Agenda for the 21st Century. Planning
administrative organs of different departments and local people’s governments
shall be held in charge of overall assessment of sustainable development.

    5. to strengthen international cooperation to facilitate the execution of
the China Agenda for the 21st Century

    (1) Sustainable development is an inevitable requirement for development
of human society, and has become a major common concern of international
community. With sustainable development being now a hot field for
international cooperation, different localities and departments should take
full advantage of the opportunity and, through wide propaganda, broaden
international cooperation channels so as to pursue international aid and
support, extensively attract foreign investment, and facilitate the
implementation of the China Agenda for the 21st Century.

    (2) Attempts for international cooperation should reflect the point that
our country highly values the strategy of sustainable development. Relevant
model projects and construction projects intended to improve our country’s
competence for sustainable development should be included in different
national plans for international cooperation.






DECISION OF THE STATE COUNCIL CONCERNING THE DEEPENING OF THE REFORM OF THE SCIENCE AND TECHNOLOGY MANAGEMENT SYSTEM DURING THE “NINTH FIVE-YEAR PLAN” PERIOD

Category  SCIENCE AND TECHNOLOGY Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1996-09-15 Effective Date  1996-09-15  


Decision of the State Council Concerning the Deepening of the Reform of the Science and Technology Management System During the “Ninth
Five-year Plan” Period



(September 15, 1996)

    Since the issuance of the “Decision on the Reform of the Science and
Technology Management System” by the Central Committee of the Communist Party
of China in 1985, the scientific and technological circles have, after over
ten years of exploration and successful practice, pioneered and created a new
situation of vigorous development of science and technology as primary
productive forces, breaking the erstwhile single and closed planned
management system, effecting a change in the dislocated status of science and
technology and economy, and gradually enhancing the role of the socialist
market economy system in the operations of science and technology. Majority
of the scientific research institutions of the technological development type
have embarked on the road of independent development with their operations
based on market mechanisms and oriented toward economic construction. Most
scientific and technological forces have entered into the main battlefield of
economic construction in diverse forms. The spirit of patriotism of the broad
masses of scientific and technological workers has been fully reflected in
the reform of the science and technology management system in their conscious
and active participation in the reform with a view to achieving the goals of
the national development strategy. However, owing to various reasons, a
fuller play has not been given yet to the key role of science and technology
as primary productive forces in economic construction and social development.
The general layout of the science and technology management system has yet to
be perfected. Total scientific and technological input is inadequate.
Disposition of scientific and technological resources is not sufficiently
rational. Repetition in the establishment of scientific research
institutions, dispersion of scientific and technological forces and
irrational structures in specialties and qualified personnel have not been
resolved satisfactorily. The overall superiority of science and technology
and scientific and technological reserve have to be enhanced. The “Ninth
Five-Year Plan” period is a key period in our country for the all-round
completion of the second step of the strategic disposition in modernization.
To realize the two basic transformations in the economic system and in the
mode of economic growth, and to implement the strategy of reinvigorating our
country through science and education and the sustainable development
strategy, the work of science and technology should serve economic
construction and social development in a better way, and make contributions
to the resolution of hot and difficult problems in economic construction and
social development and to the improvement in quality in economic growth. In
pursuance of the spirit of “deepening the reform of the science and
technology management system” as prescribed in the “Decision of the Central
Committee of the Communist Party of China and the State Council Concerning
the Acceleration of Advancement of Science and Technology”, the following
decision is hereby made concerning the question of deepening the reform of
the science and technology management system during the “Ninth Five-Year
Plan” period.

    1. Main Goals

    The main goals of the deepening of the reform of the science and
ethnology management system during the “Ninth Five-Year Plan” period are as
follows: all-round implementation of the thought of science and technology as
primary productive forces, further implementation of the policy of reliance
on science and technology in economic construction, orientation toward
economic construction in the work of science and technology and exertion in
mounting the peak of science and technology. Persevere in the strategic
disposition of the reform of the science and technology management system in
the three tiers of orienting toward the main battlefield of economic
construction and social development, developing high technology and
establishing new and high technology industries, and strengthening basic
research, step up basic research, applied research, high-technology research
and joint tackling of key scientific and technological projects, increase the
reserve of science and technology, solve major, integrated, key and urgent
technical questions in national economic construction and social development
in line with the principle of “stabilizing one end and decontrolling the
majority” so as to close the gap with the advanced international level as
soon as possible. Majority of the research and development institutions shall
go directly into the market, accelerate the commercialization of the
scientific and technological results, drastically upgrade social productivity
and improve economic efficiency, and raise the scientific and technological
standards of industry, agriculture and the tertiary industry.

