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CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ISSUING THE PROVISIONAL PROCEDURES ON THE FOREIGN EXCHANGE ADMINISTRATION IN EXPORT PROCESSING AREAS

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Issuing the Provisional Procedures on the Foreign Exchange Administration
in Export Processing Areas

HuiFa [2000] No.116

August 17, 2000

Each branch of the State Administration of Foreign Exchange (hereinafter as the SAFE in brief), Beijing and Chongqing Departments
of the SAFE, and each Chinese-funded designated foreign exchange bank:

Provisional Procedures on the Foreign Exchange Administration in Export Processing Areas have been formulated for implementation by
SAFE in accordance with the State Council’s instructions on launching export processing areas pilot project.

After receiving this Circular, each SAFE branch shall study it seriously, implement it strictly, and transmit it to each branch and
sub-branch of SAFE, foreign-funded bank and relevant unit under its jurisdiction. Each Chinese-funded designated foreign exchange
bank shall transmit it to each branch and sub-branch under its jurisdiction. Domiciled branches and sub-branches where the export
processing areas are located (hereinafter the SAFE Branches) shall formulate detailed rules for implementation to be distributed
and put into force after being reported to and approved by the SAFE. All the relevant certificates shall be independently designed
and printed by the SAFE Branches.

Any problems or questions arising in its implementation shall be reported promptly to the SAFE. Attachment:Provisional Procedures on the Foreign Exchange Administration in Export Processing Areas

Chapter I General provisions

Article 1

This set of provisional procedures has been formulated with a view to normalize the foreign exchange administration in export processing
areas, to ensure healthy foreign exchange flows, to promote export and the development of export processing areas, and to encourage
foreign investment inflows.

Article 2

Export processing areas referred to in this set of provisional procedures are the special economic areas for export processing on
the territory of the People’s Republic of China (hereinafter China) established with the approval of the State Council to be put
under closed supervision of the customs.

Article 3

The departments responsible for the foreign exchange administration are the State Administration of Foreign Exchange (hereinafter
the SAFE) and its subsidiaries.

The SAFE is responsible for formulating foreign exchange regulations in export processing areas. Domiciled branches of the SAFE where
the export processing areas are located (hereinafter the SAFE Branches) are responsible for formulating detailed rules for implementing
relevant regulations. The SAFE Branches are also responsible for supervising foreign exchange revenue and expenditure, as well as
other foreign exchange business in the export processing areas according to relevant regulations and corresponding detailed rules
for implementation.

Article 4

The “inside areas” referred to in this set of procedures are the areas inside the export processing areas, while the “outside areas”
are the areas inside China other than the export processing areas.

The “in-area entities” referred to in this set of procedures are enterprises, public institutions and other economic organizations
inside the export processing areas.

The “out-area entities” referred to in this set of procedures are enterprises, public institutions and other economic organizations
inside China other than the export processing areas.

Article 5

Foreign exchange revenue and expenditure as well as other foreign exchange business of in-area entities and individuals shall be regulated
by this set of procedures.

Article 6

All the economic transactions between in-area and out-area entities as well as individuals shall be subject to balance of payment
reporting procedures in accordance with Procedures on Reporting Balance of Payment Statistics.

Article 7

All the economic transactions between in-area and out-area entities as well as individuals shall be exempt from balance of payment
reporting procedures.

Chapter II Foreign Exchange Registration

Article 8

Within 30 days after acquiring industrial and commercial business license, in-area entities shall handle formalities of foreign exchange
registration with the SAFE Branches and fill out Registration Form of Basic Information upon the following documents:

1.

approval documents for establishment;

2.

industrial and commercial business licenses;

3.

the entity’s contracts, articles of association already approved.

The SAFE Branches, after examining and verifying the validity of the documents, shall issue a Foreign Exchange Registration Certificate
of Export Processing Areas (hereinafter the Registration Certificate) to the applicant.

The Registration Certificate shall be designed by the SAFE and printed by the SAFE Branches.

Article 9

In any case of altering name, address registered capital, and business scope, of transferring shares, and of merger and separate,
in-area entities shall handle formalities of registration alteration with the SAFE Branches by presenting the Registration Certificate
and other prescribed documents within 30 days after acquiring altered industrial and commercial business license.

Article 10

In liquidation due to closing or expiration of the business term, in-area entities shall handle formalities of nullifying foreign
exchange registration with the SAFE Branches by presenting the Registration Certificate and other prescribed documents within 30
days after the liquidation approved.

Article 11

The SAFE Branches shall inspect foreign exchange revenue and expenditure as well as other foreign exchange business of in-area entities
annually. They shall write down the inspection result in and affix a seal to the Registration Certificate.

In-area foreign-funded enterprises shall take joint annual inspection by seven ministries of the State Council. The SAFE Branches
shall inspect foreign exchange revenue and expenditure as well as other foreign exchange business of in-area foreign-funded enterprises
according to Circular on Implementing Joint Annual Inspection of Foreign-funded Enterprises and other relevant regulations.

The SAFE Branches shall inspect foreign exchange revenue and expenditure as well as other foreign exchange business of other in-area
entities in the light of the regulation on annual inspection of in-area foreign-funded enterprises.

Article 12

If they do not engage in foreign exchange business within one year after foreign exchange registration, or for a successive year,
in-area entities shall report on their own initiative to the SAFE Branches within 5 working days after the year passed. If there
are no justified reasons, the SAFE Branches shall have the power to nullify their foreign exchange registration, terminate their
qualification of relevant foreign exchange businesses, require them surrender all the foreign exchange purchased for paid-in capital,
and suggest the administration of industry and commerce nullify their business license.

Article 13

The Registration Certificate shall not be forged, altered, rented, lent, transferred, or sold to other entities.

Article 14

In-area entities, when handling formalities of foreign exchange revenue and expenditure, shall present inspected and valid Registration
Certificate and other prescribed valid certificates and commercial vouchers.

For in-area entities that have not taken or not passed the annual inspection, the SAFE Branches shall order them rectify within a
stated time. Their foreign exchange revenue and expenditure during the period of rectifying shall be verified by the SAFE Branches
case by case.

Chapter III Administration of Foreign Exchange Accounts

Article 15

In-area entities, when opening a foreign exchange account, shall acquire approval of the SAFE Branches.

Article 16

Foreign exchange accounts of in-area entities shall not be classified as settlement accounts and specialized accounts. All foreign
exchange receipts shall be deposited in a unified foreign exchange account; and all foreign exchange expenditures shall be made from
the account.

Article 17

In-area entities shall open foreign exchange accounts with in-area financial institutions in principle. In case of no in-area financial
institutions, they shall open accounts with out-area financial institutions designated by the SAFE Branches.

The SAFE Branches shall independently determinate the number of foreign exchange accounts and out-area financial institutions with
which the accounts shall be opened according to in-area entities’ operation needs and their own supervising ability.

In-area entities, if they want to open overseas foreign exchange accounts, shall conform to Procedures on the Administration of Overseas
Foreign Exchange Accounts.

Article 18

In-area entities, if they want to open foreign exchange accounts, shall first apply with the SAFE Branches by presenting application
and the Registration Certificate. They shall open accounts with the financial institutions by presenting Account-opening Notice issued
by the SAFE Branches and the Registration Certificate.

Article 19

The financial institutions, when opening foreign exchange accounts for in-area entities, shall fill in the related blanks of the Registration
Certificate with their own name, account number, currency denomination and date of opening, and affix their seal to the Registration
Certificate.

Article 20

The account-opening financial institutions, when opening foreign exchange accounts for in-area entities, shall add a “C” to the account
number to differentiate from other entities strictly.

Financial institutions shall not add a “C” to other entities’ account number.

Article 21

In-area entities, if they want to alter relevant items of the foreign exchange accounts, shall apply with the SAFE Branches by presenting
relevant documents.

Article 22

In-area entities, if they want to close a foreign exchange account, shall handle formalities of closing accounts with the SAFE Branches
by presenting the Registration Certificate and the account-closed certificate issued by account-opening financial institution within
10 days after the account closed.

In case of opening a new account after a current one closed, foreign exchange in the current one shall be transferred into the approved
new one. In case of terminating operation, foreign exchange in the accounts belonging to foreign investors shall be transferred or
remitted abroad. Those belonging to domestic investors shall be repatriated to outside areas and be disposed according to relevant
regulations.

Article 23

In-area entities shall open and use foreign exchange accounts according to this set of procedures. They shall not open foreign exchange
accounts without permission, rent or lend their foreign exchange accounts, and shall not use their accounts collecting, depositing,
or making payment in foreign exchange for other entities as well as individual either.

Chapter IV Administration of Foreign Exchange Collection, Payment, Sales and Purchases

Article 24

In-area entities’ foreign exchange revenue, except that approved by the SAFE Branches, shall be repatriated home and deposited in
their foreign exchange accounts.

Article 25

In-area entities, when they need Renminbi to pay employees’ salaries and life expenses, to pay charges for water and electricity,
and to pay administrative fees, shall apply with the SAFE Branches by presenting relevant documents. They shall sell their foreign
exchange for Renminbi to designated in-area and out-area banks by presenting the approval documents issued by the SAFE Branches.

Article 26

Overseas payments of in-area entities shall be proceeded upon valid certificates and commercial vouchers prescribed in Procedures
on the Administration of Sale, Purchase of and Payment in Foreign Exchange. In case of declaration form of imported goods required,
original record list of goods entering inside areas shall be substitution. This kind of payments except that specially prescribed
in this set of procedures shall be made without approval by or record with the SAFE Branches E.

Designated foreign exchange banks shall keep relevant certificates and vouchers on file for reference.

Article 27

In case of transporting or exporting goods to overseas, in-area entities need not to handle formalities of verification and cancellation
of export collection in foreign exchange.

In case of making payments for imports from overseas, in-area entities need not to handle formalities of verification and cancellation
of import payment in foreign exchange.

Article 28

Formalities of foreign exchange payments by in-area entities to out-area entities shall be handled by out-area entities by presenting
certificates of contracts or agreements, vouchers and etc.. The designated foreign exchange banks shall handle formalities of foreign
exchange surrender or entering into the foreign exchange accounts for the out-area entities according to this set of Procedures.

Article 29

Foreign exchange payments by out-area entities to inside areas shall be regarded as payments to overseas. They shall be made after
being verified bona bide by the designated foreign exchange banks upon relevant valid certificate and commercial vouchers prescribed
in Procedures on the Administration of Sales, Purchase of and Payment in Foreign Exchange.

