ANNOUNCEMENT NO.2, 2007 OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.2, 2007 of the General Administration of Customs of the People’s Republic of China

[2007] No.2

In accordance with the regulations of Anti-dumping Regulations of People’s Republic of China and the results of the anti-dumping investigation
on imported Sulfamethoxazole originated from India (hereinafter referred to as the investigated products), Ministry of Commerce made
the preliminary arbitration to implement temporary anti-dumping measures on the investigated products.

Matters concerning the above-mentioned measures are notified as follows:

As of February 1st, 2007, the investigated products shall be charged with deposit in security. Anti-dumping deposit = (price after
customs duty * rate of anti-dumping deposit)*(1+ rate of value-added tax of import)

Any unit applying for importing Sulfamethoxazole shall submit certificate of place of origin to the Customs. If the place of origin
is India, invoice of the original manufacturer shall be provided.

Issues concerned imposition of anti-dumping deposit shall be conducted in accordance with Announcement No. 9, 2001 of the General
Administration of Customs of the People’s Republic of China and Decree No. 111 of the General Administration of Customs of the People’s
Republic of China.

The Customs shall notify later about the transaction of the imposed anti-dumping deposit.

Any similar product for import could apply to Ministry of Commerce for the arbitration on whether it is under the temporary anti-dumping
measures. The Customs shall act accordingly.

Appendix:

Announcement No. 2, 2007 of Ministry of Commerce

Anti-dumping Deposit Ratio Table for Sulfamethoxazole

General Administration of Customs

January 31, 2007

General Administration of Customs
2007-01-31

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING GUANGZHOU 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 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. 11

Guangzhou Municipal People’s Government and Guangzhou 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:

Upon research, we hereby authorize the Management Committee of Guangzhou 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.

The Management Committee of Guangzhou 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.

The Management Committee of Guangzhou 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.

Guangzhou Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance
department yet. Guangzhou 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.

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

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)

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)

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)

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)

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)

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

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)

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

REGULATION ON THE NATIONAL NATURAL SCIENCE FUNDS

Decree of the State Council

No. 487

The Regulation on the National Natural Science Funds has been adopted at the 169th executive meeting of the State Council on February
14, 2007. It is hereby promulgated and shall enter into force as of April 1, 2007.
Premier Wen Jiabao

February 24, 2007

Regulation on the National Natural Science Funds
Chapter I General Rules

Article 1

In order to regulate the use and management of National Natural Science Funds, advance the efficiency in the use of National Natural
Science Funds, promote the basic research, cultivate science and technology talents, and intensify the independent innovation ability,
this Regulation is formulated in accordance with the Law of the People’s Republic of China on Scientific and Technological Progress.

Article 2

The state establishes the National Natural Science Funds, in order to subsidize the basic research as prescribed in the Law of the
People’s Republic of China on Scientific and Technological Progress.

Article 3

The National Natural Science Foundation is mainly funded by the allocations of the central treasury, and any donation from natural
persons, legal persons and other organizations is encouraged by the National Natural Science Foundation.

The central treasury will incorporate the national natural science funds into the budget thereof.

Article 4

The grants made by the National Natural Science Foundation shall comply with the principles of openness, justice and impartiality,
as well as the guidelines of respecting science, developing democracy, advocating competition, improving cooperation, prompting innovations
and guiding the future.

Article 5

When deciding the projects to be subsidized by National Natural Science Funds (hereinafter referred to as funded projects), the professionals
shall be brought into full play, and the mechanism of macro guidance, automatic application, equal competition, evaluation by the
experts working in the same field and selecting the best for support shall be adopted.

Article 6

The natural science fund management organ of the State Council (hereinafter referred to as fund management organ) shall have the
responsibilities of managing the National Natural Science Funds and surveilling the implementation of funded projects.

The science and technology competent authority of the State Council shall have the responsibilities of the macro administration and
overall coordination of the work concerning National Natural Science Funds. The finance competent authority of the State Council
shall administrate and surveil the budget and finance of National Natural Science Funds. And the audit department shall surveil the
use and management of National Natural Science Funds.

Chapter II Organization and Planning

Article 7

A fund development plan and the annual directory of funded projects shall be formulated by the fund management organ in light of
the plan for national economic and social development, the plan for scientific and technological development as well as the circumstance
of scientific and technological development. The fund development plan shall detail the fields to be developed with precedence, and
the annual directory of funded projects shall indicate the scope of projects to be supported with precedence. Exclusive funds shall
be set up under National Natural Science Funds for cultivating young science and technology talents.

