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REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA FOR THE ADMINISTRATION OF FOREIGN BANKS AND CHINESE-FOREIGN EQUITY JOINT BANKS IN THE SPECIAL ECONOMIC ZONES

19940401

The State Council

Regulations of the People’s Republic of China for the Administration of Foreign Banks and Chinese-foreign Equity Joint Banks in the
Special Economic Zones

the State Council

April 2, 1985

Article 1

These Regulations are formulated with a view to expanding international economic and financial co-operation, facilitating the inflow
of foreign capital and the introduction of technology and promoting growth of the special economic zones.

Article 2

The term “foreign-funded banks” referred to in these Regulations means the branch banks established in the special economic zones
by banks with foreign capital whose head offices are based in foreign countries or in Hong Kong and Macao regions and are registered
in accordance with the laws of these localities as well as banks with foreign capital whose head offices are based in the special
economic zones and are registered in accordance with the laws of the People’s Republic of China.

The term “Chinese-foreign equity joint banks” referred to in these Regulations means banks jointly funded and operated in the special
economic zones by banks and financial institutions with foreign capital and banks and financial institutions with Chinese capital.

Article 3

foreign-funded banks and Chinese-foreign equity joint banks shall abide by the laws and regulations of the People’s Republic of China
and their legitimate business activities and lawful rights and interests shall be protected by the laws of the People’s Republic
of China.

Article 4

To establish in a special economic zone a foreign bank or a Chinese-foreign equity joint bank, an application shall be filed with
the People’s Bank of China, which shall examine and approve the application based on the needs of growth of the special economic
zones and on the basis of the principle of equality and mutual benefit.

The branch banks of the People’s Bank of China in the special economic zones shall exercise administration and supervision over the
foreign-funded banks and Chinese-foreign equity joint banks.

The State Administration of Foreign Exchange Control shall be responsible for the issuance of the licence for business operations
in foreign exchange.

Article 5

Application for the establishment of a foreign bank or a Chinese-foreign equity joint bank shall be handled in accordance with the
following provisions respectively:

1.

If a bank with foreign capital intends to establish a branch bank in a special economic zone, the head office of the bank shall file
the application and submit the following documents and data:

(1)

a written application duty signed by the chairman of the board of directors or the general manager with the authorization of the board
of directors and certified by a notary office, containing such information as the name of the intended branch bank, the amount of
operating funds allocated by the head office, the curriculum vitae of the principal persons in charge and letters of authorization,
and the types of business operations applied for;

(2)

articles of association of the head office of the bank, the composition of the board of directors, the balance sheets, statements
of profit and loss, and reports of business position for the three years prior to the application for the establishment of the branch
bank;

(3)

a copy of the business licence verified and issued by the competent authorities in the country or region where the bank is located;
and

(4)

letters of undertaking issued by the head office of the bank assuming the tax and debt repayment obligations for the intended branch
bank.

2.

For the establishment of the head office of a foreign bank in a special economic zone, the foreign investors concerned shall file
the application and submit the following documents and data:

(1)

a written application for the establishment of the foreign bank, containing such information as the name of the head office of the
foreign bank, the registered capital and the paid-in capital, a list of the principal persons in charge and the types of business
operations applied for;

(2)

articles of association;

(3)

a list of the candidates for the board of directors, including its chairman and vice-chairmen, and the directors nominated by the
investors; and

(4)

data about the status of the assets and liabilities of the investors attached with documents certified by a notary office.

3.

For the establishment of a Chinese-foreign equity joint bank in a special economic zone, all investing parties thereto shall jointly
file the application and submit the following documents and data:

(1)

a written application for the establishment of the equity joint bank, containing such information as the name of the equity joint
bank, the name of each of the investing parties thereto, the registered capital and the paid-in capital, the percentage of capital
contribution by each of the investing parties, a list of the candidates for the principal persons in charge and the types of business
operations applied for;

(2)

a feasibility study report jointly prepared by all the investing parties thereto;

(3)

the draft agreement, contract and articles of association of the equity joint bank initialled by the authorized representatives of
the respective investing parties thereto; and

(4)

a list of the candidates for the board of directors, including its chairman and vice-chairmen, jointly nominated by all the investing
parties thereto.

4.

Where foreign-funded banks and Chinese-foreign equity joint banks established in the special economic zones intend to establish separate
branch offices in the special economic zones, the application shall be filed with branch banks of the People’s Bank of China in the
special economic zones for approval.

If any of the documents and data referred to in paragraph 1 of this Article is written in a foreign language, they shall be attached
with a Chinese version.

Article 6

The People’s Bank of China shall, based on the application of a foreign bank or a Chinese-foreign equity joint bank, grant approval
for the bank concerned to engage in part or all of the following business operations:

1.

loans in the domestic currency and in foreign currencies and discount of negotiable instruments;

2.

inward remittances from foreign countries or from Hong Kong and Macao regions and collection of foreign exchange;

3.

settlement for export transactions, and mortgage in foreign currency;

4.

exchange of foreign currencies and of negotiable instruments in foreign currencies;

5.

investment in the domestic currency or in foreign currencies;

6.

gurantees of the domestic currency and foreign currencies;

7.

deals in stocks and securities;

8.

trust and safe deposit box services, credit and financial standing investigations and consultancy services;

9.

outward remittances by enterprises with overseas Chinese capital, foreign-capital enterprises, Chinese-foreign equity joint ventures
and Chinese-foreign contractual joint ventures and settlement for their import transactions, and mortgage in foreign currency;

10.

deposits in the domestic currency and in foreign currencies and overdrafts by enterprises with overseas Chinese capital, foreign-capital
enterprises, Chinese-foreign equity joint ventures and Chinese-foreign contractual joint ventures and by foreigners, overseas Chinese
and compatriots from Hong Kong and Macao;

11.

handling deposits or loans in foreign exchange in foreign countries or in Hong Kong and Macao regions; and

12.

other business operations.

Article 7

The registered capital of the head office of a foreign bank or a Chinese-foreign equity joint bank established in a special economic
zone shall be no less than Renminbi 80 million yuan in equivalent foreign exchange and the paid-in capital thereof shall be no less
than 50 percent of the registered capital; a branch bank of a foreign bank established in a special economic zone must possess an
operating fund allocated by its head office amounting to no less than Renminbi 40 million yuan in equivalent foreign exchange.

The paid-in capital and the operating funds of a foreign bank or a Chinese-foreign equity joint bank shall be raised in full within
30 days following the day on which its establishment is approved and shall then be audited and verified by a registered accountant
of the People’s Republic of China.

Article 8

A foreign bank or a Chinese-foreign equity joint bank shall, within 30 days following the day on which its establishment is approved,
go through the procedures of registration with the administrative department for industry and commerce and obtain a business licence
and shall, within 30 days following the day of the commencement of its business operations, go through the procedures of tax registration
with the local tax authorities.

Where a foreign bank or a Chinese-foreign equity joint bank fails to commence its business operations within 12 months following the
day on which its establishment is approved, the original document of approval shall automatically become null and void.

Article 9

The total amount of loans granted by the head office of a foreign bank or by a Chinese-foreign equity joint bank in a special economic
zone to any enterprise in the special economic zone shall not exceed 30 percent of the total sum of its paid-in capital plus its
reserve funds and the total amount of investment in the special economic zones shall not exceed 30 percent of the total sum of its
paid-in capital plus its reserve funds.

Article 10

The business operations in exchange and settlement between the domestic currency and foreign currencies of a foreign bank or of a
Chinese-foreign equity joint bank shall be handled in accordance with the rates of exchange quoted by the State Administration of
Foreign Exchange Control and with other relevant provisions.

The rates of interest with respect to the various kinds of deposits, loans, overdrafts and discount of negotiable instruments in the
domestic currency or in foreign currencies handled in the special economic zones by a foreign bank or by a Chinese-foreign equity
joint bank may be fixed with reference to the rates of interest prescribed by the branch banks of the People’s Bank of China in the
special economic zones.

Article 11

A foreign bank or a Chinese-foreign equity joint bank that handles various deposits in the domestic currency or in foreign currencies
in the special economic zones shall place deposit reserve funds with the branch banks of the People’s Bank of China in the special
economic zones.

Article 12

foreign-funded banks and Chinese-foreign equity joint banks shall submit to the blanch banks of the People’s Bank of China in the
special economic zones the following reports and statements of business operations:

1.

prior to the 10th of each month, the balance sheet of the previous month shall be submitted;

2.

prior to the 15th of the first month of each quarter, a breakdown of deposits and loans, a breakdown of outward and inward remittances
and settlement for import and export transactions, and a breakdown of investment projects of the previous quarter shall be submitted;
and

3.

prior to the end of March of each year, the balance sheet, the statement of profit and loss and the statement of account balance of
the previous year shall be submitted, attached with an audit report presented by a registered accountant of the People’s Republic
of China.

Article 13

The branch banks of the People’s Bank of China in the special economic zones shall have the right to examine the position of business
operations and financial status of the foreign-funded banks and Chinese-foreign equity joint banks, require them to submit or provide
the related information and the relevant data, and send persons to examine their account books and files.

