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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

 






MEASURES FOR THE ADMINISTRATION OF INFORMATION DISCLOSURE OF COMMERCIAL FRANCHISES

Decree No.16 of the Ministry of Commerce of the People’s Republic of China No.16

Measures for the Administration of Information Disclosure of Commercial Franchises have been discussed and adopted at the 6th executive
meeting of the Ministry of Commerce on April 6 2007. They are hereby promulgated and shall come into effect as of May 1, 2007. Minister Bo Xilai April 30, 2007 Measures for the Administration of Information Disclosure of Commercial Franchises Article 1 For the purpose of safeguarding the legitimate rights and interests of franchisers and franchisees, these Measure are formulated under
the Regulations for the Administration of Commercial Franchises (hereinafter referred to as the Regulations) Article 2 These Measures apply to commercial franchise activities within the territory of the People’s Republic of China. Article 3 The associated company herein refers to the parent company of the franchiser, subsidiary company which the franchiser owns directly
or indirectly all or the controlling interest thereof, company which the same owner owns all or the controlling interest with the
franchiser directly or indirectly. Article 4 The franchiser shall disclose the information as stipulated in Article Five in writing to the franchisee within at least 30 days before
the day the franchise contract is signed based on the requirement of the Regulations, and provide the franchise contract. Article 5 The information disclosed by the franchiser shall include the following: 1. The basic information on the franchiser and franchise activities (1) Franchiser’s name, address, contact details, legal representative, general manager, registered capital, scope of business, and the
number of regular chains as well as their addresses and phone numbers. (2) A brief introduction to the commercial franchise activities of the franchiser. (3) Basic information on archival filing of the franchiser. (4) If the franchiser’s associated company provides products and services to the franchisee, the associated company’s basic information
shall be disclosed. (5) Information on the bankruptcy and application for bankruptcy of the franchiser or of its associated company in the latest five years. 2. The basic information on the business resources of the franchiser (1) Provide the franchisee with the information on business resources available such as registered trademark, enterprise symbol, patent,
proprietary technology, and business mode, etc. (2) If the owner of the above-mentioned business resources is the associated company of the franchiser, then the basic information of
the associated company shall be disclosed, and the franchiser shall also explain how to handle the franchise system once the concession
contract is rescind. (3) The information about business resources of the franchiser (or its associated company) involving in litigation or arbitration, such
as the registered trademark, enterprise symbol, patent, and proprietary technology, etc. 3. Basic information on the franchise expenditure (1) If the types, amount, criteria and payment mode of the fees collected by the franchiser or on behalf of the third party cannot be
disclosed, then the franchiser shall explain the reason; if the standards to collect fees are not consistent, then the franchiser
shall disclose the maximum and minimum standards, and explain the reason. (2) The collection, return conditions, return time, and return mode of the margin. (3) If the franchisee is required to pay the fee before the franchise contract is made, then the franchiser shall explain in writing to
the franchisee the use of the fee and the conditions and mode to return the fee. 4. Information on prices and conditions of the products, services and equipment provide for the franchisee. (1) Whether the franchisee must purchase products, services or equipment from the franchiser (or its associated company), as well as the
prices and conditions. (2) Whether the franchisee must purchase products, services or equipment from the suppliers appointed or approved by the franchiser. (3) Whether the franchisee can choose other suppliers and the conditions that the suppliers must be equipped with. 5. Information on providing continuous services to the franchisee. (1) Detailed content, way of provision and implementation plans for professional training, including the location, approach and length
of the training. (2) Detailed content of the technical support, the catalogue of operation manual of franchise, and the number of pages. 6. The methods and content of guidance and supervision over the franchise activities of the franchisee. (1) The franchiser’s methods and content of guidance and supervision over the franchise activities of the franchisee, the franchisee’s
obligations, and the consequences of failure to fulfill them. (2) Whether the franchiser shall shoulder joint liability for the complaints and compensations of the consumers, and how to take the liability. 7. Information on investment budget of the franchise network (1) Expenditure on the investment budget may include the following: initial fee; training fee; real estate and decoration fee, procurement
fee of equipment, office supplies, furniture, etc; initial inventory; water, electricity and gas fees; fees needed to obtain license
and other government approvals; and working capital. (2) The statistical source and basis for estimation of the above-mentioned fees 8. Information on the franchisee within the territory of China. (1) Information on the present and estimated number of franchisees, geographical distribution, scope of license, whether or not having
exclusive license region (if yes, the estimated detailed scope shall be explained) (2) Information on the evaluation of performance of the franchisee, the franchiser shall disclose information on the actual or estimated
average sales volume, cost, gross profit, and net profit of the franchisee, and shall explain the source of the above-mentioned information,
length and franchise network involved, if the information is estimated, then the franchiser shall explain the basis for estimation,
and point out that the actual performance of the franchisee may be different from the estimation. 9. Abstracts of the franchiser’s financial and accounting reports and of the audit reports in the last two years audited by the accounting
firms or auditing firms. 10. Information on major litigation and arbitration concerning franchises of the franchiser in the latest five years. (1) Major litigation and arbitration refer to litigation and arbitration involving litigation fare of more than RMB 500, 000 (2) The basic information, location of the litigation and the results shall be disclosed. 11. Information on the record of major illegal operation of the franchiser and its legal representative, records of major illegal operation. (1) Where the fine imposed by the competent administrative law enforcement department is not less than 300, 000 but more than 500, 000. (2) Where the franchiser and its legal representative have been sentenced to criminal responsibility. 12. Franchise Contract (1) Sample franchise contract (2) If the franchiser requires franchisee to sign with the franchiser (or the associated company) other franchise contracts, this type
of sample contract shall be provided at the same time. Article 6 The franchiser may not have any cheating and misleading practices in the promotion activities, and the advertisement may not include
the content about the individual franchisee’s profit from the franchise activities. Article 7 Before the franchiser discloses information to the franchisee, the former has the right to require the latter to sign Non-Disclosure
Agreement. Article 8 After the franchiser discloses information to the franchisee, the franchisee shall provide the franchiser with a return receipt in
duplicate, after the franchisee signs the receipt, each party retains one copy. Article 9 If the franchiser hides the information that shall be disclosed or discloses false information, the franchisee may rescind the franchise
contract. Article 10 If the franchiser violates these Measures, the franchisee has the right to report to the commerce authority, if the case is confirmed
after investigation, the commerce authority shall order the franchiser to make rectification, and impose a fine no less than RMB
10, 000 but no more than RMB 50,000; if the circumstances are serious, the fine shall be no less than RMB 50, 000 but no more than
RMB 10, 000, and a public announcement shall be made. Article 11 The power to interpret these Measures shall remain with the Ministry of Commerce. Article 12 These Measures shall come into effect as of May 1 2007.