The formulation of a fund development plan and the annual directory of funded projects by the Funds management organ shall widely
heed the opinions from the higher education institutions, scientific research institutions, academic groups, as well as related state
organs and enterprises, and organize related experts for scientific demonstrations. The annual directory of funded projects shall
be announced 30 days before the receipt of the applications for funded projects.

Article 8

The higher education institutions, scientific research institutions or any other public welfare institution that has the independent
legal person qualification and develops basic research within the territory of the People’s Republic of China may make registration
at the fund management organ as supporting institutions.

Where a supporting institution that has existed before the implementation of this Regulation requires to be registered as a supporting
institution, the registration shall be made by the fund management organ.

The fund management organ shall announce the names of registered supporting institutions.

Article 9

In the management work of fund granting, a supporting institution shall perform the duties as follows:

(1)

It shall organize applicants to apply for the subsides of National Natural Science Funds;

(2)

It shall examine the genuineness of the materials as submitted by applicants or project principals;

(3)

It shall provide the requirements for implementing the funded projects, and safeguard the time for project principals and participants
to carry out funded projects;

(4)

It shall follow up the implementation of funded projects, and surveil the use of Fund subsides; and

(5)

It shall cooperate with the fund management organ in surveilling and examining the implementation of funded projects.

The fund management organ shall guide and surveil the management work of supporting institutions relating to the granting of funds.

Chapter III Application and Evaluation

Article 10

Any science and technology talent in a supporting institution that satisfies the following requirements may apply for the National
Natural Science Funds:

(1)

He has the experiences of assuming the basic research topic or other basic research; and

(2)

He has a senior academic rank (post_title) or a doctoral degree, or has a recommendation from two science and technology persons who are
working in the same research field and have a senior academic rank (post_title).

Where a science and technology personnel that engages in basic research satisfies the requirements as prescribed in the preceding
paragraph, has no job or works for an entity that is not a supporting institution, if he has obtained the consent of a supporting
institution as registered at the fund management organ after negotiations, he may apply for the National Natural Science Funds under
this Regulation. The supporting institution shall deem him as a science and technology personnel of its own, and perform effective
management to him in accordance with this Regulation.

An applicant shall be the person in charge of an application for funded projects.

Article 11

An applicant that applies for the National Natural Science Funds shall determine the research project upon the annual directory of
funded projects, and submit an application in written form to the fund management organ through the supporting institution within
the time limit as prescribed.

An applicant that applies for the National Natural Science Funds shall submit the materials that may prove he has satisfied the requirements
as prescribed in Article 10 of this Regulation; in case of any special requirement in the annual directory of funded projects, the
applicant shall also submit the certification materials that prove he has satisfied the said requirements.

Where an applicant has obtained other subsides for the project research for which he is applying for the Funds subsides, the information
on the said subsidies shall be explained in the application materials. An applicant shall have the responsibilities of the genuineness
of the application materials he submits.

Article 12

The fund management organ shall complete the preliminary examination of application materials within 45 days as of the expiration
of the term for applying for funded projects. As regards an application that complies with this Regulation the fund management organ
shall accept it, and shall publicize the basic information on the applicant, the name of the supporting institution as well as the
name of the project for which the application for funded projects has been filed. In case of any of the following circumstances occurs
to an application, the fund management organ may not accept it, and shall inform the applicant through the supporting institution
in written form, and shall explain the reasons:

(1)

The applicant fails to satisfy the requirements as prescribed in this Regulation;

(2)

The application materials fails to comply with the requirements as mentioned in the annual directory of funded projects; or

(3)

The number of funded projects as applied for by the applicants is in excess of that as prescribed by the fund management organ.

Article 13

The fund management organ shall employ the experts that have a fairly high academic level and good professional ethics in the same
field to evaluate the applications for funded projects. The fund management organ shall formulate the specific measures for employing
evaluation experts.

Article 14

As regards the applications for funded projects that have been accepted, the fund management organ shall randomly choose three or
more experts from the database of experts working in the same field for a communication-based evaluation, and then organize the experts
for a meeting-based evaluation; and with respect to the applications for funded projects that are temporarily brought forward because
of specific demands of national economic and social development or other specific circumstances, the fund management organ shall
carry out only a communication-based evaluation or meeting-based evaluation.

An evaluation expert that finds it difficult to render an academic judgment or is too busy to make an evaluation for the applications
for funded projects shall timely inform the fund management organ, and the fund management organ shall choose another evaluation
expert for evaluation as required by this Regulation.