Article 14

A foreign bank may remit abroad the profit that remains after tax has been paid in accordance with the law.

The head office of a foreign bank or a Chinese-foreign equity joint bank established in a special economic zone shall, in accordance
with the relevant provisions, draw the reserve fund, the staff bonus fund, the welfare fund and the enterprise development fund from
its after-tax profit. The portion of the profit distributed to investors from abroad may be remitted abroad.

Foreign staff and staff from Hong Kong and Macao regions of a foreign bank or of a Chinese-foreign equity joint bank may remit abroad
their salaries and other legitimate income that remain after tax has been paid in accordance with the law.

Article 15

A foreign bank or a Chinese-foreign equity joint bank that is to terminate its business operations shall, 30 days prior to the termination
thereof, submit a written report to the People’s Bank of China for approval.

A foreign bank or a Chinese-foreign equity joint bank that is to suspend its business operations shall, in accordance with the provisions
of the People’s Republic of China concerning the dissolution and liquidation of foreign-capital enterprises and Chinese-foreign equity
joint ventures and under the supervision of the branch bank of the People’s Bank of China in the special economic zone and other
relevant departments, conduct its liquidation. After the taxes have been paid in full and liabilities have been settled, the funds
of the foreign bank or the fund owned by or distributed to investors from abroad in a Chinese-foreign equity joint bank may be remitted
abroad.

Upon the completion of liquidation as referred to in the preceding paragraph, the foreign bank or Chinese-foreign equity joint bank
shall approach the registration and licence-issuing authorities for the cancellation of its registration and business licence.

Article 16

In the case where a foreign-funded bank or a Chinese-foreign equity joint bank violates these Regulations or any other financial regulations,
the branch banks of the People’s Bank of China in the special economic zones shall have the right to issue a warning or impose a
fine on it in the light of the seriousness of the case. In case of disagreement with the penalty, an appeal may be brought before
the People’s Bank of China for its ruling.

If a foreign-funded bank or a Chinese-foreign equity joint bank violates the laws and regulations to an especially serious extent,
the People’s Bank of China may order it to suspend its business operations or shall, in an extreme case, order it to be disbanded.

Article 17

These Regulations shall also apply to banks and financial institutions with overseas Chinese capital or with capital from Hong Kong
and Macao regions.

Article 18

The People’s Bank of China shall be responsible for the interpretation of these Regulations.

Article 19

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



 
The State Council
1985-04-02

 







RULES FOR IMPLEMENTATION OF THE PATENT LAW

Category  INTELLECTUAL PROPERTY RIGHT Organ of Promulgation  The State Council Status of Effect  With An Amendment Existing
Date of Promulgation  1985-01-19 Effective Date  1985-04-01  


Rules for Implementation of the Patent Law of the People’s Republic of China

Chapter I  General Provisions
Chapter II  Application for Patent
Chapter III  Examination and Approval of Patent Applications
Chapter IV  Invalidation of Patent Right
Chapter V  Compulsory License for Exploitation of a Patent
Chapter VI  Rewards to Inventor or Designer of Job-Related
Chapter VII  Patent Administrative Authorities
Chapter VIII  Patent Register and Patent Gazette
Chapter IX  Fees
Chapter X  Supplementary Provisions

(Approved by the State Council and promulgated by the Patent Office of

the People’s Republic of China on January 19, 1985) (Editor’s Note: For the
revised text, see Rules for Implementation of the Patent Law of the People’s
Republic of China approved and amended by the State Council on December 12,
1992 and promulgated by Decree No.3 of the Patent Office of the People’s
Republic of China on December 21, 1992)
Chapter I  General Provisions

    Article 1  These Rules are formulated in accordance with the provisions
of Article 68 of the Patent Law of the People’s Republic of China (hereinafter
referred to as “the Patent Law”).

    Article 2  “Invention” in the Patent Law means any new technical solution
relating to a product, a process or an improvement thereof.

    “Utility model” in the Patent Law means any new technical solution
relating to the shape, the structure, or their combination, of a product,
which is fit for practical use.

    “Design” in the Patent Law means any new design of the shape, pattern,
colour, or their combination, of a product, which creates an aesthetic feeling
and is fit for industrial application.

    Article 3  All the procedures provided for by the Patent Law and these
Rules shall be conducted in a written form.

    Article 4  Any document submitted under the Patent Law and these Rules
shall be in Chinese. The standard scientific and technical terms shall be used
whenever there are such standard terms as prescribed by the State. Where no
generally accepted translation in Chinese can be found for the name of a
foreigner or a foreign locality or a foreign scientific or technical term, the
one in the original language shall be also indicated.

    Where any certificate or certifying document which is submitted in
accordance with the Patent Law or these Rules is in a foreign language, the
Patent Office may require that a Chinese translation be also submitted within
a specified time limit.

    Article 5  For any document mailed by the Patent Office to the addressee
residing in any of the municipalities directly under the people’s governments
of provinces, autonomous regions or above, the 8th day from the date of
mailing, shall be presumed to be the receiving date, and for that mailed to
the addressee residing in any of the other places, the 16th day from the date
of mailing shall be so presumed.

    For any document sent to the Patent Office by the applicant by mail, the
date of mailing indicated by the postmark shall be the date of filing. If the
date of mailing indicated by the postmark on the envelope is not readable, the
date on which the Patent Office receives the document shall be presumed to be
the date of filing, except where the date of mailing is proved by the
applicant.

    Article 6  The first day of any time limit prescribed in the Patent Law or
these Rules shall not be counted. Where a time limit is counted by year or by
month, it shall expire on the corresponding day of the last month; if there is
no corresponding day in that month, the time limit shall expire on the last
day of that month.    If a time limit expires on an official holiday, the time limit shall
expire on the first working day after that official holiday.

    Article 7  Where a time limit prescribed in the Patent Law or these Rules
or specified by the Patent Office is not met because of force majeure or any
other justifiable reason, the applicant, the patentee or any other interested
party may, within one month from the day on which the impediment is removed,
state the reasons and request for an extension of the time limit, with the
exception of the time limits prescribed in Article 24, Article 29, the first
sentence of Article 41, Article 45 and Article 61 of the Patent Law.

    Before the expiration of any time limit specified by the Patent Office, an
applicant who, on the basis of a justified reason, wishes to have the time
limit extended may make a request, accompanied with relevant proof, to the
Patent Office.

    Article 8  Where the invention-creation for which a patent is applied by a
unit of the national defense system relates to the security of the State and
is required to be kept secret, the application for patent shall be filed with
the patent organization set up by the competent department of science and
technology of national defense. The Patent Office shall make a decision on the
basis of the observations on the examination of the application presented by
the said patent organization.

    Article 9  Subject to the preceding Article, the Patent Office, after
receiving an application for patent which is required to be examined for the
purpose of security, shall send it to the competent department concerned of
the State Council for examination. The said department shall, within 4 months
from the receipt of the application, send a report on the results of the
examination to the Patent Office. Where the invention-creation for which a
patent is applied is required to be kept secret, the Patent Office shall
handle it as a secret application for patent and notify the applicant
accordingly.

    Article 10  A job-related invention-creation made by any person in
execution of the tasks of the unit to which he belongs as mentioned in Article
6 of the Patent Law, refers to invention-creation made

    (1) in the course of performing his own duty;

    (2) in the execution of any task, other than his own duty, which was
entrusted to him by the unit to which he belongs;

    (3) within 1 year from his resignation, retirement or change of work,
where the invention-creation relates to his own duty or the other task
entrusted to him by the unit to which he previously belonged.

    Material resources of the unit, as mentioned in Article 6 of the Patent
Law, refer to the unit’s money, equipment, spare parts, raw materials, or
technical data which are not to be disclosed to the public.

    Article 11  An inventor or designer as mentioned in the Patent Law refers
to any person who has made creative contributions to the substantive features
of the invention-creation. Any person who, in the course of accomplishing the
invention-creation, is responsible only for organizational work, or who offers
facilities for making use of material resources, or who takes part in other
auxiliary services, shall not be regarded as inventors or designers.

    Article 12  Two or more applicants who file, on the same day, applications
for patent on the same invention-creation, as provided for in Article 9 of the
Patent Law, shall, after receiving a notification from the Patent Office, hold
consultation among themselves so as to decide who shall be the applicant.

    Article 13  The patentee who has concluded any licensing contract for
exploitation of the patent with another party shall, within 3 months from the
entry into force of the contract, submit the contract to the Patent Office for
the record.

    Article 14  The patent agencies as mentioned in Paragraph 1, Article 19,
and Article 20, of the Patent Law refer to the China Council for the Promotion
of international Trade, the Shanghai Patent Agency, the China Patent Ltd. and
other patent agencies designated by the State Council.

    Article 15  Any applicant who entrusts a patent agency to file an
application for a patent or deal with other patent matters with the Patent
Office, shall submit at the same time a power of attorney which shall indicate
the scope of the power entrusted.
Chapter II  Application for Patent

    Article 16  Anyone who applies for a patent shall submit application
documents in duplicate.