 
The Ministry of Commerce
2007-04-30

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON ENTRY INTO FORCE AND ENFORCEMENT OF THE AGREEMENT BETWEEN THE GOVERNMENT OF PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF KINGDOM OF SAUDI ARABIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ASSETS

Circular of the State Administration of Taxation on Entry into Force and Enforcement of the Agreement between the Government of People’s
Republic of China and the Government of Kingdom of Saudi Arabia for the Avoidance of Double Taxation and Prevention of Fiscal Evasion
with respect to Taxes on Income and Assets

Guo Shui Fa [2007] No.68

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

The Government of People’s Republic of China and the Government of Kingdom of Saudi Arabia have officially signed the Agreement for
the Avoidance of Double Taxation and Prevention of Fiscal Evasion with respect to Taxes on Income and Assets (hereinafter referred
to as the Agreement) on January 23, 2006. The foreign affairs departments of both governments have exchanged notes with each other
on March 30, 2006 and August 9, 2006, respectively, confirming that the necessary legal procedures for entry into force have been
accomplished. Subject to the provision of Article 28 of the Agreement, the Agreement shall enter into force as of September 1, 2006
and shall be implemented as of January 1,2007. The State Administration of Taxation has printed and distributed the text of the aforesaid
Agreement to you in the Document “Guo Shui Han [2006] No. 138”. Please comply with and enforce it accordingly.

State Administration of Taxation

June 14, 2007



 
State Administration of Taxation
2007-06-14

 






DETAILED RULES FOR THE IMPLEMENTATION OF THE PROVISIONS ON ADMINISTERING FOREIGN-INVESTED CONSTRUCTION ENGINEERING DESIGN ENTERPRISES

Circular of the Ministry of Construction and the Ministry of Commerce Concerning the Printing and Distribution of the Detailed Rules
for the Implementation of the Provisions on Administering Foreign-invested Construction Engineering Design Enterprises

Jian Shi [2007] No.18

The construction departments of all provinces and autonomous regions, construction commissions of all municipalities directly under
the Central Government (Beijing Municipal Planning Commission), the competent commerce departments of all provinces, autonomous regions,
municipalities directly under the Central Government and cities specifically designated in the state plan, the related departments
under the State Council, the construction bureau and commerce bureau of Xinjiang Production and Construction Corps., the engineering
bureau of the capital construction barracks department of the general logistics department of the Chinese People’s Liberation Army,
the enterprises governed by the State-owned Assets Supervision and Administration Commission of the State, and the related industrial
associations:

For the purpose of implementing the Provisions on Administering Foreign-invested Construction Engineering Design Enterprises (Order
No.114 of the Ministry of Construction and the Ministry of Foreign Trade and Economic Cooperation), the Ministry of Construction
and the Ministry of Commerce jointly enacted the Detailed Rules for the Implementation of the Provisions on Administering Foreign-invested
Construction Engineering Design Enterprises. Hereby we print and distribute the present Detailed Rules to you for your earnest implementation.
In case you have any problem or suggestion in the implementing process, please promptly contact the Construction Market Management
Department under the Ministry of Construction and the Foreign Investment Management Department under the Ministry of Commerce.

The Ministry of Construction of the People’s Republic of China

The Ministry of Commerce of the People’s Republic of China

January 5, 2007

Detailed Rules for the Implementation of the Provisions on Administering Foreign-invested Construction Engineering Design Enterprises

In order to implement the Provisions on Administering Foreign-invested Construction Engineering Design Enterprises (Order No.114 of
the Ministry of Construction and the Ministry of Foreign Trade and Economic Cooperation) (hereinafter referred to as Provisions),
the present Detailed Rules are formulated.

1.

Procedure for application for the qualification of foreign-invested construction engineering design enterprise, and its acceptance
as well as examination and approval

In case a foreign-invested construction engineering design enterprise files an application for the qualification of construction engineering
design enterprise for the first time after obtaining the business license for enterprise as legal person, or for the upgrading, degrading,
adding new item, change or writing-off, etc, of the qualification it obtained, the application, its acceptance, examining and approving
procedure as well as examining standards shall be conducted under Article 7 of the Provisions, the provisions on the management
of construction engineering design qualification and the present Detailed Rules.

2.

Conditions for checking and verifying the qualification of foreign-invested construction engineering design enterprise

The qualification of foreign-invested construction engineering design enterprise shall be checked and verified according to the standards
for the qualification of construction engineering design enterprise, and the following requirements shall also be met:

(1)

The foreign service provider shall be an enterprise engaging in construction engineering design in the country or region at its locality
or a natural person obtaining the related certified practicing qualification. Particularly, with regard to a foreign enterprise,
it shall have achievements in the construction engineering design field in the country or region at its locality; with regard to
a natural person, he/she shall be a certified architect or certified engineer engaging in construction engineering design in his/her
host country.

(2)

In case a foreign-invested construction engineering design enterprise files an application for the qualification of engineering design
for the first time, its foreign service provider (foreign investment party) shall provide two engineering design achievements or
more that are completed beyond the borders of China, among which, no less than one shall be completed in the country or region at
its locality; if it applies for the upgrading of its obtained qualification, it shall provide the engineering design achievements
that are completed within or beyond the borders of China after obtaining the qualification of engineering design, among which, no
less than two shall be completed within the borders of China.

(3)

In case a foreign-invested construction engineering design enterprise hires any foreign certified architect or certified engineer
as major professional technical personnel for it when applying for the qualification of construction engineering design enterprise,
it is not required to examine his/her professional and technical post_titles when examining his/her qualification, it is only necessary
to examine his/her educational background, the years he/she has been engaging in the engineering design practice, his/her certified
qualification in the foreign country as well as his/her achievements and reputation in the engineering design field. Simultaneously,
one certified architect or certified engineer may only be hired by one engineering design enterprise and shall obtain the Employment
Permit of the People’s Republic of China for Foreign Nationals as issued by the related department under the Chinese Government,
or Employment Permit for Personnel From Hong Kong, Macao and Taiwan in terms of a service provider from Hong Kong, Macao or Taiwan.
His/her certified qualification that has been obtained in the foreign country shall be verified by the practicing qualification registration
center of the Ministry of Construction. Particularly, he/she shall have an educational background of university or higher, 10 years
of practical experience of engineering design or more, his/her major shall meet the requirements on the corresponding major professional
technical personnel of the Standards for Engineering Design Qualification; his/her personal achievements completed beyond the borders
of China shall be examined when an enterprise applies for the qualification for the first time.

(4)

In case a foreign-invested construction engineering design enterprise fails to meet the requirement as specified in Article 15 of
the Provisions at present, it may hire Chinese certified architects or certified engineer to meet the requirement on the number of
foreign service providers who have obtained the qualification of Chinese certified architect or certified engineer; it may also hire
professional technical personnel with Chinese nationality to meet the requirement on the number of foreign service providers having
related professional experience in engineering design.

