DECISION OF THE NATIONAL PEOPLE’S CONGRESS APPROVING THE PROPOSAL BY THE DRAFTING COMMITTEE FOR THE MACAO SPECIAL ADMINISTRATIVE REGION ON THE ESTABLISHMENT OF THE COMMITTEE FOR THE BASIC LAW OF THE MACAO SPECIAL ADMINISTRATIVE REGION UNDER THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS BASIC LAW

Category	SPECIAL ADMINISTRATIVE REGION	Organ of Promulgation	The National People’s Congress	Status of Effect	In Force
Date of Promulgation	1993-03-31	Effective Date	1993-03-31

Decision of the National People’s Congress Approving the Proposal by the Drafting Committee for the Basic Law of the Macao Special Administrative Region on the Establishment of the Committee for the Basic Law of the Macao Special Administrative Region under the Standing Committee of the National People’s Congress

Appendix:

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

on March 31, 1993)

The First Session of the Eighth National People’s Congress decides:

1. to approve the proposal by the Drafting Committee for the
Basic Law of the Macao Special Administrative Region on the
Establishment of the Committee for the Basic Law of the Macao
Special Administrative Region Under the Standing Committee of the
National People’s Congress; and

2. to establish the Committee for the Basic Law of the Macao
Special Administrative Region Under the Standing Committee of the
National People’s Congress when the Basic Law of the Macao Special
Administrative Region of the People’s Republic of China is put into
effect.
Appendix:

Proposal by the Drafting Committee for the Basic Law of the Macao
Special Administrative Region on the Establishment of the Committee
for the Basic Law of the Macao Special Administrative Region Under
the Standing Committee of the National People’s Congress

1. Name: The Committee for the Basic Law of the Macao Special
Administrative Region Under the Standing Committee of the National
People’s Congress.

2. Affiliation: To be a working committee under the Standing
Committee of the National People’s Congress.

3. Function: To study questions arising from the
implementation of Articles 17, 18, 143, and 144 of the Basic Law of the Macao Speicial Administrative Region and submit its views
thereon to the Standing Committee of the National People’s
Congress.

4. Composition: Ten members, five from the mainland and five
from Macao, including persons from the legal profession, appointed
by the Standing Committee of the National People’s Congress for a
term of office of five years. Macao members shall be Chinese
citizens who are permanent residents of the Macao Special
Administrative Regions with no right of abode in any foreign
country and shall be nominated jointly by the Chief Executive,
President of the Legislative Council and President of the Court of Final Appeal of the Region for appointment by the Standing
Committee of the National People’s Congress.

MACAO SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’ S REPUBLIC OF CHINA BASIC LAW

The Basic Law of the Macao Special Administrative Region of the People’ s Republic of China

Decree of the President of the People’s Republic of China No. 3

I hereby promulgate the Basic Law of the Macao Special Administrative Region of the People’ s Republic of China, including Annex I,
Method for the Selection of the Chief Executive of the Macao Special Administrative Region, Annex II, Method for the Formation of
the Legislative Council of the Macao Special Administrative Region, Annex m National Laws to Be Applied in the Macao Special Administrative
Region, and designs of the regional flag and regional emblem of the Macao Special Administrative Region, which was adopted at the
First Session of the Eighth National People’ s Congress of the People ‘ s Republic of China on 31 March 1993 and shall be put into
effect as of 20 December 1999.

Jiang Zemin

President of the People’s Republic of China

31 March 1993

————————————————————————

Preamble

Chapter I General Principles

Chapter II Relationship between the Central Authorities and the Macao Special Administrative Region

Chapter III Fundamental Rights and Duties of the Residents

Chapter IV Political Structure

Section 1 The Chief Executive

Section 2 The Executive Authorities

Section 3 The Legislature

Section 4 The Judiciary

Section 5 Municipal Organs

Section 6 Public Servants

Section 7 Swearing Allegiance

Chapter V Economy

Chapter VI Culture and Social Affairs

Chapter VII External Affairs

Chapter VIII Interpretation and Amendment of the Basic Law

Chapter IX Supplementary Provisions

Annex I Method for the Selection of the Chief Executive of the Macao Special Administrative Region

Annex 11 Method for the Formation of the Legislative Council of the Macao Special Administrative Region

Annex III National Laws to Be Applied in the Macao Special Admrnistrative Region

Decision of the National People’s Congress on the Basic Law of the Macao Special Administrative Region of the People s Republic of
China

Decision of the National People’s Congress on the Establishment of the Macao Special Administrative Region of the People s Republic
of China

Decision of the National People s Congress on the Method for the Formation of the First Government, the First Legislative Council
and the First Judiciary of the Macao Special Administrative Region

Decision of the National People’s Congress on Approving the Proposal by the Drafting Committee for the Basic Law of the Macao Special
Administrative Region on the Establishment of the Committee for the Basic Law of the Macao Special Administrative Region under the
Standing Committee of the National People’s Congress

Appendix

Proposal by the Drafting Committee for the Basic Law of the Macao Special Administrative Region on the Establishment of the Committee
for the Basic Law of the Macao Special Administrative Region under the Standing Committee of the National People’s Congress

——————————————————————————-

Preamble

Macao, including the Macao Peninsula, Taipa Island and Coloane Island, has been part of the territory of China since ancient times;
it was gradually occupied by Portugal after the mid-16th century. On 13 April 1987, the Chinese and Portuguese Governments signed
the Joint Declaration on the Question of Macao, affirming that the Government of the People’ s Republic of China will resume the
exercise of sovereignty over Macao with effect from 20 December 1999, thus fulfilling the long-cherished common aspiration of the
Chinese people for the recovery of Macao.

Upholding national unity and territorial integrity, contributing to social stability and economic development, and taking account
of its history and realities, the People’ s Republic of China has decided that upon China’s resumption of the exercise of sovereignty
over Macao, a Macao Special Administrative Region will be established in accordance with the provisions of Article 31 of the Constitution
of the People’s Republic of China, and that under the principle of ” one country, two systems”, the socialist system and policies
will not be practised in Macao. The basic policies of the People’s Republic of China regarding Macao have been elaborated by the
Chinese Government in the Sino-Portuguese Joint Declaration .

In accordance with the Constitution of the People’ s Republic of China, the National People’ s Congress hereby enacts the Basic Law
of the Macao Special Administrative Region of the People’ s Republic of China, prescribing the Systems to be practised in the Macao
Special Administrative Region, in order to ensure the implementation of the basic policies of the Peoples Republic of China regarding
Macao.

——————————————————————————-

Chapter I

General Principles

Article 1

The Macao Special Administrative Region is an inalienable part of the People’s Republic of China.

Article 2

The National People’ s Congress authorises the Macao Special Administrative Region to exercise a high degree of autonomy and enjoy
executive, legislative and independent judicial power, including that of final adjudication, in accordance with the provisions of
this Law.

Article 3

The executive authorities and legislature of the Macao Special Administrative Region shall be composed of permanent residents of Macao
in accordance with the relevant provisions of this Law.

Article 4

The Macao Special Administrative Region shall safeguard the rights and freedoms of the residents of the Macao Special Administrative
Region and of other persons in the Region in accordance with law.

Article 5

The socialist system and policies shall not be practised in the Macao Special Administrative Region, and the previous capitalist system
and way of life shall remain unchanged for 50 years .

Article 6

The right of private ownership of property shall be protected by law in the Macao Special Administrative Region.

Article 7

The land and natural resources within the Macao Special Administrative Region shall be State property, except for the private land
recognised as such according to the laws in force before the establishment of the Macao Special Administrative Region. The Government
of the Macao Special Administrative Region shall be responsible for their management, use and development and for their lease or
grant to individuals or legal persons for use or development. The revenues derived therefrom shall be exclusively at the disposal
of the government of the Region.

Article 8

The laws, decrees, administrative regulations and other normative acts previously in force in Macao shall be maintained, except for
any that contravenes this Law, or subject to any amendment by the legislature or other relevant organs of the Macao Special Administrative
Region in accordance with legal procedures.

Article 9

In addition to the Chinese language, Portuguese may also be used as an official language by the executive authorities legislature
and judiciary of the Macao Special Administrative Region .

Article 10

Apart from displaying the national flag and national emblem of the People’s Republic of China, the Macao Special Administrative Region
may also use a regional flag and regional emblem.

The regional flag of the Macao Special Administrative Region is a green flag with five stars, lotus flower, bridge and sea water.

The regional emblem of the Macao Special Administrative Region is composed of five stars, lotus flower, bridge and sea water encircled
by the words “Macao Special Administrative Region of the People’s Republic of China” in Chinese and “MACAO” in Portuguese.

Article 11

In accordance with Article 31 of the Constitution of the People’s Republic of China, the systems and policies practised in the Macao
Special Administrative Region, including the social and economic systems, the system for safeguarding the fundamental rights and
freedoms of its residents, the executives legislative and judicial systems, and the relevant policies, shall be based on the provisions
of this Law.

No law, decree, administrative regulations and normative acts of the Macao Special Administrative Region shall contravene this Law.

——————————————————————————-

Chapter II

Relationship between the Central Authorities and the Macao Special Administrative Region

Article 12

The Macao Special Administrative Region shall be a local administrative region of the People’s Republic of China, which shall enjoy
a high degree of autonomy and come directly under the Central People’s Government.

Article 13

The Central People’s Government shall be responsible for the foreign affairs relating to the Macao Special Administrative Region.

The Ministry of Foreign Affairs of the People’s Republic of China shall establish an office in Macao to deal with foreign affairs
.

The Central People’s Government authorizes the Macao Special Administrative Region to conduct relevant external affairs, on its own,
in accordance with this Law.

Article 14

The Central People’s Government shall be responsible for the defence of the Macao Special Administrative Region.

The Government of the Macao Special Administrative Region shall be responsible for the maintenance of public order in the Region.

Article 15

The Central People’s Government shall appoint or remove the Chief Executive, the principal officials of the government and the Procurator
General of the Macao Special Administrative Region in accordance with the relevant provisions of this Law.

Article 16

The Macao Special Administrative Region shall be vested with executive power. It shall, on its own, conduct the administrative affairs
of the Region in accordance with the relevant provisions of this Law.

Article 17

The Macao Special Administrative Region shall be Yested with legislative power.

Laws enacted by the legislature of the Macao Special Administrative Region must be reported to the Standing Committee of the National
People’s Congress for the record. The reporting for record shall not affect the entry into force of such laws.

If the Standing committee of the National People ‘ s Congress, after consulting the Committee for the Basic Law of the Macao Special
Administrative Region under it, considers that any law enacted by the legislature of the Region is not in conformity with the provisions
of this Law regarding affairs within the responsibility of the Central Authorities or regarding the relationship between the Central
Authorities and the Region, the Standing Committee may return the law in question but shall not amend it. Any law returned by the
Standing Committee of the National People’s Congress shall immediately be invalidated. This invalidation shall not have retroactive
effect, unless otherwise provided for in the laws of the Region.

