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LETTER OF THE MINISTRY OF COMMERCE ABOUT REINFORCING THE PROTECTION OF INTELLECTUAL PROPERTY WHEN ATTENDING OR ORGANIZING OVERSEAS EXHIBITIONS

Letter of the Ministry of Commerce about Reinforcing the Protection of Intellectual Property When Attending or Organizing Overseas
Exhibitions

Shang Fa Han [2007] No.16

The people’s governments of all provinces, autonomous regions, municipalities directly under the Central Government, the cities specifically
designated in the state plan and Xinjiang Production and Construction Corporations.:

During these years, the Chinese enterprises have been involved in more and more disputes on intellectual property when attended overseas
exhibitions. On CPHL Worldwide 2006 which was held in France, the Chinese enterprise exhibitors were suspected of infringement on
intellectual property, which leaded to ill consequences, for example, some related personnel were detained and some exhibits were
confiscated. The same thing happened in March 2007 on CeBIT, which was held in Hanoverian, Germany. The repetitive occurrence of
such incidents shows that some Chinese enterprises are short of the awareness of protecting intellectual property and fail to place
enough emphasis on the protection of intellectual property when preparing to go abroad to attend exhibitions. Such incidents have
not only impaired China’s overseas good image in the facet of protection of intellectual property, but also resulted in great damage
to the reputation and interests of those enterprise exhibitors themselves and even endangered the personal safety of some individuals.

To respect and protect intellectual property is not only a requirement for the development of enterprises themselves, a requirement
for the development of national economy and science and technology, but also a requirement for promoting the sound development of
Chinese-foreign trade and economic relations. Therefore we should make continuous efforts to enhance enterprises’ understanding of
protecting intellectual property. For the purpose of guiding enterprises going abroad to attend exhibitions to do well the protection
of intellectual property, we hereby inform the related issues as follows:

1.

Great emphasis shall be laid on the protection of intellectual property in attending overseas exhibitions. More efforts in guiding
and supervising the related local functional management shall be made. And an effective work mechanism to avoid the occurrence of
infringements in overseas exhibitions shall be set up.

2.

The circumstances about the protection of intellectual property in the process of attending overseas exhibitions by local enterprises
shall be sorted out and analyzed. The administration of enterprises attending overseas exhibitions and entities organizing overseas
exhibitions shall be further reinforced. The examination and verification of the protection of intellectual property shall be taken
as an importance task.

3.

A responsibility system for infringements on intellectual property shall be set up. Those domestic enterprises that attend overseas
exhibitions or entities organizing overseas exhibitions which lead to serious consequences because of their infringement upon intellectual
property shall be imposed upon necessary punishment according to the actual circumstances.

4.

Enterprises attending overseas exhibitions or entities organizing overseas exhibitions shall be trained in terms of intellectual property
to improve their awareness of protecting intellectual property. They shall not only protect their own intellectual property but respect
others’ legitimate rights and interests.

5.

All regions shall actively conduct China’s business councils in foreign countries to hear the related suggestions when organizing
overseas exhibitions.

Each region shall contact the Department of Treaty and Law of the Ministry of Commerce in the case of any complaint or suggestion
in conducting the related work.

Contact person: Yang Hanhui, Chen Fuli

Tel: 65198154/8761

Ministry of Commerce

April 30, 2007



 
Ministry of Commerce
2007-04-30

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING REFUND OF TAXES LEVIED ON PURCHASE OF DOMESTIC EQUIPMENT BY CONSTRUCTION ENTERPRISES ENTRUSTED BY FOREIGN-FUNDED ENTERPRISES THROUGH CONTRACTING FOR LABOR AND MATERIALS

Circular of the State Administration of Taxation concerning Refund of Taxes Levied on Purchase of Domestic Equipment by Construction
Enterprises Entrusted by Foreign-funded Enterprises through Contracting for Labor and Materials

Guo Shui Han [2007] No.637

All the state taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities
specifically designated in the state plan:

We have received letters from some areas recently requesting the State Administration of Taxation to clear the examination and approval
procedures for refund of taxes levied on purchase of domestic equipment by construction enterprises entrusted by foreign-funded enterprises
through contracting for labor and materials. Upon study, a circular on relevant issues is hereby rendered as follows:

1.

For the engineering projects which are contracted out by foreign-funded enterprises through contracting for labor and materials, if
such construction enterprises execute with their contractors an agreement for purchase of domestic equipment, entrusted to purchase
domestic equipment, and get VAT invoices (the purchasers on VAT invoices should be the Construction Enterprises) issued therefore,
the invoices shall be delivered to the foreign-funded enterprises for application for tax refund under relevant rules.

2.

Procedures for Application for Tax Refund

(1)

When applying for tax refund, the foreign-funded enterprises should fill out Application Form for Purchase of Domestic Equipment by
Foreign-funded Projects, together submit the credence stipulated in Circular of the State Administration of Taxation and National
Development and Reform Commission on Printing and Issuing the Trial Measures for the Administration of Refund of Taxes Levied on
Purchase of Domestic Equipment by Foreign-funded Projects (Guo Shui Fa [2006] No.111), VAT invoices for the purchase of domestic
equipment by the construction enterprises on behalf of the engineering projects, the General Contract by the foreign-funded enterprises
and the construction enterprises, the list of domestic equipment purchased on entrustment, the list of equipment delivered by the
construction enterprises to the foreign-funded enterprises, the Opinion Letter on Checking and Accepting the Equipment issued by
relevant departments of the foreign-funded enterprises, and payment voucher, etc. to the competent tax authorities for tax refund.

(2)

After accepting the application for tax refund, for those equipments under the General Contract between the foreign-funded enterprises
and the construction enterprises, whose VAT invoices read the construction enterprises as the purchasers, the competent tax authorities
should send letters to the tax competent authorities of the supply enterprises to make an investigation. If the replies affirm the
authenticity of the invoices and that the tax declaration of the equipment in the invoices has been made, the tax competent authorities
shall handle the application. If the replies cannot affirm the authenticity of the invoices, or if the replies cannot affirm whether
the tax declaration of the equipment in the invoices has been made, or if the replies can not be received, the tax competent authorities
shall not transact the application.

3.

Other matters not covered in this Circular shall be governed by the document “Guo Shui Han [2006] No.111”.

State Administration of Taxation

June 12, 2007



 
State Administration of Taxation
2007-06-12

 






CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING THE PRINTING AND DISTRIBUTION OF THE DETAILED RULES FOR IMPLEMENTING THE MEASURES FOR THE ADMINISTRATION OF PERSONAL FOREIGN EXCHANGE






Circular of the State Administration of Foreign Exchange Concerning the Printing and Distribution of the Detailed Rules for Implementing
the Measures for the Administration of Personal Foreign Exchange

Hui Fa [2007] No.1

The branches and foreign exchange management departments of the State Administration of Foreign Exchange in each province, autonomous
region and municipality directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo , each
Chinese-funded appointed foreign exchange banks and China UnionPay Co., Ltd.:

For the purpose of implementing the Measures for the Administration of Personal Foreign Exchange (Order No.3 [2006] of the People’s
Bank of China), the State Administration of Foreign Exchange enacted the Detailed Rules for Implementing the Measures for the Administration
on Individual Foreign Exchange (hereinafter referred to as Detailed Rules). We hereby print and distribute these Detailed Rules to
you. You shall comply with and implement them earnestly.