    Article 17  Other related matters to be stated in a written request as
mentioned in Paragraph 2, Article 26, of the Patent Law refer to:

    (1) the nationality of the applicant;

    (2) where the applicant is an enterprise or other organization, the name
of the country in which the applicant has its head office;

    (3) where the applicant has entrusted a patent agency, the name and
address of the patent agency and the name of the patent agent;

    (4) where the applicant is a unit, the name of its representative;

    (5) where the priority is claimed, the relevant matters which shall be
indicated;

    (6) the signature or the seal of the applicant;

    (7) a list of the documents constituting the application;

    (8) a list of the documents appending the application.

    Where there are two or more applicants and where they have not entrusted a
patent agency, they shall designate a representative; if no representative is
designated, the applicant first signed shall be considered as the
representative.

    Where an application for a patent on a design is filed, a brief
description of the design shall, when necessary, be included.

    Article 18  Except where the nature of the invention or utility model
calls for a different mode and order of presentation, the description of an
application for a patent for invention or utility model shall, in the
following order:

    (1) state the post_title of the invention or utility model as appearing in
the request;

    (2) specify the technical field to which the invention or utility model
relates;

    (3) indicate the existing technology which, as far as known to the
applicant, can be regarded as useful for the understanding, searching and
examination of the invention or utility model, and cite the documents
reflecting such technology;

    (4) specify the objective which the invention or utility model is
designed to achieve;

    (5) disclose the invention or utility model in a manner sufficiently
clear and complete so that an ordinary technician in the relevant field of
technology can carry it out;

    (6) state the merits or effective results of the invention or utility
model as compared with the prior art;

    (7) briefly describe the figures in the drawings, if any;

    (8) describe in detail the best mode contemplated by the applicant for
carrying out the invention or utility model, with reference to the drawing, if
any.

    The description of the invention or utility model may contain chemical or
mathematical formulae but no commercial advertising.

    Article 19  The same sheet of drawings may contain several figures of the
invention or utility model. The figures shall be numbered consecutively in
Arabic numerals and arranged in numerical order.

    The scale and the distinctness of the drawings shall be such that a
reproduction with a linear reduction in size to two-thirds will still enable
all details to be clearly distinguished.

    Reference signs used in the drawings of an application shall be consistent
throughout. Reference signs not appearing in the description of the invention
or utility model shall not appear in the drawings.

    The drawings shall not contain any other explanatory notes, except words
which are indispensable.

    Article 20  The claims shall define clearly and concisely the matter for
which protection is sought in terms of the technical features of the invention
or utility model.

    If there are several claims, they shall be numbered consecutively in
Arabic numerals.

    The technical terminology used in the claims shall be consistent with that
used in the description. The claims may contain chemical or mathematical
formulae but no drawings. They shall not, except where absolutely necessary,
contain such references to the description or drawing “as described in part…
of the description”, or “as illustrated in figure… of the drawings”.

    Article 21  Claims may be independent or dependent.

    An independent claim shall outline the essential technical contents of an
invention or utility model and describe the indispensable technical features
constituting the invention or utility model.

    A dependent claim relying on the reference to one or more other claims
shall refer only to the preceding claim or claims.

    Article 22  Except where the nature of the invention or utility model
calls for other forms of expression, an independent claim shall be presented in
the following form:

    (1) a preamble indicating the technical field to which the invention or
utility model pertains and the technical features of the prior art which
relate closely to the subject matter of the invention or utility model;

    (2) a characterizing portion, stating, in such words as “the invention (or
utility model) is characterized in that…” or in similarly concise
expressions, the technical features of the invention or utility model, which,
in combination with the features stated in the preamble, constitute those to
be protected.

    Each invention or utility model shall have only one independent claim,
which shall precede all the dependent claims relating to the same invention or
utility model.

    Article 23  Except where the nature of the invention or utility model
calls for other forms expression, a dependent claim shall be presented in the
following form:

    (1) a reference portion, indicating the serial number(s) of the claim(s)
referred to. Where possible, the reference to the serial number shall be
placed at the beginning of the claim(s);

    (2) a characterizing portion, which by stating the additional technical
features of the invention or utility model, further defines the technical
features cited in the reference portion.

    Dependent claims referring to more than two other claims shall not serve
as reference to each other.

    Article 24  The abstract shall indicate the technical field to which the
invention or utility model pertains, the technical problems to be solved, the
essential technical features and the use or uses of the invention or utility model. The abstract may, where applicable, contain the
chemical formula or the
figure which best characterizes the invention or utility model. The whole text
of the abstract shall contain preferably not more than 200 words.

    Article 25  Where an application for a patent for invention concerns a
micro-biological process or a product thereof and involves the use of a
micro-organism which is not available to the public, the applicant shall, in
addition to the other requirements provided for in the Patent Law and these
Rules,

    (1) deposit a sample of the micro-organism with a depositary institution
designated by the Patent Office before the date of filing, or, at the latest,
on the date of filing;

    (2) give in the application document relevant information of the
characteristics of the micro-organism;

    (3) indicate in the request the scientific name (with its Latin name) and
the name of the depositary institution, the date on which the sample of the
micro-organism was deposited and the file number of the deposit, and submit a
receipt of deposit from that institution.

    Article 26  After the publication of an application for a patent for
invention relating to a micro-organism, any unit or individual which or who
intends to make use of the micro-organism mentioned in the application for the
purpose of experiment shall make a request to the Patent Office containing the
following:

    (1) the name and address of the unit or individual making the request;

    (2) an undertaking by the unit or individual making the request not to
make the micro-organism available to any other person;

    (3) an undertaking to use the micro-organism for experimental purpose only
before the grant of the patent right.

    Article 27  The size of drawings or photographs of a design submitted in
accordance with the provisions of Article 27 of the Patent Law shall not be
smaller than 3 cm x 8 cm, nor larger than 19 cm x 27 cm.

    The applicant may submit for each design drawings or photographs of
difierent angles, sides or positions so as to clearly show the object for
which protection is sought. The applicant shall indicate on each drawing or
photograph the angle, side or position, and mark on the top left and right of
the back of drawing or photograph its consecutive number and the name of the
applicant.

    Article 28  Where an application for a patent for design seeking
protection of colours is filed, a drawing or photograph in colour, and a
drawing or photograph in white and black, shall be submitted, and a statement
of the colours for which protection is sought shall be made on the drawing or
photograph in white and black.

    Article 29  Where the Patent Office finds it necessary, it may require the
applicant for a patent on design to submit a sample or model of the product
incorporating the design. The volume of the sample or model submitted shall
not exceed 30 cm x 30 cm x 30 cm, and its weight shall not surpass 15 kilos.
Articles easily perishable or fragile, or articles that are dangerous shall
not be submitted as sample or model.

    Article 30  Academic or technical conferences mentioned in Item (2) of
Article 24 of the Patent Law mean any academic or technical conference
organized by a competent department concerned of the State Council or by a
national academic association.

    Article 31  Where any application for a patent fails under the provisions
of Item (1) or Item (2) of Article 24 of the Patent Law, the applicant shall,
when filing the application, make a declaration and, within a time limit of 2
months from the date of filing, submit a certificate issued by the unit which organized the international exhibition or academic or
technical conference,
stating that the invention-creation was in fact exhibited or made public there
and also the date of its exhibition or making public.

    Where any application for a patent falls under the provisions of item (3)
of Article 24 of the Patent Law, the Patent Office may, when necessary,
require the applicant to submit the relevant proof.

    Article 32  Where the applicant for a patent on invention claims priority,
it or he shall, within 15 months from the date on which it or he first filed
the application in a foreign country, submit the filing number accorded by
that country.

    Article 33  Where two or more priorities are claimed for an application
for a patent, the priority period for the application shall be calculated from
the earliest priority date.

    Article 34  Where an application for a patent is filed by any foreigner,
foreign enterprise or other foreign organization having no habitual residence
or business office in China, the Patent Office may, when there is any doubt,
require the applicant to submit the following documents:

    (1) a certificate concerning the nationality of the applicant;

    (2) a certificate concerning the seat of the headquarters of a foreign
enterprise or other foreign organization;

    (3) a testimonial showing that the country, to which the foreigner,
foreign enterprise or other foreign organization belongs, recognizes that
Chinese citizens or units are, under the same conditions applied to its
nationals, enpost_titled to patent rights and other related rights in that country.

    Article 35  According to the provisions in Paragraph 1, Article 31 of the
Patent Law, the claims in a patent application for an invention or utility
model may be any of the following:

    (1) two or more independent claims of the same category of product or
process, which cannot be included in one claim;

    (2) an independent claim for a product as well as for the process
specially adopted for the manufacture of that product;

    (3) an independent claim for a product as well as for the use of that
product;

    (4) an independent claim for a product, the process specially adopted for
the manufacture of that product as well as for the use of that product;

    (5) an independent claim for a product, the process specially adopted for
the manufacture of that product, as well as for the equipment specially
designed for carrying out the process;

    (6) an independent claim for a process as well as for the equipment
specially designed for carrying out that process;

    (7) an independent claim for a process as well as for the product directly
manufactured by carrying out that process.

    Article 36  Where a patent application for a design contains two or more
designs in accordance with the provisions in Paragraph 2, Article 31 of the
Patent Law, the designs shall be numbered consecutively and the products
incorporating the designs shall be indicated in the request of the
application. The consecutive numbers shall be marked on the bottom left of the
back of the drawings or photographs of the design.