Article 18

The laws in force in the Macao Special Administrative Region shall be this Law, the laws previously in force in Macao as provided
for in Article 8 of this Law, and the laws enacted by the legislature of the Region.

National laws shall not be applied in the Macao Special Administrative Region except for those listed in Annex m to this Law. The
laws listed therein shall be applied locally by way of promulgation or legislation by the Region.

The Standing Committee of the National People ‘ s Congress may add to or delete from the list of laws in Annex m after consulting
its Committee for the Basic Law of the Macao Special Administrative Region and the government of the Region. Laws listed in Annex
m to this Law shall be confined to those relating to defence and foreign affairs as well as other matters outside the limits of the
autonomy of the Region as specified by this Law.

In the event that the Standing Committee of the National People’s Congress decides to declare a state of war or, by reason of turmoil
within the Macao Special Administrative Region which endangers national unity or security and is beyond the control of the government
of the Region, decides that the Region is in a state of emergency, the central People ‘ s Government may issue an order applying
the relevant national laws in the Region.

Article 19

The Macao Special Administrative Region shall be vested with independent judicial power, including that of final adjudication.

The courts of the Macao Special Administrative Region shall have jurisdiction over all cases in the Region, except that the restrictions
on their jurisdiction imposed by the legal system and principles previously in force in Macao shall be maintained.

The courts of the Macao Special Administrative Region shall have no jurisdiction over acts of state such as defence and foreign affairs.
The courts of the Region shall obtain a certificate from the Chief Executive on questions of fact concerning acts of state such as
defence and foreign affairs whenever such questions arise in the adjudication of cases. This certificate shall be binding on the
courts. Before issuing such a certificate, the Chief Executive shall obtain a certifying document from the Central People’s Government.

Article 20

The Macao Special Administrative Region may enjoy other powers granted to it by the National People’s Congress, the Standing Committee
of the National People’s Congress or the Central People’s Government.

Article 21

Chinese citizens who are residents of the Macao Special Administrative Region shall be enpost_titled to participate in the management of
state affairs according to law. In accordance with the assigned number of seats and the selection method specified by the National
People’s Congress, the Chinese citizens among the residents of the Macao Special Administrative Region shall locally elect deputies
of the Region to the National People’s Congress to participate in the work of the highest organ of state power.

Article 22

No department of the Central People’s Government and no province, autonomous region, or municipality directly under the Central Government
may interfere in the affairs which the Macao Special Administrative Region administers, on its own, in accordance with this Law.

If there is a need for departments of the Central Government, or for provinces, autonomous regions, or municipalities directly under
the Central Government to set up offices in the Macao Special Administrative Region, they must obtain the consent of the government
of the Region and the approval of the Central People’s Government.

All offices set up in the Macao Special Administrative Region by departments of the Central Government, or by provinces, autonomous
regions, or municipalities directly under the Central Government, and the personnel of these offices shall abide by the laws of the
Region.

For entry into the Macao Special Administrative Region, people from other provinces, autonomous regions or municipalities directly
under the Central Government must apply for approval. Among them, the number of persons who enter the Region for the purpose of settlement
shall be determined by the competent authorities of the Central reopen Region . The Macao Special Administrative Region may establish
an office in Beijing.

Article 23

The Macao Special Administrative Region shall enact laws, on its own, to prohibit any act of treason, secession, sedition, subversion
against the Central People’s Government, or theft of state secrets, to prohibit foreign political organizations or bodies from conducting
political activities in the Region, and to prohibit political organizations or bodies of the Region from establishing ties with foreign
political organisations or bodies.

——————————————————————————-

Chapter III

Fundamental Rights and Duties of the Residents

Article 24

Residents Of the Macao Special Administrative Region (“Macao residents”) shall include permanent residents and non-permanent residents.

The permanent residents of the Macao Special Administrative Region shall be:

(1) Chinese citizens born in Macao before or after the establishment of the Macao Special Administrative Region and their children
of Chinese nationality born outside Macao;

(2) Chinese citizens who have ordinarily resided in Macao for a continuous period of not less than seven years before or after the
establishment of the Macao Special Administrative Region and their children of Chinese nationality born outside Macao after they
have become permanent residents;

(3) The Portuguese who were born in Macao and have taken Macao as their place of permanent residence before or after the establishment
of the Macao Special Administrative Region;

(4) The Portuguese who have ordinarily resided in Macao for a continuous period of not less than seven years and have taken Macao
as their place of permanent residence before or after the establishment of the Macao Special Administrative Region;

(5) Other persons who have ordinarily resided in Macao for a continuous period of not less than seven years and have taken Macao as
their place of permanent residence before or after the establishment of the Macao Special Administrative Region;

(6) Persons under 18 years of age born in Macao of those residents listed in category (5) before or after the establishment of the
Macao Special Administrative Region.

The above mentioned residents shall have the right of abode in the Macao Special Administrative Region and shall be qualified to obtain
permanent identity cards.

The non-permanent residents of the Macao Special Administrative Region shall be persons who are qualified to obtain Macao identity
cards in accordance with the laws of the Region but have no right of abode.

Article 25

All Macao residents shall be equal before the law, and shall be free from discrimination, irrespective of their nationality descent,
race, sex, language, religion, political persuasion or ideological belief, educational level, economic status or social conditions.

Article 26

Permanent residents of the Macao Special Administrative Region shall have the right to vote and the right to stand for election in
accordance with law.

Article 27

Macao residents shall have freedom of speech, of the press and of publication; freedom of association, of assembly, Of procession
and of demonstration; and the right and freedom to form and join trade unions, and to strike.

Article 28

The freedom of the person of Macao residents shall be inviolable.

No Macao resident shall be subjected to arbitrary or unlawful arrest, detention or imprisonment. In case of arbitrary or unlawful
detention or imprisonment, Macao residents have the right to apply to the court for the issuance of a writ of habeas corpus.

Unlawful search of the body of any resident or deprivation or restriction of the freedom of the person shall be prohibited.

Torture or inhuman treatment of any resident shall be prohibited.

Article 29

Macao residents shall not be punished by law, unless their acts constitute a crime and they shall be punished for it as expressly
prescribed by law at the time.

When charged with criminal offences, Macao residents shall enjoy the right to an early court trial and shall be presumed innocent
before convicted.

Article 30

The human dignity of Macao residents shall be inviolable. Humiliation, slander and false accusation against residents in any form
shall be prohibited.

Macao residents shall enjoy the right to personal reputation and the privacy of their private and family life.

Article 31

The homes and other premises of Macao residents shall be inviolable Arbitrary or unlawful search of, or intrusion into, a resident’s
home or other premises shall be prohibited.

Article 32

The freedom and privacy of communication of Macao residents shall be protected by law. No department or individual may, on any grounds,
infringe upon the freedom and privacy of communication of residents except that the relevant authorities may inspect communication
in accordance with the provisions of the law to meet the needs of public security or of investigation into criminal offences.

Article 33

Macao residents shall have freedom of movement within the Macao Special Administrative Region and freedom of emigration to other countries
and regions. They shall have freedom to travel and to enter or leave the Region and shall have the right to obtain travel documents
in accordance with law. Unless restrained by law, holders of valid travel documents shall be free to leave the Region without special
authorization.

Article 34

Macao residents shall have freedom of conscience.

Macao residents shall have freedom of religious belief and freedom to preach and to conduct and participate in religious activities
in public.

Article 35

Macao residents shall have freedom of choice of occupation and work.

Article 36

Macao residents shall have the right to resort to law and to have access to the courts, to lawyers’ help for protection of their lawful
rights and interests, and to judicial remedies.

Macao residents shall have the right to institute legal proceedings in the courts against the acts of the executive authorities and
their personnel.

Article 37

Macao residents shall have freedom to engage in education, academic research, literary and artistic creation, and other cultural activities.

Article 38

The freedom of marriage of Macao residents and their right to form and raise a family freely shall be protected by law.

The legitimate rights and interests of women shall be protected by the Macao Special Administrative Region.

The minors, the aged and the disabled shall be taken care of and protected by the Macao Special Administrative Region.

Article 39

Macao residents shall have the right to social welfare in accordance with law. The welfare benefits and retirement security of the
labour force shall be protected by law.

Article 40

The provisions of International Covenant on Civil and Political Rights, International Covenant on Economic, Social and Cultural Rights,
and international labour conventions as applied to Macao shall remain in force and shall be implemented through the laws of the Macao
Special Administrative Region.

The rights and freedoms enjoyed by Macao residents shall not be restricted unless as prescribed by law. Such restrictions shall not
contravene the provisions of the first paragraph of this Article.

Article 41

Macao residents shall enjoy the other rights and freedoms safeguarded by the laws of the Macao Special Administrative Region.

Article 42

The interests of the residents of Portuguese descent in Macao shall be protected by the Macao Special Administrative Legion in accordance
with law, and their customs and cultural raditions shall be respected.

Article 43

Persons in the Macao Special Administrative Region other than Macao residents shall, in accordance with law, enjoy the rights and
freedoms of Macao residents prescribed in his Chapter.

Article 44

Macao residents and other persons in Macao shall have the obligation to abide by the laws in force in the Macao Special Administrative
Region.

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Chapter IV

Political Structure

Section 1 The Chief Executive

Article 45

The Chief Executive of the Macao Special Administrative Region shall be the head of the Macao Special Administrative Region and shall
represent the Region.

The Chief Executive of the Macao Special Administrative Region shall be accountable to the Central People’s Government and the Macao
Special Administrative Region in accordance with the provisions of this Law.

Article 46

The Chief Executive of the Macao Special Administrative Region shall be a Chinese citizen of not less than 40 years of age who is
a permanent resident of the Region and has ordinarily resided in Macao for a continuous period of not less than 20 years.

Article 47

The Chief Executive of the Macao Special Administrative Region shall be selected by election or through consultations held locally
and be appointed by the Central People’s Government.

The specific method for selecting the Chief Executive is prescribed in Annex I: “Method for the Selection of the Chief Executive of
the Macao Special Administrative Region”.

Article 48

The term of office of the Chief Executive of the Macao Special Administrative Region shall be five years. He or she may serve for
not more than two consecutive terms.

Article 49

The Chief Executive of the Macao Special Administrative Region, during his or her term of office, shall have no right of abode in
any foreign country and shall not engage in any activities for his or her personal gains. The Chief Executive, on assuming office,
shall declare his or her assets No the President of the Court of Final Appeal of the Macac Special Administrative Region. This declaration
shall be put on record.