Article 15

With respect to an application for funded projects, an evaluation expert shall render an independent judgment and evaluation in terms
of scientific value, innovation, social influences as well as the possibility of research schemes, and bring forward the evaluation
opinions thereof.

When giving the evaluation opinions about the applications for funded projects, an evaluation expert shall also consider the research
experiences of the applicants and participants, the rationality of the plan for using the funds, the information on other grants
for research topics, the information on the implementation of the funded projects by the applicants as well as the necessity for
continuous subsidies.

The evaluation opinions as brought forward through the meeting-based evaluation shall be determined by voting.

Article 16

As regards an application for a funded project on which most of evaluation experts in the communication-based evaluation believe
that the fund may not be granted, but this project involves many innovations, and a meeting-based evaluation may be performed if
two evaluation experts that participate in the meeting-based evaluation have signed recommendation for it, unless it is an application
for a funded project that is temporarily submitted because of special demands or circumstances as prescribed in Article 14 of this
Regulation.

The fund management organ shall publicize the recommendation opinions that are brought forward by evaluation experts.

Article 17

The fund management organ shall determine the research projects to be funded in accordance with this Regulation and the evaluation
opinions brought forward by experts, and may not deny the evaluation opinions brought forward by experts on the ground that it has
different academic viewpoints from those of evaluation experts.

Where the fund management organ determined to grant a fund, it shall timely inform the applicant and the supporting institution in
written form, and publicize the basic information on the applicant, the name of the supporting institution, the name of the project
for which an application for funded projects has been submitted, and the amount of the fund to be granted; in case it determined
not to grant a fund, it shall timely inform the applicant and the supporting institution in written form, and explain the reasons.

The fund management organ shall sort out the evaluation opinions of experts and provide them to the applicant.

Article 18

Where an applicant does not satisfy with the decision on refusal to accept his application or to fund his project as made by the
fund management organ, he may submit a request for reexamination to the fund management organ in written form within 15 days upon
receipt of the circular. The different opinions on the academic judgment of evaluation experts as held by an applicant may not be
deemed as the reasons for requesting the reexamination.

The fund management organ shall complete the reexamination within 60 days as of receipt of a reexamination request as submitted by
an applicant. Where the fund management organ deems that the former decision is consist with this Regulation, it shall maintain the
former decision and inform the applicant in written form. Where the fund management organ deems that the former decision is not consist
with this Regulation, it shall annul the former decision, organize evaluation experts to evaluate the application for the funded
project as submitted by the applicant again, make a decision, and inform the result to the applicant and the supporting institution
in written form.

Article 19

In the evaluation of funded projects, a personnel of the fund management organ or an evaluation expert shall apply for withdrawal
in case of any circumstance as follows:

(1)

The personnel of the fund management organ or the evaluation expert is a close family member of the applicant or participant or has
any other relation which may affect the fair evaluation;

(2)

The funded project as submitted by an evaluation expert himself is identical with the one as submitted by the applicant or is close
to it; or

(3)

The evaluation expert and the applicant or participant work for a same legal person entity.

The fund management organ shall, according to the application, make a decision on whether to withdraw or not upon examination, or
may directly make such a decision without an application.

An applicant for funded projects may provide a name list of three or less evaluation experts that are not suitable for evaluation,
and the fund management organ shall the said name list upon the actual circumstance when selecting evaluation experts.

Article 20

Any personnel of the fund management organ may neither apply for or participate in the application for the National Natural Science
Funds, nor may he interfere the evaluation of evaluation experts.

Any personnel of the fund management organ or evaluation expert may neither reveal the basic information with respect to evaluation
experts, evaluation opinions, evaluation results or other information on the evaluation that has not been revealed.

Chapter IV Grant of Funds and Implementation

Article 21

A supporting institution and a project principal shall fill in a project plan in light of the evaluation opinions of evaluation experts
and the amount of fund as determined by the fund management organ within 20 days as of the receipt of a circular on the grant of
fund as issued by the fund management organ, and submit it to the fund management organ for examination and approval.

When filling in a project plan, a supporting institution and a project principal may not alter other contents in the application form
except that they do so under the evaluation opinions of evaluation experts or the amount of fund as determined by the fund management
organ.

Article 22

As regards the research projects to be funded in this year, the fund management organ shall apply to the finance competent authority
of the State Council for budgetary allotments to funded projects in a timely manner in accordance with the Budget Law of the People’s
Republic of Chin and other related provisions of the state, unless for those funded projects that are temporarily brought forward
because the specific demands or other specific circumstances as prescribed in Article 14 of this Regulation.