    Article 37  When withdrawing a patent application, the applicant shall
submit to the Patent Offfice a declaration stating the post_title of the
invention-creation, the filing number and the date of filing.

    Where a declaration to withdraw the patent application is submitted after
the printing preparation has been done by the Patent Office for publication of
the application documents, the application shall be published as scheduled.
Chapter III  Examination and Approval of Patent Applications

    Article 38  In any of the following cases, an examiner or a member of the
Patent Reexamination Board shall, on his own initiative or upon the request
of the applicant or any other interested party, withdraw from his office:

    (1) where he is a close relative of the applicant or the patent agent;

    (2) where he has an interest in the patent application;

    (3) where he has such other kinds of relations with the applicant or the
patent agent that might influence the impartial examination of the application.

    Where a member of the Patent Reexamination Board has taken part in the
examination of the application, the provisions of the preceding paragraph
shall apply.

    Article 39  Upon the receipt of a written request, a description (a
drawing being indispensable for utility model) and one or more claims for a
patent for an invention or utility model, or a written request and one or more
drawings or photographs showing the design for a patent application for
design, the Patent Office shall accord the date of filing and a filing number,
and notify them to the applicant.

    Article 40  If the application documents submitted do not contain a
request or a description or claims, or if they are not in conformity with the
provisions of Article 27 of the Patent Law, the Patent Office shall reject the
application and notify the applicant accordingly.

    Article 41  Where the description of an invention mentions that it
contains “explanatory notes to the drawings” but the drawings are missing, the
applicant shall, within the time limit specified by the Patent Office, either
furnish the drawings or make a declaration for the deletion of the
“explanatory notes to the drawings”. If the drawings are submitted later, the
date of their delivery at, or mailing to, the Patent Office shall be the date
of filing of the application; if the “explanatory notes of the drawings” are
deleted, the original date of filing shall be retained.

    Article 42  Where an application for a patent contains two or more
inventions, utility models or designs, the applicant may, at any time before
the announcement of the application under Article 39 or Article 40 of the
Patent Law, or after the said announcement at the time when the Patent Office
considers the filing of a divisional application is justified, submit to the
Patent Office a request for the division of the application and divide it on
its or his own initiative into several applications.

    If the Patent Office finds that the application for a patent is not in
conformity with the provisions of Article 31 of the Patent Law and Article 35
of these Rules, it shall require the applicant to divide the application
within a specified time limit. If, without any justified reason, the applicant
does not give any response within the time limit, the application shall be
deemed to have been withdrawn.

    Article 43  For divisional applications filed in accordance with
Article 42 of these Rules, the original date of filing of the application may
be retained, provided that they do not go beyond the scope as contained in the
original description.

    Article 44  Where, upon preliminary examination, the Patent Office finds
that a patent application obviously fails under Article 3 or Article 25 of the
Patent Law, or is obviously not in conformity with Article 18 or Article 19 of
the Patent Law or Article 2 of these Rules, it shall require the applicant to
present its or his observations within a specified time limit. If the
applicant, without any justified reason, fails to meet the time limit for
presenting observations, the application shall be deemed to have been
withdrawn.

    Where, after the applicant has made the observations, the Patent Office
still finds that the application is obviously not in conformity with the
provisions of the articles cited in the preceding paragraph, the application
shall be rejected.

    Article 45  Where a patent application belongs to any of the following
cases, the applicant shall, within a time limit specified by the Patent
Office, make due rectification:

    (1) the written request is not presented in the prescribed form or the
indications therein are not in conformity with the requirements;    (2) the description and its drawings or the
claims of the invention or
utility model are not in conformity with the relevant provisions;

    (3) the patent application for an invention or utility model does not
contain an abstract;

    (4) the drawings or photographs contained in the patent application for a
design are not in conformity with the relevant provisions;

    (5) a patent agency is entrusted, but no power of attorney is submitted;

    (6) any other deficiencies which call for rectifications.

    If the applicant, without any justified reason, fails to meet the time
limit for rectifying the deficiencies, the application shall be deemded to
have been withdrawn. If, after the rectification, the patent application is
still not in conformity with the relevant provisions of the Patent Law or
these Rules, it shall be rejected.

 &nbs

INTERIM PROVISIONS CONCERNING IMPOSITION OF CONSOLIDATED INDUSTRIAL AND COMMERCIAL TAX AND ENTERPRISE INCOME TAX ON RESIDENT REPRESENTATIVE OFFICES OF FOREIGN ENTERPRISES

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1985-05-15 Effective Date  1985-01-01  


Interim Provisions Concerning Imposition of Consolidated Industrial and Commercial Tax and Enterprise Income Tax on Resident Representative
Offices of Foreign Enterprises


Notes:

(Approved by the State Council on April 11, 1985; promulgated by the

Ministry of Finance on May 15, 1985)

    The following Provisions are formulated in accordance with the provisions
of Articles 2 and 8 of the Regulations of the People’s Republic of China on
the Consolidated Industrial and Commercial Tax, Article 1 of the Income Tax
Law of the People’s Republic of China for Foreign Enterprises and Articles 2
and 4 of the Rules for the Implementation thereof (Note 1), and Article 9 of
the Interim Provisions of the State Council Concerning the Administration of
Resident Representative Offices of Foreign Enterprises, and the relevant
provisions of the tax treaties concluded between the Chinese Government and
foreign government in respect of issues concerning the imposition of tax on
resident representative offices of foreign enterprises:

    1. Resident representative offices that conduct market surveys, provide
business information and perform other business liaison, consultation and
services activities on behalf of their head offices and for which no business
income or service income is received, shall not be subject to the consolidated
industrial and commercial tax or enterprise income tax.

    Resident representative offices, appointed by enterprises within China to
act as agents outside China, and whose activities are performed principally
outside China, shall not be subject to tax on the income derived there-from.

    2. The following incomes of resident representative offices shall be
subject to tax:

    (1) the commissions, rebates and service fees received by resident
representative offices on behalf of their bead offices in respect of the
performance of agency assignments outside China for other enterprises and for
liaison negotiations and intermediary services within China;

    (2) remuneration paid by clients according to a fixed scale during a
specified or the amount for representative services in respect of the
undertaking of market surveys, liaison work, receiving or collecting business
information and rendering of consultancy services within China by resident
representative offices for their clients (including clients of their head
offices);

    (3) commissions, rebates and service fees received by resident
representative offices when engaging in business within China as agents for
other enterprises or in respect of the performance of liaison, negotiation or
intermediary services for economic and trade transactions between other
enterprises.

    3. Tax in respect of liaison, negotiation or intermediary, services
rendered by a resident representative office shall, if the amount of the
commission is specified clearly in the contract, be calculated and imposed on
the amount specified in the contract; if the amount of commission is not
specified clearly in the contract, and no accurate supporting documents or
correct report of the amount of commission income can be provided, the local
tax authorities may, by reference to a general level of commission and the
amount of business realized from the intermediary services, determine an
appropriate amount of commission as the basis on which to calculate and impose
taxes. In cases as mentioned in (1) of Article 2 of these Provisions, where
part of the agency services is performed by its head office outside China, the
resident representative office shall report and submit relevant certificates
and documents to the local tax authorities for evaluation and determination of
the amount of commission which shall be subject to the filing of tax returns
and payment of tax in China.

    4. Commission, rebates and service fees received by resident
representative offices in respect of performance of agency or intermediary
services that fall into the categories of taxable items listed in the Schedule
of Taxable Items and Tax Rates of the Consolidated Industrial and Commercial
Tax, shall be subject to the consolidated industrial and commercial tax at a
reduced rate of 5% (Note 2). In cases where the enterprise income tax shall be
levied, the tax shall be assessed on the taxable income calculated exactly
from documents provided by the taxpayer as to costs and expenses; where no
such documentation is available, the tax shall be assessed on the taxable
income calculated on the basis of an appropriate rate of profit, provisionally
determined at 15% of the business revenue in accordance with the provisions of
Article 24 of the Rules for the Implementation of the Income Tax Law of the
People’s Republic of China for Foreign Enterprises. (Note 3)

    5. “Enterprise” as mentioned in these Provisions encompasses
“corporation”, “company” and “economic organization”.