Article 50

The Chief Executive of the Macao Special Administrative Region shall exercise the following powers and functions:

(1) To lead the government of the Region;

(2) To be responsible for the implementation of this Law and other laws which, in accordance with this Law, apply in the Macao Special
Administrative Region;

(3) To sign bills passed by the Legislative Council and to promulgate laws;

To sign budgets passed by the Legislative Council and report the budgets and final accounts to the Central People s Government for
the record;

(4) To decide on government policies and to issue executive orders;

(5) To formulate the administrative regulations and promulgate them for implementation;

(6) To nominate and to report to the Central People’s Government for appointment the following principal officials: Secretaries of
Departments, Commissioner against Corruptions Director of Audit, the leading members of the Police and the customs and excise; and
to recommend to the Central People s Government the removal of the above mentioned officials;

(7) To appoint part of the members of the Legislative Council;

(8) To appoint or r^emove members of the Executive Council;

(9) To appoint or remove presidents and judges of the courts at all levels and procurators in accordance with legal procedures;

(10) To nominate and report to the Central People’s Government for appointment of the Procurator-General and recommend to the Central
People’s Government the removal of the Procurator-General in accordance with legal procedures;

(11) To appoint or remove holders of public office in accordance with legal procedures;

(12) To implement the directives issued by the Central People’s Government in respect of the relevant matters provided for in this
Law;

(13) To conduct, on behalf of the Government’ of the Macao Special Administrative Region, external affairs and Other affairs as authorized
by the Central Authorities;

(14) To approve the introduction of motions regarding revenues or expenditure to the Legislative Council;

(15) To decide, in the light of security and vital interests, whether government officials or other personnel in charge of government
affairs should testify or give evidence before the Legislative Council or its committees;

(16) To confer medals and post_titles of honour of the Macao Special Administrative Region in accordance with law;

(17) To pardon persons convicted of criminal offences or commute their penalties in accordance with law; and

(18) To handle petitions and complaints.

Article 51

If the Chief Executive of the Macao Special Administrative Region considers that a bill passed by the Legislative Council is not compatible
with the overall interests of the Region, he or she may give his or her reasons in writing and return it to the Legislative Council
within 90 days for reconsideration. If the Legislative Council passes the original bill again by not less than a two-thirds majority
of all the members, the Chief Executive must sign and promulgate it within 30 days or act in accordance with the provisions of Article
52 of this Law.

Article 52

The Chief Executive of the Macao Special Administrative Region may dissolve the Legislative Council under any of the following circumstances:

(1) The Chief Executive refuses to sign a bill passed the second time by the Legislative Council; and

(2) The Legislative Council refuses to pass a budget introduced by the government or any other bills which he or she considers concern
the overall interests of the Region, and after consultations, consensus still cannot be reached.

Before dissolving the Legislative Council, the Chief Executive must consult the Executive Council and he or she shall explain the
reason for it to the public.

The Chief Executive may dissolve the Legislative Council only once in each term of his or her office.

Article 53

If the Legislative Council of the Macao Special Administrative Region fails to pass the budget introduced by the government, the Chief
Executive may approve provisional short-term appropriations according to the level of expenditure of the previous fiscal year.

Article 54

The Chief Executive of the Macao Special Administrative Region must resign under any of the following circumstances:

(1) When he or she loses the ability to discharge his or her duties as a result of serious illness or other reasons;

(2) When, after the Legislative Council is dissolved because he or she twice refuses to sign a bill passed by it, the new Legislative
Council again passes by a two-thirds majority of all the members the original bill in dispute, but he or she still refuses to sign
it within 30 days; and

(3) When, after the Legislative Council is dissolved because it refuses to pass a budget or any other bill concerning the overall
interests of the Macao Special Administrative Region, the newly elected Legislative Council still refuses to pass the original bill
in dispute.

Article 55

If the Chief Executive of the Macao Special Administrative Region is not able to discharge his or her duties for a short period, such
duties shall temporarily be assumed by the secretaries of the departments in the order of precedence, which shall be stipulated by
law.

In the event that the office of Chief Executive becomes vacant, a new Chief Execut

REGULATIONS ON ADMINISTRATIVE PROTECTION OF PHARMACEUTICALS

Regulations on Administrative Protection of Pharmaceuticals

Chapter I General Provisions Chapter II Application for Administrative Protection Chapter III Examination and Approval of Administrative
Protection Chapter IV Duration, Cessation, Revocation and Effect of Administrative Protection Chapter V Supplementary Provisions

Article 1 These Regulations are formulated with a view to expanding economic and technological cooperation and exchange with
foreign countries and providing administrative protection for the lawful rights and interests of the owners of the exclusive
right of foreign pharmaceuticals.

Article 2 The pharmaceuticals as mentioned in these Regulations refer to medicines for human beings.

Article 3 Enterprises and other organizations or individuals from any country or region which has concluded bilateral treaty or agreement
with the People’s Republic of China on administrative protection of pharmaceuticals may apply for administrative
protection of pharmaceuticals in accordance with these Regulations.

Article 4 The competent administrative department for the production and distribution of pharmaceuticals under the State Council shall accept
and examine applications for administrative protection of pharmaceuticals, grant administrative protection to the pharmaceuticals
which conform with the provisions of these Regulations, and issue to the applicants the certificates for administrative
protection.

CHAPTER II APPLICATION FOR ADMINISTRATIVE PROTECTION

Article 5 A pharmaceutical to be applied for administrative protection shall meet the following requirements:

(1) Its exclusive right was not subject to protection in accordance with the provisions of the China’s Patent Law prior to January,
1, 1993;

(2) Its exclusive right to prohibit others from making, using or selling it in the country to which the applicant belongs was
granted after January 1, 1986 and before January 1, 1993;

(3) It has not been marketed in China prior to the date of filing the application for administrative protection.

Article 6 The right of applying for administrative protection of a pharmaceutical belongs to the owner of the exclusive right
of the pharmaceutical.

Article 7 Where an owner of the exclusive right of a foreign pharmaceutical applies for administrative protection, he shall
appoint an agency designated by the competent administrative department for the production and distribution of pharmaceuticals
under the State Council to undertake the matter.

Article 8 An applicant shall submit the Chinese and foreign language bilingual versions of following documents:

(1) an application for administrative protection of the pharmaceutical;

(2) a copy of the certificate issued by the competent authorities of the country to which the applicant belongs granting such exclusive
right;

(3) a copy of the document issued by the competent authorities of the country to which the application belongs approving the
manufacture or marketing of the pharmaceutical;

(4) a copy of the contract for the manufacture or marketing of the pharmaceutical in China formally entered into between the
applicant and a Chinese enterprise as legal person (including foreign capital enterprises, Chinese-foreign joint ventures,
or Chinese-foreign equity contractual joint ventures) which has been permitted to manufacture or market pharmaceuticals in
accordance with the relevant Chinese laws and regulations.

Article 9 Before or after applying for the administrative protection, the owner of the exclusive right of a foreign pharmaceutical shall
apply to the administrative department of health under the State Council for going through the procedures for permitting the
manufacture or marketing of the pharmaceutical in China, in accordance with the provisions of the Pharmaceutical Administration
Law of the People’s Republic of China.

CHAPTER III EXAMINATION AND APPROVAL OF ADMINISTRATIVE PROTECTION

Article 10 Within 15 days from the date of receipt of the application documents for administrative protection, the competent administrative
department for the production and distribution of pharmaceuticals under the State Council, upon preliminary examination, shall
handle the case in either of following measures according to different conditions:

(1) Where the application documents are in conformity with the provisions of Article 8 of these Regulations, issue
the notice of acceptance and announce it;

(2) Where the application documents are not in conformity with the provisions of Article 8 of these Regulations, require
the applicant to complete them within a definite time limit; if on the expiry of the time limit the requirement is not met,
the application shall be deemed as not having been filed.

Article 11 The competent administrative department for the production and distribution of pharmaceuticals under the State Council shall
finish the examination within six months from the date of receipt of the application documents, or from the date of receipt
of the complementary documents stipulated in Article 10, Item (2) of these Regulations. If, under special circumstances,
the examination cannot be finished within six months, the competent administrative department for the production and distribution
of pharmaceuticals under the State Council shall promptly notify the applicant, give the reason and properly prolong the
examination time.

After examination, where the application is in conformity with the provisions of these Regulations, the administrative protection
shall be granted; where the application is not in conformity with the provisions of these Regulations, no administrative protection
shall be granted and the reasons shall be given.

Article 12 Where a pharmaceutical is granted with administrative protection, the competent administrative department for the production
and distribution of pharmaceuticals under the State Council shall issue the certificate of administrative protection and make
an announcement.

CHAPTER IV DURATION, CESSATION, REVOCATION AND EFFECT OF ADMINISTRATIVE PROTECTION

Article 13 The duration of administrative protection of a pharmaceutical is seven years and six months beginning from the date on which
the certificate of administrative protection is issued.

Article 14 The owner of the exclusive right of a foreign pharmaceutical shall pay an annual fee beginning with the year in which the certificate
of administrative protection of the pharmaceutical is issued.

Article 15 In any of the following cases, the administrative protection shall cease before the expiration of its duration:

(1) where the exclusive right of a pharmaceutical is ineffective or becomes invalid in the country to which the applicant belongs;

(2) where the owner of the exclusive right of a pharmaceutical does not pay the annual fee as prescribed;

(3) where the owner of the exclusive right of a pharmaceutical waives the administrative protection by a written declaration;

(4) where the owner of the exclusive right of a pharmaceutical does not apply to the administrative department of health under
the State Council for going through the procedures for permitting the manufacture or marketing of this pharmaceutical in
China within a year from the date on which the certificate of administrative protection of the pharmaceutical is issued.

Article 16 After the certificate for administrative protection of a pharmaceutical has been issued, any organization or individual
that thinks that the grant of administrative protection to the pharmaceutical is not in conformity with the provisions of
these Regulations may request the competent administrative department for the production and distribution of pharmaceuticals
under the State Council to revoke the administrative protection of the pharmaceutical. Where the owner of the exclusive right
of the pharmaceutical is not satisfied with the revocation decision made by the competent administrative department for
the production and distribution of pharmaceuticals under the State Council, may institute legal proceedings in a people’s
court.

Article 17 The cessation or revocation of the administrative protection of a pharmaceutical shall be announced by the competent administrative
department for the production and distribution of pharmaceuticals under the State Council.

Article 18 For the pharmaceuticals which have obtained administrative protection, without the authorization of the owners of the exclusive
right of the pharmaceuticals, the administrative department of health under the State Council or the administrative departments
of health of provinces, autonomous regions or municipalities directly under the Central Government may not permit others
to manufacture or sell them.

Article 19 Where there is any manufacture or marketing of a pharmaceutical without authorization of the owner of the exclusive
right of the pharmaceutical who has obtained administrative protection, the owner of the exclusive right of the pharmaceutical
may request the competent administrative department for the production and distribution of pharmaceuticals under the State
Council to check the infringing act; if the owner of the exclusive right of the pharmaceutical claims for economic compensation,
he may institute a legal proceedings in a people’s court.

CHAPTER V SUPPLEMENTARY PROVISIONS

Article 20 The competent administrative department for the production and distribution of pharmaceuticals under the State Council shall
take measures to keep secret all the materials provided by applicants which require to be kept secret.

Article 21 Fees shall be paid as prescribed for filing the application for administrative protection of pharmaceuticals and fulfilling
any other relevant procedures with the competent administrative department for the production and distribution of pharmaceuticals
under the State Council.

Article 22 The rules for the implementation of these Regulations shall be formulated by the competent administrative department for
the production and distribution of pharmaceuticals under the State Council.