Each branch and foreign exchange management department of the State Administration of Foreign Exchange shall forward this Circular
to all sub-branches, urban commercial banks, rural commercial banks and foreign-funded banks within their respective jurisdictions
once they receive this Circular, provide trainings on business operation to the subordinate sub-branches and banks as soon as possible,
and publicize the special telephone numbers for interpreting the related policies. Each Chinese-funded appointed foreign exchange
banks should forward this Circular to their subordinate branches. In case any entity faces any problem when implementing this Circular,
please feedback to the State Administration of Foreign Exchange in a timely manner.

Appendix: Detailed Rules for Implementing the Measures for the Administration on Individual Foreign Exchange

The State Administration of Foreign Exchange

January 5, 2007
Appendix:
Detailed Rules for Implementing the Measures for the Administration on Individual Foreign Exchange
Chapter I General Provisions

Article 1

Under the Measures for the Administration on Individual Foreign Exchange, the present Detailed Rules are formulated with a view to
regulating and facilitating the foreign exchange business operation of banks and personals.

Article 2

The administration of total annual amount shall be adopted for personal settlement and domestic personal purchase of foreign exchange.
The total annual amount shall be the value equivalent to USD 50,000 Dollars for each person every year. The State Administration
of Foreign Exchange may make adjustment on the total annual amount in light of the position of payment balance.

With regard to the personal settlement and purchase of foreign exchange, in case it is within the total annual amount, it shall be
handled at a bank by presenting his/her valid identity certificate; if beyond the total annual amount, those under the current account
shall be handled under Articles 10, 11 and 12 of the present Detailed Rules, while those under the capital account shall be handled
under the related provisions of the “Administration of the Personal Foreign Exchange under the Capital Account” in the present Detailed
Rules .

Article 3

The foreign exchange purchased by an individual may be remitted abroad, deposited into his/her foreign exchange savings account or
carried out of the territory of the country under the related provisions.

Article 4

As regard personal purchase or settlement of foreign exchange within the total annual amount, he/she may entrust his/her linear relative
to handle on his/her behalf; in respect of a personal purchase, settlement or overseas personal purchase of foreign exchange beyond
the total annual amount, he/she may entrust other person to handle upon the strength of the related evidential materials under the
provisions in the present Detailed Rules.

Article 5

When carrying foreign currency banknotes into or out of the country, an individual shall conform to the related administrative provisions
of the state.

Article 6

Appointed foreign exchange banks (hereinafter referred to as bank) shall check and verify the authenticity of personal foreign exchange
business under the provisions of the present Detailed Rules, and may not forge or alter any transaction.

A bank shall, through the personal foreign exchange sale and settlement management information system (hereinafter referred to as
personal foreign exchange sale and settlement system), handle the business of personal purchase or settlement of foreign exchange
and record the related information in an authentic, accurate and integrated way.

Article 7

The State Administration of Foreign Exchange and branches thereof (hereinafter referred to as foreign exchange departments) shall
take charge of collecting statistical data on, monitoring, administrating and examining the personal foreign exchange business.

Chapter II Administration of the Personal Foreign Exchange under the Current Account

Article 8

Personal foreign exchange income and expenditure under the current account may be divided into business foreign exchange income and
expenditure and non-business foreign exchange income and expenditure.

Article 9

Personal business foreign exchange income and expenditure under the current account shall be handled under the rules as follows:

(1)

as regard an personal foreign trade operator, he/she shall handle the purchase, payment, collection and settlement of foreign exchange
through his/her foreign exchange settlement account; the declaration of his/her foreign exchange income and expenditure, import-export
verification and writing-off and payment balance shall be administered as those of an institution.

Personal foreign trade operator means an individual that conducts foreign trade business activities after fulfilling the industrial
and commercial registration or other formalities for business operation and gaining an personal industrial and commercial business
license or other certificates for business operation as well as going through the formalities of registration under the related provisions
of the competent department of commerce under the State Council and obtaining the right to conduct foreign trade .

(2)

In case a personal industrial and commercial household entrusts an enterprise with foreign trade qualification to conduct the import
business, he/she shall purchase foreign exchange by presenting the agency contract (agreement) on import concluded between it and
the agency enterprise, and the purchased foreign exchange shall be directly transferred to the agency enterprise￿￿s foreign exchange
account under the current account through his/her foreign exchange settlement account.

In case a personal industrial and commercial household entrusts an enterprise with foreign trade qualification to conduct the export
business, he/she may handle the collection or settlement of foreign exchange through his/her foreign exchange settlement account.
The settlement of foreign exchange shall be handled by presenting the agency contract (agreement) on export concluded between it
and the agency enterprise and the export goods declaration form of the agency enterprise. The agency enterprise may take the collection
notice of the personal industrial and commercial household as the voucher for verification and writing-off, after it reports the
name, account number and other materials of the personal industrial and commercial household required as necessary for verification
and writing-off to the foreign exchange department of the place where it is located for record

(3)

An overseas personal shall conduct the settlement of foreign exchange under the item of tourism and shopping by presenting his/her
valid identity certificate and his/her declaration form of tourism and shopping.

Article 10

With regard to a domestic personal, if the amount involved in the non-business settlement of foreign exchange under the current account
is more than the total annual amount, he/she shall handle it at a bank by presenting his/her valid identity certificate and the evidential
materials as follows:

(1)

donation: the notarized donation contract or agreement. The donation shall comply with the related provisions;

(2)

alimony: linear relative relationship certificate or notarized support relationship certificate and the related certificates on the
income of the overseas payer, such as the bank deposit certificate and the receipt of tax payment for personal income, etc;

(3)

income from inheritance of legacy: legal instrument or notarization on inheritance of legacy;

(4)

income from insurance of foreign exchange: insurance contract and the payment certificate of the insurance institution. Applying for
foreign exchange insurance shall comply with the related provisions of the state.

(5)

income from royalties and fees for exclusive rights: payment certificate, agreement or contract;

(6)

income from providing legal, accounting, consulting and public relation services: payment certificate, agreement or contract;

(7)

emolument of employees: employment contract and income certificate;

(8)

income from abroad investment: certificate on foreign exchange registration for abroad investment, resolution on profit distribution,
dividend payment letter or other income certificates;

(9)

others: the related certificates and payment vouchers.

Article 11

As respect to an overseas individual, if the amount involved in the non-business settlement of foreign exchange under the current
account is more than the total annual amount, he/she shall handle it at a bank by presenting his/her valid identity certificate and
the evidential materials as follows:

(1)

expenditure for house rent and so on: the house-leasing contract as registered at the house management department, invoice or payment
advice;

(2)

expenditure for personal consumption: the related contracts or invoices;

(3)

expenditure for medical care and learning: charging certificates of domestic hospitals (schools);

(4)

other expenditures: the related certificates and payment vouchers.