Article 30

Out-area entities, when exporting goods to inside areas, shall declare at customs by presenting verification and cancellation certificate
of export collection in foreign exchange according to Procedures on the Administration of Verification and Cancellation of Export
Collection in Foreign Exchange and detailed rules for implementing it. The designated foreign exchange banks shall issue special
copy of verification and cancellation certificate of export collection in foreign exchange to the out-area entities after foreign
exchange collected. It is the out-area entities that handle formalities of verification and cancellation of export collection in
foreign exchange.

Out-area entities, when making payments to in-area entities for imported goods, shall handle formalities of verification and cancellation
of import payment in foreign exchange according to Provisional Procedures on Supervision over Verification and Cancellation of Import
Payment in Foreign Exchange and relevant regulations.

Article 31

Foreign exchange payments between in-area entities shall be made from their foreign exchange accounts upon relevant certificates of
contracts or agreements and vouchers etc.. In-area entities are not allowed to purchase foreign exchange for these payments.

Article 32

Foreign exchange payments by in-area entities to overseas and outside areas shall be made from the entities’ foreign exchange accounts.
In-area entities are not allowed to purchase foreign exchange for these payments except those specially provided in this set of procedures.

Article 33

In-area entities whose registered capital was paid in Renminbi with approval, when making foreign exchange payment to overseas or
outside areas, shall use the foreign exchange owned by themselves first. They shall apply with the SAFE Branches by presenting relevant
documents for the short part,. The documents include the Registration Certificate, approval documents for paying registered capital
in Renminbi, verification certificate of the capital contribution issued by CPA, business license, statements of all foreign exchange
accounts issued by account-opening financial institutions, and valid certificates and commercial vouchers prescribed in this set
of procedures. They shall purchase foreign exchange with paid-in capital in Renminbi from the designated foreign exchange banks upon
the approval documents issued by the SAFE Branches. The Renminbi used for purchasing foreign exchange shall not exceed paid-in capital.

Article 34

In-area entities whose products can be partly sold domestically with the approval by the Moftec or its branches and the customs, when
selling goods to outside areas, shall purchase foreign exchange by collected Renminbi from the designated foreign exchange banks
upon approval documents issued by the SAFE Branches. The approval documents shall be applied for by presenting the Registration Certificate,
approval documents for selling product domestically issued by the domiciled administration of export processing area, contracts of
sales, original declaration form of imported goods issued by the customs verifying that the buyer is located in outside areas.

When verifying purchase application for foreign exchange of in-area entities, the SAFE Branches shall stamp the original declaration
form of imported goods with “foreign exchange supplied”, and keep it for record. The SAFE Branches shall verify the original electronic
accounts of the declaration form from the verification network system for import customs declaration form and wind up the case as
in-area entities have handled formalities of verification and cancellation of import payment in foreign exchange.

Article 35

In-area entities are allowed to borrow foreign exchange from home and abroad to meet their operation need without the SAFE’s approval.
However, the borrowing shall be registered with the SAFE according to Provisional Rules on External Debts Statistics and Supervision
and detailed rules for implementing it, as well as Procedures on the Administration of Foreign Exchange Lending (on-lending) Registration.

Foreign exchange financing between in-area and out-area non-financial institutions is prohibited.

Article 36

Guarantees provided by out-area entities for in-area entities to overseas entities and individuals, out-area entities, and to other
in-area entities shall be regarded as external guarantees. They shall be subject to Procedures on the Administration of External
Guarantees by Domestic Entities and detailed rules for implementing it. In-area entities, when providing guarantees to overseas entities,
shall register the guarantee with the SAFE Branches within 15 days after the guarantee contracts being signed.

Article 37

When repaying external debts to overseas, repaying foreign exchange loans extended by out-area financial institutions, or performing
external guarantees to overseas, in-area entities shall acquire the approval from the SAFE Branches.

Article 38

In-area entities are not allowed to make overseas or our-area investment of any kind.

Article 39

In liquidation due to closing or expiration of the business term, in-area entities shall liquid all of their assets according to relevant
regulations. Assets belonging to foreign investors shall be remitted abroad according to relevant regulations. Those belonging to
domestic investors shall be repatriated to outside areas and be disposed according to relevant regulations.

Chapter V Punishments

Article 40

The SAFE Branches shall conduct regular or irregular supervision and inspection in in-area entities on their balances of foreign exchange.
As to violations of this set of procedures and other foreign exchange regulations, the SAFE Branches shall mete out punishments in
accordance with Regulations on the Foreign Exchange Administration and other relevant regulations.

Article 41

Designated foreign exchange financial institutions shall provide in-area entities with services in accordance with this set of procedures
and other foreign exchange regulations.

As to violations of this set of procedure, SAFE shall punish the designated foreign exchange financial institutions, the responsible
personnel, and directly responsible personnel-in-charge in accordance with Regulations on the Foreign Exchange Administration and
other relevant regulations.

Article 42

In case that in-area entities purchase or sell foreign exchange in violation of this set of procedures, SAFE shall nullify their Registration
Certificate and suspend their qualification of purchasing or selling foreign exchange besides above-mentioned punishments.

Chapter VI Supplementary Provisions

Article 43

Foreign exchange revenue and expenditure as well as other foreign exchange businesses of in-area entities and individuals not touched
upon in this set of procedures shall be subject to relevant foreign exchange regulations in out-areas.

Article 44

This set of procedures shall be interpreted by the SAFE Branches may formulate detailed rules for the implementation of this set of
procedures to be put into force after being reported to and approved by the SAFE.

Article 45

This set of procedures shall enter into force as of September 1, 2000.



 
The State Administration of Foreign Exchange
2000-08-17

 







ANNOUNCEMENT OF THE GENERAL ADMINISTRATION ON RELEVANT ISSUES CONCERNING THE MERGER AND DIVISION OF ENTERPRISES WITH FOREIGN INVESTMENT AND RELATED CUSTOMS ADMINISTRATION ISSUES

The General Customs Administration

Announcement of the General Administration on Relevant Issues Concerning the Merger and Division of Enterprises with Foreign Investment
and Related Customs Administration Issues

January 10, 2000

Pursuant to the Provisions on the Merger and Division of Enterprises with Foreign Investment (WaiJingMaoFaFa [1999] No.395) promulgated
as of September 23, 1999 by the Ministry of Foreign Trade and Economic Cooperation and the State Administration for Industry and
Commerce, relevant issues concerning customs administration are announced as follows:

I.

The enterprise established through merger or division, whether as a continuation of the original enterprise or as an independently
registered one, shall update its customs registration information accordingly, or re-register at the customs with the approval document
from relevant government agencies.

II.

For specific goods imported with duty exemption by the enterprise with foreign investment before the merger or division, and unsettled
bonded imports, the enterprise established through merger or division, whether as a continuation of the original enterprise(s) or
as an independently registered one, shall bear all legal obligations concerning customs supervision and regulations.

III.

It shall be decided by the customs through examination according to relevant prevailing regulations whether an enterprise established
after the merger or division shall continue to enjoy the preferential treatment of tax reduction or exemption. If the customs decides
upon a termination of such preferential treatments, the enterprise shall pay the overdue tariff and import duties for goods imported
previously with duty reduction or exemption. For specific goods imported with duty reduction or exemption whose ownership has been
transferred to the enterprise with foreign investment that shall continue to enjoy such preferential treatment, the supervision period
shall be calculated as of the date of the import.

IV.

It shall be decided by the relevant customs bureau through examination according to relevant prevailing regulations whether an enterprise
with foreign investment established through merger or division shall continue to have the operation right of bonded business. For
unsettled bonded goods imported before the merger or division, the relevant enterprise with foreign investment shall proceed with
re-export formalities, or pay the overdue import duties and import tax with valid approval documents or licenses.



 
The General Customs Administration
2000-01-10

 







AMENDMENT TO THE CRIMINAL LAW OF THE PEOPLE’S REPUBLIC OF CHINA

the Standing Committee of the People’s Congress

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

No. 27

The Amendment to the Criminal Law of the People’s Republic of China, which was adopted by the thirteenth meeting of the Standing Committee
of the Ninth People’s Congress on December 25, 1999, is hereby promulgated and shall come into force as of the date of its promulgation.

the President of the People’s Republic of China Jiang Zemin

December 25, 1999

Amendment to the Criminal Law of the People’s Republic of China

In order to punish the crime of disrupting the order of the socialist market economy and guarantee the smooth progress of construction
of socialist modernization, the criminal law is amended as follows:

1.

Subsequent to Article 162 , one article is supplemented as one clause of Article 162 : “Where anyone conceals or deliberately destroys
accounting vouchers, account books or financial accounting statements, if the circumstances are serious, he shall be sentenced to
fixed-term imprisonment of lower than five years or criminal detention, and/or be imposed a fine not less than 20,000 yuan but not
more than 200,000 yuan.

Where an entity commits the crime as mentioned in the preceding paragraph, it shall be imposed a fine, and the liable person who is
directly in charge or other persons who are directly responsible for the offence shall be punished according to the preceding paragraph.”

2.

Article 168 of the Criminal Law is amended as: “Where an employee of a state-owned company or enterprise is seriously irresponsible
or misuses his authorities, and causes bankruptcy or serious losses to the state-owned company or enterprise, which thus results
in heavy losses to the interests of the state, he shall be sentenced to fixed-term imprisonment of not more than three years or criminal
detention; where the losses to the interests of the state are extremely heavy, he shall be sentenced to fix-term imprisonment of
not less than three years but not more than seven years. Where an employee of a state-owned institution commits the crime as mentioned
in the preceding paragraph, and thus results in heavy losses to the interests of the state, he shall be punished according to the
preceding paragraph.

Where an employee of a state-owned company, enterprise or institution practises favouritism and embezzlement and commits the crimes
as mentioned in the preceding two paragraphs, he shall be given a heavier punishment according to the first paragraph of this article.”

3.

Article 174 of the Criminal Law is amended as: “Where anyone establishes, without the approval of relevant competent departments
of the state, commercial banks, securities exchanges, futures exchanges, securities companies, futures brokering companies, insurance
companies or other financial institutions, he shall be sentenced to fixed-term imprisonment of not more than three years or criminal
detention, and/or shall be imposed a fine of not less than 20,000 yuan but not more than 200,000 yuan; if the circumstances are serious,
he shall be sentenced to fix-term imprisonment of not less than three years but not more than ten years, and/or shall be imposed
a fine of not less than 50,000 yuan but not more than 500,000 yuan.