Article 23 The competent administrative department for the production and distribution of pharmaceuticals under the State Council
shall be responsible for the interpretation of these Regulations.

Article 24 These Regulations shall enter into force as of January 1, 1993.

MOFTEC P.R.C.

EDITOR:Victor

CIRCULAR ON SOME EXTERNAL TAXATION POLICY QUESTIONS CONCERNING PILOT ENTERPRISES EXPERIMENTING WITH THE SHAREHOLDING SYSTEM

Circular on Some External Taxation Policy Questions Concerning Pilot Enterprises Experimenting With the Shareholding System

(Effective Date:1993.12.03–Ineffective Date:)

To the tax bureaus of various provinces, municipalities and autonomous regions, the tax bureaus of various cities with independent
planning and various sub-bureaus of the Offshore Oil Tax Administration:

In accordance with the stipulations of the Circular of the State Administration of Taxation on the Shareholding System Pilot Enterprises
Applicable Taxation Legal Question, a document Coded Guo Shui Fa [1993] No. 087, we hereby clarify as follows the taxation policy
question related to shareholding enterprises which pay various taxes in light of the external tax law:

I. The taxation handling of asset revaluation and variable-value

(1) With regard to enterprise with foreign investment which are reorganized or merged with other enterprises into shareholding enterprises,
and the original enterprise with foreign investment which have cancelled registration with the administrative department for industry
and commerce, their changed value of subscribed shares used as investment and their book value shall be included in gains and losses
of the original enterprise with foreign investment, and on the basis of which enterprise income tax is calculated and paid.

(2) If the original enterprise with foreign investment has conducted taxation handling in accordance with the stipulations of the
above clause, the newly organized shareholding enterprise may reevaluate the assets of the original enterprise with foreign investment
and affirm their value and enter it as investment into the account book and, on the basis of which calculate the depreciation or
amortization of the assets; if the original enterprise with foreign investment has not conducted taxation handling in accordance
with the stipulations of the above clause, that changed value of the assets of the original enterprise with foreign investment, which
is reassessed by the newly organized shareholding enterprise, shall be readjusted in light of the method stipulated in Clause (3)
of this Article.

(3) If the shareholding enterprise sells shares to society or increases the issuance of shares and carries out reevaluation of various
assets in accordance with related stipulations, the changed value, when the enterprise declares payment of enterprise income tax,
shall not be included in the enterprise gains and losses and the book value of the enterprise assets shall not thereby be readjusted.
If the enterprise has made account readjustment in its account book of the changed value of the reevaluated assets and has calulated
and drawn depreciation or amortization in accordance with the readjusted number of the account book, or has charged to cost and expenses
by other methods, the enterprise shall, while declaring annual tax payment, make readjustment by the following methods:

(1) Making yearly readjustments as things really are. The current cost and expense which are counted more or less than what they should
be by the method of depreciation or amortization in each tax-paying year resulting from the changed value of the reevaluation of
assets made by the enterprise shall be readjusted in the current cost and expense column of the yearly tax-paying declaration form,
the taxable amount of income shall be increased or decreased correspondingly.

(2) Comprehensive readjustments. For the part of change resulting from the reassessment of the enterprise assets, readjustments may
be made to the current cost and expense items declared for annual tax payment on an average 10-year period basis without distinguishing
the asset projects, the taxable amount of income shall be increased or decreased correspondingly.

The enterprise may choose either one of the above-mentioned two methods and report to local competent tax authorities for use after
receiving approval. When declaring for annual tax payment, the enterprise shall send related calculating materials together to local
competent tax authorities for examination and approval.

II. Questions concerning enjoying regular preferential income tax reduction and exemption

(1) The regrouping of enterprise with foreign investment or merging with other enterprises into shareholding enterprises. When the
original enterprise with foreign investment which have performed the procedures for cancellation of registration with the administrative
department for industry and commerce, the newly organized shareholding enterprise which simultaneously conform with the following
conditions may enjoy regular preferential tax reduction and exemption in accordance with the stipulations of Article 8 of the Income
Tax Law on enterprise with foreign investment and Foreign Enterprises (hereinafter referred to as Tax Law).

(1) The original enterprise with foreign investment has carried out tax handling of its reassessed assets in accordance with the stipulations
of Clause (1) of Article 1 of this Circular.

(2) The original enterprise with foreign investment whose actual operational period has not reached the operational time limit for
enjoying related regular preferential tax reduction and exemption as stipulated in the Tax Law, but it has repaid the already exempted
and reduced enterprise income tax.

If it does not meet the above conditions, the newly organized shareholding enterprise shall not re-enjoy the regular preferential
tax reduction and exemption as stipulated in Article 8 of the Tax Law. But if the original enterprise with foreign investment which
has not started or the period has not expired for enjoying regular preferential tax reduction and exemption in accordance with the
stipulations of Article 8 of the Tax Law, the newly organized shareholding enterprise may continue to enjoy the above-mentioned preferential
tax treatment till expiration of the period in accordance with the stipulation of the Tax Law.

(2) The shareholding enterprise established by a enterprise with foreign investment or a foreign investor who invests in the capacity
of a shareholder may enjoy regular preferential reduction and exemption of enterprise income tax in accordance with the stipulations
of Article 8 of the Tax Law.

III. Tax handling related to the issuance of stocks at a premium

For an enterprise which issues stocks, the part of premium resulting from the price of the stock issued being higher than the face
value of the stocks is regarded as the rights and interests of the enterprise shareholder, and not as business profits on which enterprise
income tax is to be levied; during enterprise liquidation, this part shall not included in the taxable liquidation income.

IV. Questions concerning the treatment of applicable reinvestment tax reimbursement

In the case of a foreign investor who uses the profits (dividends) gained from a enterprise with foreign investment or a shareholding
enterprise to buy shares (including secondary shares) of the enterprise, or shares of any other enterprise, it is not applicable
to the preferential regulations concerning the refunding of tax as set in the Tax Law.

RULES ON THE ORIGIN OF EXPORT COMMODITIES

Category	FOREIGN TRADE	Organ of Promulgation	The State Council	Status of Effect	In Force
Date of Promulgation	1992-03-08	Effective Date	1992-05-01

Rules of the People’s Republic of China on the Origin of Export Commodities

(Adopted at the 99th Executive Meeting of the State Council on February

28, 1992, promulgated by Decree No. 94 of the State Council of the People’s
Republic of China on March 8, 1992, and effective as of May 1, 1992)

Article 1 These Rules are formulated to strengthen the control on the
work of origin of export commodities and to promote the development of foreign
economic relations and trade.

Article 2 The People’s Republic of China Export Commodity Origin
Certificate (hereinafter referred to as the Certificate of Origin) shall be a
certificate testifying that the People’s Republic of China is the origin of
the export commodity.

Article 3 The State competent department in charge of foreign economic
relations and trade shall be responsible for the unified supervision and
control on the work of origin of export commodities conducted throughout
China.

The competent departments in charge of foreign economic relations and
trade under the people’s governments of provinces, autonomous regions and
municipalities directly under the Central Government shall be responsible for
coordinating the work of origin of export commodities within their respective
administrative regions.

Article 4 Import and export commodity inspection organs established
locally by the State administrations for import and export commodity
inspection, China Council for the Promotion of International Trade and its
sub-councils, as well as other authorities designated by the State competent
department in charge of foreign economic relations and trade shall sign and
issue Certificates of Origin in accordance with the provisions of the State
competent department in charge of foreign economic relations and trade.

Article 5 Enterprises established according to law within the territory
of the People’s Republic of China which are authorized to conduct foreign
trade operations, enterprises engaging in “commission processing,” “sample
processing,” “commissioned parts assembly” and “compensation trade” and
enterprises with foreign investment may, pursuant to their requirements, apply
to the certificateissuing authorities stipulated in Article 4 of these Rules
to obtain Certificates of Origin.

Article 6 The People’s Republic of China shall be the origin of these
export commodities complying with one of the following standards:

1. Products produced or manufactured entirely within the territory of the
People’s Republic of China, including:

(1) mineral products extracted from within the territory and the
continental shelf of the People’s Republic of China;

(2) plants and plant products harvested or gathered from within the
territory of the People’s Republic of China;

(3) animals and animal products bred and raised within the territory of
the People’s Republic of China;

(4) products obtained through hunting and fishing within the territory of
the People’s Republic of China;

(5) marine products and other products, as well as their processed
products, obtained from the ocean by vessels or other means of the People’s
Republic of China;

(6) waste and waste materials resulting from manufacturing and processing
work undertaken within the territory of the People’s Republic of China, as
well as other waste and used items collected within the territory of the
People’s Republic of China;

(7) products processed within the territory of the People’s Republic of
China entirely with the use of the aforesaid products and other non-imported
raw materials.

2. Those products the raw materials and parts used for which are partly or
entirely imported and the main and final manufacturing and processing stages
of which are conducted within the territory of the People’s Republic of China,
causing thus substantive change in the products’ appearance, properties, form
or usage. The State competent department in charge of foreign economic
relations and trade shall, in consultation with the relevant departments under
the State Council, formulate and adjust a detailed list of manufacturing and
processing procedures, pursuant to the principle of manufacturing and
processing processes as the main part, while the composition ratio as the
supplementary part.

Article 7 An export commodity under application for a Certificate of
Origin must comply with the origin standards. If a commodity fails to comply
with these standards, the certificate-issuing authority shall refuse to sign
and issue a Certificate of Origin.

Article 8 The procedures for the application for and the issuing of
Certificates of Origin shall be stipulated by the State competent department
in charge of foreign economic relations and trade.

Article 9 The State competent department in charge of foreign economic
relations and trade may, on its own or according to the proposals of the
competent departments in charge of foreign economic relations and trade under
the people’s governments of provinces, autonomous regions or municipalities
directly under the Central Government depending on the circumstances,
circulate a notice of criticism, suspend or even disqualify an enterprise from
applying for a Certificate of Origin if the enterprise violates these Rules in
any of the following ways:

(1) providing false materials in order to fraudulently obtain a
Certificate of Origin;

(2) forging or altering a Certificate of Origin;

(3) illegally assigning a Certificate of Origin.

The persons in charge of the enterprise involved in any of the aforesaid
acts and the persons directly responsible for such acts shall be the subject
of administrative sanctions; if circumstances are serious enough to constitute
a crime, criminal responsibility shall be investigated in accordance with the
law.

Article 10 If a certificateissuing authority, violating provisions,
issues or refuses to issue a Certificate of Origin, the State competent
department in charge of foreign economic relations and trade may, on its own
or according to the proposals of the competent departments in charge of
foreign economic relations and trade under the people’s governments of
provinces, autonomous regions or municipalities directly under the Central
Government, depending on the circumstances, circulate a notice of criticism or
suspend the authority’s right to issue Certificates of Origin.

Personnel of certificateissuing authorities who practise graft, abuse
their powers of office or neglect their duties shall be the subject of
administrative sanctions; if circumstances are serious enough to constitute a
crime, criminal responsibility shall be investigated in accordance with the
law.