    6. The Ministry of Finance shall be responsible for the interpretation
of these Provisions.

    7. These Provisions shall come into force as of January 1, 1985.
Notes:

    Note 1  The Regulations of the People’s Republic of China on the
Consolidated Industrial and Commercial Tax, the Income Tax Law of the People’s
Republic of China for Foreign Enterprises and the Rules for its implementation
have been annulled. –The Editor

    Note 2  The provisions in the Decision of the Standing Committee of the
National People’s Congress Regarding the Application of Provisional
Regulations on Such Taxes as Value-Added Tax, Consumption Tax and Business Tax
to Foreign Investment Enterprises and Foreign Enterprises, promulgated by
Order No.18 of the President of the People’s Republic of China on December 29,
1993, shall prevail instead. –The Editor

    Note 3  The provisions of Chapter VI in the Regulations for Implementation
of the Income Tax Law of the People’s Republic of China for Enterprises with
Foreign Investmetn and Foreign Enterprises, promulgated by Decree No.85 of
the State Council of the People’s Republic of China on June 30, 1991, shall
prevail instead. –The Editor






DETAILED IMPLEMENTING RULES TO THE REGULATIONS ON THE INSPECTION OF IMPORT AND EXPORT COMMODITIES OF THE PEOPLE’S REPUBLIC OF CHINA

DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON THE REVISION OF THE ORGANIC LAW

MEASURES ON THE ADMINISTRATION OF PASSIVE QUOTAS FOR TEXTILE PRODUCTS






The Ministry of Foreign Trade and Economic Cooperation

Order of the Ministry of Foreign Trade and Economic CooperationMeasures on the Administration of Passive Quotas for Textile Products

No.28

The Measures on the Administration of Passive Quotas for Textile Products which was enacted according to the Foreign Trade Law of
the People’s Republic of China and the Regulation of the People’s Republic of China on the Administration of the Import and Export
of Goods has been passed at the tenth ministerial meeting of the year 2001 of the Ministry of Foreign Trade and Economic Cooperation
and won the consent of the State Administration of Customs and the State Administration of Quality Supervision and Quarantine upon
discussion, and are hereby promulgated for implementation as of January 1, 2002.

Minister of the Ministry of Foreign Trade and Economic Cooperation Shi Guangsheng

December 20, 2001

Measures on the Administration of Passive Quotas for Textile Products

Chapter I General Provisions

Article 1

The present Measures have been formulated on the basis of the Foreign Trade Law of the People’s Republic of China and the Regulation
on the Administration of the Import and Export of Goods and according to the Agreement on Textile Products and Clothing of the World
Trade Organization and the commitments of China with regard to textile products after its accession to the WTO.

Article 2

Definitions

The term “passive quotas for textile products” (hereinafter referred to as “textile quotas”) shall refer to the quantitative restrictions
on the export of textile fabrics like cotton, wool, chemical fibers, silk, hemp and other plant fibers and the products thereof that
are restricted by the country of import. The classification and measurement unit of textile quotas shall be based on relevant agreements.

Country of restriction this term refers to the countries mentioned in the notices of the Textile Monitoring Body (“TMB”) under the
WTO that have restrictions of textile quotas over the textile products of China, including the United States, Canada, European Union,
and Turkey.

Industrialist and industrialist quota According to the notices submitted by China and EU to the TMB under the WTO, the European Commission
shall provide to the MOFTEC of China a list of some of the processors and producers from the EU before the end of each year, and
the enterprises included in the list are the “EU industrialists” for the next year. According to relevant provisions, a part of the
quotas from all categories shall be reserved with within 115 days from the day when the agreement year for Categories II and III
of export to EU begins and within 180 days after the day when the agreement year for Categories V, VI, VII, VIII, XV and XXVI of
export to EU begins, and the quotas herein mentioned are the “quotas for EU industrialists”.

Quota for the Europe Fair According to the notices submitted by China and EU to the TMB under the WTO, this term refers to the passive
quotas for textile products that are independent from the normal passive quotas established specially by both parties for the purpose
of performing the contracts concluded at the European Fair.

Exporting Enterprise This term refers to the various enterprises (including enterprises with foreign investment) that have the qualifications
for engaging in the export of textile products and clothing.

Performance Quota This term refers to the quotas that are not subject to bid invitations and control of total quantity, but are independently
applied by enterprises according to their export performances.

Export performance This term refers to the export performance of the textile products restricted by the countries of restriction and
the export performance of the non-quota textile products of the whole world. The term “export performance of the textile products
restricted by the countries of restriction” refers to the quantity of customs clearance actually made by the countries of restriction
or of the quantity of import licenses exchanged for the textile products under the different quotas during a certain period of time.
The term “export performance of the non-quota textile products of the whole world” refers to amount of money incurred from the export
of products under various quotas to the countries and regions not restricted by quotas during a certain period of time. The export
performance of textile products under export quotas to the countries of restriction shall be based on the statistics of the customs
of the state, and the export performance of the non-quota textile products of the whole world shall be based on the statistics of
the Chinese customs.

Export license This term refers to the export licenses of textile products needed for exporting to the countries of restriction, the
licenses of silk and hemp products, certificates of handiworks, certificates of origin, etc.

Rate of issue This term refers to the proportion of the quantity of quotas issued according to the export license of a certain kind
of quota in the total amount of quotas obtained by various means (it is classified into that of the whole country, that of a local
place and that of an enterprise).

Rate of customs clearance (rate of use) This term refers to the proportion of the amount of customs clearance actually made in the
country of restriction or the import licenses exchanged of a certain kind of quotas in the total amount of quotas obtained by various
means (it is classified into that of the whole country, that of a local place and that of an enterprise).

Article 3

The organs of quota administration and the functions and duties thereof

The quotas for the textile products to be exported to the countries of restriction shall be subject to the hierarchical administration.

The Ministry of Foreign Trade and Economic Cooperation (hereinafter referred to as “MOFTEC”) shall be the administrative organ for
textile quotas. It is responsible for the negotiation, conclusion and execution of multilateral trade rules with the countries of
restriction, the formulation of rules on the administration of textile quotas, the allocation of textile quotas and supervision and
guidance of the issuance of certificates for the export of textile products and the textile products actually exported.

Under the authorization of the MOFTEC, all provinces, autonomous regions, municipalitie directly under the Central Government, the
municipalities separately listed on the State plan and the capital city of eight provinces (Harbin, Changchun, Shenyang, Xi’an, Nanjing,
Wuhan, Chengdu, Guangzhou) (hereinafter referred to as “local administrative department of foreign trade authorized by the MOFTEC)
shall be the administrative organ of textile quotas of the local place; they shall be responsible for the allocation and administration
of quotas to the exporting enterprises of the locality, shall report to the MOFTEC about the allocation, use and administration of
quotas of the locality, and shall supervise and inspect the use of quotas as well as the actual export of the exporting enterprises
within the locality.

Article 4

The functions of the issuing authorities and the departments for the transmission of the electronic data of certificates

The Quota License Affairs Bureau under the MOFTEC (hereinafter referred to as “QLAB”) is the issuing authority of textile quotas authorized
by the MOFTEC.

The functions of the QLAB in the aspect of textile quotas are:

1.

Being responsible for the uniform printing, distribution and inspection of export licenses for textile products, the allocation of
the numbers of certificates, and for accepting the registration of export licenses of textile products, signatures of issuers and
numbers for archivist purposes;

2.

Administering the issuing authorities according to relevant provisions, inspecting to see whether the issuing authorities have issued
licenses according to the allocated quotas, and reporting to the MOFTEC on the monthly basis about inspections of the issuance of
certificates by the issuing authorities;

3.

Being responsible for the internal inspection of the data of export licenses issued by the issuing authorities, the data customs clearance
abroad, for investigating false evidences and perjuries, and reporting regularly to the MOFTEC about the inspections.

The administrative departments of foreign trade at all places shall, under the authorization of the QLAB, be responsible for the issuance
and administration of licenses for the export of textile products.

The China International Electronic Commerce Center (hereinafter referred to as “CIECC”) shall, under the authorization of the MOFTEC,
be responsible for the statistics of the issuance of licenses for the export of textile products and the exchange of the electronic
data of the licenses for the export of textile products to the countries of restriction.

Article 5

The ways of quotas allocation

The textile quotas are allocated by way of invitations for bid, independent applications and allocation according to performances.
The MOFTEC shall, on the basis of the use of quotas in the preceding year, publicize lists of quotas to be allocated by way of invitation
for bid, independent applications and allocation according to performances before September 10 of each year, and may make necessary
readjustments according to the use of quotas of the year.

Chapter II The System of Export License

Article 6

The system of quota and export license shall be applied to the export of textile products to the countries of restriction; the customs
shall be responsible for supervision, and the organs for the entry and exit inspection and quarantine shall be responsible for inspection
according to relevant provisions.

Article 7

Export licenses shall be issued by the QLAB and the local issuing authorities authorized thereby according to the total amount of
quotas granted by the MOFTEC and the quantity of quotas allocated by the local administrative departments of foreign trade. The customs
offices shall examine and release goods according to the export licenses. With regard to the textile products for export subject
to statutory inspections and the commodities included in the lists of textile products for export that are subject to the inspection
of inspection authorities, the customs offices shall also inspect the instruments of customs clearance issued by the inspection and
quarantine organs for the goods departing the country.

Article 8

The year affixed to the export licenses shall be identical to the year of departure of goods.

The declaration of customs for the departing goods under the export licenses shall be made no later than December 31 of the year;
in case of overdue, the declaration of customs shall not be accepted by the customs offices and the goods shall not be released.

Article 9

An approval shall be obtained for each export license, and the certificates may not be transferred, not may the certificates be altered.
If it is necessary to make any alterations, a new export license shall be issued.

Article 10

The application for and issuance of export licenses shall be executed according the relevant administrative rules concerning the passive
quotas for textile products.

Chapter III The Invitation for Bid for Quotas

Article 11

The MOFTEC shall arrange for bid invitations for the quotas of some of the textile products according to the principle of “efficiency,
impartiality, openness and fair competition”.