Where anyone forges, alters or transfers the permit for operation or other approval documents of a commercial bank, securities exchange,
futures exchange, securities company, futures brokering company, insurance company or other financial institutions, he shall be punished
according to the preceding paragraph.

Where an entity commits the crimes as mentioned in the preceding two paragraphs, it shall be imposed a fine, and the liable person
who is directly in charge or other persons who are directly responsible for the offence shall be punished according to the first
paragraph of this article.

4.

Article 180 of the Criminal Law is amended as: “Where anyone, who knows the inside information on any exchange of securities or futures
or illegally obtains such information, prior to the publication of the information that concerns the issuance of securities or the
exchange of securities or futures or has vital influence on the exchange price, buys or sells the very securities, undertakes futures
exchanges related to such inside information or divulges the information, shall, if the circumstances are serious, be sentenced to
fixed-term imprisonment of not more than five years or criminal detention, and/or be imposed a fine of not less than one time but
not more than five times of the illegal gains; if the circumstances are extremely serious, he shall be sentenced to fixed-term imprisonment
of not less than five years but not more than 10 years and shall also be imposed a fine of not less than one time but not more than
five times of the illegal gains.

Where an entity commits the crime as mentioned in the preceding paragraph, it shall be imposed a fine, and the liable person who is
directly in charge or other persons who are directly responsible for the offence shall be sentenced to fix-term imprisonment of not
more than five years or criminal detention.

The range of inside information and the insiders shall be formulated in accordance with the laws and administrative regulations.”

5.

Article 181 of the Criminal Law is amended as: “Whoever fabricates and spreads false information to adversely affect stock or futures
exchange transactions, disrupt the securities or futures exchange market and thus results in serious consequences, he shall be sentenced
to fixed-term imprisonment of not more than five years or criminal detention, and/or be imposed a fine of not less than 10,000 yuan
but not more than 100,000 yuan.

Where any employee of a stock exchange, futures exchange, securities company or futures brokering company or any member of a securities
association or futures association or department for the administration of securities or futures deliberately provides false information
or forges, alters or destroys transaction records in order to deceive investors into buying or selling securities or futures contracts
and thus serious consequences are resulted, he shall be sentenced to fixed-term imprisonment of not more than five years or criminal
detention, and/or shall be imposed a fine of not less than 10,000 yuan but not more than 100,000 yuan; if the circumstances are extremely
serious, he shall be sentenced to fixed-term imprisonment of not lower than five years but not more than 10 years, and/or shall be
imposed a fine of not less than 20,000 yuan but not more than 200,000 yuan.

Where an entity commits the crimes as mentioned in the preceding two paragraphs, it shall be imposed a fine, and the liable person
who is directly in charge or other persons who are directly responsible for the crime shall be sentenced to fix-term imprisonment
of not more than five years or criminal detention.”

6.

Article 182 of the Criminal Law is amended as: “Where anyone commits any of the following acts by manipulating the prices of securities
or futures in order to obtain unwarrantable profits or transfer risks shall, if the circumstances are serious, be sentenced to fixed-term
imprisonment of not more than five years or criminal detention, and/or shall be imposed a fine of not less than one time but not
more than five times of the illegal gains:

(1)

manipulating the prices of securities or futures alone or together with other persons by concluding the exchanges jointly or continuously
through a mustering superiority in the holding of funds, shares or futures storage or the inside information;

(2)

affecting the prices of securities or futures or the volume of securities or futures exchanges by colluding with another and carrying
out securities or futures exchanges between themselves at a time, price or in a manner previously agreed upon, or buying or selling
between themselves the securities they do not hold;

(3)

affecting the prices of securities or futures or the volume of securities or futures exchanges by taking himself as the counterpart
of exchange and trading in stocks with himself without transferring the ownership of the securities or trading in the futures contracts;
or

(4)

manipulating the prices of securities or futures by other means.

Where an entity commits any of the crimes as mentioned in the preceding paragraph, it shall be imposed a fine, and the liable person
who is directly in charge and other persons who are directly responsible for the crime shall be sentenced to fixed-term imprisonment
of not more than five years or criminal detention.”

7.

Article 185 of the Criminal Law is amended as: “Where any employee of a commercial bank, securities exchange, futures exchange, securities
company, futures brokering company, insurance company or any other banking institution, by taking advantage of his position, embezzles
money belonging to the entity or any client, he shall be convicted and punished according to Article 272 of this Law.

Where any employee of a State-owned commercial bank, stock exchange, futures exchange, securities company, futures brokering company,
insurance company or other banking institutions, or any person who is assigned by a state-owned commercial bank, stock exchange,
futures exchange, securities company, futures brokering company, insurance company or other banking institutions to an institution
that is not owned by the state to engage in public service, commits the crime as mentioned in the preceding paragraph, he shall be
convicted and punished according to the provisions in Article 384 of this Law.

8.

A clause is supplemented to Article 225 as the third clause: “without permission of the competent departments of the state, engaging
in the business of securities, futures or insurance.” The third clause of the original Law shall be changed accordingly as the fourth
clause.

9.

This amendment shall come into force as of the date of its promulgation.



 
the Standing Committee of the People’s Congress
1999-12-25

 







DONATIONS FOR PUBLIC WELFARE LAW

Law of the People’s Republic of China on Donations for Public Welfare

(Adopted at the 10th Meeting of the Standing Committee of the Ninth National People’s Congress on June 28, 1999 and
promulgated by Order No. 19 of the President of the People’s Republic of China on June 28, 1999) 

Contents 

Chapter I    General Provisions 

Chapter II   Making and Accepting a Donation 

Chapter III  Use and Control of Property donated 

Chapter IV   Preferential Measures 

Chapter V    Legal Responsibility 

Chapter VI   Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted for the purpose of encouraging donating, regulating the making and accepting of a donation, protecting
the lawful rights and interests of the donor, donee and beneficiary and promoting the development of public welfare undertakings. 

Article 2  This Law shall be applicable where any natural person, legal person or organization, for the benefit of public welfare,
voluntarily donates property gratis to any legally formed community public welfare organization or nonprofit public welfare institution. 

Article 3  For purposes of this Law, the term “public welfare” includes the following nonprofit activities: 

(1) activities by community groups or individuals in disaster relief or poverty relief, or in giving assistance to the disabled; 

(2) educational, scientific, cultural, public health and sports services; 

(3) environmental protection and public utility construction; and 

(4) other public and welfare services to promote social development and progress. 

Article 4  Donation shall be made voluntarily and gratis. Any allocation of donations by compulsion or in disguised form shall
be prohibited and no profit-making activity may be conducted in the name of donation. 

Article 5  The donor’s wishes for the use of property donated shall be respected and such property shall be used in conformity
with public welfare purposes and may not be used for any other purposes. 

Article 6  Donation shall be made in compliance with laws and regulations, not against the code of social conduct, nor to the
detriment of public interests and the lawful rights and interests of other. 

Article 7  The property donated to community public welfare organizations and its added value are public property and shall
be protected by State laws. No unit or individual may seize, misappropriate or damage it. 

Article 8  The State promotes the development of public welfare undertakings, and it supports and gives preferential treatment
to community public welfare organizations and nonprofit public welfare institutions. 

The State encourages natural persons, legal persons or organizations to donate to public welfare. 

Any natural person, legal person or organization that makes prominent contribution to donation for public welfare shall be cited
by the people’s government or the department concerned. The donor shall be consulted before he is cited in. 

Chapter II 

Making and Accepting a Donation 

Article 9  Any natural person, legal person or organization may choose the community public welfare organizations or nonprofit
public welfare institutions which he/it thinks conforms to his/its wishes of donation. The property donated shall be the lawful property
which he/it has the right to dispose of. 

Article 10  Any community public welfare organization or nonprofit public welfare institution may accept donations in accordance
with this Law. 

For the purposes of this Law, the term “community public welfare organizations” refers to foundations or charities and other community
organizations which are formed in accordance with law and for the purposes of promoting public welfare services. 

The term “nonprofit public welfare institutions” refers to institutions of education, scientific research, medicine and public health,
public culture, public sports and public welfare services, etc., which are formed in accordance with law and engaged in public welfare
services with no profit-making purposes. 

Article 11  When natural disaster occurs or a donor from outside China requests that the people’s government at or above the
county level or one of its departments be the donee, the said people’s government or the department may accept the donation, and
it shall control the property donated in accordance with the relevant provisions in this Law. 

The people’s government at or above the county level or its department may transmit the donated property to a community public welfare
organization or a nonprofit public welfare institution; or it may also distribute the property or use it to set up public welfare
establishments according to the donor’s wishes; however, it may not be the beneficiary itself. 

Article 12  The donor may conclude a donation agreement with the donee on matters of the type, quality, quantity and purpose
of use of the property to be donated. The donor shall have the right to decide on the quantity, purpose of use and form of donation. 

The donor shall fulfill the donation agreement in accordance with law, and send the property donated to the donee within the time
limit and in the form specified in the donation agreement. 

Article 13  Any donor who donates property for building a public welfare project shall conclude a donation agreement with the
donee on matters of funding, construction, management and use of the project. 

The donee shall, in accordance with relevant State regulations, be responsible for going through the formalities of examination and
approval for the donated public welfare project and for making arrangements for construction, or the construction may be arranged
jointly by the donee and the donor. The quality of the construction project shall meet the national standard. 

Upon completion of the donated public welfare project, the donee shall inform the donor of the construction, use of the funds and
checking and acceptance of the construction quality. 

Article 14  The donor may have his name inscribed on the project donated for public welfare. The donor may propose a post_title for
a project which he himself donates or the bulk of the funds for the construction of which is provided by him, and the post_title shall
be submitted to the people’s government at or above the county level for approval. 

Article  15  Where the property is donated by a donor from outside China, the donee shall be responsible for going through
the customs formalities according to relevant State regulations. If what is donated is under the control of the license system, the
donee shall be responsible for applying for license in accordance with relevant State regulations, and the customs shall, on the
basis of the license, let it pass after inspection and exercise supervision over it. 

Where an overseas Chinese makes donation into China, the department in charge of overseas Chinese affairs under the people’s government
at or above the county level may assist in going through the customs formalities and help the donor put into effect the donated project. 

Chapter III 

Use and Control of Donated Property 

Article 16  When a donee receives a donation, he shall give the donor a lawful and valid receipt, keep a register of the donation
and take good care of it. 

Article 17  Community public welfare organizations shall use the donated property to fund activities or undertakings that conform
to their aims. They shall, without delay, distribute the property donated for disaster relief. The amount of funds allocated annually
by foundations for public welfare shall be no less than the proportion fixed by the State. 