    During the “Ninth Five-Year Plan” period, the science and technology
management system compatible with the socialist market economy system and the
laws of development of science and technology themselves should be primarily
established. A closely integrated mechanism of scientific research,
development, production and the market should be formed and a technology
development system with the enterprises as the main body and combination of
production, education and research, a scientific research system with
scientific research institutions and the institutions of higher learning as
its main body and a socialized scientific and technological services system
should be established to raise the rate of contribution of science and
technology in the national economy. The priority of the reform of the science
and technology management system should be the independent scientific
research institutions especially those under the department of the Central
Government. Scientific research institutions under the institutions of higher
learning which have their own characteristics are an organic component of the
reform of the entire science and technology management system. Optimal
disposition of scientific and technological resources should be promoted and
rational layout of scientific research institutions should be completed
through the deepening of the reform of the science and technology management
system; the enthusiasm of the scientific and technological personnel to
participate in the reform should be fully motivated and qualified personnel
dispersed rationally to let each make full use of his strengths, taking the
requirements of goals of national development strategy as the guidance.
Reform of the science and technology management system should be carried out
synchronously matching the reform of the economic system and reform in other
areas, correctly handling the relations between reform, development and
stability, providing guidance according to different types of scientific
research institutions in the light of local conditions and pressing ahead in
a positive and steady way with no rigid uniformity.

    2. Main Tasks

    (1) Pushing scientific research institutions to the main battlefield of
economic construction.

    a. Vast majority of the scientific research institutions should take
economic construction as the main battlefield, adjust their structures in
specialties and make contributions to the transformation of traditional
industries, upgrading the quality of products, the development of national
industries, enhancing capabilities in international competition and the
strengthening of comprehensive national power.

    Those scientific research institutions with necessary qualifications may
directly join enterprises and become the technology development institutions
of the enterprises. A number of scientific research institutions serving the
sectors may become the technology development institutions of respective
sectors by introducing such forms as the membership system and shareholding
system.

    Majority of the technology development and technological services
institutions should create conditions to practice enterprise-style
management, enter into the market in various forms and seek development in
market competition.

    Those scientific research institutions with an edge in research and
development and self-development capabilities or industrial development
strengths may establish enterprises or turn directly into enterprises. This
category of enterprises may become integrated companies of research,
development, engineering design, production and marketing, or may turn into
enterprise groups through merger, contracting other enterprises or scientific
research institutions, go in for independent operations and seek self-
development by way of compensatory transfer of technological achievements,
acceptance of technology development projects and providing the society with
specific technology services.

    Those scientific research institutions with systematic and matching
engineering development capabilities may integrate themselves closely with
enterprises and turn themselves into engineering centers, or establish
engineering centers on their own.

    Scientific research institutions with strong integrated services
capabilities may be turned into such technical services centers as
productivity promotion centers and technological innovation extension
centers, conduct enterprise-style operations and provide society-oriented
technical services.

    Scientific research institutions under the central departments should
actively render services in local economic construction and social
development. A number of those scientific research institutions may, with the
support of the departments concerned and the localities, become regional
science and technology research and development centers by adopting the mode
of joining hands of the departments concerned and the localities, joint
operation and joint establishment. Scientific and technological forces of
scientific research institutions and institutions of higher learning engaging
in long-term, integrated sectorial research should enhance cooperation, step
up research and development of common key technologies of the sectors and
continue to provide services for the development of the sectors.