In case the amount involved in any single transaction of the settlement of foreign exchange mentioned above exceeds USD 50,000 for
the equivalent, the RMB capital obtained from such settlement shall be directly transferred to the domestic RMB account of the counterpart
of the transaction.

Article 12

With respect to a domestic individual, if the amount involved in the non-business purchase of foreign exchange under the current
account is more then the total annual amount, he/she shall deal with it at a bank by presenting his/her valid identity certificate
and the related evidential materials indicating the trading volume.

Article 13

An overseas individual shall purchase foreign exchange with legal income of RMB under the current account and reconvert the RMB unused
into foreign currency under the rules as follows:

(1)

with regard to the legal income of RMB under the current account gained by an overseas individual within the borders, he/she shall
purchase foreign exchange by presenting his/her valid identity certificate and the related evidential materials indicating the trading
volume (inclusive of tax voucher).

(2)

an individual shall reconvert the RMB converted by him/her but unused into foreign currency by presenting his/her valid identity certificate
and the original exchange memo, the validity term of the original exchange memo is 24 months from the exchange date; if the total
amount converted by an individual in a same day is not more than the amount equivalent to USD500 (including USD500) or the total
amount converted by an individual in a same day at the premises within the boundaries but outside the customs before his/her leaving
is not more than the amount equivalent to USD1000 (including USD1000), he/she may deal with it by presenting his/her valid identity
certificate.

Article 14

In case a domestic individual remits foreign exchange abroad for expenses under the current account, he/she shall handle it under
the rules as follows:

In case the total amount of the foreign exchange remitted abroad from his/her foreign exchange savings account in a same day does
not exceed the amount equivalent to USD50, 000 (including USD 50,000), he/she shall deal with it at a bank by presenting his/her
valid identity certificate; if the total amount is more than the aforesaid amount, he/she shall handle it by presenting the authentic
voucher under the current account indicating the trading volume.

In case the total amount of the foreign currency banknotes held by an individual and remitted abroad dose not exceed the amount equivalent
to USD10, 000 (including USD 10,000), he/she shall deal with it at a bank by presenting his/her valid identity certificate; if the
total amount is more than the aforesaid amount, he/she shall handle it by presenting the authentic voucher under the current account
indicating the trading volume, the Customs Luggage Declaration Form of the People’s Republic of China for Incoming Passengers signed
and sealed by the customs or his/her bank form for the withdrawal of foreign currency banknote of the original bank of deposit.

Article 15

An overseas individual shall remit abroad foreign exchange under the current account at a bank under the rules as follows:

(1)

in case the foreign exchange remitted abroad is from his/her foreign exchange savings account, he/she shall deal with it by presenting
his/her valid identity certificate;

(2)

in case the foreign exchange remitted abroad is foreign currency banknotes held by the individual, where the total amount remitted
in a same day does not exceed USD10,000 (including USD10,000), he/she shall deal with it by presenting his/her valid identity certificate;
where the total amount is more than the aforesaid amount, he/she shall also provide the Customs Luggage Declaration Form of the People’s
Republic of China for Incoming Passengers signed and sealed by the customs or his/her bank form for the withdrawal of foreign currency
banknote of the original deposit bank .

Chapter III Administration of the Personal Foreign Exchange under the Capital Account

Article 16

A domestic individual shall make overseas direct investment under the related provisions of the state. With regard to the needed
foreign exchange, he/she may purchase foreign exchange or remit abroad his/her self-owned foreign exchange upon the approval of the
local foreign exchange department and shall conduct the corresponding formalities for the registration of foreign exchange for investing
abroad.

In case a domestic individual or an overseas individual who habitually resides within borders of China sets up or controls an overseas
special purpose company and makes return investment, the foreign exchange income and expenditure involved shall be handled under
the related provisions of the Circular of the State Administration of Foreign Exchange on Related Matters about Foreign Exchange
Administration for Domestic Residents to Engage in Financing and Return Investment through Overseas Special Purpose Companies.

Article 17

A domestic individual may use foreign exchange or RMB to make such financial investment as overseas regular earnings or rights and
interests and so on, through qualified domestic institutional investors including banks and fund management companies.

Article 18

In case a domestic individual takes part in such foreign exchange business as the employee stock ownership plan or stock option plan
of an overseas listed company, such foreign exchange business involved may not be handled until the listed company or its domestic
agency has filed a uniform application and has been approved by the foreign exchange department.

The foreign exchange incomes gained by a domestic individual from the sale of the stocks under the employee stock ownership plan or
stock option plan of an overseas listed company and those from dividend may be settled or transferred to the employees’ personal
foreign exchange savings accounts after being remitted to the domestic special foreign exchange account that is opened by the listed
company or its domestic agency.

Article 19

In case a domestic individual pays for any foreign exchange insurance premium to a domestic insurance institution whose foreign exchange
insurance business has been approved, he/she shall handle the procedures for the purchase and payment of foreign exchange by presenting
the insurance contract and the advise of payment sent by the insurance institution.

The insurance money, which is compensated or paid to a domestic individual beneficiary under the item of foreign exchange insurance,
may be deposited into his/her foreign exchange savings account or may be settled.

Article 20

In case a domestic individual emigrating abroad transfers abroad his/her domestic properties existing before obtaining the identity
of legal immigrant or a foreign citizen transfers abroad the domestic legacies he/she has inherited under law, he/she shall handle
it under the related provisions of the Interim Measures for Administering the Sale and Payment of Foreign Exchanges Owing to the
Transfer of Personal Properties to Foreign Countries.

Article 21

In case an overseas personal purchases or sells any commercial house within China or merges a domestic enterprise of real estate
through transferring stock equity, the foreign exchange involved shall be administered in light of the Circular of the Construction
Department and the State Administration of Foreign Exchange Concerning Some Matters on Regulating the Administration of Foreign Exchange
in the Real Estate Market and other related provisions.

Article 22

An overseas individual may invest in domestic B shares under the related provisions; if he/she invests in any other financial products
that are issued and circulated domestically, he/she shall deal with it through a qualified overseas institutional investor.

Article 23

Under the convertibility progress of RMB under the capital account, the administration on granting loans to overseas individuals,
borrowing foreign debts, providing external guarantee and directly conducting transactions involving overseas commodity futures or
financial derivative products by domestic individuals shall be loosened step by step, and the detailed measures shall be set down
separately.

Chapter IV Administration of Personal Foreign Exchange Accounts and Foreign Currency Banknotes

Article 24

The foreign exchange departments shall administer personal foreign exchange accounts and foreign currency banknotes in light of the
category of the parties concerned and the nature of the transactions involved. A bank shall, when opening a foreign exchange account
for an individual, distinguish between a domestic individual and an overseas individual. The accounts may be classified into foreign
exchange settlement account, foreign exchange savings account and capital account in light of the nature of the transactions involved.