(5)

In case a foreign service provider fails to meet the requirement on residence time as provisioned in Article 16 of the Provisions
at present, it is not required to examine.

(6)

Any foreign-invested construction engineering design enterprise is forbidden to apply for the qualification of engineering design
involving special industries or fields such as the national security and confidentiality of China.

3.

Application materials for the qualification of foreign-invested construction engineering design enterprise

The application materials for the qualification of foreign-invested construction engineering design enterprise shall be provided according
to the provisions of Article 11 and Article 12 of the Provisions, with regard to Paragraph 6 stipulating that: ￿￿Other materials
as required by the provisions on administrating the qualification of construction engineering design enterprise￿￿, the present materials
shall also meet the following requirements in addition to meeting the requirement on the standards for the qualification of construction
engineering design enterprise:

(1)

materials in respect of the achievements completed by the foreign service provider beyond the borders of China:

(a)

the engineering design achievements as provided by a foreign enterprise shall be the engineering projects that are constructed by
this enterprise upon the strength of the contracts signed with the owners in the name of the enterprise and have been accomplished
with satisfactory quality. The content of an engineering project shall cover the name, place and scale of the project, etc, and the
real object photos and the related documentary evidences shall also be attached. See Appendix 1 for the concrete requirements on
documentary evidences.

(b)

the engineering design achievements of a certified architect or certified engineer shall be the engineering projects that are accomplished
with the architect or engineer as the person in charge or a professional person in charge and have been finished with satisfactory
quality. The content of an engineering project shall cover the name, place and scale of the project, etc, and the real object photos
and the related documentary evidences shall be attached as well. See Appendix 2 for the specific requirements on documentary evidences.

(2)

related materials in respect of the certified qualification of a certified architect or certified engineer

(a)

valid academic certificate;

(b)

registered certificate of certified architect or certified engineer;

(c)

evidence on his/her compliance with professional ethics as issued by the society (association, administrative organ of registration,
etc) to which he/she belongs;

(d)

Employment Permit of the People’s Republic of China for Foreign Nationals or Employment Permit for Personnel from Hong Kong, Macao
and Taiwan.

4.

Miscellaneous

In case any construction engineering design enterprise is set up with investments from investors of Hong Kong SAR, Macao SAR and Taiwan
Region in any other province, autonomous region or municipality directly under the Central Government, it shall be governed by the
present Detailed Rules by analogy.

The present Detailed Rules shall go into effect as of its promulgation.

Appendix 1: Evidences on the Achievements Completed by Foreign Service Providers (Enterprises) beyond the Borders of China (Omitted)

https://www.cin.gov.cn/indus/file/200701310301.doc

Appendix 2: Evidences on the Achievements Completed by Foreign Service Providers (Individuals) beyond the Borders of China (Omitted)

https://www.cin.gov.cn/indus/file/200701310302.doc



 
The Ministry of Construction, the Ministry of Commerce
2007-01-05

 






GUIDELINES FOR EXAMINATION AND APPROVAL OF THE ESTABLISHMENT OF LOAN COMPANIES

Circular of China Banking Regulatory Commission Concerning the Printing and Distribution of the Guidelines for Examining and Approving
the Establishment of Loan Companies

Yin Jian Fa [2007] No. 9

Each banking regulatory bureau:

With a view to doing a good job in the pilot work of adjusting and relaxing the policies for banking financial institutions to enter
into rural areas, and further specifying the procedures for establishing loan companies and the requirements for application materials,
China Banking Regulatory Commission (hereinafter referred to as CBRC) has constituted the Guidelines for Examining and Approving
the Establishment of Loan Companies according to the Provisions of China Banking Regulatory Commission on the Procedures for the
Implementation of Administrative Licenses, Some Opinions of China Banking Regulatory Commission about Adjusting and Relaxing the
Policies for Banking Financial Institutions to Enter into Rural Areas for Better Supporting the Construction of New Socialist Countryside,
and the Interim Provisions on the Administration of Loan Companies, which are hereby printed and distributed to you, please implement
them earnestly in light of your actualities.

All the banking regulatory bureaus shall promptly forward this Circular to all the banking regulatory sub-bureaus, commercial banks
and rural cooperative banks within their respective jurisdictions. Any problem encountered during the establishing process shall
be reported to the CBRC in a timely manner.