Article 11 Generalized System of Preference Certificates of Origin shall
be handled in accordance with the origin rules of the Generalized System of
Preference giving country.

If a bilateral agreement concluded between the governments of the People’s
Republic of China and a foreign country stipulates special provisions on the
issuing of Certificates of Origin, matters shall be handled pursuant to the
provisions of the agreement.

Article 12 The State competent department in charge of foreign economic
relations and trade shall formulate implementing measures in accordance with
these Rules.

Article 13 The State competent department in charge of foreign economic
relations and trade shall be responsible for the interpretation of these
Rules.

Article 14 These Rules shall enter into effect as of May 1, 1992.

MARITIME CODE

Category	MARITIME AFFAIRS	Organ of Promulgation	The Standing Committee of the National People’s Congress	Status of Effect	In Force
Date of Promulgation	1992-11-07	Effective Date	1993-07-01

Maritime Code of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Ships
Chapter III  Crew
Chapter IV  Contract of Carriage of Goods by Sea
Chapter V  Contract of Carriage of Passengers by Sea
Chapter VI  Charter Parties
Chapter VII  Contract of Sea Towage
Chapter VIII  Collision of Ships
Chapter IX  Salvage at Sea
Chapter X  General Average
Chapter XI  Limitation of Liability for Maritime Claims
Chapter XII  Contract of Marine Insurance
Chapter XIII  Limitation of Time
Chapter XIV  Application of Law in Relation to Foreign-related Matters
Chapter XV  Supplementary Provisions

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

National People’s Congress on November 7, 1992, promulgated by Order No. 64
of the President of the People’s Republic of China on November 7, 1992, and
effective as of July 1, 1993)
Contents

Chapter I General Provisions

Chapter II Ships

Section 1 Ownership of Ships

Section 2 Mortgage of Ships

Section 3 Maritime Liens

Chapter III Crew

Section 1 Basic Principles

Section 2 The Master

Chapter IV Contract of Carriage of Goods by Sea

Section 1 Basic Principles

Section 2 Carrier’s Responsibilities

Section 3 Shipper’s Responsibilities

Section 4 Transport Documents

Section 5 Delivery of Goods

Section 6 Cancellation of Contract

Section 7 Special Provisions Regarding Voyage Charter Party

Section 8 Special Provisions Regarding Multimodal Transport Contract

Chapter V Contract of Carriage of Passengers by Sea

Chapter VI Charter Parties

Section 1 Basic Principles

Section 2 Time Charter Party

Section 3 Bareboat Charter Party

Chapter VII Contract of Sea Towage

Chapter VIII Collision of Ships

Chapter IX Salvage at Sea

Chapter X General Average

Chapter XI Limitation of Liability for Maritime Claims

Chapter XII Contract of Marine Insurance

Section 1 Basic Principles

Section 2 Conclusion, Termination and Assignment of Contract

Section 3 Obligations of the Insured

Section 4 Liability of the Insurer

Section 5 Loss of or Damage to the Subject Matter Insured and
Abandonment

Section 6 Payment of Indemnity

Chapter XIII Limitation of Time

Chapter XIV Application of Law in Relation to Foreignrelated Matters

Chapter XV Supplementary Provisions
Chapter I General Provisions

Article 1 This Code is enacted with a view to regulating the relations
arising from maritime transport and those pertaining to ships, to securing and
protecting the legitimate rights and interests of the parties concerned, and
to promoting the development of maritime transport, economy and trade.

Article 2 “Maritime transport” as referred to in this Code means the
carriage of goods and passengers by sea, including the sea-river and river-sea
direct transport.

The provisions concerning contracts of carriage of goods by sea as
contained in Chapter IV of this Code shall not be applicable to the maritime
transport of goods between the ports of the People’s Republic of China.

Article 3 “Ship” as referred to in this Code means sea-going ships and
other mobile units, but does not include ships or craft to be used for
military or public service purposes, nor small ships of less than 20 tons
gross tonnage.

The term “ship” as referred to in the preceding paragraph shall also
include ship’s apparel.

Article 4 Maritime transport and towage services between the ports of the
People’s Republic of China shall be undertaken by ships flying the national
flag of the People’s Republic of China, except as otherwise provided for by
laws or administrative rules and regulations.

No foreign ships may engage in the maritime transport or towage services
between the ports of the People’s Republic of China unless permitted by the
competent authorities of transport and communications under the State Council.

Article 5 Ships are allowed to sail under the national flag of the
People’s Republic of China after being registered, as required by law, and
granted the nationality of the People’s Republic of China.

Ships illegally flying the national flag of the People’s Republic of China
shall be prohibited and fined by the authorities concerned.

Article 6 All matters pertaining to maritime transport shall be
administered by the competent authorities of transport and communications
under the State Council. The specific measures governing such administration
shall be worked out by such authorities and implemented after being submitted
to and approved by the State Council.
Chapter II Ships

Section I Ownership of Ships

Article 7 The ownership of a ship means the shipowner’s rights to
lawfully possess, utilize, profit from and dispose of the ship in his
ownership.

Article 8 With respect to a State-owned ship operated by an enterprise
owned by the whole people having a legal person status granted by the State,
the provisions of this Code regarding the shipowner shall apply to that legal
person.

Article 9 The acquisition, transference or extinction of the ownership of
a ship shall be registered at the ship registration authorities; no
acquisition, transference or extinction of the ship’s ownership shall act
against a third party unless registered.

The transference of the ownership of a ship shall be made by a contract in
writing.

Article 10 Where a ship is jointly owned by two or more legal persons or
individuals, the joint ownership thereof shall be registered at the ship
registration authorities. The joint ownership of the ship shall not act
against a third party unless registered.

Section 2 Mortgage of Ships

Article 11 The right of mortgage with respect to a ship is the right of
preferred compensation enjoyed by the mortgagee of that ship from the proceeds
of the auction sale made in accordance with law where and when the mortgagor
fails to pay his debt to the mortgagee secured by the mortgage of that ship.

Article 12 The owner of a ship or those authorized thereby may establish
the mortgage of the ship.

The mortgage of a ship shall be established by a contract in writing.

Article 13 The mortgage of a ship shall be established by registering the
mortgage of the ship with the ship registration authorities jointly by the
mortgagee and the mortgagor. No mortgage may act against a third party unless
registered.

The main items for the registration of the mortgage of a ship shall be:

(1) Name or designation and address of the mortgagee and the name or
designation and address of the mortgagor of the ship;

(2) Name and nationality of the mortgaged ship and the authorities that
issued the certificate of ownership and the certificate number thereof;

(3) Amount of debt secured, the interest rate and the period for the
repayment of the debt.

Information about the registration of mortgage of ships shall be
accessible to the public for enquiry.

Article 14 Mortgage may be established on a ship under construction.

In registering the mortgage of a ship under construction, the building
contract of the ship shall as well be submitted to the ship registration
authorities.

Article 15 The mortgaged ship shall be insured by the mortgagor unless
the contract provides otherwise. In case the ship is not insured, the
mortgagee has the right to place the ship under insurance coverage and the
mortgagor shall pay for the premium thereof.

Article 16 The establishment of mortgage by the joint owners of a ship
shall, unless otherwise agreed upon among the joint owners, be subject to the
agreement of those joint owners who have more than two-thirds of the shares
thereof.

The mortgage established by the joint owners of a ship shall not be
affected by virtue of the division of ownership thereof.

Article 17 Once a mortgage is established on a ship, the ownership of the
mortgaged ship shall not be transferred without the consent of the mortgagee.

Article 18 In case the mortgagee has transferred all or part of his right
to debt secured by the mortgaged ship to another person, the mortgage shall be
transferred accordingly.

Article 19 Two or more mortgages may be established on the same ship. The
ranking of the mortgages shall be determined according to the dates of their
respective registrations.

In case two or more mortgages are established, the mortgagees shall be
paid out of the proceeds of the auction sale of the ship in the order of
registration of their respective mortgages. The mortgages registered on the
same date shall rank equally for payment.

Article 20 The mortgages shall be extinguished when the mortgaged ship is
lost. With respect to the compensation paid from the insurance coverage on
account of the loss of the ship, the mortgagee shall be enpost_titled to enjoy
priority in compensation over other creditors.

Section 3 Maritime Liens

Article 21 A maritime lien is the right of the claimant, subject to the
provisions of Article 22 of this Code, to take priority in compensation
against shipowners, bareboat charterers or ship operators with respect to the
ship which gave rise to the said claim.

Article 22 The following maritime claims shall be enpost_titled to maritime
liens:

(1) Payment claims for wages, other remuneration, crew repatriation and
social insurance costs made by the Master, crew members and other members of
the complement in accordance with the relevant labour laws, administrative
rules and regulations or labour contracts;

(2) Claims in respect of loss of life or personal injury occurred in the
operation of the ship;

(3) Payment claims for ship’s tonnage dues, pilotage dues, harbour dues
and other port charges;

(4) Payment claims for salvage payment;

(5) Compensation claims for loss of or damage to property resulting from
tortious act in the course of the operation of the ship.

Compensation claims for oil pollution damage caused by a ship carrying
more than 2,000 tons of oil in bulk as cargo that has a valid certificate
attesting that the ship has oil pollution liability insurance coverage or
other appropriate financial security are not within the scope of sub-paragraph
(5) of the preceding paragraph.

Article 23 The maritime claims set out in paragraph 1 of Article 22
shall be satisfied in the order listed. However, any of the maritime claims
set out in sub-paragraph(4) arising later than those under sub-paragraph (1)
through (3) shall have priority over those under sub-paragraph (1) through
(3). In case there are more than two maritime claims under sub-paragraphs
(1),(2),(3) or (5) of paragraph 1 of Article 22, they shall be satisfied at
the same time regardless of their respective occurrences; where they could not
be paid in full, they shall be paid in proportion. Should there be more than
two maritime claims under subparagraph (4), those arising later shall be
satisfied first.

Article 24 The legal costs for enforcing the maritime liens, the expenses
for preserving and selling the ship, the expenses for distribution of the
proceeds of sale and other expenses incurred for the common interests of the
claimants, shall be deducted and paid first from the proceeds of the auction
sale of the ship.

Article 25 A maritime lien shall have priority over a possessory lien,
and a possessory lien shall have priority over ship mortgage.

The possessory lien referred to in the preceding paragraph means the right
of the ship builder or repairer to secure the building or repairing cost of
the ship by means of detaining the ship in his possession when the other party
to the contract fails in the performance thereof. The possessory lien shall be
extinguished when the ship builder or repairer no longer possesses the ship he
has built or repaired.

Article 26 Maritime liens shall not be extinguished by virtue of the
transfer of the ownership of the ship, except those that have not been
enforced within 60 days of a public notice on the transfer of the ownership of
the ship made by a court at the request of the transferee when the transfer
was effected.

Article 27 In case the maritime claims provided for in Article 22 of this
Code are transferred, the maritime liens attached thereto shall be transferred
accordingly.