A supporting institution shall inform the fund management organ and the project principal thereof within seven days as of the receipt
of fund.

A project principal shall use the funds as required in the project plan, and a supporting institution shall surveil the project principal’s
use of the funds. No project principal or supporting institution may infringe or misappropriate the funds by any means. The specific
measures for the use and management of funds subsides shall be formulated by the finance competent authority of the State Council
and the fund management organ.

Article 23

A project principal shall organize and implement the research work in light of the project scheme, make original records on the implementation
of the funded project, and submit an annual progress report concerning the project to the fund management organ.

A supporting institution shall inspect the annual progress reports concerning the funded projects, check the original records on the
implementation of the funded projects, and file the annual reports concerning the management on funded projects to the fund management
organ.

The fund management organ shall inspect the annual progress reports on the projects and the annual reports concerning the management
on funded projects.

Article 24

The supporting institution may not change the project principal without approval while a funded project is implemented.

In case of any of the following circumstances occurs to a project principal, the supporting institution shall submit an application
for altering this project principal or terminating the implementation of the funded project in a timely manner, and report it to
the fund management organ for approval; and the fund management organ may directly make a decision concerning terminating the implementation
of the funded project:

(1)

He is a science and technology personnel of the supporting institution no more;

(2)

He can not implement the research work continuously; or

(3)

He steals the scientific research achievements of someone else or resorts to fraud in scientific research.

Where a project principal shifts his post to another supporting institution, the former supporting institution may submit an application
for altering the supporting institution to the fund management organ for approval upon negotiations between the new supporting institution
and the former supporting institution. If it fails to reach unanimity between the new supporting institution and the former supporting
institution upon negotiations, the fund management organ shall make a decision on terminating the implementation of the funded project
under the charge of the said project principal.

Article 25

Where it is necessary to make some major adjustments to the research contents or research plans during the process of implementation
of a funded project, the project principal shall timely submit an application, and apply to the fund management organ for approval
upon examination of the supporting institution.

Article 26

A project principal shall submit a concluding report to the fund management organ through the supporting institution within 60 days
as of the expiration of the funded project; and as regards a funded project that obtains the research achievements, a research achievement
report shall be submitted at the same time.

A supporting institution shall verify the concluding report and establish the archives on funded projects. When examining a concluding
report, a supporting institution shall check the original records on the implementation of the funded project.

Article 27

The fund management organ shall examine the concluding reports in a timely manner. As regards a concluding report the finalizing
topics of which fails to satisfy the requirements, the fund management organ shall give its opinions and notify them to the supporting
institution and the project principal in written form.

The fund management organ shall announce the abstracts of the concluding reports, research achievement reports and applications for
funded projects, and solicit the comments and opinions of the general public.

Article 28

Where any funded project obtains the research achievements, it shall indicate that it is funded by the National Natural Science Foundation
when it is publicized.

Chapter V Surveillance and Administration

Article 29

The fund management organ shall take a sample survey on the implementation of the funded projects and the performance of duties by
the supporting institutions, and shall check the original records on the implementation of the funded projects at the time of survey.
The results of sample survey shall be recorded and publicized, and can be consulted by the general public.

The fund management organ shall set up archives on the credits of project principals and supporting institutions.

Article 30

The fund management organ shall regularly assess the performance of appraising duties by evaluation experts, and set up archives
on the credits of evaluation experts according to the evaluation results; and may not employ those who have stolen scientific research
achievements of others or resorted to fraud in scientific research.

Article 31

At the end of each accounting year, the fund management organ shall publish the funded projects, the allotment of funds and the punishments
to those acts against this Regulation, etc. in this year.

The fund management organ shall assess the work on the grant of funds at regular intervals, publish the evaluation reports, and regard
the evaluation reports as the evidence for formulating the fund development plan and the annual directory of funded projects.

Article 32

The applicant may show his opinions to the fund management organ concerning the evaluation work of evaluation experts after the evaluation
experts have brought forward their evaluation opinions on an application for a funded project as submitted by an applicant; and the
fund management organ shall consider the opinions of this applicant when evaluating the performance of appraising duties by evaluation
experts.

Any entity or individual may tip off or accuse any act in violation of this Regulation as committed by the fund management organ or
any of the personnel thereof, any evaluation expert, supporting institution, person in charge of the management of funded projects,
applicant or project principal.

The fund management organ shall publicize its contact phone numbers, address and e-mail address.

Article 33

The related information as publicized by the fund management organ as prescribed by this Regulation shall be identical with the confidentiality
provisions of the state.