Article 25

A foreign exchange settlement account means an account opened by a personal foreign trade operator or personal industrial and commercial
household to conduct foreign exchange revenue and expenditure related to business under the current account. Its opening, use and
closing shall be administered as those of the account of an institution.

Article 26

For opening a foreign exchange savings account at a bank, an individual shall present his/her valid identity certificate, and the
name of the account shall be identical with that indicated in his/her valid identity certificate.

Article 27

For opening a special investment account for foreign investors, a special account for a special purpose company, a special account
for investment and merger or any other foreign exchange accounts under the capital account, or when transferring the capital in such
account domestically or remitting it abroad, an individual shall obtain the approval of the foreign exchange department.

Article 28

The domestic transfer of the capital in an personal foreign exchange savings account shall be handled under the rules as follows:

(1)

the capital transfer between the accounts of the same individual shall be dealt with by presenting his/her valid identity certificate;

(2)

the capital transfer between the account of an individual and that of his/her linear relative shall be dealt with by presenting the
valid identity certificates of the both parties and the certificate concerning their linear relative relationship;

(3)

the capital transfer between the account of a domestic individual and that of an overseas individual shall be treated as a cross-border
transaction for administration.

Article 29

Capital in foreign exchange settlement account and foreign exchange savings account of the same individual may be transferred each
other, but the capital transferred from the foreign exchange savings account to the foreign exchange settlement account may only
used for the foreign payment of the transferring day and may not be settled after the transfer is made.

Article 30

In case the total amount of foreign currency banknotes withdrawn by an individual does not exceed the amount equivalent to USD10,
000 (including USD10, 000), he/she may handle it directly at a bank; if the total amount is more than the aforesaid amount, he/she
shall report it to the local foreign exchange department for record in advance by presenting his/her valid identity certificate and
the evidential materials regarding the withdrawn purpose. The bank shall, upon the strength of his/her valid identity certificate
and the Filing Form for the Withdrawal of Foreign Currency Banknotes (see Appendix 1), handle the formalities for withdrawing foreign
currency banknotes for the individual.

Article 31

In case an individual deposits foreign currency banknotes into his/her foreign exchange savings account, where the total amount deposited
in a same day is not more than the amount equivalent to USD50, 000 (including USD50, 000), he/she may handle it directly at a bank;
if it is more than the aforesaid amount, he/she shall handle it at a bank by presenting his/her valid identity certificate, the Customs
Luggage Declaration Form of the People’s Republic of China for Incoming Passengers signed and sealed by the customs or his/her bank
form for the withdrawing foreign currency banknote of the original deposit bank . The bank shall mark the name of the deposit bank,
the amount deposited and the deposit date on the related vouchers.

Chapter V Personal Foreign Exchange Sale and Settlement Management Information System

Article 32

A bank qualified to operate foreign exchange sale and settlement business as well as accessing and using the personal foreign exchange
sale and settlement system may handle the business of personal foreign exchange sale and settlement directly through this system.

Article 33

For applying for accessing personal the foreign exchange sale and settlement system, a bank, either its headquarters or any of its
branches, shall meet the technical conditions for the access of the personal foreign exchange sale and settlement system (see Appendix
2), have trained technical personnel and business operators and be able to maintain the normal operation of the system.

Article 34

A bank shall fill in the bank outlets information registration form of the personal foreign exchange sale and settlement system and
apply for accessing to the system to the foreign exchange department. The foreign exchange department shall approve the application
upon confirming it as competent.

Article 35

All the businesses of personal foreign exchange sale and settlement handled by a bank shall be incorporated into the personal foreign
exchange sale and settlement system except under the following circumstances:

(1)

the foreign exchange sale and settlement happens at foreign currency exchange outlets;

(2)

the foreign exchange settlement is handled through bank counters and the amount thereof is less than that equivalent to USD100 (including
USD100), including foreign exchange settlement of tail series and foreign exchange settlement of transferring interest, etc;

(3)

the foreign exchange settlement for domestic consumption is handled through foreign currency cards:

(4)

RMB banknotes is withdrawn at self-service banks with overseas cards; or

(5)

domestic cards are used overseas and repaid by purchasing foreign exchange overseas.

Article 36

When handling foreign exchange sale and settlement business for an individual, a bank shall follow the following process:

(1)

to inquire about the situation of foreign exchange sale and settlement of this individual through the personal foreign exchange sale
and settlement system;

(2)

to check and verify the evidential materials presented by this individual;

(3)

to record the business data on foreign exchange sale and settlement into the personal foreign exchange sale and settlement system
sum by sum; and

(4)

to print the Letter of Notice on Foreign Exchange Settlement/Purchase through the personal foreign exchange sale and settlement system
and maintain it as accounting voucher for future reference.

Article 37

The foreign exchange department shall take charge of checking and verifying the normative of the business operations of the banks
within its jurisdiction and the integrity and accuracy of the business data recorded.

Chapter VI Supplementary Provisions

Article 38

In case an individual entrusts his/her linear relative to deal with the purchase or settlement of foreign exchange within the total
annual amount, he/she shall present the valid identity certificates of both the entrusting party and the entrusted party, letter
of authority issued by the entrusting party and certificate on the linear relative relationship; if he/she entrusts other person
to deal with it on behalf o him/her under any other circumstance, he/she shall provide the related evidential materials prescribed
in the present Detailed Rules, in addition to the valid identity certificates of both the entrusting party and the entrusted party
and the letter of authority.

Linear relatives shall include parents, children and spouses. Certificate on linear relative relationship means the household register
or marriage certificate, which may prove the linear relative relationship, or any other valid certificate on linear relative relationship
issued by such governmental grass-root organizations as sub-district office, the public security department or the notarization department.

Article 39

If any bank or individual violates any provision of the Measures for the Administration on Individual Foreign Exchange and the present
Detailed Rules, it/he shall be punished by the foreign exchange department under the Regulations of the People’s Republic of China
on Foreign Exchange Control and other related provisions; if it is not explicitly provisioned in the Regulations of the People’s
Republic of China on Foreign Exchange Control or any other related provisions, a fine of not more than 30,000 Yuan shall be imposed
upon a bank and a fine of not more than 1000 Yuan upon an individual.

Article 40

The State Administration of Foreign Exchange shall be responsible for interpreting the present Detailed Rules.

Article 41

The present Detailed Rules shall go into effect as of February 1, 2007.


Appendix 1

￿￿

Appendix 1:

Filing Form for the Withdrawal of Foreign Currency Banknotes

￿￿






Name

￿￿

Nationality

￿￿

Type of Certificate and No.

￿￿

Type of Currency to Be Withdrawn and the Amount

￿￿

Name of the Bank

￿￿

Account Number

￿￿

Withdrawing Purpose

ANNOUNCEMENT NO.3, 2007OF THE MINISTRY OF COMMERCE ON THE NAME LIST OF COKE EXPORT ENTERPRISES

Announcement No.3, 2007of the Ministry of Commerce on the Name List of Coke Export Enterprises

[2007] No.3

According to the Announcement No.88, 2006 of the Ministry of Commerce on the 2007 Qualification Standards and Application Procedure
on Coke Export Enterprises, the Name List of Coke Export Enterprises for 2007(see Annex) is hereby publicized.