Article 28 A maritime lien shall be enforced by the court by arresting
the ship that gave rise to the said maritime lien.

Article 29 A maritime lien shall, except as provided for in Article 26 of
this Code, be extinguished under one of the following circumstances:

(1) The maritime claim attached by a maritime lien has not been enforced
within one year of the existence of such maritime lien;

(2) The ship in question has been the subject of a forced sale by the
court;

(3) The ship has been lost.

The period of one year specified in sub-paragraph (1) of the preceding
paragraph shall not be suspended or interrupted.

Article 30 The provisions of this Section shall not affect the
implementation of the limitation of liability for maritime claims provided for
in Chapter XI of this Code.
Chapter III Crew

Section 1 Basic Principles

Article 31 The term “crew” means the entire complement of the ship,
including the Master.

Article 32 The Master, deck officers, chief engineer, engineers,
electrical engineer and radio operator must be those in possession of
appropriate certificates of competency.

Article 33 Chinese “crew” engaged in international voyages must possess
Seaman’s Book and other relevant certificates issued by the harbour
superintendency authorities of the People’s Republic of China.

Article 34 In the absence of specific stipulations in this Code as
regards the employment of the crew as well as their labour-related rights and
obligations, the provisions of the relevant laws and administrative rules and
regulations shall apply.

Section 2 The Master

Article 35 The Master shall be responsible for the management and
navigation of the ship.

Orders given by the Master within the scope of his functions and powers
must be carried out by other members of the crew, the passengers and all
persons on board.

The Master shall take necessary measures to protect the ship and all
persons on board, the documents, postal matters, the goods as well as other
property carried.

Article 36 To ensure the safety of the ship and all persons on board, the
Master shall be enpost_titled to confine or take other necessary measures against
those who have committed crimes or violated laws or regulations on board, and
to guard against their concealment, destruction or forging of evidence.

The Master, having taken actions as referred to in the preceding paragraph
of this Article, shall make a written report of the case, which shall bear the
signature of the Master himself and those of two or more others on board, and
shall be handed over, together with the offender, to the authorities concerned
for disposition.

Article 37 The Master shall make entries in the log book of any
occurrence of birth or death on board and shall issue a certificate to that
effect in the presence of two witnesses. The death certificate shall be
attached with a list of personal belongings of the deceased, and attestation
shall be given by the Master to the will, if any, of the deceased. Both the
death certificate and the will shall be taken into safe keeping by the Master
and handed over to the family members of the deceased or the organizations
concerned.

Article 38 Where a sea casualty has occurred to a ship and the life and
property on board have thus been threatened, the Master shall, with crew
members and other persons on board under his command, make best efforts to run
to the rescue. Should the foundering and loss of the ship have become
inevitable, the Master may decide to abandon the ship. However, such
abandonment shall be reported to the shipowner for approval except in case of
emergency.

Upon abandoning the ship, the Master must take all measures first to
evacuate the passengers safely from the ship in an orderly way, then make
arrangements for crew members to evacuate, while the Master shall be the last
to evacuate. Before leaving the ship, the Master shall direct the crew members
to do their utmost to rescue the deck log book, the engine log book, the oil
record book, the radio log book, the charts, documents and papers used in the
current voyage, as well as valuables, postal matters and cash money.

Article 39 The duty of the Master in the management and navigation of the
ship shall not be absolved even with the presence of a pilot piloting the
ship.

Article 40 Should death occur to the Master or the Master be unable to
perform his duties for whatever reason, the deck officer with the highest rank
shall act as the Master; before the ship sails from its next port of call, the
shipowner shall appoint a new Master to take command.
Chapter IV Contract of Carriage of Goods by Sea

Section 1 Basic Principles

Article 41 A contract of carriage of goods by sea is a contract under
which the carrier, against payment of freight, undertakes to carry by sea the
goods contracted for shipment by the shipper from one port to another.

Article 42 For the purposes of this Chapter:

(1) “Carrier” means the person by whom or in whose name a contract of
carriage of goods by sea has been concluded with a shipper;

(2) “Actual carrier” means the person to whom the performance of carriage
of goods, or of part of the carriage, has been entrusted by the carrier, and
includes any other person to whom such performance has been entrusted under a
sub-contract;

(3) “Shipper” means:

a) The person by whom or in whose name or on whose behalf a contract of
carriage of goods by sea has been concluded with a carrier;

b) The person by whom or in whose name or on whose behalf the goods have
been delivered to the carrier involved in the contract of carriage of goods by
sea;

(4) “Consignee” means the person who is enpost_titled to take delivery of the
goods;

(5) “Goods” includes live animals and containers, pallets or similar
articles of transport supplied by the shipper for consolidating the goods.

Article 43 The carrier or the shipper may demand confirmation of the
contract of carriage of goods by sea in writing. However, voyage charter shall
be done in writing. Telegrams, telexes and telefaxes have the effect of
written documents.

Article 44 Any stipulation in a contract of carriage of goods by sea or a
bill of lading or other similar documents evidencing such contract that
derogates from the provisions of this Chapter shall be null and void. However,
such nullity and voidness shall not affect the validity of other provisions of
the contract or the bill of lading or other similar documents. A clause
assigning the benefit of insurance of the goods in favour of the carrier or
any similar clause shall be null and void.

Article 45 The provisions of Article 44 of this Code shall not prejudice
the increase of duties and obligations by the carrier besides those set out in
this Chapter.

Section 2 Carrier’s Responsibilities

Article 46 The responsibilities of the carrier with regard to the goods
carried in containers covers the entire period during which the carrier is in
charge of the goods, starting from the time the carrier has taken over the
goods at the port of loading, until the goods have been delivered at the port
of discharge. The responsibility of the carrier with respect to
non-containerized goods covers the period during which the carrier is in
charge of the goods, starting from the time of loading of the goods onto the
ship until the time the goods are discharged therefrom. During the period the
carrier is in charge of the goods, the carrier shall be liable for the loss of
or damage to the goods, except as otherwise provided for in this Section.

The provisions of the preceding paragraph shall not prevent the carrier
from entering into any agreement concerning carrier’s responsibilities with
regard to non-containerized goods prior to loading onto and after discharging
from the ship.

Article 47 The carrier shall, before and at the beginning of the voyage,
exercise due diligence to make the ship seaworthy, properly man, equip and
supply the ship and to make the holds, refrigerating and cool chambers and all
other parts of the ship in which goods are carried, fit and safe for their
reception, carriage and preservation.

Article 48 The carrier shall properly and carefully load, handle, stow,
carry, keep, care for and discharge the goods carried.

Article 49 The carrier shall carry the goods to the port of discharge on
the agreed or customary or geographically direct route.

Any deviation in saving or attempting to save life or property at sea or
any reasonable deviation shall not be deemed to be an act deviating from the
provisions of the preceding paragraph.

Article 50 Delay in delivery occurs when the goods have not been
delivered at the designated port of discharge within the time expressly agreed
upon.

The carrier shall be liable for the loss of or damage to the goods caused
by delay in delivery due to the fault of the carrier, except those arising or
resulting from causes for which the carrier is not liable as provided for in
the relevant Articles of this Chapter.

The carrier shall be liable for the economic losses caused by delay in
delivery of the goods due to the fault of the carrier, even if no loss of or
damage to the goods had actually occurred, unless such economic losses had
occurred from causes for which the carrier is not liable as provided for in
the relevant Articles of this Chapter.

The person enpost_titled to make a claim for the loss of goods may treat the
goods as lost when the carrier has not delivered the goods within 60 days from
the expiry of the time for delivery specified in paragraph 1 of this Article.

Article 51 The carrier shall not be liable for the loss of or damage to
the goods occurred during the period of carrier’s responsibility arising or
resulting from any of the following causes:

(1) Fault of the Master, crew members, pilot or servant of the carrier in
the navigation or management of the ship;

(2) Fire, unless caused by the actual fault of the carrier;

(3) Force majeure and perils, dangers and accidents of the sea or other
navigable waters;

(4) War or armed conflict;

(5) Act of the government or competent authorities, quarantine
restrictions or seizure under legal process;

(6) Strikes, stoppages or restraint of labour;

(7) Saving or attempting to save life or property at sea;

(8) Act of the shipper, owner of the goods or their agents;

(9) Nature or inherent vice of the goods;

(10) Inadequacy of packing or insufficiency or illegibility of marks;

(11) Latent defect of the ship not discoverable by due diligence;

(12) Any other causes arising without the fault of the carrier or his
servant or agent.

The carrier who is enpost_titled to exoneration from the liability for
compensation as provided for in the preceding paragraph shall, with the
exception of the causes given in sub-paragraph (2), bear the burden of proof.

Article 52 The carrier shall not be liable for the loss of or damage to
the live animals arising or resulting from the special risks inherent in the
carriage thereof. However, the carrier shall be bound to prove that he has
fulfilled the special requirements of the shipper with regard to the carriage
of the live animals and that under the circumstances of the sea carriage, the
loss or damage has occurred due to the special risks inherent therein.

Article 53 In case the carrier intends to ship the goods on deck, he
shall come into an agreement with the shipper or comply with the custom of the
trade or the relevant laws or administrative rules and regulations.

When the goods have been shipped on deck in accordance with the provisions
of the preceding paragraph, the carrier shall not be liable for the loss of or
damage to the goods caused by the special risks involved in such carriage.

If the carrier, in breach of the provisions of the first paragraph of this
Article, has shipped the goods on deck and the goods have consequently
suffered loss or damage, the

CUSTOMS REGULATIONS OF PRC CONCERNING THE CONTROL OVER PASSING TRAVELLERS’ LUGGAGE AND ARTICLES

Customs Regulations of PRC Concerning the Control over Passing Travellers’ Luggage and Articles

(Effective Date:1991.09.10–Ineffective Date:)

Article 1 The present regulations are formulated on the basis of the Customs Law of the People’s Republic of China and the Customs Regulations
of the People’s Republic of China Concerning the Supervision and Control over Luggage and Article of Incoming and Outgoing Passengers.

Article 2 For the purpose of the present regulations, the term “passing Travellers” means passengers who come from a place outside the territory
and pass through the territory en route to a place outside the territory with valid passing visa (or with valid passport for passengers
come from countries which are mutually visa-free with our country); and incoming passengers who do not leave the Customs surveillance
zone or not leave the means of transport under the Customs control before leaving the territory.

Article 3 Passing travellers, who do not leave the Customs surveillance zone or not leave the means of transport under the Customs control
at the port of entry may be exempted from filling the “Declaration Form for Passengers’ Luggage”. The Customs shall not examine the
luggage of these passengers except those Customs deemed necessary for an inspection.

Article 4 Luggage carried by passing travellers who leave the Customs surveillance zone during the passing period shall be limited as their
travelling necessities and be dealt with in accordance with Customs regulations on luggage for inward and outward shortterm passengers
of non-residents, those belong to the items 3, 4 and 5 in the Classification List of Luggage and Articles of Incoming and Outgoing
Passengers (see Annex I) shall be released with temporary duty-exemption after being verified and noted by the Customs with in the
regulated scope, and the travelling passengers shall take back these luggage and articles when they leave the territory. Luggage
and articles beyond the regulated scope shall not be permitted in, except for those to be dealt with according to Article 5 of the
present regulations.