Chapter VI Legal Liabilities

Article 34

Where an applicant or participant forges or changes any application materials, he shall be given a warning by the fund management
organ; and if the application for fund thereof has been determined to be granted, the original decision on fund granting shall be
annulled, and the allotted funds shall be recovered; in case of any serious circumstance, the applicant or participant may not apply
for the National Natural Science Funds or be concerned with the application for the Funds for 3 up to 5 years, nor may he be promoted
to a higher academic technical rank (post_title).

Article 35

In case of any of the following acts in violation of this Regulation as committed by a project principal or participant, a warning
shall be given, the allotment of Funds subsides shall be suspended, and he shall be ordered to make correction within a time limit;
if he fails to make correction within the time limit, the original decision on fund granting shall be annulled, and the allotted
funds shall be revoked; in case of any serious circumstance, the applicant or participant may not apply for the National Natural
Science Funds or participate in the application for the Funds for 5 up to 7 years:

(1)

He fails to perform research in light of the project plan;

(2)

He alters the research contents or plans without approval;

(3)

He fails to submit an annual progress report, concluding report or research achievement report on the project in accordance with this
Regulation;

(4)

He submits any false or invented report, original records or related materials; or

(5)

He occupies or misappropriates the funds.

The project principal or participant that commits any act referred to in Subparagraph (4) or (5) of the preceding paragraph may not
be promoted to a higher academic rank (post_title) for 5 up to 7 years under any serious circumstance.

Article 36

In case of any following circumstance occurs to a supporting institution, the fund management organ shall give it a warning and order
it to make correction within a time limit; in case of any serious circumstance, a circular of criticism shall be publicized and the
said institution may not be taken as the supporting institution for 3 up to 5 years:

(1)

It fails to perform the duty of guaranteeing the research conditions for the funded project;

(2)

It fails to examine the genuineness of the materials or reports as submitted by applicants or project principals;

(3)

It fails to submit an annual progress report, concluding report or research achievement report on the projects in accordance with
this Regulation;

(4)

It connives and harbors any applicant or project principal in their fraudulent activities;

(5)

It changes the project principals without approval;

(6)

It refuses to cooperate the fund management organ to surveil and inspect the implementation of the funded projects; or

(7)

It retains or misappropriates any of the funds.

Article 37

In case of any of the following acts committed by an evaluation expert, the fund management organ shall give him a warning and order
him to make correction within a time limit; in case of any serious circumstance, a circular of criticism shall be publicized and
the fund management organ may not employ him as an evaluation expert:

(1)

He fails to perform the appraising duties as prescribed by the fund management organ;

(2)

He fails to apply for withdrawal in accordance with this Regulation;

(3)

He reveals the information on the evaluation that has not been publicized;

(4)

He makes unfair evaluation of the applications for funded projects; or

(5)

He seeks unjustifiable interests by taking advantage of such work.

Article 38

In case of any of the following acts committed by a personnel of the fund management organ, he shall be punished:

(1)

He fails to apply for withdrawal in accordance with this Regulation;

(2)

He reveals the information on the evaluation that has not been publicized;

(3)

He interferes the evaluation work of evaluation experts; or

(4)

He seeks unjustifiable interests by taking advantage of such work.

Article 39

In case of any of the following acts in violation of this Regulation committed by any entity or individual, and if a crime is constituted,
he shall be subject to criminal liabilities:

(1)

He embezzles or misappropriates any of the funds;

(2)

Any personnel of the fund management organ or an evaluation expert exacts or illegally accepts the properties of others or seeks for
other unjustifiable interests when performing the duty as prescribed in this Regulation;

(3)

An applicant, a project principal or participant forges or changes the official documents, certificates or seals of state organs;

(4)

An applicant, a project principal or participant, a supporting institution or any of its staff members in charge of the management
of funded projects provides any property or money to any personnel of the fund management organ in order to seek for unjustifiable
interests, or

(5)

He divulges state secrets.

Where an applicant, a project principal or participant has been subjected to criminal liabilities due to his committing any act as
prescribed in the preceding paragraph, he may not apply for the application for the National Natural Science Funds or be concerned
with the Funds for life.

Article 40

Anyone that is in violation of the related laws or administrative regulations on finance shall be punished and sanctioned in accordance
with related laws or administrative regulations.

Chapter VII Supplementary Rules

Article 41

As regards the research projects that the subsides have been granted upon decision before the implementation of this Regulation,
it shall be implemented in accordance with the related provisions of the state that were in force when the decision was made.