All community public welfare organization shall strictly observe relevant regulations of the State and, in adherence to the principles
of lawfulness, safety and effectiveness, maintain and add value to the property donated in an active way. 

The nonprofit public welfare institutions shall use the property donated to them to promote the public welfare services of their
own units and may not use it for any other purpose. 

Where the property donated is not preservable or transportable or exceeds the actual need, the donee may sell it, and all the income
therefrom shall be used for purposes as designed by donation. 

Article 18  Where the donee has concluded a donation agreement with the donor, he shall use the donated property according to
the purpose of use prescribed in the agreement and may not alter the said purpose of use without authorization. Where such alteration
is actually needed, he shall seek permission from the donor. 

Article 19  The donee shall, in accordance with relevant State regulations, set up a sound financial and accounting system and
the system for the use of the property donated in order to keep the donated property under strict control. 

Article 20  The donee shall be subjected to supervision by the relevant government department, submitting to it a report annually
on the use and control of the donated property. When necessary, the said department may examine the donee’s accounts. 

The customs shall, in accordance with law, exercise supervision and control over the donated goods or materials that are granted
duty deduction or exemption. 

The department in charge of overseas Chinese affairs under the people’s government at or above the county level may participate in
supervising the use and control of the property donated to China by overseas Chinese. 

Article 21  The donor shall have the right to inquire of the donee about the use and control of the donated property and put
forward his comments and suggestions. The donee shall give truthful answers to the donor’s inquiries. 

Article 22  The donee shall be subjected to public supervision, making public the donations received and the use and control
of the donated property. 

Article 23  All community public welfare organizations shall practise strict economy to reduce managerial cost and the salaries
of the staff members and the overhead expenses shall be covered by interest and other incomes according to the standards set by the
State. 

Chapter IV 

Preferential Measures 

Article 24  Any company or any other enterprise which, in accordance with this Law, donates property for public welfare, shall,
in accordance with the provisions of the laws and administrative rules and regulations, enjoy preferential treatment in income tax
levied on enterprises. 

Article 25  Any natural person or any self-employed individual in industry or commerce who, in accordance with this Law, donates
property for public welfare shall, in accordance with the provisions of the laws and administrative rules and regulations, enjoy
preferential treatment in individual income tax. 

Article 26  Customs duties and value added taxes levied on imported goods and materials which are donated for public welfare
to community public welfare organizations and nonprofit public welfare institutions shall, in accordance with the provisions of the
laws and administrative rules and regulations, be reduced or exempted. 

Article 27  Local governments shall support and give preferential treatment to donated projects. 

Chapter V 

Legal Responsibility 

Article 28  Any donee who, without permission of the donor, alternates the nature or purpose of use of the property donated,
shall be ordered to put it right and given disciplinary warning by the relevant department under the people’s government at or above
the county level. Where such donee refuses to put it right, the people’s government at or above the county level shall, after consulting
the donor, put the property under the control of a community public welfare organization or a nonprofit public welfare institution
whose aim is the same or similar to that of the said donee. 

Article 29  Whoever misappropriates, seizes or embezzles donated money or property shall be ordered to return the said money
or property and be fined by the relevant department under the people’s government at or above the county level. The person who is
directly responsible shall be dealt with in accordance with relevant regulations by the unit he belongs to. If a crime is constituted,
the person shall be investigated for criminal responsibility in accordance with law. 

The said money or property recovered in accordance with the provisions in the previous paragraph shall be used for the previous aim
and purpose previously designed. 

Article 30  In donation activities, any of the following acts shall be punished in accordance with the relevant provisions in
laws and regulations, and if a crime is constituted, criminal responsibility shall be investigated in accordance with law: 

(1) evading foreign exchange or purchasing foreign exchange by fraud; 

(2) evading tax; 

(3) smuggling; or 

(4) without permission of the customs or without payment of the amount of tax overdue, selling, assigning or using for other purposes
in China donated goods or materials the import duties on which are reduced or exempted. 

Article 31 Where a staff member of the donee unit abuses his power, neglects his duty or engages in malpractice for personal gain
and thus causes heavy losses to the property donated, he shall be dealt with in accordance with relevant regulations by the unit
he belongs to. If a crime is constituted, he shall be investigated for criminal responsibility in accordance with law. 

Chapter VI 

Supplementary Provisions 

Article 32  This Law shall go into effect as of September 1, 1999.

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







IMPLEMENTATION PLAN ON REFORMING THE SUPERVISION AND MANAGEMENT SYSTEM OF SAFETY ON WATER

Category  COMMUNICATIONS AND TRANSPORTATION Organ of Promulgation  The General Office of the State Council Status of Effect  In Force
Date of Promulgation  1999-06-05 Effective Date  1999-06-05  


Implementation Plan on Reforming the Supervision and Management System of Safety on Water

(Proposed by Ministry of Communications on May 20th 1999, transmitted by the General Office of the State Council, GOSC File No. 54 [1999] on June 5th 1999)

    In accordance with the requirements for furthering administrative system reform and strengthening law enforcement
and supervision authorities proposed by the Party’s fifteenth national congress, in order to harmonize and perfect the supervision
and management system of safety on water, enable the supervisory authorities of safety on water to perform more effectively their
functions of supervising and managing safety on water, preventing vessel pollution, inspecting ship and marine facilities, and guaranteeing
navigation, further meet the needs of developing socialist market economy, pursuant to the spirit in (issued by GOSC File No. 67 [1998], hereinafter referred to as “GOSC file 67”) and (GOSC Letter No. 48 [1998]), the implementation plan on reform in the supervision and management system of safety on water: is proposed
as follows:

    I. Guidelines

    The reform in the supervision and management system of safety on water shall insist on the principle of “simplified,
uniform and effective”.  Under a uniform leadership system, the work division between central and local authorities of
relevant water area shall be clearly defined, and the method of “one water area, one supervisor; one harbor, one supervisor” shall
be adopted.  In the same water area, the same harbor or the same region, repetitive establishment of supervision and management
authorities of safety on water is prohibited.  By reform, among the supervision and management authorities, relationships
shall be further harmonized, functions shall be clarified, policies, layouts and this work shall be unified.  Gradually
a new supervision and management system of safety on water which is suitable to the socialist market economy system, with division
in duties, running well, standardizing in conduct, highly efficient in working and uniform in law enforcement, shall be set up.

    II. Definition of water areas under central management

    The GOSC file 67 provides that the supervisory work of safety on water in coastal sea (including islands)
areas and harbors, opened water areas, and main internal river arteries crossing provinces, autonomous regions or municipalities
directly under central authority (Yangtze river, Pearl river, and Heilongjiang river) and harbors (hereinafter referred to as “Water
areas under central management”) shall be uniformly led by the Ministry of Communications.  To further define the division
of work between central and local authorities in the supervision and management of safety on water, the water areas under central
management are defined as follows:

    (a) The coastal sea (including island) areas and harbors refer to the entire sea areas within state jurisdiction
at the coastal areas (including island) of China, from the estuary of Yalu river of Liaoning province in the north to the estuary
of Beilun river of Guangxi province in the south, and the water areas where all the wharves, loading and unloading areas and operation
sites of coastal harbors being located (including the water area of first harbor at estuary of river joining the sea and the downstream
water area thereof).

    (b) The opened water areas refer to the opened coastal, internal river harbor water areas, and inland navigation
water areas and the opened harbors where international vessel can navigate and reach.  All of these water areas shall be
approved in accordance with relevant state stipulations.

    (c) The main internal river arteries crossing provinces, autonomous regions or municipalities directly under
central authority (Yangtze river, Pearl river, and Heilongjiang river) and harbors refer to the Yangtze artery water area and the
estuary water areas of artery and tributary intersection and harbors from Yibin of Sichuan to Shanghai; Pearl river (West river)
main artery water areas and the estuary water areas of artery and tributary intersection and harbors from Nanning of Guangxi and
thereafter the West river artery, Liuzhou of Guangxi and thereafter the Liu river artery to the main estuaries in Guangdong; the
water areas of Heilongjiang river artery and tributaries and harbors from Heishantou of Inner-Mongolia, Daan of Jilin and thereafter.  The
estuary water areas of artery and tributary intersection refer to the water areas where all the wharves, loading and unloading areas
and operation sites of harbors have been set up at such intersection location; the water areas without harbors refer to the water
areas of such intersection which are closely connected with the navigation order of artery.

    The governments of provinces, autonomous regions and municipalities directly under central authority shall
be responsible for the supervisory work of safety on water of internal rivers, lakes, reservoirs and others which are under central
management (hereinafter referred to “other water areas”).

    III.  Basic principles on authorities transfer and consolidation

    (a) The Ministry of Communications shall set up a specialized authority to exercise the supervisory work of
safety on water within water areas under central management. In order to ensure the continuity and consistency of the supervisory
work of safety on water, and avoid repetitive establishment of authorities, according to the method of “one water area ,one supervisor”
and “one harbor ,one supervisor”, the local supervisory authorities of safety on water defined as performing supervisory duties of
safety on water within water areas under central management shall all be transferred to central supervisory authorities of safety
on water; if central supervisory authorities of safety on water have already existed in the region, the authorities shall be consolidated
and then be led by the Ministry of Communications.

    (b) Due to over dispersion or narrowness of any other water areas, the local people’s government has difficulty
in  setting up  supervision authority to manage, and the relevant people’s government of province, autonomous
region or municipality directly under central authority proposes the supervisory work of safety on water y of such water area be
managed by the Ministry of Communications, both parties may decide this matter through consultation; if the Ministry of Communications
intends to entrust relevant people’s government of province, autonomous region or municipality directly under central authority to
assume the management of the upstream reach or seasonal navigable reach of partial internal river arteries crossing provinces, autonomous
regions or municipalities directly under central authority as well as harbors and other water areas under central management, both
parties may also decide this matter through consultation.

    (c) During the authorities transfer and consolidation, the personnel transfer must be carried out according
to the registration record on June 18th 1998.  In case of joint office with transportation management, waterway management
and other authorities, the personnel engaging in supervisory activities of safety on water shall be transferred entirely in principle,
and the general management personnel and the retiree shall be transferred according to the ratio of the personnel engaging in supervisory
activities of safety on water to the total operating personnel.