China Banking Regulatory Commissio

January 22, 2007

Guidelines for Examination and Approval of the Establishment of Loan Companies

In accordance with the Provisions of China Banking Regulatory Commission on the Procedures for Implementing Administrative Licenses,
Some Opinions of China Banking Regulatory Commission on Adjusting and Relaxing the Policies for Banking Financial Institutions to
Enter into Rural Areas for Better Supporting the Construction of New Socialist Countryside, and the Interim Provisions on Administering
Loan Companies, the guidelines for examining and approving the establishment of limited liability loan companies (hereinafter referred
to as loan companies) by domestic commercial banks and rural cooperative banks (hereinafter referred to as investors) in rural areas
are hereby given as follows:

1.

Major Points for the Work of Establishment

(1)

Main work on applying for preparatory establishment

(a)

Determining the investor: the investor with main indicators on prudent supervision satisfying the supervisory requirements may conduct
the preparatory establishment after communicating with the banking regulatory bureau at the locality of the loan company to be established.

(b)

Fulfilling legal formalities: an investor intending to set up a loan company shall convene a meeting of the board of directors and
the general meeting of shareholders (representatives) for deliberating and forming related resolutions on establishing the loan company,
and the investor or the preparatory establishment group authorized thereby (hereinafter referred to as the applicant) shall fulfill
the related resolutions on the establishment duties.

(c)

Forming the preparatory establishment scheme: an applicant intending to set up a loan company shall conduct a feasibility analysis
and study the related conditions about the place where the loan company is to be set up, and constitute a preparatory establishment
scheme.

(d)

Approving the name in advance: an applicant shall submit an application form for advance approval of the enterprise name to the administrative
department for industry and commerce that possesses the power to verify enterprise names.

(e)

Applying for the preparatory establishment: after the preparatory establishment has been accomplished, the applicant shall apply for
preparatory establishment to the banking regulatory bureau. Where an applicant is located within the jurisdiction of the banking
regulatory sub-bureau at the locality of the loan company to be set up, the banking regulatory sub-bureau shall, upon acceptance
and preliminary examination of the application, submit the preliminary examination opinions and all the application materials to
the banking regulatory bureau for examination and decision within 20 working days. The banking regulatory bureau shall make a written
decision on approval or disapproval within 4 months as of its receipt of a complete set of the application materials. Where an applicant
is located within the jurisdiction of the banking regulatory bureau at the locality of the loan company to be established, its preparatory
establishment application shall be accepted, examined and decided by the banking regulatory bureau.

(2)

Main work on applying for business commencement

(a)

Assessing the capital: after registered capital has contributed enough by the investor, the applicant shall hire the intermediary
institution to conduct the capital assessment and issue a capital assessment report.

(b)

Drafting out the articles of association and multifarious rules: the applicant shall, as required by the banking supervisory and regulatory
organ , draft out the articles of association in light of its actual situation, and multifarious internal management rules including
those for credit loans, finance, and audit, etc. of the loan company.

(c)

Applying for starting business commencement: after the preparatory establishment is accomplished, where an applicant is located within
the jurisdiction of the banking regulatory sub-bureau at the locality of the loan company to be set up, it shall apply for business
commencement to the banking regulatory sub-bureau, and the banking regulatory sub-bureau shall accept, examine preliminary and then
make a written decision on approval or disapproval within 2 months as of is receipt of a complete set of the application materials.
Where an applicant is located within the jurisdiction of the banking regulatory bureau at the locality of the loan company to beset
up, it shall apply for business commencement to the banking regulatory bureau, and its application for business commencement shall
be accepted, examined and decided by the banking regulatory bureau.

After receiving the documents on approval of business commencement, an applicant shall obtain a financial license from the banking
regulatory sub-bureau or banking regulatory bureau within the prescribed time limit, and go through registration formalities at and
obtain a business license from the local administrative department for industry and commerce in accordance with the related provisions.
In case the financial license, business license, vouchers, seals, and tablets, etc. are not all in place, the loan company shall
not start business, and shall not conduct any business before going through registration formalities at and obtaining a business
license from the local administrative department for industry and commerce. An applicant shall make an advance report on the date
to start business for the loan company to the local banking supervisory and regulatory organ.

(3)

Submission procedures and formats requirements

(a)

Where an applicant sets up a loan company within the jurisdiction of the banking regulatory sub-bureau at the locality of the company
to be set up, the application for preparatory establishment shall be mainly submitted to the banking regulatory bureau, and copied
to the banking regulatory sub-bureau. The banking regulatory sub-bureau shall accept, and preliminarily examine the application,
and the banking regulatory bureau shall examine and decide it. If an applicant intends to set up a loan company within the jurisdiction
of the banking regulatory bureau at the locality of the company to be set up, the application for preparatory establishment shall
be submitted mainly to the banking regulatory bureau to be accepted, examined and decided.