    b. To accelerate the process of modernization of agriculture, building of
agricultural research and development system and technical extension services
system must be stepped up. Structures of disciplines, specialties and
personnel of agricultural scientific research institutions should be
optimized and attention be paid to the joint tackling of key multi-
disciplinary and trans-departmental projects to promote commercialization of
scientific and technological achievements. A number of state, sectorial and
regional research and development centers shall be set up to form step by
step a key agricultural scientific research system at the central and local
levels. State agricultural scientific research institutions and key
agricultural universities should concentrate their main forces on basic
research and the research and development of major national applications,
exerting themselves in the resolution of major scientific and technological
issues of national, basic, key and orientational nature which provincial and
prefectural agricultural scientific research institutions find unsuitable to
undertake. Provincial and prefectural agricultural scientific research
institutions should, according to natural and economic zoning, grow, step by
step, into regional agricultural scientific research centers with focuses on
applied technical research and secondary development and commercialization
of scientific and technological achievements. While “stabilizing one end”,
agricultural scientific research institutions of all levels should organize
in a big way scientific and technological personnel in participating in the
work of science and technology demonstration areas, integrated development of
agriculture, construction of bases for pillar industries, supporting poverty-
eradication programs with science and technology and all kinds of
scientific and technical services. Close integration of agriculture, science
and education should be promoted, standards of scientific and cultural
knowledge of farmers and capabilities in applying agricultural scientific
technologies should be raised, and great efforts should be made to train and
stabilize agricultural technical extension personnel with diverse skills so
as to improve overall agricultural labor productivity. The agro-technology
extension system should be perfected and strengthened in real earnest,
grassroots agro-technology extension institutions should be stabilized and
perfected and their strength of self-development enhanced. Agro-technology
extension institutions should cooperate with all types of rural service
organizations to form an integrated scientific and technological service
network embracing technology, agriculture and trade and production, supply
and marketing. Agro-technology extension institutions engaging in operational
activities close to their business in the mode of self-operations or joint
operations with seed companies and departments of means of agricultural
production may use the revenue from their business operations to mainly
subsidize agro-technology extension work and the income of the technical
personnel.

    c. Enterprises should become the main body of technological development.
State-owned large- and medium-size enterprises should take the establishment
of enterprise technological innovation mechanism and the upgrading of
technological innovation capabilities as important contents in the
establishment of modern enterprise system. Large- and medium-size enterprises
and enterprise groups should be guided by the market and set up step by step
various types of technological development institutions by joining hands with
scientific research institutions and institutions of higher learning. Mass
technological innovation activities should be encouraged. Input for
technological development shall be increased, speed of commercialization and
extension of scientific and technological achievements accelerated and efforts
be made to develop new products. Support shall be given to the establishment
of long-term and stable relations of coordination between medium- and small-
size enterprises, rural enterprises and scientific research institutions and
institutions of higher learning. Continuous encouragement shall be given to
the development of scientific and technological enterprises operated by local
people.

    (2) Developing high technology and promoting industrialization of new and
high technology.

    Research and development of high technology is the forerunner for the
development of modern economy and the source of the development of high
technology industries. A number of major projects which will have a major
leading role in the development of the national economy, have considerable
foundation and advantages and will enhance the comprehensive national
strength of our country should be selected for the joint tackling of key
issues by adopting the mode of competitive bidding of tender, organizing and
promoting scientific research institutions, institutions of higher learning
and enterprises to concentrate their forces. A cohort(An army) of high-
standard scientific research personnel should be stabilized for the
development of high-tech results and industrialization and especially for the
readjustment of industrial structures and technological transformation of
large- and medium-size enterprises.

    Further push shall be given to the development of national development
zones for new and high technology industries. The reform should be deepened
to create a better environment to attract scientific research institutions,
institutions of higher learning and large- and medium-size enterprises to
develop high-technology industries, and the pace of reform shall be expedited
in accordance with the requirements for the establishment of modern
enterprise system. Institutions of higher learning should be encouraged to
found school-run high-technology enterprises in keeping with the orientation
of the reform of higher education.

    (3) Optimizing the structure and distribution of basic scientific
research institutions.