Annex: Name List of Coke Export Enterprises of 2007 (omitted)

The Ministry of Commerce

January 22, 2007

 
The Ministry of Commerce
2007-01-22

 



INTERIM PROVISIONS CONCERNING THE EXEMPTION OF IMPORT DUTIES FROM THE ARTICLES USED FOR THE DEVELOPMENT OF SCIENCE AND TECHNOLOGY

Decree No. 44 of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation

The Interim Provisions Concerning the Exemption of Import Duties from the Articles Used for the Development of Science and Technology
have been deliberated and adopted by the Ministry of Finance, the General Administration of Customs and the State Administration
of Taxation. They are hereby promulgated and shall go into effect as of February 1, 2007.The Interim Provisions Concerning the Exemption
of Import Duties from the Articles Used for Scientific Research and Teaching as approved by the State Council on January 22, 1997
and promulgated by Decree No. 61 of the General Administration of Customs on April 10, 1997 have been abolished simultaneously.
Minister Jin Renqing

Director Mou Xinsheng

Director Xie Xuren

January 31, 2007

Interim Provisions Concerning the Exemption of Import Duties from the Articles Used for the Development of Science and Technology

Article 1

For the purpose of promoting scientific research and technological development, pushing scientific progress, and regulating the duty-free
import of articles used for development of science and technology, the present Provisions are formulated in accordance with the decision
of the State Council concerning the approval of a the implementation of tax preferential policies for the import of articles used
for scientific research and teaching.

Article 2

The customs import duties, value-added taxes of the import link and consumption taxes shall be exempted, in case the following scientific
research and technological development institutes, before December 31, 2010 and within reasonable quantities, import the articles
for the development of science and technology which can not be made in China or whose performances can not meet the demand:

(1)

the enterprises restructured during the reform of scientific and technological system as verified and approved by the Ministry of
Science and Technology jointly with the Ministry of Finance, the General Administration of Customs and the State Administration of
Taxation, and the institutions entering into the enterprises and mainly engaging in scientific research or technological development;

(2)

the national project research centers as verified and approved by the National Development and Reform Commission jointly with the
Ministry of Finance, the General Administration of Customs and the State Administration of Taxation;

(3)

the enterprise technological centers as verified and approved by the National Development and Reform Commission jointly with the Ministry
of Finance, the General Administration of Customs and the State Administration of Taxation;

(4)

the national key laboratories and national project technological research centers as verified and approved by the Ministry of Science
and Technology jointly with the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation;
and

(5)

other institutions of scientific research and technological development as verified and approved by the Ministry of Finance jointly
with other related departments under the State Council.

Article 3

The specific scope of articles used for the development of science and technology that are exempted from import duties shall be determined
in accordance with the List of the Articles Used for the Development of Science and Technology That Are Exempted from Duties as attached
to the present Provisions.

The Ministry of Finance may, together with other relevant departments of the State Council, promptly adjust the List of the Articles
Used for Development of Science and Technology That Are Exempted from Duties on the basis of the demand for the articles used for
development of science and technology as well as the domestic production and development situation.

Article 4

The articles imported for the development of science and technology with the duties exempted in accordance with the present Provisions
shall be directly used for scientific research and technological development of the importing entity itself, and may not be illegally
transferred, used for other purposes or handled in other forms.

Article 5

The articles for scientific research and technological development as imported by those institutions as verified and approved by
the customs house with the duties exempted may be used by any other institution for the scientific research or technological development.

Article 6

In case any institution violates legal provisions by illegally transferring, misappropriating or disposing of in other forms the
articles imported for the development of science and technology with the duties exempted, it shall be punished in accordance with
the related provisions, and may not enjoy this tax preferential policy for one year; and if any crime is committed, the institution
concerned may not enjoy this tax preferential policy for three years.

Article 7

The General Administration of Customs shall, under the present Provisions, formulate the specific measures of the customs house for
implementation.

Article 8

The present Provisions shall go into effect as of February 1, 2007.

Appendix:
List of the Articles Used for the Development of Science and Technology That Are Exempted from Duties

(1)

analyzing, scaling, checking, measuring, observing and signaling instruments, meters and accessories thereof used for research, development
and scientific experiment;

(2)

laboratory equipment that may provide necessary conditions for scientific research and technological development (excluding pilot-scale
experiment equipments);

(3)

computer work stations, computers of medium or large scale;

(4)

special parts and fittings imported separately within the customs control period for maintaining the instruments, meters and equipments
that have been imported with the duties exempted in accordance with the present Provisions, or for improving and extending functions
of such instruments, meters and equipments;

(5)

books, newspapers and periodicals, lecture notes and computer software in various forms;

(6)

specimens and samples;

(7)

materials used for experiments;

(8)

animals used for experiments;

(9)

medical instruments and related accessories for research, development, scientific experiment and teaching (limited to medical colleges
or majors and technological development institutes);

(10)

fine varieties of plants and seeds limited to scientific research or technological development institutes engaging in agriculture
or forestry);

(11)

professional musical instruments and audio-video materials (limited to scientific research or technological development institutes
engaging in art);

(12)

sports appliances for specific purposes (limited to scientific research or technological development institutes engaging in sports);
and

(13)

sample cars which are not driven by petrol power or diesel-oil power and are used for research and development (limited to car research
and development institutes).

 
The Ministry of Finance, General Administration of Customs and State Administration of Taxation
2007-01-31

 



CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING GUANGZHOU NANSHA ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

Circular of the Ministry of Commerce on Entrusting Guangzhou Nansha Economic-Technological Area to Examine, Approve and Administer
the Relevant Work on Foreign-invested Enterprises in Some Service Trade Sectors

Shang Zi Han [2007] No. 9

Guangzhou Nansha Municipal People’s Government and Guangzhou Nansha Economic-Technological Area,

Pursuant to Some Opinions on Further Promoting the Development Level of National Economic and Technical Development Zones (Guo Ban
Fa [2005] No. 15) as forwarded by the General Office of the State Council to the Ministry of Commerce, the Ministry of Land and Resources
and the Ministry of Construction as well as the provisions of the Ministry of Commerce on the authorized examination, approval and
administration of foreign-funded enterprises, the Ministry of Commerce has finished the archival filing, examination and approval
of the management systems of all the national economic and technological development zones and the connected network for examination
and approval of foreign capital. The related matters are hereby notified as follows:

1.

Upon research, we hereby authorize the Management Committee of Guangzhou Nansha Economic-Technological Area to be responsible for
examining, approving and administrating the foreign-funded enterprises in related service trade sectors set up inside its zone for
the purpose of encouraging and supporting the national economic and technological development zones to vigorously develop the high
value-added service industries.

2.