Article 42

As regards the work on the grant of funds relating to the use and management of the organization and implementation fees for projects
or the subsidies for academic exchanges on basic research and for basic research environment construction, the fund management organ
shall implement the related provisions of the finance competent authority of the State Council.

Article 43

This Regulation shall enter into force as of April 1, 2007.

State Council
2007-02-24

REPLY OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE TAX EXEMPTION OF HONG KONG OCEAN PARK, GUANGZHOU REPRESENTATIVE OFFICE

Reply of the State Administration of Taxation Concerning the Tax Exemption of Hong Kong Ocean Park, Guangzhou Representative Office

Guo Shui Han [2007] No.273

The State Taxation Bureau of Guangdong:

We have received your Request for Instructions upon Matters about the Tax Exemption of Hong Kong Ocean Park, Guangzhou Representative
Office (Yue Guo Shui Fa [2006] No.260), and make a reply as follows:

The Guangzhou Representative Office of Hong Kong Ocean Park was set up in 2006, and mainly undertakes the liaison and consultation
work on the head office’s related e business. A certificate produced by the Hong Kong Tax Authority proves that the head office,
Hong Kong Ocean Park, is a non-profitable institution. In accordance with the provisions of the Circular of the State Administration
of Taxation Concerning the Related Matters about Reinforcing the Collection and Administration of Taxes on the Permanent Establishments
of Foreign Enterprises (Guo Shui Fa [1996] No.165) and the Circular of the State Administration of Taxation Concerning the Related
Matters about the Tax Administration of the Permanent Establishments of Foreign Enterprises (Guo Shui Fa [2003] No.28), as regards
the business activities conducted by Hong Kong Ocean Park, Guangzhou Representative Office, business tax and enterprise income tax
shall be exempted as long as they fall within the scope as prescribed in Item (2), Paragraph 2 of Article 1 of the Document (Guo
Shui Fa [1999] No.165).

The State Administration of Taxation

March 6, 2007

The State Administration of Taxation
2007-03-06

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ISSUES CONCERNING FOREIGN EXCHANGE CONTROL RELATING TO THE RESTRUCTURING OF FOREIGN-FUNDED BANKS

Circular of the State Administration of Foreign Exchange on Issues concerning Foreign Exchange Control Relating to the Restructuring
of Foreign-funded Banks

Hui Fa [2007] No.15

The branches and foreign exchange departments of the State Administration of Foreign Exchange in each province, autonomous region
and municipality directly under the Central Government, as well as the municipal branches of the State Administration of Foreign
Exchange in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

According to the Regulation of the People’s Republic of China on the Administration of Foreign-funded Banks as promulgated by the
State Council on November 11, 2006, the related issues concerning foreign exchange control relating to the restructuring of the branches
of foreign banks are hereby notified as follows:

Business qualification

A restructured solely foreign-funded bank shall succeed to the qualification of the original foreign bank branch that has been approved
for developing spot foreign exchange settlement and sale, forward foreign exchange settlement and sale, RMB and foreign currency
swap as well as other derivative business between RMB and foreign currencies, etc., and shall go through the registration alteration
formalities at the branch of the State Administration of Foreign Exchange (including foreign exchange department, hereinafter referred
to as foreign exchange branch) at the place where it is located. A branch of the solely foreign-funded bank shall succeed to its
own qualification for developing the related settlement and sale business as well as the derivative business between RMB and foreign
currencies as approved before the restructuring of bank, and shall go through the registration alteration formalities at the foreign
exchange branch of the place where it is located.

A restructured solely foreign-funded bank shall assume the membership of the original foreign bank branch in the foreign exchange
market. A solely foreign-funded bank that assumes the membership in the inter-bank spot foreign exchange market shall go through
the registration alteration formalities at China Foreign Exchange Trading Center; a solely foreign-funded bank that assumes the forward
foreign exchange trading qualification or the inter-bank RMB and foreign currency swap trading qualification shall go through the
registration alteration formalities at the State Administration of Foreign Exchange after reporting the alteration information to
China Foreign Exchange Trading Center for preliminary examination; a solely foreign-funded bank that assumes the qualification of
market maker for the transactions between RMB and foreign currencies in the inter-bank foreign exchange market shall submit the information
about alteration to the State Administration of Foreign Exchange for archival filing.