    (d) After the local supervisory authority of safety on water within water areas under central management has
been transferred to the management of the Ministry of Communications, its revenue from stipulated fees shall be transferred simultaneously
to the management of the Ministry of Communications, and the detailed management measures shall be studied and formulated separately
by the Ministry of Finance and the Ministry of Communications.  After the reform, if the funds for operational expenses
of the supervisory authority of safety on water under local management are affected, a part of the stipulated fees transferred may
be refunded. The refund ratio and amount shall be determined by the Marine Bureau of the People’s Republic of China (the Marine Bureau
of the Ministry of Communications) in consultation with the Ministry of Finance, pursuant to the ratio of the amount of stipulated
fees actually paid in 1998 by all transferred units of the province, autonomous region or municipality directly under central authority
to the supervisory authority of safety on water under local management after the reform as opposed to the total revenue from stipulated
fees of all transferred units. The method of such refund shall be studied and determined separately by the Ministry of Finance and
the Ministry of Communications.

    (e) The state-owned assets (including land, office building, employee dormitory and facility, equipment and
vehicle for supervision and management) of the local supervisory authority of safety on water transferred to the management of Ministry
of Communications shall be transferred on the basis of the audited final account in year 1998 without compensation.  All
debts and claims shall be transferred jointly.  For authority by entire organizational transfer, the assets shall be transferred
in entirety; for authority by partial transfer, the assets shall be determined pursuant to the ratio of the number of actually transferred
employees to the number of employees of the original authority and be transferred without compensation  The procedures
shall follow relevant regulations on assets transfer and others .

    (f) The problems of the relevant investment channels on the basic construction projects in construction or
having been filed of the transferred or consolidated supervisory authority of safety on water shall be resolved by the Ministry of
Communications with relevant local people’s government through consultation.

    IV. Operation management and authority establishment

    (a) The Marine Bureau of the People’s Republic of China (the Marine Bureau of the Ministry of Communications)
leads the supervisory work of safety on water throughout the country.  The central supervisory authorities of safety on
water set within water areas under central management and the local supervisory authorities of safety on water set within other water
areas shall respectively conduct supervisory work of safety on water within water areas subject to their jurisdictions.

    (b) The establishment of central supervisory authority of safety on water and cadre management

    According to the natural pattern of shipping economy and the characteristics of shipping, with overall consideration
of the harbor layout and administrative division, pursuant to the principle of “uniform, highly efficient, responsible separately
at different levels “, the authorities directly under the Ministry of Communications shall be established in main harbor cities or
center cities within the developed shipping regions.  The authorities shall be responsible for the supervisory work of
safety on water within water areas subject to their jurisdictions. The establishment of specific authority shall be reported and
approved separately in accordance with stipulated procedures.  The cadre management of leaders of the authorities directly
under the Ministry of Communications shall be conducted mainly by the Ministry of Communications.  When the Ministry of
Communications appoints or removes the main leaders of such authority, the local opinions shall be asked.

    Two-line management in income and expenditure shall be applied to the administrative charges and revenues
from fines and confiscations of the central supervisory authority of safety on water.

    (c) The establishment of local supervisory authorities of safety on water

    The people’s governments of provinces, autonomous regions and municipalities directly under central authority
shall set up authorities to manage the supervisory work of safety on water  within other water areas.  The local
supervisory authorities of safety on water shall be led by the competent administrative authorities in communications of provinces,
autonomous regions and municipalities directly under central authority, and shall execute their duties within water areas subject
to their jurisdictions pursuant to authorized operation scope, in accordance with relevant provisions of regulations and rules on
water safety supervision stipulated by the state and the Ministry of Communications.  The names of the local supervisory
authorities of safety on water  shall be standardized uniformly by the Ministry of Communications.

    V. The organization and implementation of the reform

    The reform in the supervision and management system of safety on water, under the direction of Office of Central
Authority Establishment Commission, shall be organized and implemented by the Ministry of Communications and the relevant people’s
governments of provinces, autonomous regions and municipalities directly under central authority.  The Ministry of Communications
and the relevant people’s governments of provinces, autonomous regions and municipalities directly under central authority shall
organize a specialized group responsible for this work.  They shall insist on guideline of “active and safe”, deploy carefully,
organize elaborately, deal well with problems in various aspects, maintain normal work order, guarantee the entirety of state-owned
assets and ensure the reform running smoothly.

    To be propitious to the transfer and consolidation work of supervisory authorities of water security, the
Ministry of Communications shall sign agreement respectively with relevant people’s governments of provinces, autonomous regions
and municipalities directly under central authority in accordance with the reform plan, and form joint workgroups responsible for
conducting concrete matters in authority transfer and consolidation.

    The transfer and consolidation of supervisory authorities of safety on water shall be implemented in steps
pursuant to the order of “sea first, river second”. The transfer and consolidation work of supervisory authorities of safety on water
in coastal provinces, autonomous regions and municipalities shall be completed before October 1st 1999; the transfer and consolidation
work of supervisory authorities of safety on water in provinces, autonomous regions and municipalities along Yangtze river or Heilongjiang
river shall be completed before the end of year 1999; the people’s governments of provinces, autonomous regions and municipalities
directly under central authority shall, according to the condition of local organization reform, make overall arrangements for the
setup of local supervisory authorities of safety on water and other work.






FIRE PREVENTION LAW

Category  PUBLIC SECURITY Organ of Promulgation  The Standing Committee of the National People’s Congress Status of Effect  In Force
Date of Promulgation  1998-04-29 Effective Date  1998-09-01  


Fire Prevention Law of the People’s Republic of China

Contents
Chapter I  General Provisions
Chapter II  Fire Prevention
Chapter III  Fire Fighting Organizations
Chapter IV  Fire Extinguishment and Rescue
Chapter V  Legal Liability
Chapter VI  Supplementary Provision

(Adopted at the Second Meeting of the Standing Committee of the Ninth

National People’s Congress on April 29, 1998 and promulgated by Order No. 4
of the President of the People’s Republic of China on April 29, 1998)
Contents

    Chapter I  General Provisions

    Chapter II  Fire Prevention

    Chapter III  Fire Fighting Organizations

    Chapter IV  Fire Extinguishment and Rescue

    Chapter V  Legal Liability

    Chapter VI  Supplementary Provision
Chapter I  General Provisions

    Article 1  This Law is enacted with a view to preventing fire and
reducing fire damage, protecting the safety of citizens and the safety of
public property and the property of citizens, maintaining public security
and ensuring the smooth carrying out of the socialist modernization.

    Article 2  The policy of prevention first and combination of fire
prevention and fire fighting should be implemented in fire prevention,
the principle of combination of specialized organs and masses shall be
adhered to and the fire prevention safety responsibility system shall be
practised.

    Article 3  Fire prevention work shall be under the leadership of the
State Council and the responsibility of local people’s governments at all
levels. People’s governments at all levels should integrate fire prevention
work into the national economic and social development plans and ensure that
fire prevention work adapts to economic construction and social development.

    Article 4  The department of public security under the State Council
exercises supervision and administration over fire prevention work
nationwide. Public security organs of local people’s governments at and
above the county level exercise supervision and administration over fire
prevention work within their respective administrative areas and the fire
fighting organs of public security organs of people’s governments at the
corresponding levels shall be responsible for the implementation. Fire
prevention work of military installations, underground portions of mines
and nuclear power plants shall be under the supervision and administration
of the units in charge of them.

    In case of separate provisions under laws and administrative regulations
governing fire prevention work of forests and prairies, those provisions
shall be observed.

    Article 5  All units and individuals have the obligation to maintain
fire prevention safety, protect fire-fighting installations, prevent fire
and report fire alarms. All units and adult citizens have the obligation
to participate in organized fire-fighting work.

    Article 6  People’s governments at all levels should regularly conduct
fire prevention publicity and education to raise citizens’ fire prevention
awareness.

    Competent administrative departments of education, labour and others
should integrate fire prevention know-how into contents of teaching and
training.

    Press, publications, broadcasting, film, television and other competent
departments concerned have the obligation to conduct fire prevention safety
publicity and education.

    Article 7  Units and individuals having made outstanding contribution or
prominent achievements in fire prevention work should be rewarded.
Chapter II  Fire Prevention

    Article 8  Municipal people’s governments should integrate fire-fighting
planning including fire-fighting safety layout, fire brigades, fire-fighting
water supply, fire-fighting communications, passages for fire engines,
fire-fighting equipment and other contents into overall city planning and be
responsible for organizing competent departments concerned in implementation.
Where there are inadequacies in public fire-fighting installations and
fire-fighting equipment or they are not in a position to cope with actual
requirements, there should be additional construction, reconstruction,
deployment or technical transformation.

    Scientific research should be stepped up in fire prevention work and
advanced fire prevention technology and fire-fighting equipment shall be
extended and used.

    Article 9  Plants, warehouses and special-purpose railway stations
and wharves producing, storing, loading and unloading inflammable or explosive
hazardous goods must be located on the fringe of cities or in relatively
independent safe belts. Filling stations, supply stations and pressure
regulating stations of inflammable or explosive gases or liquids should be
located in rational positions in line with the requirements for fire
prevention and explosion prevention.

    For original plants, warehouses and special-purpose railway stations and
wharves producing, storing, loading and unloading inflammable or explosive
hazardous goods, and original filling stations, supply stations and
pressure regulating stations of inflammable or explosive gases or liquids not
in line with the provisions of the preceding paragraph, the units concerned
should take measures to resolve the problems within the specified time period.

    Article 10  For a construction project the fire prevention design of which
to be worked out pursuant to the state technical standards for fire
prevention of engineering construction, the design unit should do the design
pursuant to the state technical standards for fire prevention of engineering
construction, and the construction unit should submit the blueprints and
relevant information of fire prevention design of the construction project to
the public security fire-fighting department for examination and verification;
for a construction project without undergoing examination and verification or
failing to qualify upon examination and verification, the competent
administrative department of construction must not issue the construction
permit and the construction unit must not proceed with the construction.

    The fire prevention design of a construction project examined and
verified by the public security fire-fighting department that necessitates
changes should be submitted to the original examining and verifying public
security fire-fighting department for verification and approval; no unit or
individual shall effect any change without verification and approval.

    At the time of completion of a construction project the fire prevention
design of which is worked out pursuant to the state technical standards for
fire prevention of engineering construction, acceptance checks for fire
prevention must be carried out by a public security fire-fighting department;
a project without completing acceptance checks or failing to qualify in
acceptance checks must not be put into use.

    Article 11  Fire-prevention characteristics of construction structural
components and construction materials must conform to state standards or
trade standards.