The Management Committee of Guangzhou Nansha Economic-Technological Area shall, in strict accordance with the laws and regulations
on foreign investments as well as the related provisions on foreign-funded enterprises of non-vessel shipping, construction, printing,
construction engineering design, road transport, commerce and international freight forwarding (see appendix), carefully examine
and approve the related foreign-funded enterprises set up within its zone, and report the related problems found in the work to the
Ministry of Commerce in a timely manner. The Ministry of Commerce shall implement the inspection of the aforesaid examination, approval
and administration, and cancel the authorization to a national economic and technological development zone which commits illegal
examination and approval during the course of authorization.

3.

The Management Committee of Guangzhou Nansha Economic-Technological Area shall conduct a good job in examination and approval, archival
filing and statistical work in strict accordance with the requirements of the Ministry of Commerce for networking and online joint
annual inspection and by taking advantage of the networking certification system for foreign-funded enterprises. The related statistical
data shall be in line with the requirements so that the Ministry of Commerce can keep informed of the situation and strengthen supervision.

4.

Guangzhou Nansha Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance
department yet. Guangzhou Nansha Economic-Technological Area shall keep a close eye on and further resolve the problems in the management
system, keep a concise and efficient management system, and improve the level for examining, approving and administrating the foreign-funded
enterprises. Where any management system problem that may affect the work on examining, approving and administrating the foreign-funded
enterprises is found, this Ministry will withdraw the authorized power of examination, approval and administration immediately.

5.

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

Ministry of Commerce

February 12, 2007
Appendix:
Related documents on entrusting the competent provincial departments of commerce to examine, approve and Administer foreign-funded
service trade Enterprises

1.

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Foreign-funded
Non-vessel Shipping Enterprises (Shang Zi Han [2005] No. 89)

2.

Circular of the Ministry of Commerce on Entrusting the Provincial Administrative Departments of Commerce to Examine, Approve and Administer
the foreign-funded Construction Enterprises (Shang Zi Han [2005] No. 90)

3.

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Printing Enterprises (Shang Zi Han [2005] No. 91)

4.

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Designing Enterprises for Engineering Projects (Shang Zi Han [2005] No. 92)

5.

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Some Foreign-funded
Road Transport Enterprises (Shang Zi Han [2005] No. 93)

6.

Circular of the Ministry of Commerce on Entrusting Local Departments to Check Foreign-funded Commercial Enterprises (Shang Zi Han
[2005] No. 94)

7.

Circular of the Ministry of Commerce about the related Issues on Entrusting National Economic and Technical Development Zones to Examine
and Approve foreign-funded Commercial Enterprises and International Freight Forwarding Enterprises (Shang Zi Han [2005] No. 102)

8.

Measures for the Administration of Foreign-funded International Freight Forwarding Enterprises (Decree No. 19, 2005 of the Ministry
of Commerce)



 
Ministry of Commerce
2007-02-12

 






CIRCULAR OF THE FOREIGN INVESTMENT BUREAU OF THE STATE ADMINISTRATION OF INDUSTRY AND COMMERCE

Circular of the Foreign Investment Bureau of the State Administration of Industry and Commerce

On the Adjustment of Jurisdiction over Registration of Some Foreign-invested Enterprises and the Transfer of Archives

For the purpose of facilitating the registration and annul inspection of foreign-invested enterprises, regulating the jurisdiction
of registration and strengthening the administration and supervision, the Foreign Investment Bureau of the State Administration of
Industry and Commerce, upon discussion and deliberation, decides to transfer the jurisdiction of registration of some foreign-invested
enterprises (see Appendix for the Name List) to the authorized bureaus where the enterprises are located, and at the same time,
the registration archives of the above-mentioned enterprises shall also be transferred. The 2006 annual inspection shall be conducted
in the new authorized bureaus which are required to make a good preparation for the reception of archives, the change of business
licenses and the annual inspection.

Where there is any question in the enforcement, please contact the Registration Division of the Foreign Investment Bureau of the State
Administration of Industry and Commerce on a timely basis.

Person to be contacted: Wang Dan

Tel: 010-88650164

Fax: 010-68012268

Appendix:

Name List of 258 Foreign-invested Enterprises Whose Registration Authorities Are to Be Adjusted (Omitted)

Foreign Investment Bureau of the State Administration of Industry and Commerce

February 26, 2007



 
Foreign Investment Bureau of the State Administration of Industry and Commerce
2007-02-26

 






ANNOUNCEMENT NO.12, 2007 OF MINISTRY OF COMMERCE ON REGISTRATION OF ACETONE ANTI-DUMPING INVESTIGATION

Announcement No.12, 2007 of Ministry of Commerce on Registration of Acetone Anti-dumping Investigation

[2007] No.12

On Jan 9, 2005, Ministry of Commerce received applications of China Petroleum& Chemical Corporation Shanghai Gaoqiao Branch, Beijing
Yanshan Branch and Bluestar New Chemical Materials Co., Ltd. Harbin Branch, who represent China domestic Acetone industry to apply
for anti-dumping investigation on imported acetone originating from Japan, Singapore, South Korea, and Taiwan Region.

In accordance with relevant regulations of Anti-dumping Measures of the People’s Republic of China, Ministry of Commerce carried out
relevant investigations on applicant qualifications, related conditions of investigated products, related conditions of same category
products as well as influences of investigated commodities on domestic industry. In addition, Ministry of Commerce examined and approved
evidences listed in applications such as dumping, injuries, and causality between dumping and injuries. Preliminary evidences indicated
applicants were qualified to apply for anti-dumping investigation on related domestic industries in accordance with Article 11 ,
Article 13 and Article 17 of Anti-dumping Measures of the People’s Republic of China. The applications also contain required contents
and related evidences of Article 14 and Article 15 of Anti-dumping Measures of the People’s Republic of China on anti-dumping investigation
registration.

In accordance with above investigation results and Article 16 of Anti-dumping Measures of the People’s Republic of China, Ministry
of Commerce decides to carry out investigations on anti-dumping registration of imported acetone originating from Japan, Singapore,
South Korea, and Taiwan Region. Relevant matters are now announced as follows:

The investigation period is from Oct 1, 2005 to Sep 30, 2006 and the industry injury investigation period is from Jan 1, 2003 to Sep
30, 2006.

The scope of the commodity is imported acetone originating from Japan, Singapore, South Korea, and Taiwan Region., which is under
items 29141100 in PRC Customs Import Tariff Code.

This investigation starts on Mar 9, 2007, and usually will be ended before Mar 9, 2008. It may be prolonged to Sep 9, 2008 in case
of particularity.

Contact:

Ministry of Commerce Bureau of Fair Trade for Import and Export

Tel: 86-10-65198176, 65198497, 65198747

Fax￿￿86-10-65198172, 65198497, 65198164

Ministry of Commerce Bureau of Industry Injury Investigation

Tel: 86-10-65198068,65198478

Fax￿￿86-10-65198068

Ministry of Commerce

Mar 9, 2007



 
The Ministry of Commerce
2007-03-09

 






OPINIONS OF THE STATE ADMINISTRATION OF TAXATION UPON DOING WELL IN THE TAXATION SERVICE AND MANAGEMENT FOR THE OVERSEAS INVESTMENTS OF CHINESE ENTERPRISES

Opinions of the State Administration of Taxation upon Doing Well in the Taxation Service and Management for the Overseas Investments
of Chinese Enterprises

Guo Shui Fa [2007] No. 32

The state taxation bureaus and local taxation bureaus of each province, autonomous region, municipality directly under the Central
Government, and city specifically designated in the state plan,

For the purpose of implementing the instructions and ideas of the Central Government and the State Council regarding the encouragement
and regulation of the overseas investments of Chinese enterprises, and exercising the functions of tax, as regards doing well in
the taxation service and management for the overseas investments of Chinese enterprises, we hereby put forward the following opinions:

1.