Article 5 Articles carried by travelling passengers beyond the releasing scope prescribed in Article 4 of the present regulations shall be
undertaken by the Customs approved or appointed company engaged in declaration and transportation which entrusted by the passengers,
and the company shall complete the formalities of Customs transit goods for these articles, otherwise the articles shall not be permitted
in.

Article 6 Except for those release by the special approval of the Customs General Administration with duty-payment or guarantee, articles not
permitted in shall be taken back and cleared with related Customs formalities by the owner of the article within 3 months from the
day which the articles are declared for entering the territory. Those do not complete with the above-mentioned formalities within
the prescribed time-limit shall be dealt with in accordance with Article 33 of the Customs Law of the People’s Republic of China.

Article 7 Transit articles approved by the Customs and travelling necessities with temporary duty-exemption after Customs registration shall
not be left within the territory without the Customs authorization. Article unable to be taken back by reasons of lost, stolen or
force majeure shall be provided with approving documents issued by the public security office and the person concerned shall go through
the Customs clearance procedures. Those without approving documents shall have the duties paid.

Article 8 No passing traveller shall be allowed to take articles listed in the List of Article Prohibited by the People’s Republic of China
from Entering or Leaving the Territory (see Annex II) no matter he leaves the Customs surveillance zone or not.

Article 9 Any activity of the passing travellers in violation of the present regulations shall be punished in accordance with the Customs Law
of the People’s Republic of China and the Regulations for Imposing Administrative Penalties under the Customs Law of the People’s
Republic of China.

Article 10 The present regulations shall be put into effect as of September 10, 1991.

ANNEX I

CLASSIFICATION LIST OF LUGGAGE AND ARTICLES OF INCOMING AND OUTGOING PASSENGERS

Item I Foodstuffs, clothing materials, clothes and works of arts and crafts, Watches and other daily necessities valued less than
RMB 200 yuan (including RMB 200 yuan)

Item II Cigarettes Wine and spirits

Item III Daily necessities valued more than RMB 1,000 yuan

Item IV TV sets, washing machines, refrigerators, cameras, audio systems, radio cassette recorders, motorcycles and other daily necessities
valued between RMB 500 yuan and RMB 1,000 yuan (including RMB 1,000 yuan)

Item V Typewriters Electronic keyboard, cameras and other daily necessities valued between RMB 200 yuan and RMB 500 yuan (including
RMB 500 yuan)

Notes:

1. The value of the inward articles referred to in the List shall be determined by reference of the duty-paying value assessed by
the Customs. The value of the outward articles shall be the prices listed on the domestic legal commercial invoices.

2. The specific allowances for duty-paying or duty-free articles in the List, which is allowed to be carried by various kinds of passengers,
shall be regulated by the Customs General Administration separately.

3. Named articles without value-limitation in the List shall not be classified by their valueness.

ANNEX II

LIST OF ARTICLES PROHIBITED BY THE PEOPLE’S REPUBLIC OF CHINA FROM ENTERING OR LEAVING THE TERRITORY

I Articles prohibited from entering the territory

1. Arms, ammunition and explosives of all kinds;

2. Counterfeit currencies and counterfeit negotiable securities;

3. Printed matter, films, photographs, gramophone records, cinematographic films, loaded recording tapes and video-tapes, compact
discs (video and audio), storage medium for the computer and other articles which are detrimental to the political, economic, cultural
and moral interests of China;

4. Deadly poisons of all kinds;

5. Opium, morphia, heroin, marijuana and other addiction-inducing drugs and psychedelics;

6. Animals, plants and products thereof infected with or carrying disease germs, insect pests and other harmful organisms;

7. Foodstuff, medicines and other articles coming from epidemic-striken areas and harmful to man and live-stock or those capable of
spreading diseases;

8. Renminbi (with the exception of Renminbi dealt with the carried in compliance with an agreement or protocol on the exchange of
national currencies in the case of Foreign Exchange Certificates, relevant regulations shall be applied).

II Articles prohibited from leaving the territory

1. All articles enumerated as articles prohibited from importation;

2. Manuscripts, printed matter, films, photographs, gramophone records, cinematographic films, loaded recording tapes, video-tapes,
compact discs (video and audio), storage medium for the computer and other articles which involve state secrets;

3. Valuable cultural relics and other relics prohibited from exportation;

4. endangered and rare animals and plants (including their specimens) and their seeds or reproducing materials.

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING CONSULAR PRIVILEGES AND IMMUNITIES

Regulations of the People’s Republic of China Concerning Consular Privileges and Immunities



	(Adopted at the 16th Meeting of the Standing Committee of the Seventh National People’s Congress on October 30, 1990 and promulgated by Order No.35 of the President of the People’s Republic of China on October 30, 1990) Article 1 These Regulations are formulated for the purpose of defining the consular privileges and immunities of the foreign consular posts in China and their members and facilitating the efficient performance of the functions of such foreign consular posts in their consular districts as representatives of the sending States. Article 2 Consular officers shall be of the nationality of the sending State. They may, only with the consent of the competent Chinese authorities, be appointed from among persons of Chinese or third-state nationality or nationals of the sending State who are permanent residents of China. This consent may be withdrawn at any time by the said Chinese authorities. Article 3 The consular post and its head shall have the right to use the national flag and emblem of the sending State on the premises of the consular post, on the residence of the head of the consular post and on his means of transport when used on official business. Article 4 The premises of the consular post shall be inviolable. Chinese government functionaries may enter them only with the consent of the head of the consular post or the head of the diplomatic mission of the sending State or another person authorized by either of them. The consent of the head of the consular post may be assumed in case of fire or other disaster requiring prompt protective action. The Chinese authorities concerned shall take appropriate measures to protect the premises of the consular post against any intrusion or damage. Article 5 The premises of the consular post and the residence of its head shall be exempt from dues and taxes other than such as represent payment for specific services rendered. The fees and charges levied by the consular post in the course of its official duties shall be exempt from all dues and taxes. Article 6 The archives and documents of the consular post shall be inviolable. Article 7 The members of the consular post shall enjoy freedom of movement and travel within Chinese territory except for areas the entry into which is prohibited or restricted by the regulations of the Chinese Government. Article 8 The consular post may for official purposes communicate freely with the Government and the diplomatic mission and other consular posts of the sending State. In so doing, it may employ all appropriate means, including diplomatic couriers or consular couriers, diplomatic bag or consular bag, and messages in code or cipher. Article 9 The consular post may install and use a wireless transmitter-receiver only with the consent of the Chinese Government. The import of the above-mentioned equipment shall be subject to the relevant procedure prescribed by the Chinese Government. Article 10 The consular bag shall not be opened or detained. The consular bag may contain only official correspondence and documents or articles intended for official use and must be sealed and bear visible external marks of its character. If the Chinese authorities concerned have serious reason to believe that the bag contains something other than the above-mentioned objects, they may request that the bag be opened in the presence of personnel from the Chinese authorities concerned by the consular officer or another person authorized by him. If this request is refused by the consular officer, the bag shall be returned to its place of origin. Article 11 The consular courier must be of the nationality of the sending State and shall not be a permanent resident of China. The consular courier must be provided with a courier certificate issued by the competent authorities of the sending State. He shall enjoy personal inviolability and shall not be liable to arrest or detention. Consular couriers ad hoc” must be provided with certificates of courier ad hoc” issued by the competent authorities of the sending State, and shall enjoy the same immunities as the consular courier while charged with the carrying of the consular bag. A consular bag may be entrusted to the captain of a commercial aircraft or a commercial ship. He must be provided with an official document issued by the consigner State indicating the number of packages constituting the bag, but he shall not be regarded as a consular courier. By arrangement with the competent authorities of the appropriate Chinese local people’s government, the consular post may send its members to receive the consular bag from the captain of the aircraft or of the ship or deliver it to him. Article 12 The person of a consular officer shall be inviolable. The Chinese authorities concerned shall take appropriate measures to prevent any attack on his personal freedom and dignity. Consular officers shall not be liable to arrest or detention, except that the arrest or detention is executed in the case of a grave crime and by following legal procedures. Consular officers shall not be committed to prison save in execution of a judicial decision of final effect. Article 13 The residence of a consular officer shall be inviolable. His papers and correspondence shall be inviolable. His property, except as provided in Article 14 of these Regulations, shall be inviolable. Article 14 Consular officers and members of the administrative and technical staff of the consular post shall enjoy immunity from judicial and administrative jurisdiction in respect of acts performed in the exercise of their functions. Immunity from jurisdiction of consular officers in respect of acts other than those performed in the exercise of their functions shall be accorded in accordance with the bilateral treaties and agreements between China and other countries concerned or on the principle of reciprocity. Immunity from judicial jurisdiction enjoyed by consular officers and members of the administrative or technical staff of the consular post shall not apply to any of the following civil actions: (1) an action arising out of a contract not concluded expressly as an agent of the sending State; (2) an action relating to private immovable property situated in the territory of China, unless they hold it as an agent of the sending State for the purposes of the consular post; (3) an action relating to succession in which he is involved as a private person; or (4) an action for damages arising from an accident in China caused by a vehicle, vessel or aircraft. Article 15 Members of a consular post may be called upon to attend as witnesses in the course of judicial or administrative proceedings, but shall be under no obligation to give testimony concerning matters connected with the exercise of their functions. They are enpost_titled to decline to give testimony as expert witnesses with regard to the law of the sending State. If consular officers should decline to give testimony, no coercive measure or penalty may be applied to them. Members of the administrative or technical staff of the consular post and members of the service staff shall not decline to give testimony except in cases concerning matters connected with the exercise of their functions. Article 16 The immunity from jurisdiction enjoyed by the persons concerned specified in these Regulations may be waived through explicit expression by the Government of the sending State. The initiation of proceedings by a person enjoying immunity from jurisdiction in accordance with the provisions of these Regulations shall preclude him from invoking immunity from jurisdiction in respect of any counter-claim directly connected with the claim. Waiver of immunity from civil or administrative jurisdiction shall not imply waiver of immunity in respect of the execution of the judgment, for which a separate and explicit waiver by the Government of the sending State shall be necessary. Article 17 Consular officers and members of the administrative or technical staff of the consular post shall be exempt from all dues and taxes, except: (1) dues and taxes of a kind which are normally incorporated in the price of goods or services; (2) dues or taxes on private immovable property situated in the territory of China, excepting that used as the consular premises; (3) estate, succession or inheritance duties, except that movable property left in China by a deceased consular officer shall be exempt therefrom; (4) dues and taxes on private income having its source in China; or (5) charges levied for specific services rendered. Members of the service staff of the consular post shall be exempt from dues and taxes on the wages which they receive for their service in the consular post. Article 18 Members of the consular post shall be exempt from all personal and public services as well as military obligations. Consular officers and members of the administrative or technical staff of the consular post shall be exempt from all obligations under the laws and regulations of China in regard to the registration of aliens and residence permits. Article 19 Imported articles for the official use of the consular post, those for the personal use of consular officers, and those for the personal use of members of the administrative or technical staff of the consular post, including articles intended for their establishment, imported within six months of the time of installation shall, in accordance with the relevant regulations of the Chinese Government, be exempt from customs duties and all other related dues and taxes with the exception of charges for storage, cartage and similar services. Imported articles for the personal use of the consular officers and the members of the administrative or technical staff of the consular post referred to in the preceding paragraph shall not exceed the quantities necessary for their direct utilization. The personal baggage of a consular officer shall be exempt from inspection, unless the competent Chinese authorities have serious reason to believe that it contains articles not within the exemptions provided for in the first paragraph of this Article, or articles the import or export of which is prohibited or controlled by Chinese laws and government regulations. Such inspection shall be conducted in the presence of the consular officer or of his authorized representative. Article 20 The consular post and its members may carry firearms and bullets into or out of China for their personal use, subject to the approval of the Chinese government and to its relevant regulations. Article 21 The spouse and underage children of consular officers, of members of the administrative or technical staff of the consular post, or of members of the service staff of the consular post forming part of their respective households, except those who are nationals of China or aliens permanently residing in China, shall respectively enjoy the privileges and immunities accorded to the consular officers, the members of the administrative or technical staff of the consular post or the members of the service staff of the consular post in accordance with the provisions of Articles 7, 17, 18, or 19 of these Regulations. Article 22 Consular officers who are nationals of China or aliens permanently residing in China shall enjoy the privileges and immunities provided for in these Regulations only in respect of acts performed in the course of official duties. Members of the administrative or technical staff of the consular post and members of the service staff of the consular post who are nationals of China or aliens permanently residing in China shall not enjoy the privileges and immunities provided for in these Regulations except that they shall have no obligation to give evidence concerning matters connected with the exercise of their functions. Private attendants shall not enjoy the privileges and immunities provided for in these Regulations. Article 23 The following persons shall enjoy necessary immunity and inviolability during their transit through or sojourn in China: (1) a consular officer stationed in a third State who passes through China together with his spouse and underage children forming part of his household; and (2) a visiting foreign consular officer who has obtained a diplomatic visa from China or who holds a diplomatic passport of a State with which China has an agreement on the mutual exemption of visas. Article 24 Persons enjoying consular privileges and immunities under these Regulations shall: (1) respect Chinese laws and regulations; (2) not interfere in the internal affairs of China; and (3) not use the premises of the consular post and the residence of members of the consular post for purposes incompatible with the exercise of consular functions. Article 25 Consular officers shall not practise for personal profit any professional or commercial activity outside his official functions on Chinese territory. Article 26 In case the consular privileges and immunities accorded by a foreign State to the Chinese consular post and its members in that State and to transitting or visiting Chinese consular officers stationed in a third State are different from those China would give under these Regulations to the consular post of that State and its members in China and its transitting or visiting consular officers stationed in a third State, the Chinese Government may accord them such consular privileges and immunities as appropriate on a reciprocal basis. Article 27 Where the international treaties to which China is a contracting or acceding party provide otherwise in respect of consular privileges and immunities, such provisions shall prevail, with the exception of those on which China has declared reservations. Where the bilateral treaties or agreements between China and other countries provide otherwise in respect of consular privileges and immunities, such provisions shall prevail. Article 28 For the purposes of these Regulations, the following expressions shall have the meanings hereunder assigned to them: (1) “consular post” means any consulate-general, consulate, vice-consulate or consular agency; (2) “consular district” means the area assigned to a consular post for the exercise of consular functions; (3) “head of consular post” means the consul-general, consul, vice-consul or consular agent charged by the sending State with the duty of leading the consular post; (4) “consular officer” means the consul-general, vice-consul-general, consul, vice-consul and consular attache or consular agent; (5) “members of the administrative or technical staff of the consular post ” mean the members of the staff of the consular post engaged in the administrative or technical work of the consular post; (6) “members of the service staff” mean the members of the staff of the consular post engaged in the domestic service of the consular post; (7) “members of the consular post” mean consular officers, members of the administrative or technical staff of the consular post and members of the service staff of the consular post; (8) “private attendant” means an attendant in the private employment of a member of the consular post; (9) “consular premises” mean the buildings or parts of buildings and the land ancillary thereto used exclusively for the purposes of the consular post; Article 29 These Regulations shall enter into force as of the date of promulgation.