    Public places in which non-inflammable and hard-to-burn materials should
be used for their interior fixture and decoration pursuant to the stipulations
of state technical standards for fire prevention of engineering construction
must select the materials that have passed the inspection by an inspection
agency determined pursuant to the provisions of the Product Quality Law.

    Article 12  Public gathering places such as song and dance halls,
cinemas and theatres, guest houses, hotels, markets and country fairs
should, prior to going into operation or opening for business, submit an
application to the local public security fire-fighting department and may go
into operation or open for business upon passing the fire prevention safety
inspection.

    Article 13  For holding of activities of a mass character such as
large gatherings, evening parties with fireworks and lantern parties with
danger of fire, sponsoring units should work out contingency plans for
fire-fighting and emergency evacuation with fire prevention safety measures
in place, submit an application to the public security fire-fighting
department and may hold such activities only upon passing the fire
prevention safety inspection of the sites of the activities by the public
security fire-fighting department.

    Article 14  Organs, societies, enterprises and institutions should
fulfil the following fire prevention safety responsibilities:

    (1) working out fire prevention safety rules and fire prevention safety
operational procedures;

    (2) practising the fire prevention safety responsibility system and
determining the responsible persons for fire prevention safety of the
units and their subordinate departments and positions;

    (3) conducting fire prevention publicity and education among workers
and staff members in the light of the characteristics of the units;

    (4) organizing fire prevention inspection to remove the hidden peril
of fire in time;

    (5) deploying fire-fighting facilities and equipment, putting up fire
prevention safety signs pursuant to relevant state provisions, and
organizing inspection and maintenance at regular intervals to ensure that
fire-fighting facilities and equipment are in perfect condition and
effective;

    (6) ensuring that evacuation channels and safety exits are unblocked
and putting up signs for fire prevention safety evacuation in keeping with
the state provisions;

    Management units of residential areas for inhabitants should, pursuant
to the relevant provisions of the preceding paragraph, fulfil fire prevention
safety responsibilities and do a good job in fire prevention safety work in
residential areas.

    Article 15  Collective dormitories for workers must not be located in
buildings with workshops and warehouses therein.

    Collective dormitories for workers already located in buildings with
workshops or warehouses therein should be resolved within the specified
time period. Where there are actual temporary difficulties, necessary
fire prevention safety measures should be taken and the dormitories may
continue to be used upon approval of the public security fire-fighting
department.

    Article 16  Fire-fighting departments of public security organs of local
people’s governments at or above the county level should determine the units
that have greater probability of outbreak of fire and that may suffer major
casualties or major losses of property in case of fire as key units for fire
prevention safety within their respective administrative areas and submit the
same to the people’s governments at the corresponding levels for the record.

    Key units for fire prevention safety should, in addition to performance
of the responsibilities prescribed in Article 14 of this Law, fulfil the
following fire prevention safety responsibilities:

    (1) establishing fire prevention files, determining key positions in
fire prevention safety, putting up fire prevention signs and exercising
strict control;

    (2) carrying out daily fire prevention patrol and inspection and
establishing patrol and inspection records;

    (3) conducting fire prevention safety training among workers and staff
members; and

    (4) formulating contingency plans for fire-fighting and emergency
evacuation, and organizing fire-fighting exercises at regular intervals.

    Article 17  Units and individuals that produce, store, transport and
sell or use and destroy inflammable or explosive hazardous goods must
observe the relevant state provisions for fire prevention safety.

    Units that produce inflammable or explosive hazardous goods should
enclose with the products directions indicating such data as the ignition
point, flash point and explosion limit and annotate points for attention in
fire prevention and explosion prevention. Independently packed inflammable
or explosive hazardous goods should be stuck and enclosed with hazardous
goods labels.

    Relevant state provisions for fire prevention safety must be observed
in entering sites producing and storing inflammable or explosive hazardous
goods. It is prohibited to bring kindling material along in entering sites
producing and storing inflammable or explosive hazardous goods. It is
prohibited to bring inflammable or explosive hazardous goods illegally
into public places or on board public transports.

    Relevant state provisions for fire prevention safety must be observed
in the management of warehouses storing inflammable materials.

    Article 18  Use of open fire in sites with peril of fire and explosion
is prohibited; in case of extraordinary circumstances that necessitate the
use of open fire in operations, formalities of examination and approval
should be completed in advance pursuant to provisions. Operators should
adhere to fire prevention safety rules and adopt corresponding fire
prevention safety measures.

    Operators of electric welding and gas welding with peril of fire and
operators of automatic fire-fighting systems must take up their positions
with a qualification certificate and strictly adhere to operational
procedures for fire prevention safety.

    Article 19  Quality of fire-fighting products must meet state standards
or trade standards. It is prohibited to produce, sell or use the fire-fighting
products without passing inspection by inspection agencies determined pursuant
to the provisions of the Product Quality Law.

    It is prohibited to use parts or fire-extinguishing chemicals that
fail to meet state standards or trade standards in the maintenance of
fire-fighting facilities and equipment.

    Public security fire-fighting departments and their functionaries must
not take advantage of their positions to designate the sales units and
brands of fire-fighting products for users.

    Article 20  Quality of electrical products and gas appliances must meet
state standards or trade standards. Installation and use of electrical
products and gas appliances and design and laying of wiring and piping
must meet relevant state technical provisions for fire prevention safety.

    Article 21  No unit or individual shall damage or shift for other uses,
dismantle and suspend the use of fire-fighting facilities and equipment
without authorization, shall bury or enclose fire hydrants, shall occupy
the fire prevention separation zones and shall block fire-prevention channels.

    Departments of public utilities and urban construction or other units must
inform local public security fire-fighting departments in advance when
construction of roads as well as stoppage of power and water supply and
disconnection of telecommunications lines may affect fire brigades in fire
extinguishment and rescue operations.

    Article 22  During agricultural harvesting seasons, forest and grassland
fire-prevention periods, major festivals and holidays and seasons when fires
frequently occur, local people’s governments at all levels should organize
and carry out fire prevention publicity and education with clear-cut aims,
adopt fire prevention measures and conduct fire prevention safety inspections.

    Article 23  Villagers’ committees and residents’ committees should
carry out fire prevention work of a mass character, organize the work in the
formulation of the fire prevention safety pledge and conduct fire prevention
safety inspections. Village and township people’s governments and municipal
sub-district offices should provide guidance and carry out supervision.

    Article 24  Public security fire-fighting departments should carry
out supervision and inspection in accordance with law over observance of
fire prevention laws and regulations by organs, societies, enterprises and
institutions. Supervision and inspection over key fire prevention safety
units should be conducted at regular intervals.

    Functionaries of public security fire-fighting departments should,
when conducting supervision and inspection, produce identification cards.

    Public security fire-fighting departments must not collect fees when
conducting supervision and inspection such as fire prevention examination
and verification and acceptance checks.

    Article 25  Public security fire-fighting departments should, upon
discovery of hidden dangers of fire, inform the units or individuals concerned
in time to take measures and remove the hidden dangers within the specified
time period.
Chapter III  Fire Fighting Organizations

    Article 26  People’s governments at all levels should, in accordance with
the requirements of economic and social development, establish various forms
of fire-fighting organizations, step up the building of fire-fighting
organizations and upgrade fire-extinguishing and rescue capabilities.

    Article 27  Municipal people’s governments should, pursuant to the
construction standards for fire brigades prescribed by the state, establish
public security fire brigades, specialized fire brigades to undertake the
work of fire extinguishment and rescue.

    Township people’s governments may, in the light of local economic
development and requirements of fire prevention work, establish specialized
fire brigades and voluntary fire brigades to undertake the work of fire
extinguishment and rescue.

    Public security fire brigades should, in addition to fulfilment of the
task of fire extinguishment and rescue prescribed by this Law, participate
in emergency rescue operations of other disasters or accidents.

    Article 28  The following units should establish specialized fire
brigades to undertake the work of fire extinguishment and rescue of the
respective units:

    (1) nuclear power plants, big-size power plants, civil airports and
big ports;

    (2) big-size enterprises that produce and store inflammable or explosive
hazardous goods;

    (3) big-size warehouses and bases storing combustible essential materials;

    (4) other big-size enterprises than those specified in items (1), (2) and
(3) in which there are greater danger of fire but which are rather far from
local public security fire brigades; and

    (5) management units of ancient architectural complexes listed as key
national cultural relics protected units and located rather far from local
public security fire brigades.

    Article 29  Establishment of specialized fire brigades should be in
line with relevant state provisions and submitted to the fire-fighting
departments of the public security organs of the people’s governments at the
provincial level for acceptance checks.

    Article 30  Organs, societies, enterprises, institutions and townships,
villages may, in the light of requirements, establish voluntary fire brigades
composed of workers and staff members or villagers.

    Article 31  Public security fire-fighting departments should provide
professional guidance for specialized fire brigades and voluntary fire
brigades and have the authority to command and direct specialized fire
brigades to participate in fire-extinguishing and rescue work.
Chapter IV  Fire Extinguishment and Rescue

    Article 32  Whoever discovers a fire should report the fire alarm
forthwith. All units and individuals should provide facilities for reporting
the fire alarm without compensation and must not obstruct reporting the
alarm. Reporting false fire alarms is strictly prohibited.

    In the event of occurrence of a fire in a public place, staff members of
the said public place on the scene have the obligation to organize and guide
the masses present at the site in evacuation.

    A unit where a fire has occurred must organize forces to extinguish
the fire and conduct rescue operations forthwith. Neighbouring units should
provide support.

    Fire brigades must, on receipt of the fire alarm, rush to the scene of
fire at once, rescue people in danger, eliminate the dangers and extinguish
the fire.

    Article 33  In unified organization and command of on-the-scene fire
extinguishment and rescue operations by a public security fire-fighting
department, the commander-in-chief at the scene of fire has, in the light
of the requirements of fire extinguishment and rescue operations, the power
to decide on the following matters:

    (1) use of various water sources;

    (2) disconnection of transmission of electricity, inflammable gases and
liquids, restrictions in the use of fire and electricity;

    (3) delimitation of cordon zones and imposition of local traffic control;

    (4) use of neighbouring and close buildings and related facilities;

    (5) dismantling or damaging of buildings and structures neighbouring the
scene of fire to prevent the fire from spreading; and

    (6) mobilization of such relevant units as those of water supply, power
supply, medical aid, communications and transport to assist in fire
extinguishment and rescue operations.

    In the event of extinguishment and rescue operations of an extraordinarily
big fire, the local people’s government concerned should organize personnel
concerned, despatch and gather required materials in support of fire
extinguishment.