With respect to the restructuring of a foreign bank branch that has obtained the custodian qualification for QFII, the successor of
the custodial qualification shall be applied for approval to the State Administration of Foreign Exchange. If the successor is a
solely foreign-funded bank, it shall go through the registration alteration formalities at the State Administration of Foreign Exchange;
if the successor is a foreign bank branch reserved for developing the wholesale business of foreign exchange (hereinafter referred
to as book-keeping bank), it shall apply to the State Administration of Foreign Exchange for archival filing.

Where a solely foreign-funded bank is restructured from a foreign bank branch with QDII business qualification, it may directly succeed
to the QDII quota.

Administration of Synthetic Positions in Foreign Exchange Settlement and Sale

The State Administration of Foreign Exchange and the branches thereof shall manage the synthetic positions in the foreign exchange
settlement and sale of solely foreign-funded banks by following the current management style. A solely foreign-funded bank may assume
the limit of synthetic position in foreign exchange settlement and sale of the original foreign bank branch. In case of any adjustment
to the limit of synthetic position in foreign exchange settlement and sale by any solely foreign-funded bank, it shall, according
to its own capital status, send an application to the foreign exchange branch of the place where it is located subject to the Circular
of the State Administration of Foreign Exchange on the Measures for Adjusting the Administration of Synthetic Positions in the Foreign
Exchange Settlement and Sale of Banks (Hui Fa [2005] No. 69), Circular of the Comprehensive Department of State Administration of
Foreign Exchange on Related Issues concerning the Verification of the Limit of Synthetic Positions in the Foreign Exchange Settlement
and Sale of Banks (Hui Zong Fa [2005] No.118) and other related provisions.

With respect to a book-keeping bank that did not practice uniform management on synthetic positions in foreign exchange settlement
and sale prior to the restructuring, it may assume the limit of synthetic position in foreign exchange settlement and sale of the
original foreign bank branch. As for a book-keeping bank that has practiced uniform management on synthetic position in foreign exchange
settlement and sale before the restructuring, it shall apply to the foreign exchange branch of the place where it is located for
re-examining the limit of synthetic position in foreign exchange settlement and sale along with the related materials.

Transfer of foreign exchange capital and swap between RMB and foreign currencies

The transfer of foreign exchange working capital between a restructured solely foreign-funded bank and the branches thereof may be
handled by the bank independently. As for the swap of the (working) capital of a solely foreign-funded bank between RMB and foreign
currencies, it shall apply for approval to the foreign exchange branch of the place where it is located in advance pursuant to the
Circular of the State Administration of Foreign Exchange on the Banks’ Own Capital and the Principles and Procedure for the Examination
and Approval of Foreign Exchange Settlement and Sale of Financial Projects (Hui Fa [2004] No.61) and other related provisions. With
respect to any bank that has annually accumulated (working) capital swapped between RMB and foreign currencies in excess of the equivalent
amount of 500 million yuan (including 500 million yuan) shall apply to the foreign exchange branch for preliminary examination, and
then it shall be submitted to the State Administration of Foreign Exchange for approval.

Accounting items for foreign exchange settlement and sale

In accordance with the Interim Measures for the Administration of Foreign Exchange Settlement and Sale Operations by Designated Foreign
Exchange Banks (Decree No. 4, 2002 of the People’s Bank of China), a restructured solely foreign-funded bank shall establish independent
accounting items for foreign exchange settlement and foreign exchange sale, it shall respectively treat foreign exchange settlement
and sale for the clients, foreign exchange settlement and sale for self-purpose, sale of exceeding foreign exchange settlement and
sale position within the system, as well as sale of exceeding foreign exchange settlement and sale position in the market, and carry
out accounting treatment under the accounting item for foreign exchange settlement and that for foreign exchange sale separately.
A solely foreign-funded bank that fails to meet the aforesaid requirements by the end of the preparatory work of restructuring shall
comply with the requirements within two years as of its opening as approved by China Banking Regulatory Commission.

Management on surplus quotas for short-term external debts and overseas guarantee

A restructured solely foreign-funded bank shall inherit the original foreign bank branch’s quotas for short-term external debts and
the quotas for offering financing guarantee for Chinese-invested enterprises outside the territory of China, and shall apply for
archival filing to the State Administration of Foreign Exchange and the foreign exchange branch of the place where it is located.
The registration of creditor’s rights, debts and overseas guarantees handled by the original foreign bank branch shall be altered
to be under the name of the solely foreign-funded bank accordingly. The bank shall apply for handling the registration alteration
of overseas debts to the State Administration of Foreign Exchange once and for all. With respect to the registration alteration of
overseas guarantee and domestic foreign exchange loans, the guarantor or the creditor bank shall apply for handling the alteration
to the foreign exchange branch of the place where it is located once and for all.