Where an applicant sets up a loan company within the jurisdiction of the banking regulatory sub-bureau at the locality of the company
to beset up, the application for business commencement shall be submitted mainly to the banking regulatory sub-bureau to be accepted,
examined and decided. Where an applicant intends to set up a loan company within the jurisdiction of the banking regulatory bureau
at the locality of the company to beset up, the application for business commencement shall be submitted mainly to the banking regulatory
bureau to be accepted, examined and decided.

(b)

The loose-leaf binding method shall be employed for application materials, and the paper shall be standard A4 size (except for providing
historical documents of originals). On the cover and side face of the application materials, the words of “Application Materials
for the Preparatory Establishment of XX Loan Company” or “Application Materials on Business commencement for XX Loan Company” shall
be marked, and the application materials shall be drawn in small font 3 style of imitation Song typeface GB2312 in Simplified Chinese,
and be printed on both sides in general. There shall be obvious isolation marks between every part of application materials, which
shall accord with the catalogue and page number.

(c)

The application materials shall be submitted in duplicate, one for the acceptance organ, and the other for the decision-making organ.
Where the acceptance organ and the decision-making organ are the same one, only one copy of application materials needs to be submitted.

2.

Establishment Requirements

(1)

Institution nature: a loan company is a limited liability company solely set up by a domestic investor and exclusively engaging in
the loan business.

(2)

Institution name: a loan company set up within a county (city) shall be named as “XX County (City) XX (trade name) Loan Company of
Limited “, and its branch shall be named as “XX County (City) XX (trade name) Loan Company of Limited XX Branch Company” (The trade
name may be the abbreviated form of a banking institution).

(3)

Archival filing of the senior managers: the archival filing of the senior managers of a loan company established newly shall be carried
out along with the application for business commencement of the institution.

(4)

The banking regulatory bureau may constitute specific detailed rules for implementation according to the present Guidelines and in
light of its local situation, and report them to the CBRC for archival purpose.

3.

Essential Examining Points

The banking regulatory bureau and the banking regulatory sub-bureau shall intensify the guidance to the establishment of loan companies,
conduct examination on preparatory establishment and business commencement strictly according to the standards and procedures for
preparatory establishment, and shall mainly examine the acceptance situation, the integrity of application materials, the accomplishment
of various work within the preparatory establishment period, and whether the provisioned conditions for establishment have been satisfied,
etc. More attention shall be paid to the following contents for examination:

(1)

Application materials for preparatory establishment

(a)

Whether the materials are integrated, and whether their formats conform to the requirements.

(b)

Whether the institution to be set up satisfies the provisioned conditions, and whether the feasibility analysis has been carried out
abundantly.

(c)

Whether the investor has the investment qualification, and whether the related resolutions as adopted by the board of directors and
the general meeting of shareholders (representatives) and legal formalities as fulfilled by such resolutions conform to the related
laws and regulations.

(d)

Whether the contents of the preparatory establishment scheme are integrated, the procedures conform to the requirements, and the scheme
is reasonable and doable.

(2)

Application materials for business commencement

(a)

Whether the application materials for business commencement are integrated and their formats conform to the requirements.

(b)

Whether the contents in the draft of the articles of association are integrated and conform to the related laws and regulations.

(c)

Whether the contents in the preparatory establishment report are specific and complete.

(d)

Whether the contents in the capital assessment report are complete and the attachments are complete.

(e)

Whether the qualification of the statutory capital assessment institution is legal and valid.

(f)

Whether any senior management personnel have bad records.

(g)

Whether the professionals have corresponding professional knowledge and professional work practice.

(h)

Whether the certification materials about business place and the safety facilities are all ready.

4.

Related Requirement for the Pilot Period

(1)

The banking regulatory bureau shall, in accordance with the requirements on the implementation scheme for pilot work, take charge
of organizing and accelerating the pilot work and determining the investor. For the purpose of facilitating the reinforcement of
guidance by the CBRC, the banking regulatory bureau shall report the feasibility study report and the preparatory establishment scheme
of the pilot institution to the CBRC for archival filing before accepting a preparatory establishment application.

(2)

The banking regulatory bureau and the banking regulatory sub-bureau shall reinforce guidance and coordination, improve work efficiency,
actively accelerate the establishment process, urge the applicant to take time to complete various kinds of establishment work, and
make pilot institutions start business as soon as possible.