REGULATIONS FOR THE MANAGEMENT OF FOUNDATIONS

MEASURES ON ADMINISTRATION OF THE SUBSTITUTION OF MACHINERY AND ELECTRICAL APPLIANCES MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VENTURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES FOR SIMILAR IMPORTED PRODUCTS

19871007The State Council20011006

The State Economic Commission

Measures on Administration of the Substitution of Machinery and Electrical Appliances Manufactured by Chinese-foreign Equity Joint
Ventures and Chinese-foreign Contractual Joint Ventures for Similar Imported Products

the State Economic Commission

October 7, 1987

Article 1

These Measures are formulated in accordance with the pertinent provisions in Measures for the Substitution of Products Manufactured
by Chinese-foreign Equity Joint Ventures and Chinese-foreign Contractual Joint Ventures for Similar Imported Products, approved by
the State Council and promulgated by the State Planning Commission.

Article 2

Enterprises which satisfy the following conditions may make an application for the inclusion of their products in the Catalogue of
the Substitution of Home-made Machinery and Electrical Appliances for Similar Imported Products (hereinafter referred to as the “Catalogue”):

(1)

Chinese-foreign equity joint ventures and Chinese-foreign contractual joint ventures (hereinafter referred to as “the enterprises”),
which are capable of providing advanced technology that satisfies domestic needs, and are engaged in the development of new products,
thereby realizing the upgrading of products and the replacement of old products with new ones, but which are at present confronted
with the temporary difficulties of an imbalance in foreign exchange and are badly in need of support;

(2)

the machinery and electrical appliances manufactured by the enterprises are the same in performance and quality as similar products
produced in foreign countries, they can satisfy the needs of domestic users, and their prices (the prices after taxation) are no
higher than the prices of similar imported products produced abroad;

(3)

the machinery and electrical appliances manufactured by the enterprises are in the categories that the domestic users want to import;

(4)

the enterprises execute their obligations to export products in accordance with the approved contracts.

Article 3

Chinese-foreign equity joint ventures and Chinese-foreign contractual joint ventures, which apply for the substitution of their products
for similar imported foreign goods, shall prove by an ample demonstration and appraise the feasibility of substituting their products
for similar imported ones at the time when they submit their feasibility studies report for examination and approval.

Article 4

After the enterprises have gone into production, if their products are in conformity with the stipulations of Article 2 mentioned
above and they request to have their products included in the State catalogue of the substitution of home-made products for similar
imported ones, the enterprises shall make an application to the department concerned, and submit duplicates of the application separately
to the State Economic Commission, the Ministry of Foreign Economic Relations and Trade, and the local economic commission. The application
shall be accompanied with an application form for the substitution of home-made machinery and electrical appliances for similar imported
products, a certification document testifying to the quality of the products, and report on market demand projection for the said
products; and the application shall be examined and verified by the department concerned which shall, after affixing its comments
and seal to the application, transmit the application to the State Economic Commission and the State Administration of Foreign Exchange
Control for examination and approval. Generally, the period of time for the examination and approval shall not exceed two months,
and the approved items shall be promulgated by the State Economic Commission for execution.

Article 5

The users who need the products listed in the Catalogue may place an order directly with the enterprises, or the China Bidding Center
for Machinery and Electrical Equipment (or other bidding agencies authorized by the State Economic Commission) shall, in accordance
with the pertinent provisions promulgated by the State, organize bidding, thus providing advice to users for purchasing home-made
products to substitute for similar imported ones.

Article 6

Enterprises which sell machinery and electrical appliances listed in the State catalogue of the substitution of home-made products
for similar imported goods may, with the approval of the administration of foreign exchange control, collect part of the payment
for goods in foreign exchange, and the amount shall decrease progressively in accordance with the rate of progress for the replacement
of imported products with home-made ones, specified in the contract or feasibility studies report.

Article 7

The bulk parts, spare parts, components, fittings and raw materials, which the enterprises need for the production of machinery and
electrical appliances listed in the State catalogue of the substitution of home-made products for similar imported goods, may be
considered as bonded goods and be placed under the surveillance of the Customs. Where the users enjoy the preferential treatment
of reduction of or exemption from duties when they import the aforesaid machinery and electrical appliances directly from abroad,
the enterprises shall enjoy the same preferential treatment of reduction of or exemption from duties when they import the said raw
materials, spare parts and components to produce similar machinery and electrical appliances and sell them to the said users.

Article 8

The right to interpret these Measures shall reside in the State Economic Commission.

Article 9

These Measures shall enter into force as of the date of promulgation.

Attachment:The Catalogues of the First Lot of Machinery and Electrical Appliances Used in Substituting for Similar Imported Products and Promulgated
Simultaneously by the State Economic Commission

The first is SPECTRUM – the control system of the centralized/decentralized type (including field input/output installations, each
station 1024 BIT data collecting set, sequence control, programming control set, CRT operating station, industrial controller), the
enterprise that produces these products is the Shanghai Fawkes-Polo Co. Ltd.;

The second is MICONIC – B elevator (rated speed 1.6 M/S, carrying capacity 1,000 KG), the enterprise that produces this product is
the Shanghai Elevators Factory of the China Schindler Elevators Company.

The State Economic Commission
1987-10-07

1...252627...212 Page 26 of 212

China Laws

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS CONCERNING THE SUPPRESSION OF THE FALSIFICATION, COUNTERFEITING, AND ILLEGAL...

CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING HALTING THE DEVELOPMENT OF PYRAMID RETAILING

MACAO SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE’ S REPUBLIC OF CHINA BASIC LAW

REGULATIONS ON ADMINISTRATIVE PROTECTION OF PHARMACEUTICALS

CIRCULAR ON SOME EXTERNAL TAXATION POLICY QUESTIONS CONCERNING PILOT ENTERPRISES EXPERIMENTING WITH THE SHAREHOLDING SYSTEM

RULES ON THE ORIGIN OF EXPORT COMMODITIES

MARITIME CODE

CUSTOMS REGULATIONS OF PRC CONCERNING THE CONTROL OVER PASSING TRAVELLERS’ LUGGAGE AND ARTICLES

REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING CONSULAR PRIVILEGES AND IMMUNITIES

REGULATIONS FOR THE MANAGEMENT OF FOUNDATIONS

MEASURES ON ADMINISTRATION OF THE SUBSTITUTION OF MACHINERY AND ELECTRICAL APPLIANCES MANUFACTURED BY CHINESE-FOREIGN EQUITY JOINT VENTURES AND CHINESE-FOREIGN CONTRACTUAL JOINT VENTURES FOR SIMILAR IMPORTED PRODUCTS

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7