The important role the tax plays in the encouragement and regulation of overseas investments of Chinese enterprises shall be realized
sufficiently

The Central Government and the State Council, in light of the new tendency for opening to the outside world and the overall situation
for China’s economic development, makes the “going out” strategy for encouraging and regulating overseas investments of Chinese enterprises,
which is an important strategic measure and favors making full use of both international and domestic resources and markets, widening
the room for development of national economy, developing Chinese enterprises in furious international competition, and ensuring a
sustainable and fast development of national economy. Taxation is an important means for structuring incomes, regulating the economy
and adjusting the allocation. It plays an important promotion role in encouraging and regulating overseas investments of Chinese
enterprises.

In recent years, for the purpose of cooperating with the implementation of the “going out” strategy, China has constantly improved
its tax policies, constituted and carried out the interim measures for calculating and collecting taxes on overseas incomes, and
has preliminarily set down the taxation management rules for the overseas investments of Chinese enterprises, made more effort on
concluding and carrying out tax treaties, set up the mechanism of exchanging the tax-related information, regulated mutual negotiation
procedures, provided Chinese overseas investment enterprises with good taxation services on settling tax disputes, and protected
the interests of such enterprises preferably. However, in comparison with the requirements for encouraging and regulating the overseas
investments of Chinese enterprises and administrating tax scientifically and carefully, the taxation service and management on the
overseas investments of Chinese enterprises still have a certain gap and thus need further improving and regulating.

Therefore, the taxation authorities at each level shall further improve the awareness of the importance of taxation service and management
on the overseas investments of Chinese enterprises, and shall, according to the requirements for optimizing services, improving policies,
regulating management and reinforcing cooperation, strengthening organization and leadership, specify functions, adopt practical
measures, and do well in the related work.

2.

Providing good taxation services for Chinese enterprises’ overseas investments

As the strategy of “going out” is implemented in the initial stage by China, and the overseas investments and the anti-risk ability
of Chinese enterprises are rather weak, the taxation authorities at each level shall comply with the principle of conducting the
management in the services and embodying the services in the management, provide a good taxation environment for Chinese overseas
investment enterprises in accordance with their requirements for taxation services, and have the taxation work defer to and serve
for the overall condition of China’s strategy of “going out”.

(1)

Constituting uniform taxation service guidelines for Chinese enterprises’ overseas investments. For encouraging and regulating Chinese
enterprises’ overseas investments, the aforesaid uniform taxation service guidelines will play an important guiding role, which mainly
include: tax treaties concluded between the governments of China and foreign countries as well as the interpretations thereof; current
tax policies and taxation administrative provisions of China concerning overseas investments and the rendering of labor services
to abroad; tax systems; and foreign countries’ laws on the administration of tax levying. The aforesaid uniform taxation service
guidelines will focus on offering countermeasures for tax-related disputes occurring when Chinese enterprises invest overseas and
render labor services abroad, the deduction measures when calculating and collecting taxes on overseas incomes, measures for reducing
and exempting overseas taxes, as well as the measures for making up the losses from overseas businesses, etc. The State Administration
of Taxation will take charge of Constituting uniform normalized taxation service guidelines for Chinese enterprises’ overseas investments,
and all the regions may, in light of their respective actuality and by referring to the said uniform taxation service guidelines,
constitute more pertinent service guidelines.

(2)

Smoothing out the tax propaganda and consultancy channels for Chinese enterprises’ overseas investments. The State Administration
of Taxation has opened a special column for propagandizing the tax for Chinese enterprises’ overseas investments at its portal so
as to publicize its taxation service guidelines; and all state taxation bureaus and local taxation bureaus at the provincial level
shall open a corresponding special propaganda and consultancy column at their respective portals, so as to help Chinese enterprises
timely know and grasp the tax-related laws, regulations, measures for administrating tax collection for overseas investments, and
conduct the taxation guidance for Chinese enterprises’ overseas investments. A special consultancy seat may be opened by any region
with a large number of Chinese overseas investment enterprises at the comprehensive service window in its tax service hall, so as
to provide the enterprises with fast, convenient and professional taxation consultancy services.

(3)

Reinforcing the taxation tutorship for Chinese overseas investment enterprises. The taxation authorities at each level shall conduct
various forms of taxation tutorship, and at a regular basis, hold special taxation trainings or special policy consultation meetings
to answer tax questions that concern Chinese overseas investment enterprises and provide more pertinent taxation services for such
enterprises. Tax functionaries in the competent enterprise taxation authority shall regularly visit such enterprises, acquaint with
and answer their tax problems encountered in the process of their overseas investments.

3.

Implementing and perfecting the tax policies for Chinese enterprises’ overseas investments

The implementation and perfection of taxation policies for Chinese enterprises’ overseas investments is an important measure for safeguarding
the encouragement and regulation of Chinese enterprises’ overseas investments. For which, a good job should be done in two aspects
as follows:

(1)

Making more efforts to implementing the tax policies for Chinese enterprises’ overseas investments. Each region shall, in accordance
with the Income Tax Law on Foreign-invested Enterprises and Foreign Enterprises and the detailed rules for the implementation thereof,
the Interim Regulation Concerning the Enterprise Income Tax and the detailed rules for the implementation thereof, the tax treaties
and the related provisions of foreign countries on calculating and levying incomes taxes, conduct an inspection on the implementation
of related tax policies for Chinese enterprises’ overseas investments, seriously implement the policies for calculating overseas
incomes, making up the losses, calculating taxable incomes, deducting overseas taxes as well as reducing and exempting overseas taxes,
etc., and handle the problems of non-fulfillment and ineffective fulfillment; and as regards the goods purchased by Chinese overseas
investment enterprises and shipped abroad for investments, each region shall, according to current provisions on the export tax refund,
timely handle the export tax refund.

(2)

Reinforcing the investigation and research, and perfecting the related tax policies. Each region shall increase the investigation
and research efforts for the implementation conditions of current tax policies for overseas investments, including the business situation
for the overseas investments, the implementation of related tax policies, particularly, the problems faced during the implementation,
the reasons for such problems, the settlement opinions and suggestions, and shall report them to the State Administration of Taxation
in a timely manner.

4.

Regulating and strengthening the administration of tax collection for Chinese enterprises’ overseas investments

As regards Chinese overseas investment enterprises, each region shall control its domestic tax sources, and at the same time, adopt
measures for reinforcing the administration of its overseas tax sources, as well as set down and implement the normalized tax management
rules and operational rules.