    Scientific research institutions under central departments and key
institutions of higher learning shall be the main body in basic research and
their integration shall be strengthened. A number of key basic research
institutions should be stabilized and well managed in real earnest, and basic
research bases and the infrastructure strengthened to enable an elite,
excellent scientific and technological personnel to engage in basic research
work and do a good job of fostering and training young personnel. The
structure of these institutions should also be optimized, with their
personnel rationally dispersed and efficiency raised.

    Support shall be given to the two-way movement of scientific research
personnel and taking up concurrent positions in each other’s institutions
between the basic scientific research institutions and institutions of high
learning. Emphatic measures shall be taken to promote joint setting up and
sharing of large instruments and equipment to achieve full sharing of
materials and information. Organic integration among scientific research,
teaching and personnel training shall be adhered to so as to complement each
other and be mutually promotive.

    (4) Qualified non-profit social research institutions may practice open
management and provide socialized services.

    Non-profit social scientific research institutions should overcome the
demerits in the repetition of establishments and dispersion of manpower,
retrench and optimize combination in planned steps, practice open management
to realize socialization in functions and industrialization in services. The
State shall give key support to the non-profit social research institutions
engaging in projects involving overall national interest and long-term
interest, and in the meantime encourage those non-profit scientific research
institutions with qualifications to engage in enterprise-style operations and
set up regional or sectorial scientific and technological service and
consultancy institutions with self-development capabilities.

    3. Major Measures

    (1) Practice scientific management. Strengthen macro-regulation, macro-
control and planning and layout management, and promote integration and
corpora of scientific and technological manpower. Optimize investment
structure, continue to develop the system of science foundations, carry out
value evaluation and specialist evaluation of the same profession to enhance
efficiency in capital utilization. Planned science and technology projects
shall mainly  adopt tender offering system with open tender notices in
society, and ensure that listing of projects is done scientifically and
openness and fairness in bidding. Under the preconditions that fulfillment of
tasks issued by the State and departments in charge is ensured, scientific
research institutions shall enjoy independence in internal administration and
other areas and become an independent legal entity in society. Different
types of scientific research institutions should explore the reform of
president(director) responsibility system and the system of decision-making
by board of directors and explore ways in experimenting the specialist
responsibility system of projects. Follow-up evaluation should be conducted
on the implementation of projects.

    (2) Promote commercialization of scientific and technological
achievements.

    Step up construction of pilot plants, industrial experiment bases and
engineering technology development centers. Further develop technology
markets, establish fair, open and just order in the technology markets, and
build up intermediate institutions of technologies and the ranks of brokers.

    (3) Upgrade technological innovation capabilities. Actively create
conditions and promote in a big way integration and coordination among
scientific research institutions, institutions of higher learning and
enterprises so as to upgrade the systematic and matching capabilities of
engineering technology development.

    (4) Establish mechanism of personnel evaluation, training and employment
under which each will give full play to his talent and excellent talents will
be able to emerge. Complete and perfect the system of employment of technical
positions of all specialties. Fully promote the role of scientific research
institutions and institutions of high learning in personnel training,
accelerate the training of young and middle-aged academic and technical
leaders and assign more young and middle-aged scientific and technical
personnel to positions of heavy responsibilities in the front line of
research and development. Both old, middle-aged and young scientific and
technical personnel shall give full play to their respective roles to make
the work of scientific research more vigorous and creative in the process of
opening up, mobility, competition and coordination. A number of key
scientific research institutions and scientific research bases may set aside
some flexible staffing quota and establish the mechanism of personnel
mobility and open competition for important positions.

    (5) Further reform the income distribution system of scientific and
technical personnel. The income of scientific and technical personnel and
science and technology management staff engaging in scientific research,
technological development and commercialization of scientific and technological
achievements should be linked with their scientific research standards and
contributions. Reform science and technology reward system, found national
award for the extension of scientific and technological achievements and
establish evaluation system of science and technology work and management
system of intellectual property rights to form new incentive mechanism for
science and technology work. Strive to improve the living conditions and
working conditions of scientific and technological personnel with the
solution of the housing problem of young scientific and technological staff
as the priority.