    Article 34  Participation in removal of danger and rescue operations
in other disasters or accidents than fire by public security fire brigades
shall be under the unified command of the local people’s government concerned.

    Article 35  Fire engines and fire boats shall not be subjected to the
restrictions of the speed, routes and directions of driving and navigating as
well as direction signals while on their way to the execution of missions of
fire extinguishment or removal of danger and rescue operations in other
disasters and accidents. Other vehicles and vessels and pedestrians must
give way and must not penetrate or overtake them. Traffic control commanders
should ensure the speedy passage of fire engines and fire boats.

    Article 36  Fire engines, fire boats as well as fire-fighting apparatuses,
equipment and facilities must not be used in matters not related to fire
fighting and removal of danger and rescue operations.

    Article 37  Public security fire brigades must not collect any fee for
fire extinguishment and rescue operations from units or individuals that have
experienced the fire.

    Specialized fire brigades and voluntary fire brigades shall be compensated
according to provisions for the consumption and damage of fuels, fire
extinguishing chemicals and apparatuses and equipment during participation in
fire extinguishment and rescue operations in other units.

    Article 38  Persons injured, disabled or deceased for participation in
fire extinguishment and rescue operations shall be given medical treatment
or pension for the disabled or pension for the family of the deceased
according to relevant state provisions.

    Article 39  A public security fire-fighting department has, after
extinguishment of a fire, the power to seal off the site of the fire
in accordance with requirements, and shall be responsible for investigating
and confirming the causes of the fire, verifying the losses of the fire and
ascertaining the responsibility for the fire accident.

    With respect to an extraordinarily big fire accident, the State Council or
a provincial people’s government may organize investigation when it deems
necessary.

    A unit where a fire has broken out should, after extinguishment of the
fire and pursuant to the requirement of the public security fire-fighting
department, protect the site, accept investigation of the accident and
truthfully provide information on the facts of the fire.
Chapter V  Legal Liability

    Article 40  Whoever commits any of the following acts in violation of
the provisions of this Law shall be ordered to make a rectification within
a specified time period; if he fails to make a rectification on expiry
of the specified time period, the offender shall be ordered to stop the
construction, stop the use or stop the production and business operations and
may concurrently be imposed a fine:

    (1) proceeding with construction of a project in circumstances where the
fire prevention design of the project has not been submitted to the public
security fire-fighting department for examination and verification or fails
to pass the examination and verification;

    (2) putting into use a construction project in circumstances where the
project has not undergone fire prevention acceptance checks or fails to pass
the acceptance checks on completion of construction of the project for which
a fire prevention design should be carried out according to law; and

    (3) putting into use or operation a public gathering place in
circumstances where the place has not undergone the fire prevention safety
inspection or fails to pass the inspection.

    A unit that commits acts of the preceding paragraph shall be penalized
pursuant to the provisions of the preceding paragraph, and the
person-in-charge held directly responsible and other personnel directly
responsible shall be administered a warning or imposed a fine.

    Article 41  Whoever holds such activities of a mass character as a
large gathering, fireworks evening party or lantern party with the danger
of fire without authorization in violation of the provisions of this Law
shall be ordered by the public security fire-fighting department to make
an on-the-spot rectification; if he fails to make a rectification on the
spot, the offender shall be ordered to stop the holding and may concurrently
be imposed a fine.

    A unit that commits the act of the preceding paragraph shall be penalized
pursuant to the provisions of the preceding paragraph, and the
person-in-charge held directly responsible and other personnel directly
responsible shall be administered a warning or imposed a fine.

    Article 42  Whoever lowers fire prevention technical standards in
construction, uses construction structural components and construction
materials the fire prevention characteristics of which fail to meet state
standards or trade standards, or proceeds with construction with substandard
fixture and decoration materials without authorization in violation of the
provisions of this Law shall be ordered to make a rectification within a
specified time period; if he fails to make a rectification on expiry of
the specified time period, the offender shall be ordered to suspend the
construction and may concurrently be impose a fine.

    A unit that commits acts of the preceding paragraph shall be penalized
pursuant to the provisions of the preceding paragraph, and the
person-in-charge held directly responsible and other personnel directly
responsible shall be administered a warning or imposed a fine.

    Article 43  An organ, a society, an enterprise or an institution that
fails to perform fire prevention safety responsibilities in violation

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES ON THE FOREIGN EXCHANGE CONTROL IN BONDED WAREHOUSES

The State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Relevant Issues on the Foreign Exchange Control in Bonded Warehouses

HuiFa [1998] No.97

November 30,1998

Branches the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the
central government, Branch of Shenzhen;the Assigned banks of foreign exchange:

Since the promulgation and implementation of the Circular on the Improvement of the Supervision over the Sale and Payment of Foreign
Exchange, we have received many issues on the foreign exchange control in bonded warehouses reported by some local branches of the
State Administration of Foreign Exchange (SAFE), the designated foreign exchange banks and enterprises, this Circular on issues on
the foreign exchange control in bonded warehouse is hereby issued after review and consideration as follows in order to ensure the
lawful operation of enterprises:

1.

Where the enterprises engaged in the operation of bonded warehouses (hereinafter referred to as “bonded warehouse enterprises”) import
goods from outside China and supply them to other domestic entities’ on consignment and commission manner, it is the responsibility
of the domestic entities taking delivery of goods from the bonded warehouses to purchase foreign exchange from the designated foreign
exchange banks or use their own foreign exchange accounts to make payment to outside of China with the following valid documents
and commercial invoices, while the bonded warehouse enterprises shall not make purchase and payment of foreign exchange:

a.

import contract;

b.

verification form of import payment of foreign exchange;

c.

special payment certificate for the customs duty levied by Customs or Customs’ duty – exemption certificate;

d.

original declaration form of import goods attached with anti- falsification tag and stamped with Customs’ “proof seal” with the country
(or region) of dispatch as “People’s Republic of China (142)”, the domestic place of destination as “some place in China”, the means
of transportation as “bonded”;

e.

other valid documents and commercial invoices required by corresponding means of settlement and modes of trade administration. The
applicants for the purchase and payment of foreign exchange shall be in conformity with the operating entities indicated on the declaration
form.

2.

Where the bonded warehouse enterprises import goods from outside China in an outright purchase manner and sub-sequently sell them
to other domestic entities through the bonded warehouses, it is the responsibility of the bonded warehouse enterprises to purchase
foreign exchange from the designated foreign exchange banks or use its own foreign exchange accounts to make the payment to outside
of China with the following valid documents and commercial invoices while the domestic entities taking delivery of goods from bonded
warehouse shall not make the purchase and payment of foreign exchange and shall make payments only in RMB to the bonded warehouse
enterprises:

a.

import contract;

b.

verification form of import payment of foreign exchange;

c.

special payment certificate for the customs duty levied by Customs or Customs’ duty-exemption certificate;

d.

original declaration form of import goods attached with anti- falsification tag and stamped with Customs’ “proof seal” with the country
(or region) of dispatch as “People’s Republic of China (142)”, the domestic place of destination as “some place in China”, the means
of transportation as “bonded”; (declaration form for exit outside of bonded warehouse)

e.

original declaration form of import goods stamped with Customs’ “proof seal” with the country (or region) of dispatch as “Outside
of China”, the mode of trade as “Goods from Bonded Warehouse(1233)”; (declaration form for entry into bonded warehouse)

f.

other valid documents and commercial invoices required by corresponding means of settlement and modes of trade administration.

The total amount on the declaration form for exit outside of bonded warehouse shall not be higher than that for entry into the bonded
warehouse.

The applicants for the purchase and payment of foreign exchange shall be in conformity with the operating entities indicated on the
declaration forms for the exit outside of and entry into the bonded warehouse and the buyers in the import contract.

3.

Where the domestic entities import goods from outside China into China through the bonded warehouse, such cases shall be handled according
to the provisions of the Article 2 of this Circular. Where the raw materials under the commission processing are imported from outside
China into China through bonded warehouse, purchase and payment of foreign exchange shall not be made.

4.

Only declaration form for entry into bonded warehouse itself shall not be used by the bonded warehouse enterprises and other domestic
entities as documents evidencing payment of foreign exchange.

5.

Designated foreign exchange banks shall strictly examine and verify required valid documents and commercial invoices and go through
the procedures of the check of declaration forms and verification of import payment of foreign exchange according to provisions.

6.

This Circular is not applicable to the enterprises operating bonded warehouse business in the bonded areas and the act of importing
goods from the bonded market in the bonded areas.

7.

Upon its receipt of this Circular, every branches of SAFE shall transit it to the sub-branches and financial institutions (inclusive
of foreign financial institutions) under its jurisdiction and entities concerned. Any problems or questions arising in its implementation
shall be reported promptly to SAFE.

8.

This Circular shall enter into force as of the date of promulgation.



 
The State Administration of Foreign Exchange
1998-11-30

 







CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING THE STATE OF SORTING OUT AND CONSOLIDATION OF NON-EXPERIMENTAL FOREIGN BUSINESS INVESTED COMMERCIAL ENTERPRISES

Category  FOREIGN ECONOMIC RELATIONS AND TECHNOLOGICAL COOPERATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-07-01 Effective Date  1998-07-01  


Circular of the General Office of the State Council Concerning the State of Sorting out and Consolidation of Non-experimental Foreign
Business Invested Commercial Enterprises



(July 1,1998)

    To uphold the uniformity and seriousness of the policy of experiment
of absorbing investment by foreign businesses in the commercial sector in
China, ensure sound and orderly progress of the experiment, former State
Planning Commission, former Ministry of Domestic Trade, the Ministry of Foreign Economic Relations and Trade and the State Administration
of Industry and Commerce formed, in pursuance of the spirit of the <of the General Office of the State Council Concerning the Questions Related
to Sorting out and Consolidation of Non-experimental Foreign Business
Invested Commercial Enterprises>>(Kuo Ban Fa No.[1997]26), a sorting out
and consolidation group and starting from August 1997, conducted sorting out
and consolidation of foreign business invested commercial enterprises the
establishemnt of which were approved by all localities on their own beyond
their mandate. Upon the approval of the State Council, the state of sorting
out and consolidation is hereby notified as follows:

    I.Permission has been granted to 42 foreign business invested commercial
enterprises to continue operations within the duration of joint operations
after examination and verification of the percentage of contribution made by
foreign businesses, the status of capital in place, duration of joint
operations, business scope and status of operations in accordance with
relevant state policy of absorbing foreign business investment in the
commercial sector.