(3)

The banking regulatory bureau shall grasp the conditions on the establishment of loan companies in an all-around way, intensify investigation
and study, seriously sum up experiences and lessons, and feed back the CBRC any new circumstance and issue faced in the establishment
work in a timely manner.

Affix:
Catalogue of Application Materials for Establishing Loan Companies

1.

Application Materials for Preparatory Establishment

(1)

An application form for preparatory establishment: it shall state the nature, organizational form, post_title, business scope, registered
capital and domicile of the institution to be set up, whether the investor conforms with the investment requirements, the fulfillment
of related legal formalities, as well as the accomplishment of the preparatory establishment work.

(2)

A feasibility study report: it shall cover information on local economic and financial development, local agricultural economic development,
feasibility and necessity for establishing the loan company, market prospect analysis, future business development programming (covering
the forecast of asset scale, profit-making situation, outlet layout, target clients, loan coverage, non-performing loans ratio, capital
adequacy ratio, adequacy ratio of loan loss provisions and so on for the three since starting the business of the institution), and
the financial risk analysis ( for instance, the of asset quality, loss and insufficiency of capital adequacy ratio and so on.) upon
business commencement.

(3)

The preparatory establishment precept including the organization and direction of preparatory establishment work, registered capital,
organizational and management framework (whether the board of directors or the board of supervisors will be set up ), quantity of
senior management personnel, establishment of departments and professionals, plan for drafting main management rules, preparatory
establishment procedures and the time arrangements, etc.

(4)

Photocopies of related resolutions adopted at the meeting of the board of directors and the general assembly of shareholders (representatives)
for setting up the loan company and for the applicant to fulfill related duties for establishment work, as well as the photocopy
of legal person business license of the enterprise.

(5)

Name list and resumes of the members of the preparatory establishment group.

(6)

Written opinions as issued by the banking supervisory and regulatory organ at the place where the investor is registered, supervisory
reports for the recent two years, as well as the balance sheets and the profit and loss statements of the investor for the recent
two years.

(7)

Notice on Approving Enterprise Name in Advance that is issued by the administrative department for industry and commerce.

(8)

Contact person, phone, fax, e-mail, contact address and postcode.

(9)

Other documents as provisioned by the CBRC in light of the principle of prudence.

2.

Application Materials for Business commencement

(1)

An application for business commencement: it shall cover whether the name, domicile, business scope, registered capital, draft of
the articles of association, senior manager conditions, operating scheme and plan, main management systems, business place, and safety
measures, etc. of the business commencing institution conform to the requirements for business commencement, as well as other matters
that need explaining.

(2)

Report on the preparatory establishment work: it shall cover the preparatory establishment process, conditions about fulfilling the
preparatory establishment work, and whether the requirements for business commencement have been satisfied, etc.

(3)

Draft of the articles of association.

(4)

The capital assessment certification as issued by the statutory capital assessment institution:

(a)

the capital assessment report including the special assessment of the investor’s investment qualification;

(b)

the attachments including the factual conditions on the paid-in registered capital, the basic information about the investor (covering
the asset scale, proportion of net assets, and the profit-making situation for recent two years, etc.), and the explanation on the
capital assessment;

(c)

the balance sheets, profit and loss statements and credit certifications of the investor for the recent two years (covering capital
sources, financial situation, capital supplement ability and credit status);

(d)

the photocopy of the documents on inward capital from investors into accounts; and

(e)

the qualification certification of the statutory capital assessment institution and the certified public accountants.

(5)

Materials about archival filing of the general manager and the deputy general manager to be assigned:

(a)

an application form for archival filing (it shall be faithfully filled out, and the investor shall seal on it);

(b)

the general appraisal of the morals, professional ability, management ability, and work performances of the persons to be assigned;

(c)

the photocopies of identity certificates, professional technical post_titles and educational background certifications as recognized by
the State; and

(d)

the letter of personal commitments (committing for personal credit, fair fulfillment of duties, whether he has any liability with
a large amount or has conducted any illegal or irregular act).

(6)

Basic information and name list of employees (including their ages, time for engaging in the financial work, educational backgrounds,
majors and professional post_titles, etc.).

(7)

The post_title certificate of business place or the certification on the right to use the business place.

(8)

The conformity certificates on fire control and safety facilities for the business place as issued by the departments of public security
and fire control.

(9)

Main management systems, which mainly include the measures and procedures for loan management, financial management measures and audit
management measures, etc.;

(10)

Chart of organizational structure.