Article 12

The invitation for bid for quotas shall be made in accordance to the Measures for the Bid Invitation for Export Commodities and the
Detailed Rules for the Implementation of the Bid Invitation for the Passive Quotas for Textile Products.

Chapter IV The Independent Application for Quotas

Article 13

The determination of quota types subject to independent application

The MOFTEC shall control the total amount of the quota types for the textile products whose rate of customs clearance between January
and August of the current year and that for the previous year are both below 40% percent in the next year, and the exporting enterprises
may independently apply for export licenses.

The MOFTEC shall publicize the list of quota types subject to the control of total amount for the next year in September of the current
year, and, where it is necessary, make readjustments prior to December 15 of the current year.

Article 14

The allocation of quotas subject to independent application

The MOFTEC shall, before December 15 of each year, distribute the quotas that are no less than two times of the quantity of quotas
subject to independent application fed back by all the local places for the next year to the administrative departments of foreign
trade authorized by the MOFTEC, and the quantity of quotas for the enterprises directly under the Central Government shall be distributed
to the QLAB, and shall publish the concrete quantities on the website of the CIECC. Where there are no feedbacks of customs clearance
in any local place, the MOFTEC shall distribute to the place according to the minimum quantity ever fed back by other places.

All issuing authorities shall issue export licenses to the exporting enterprises under their respective jurisdictions within the limit
of total amount granted by the MOFTEC. As for the enterprises that have performances of customs clearance in the previous year, the
issuing authorities shall reserve the preemptive right to use quotas equal to the quantity of export performance for half a year.

Article 15

The use of quotas subject to independent applications

When exporting textile products under the types of quotas subject to independent applications, the exporting enterprises shall, prior
to the conclusion of sales contracts, inquire the local issuing authorities about the quota types and the quantity of quotas remained
or make inquisitions through the website of CIECC. They may not conclude sales contracts until they confirm that there are additional
quotas. After the conclusion of contracts, they shall apply to the local issuing authority immediately on the basis of the contracts
for export licenses.

The issuing authorities shall, after receiving the application of the enterprises, examine the sales contract of the said enterprises,
and may not issue export licenses to the enterprises until they confirm that there are additional quotas of relevant types for the
locality.

Article 16

The readjustment of the quantity of quotas subject to independent applications

The local administrative departments of foreign trade may, when the rate of issuance of licenses for the quotas subject to independent
application in the locality reaches 90%, apply to the MOFTEC for granting additional quotas. The enterprises directly under the Central
Government may, when the rate of issuance of licenses for the quotas subject to independent application in the locality reaches 100%,
apply to the MOFTEC for granting additional quotas.

The MOFTEC shall decide whether to approve the applications or not and the quantity to be approved according to the rate of customs
clearance of relevant types of the local and central enterprises that have made the applications.

Article 17

The examination of the quotas subject to independent applications

The MOFTEC shall make irregular samplings of the documents of customs declaration that have been passed the examination of the customs
offices as well as the sheet of the export licenses returned by the customs offices of the exporting enterprises obtained by way
of independent applications. In case any exporting enterprise that intentionally occupies the quotas subject to independent applications
but fail to use them for actual export, the MOFTEC shall, according to the seriousness of the circumstances, disqualify the said
enterprise from independently applying for some or all types of quotas subject to independent applications. In case any issuing authority
indulges the enterprises to intentionally occupy quotas, the MOFTEC shall deal with the said issuing authority according to the Provisions
on the Administration of Export Licenses.

Article 18

The readjustment of the types of quotas subject to independent applications

As for the quotas subject to independent applications which are no longer subject to independent applications due to the rise in use
rate, the MOFTEC may, on the basis of the export performances of the local can central enterprises during the previous quota year
(including the export performances of all kinds of enterprises), allocate the performance quotas according to the principle of allocating
performance quotas.

Chapter V The Administration of Performance Quotas

Article 19

The performance quotas shall be allocated on the basis of the export performances of the local and central enterprises in the export
of textile products during the previous quota year; the export performance consists of that of textile products exported to the countries
of restriction and that of non-quota textile products of the world.

Article 20

The performance quotas for textile products exported to the countries of restriction

The performance quotas for textile products exported to the countries of restriction are allocated for three times: the first initial
allocation, the second initial allocation and the final allocation.

The first initial allocation shall be made in October of the previous year of the quota year, and the allocation shall be made on
the basis of the export performances in the export of textile products to the countries of restriction between January and August
of the previous quota year times a quotient.

The second initial allocation shall be made in December of the previous year, and the allocation shall be made on the basis of the
export performances in the export of textile products to the countries of restriction between January and November of the previous
quota year times a quotient.

The final allocation shall be made in March of the current year, and the allocation shall be made on the basis of the export performances
in the export of textile products to the regions of restriction between January and November of the previous quota year times a quotient.
The export performance in the export of textile products to the countries of restriction during the whole of the previous quota year
shall be based on the statistics at the end of February of the ending quota year.

The enterprises may conclude transactions according to the initially allocated quotas prior to the granting of final allocation. The
export performance in the export of textile products to the countries of restriction within the whole of a quota year shall be based
on the quantity of final allocations.

Article 21

The performance quotas for the export of non-quota textile products of the world

The performance quotas for the export of non-quota textile products of the world shall be allocated twice a year: in January and April
of the quota year.

The performance quotas for the export of non-quota textile products of the world determined as pursuant to Article 17 of the present
Measures shall be allocated by the MOFTEC to the local and central enterprises whose non-quota textile products of the world has
come up to a certain amount which shall be calculated according to the following formula. The export performance of the non-quota
textile products of the world shall be 100% of the export value of textile products under the item of general trade (including frontier
trade) summed up by the Chinese customs plus 30% of the export value of textile products under the item of processing with imported
materials:

The export performance quota of non-quota textile products of a certain type = the total amount of export performance quota of non-quota
textile products of the world of this type * a coefficient of the export value of non-quota textile products of the world

The coefficient of export value of non-quota textile products of the world = the export performance of local (central enterprises)
in non-quota textile products or the world of this type ￿￿the export performance of non-quota textile products of the world in the
whole country

The export performance of all kinds of enterprises in the non-quota textile products of the world shall be calculated in the statistics
of performances and the quotas determined according to Article 17 of the present Measures shall be allocated to the enterprises
on the basis of their export performance in the non-quota textile products of the world.

In the allocation of export performance quotas for the non-quota textile products of the world, the MOFTEC may, according to the specific
circumstances, use a certain proportion of quota for certain types to reward the enterprises that have made outstanding achievements
in the export of home made famous-brand products or for carrying out other policies.

Article 22

The origin of performance quotas

The origin of performance quotas for the export of non-quota textile products to the countries of restriction shall be the quotas
prescribed in the bilateral or multilateral agreement in the previous quota year.

The origin of performance quotas for the export of non-quota textile products of the world shall be:

1.

Quotas for the annual increase rate as prescribed in bilateral or multilateral agreements;

2.

Quotas for handling flexible clauses (carryforward, transfer of certain types, advance borrowing) determined by the MOFTEC according
to he prescriptions of bilateral or multilateral agreements and the use of quotas;

3.

The quotas handed in by the local and central enterprises;

4.

The quotas confiscated according to Chapter VIII of the present Measures.

Chapter VI The Administration of Industrialist Quotas

Article 23

The qualifications of the applicant enterprises

An exporting enterprise shall have acquire the qualifications for applying for industrialist quotas after it has entered into contracts
with an industrialist from the EU concerning the export of textile products subject to industrialist quotas as provided in the notices.

Article 24

The procedures for application

The MOFTEC shall, after receiving the list of industrialist quotas provided by the European Commission, distribute them to the local
administrative departments of foreign trade authorized by the MOFTEC.

The domestic enterprises shall, after concluding contracts with EU industrialists according to their actual business demands, submit
the original text of the contracts that have been signed by both parties and attached with the official cachets of both parties to
the local administrative department of foreign trade authorized by the MOFTEC for examination and approval. The local administrative
departments of foreign trade authorized by the MOFTEC shall, after confirming the truthfulness of the contracts according to the
above-mentioned provisions, gather all the official texts of the contracts each month and submit them together with the applications
to the MOFTEC during the period between the 20th and the end of each month.

The applications for the type II and III quotas as well as the corresponding contracts shall be submitted to the MOFTEC within 115
days after the quota year begins; the applications for other types of quotas as well as the corresponding contracts shall be submitted
to the MOFTEC within 180 days after the quota year begins. The applications submitted beyond the time periods shall be invalid ones
and may not be accepted.

Article 25

The ways of allocation of quotas

The MOFTEC shall gather up all the applications of the local administrative departments of foreign trade authorized by the MOFTEC
and the central enterprises at the end of each month during the months January to June of each year, and shall, within the first
10 working days of the next month, allocate the quotas to the central enterprises and the local enterprises via the local administrative
departments of foreign trade authorized by the MOFTEC.