(1)

Setting down operational rules for administrating tax collection on Chinese enterprises’ overseas incomes. The State Administration
of Taxation will constitute the operational rules for administrating tax collection on overseas incomes and guide the grass-roots
taxation authorities to conduct the work according to current overseas income tax policies and management requirements as well as
the features of the occurrence of overseas incomes. Each region shall set down specific implementation measures by considering their
respective situation.

(2)

Regulating and strengthening the permanent household management. In accordance with legal provisions, an enterprise shall, when making
any overseas investment, go through the tax alteration registration in time at the competent tax authority; and each region shall,
on the basis of comprehensively changing tax registration certificates, conduct the inspections of the conditions on going through
the tax registration by Chinese overseas investment enterprises, keep informed of the enterprises’ overseas investments, and desist
collecting or administrating taxes by omission.

(3)

Regulating and strengthening the declaration of overseas incomes. Chinese overseas investment enterprises shall, in their annual tax
declarations, exactly reflect their overseas business profits, dividends, interests, royalties, property proceeds and other incomes;
and when making annual declaration of incomes tax, such an enterprise shall report to the competent taxation authority the organizational
structure and business situation, financial systems, financial statements for its overseas investment as well as the account auditing
report made by the certified accountants of the country where the investment is put. Each region shall urge the enterprises to fulfill
the obligation of reporting related materials and making tax declaration in time.

(4)

Regulating and strengthening the taxation inspection of overseas incomes. As regards main contents and features of the taxation administration
of Chinese enterprises’ overseas investments, all regions shall constitute operational rules for overseas income tax payment evaluation
and taxation inspection, find out and deal with tax risks in Chinese enterprises’ overseas investments in a timely manner; meanwhile,
shall make more efforts on the anti-tax avoidance of Chinese overseas investment enterprises, and focus on the audit of the incomes
from tax paradises and overseas subsidiaries subject to Chinese parent companies.

5.

Reinforcing the coordination and cooperation with all departments concerned

The taxation service and management on Chinese enterprises’ overseas investments involve the coordination and cooperation with plural
internal departments of taxation authorities, cannot run without the care and support of departments concerned in the governments
at each level, and still need the support and coordination of the taxation authorities around the world and related international
organizations. For doing a good job in the taxation service and management regarding the overseas investments of Chinese enterprises,
the reinforcement of departmental cooperation and even international cooperation plays an important role.

(1)

Reinforcing the internal cooperation with taxation authorities. As the taxation service and management on Chinese enterprises’ overseas
investments involve several internal departments of taxation authorities, the leaders thereof at each level shall pay more attention,
make overall plans and consider each factor, divide their work reasonably, specify their duties. And the international taxation management
department shall take the lead and the functions of other departments shall be exerted, so as to form a working situation that all
departments concerned are of one mind and make concerted efforts.

(2)

Reinforcing the cooperation with governmental departments concerned. The taxation authorities at each level shall set up an information
communication mechanism with the departments of commerce, foreign exchange, development and reform, customs, and trade promotion,
etc., so as to regularly exchange the information on Chinese enterprises’ overseas investments and coordinate to reinforce the cooperation
with other departments.

(3)

Reinforcing the international taxation cooperation. The State Administration of Taxation will further strengthen the cooperation with
and actively exchange information with the taxation authorities of the countries where Chinese enterprises invest; build a mutual
aid mechanism of tax collection administration with the countries where many Chinese enterprises invest, conduct taxation investigations
and the evidence obtaining work on Chinese enterprises’ overseas investments through authorized delegates’ visits and taxation inspections
for the same period; and will also reinforce the cooperation with international organizations such as UNDP and OECD, and bring into
full play such international conferences and mechanisms as the SGATAR meeting and the meeting of tax directors of 10 countries China
has joined in. All regions shall timely provide the State Administration of Taxation with the tax information and materials, submit
the business demands for international taxation cooperation, and do well in all work in relation to international taxation cooperation
in light of the uniform requirements made by the State Administration of Taxation.

All regions shall, prior to the end of October 2007, report its implementation of the present Opinions to the State Administration
of Taxation (International Taxation Department).

The State Administration of Taxation

March 20, 2007



 
The State Administration of Taxation
2007-03-20

 






ANNOUNCEMENT NO.17, 2007 OF MINISTRY OF COMMERCE, GENERAL ADMINISTRATION OF CUSTOMS AND STATE ENVIRONMENTAL PROTECTION ADMINISTRATION ON PROMULGATING COMMODITY CATALOGUE PROHIBITED FOR PROCESSING TRADE

Announcement No.17, 2007 of Ministry of Commerce, General Administration of Customs and State Environmental Protection Administration
on Promulgating Commodity Catalogue Prohibited for Processing Trade

[2007] No.17

In accordance with Import and Export Tariff of the People’s Republic of China and requirements of national macro-control, Ministry
of Commerce, General Administration of Customs and State Environmental Protection Administration formulated Commodity Catalogue Prohibited
for Processing Trade of 2007, which is now released. Related matters are announced as follows:

1.

The already released commodity prohibited for export is also applicable for processing trade.

2.

This announcement shall take effect as from Apr 26, 2007.

3.

If the newly-added commodities in this announcement should be approved for processing trade by department of commercial administration
before Apr 26, 2007, operators are allowed to apply for processing trade registration to Customs and finish contract in effective
period; the network supervision enterprises that take enterprise as administration unit shall finish the contract before Apr 5, 2008.
No prolonging shall be provided for failure of business in time limit. Such failure shall be dealt with in line with related regulations.

4.

If the newly-added commodities in commodity catalogue prohibited for export cannot be exported and need to be sold in domestic market,
enterprises shall follow Announcement No.52, 2006 of General Administration of Customs, Ministry of Finance, Ministry of Commerce
and People’s Bank of China to pay tax delay interest in line with current deposit interest rate of the People’s Bank of China in
the year before the date on tax payment warrant.

5.

This announcement also applies to special supervising districts of Customs such as export processing zone and bonded areas, however
enterprises established before release of this announcement are excluded.

6.

Besides commodities listed in this announcement, commodities like seeds, young plant, chemical fertilizer, feedingstuff, additives
and antibiotics that are imported for exported products of planting and breeding, are prohibited for processing trade. Processing
trade of commodities of imported commodities (such as obscene publications, harmful and radioactive industrial junks) are prohibited.

7.

In accordance with regulations of Law for Administration on Guns of the People’s Republic of China, simulation guns are prohibited
to be produced or exported by means of processing trade.

8.

As from the release of this announcement, Announcement No.105, 2005 of Ministry of Commerce, General Administration of Customs and
State Environmental Protection Administration, and Catalogue Prohibited for Processing Trade of Announcement No.63, 2066 and No.82,
2006 are terminated at the same time. Other regulations shall continue to take effect.

Appendix: Catalogue Prohibited for Processing Trade

Ministry of Commerce

General Administration of Customs

State Environmental Protection Administration

Apr 5, 2007



 
Ministry of Commerce, General Administration of Customs, State Environmental Protection Administration
2007-04-05

 






1...91011...16Page 10 of 16

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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