    (6)Persevere in opening up to the outside world and actively participate
in international exchange and cooperation. Continue to encourage the
induction of sophisticated technologies and advanced management experience
from abroad, step up digestion and absorption on that basis, and work hard
for technological innovation to form a vast amount of technological
achievements and products with China’s own intellectual property rights.
Expand international academic and personnel exchanges. Continue to encourage
all categories of scientific and technological personnel and especially young
and middle-aged scientific and technological personnel to participate in
international scientific and technological cooperation and exchange in
diverse forms. Seriously implement the policy of “supporting study overseas,
encouraging return to the country and ensuring freedom of return to the
country and departure from the country,” actively create conditions and
encourage and guide overseas students and scientific and technological
personnel residing overseas to return to the country for work on engagement
basis or render service for the motherland’s construction in various forms.

    4. Fund Guarantee

    During the “Ninth Five-Year Plan” period, the central finance shall
gradually increase input into science and technology in accordance with the
requirements as prescribed in the “Decision of the Central Committee of the
Communist Party of China and the State Council Concerning the Acceleration of
Scientific and Technological Advancement”. With economic growth, local
finance at all levels should strive to increase input into science and
technology. Increase in funding for science and technology should be higher
than the growth of regular financial revenue. All departments and localities
should upgrade the equipment level and scientific research capabilities of
key scientific research institutions and scientific research bases.  

    (1) Enterprises and enterprise groups should strive to increase
technology development funding which may be listed in and as part of cost in
accordance with relevant provisions. Departments in charge of the sectors may
raise funds for the research and development of science and technology of the
sectors through various channels. Actively explore the establishment of the
input mechanism for the positive circle of agro-science and technology. A
certain amount of funds should be arranged for relevant technological
innovation in capital construction, technological transformation and
technological induction.

    (2) Increase the percentage of loans for science and technology in
national credit plan and expand the scale of commercial loans for science and
technology. State policy banks shall establish the item of special loans for
the support of commercialization of major scientific and technological
achievements to support the development of new and high technology
industries.

    (3) Actively explore venture capital mechanism for the development of
science and technology to promote commercialization of scientific and
technological achievements.

    (4) During the “Ninth Five-Year Plan” period, to encourage and support
scientific research institutions to go into the market, those scientific
research institutions which have been turned into enterprise legal entities
may continue to keep their original names upon verification in the light of
different circumstances and enjoy the policies bestowed by the State to
scientific research institutions.

    (5) In addition to the preferential policy on taxation bestowed by the
State to enterprises, those scientific research institutions which have been
turned into enterprises may include various expenses arising from development
of new products, new technologies and new techniques in management
expenditure according to relevant provisions. For technical training,
technical consultancy and technical services arising in the process of
technology transfer, the localities should formulate preferential policies on
taxation in the light of the actual conditions prevailing in each locality.

    (6) To foster and support the development of new and high technology
industries, encouragement shall be given to government departments at all
levels and institutions supported by government finance to make priority
purchases under same conditions of high technology products with Chinese
intellectual property rights.

    (7) For scientific research institutions whose reform are basically in
place, the department in charge of science and technology administration
should still render support in such areas as project funding, institutional
expenditure and equipment renewal so as to enable those scientific research
institutions and scientific research bases to reach step by step advanced
international standards.

    (8) In accordance with the relevant provisions of the State and unified
plan, scientific research institutions shall establish social security system
according to the principle of burden-sharing by the State, unit and
individual and establish the system with the integration of unified social
fund-raising and individual account in endowment and medical insurance. Part
of the institutional expenditure of scientific research institutions can be
turned over to the social security fund. Those scientific research
institutions which practice enterprise-style management or which have turned
into enterprises shall, step by step, implement the social security system.
Policies related to social security should be further perfected and improve
the conditions in endowment, medicare and housing of scientists and
engineering technological personnel who have made outstanding contributions.

    5. Deepening the Reform of Defense Science and Technology Management
System

    In pursuance of the basic orientation of the reform of national economic
system and science and technology management system and the guidelines of the
military strategy in the new period, the new science and technology
management system compatible with the requirements of the socialist market
economy and the laws of development of defense science and technology
themselves with the integration of military and civilian applications and the
integration of peacetime and wartime requirements. Resources should be
concentrated to support a number of scientific research institutions and
institutions of high learning with good foundation, high q

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...