If the total amount of quotas applied for a certain industrialist gathered up by the MOFTEC for each month does not exceed the industrialist
quotas of this type provided in the agreements that remain at the current month, the MOFTEC shall satisfy the applications of all
enterprises for the quotas of this type; if it exceeds the industrialist quotas of this type provided in the agreements that remain
at the current month, the MOFTEC shall allocate the quotas according to a certain proportion of the total amount of quotas applied
by all the enterprises within the current month.

Article 26

The ways of administration

The industrialist quotas acquired by the enterprises may not be changed into normal quotas; in case any of the contracts concluded
with any EU industrialist cannot be performed, the enterprise shall hand the industrialist quotas in.

For all the industrialist quotas subject to bid invitations, an amount of money for winning bids for industrialist quotas shall be
collected according to the negotiated bid invitation prices for this type of the current year prior to the allocation of quotas.
Within 30 days after the allocation of quotas, the Chinese exporting enterprises that acquires industrialist quotas shall pay a caution
money which equals 30% of the amount of money for winning bids for industrialist quotas to the designated bank accounts. In case
any enterprise that fails to pay the caution money within the time limit, the industrialist quotas thereof shall be taken back by
the MOFTEC, and the said enterprise shall be disqualified from applying for industrialist quotas within the next two years.

The Detailed Rules for the Implementation of the Bid Invitations for Passive Quotas of Textile Products shall be observed in the use
of quotas subject to bid invitations.

Chapter VII The Administration of Quotas for European Fairs

Article 27

Requirements for the use of quotas

As pursuant to the requirements of the administrative procedures of the EU, the quotas for the European fairs can be used only for
the performance of contracts during the next year concluded at the Berlin Progress Partnership Fair (hereinafter referred to as “Berlin
Fair”) which is held in Berlin, Germany, in November each year.

Article 28

The qualifications for enterprises to participate in the allocation of quotas for fairs

1.

The enterprises the attend the Berlin Fair for two consecutive years and have business operation performances;

2.

The applicant enterprises that have outstanding performances in the normal export of textile products to the EU.

Article 29

Principles for allocating quotas

The MOFTEC shall determine the plans for allocating the quotas for the next year according to the rate of license issuance of the
enterprises that have participated in the fairs between January and September of each quota year with reference to the average rate
of license issuance of the whole country:

1.

The enterprises whose rate of license issuance of a certain type is higher than the average rate of the whole country shall acquire
all the quotas allocated to the enterprises of this type for the current year;

2.

The enterprises whose rate of license issuance is lower than the average rate of the whole country shall have their quotas deducted
in proportion to the allocated quotas of the current year;

3.

The remained quotas of all types shall be allocated to the enterprises that participated in the fairs and that have high rates of
license issuance of the type and the new applicants for participating in the fairs that have outstanding performances in the normal
export of textile products to the EU;

4.

The standards for allocating the quotas for the European fairs whose normal types of quotas are subject to independent applications
shall be relaxed.

Article 30

The procedures of allocation

The MOFTEC shall distribute the plan of initial allocation of the quotas for the next year to the central enterprises and the local
enterprises via the local administrative departments of foreign trade authorized by the MOFTEC in October each year prior to the
holding of the Berlin Fair according to the provisions of Article 29 of the present Measures. It may be the basis for the participating
enterprises to conclude contracts at the Berlin Fair, but not the basis for the issuing authorities to issue licenses.

After the Berlin Fair is ended, the MOFTEC shall, according to the contractual quantity reached at the Berlin Fair and by reference
to the allocation plan made prior to the holding of the Fair, complete the relevant statistics and then distribute the official plan
of allocating the quotas for the European fairs for the next year within 10 working days to the central enterprises and the relevant
local enterprises via the local administrative departments of foreign trade authorized by the MOFTEC. The official plan shall be
the basis for the issuing authorities to issue licenses. As for the quantity of quotas undetermined prior to the holding of the Berlin
Fair and the quotas for which no contracts are concluded at the Fair, the MOFTEC shall select those enterprises that have the intent
to conclude contracts on the basis of these quotas prior to the ending of the Berlin Fair.

Article 31

Fees for the quotas subject to bid invitations

The fees for the quotas subject to bid invitations involved in the quotas for the European fairs shall be determined by the MOFTEC
by reference to the negotiated prices of bids of the current year for this type of quotas and shall be distributed to the enterprises.

Article 32

Way of participating in the fairs

The enterprises that obtains quotas for the European fairs shall be allowed to participate in the Berlin Fair of the year. The MOFTEC
shall entrust relevant enterprises to organize the enterprises concerned to attend, while the MOFTEC shall be responsible for the
coordination with the relevant authorities responsible for the holding of the Berlin Fair.

Chapter VIII The Turn-over and Transfer of Quotas

Article 33

The turn-over of quotas

The quotas unused by the local enterprises (including the EU industrialist quotas) shall be turned over to the MOFTEC via the local
administrative departments of foreign trade authorized by the MOFTEC, and the central enterprises shall turn their unused quotas
directly to the MOFTEC.

The local administrative departments of foreign trade authorized by the MOFTEC and the central enterprises shall turn over the unused
quotas to the MOFTEC no later than October 31 of the quota year.

The quotas that have not been turned over to the MOFTEC after October 31 and for which no licenses have been issued for the export
of relevant textile products shall be taken back by the MOFTEC and be reallocated.

If there are no feedback data from the countries of restriction for the licenses issued (i.e., bad licenses) by March 1 of the second
year of the quota year, the performance of quota for the license of this quota of the relevant companies shall be revoked.

Article 34

The transfer of quotas

In order to increase the overall use rate of the quotas, provide channels to the enterprises with insufficient quotas to obtain quotas,
encourage the flow of quotas to the enterprises with real capabilities, the MOFTEC permits the quotas other than the industrialist
quotas and the quotas for the European fairs to be transferred according to relevant procedures. The transfer of the quotas subject
to bid invitations shall be executed according to the provisions of the Measures for the Bid Invitation of Quotas for the Export
of Commodities and the Detailed Rules for Implementing the Bid Invitation of Passive Quotas for Textile Products.

The transfer of quotas is classified into the intra-regional transfer and inter-regional transfer.

MEASURES ON THE ADMINISTRATION OF AUTOMATIC IMPORT LICENSE OF GOODS

The Ministry of Foreign Trade and Economic Cooperation

Order of the President of the People’s Republic of China

No.20

In accordance with the “Foreign Trade Law of the People’s Republic of China” and the “Regulations of the People’s Republic of China
on the Administration of the Import and Export of Goods”, and upon consent by and after negotiation with the General Administration
of Customs, the “Measures on the Administration of Automatic Import License of Goods” are hereby promulgated and shall come into
force on January 1, 2002.

Shi Guangsheng, Minister of the Ministry Foreign Trade and Economic Cooperation

December 31, 2001

Measures on the Administration of Automatic Import License of Goods

Article 1

These Measures are enacted in accordance with the “Regulations of the People’s Republic of China on the Administration of the Import
and Export of Goods” in order to effectively monitor the import of goods and regulate the automatic import license of goods.

Article 2

The Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China (hereinafter referred to as “the MOFTEC”)
shall, on the basis of the needs of monitoring the import of goods, administer the automatic import license of some goods.

Article 3

The catalogue of goods subject to automatic import license administration, including the names and tariff numbers of specific goods,
shall be determined by the MOFTEC after negotiation with the relevant departments, and shall be promulgated at least 21 days before
the execution thereof. The present catalogue of the goods subject to automatic import license administration is attached behind (see
Attachment I).

Article 4

When, with respect to the goods subject to automatic import license administration, the reasons for the implementation of the administration
have been changed, the MOFTEC shall cancel the automatic import license administration on the goods, and shall promulgate the cancellation.

Article 5

The automatic import licenses shall be issued by the Quota License Affairs Bureau, the departments in charge of foreign trade and
economic cooperation of all provinces, autonomous regions, municipalities directly under the Central Government and cities directly
under State planning as well as the relevant State departments (hereinafter uniformly referred to as the “license-issuing institutions”)
upon authorization by the MOFTEC. The name list of specific license-issuing institutions is attached behind (see Attachment II).

The MOFTEC shall be responsible for the supervision of the manufacture of the “Automatic Import Licenses” (for the sample form, please
see Attachment III) and the “Special Seals for Automatic Import License” (for the sample seal, please see Attachment IV) and shall
distribute such licenses and seals to the entities using the seals. Each of the entities using the seals must designate a special
person to keep the seal, which shall be used for the special purpose.

Article 6

An import business operator shall, when importing the goods subject to automatic import license administration, submit an application
for automatic import license to the automatic import license issuing institution authorized by the MOFTEC before it makes customs
declaration. The customs shall handle the customs declaration formalities on the basis of the “Automatic Import License” covered
with a “Special Seal for Automatic Import License”. The bank shall handle the formalities on purchase of and payment in foreign exchange
by depending on the “Automatic Import License”.

Article 7

An import business operator shall, when applying for an automatic import license, submit the following documents:

(1)

the application form for the automatic import license (for the pattern, please see Attachment V);

(2)

the contract on the import of the goods;

(3)

copies of legal documents within the business scope approved by the administrative organ;

(4)

the contract on agency import concluded between the entrusting party and the import business operator if the import is subject to
entrustment;

(5)

the documents attesting that the uses of the imported goods or the final users conform to be State provisions if there are certain
provisions regarding the uses of the imported goods or the final users;

(6)

other necessary documents provided for by the MOFTEC to be submitted.