(11)

Business development programming: it shall cover the business development plan for the future three years, the financial development
plan, and the risk management plan. The business development plan shall cover the target market, development strategies, loans scale,
and market share. The financial development plan shall cover the profit-making ability, income structure, and total amount of profits.
The risk management plan shall cover the prediction and evaluation of various risks, risk control strategies, and risk control targets
(for instance, the non-performing loan ratio, the capital adequacy ratio, the adequacy ratio of loan loss provisions and so on.).

(12)

Photocopy of the reply for preparatory establishment or the reply on postponing preparatory establishment.

(13)

Contact person, phone, fax, e-mail, contact address and postcode.

(14)

Other documents as provisioned by the CBRC in light of the principle of prudence.



 
China Banking Regulatory Commission
2007-01-22

 






PROVISIONS CONCERNING THE EXEMPTION OF IMPORT DUTIES FROM THE ARTICLES USED FOR SCIENTIFIC RESEARCH AND TEACHING

Decree No. 45 of the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation

The Provisions Concerning the Exemption of Import Duties from the Articles Used for Scientific Research and Teaching 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
on 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 upon approval of the
State Council.
Minister Jin Renqing

Director Mou Xinsheng

Director Xie Xuren

January 31, 2007

Provisions Concerning the Exemption of Import Duties from the Articles Used for Scientific Research and Teaching

Article 1

For the purpose of promoting the development of scientific research and education, pushing the implementation of the strategy of
invigorating the country through science, technology and education, and regulating the duty-free import of articles used for scientific
research and teaching, the present Provisions are formulated in accordance with the decision of the State Council on approving 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 any scientific research
institute or school, for the purpose of scientific research and teaching and within reasonable quantities, imports the articles used
for scientific research and teaching and can not be made in China and uses these articles directly for scientific research or teaching.

Article 3

The term “scientific research institutes and schools” as mentioned in the present Provisions means:

(1)

various kinds of institutes that are affiliated to the ministries, commissions and institutions directly under the State Council,
and those under the provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated
in the state plan and specially engaged in scientific research;

(2)

institutions of high learning engaging in higher education on or above the junior college level and the academic certificates thereof
are recognized by the State; and

(3)

other scientific research institutes and schools as verified by the Ministry of Finance jointly with other related departments under
the State Council.

Article 4

The specific scope of articles used for scientific research and teaching with duties exempted shall be determined in accordance with
the List of the Articles Used for Scientific Research and Teaching That Are Exempted from Duties as attached to the present Provisions.

The Ministry of Finance, together with other related departments of the State Council, may promptly adjust the List of the Articles
Used for Scientific Research and Teaching That Are Exempted from Duties on the basis of the demand for the articles used for scientific
research and teaching as well as the domestic production and development situation.

Article 5

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

Article 6

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

Article 7

In case any institution violates legal provisions by illegally transferring, misappropriating or disposing in other forms the articles
imported for scientific research and teaching 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 8

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

Article 9

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

Appendix:
List of the Articles Used for Scientific Research and Teaching That Are Exempted from Duties

(1)

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

(2)

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

(3)

computer work stations and computers of medium or large scale;

(4)

special parts and fittings that are imported separately within the customs control period, and used for maintaining the imported instruments,
meters and equipments with the duties exempted or for improving and extending functions of the aforesaid instruments, meters and
equipments;

(5)

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

(6)

specimens and models;

(7)

slide shows used for teaching purposes;

(8)

materials used for experiments;

(9)

animals used for experiments;

(10)

medical instruments and related accessories for scientific research, scientific experiment and teaching (limited to medical colleges
or majors as well as scientific institutes engaged in medical research. Upon approval of the customs house and for the purpose of
scientific research or teaching as well as within scope of one machine for each category for every five years, any of the aforesaid
institutions may use the medical testing and analyzing instruments for the clinical activities of its affiliated hospitals);

(11)

fine varieties of plants and seeds (limited to scientific institutes engaged in agriculture and forestry, agricultural or forestry
colleges and majors);

(12)

professional musical instruments and audio-video materials (limited to scientific institutes engaged in art, art colleges and majors);

(13)

sports appliances for specific purpose (limited to scientific institutes engaged in sports, sports colleges and majors);

(14)

trainer airplanes (limited to flight colleges);

(15)

key equipment of the boats and ships that are needed for the teaching experiment (limited to shipping colleges); and

(16)

sample cars that are not driven by petrol power or diesel-oil power and are used for scientific research (limited to car colleges
or majors).



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

 






1...567...16Page 6 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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