    II.199 foreign business invested commercial enterprises need to make
rectifications after sorting out. Specific requirements for rectification
are:the percentage of contribution and profit-sharing of the Chinese side
in a foreign business invested commercial enterprise must be over 50%(over
40% in the midwest region), holdings of chain stores and warehouse marts
must be controlled by the Chinese side, duration of joint operations shall
not exceed 30 years(not exceeding 40 years in the midwest region) and they
shall not operate wholesale business; commercial enterprises of sole
foreign business investment shall, in accordance with the above-mentioned
standards, be transformed into Sino-foreign joint ventures or Sino-foreign
cooperative commercial enterprises. Sorting out and consolidation groups
formed in all localities should, by the end of 1998 and in pursuance of the requirements, complete rectification of the above-mentioned
enterprises
and submit reports to the State Development and Planning Commission, the
Ministry of Foreign Economic Relations and Trade, the State Administration
of Industry and Commerce and the State Administration of Domestic Trade
for examination and verification.

    III.The aforesaid enterprises permitted to continue operations after
sorting out and consolidation and the rectified enterprises found to be
in line with the requirements after examination and verification shall
have no right to operate import and export, shall not operate wholesale
business, shall not expand the business scope and scale of construction
any more, shall not open branches and extend the duration of joint operations
and shall not benefit from the policy of tax reduction and tax exemption for
import equipment and materials for own use.

    IV.With respect to the 36 foreign business invested commercial
enterprises examained and approved after the issuance of the <Circular of the General Office of the State Council Concerning the
Immediate Stoppage of Examination and Approval of Foreign Business
Invested Commercial Enterprises by Localities on their own>>(Kuo Ban Fa
Plain Code Telegram No.[1997]15), capital not injected in accordance with
the time prescribed, that have failed to pass annual inspection or failed to
take part in annual inspection, as well as those foreign business invested
commercial enterprises that fall within the scope of sorting out and
consolidation but have failed to submit a report shall be revoked the
original approval certificates by departments of foreign economic relations
and trade and departments of industry and commerce administration at the
provincial level, and formalities of nullification of registration or
revocation of business licenses completed.

    V.The State Development and Planning Commission, the Ministry of Foreign
Economic Relations and Trade, the State Administration of Industry and
Commerce and the State Administration of Domestic Trade shall jointly
issue a document notifying all localities of detailed list of the aforesaid
non-experimental foreign business invested commercial enterprises retained,
rectified and nullified(revoked), and shall be responsible for the
supervision of implementation.

    VI.Local people’s governments that arbitrarily exceeded the mandate of examination and approval of foreign
business invested commercial enterprises
in contravention of the state policy of experiment in absorbing foreign
business investment in the commercial sector and in particular the People’s
Governments of the Municipalities of Chongqing, Chengdu, Xian and Nanchang
that still approved the establishment of non-experimental foreign business
invested commercial enterprises on their own after the issuance of the
<> are meted out criticism in the circular. All localities
should learn a lesson therefrom and do the work well of successful handling
of rectification and correction and nullification (revocation) of non-
experimental foreign business invested commercial enterprises in accordance
with the requirements of this Circular.

    China will continue to implement the policy of actively, rationally and
effectively make use of foreign investment in the light of the spirit of the
15th National Congress of the Chinese Communist Party and expand the opening
up to the outsdie world in the commercial sector step by step on the basis of summing up the experiences in experiment. People’s
governments of all
localities should carry out their work in pursuance of the state policy
and the unified arrangement of the State Council and each shall not
act in its own way, be strict in the execution of orders and prohibitions
and jointly uphold the seriousness of the state policy so as to ensure that
the work of absorption of foreign business investment proceeds in a sound and
orderly way.






OFFICIAL REPLY OF THE SUPREME PEOPLE’S COURT TO THE QUESTION HOW TO LIQUIDATE A JOINT VENTURE IN THE TRIAL OF A DISPUTE CASE ARISING FROM THE CHINESE-FOREIGN JOINT VENTURE CONTRACT

the Supreme People’s Court

Announcement of the Supreme People’s Court

Fa Shi [1998] No.1

Official Reply of the Supreme People’s Court to the Question on How to Liquidate a Joint Venture in the Trial of a Dispute Case Arising
from the Chinese-Foreign Joint Venture Contract, adopted at the 950th Meeting of the Judicial Committee of the Supreme People’s Court
on December 5, 1997, is promulgated on January 15, 1998 and comes into force as of the date of its promulgation.

the Supreme People’s Court

January 15, 1998

Official Reply of the Supreme People’s Court to the Question How to Liquidate a Joint Venture in the Trial of a Dispute Case Arising
from the Chinese-Foreign Joint Venture Contract

To the Higher People’s Court of Shandong Province:

The Report on Request for Instruction to the Question How to Liquidate a Joint Venture in the Trial of a Dispute Case Arising from
the Chinese-Foreign Joint Venture Contract [(1996) Lu Jing Chu Zi No.44] has been received. After deliberation, the reply is hereby
given as follows:

The first opinion in your court’s request for instructions is agreed, i.e., where the foreign party to the Chinese-foreign equity
joint venture brings a lawsuit in the People’s Court, claiming that the joint venture be dismissed and claiming the other party’s
liabilities for breach of contract, the People’s Court shall make a judgment on such issues as the validity of the joint venture
contract, whether to terminate the joint venture contract, and the liability for breach of contract, etc.. The issue concerning the
liquidation of the joint venture shall be handled in accordance with the relevant provisions of Regulations for the Implementation
of Law of the People’s Republic of China on Chinese-foreign Equity Joint Ventures, and Measures for the Liquidation of Foreign-Invested
Enterprises. And the liquidation organized by the People’s Court has no legal basis. If a domestic limited liability company has
a similar situation, the relevant provisions of the Company Law of the People’s Republic of China shall apply.



 
the Supreme People’s Court
1998-01-15

 







CIRCULAR OF THE STATE COUNCIL CONCERNING ORGANIZATIONAL STRUCTURE

Category  STATE INSTITUTIONS Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1998-03-29 Effective Date  1998-03-29  


Circular of the State Council Concerning Organizational Structure



(March 29, 1998)

    People’s government of the province, autonomous region and municipality
directly under the Central Government, ministries and commissions of the State
Council, organizations directly under the State Council:

    In accordance with the Restructuring Plan for Component Departments under
the State Council adopted through deliberation at the First Session of the
Ninth National People’s Congress, and the Restructuring Plan for Organizations
Directly under the State Council, Working Organs of the State Council and
Institutions directly under the State Council approved through deliberation at
the First Plenary Meeting of the State Council, the State Council’s
organizational structure is hereby circulated as follows:

    I. General Office of the State Council of the People’s Republic of China

    II. Ministries and Commissions as Component Departments of the State
Council

    Ministry of Foreign Affairs of the People’s Republic of China

    Ministry of National Defence of the People’s Republic of China

    State Development Planning Commission of the People’s Republic of China

    State Economic and Trade Commission of the People’s Republic of China

    Ministry of Education of the People’s Republic of China

    Ministry of Science and Technology of the People’s Republic of China

    Commission of Science, Technology and Industry for National Defence of the
People’s Republic of China

    State Ethnic Affairs Commission of the People’s Republic of China

    Ministry of Public Security of the People’s Republic of China

    Ministry of State Security of the People’s Republic of China

    Ministry of Supervision of the People’s Republic of China

    Ministry of Civil Affairs of the People’s Republic of China

    Ministry of Justice of the People’s Republic of China

    Ministry of Finance of the People’s Republic of China

    Ministry of Personnel of the People’s Republic of China

    Ministry of Labour and Social Security of the People’s Republic of China

    Ministry of Land and Natural Resources of the People’s Republic of China

    Ministry of Construction of the People’s Republic of China

    Ministry of Railways of the People’s Republic of China

    Ministry of Communications of the People’s Republic of China

    Ministry of Information Industry of the People’s Republic of China

    Ministry of Water Resources of the People’s Republic of China

    Ministry of Agriculture of the People’s Republic of China

    Ministry of Foreign Trade and Economic Co-operation of the People’s
Republic of China

    Ministry of Culture of the People’s Republic of China

    Ministry of Public Health of the People’s Republic of China

    State Family Planning Commission of the People’s Republic of China

    People’s Bank of China

    Auditing Administration of the People’s Republic of China

    The Ministry of Supervision will be merged with the CPC Central Commission
for Discipline Inspection, with its organizational structure listed under the
series of the State Council and its staff belonging to the departments under
the CPC Central Committee.

    III. Organizations Directly under the State Council

    General Administration of Customs of the People’s Republic of China

    State Administration of Taxation

    State Bureau of Environment Protection

    Civil Aviation Administration of China

    State Administration of Radio, Film and Television

    State Sports Administration (merging with All-China Sports Federation but
having their respective names retained)

    State Statistical Bureau

    State Administration for Industry and Commerce

    Press and Publication Administration of China (State Copyright Bureau)

    State Forestry Bureau

    State Bureau of Quality and Technological Supervision

    State Bureau of Pharmaceutical Supervision and Administration

    State Bureau of Intellectual Property Rights

    National Tourism Administration

    State Bureau of Religious Affairs

    Counsellors’ Office under the State Council

    Bureau of Government Offices Administration under the State Council

    IV. Working Organs of the State Council

    Foreign Affairs Office of the State Council

    Office of Overseas Chinese Affairs of the State Council

    Hongkong and Macao Affairs Office of the State Council

    Legislative Affairs Office of the State Council

    Economic Restructuring Office of the State Council

    Research Office of the State Council

    V. Institutions Directly under the State Council

    Xinhua News Agency

    Chinese Academy of Sciences (Academia Sinica)

    Chinese Academy of Social Sciences

    Chinese Engineering Academy

    Development Research Centre under the State Council

    State Administrative College

    National Seismological Bureau

    National Meteorological Bureau

    Securities Supervisory and Regulatory Commission of China

    The Foreign Affairs Office of the State Council will continue to work on
behalf of the Office of the Foreign Affairs Directorate of the CPC Central
Committee and undertake specific tasks of the latter. The Taiwan Affairs
Office of the State Council and the Taiwan Affairs Office of the CPC Central
Committee will be merged into one with their respective names retained and
included into the series of the departments under the CPC Central Committee.
So do the Information Office of the State Council and the International
Communication Office of the CPC Central Committee.

    The State Archives Bureau and the Central Archives will be merged into one
with their respective names retained and included into the subsidiary
institutions of departments under the CPC Central Committee.






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...