Article 8

With respect to any application for license with correct contents and a complete form, the license-issuing institution shall, after
the receipt of such an application, immediately approve it within the feasible extent of its administration, and shall issue an automatic
import license. In case of any particular circumstance, it shall issue the license within a time of no more than 10 working days
as of its receipt of the application. The license-issuing institution shall transmit the relevant electronic data to the MOFTEC in
time according to the relevant provisions.

Article 9

Any import business operator, once conforming to the State requirements in laws and regulations on being engaged in the import operation
of goods subject to automatic license, may have the qualification to apply for and acquire the “Automatic Import License”.

With respect to the goods subject to State designated trading administration, only the designated trading enterprises may have the
qualification to apply for and acquire the automatic import license; if a non-designated trading enterprise needs to import the goods
subject to designated trading, it shall entrust a designated trading enterprise to act as an agent for the import, who shall apply
for the automatic import license. An import business operator may, if importing the goods subject to designated trading administration
in a relevant manner exclusively provided for in the designated trading administration, directly apply for the automatic import license.

With respect to the goods subject to State trading administration, both State trading enterprises and non-State trading enterprises
shall, when applying for and obtaining the automatic import license, conform to the relevant State provisions on the administration
of State trading.

Where there are certain provisions on the uses or users of the imported goods in laws, regulations or State industrial policies, the
application for the automatic import license shall conform to the relevant provisions.

Article 10

Whoever imports goods in any of the following trading manners does not need to obtain the automatic import license:

(1)

the manner of processing trade;

(2)

import of sample goods or advertisement products;

(3)

other trading manners provided for in State laws or regulations, in which the automatic import license does not need to be obtained.

Article 11

Where an import business operator does not use the automatic import license which it has obtained, it shall return the license to
the original license-issuing institution, and shall state the reason; if it has lost the license, it shall immediately report to
the original license-issuing institution, who shall, after verifying that the loss will cause no ill consequence, re-issue the license.

Article 12

With respect to the goods subject to automatic import license administration, which are under temporary prohibitive measures in import
or temporary restrictive measures in the quantity of import taken by the State, the issuance of the automatic import license shall
be ceased as of the date when the temporary measures come into force.

Article 13

The system of “one license for one batch” shall be exercised for the “Automatic Import License”, that is, the same automatic import
license shall not be used in accumulative customs declaration in batches. The period of validity of an automatic import license shall
be six months. Where the said period needs to be extended or the automatic import license needs to be modified, a new license shall
be re-applied for and re-issued without exception, and the previous license shall meanwhile be cancelled.

Article 14

Whoever imports the goods subject to automatic import license administration without permission before applying for and obtaining
the automatic import license in accordance with these Measures, shall be treated in accordance with the relevant provisions in the
Customs Law.

Whoever forges, alters or trades the automatic import license or obtains the automatic import license by deceptive means or any other
unfair means, his automatic import license shall be taken back in accordance with the law, and the MOFTEC may take a measure of suspension
up to revocation of its foreign trade operation license; if he has violated the Criminal Law, the case shall be transferred to the
judicial department for investigation of his criminal liabilities.

The customs may, on the basis of the demand for investigating illegal cases, detain the automatic import license in accordance with
the law.

Article 15

The automatic import license administration on the goods of enterprises with foreign investment shall be conducted in accordance with
the present relevant provisions.

Article 16

The detailed rules for the administration of the automatic import license for mechanical and electronic products shall be enacted
and promulgated by the MOFTEC in accordance with these Measures.

Article 17

The State Economic and Trade Commission and the MOFTEC shall continue to jointly administer 7 industrial products, namely, crude oil,
steel, pesticides, acrylic, terylene, polyester slices, chemical fertilizer (all kinds of products of the HS number excluding urea,
diammonium orthophosphate and compound fertilizer). For these industrial products, an enterprise with foreign investment shall continue
to apply for the automatic import license for foreign-funded enterprise in the department of foreign trade and economic cooperation
in accordance with the present provisions, and the customs shall, by depending on the automatic import license for foreign-funded
enterprise covered with a special seal by the department of foreign trade and economic cooperation, inspect and release the products.

Article 18

These Measures shall not be applicable to the goods entering the bonded zones or export processing zones of the People’s Republic
of China, which are under automatic import license administration.

Article 19

The MOFTEC shall be responsible for the interpretation of these Measures.

Article 20

These Measures shall come into force on January 1, 2002. In case of any previous provision inconsistent with these Measures, these
Measures shall prevail.

Attachment I:Catalogue of the Goods Subject to Automatic Import License Administration (omitted)

II:Name List of Automatic Import License Issuing Institutions (omitted)

III:Sample Form of the Automatic Import License (omitted)

IV:Sample of the Special Seal for the Automatic Import License (omitted)

V:Pattern of the Application Form for the Automatic Import License (omitted)

 
The Ministry of Foreign Trade and Economic Cooperation
2001-12-31

 




REPLY OF THE STATE ADMINISTRATION FOR INDUSTRY AND COMMERCE ON ISSUES CONCERNING THE REGISTRATION ADMINISTRATION OF ADVERTISING AGENCIES

The State Administration for Industry and Commerce

Reply of the State Administration for Industry and Commerce on Issues Concerning the Registration Administration of Advertising Agencies

GongShangGuanZi[2001] No.343

November 17, 2001

Liaoning Administration for Industry and Commerce:

We have studied your Request for Instructions on the Registration Administration of Advertising Agencies (LiaoGongShang [2001] No.
26) and now reply as follows:

1.

In compliance with Article 26 of Advertising Law of the People’s Republic of China (hereinafter referred to as Advertising Law) and
Article 6 of the Regulations on Advertising Administration (hereinafter referred to as the Regulations) of the State Council, any
organization that needs to engage in the advertising business should begin its operation only after obtaining the business or advertising
license and registering with competent administrations for industry and commerce. Non-profit organizations with advertising and promulgation
operations should apply to competent administrations for industry and commerce for the Advertising License.

2.

post_titles of the subjects of advertising activities: advertising operators and promulgators in the Advertising Law, namely advertising
operators in the Regulations.

3.

In case there is no corresponding legal liability clause of a certain misconduct in the Advertising Law but the Regulations contains
the corresponding penalty clause, the regulatory provisions and related penalty clauses of the Regulations may be applicable. Therefore,
advertising operations either without a license or beyond the prescribed scope of business should be punished in accordance with
Article 21 of the Implementing Rules of the Regulations on Advertising Administration.



 
The State Administration for Industry and Commerce
2001-11-17

 







ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF CUSTOMS ON THE ANNULMENT OF SOME REGULATORY DOCUMENTS FORMULATED BY THE GENERAL ADMINISTRATION OF CUSTOMS TO COORDINATE CHINA’S ACCESSION TO THE WTO

The General Administration of Customs

Announcement of the General Administration of Customs on the Annulment of Some Regulatory Documents Formulated by the General Administration
of Customs to Coordinate China’s Accession to the WTO

[2001] No.15

December 7, 2001

To coordinate China’s accession to the WTO and implement the overall planning of the State Council, the General Administration of
Customs conducted a review of the regulatory documents it formulated and decree that the following documents be nullified as of December
11, 2001:

1.

Circular on the Principles for Approaching Specific Issues in Implementing the Preferential Taxation Policy for Imported Goods of
Enterprises with Foreign Investment (ShuShuiZi [1987] No.564) of the General Administration of Customs, the Ministry of Finance and
the Ministry of Foreign Trade and Economic Cooperation

2.

Circular on the Interpretation of the Names of Commodities Controlled by Import and Export Licensing (JianYiHuoZi [88] No.125) of
the Department of Supervision No.1 of the General Administration of Customs and the Department of Foreign Trade Administration of
the Ministry of Foreign Trade and Economic Cooperation

3.

Circular for Reiterating the Principles for Regulating Commodities Controlled by Import and Export Licensing and Defining the Range
of Some Commodities Controlled by Export Licensing (JianYiHuoZi [1990] No. 75) of the Department of Supervision No.1 of the General
Administration of Customs and the Department of Foreign Trade Administration of the Ministry of Foreign Trade and Economic Cooperation

4.

Circular for the Promulgation of the Rules for the Implementation of the Interim Provisions on the Use of Preferential Taxation to
Promote the Nationalization of Automobiles (ShuShui [1992] No. 746) of the General Administration of Customs

5.

Circular for the Implementation of Specific Implementing Provisions of the State Council on Taxation Policy Adjustment for Enterprises
with Foreign Investment (ShuShui [1996] No.237) of the General Administration of Customs and the Ministry of Foreign Trade and Economic
Cooperation

6.

Circular of the General Administration of Customs for Issuing the Rules for the Implementation of the General Administration of Customs
of the People’s Republic of China on Preferential Tariffs and Duties for the Nationalization of Camcorders (ShuShui [1997] No.603)

It is hereby announced.



 
The General Administration of Customs
2001-12-07

 







CONSTITUTION ACT, 1982 – page 22

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