Where an bank outside the territory of China sets up an solely foreign-funded bank and a book-keeping bank within the territory of
China simultaneously, the surplus quotas that is for short-term external debts and for providing financing guarantee for Chinese-invested
enterprises outside the territory of China may be used by both the solely foreign-funded bank and the book-keeping bank, and the
solely foreign-funded bank shall assume the management duties accordingly.

When going through the registration alteration or filing of all the aforesaid businesses, an applicant shall submit a application
in written form, document as approved for the opening thereof by China Banking Regulatory Commission, the related documents as approved
for its qualification for carrying out such business by the State Administration for Foreign Exchange and other documents as required
by the State Administration for Foreign Exchange. All foreign exchange branches shall simplify the procedures for approving the registration
alteration.

As of the receipt of this Circular, all foreign exchange branches shall transmit it to the sub-bureaus and foreign-funded banks within
their respective jurisdictions. In case of any problem in the implementation of this Circular, please timely feed it back to the
State Administration of Foreign Exchange.

Tel:

Department of Balance of Payments: 01068402464, 68402311;

Fax: 01068402315, 68402303

Capital Account Management Department: 01068402247, 68402348;

Fax: 01068402208, 68402349

The State Administration of Foreign Exchange

March 20, 2007

The State Administration of Foreign Exchange
2007-03-20

OFFICIAL REPLY OF CHINA INSURANCE REGULATORY COMMISSION CONCERNING SUCH MATTERS AS THE DETERMINATION OF INSURANCE VALUE

Official Reply of China Insurance Regulatory Commission Concerning Such Matters as the Determination of Insurance Value

Bao Jian Ting Han [2007] No.71

The Insurance Regulatory Bureau of Inner Mongolia:

We have received your Request for Instructions on Such Issues as the Determination of Insurance Value (Nei Bao Jian Fa [2007] No.24).
Upon study, we hereby reply as follows:

As regards the term “insurance value”, at present, there is not any clear definition in any legislation. In accordance with the interpretations
on the Insurance Terms formulated by China Insurance Standardization Technical Committee, insurance value means the value of insurance
object as stipulated by both parties and indicated in the insurance contract or the actual value of insurance subject matter at the
time when the insurance accident occurs.

In accordance with provisions of Article 40 of the Insurance Law, two ways may be adopted for determining the insurance value of
an insurance subject matter, namely, either be stipulated by the insured and the insurer and indicated in the insurance contract
or be determined in accordance with the actual value of the insurance subject matter when insurance accident occurs. The former means
valued insurance and the latter means unvalued insurance. In actual practice, attention shall be paid to whether stipulation in the
insurance contract is about the insurance amount or the insurance value of insurance subject matter.

The term “replacement value” means the value or expenses spent for replacing damaged property with the same or similar substance and
quality, which is a method for deciding insurance value in property insurance.

The term that “the insurance value of fixed assets shall be the replacement value at the time when insurance accident occurs” means
that the insurance value of fixed assets shall be decided in accordance with the replacement value as provided for in the basic insurance
clauses of life insurance or property insurance.

As regards an insurance, the insurance amount of which is determined by way of price appraisement, after an insurance accident occurs,
the insurance value shall be decided in accordance with the actual value of insurance object at the time when the insurance accident
occurs.

China Insurance Regulatory Commission

April 3, 2007

China Insurance Regulatory Commission
2007-04-03

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:

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.

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.

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.

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.

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:

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.

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.

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 enterprises 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

1 234...16 Page 3 of 16

Federal Acts

Act on Proceedings in Family Matters and in Matters of Non-contentious Jurisdiction

Act on Occupational Physicians, Safety Engineers and Other Occupational Safety Specialists

ANNOUNCEMENT NO.2, 2007 OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

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

REGULATION ON THE NATIONAL NATURAL SCIENCE FUNDS

REPLY OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE TAX EXEMPTION OF HONG KONG OCEAN PARK, GUANGZHOU REPRESENTATIVE OFFICE

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ISSUES CONCERNING FOREIGN EXCHANGE CONTROL RELATING TO THE RESTRUCTURING OF FOREIGN-FUNDED BANKS

OFFICIAL REPLY OF CHINA INSURANCE REGULATORY COMMISSION CONCERNING SUCH MATTERS AS THE DETERMINATION OF INSURANCE VALUE

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

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

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

CONSTITUTION ACT, 1982 – page 22

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CONSTITUTION ACT, 1982 – page 16

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CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7