PROVISIONS OF THE SUPREME PEOPLE’S COURT ABOUT SEVERAL ISSUES ON THE APPLICATION OF THE COMPANY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (I)

the Supreme People’s Court

Announcement of the Supreme People’s Court of the People’s Republic of China

Provisions of the Supreme People’s Court about Several Issues on the Application of the Company Law of the People’s Republic of China
(I) adopted at the 1382nd meeting of the Adjudication Committee of the Supreme People’s Court on March 27, 2006, are hereby promulgated
and shall enter into effect as of the day of May 9, 2006.

the Supreme People’s Court of the People’s Republic of China

April 28, 2006

Provisions of the Supreme People’s Court about Several Issues on the Application of the Company Law of the People’s Republic of China
(I)

(Adopted at the 1382nd meeting of the Adjudication Committee of the Supreme People’s Court on March 27, 2006 Fa Shi [2006] No. 3)

In order to correctly apply the Company Law of the People’s Republic of China amended at the 18th session of the Standing Committee
of the Tenth National People’s Congress on October 27, 2005, the concrete application of the Company Law by the people’s courts in
the hearing of relevant civil disputes are formulated as follows:

Article 1

If the civil act or event involved in a undecided case of the people’s court or a case newly accepted by the people’s court but which
occurred prior to the implementation of the Company Law, after the Company Law is brought into effect, the laws, regulations and
judicial interpretations effective at that time shall apply to the case.

Article 2

Where a lawsuit is brought to the people’s court prior to the implementation of the Company Law because of the disputes over any civil
act or event, if there is no clear provision in the effective laws, regulations or judicial interpretations at that time, such case
shall be dealt with in the light of the relevant provisions of the Company Law.

Article 3

When a lawsuit is lodged to the people’s court by the plaintiff for either of the reasons mentioned in Paragraph 2 of Article 22
and Paragraph 2 of Article 75 of the Company Law and if it exceeds the time limit as prescribed in the Company Law, the people’s
court shall reject it.

Article 4

The expression “180 consecutive days or more” mentioned in Article 152 of the Company Law shall be a full share-holding period when
the shareholder(s) initiate(s) a lawsuit to the people’s court. The expression “aggregately holding 1% or more of the total shares
of the company” means the aggregate of the shares, which is held by two or more shareholders.

Article 5

The Company Law shall not apply to the review of a case, which a final judgment has been made by the people’s court before the implementation
of the Company Law.

Article 6

These Provisions shall enter into effect as of the day of the promulgation.

the Supreme People’s Court
2006-04-28

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 36 – DISCLOSURE OF AFFILIATED PARTIES

Accounting Standards for Enterprises No. 36 – Disclosure of Affiliated Parties

Cai Kuai [2006] No. 3
February 15, 2006
Chapter I General Provisions

Article 1

With a view to regulating the disclosure of information about affiliated parties and transactions among them, these Standards are
formulated in accordance with Accounting Standards for Enterprises – Basic Standards.

Article 2

An enterprise shall, in its financial statements, disclose the related information about all affiliated party relationships and the
transactions among them. If it offers consolidated financial statements to outsiders, it is not required to disclose the transactions
among the enterprises that have been included in the scope consolidation, but it shall disclose the affiliated party relationships
and transactions beyond the scope of consolidation.

Chapter II Affiliated Parties

Article 3

When a party controls, jointly controls or exercises significant influence over another party, or when two or more parties are under
the control, joint control or significant influence of the same party, the affiliated party relationships are constituted.

The term “control” means having the power to decide an enterprise’s financial and operating policy and obtains benefits from its business
activities.

The term “joint control” means control over an economic activity as specified by contract, which exists only when the investing parties
that need to share the power of control in important financial and operating decision-making agree unanimously.

The term “significant influence” means having the power to participate in the formulation of financial and operating policies of an
enterprise, but not the power to control or jointly control the formulation of these policies together with other parties.

Article 4

The following parties constitute the affiliated parties of an enterprise:

(1)

The parent company thereof;

(2)

The subsidiaries thereof;

(3)

Other enterprises under the control of the same parent company thereof;

(4)

The investors having joint control over the enterprise;

(5)

The investors having significant influence thereon;

(6)

The joint ventures thereof;

(7)

The associated enterprises thereof;

(8)

The main individual investors and the close family members thereof. A main individual investor refers to an individual investor who
can control or jointly control an enterprise, or has significant influence thereon; and

(9)

Key managerial personnel of the enterprise or of its parent company and the close family members thereof. Key managerial personnel
refer to those who have the power of and responsibility for planning, directing and controlling the activities of the enterprise.
The close family members of a main individual investor or of a key managerial person refer to the family members who may influence
or be influenced by that individual in handling transactions with the enterprise.

(10)

Other enterprises the main individual investors, key managerial personnel, or close family members of such individuals control, jointly
control or have significant influence over .

Article 5

Where one party has the following relationship with one enterprise, it is not an affiliated party thereof.

(1)

The capital providers, public utility units, government departments and organs which have normal dealings therewith;

(2)

A single customer, supplier, franchiser, distributor or agent with whom an enterprise transacts a significant volume of business
by virtue only of the resulting economic dependence; and

(3)

The joint venture operators which jointly control a joint venture therewith.

Article 6

Enterprises shall not be regarded as affiliated parties simply because they are all under the control of the state.

Chapter III Affiliated Party Transaction

Article 7

The term “affiliated party transaction” refers to an event whereby a transfer of resources, labor services or obligations takes place
between affiliated parties, irrespective of whether money is charged.

Article 8

The types of affiliated party transaction usually include as follows:

(1)

Purchases or sales of goods;

(2)

Purchasing or selling assets other than goods;

(3)

Rendering or receiving labor services;

(4)

Guarantying;

(5)

Providing capital (including loans or equity contributions);

(6)

Leasing;

(7)

Agency;

(8)

Transfer of research and development projects;

(9)

License agreements;

(10)

Settling debts on behalf of an enterprise or by this enterprise that represents another party; and; and

(11)

The emoluments for key managerial personnel.

Chapter IV Disclosure

Article 9

An enterprise shall, in the annotations to the financial statements, disclose the following information about the parent company
and subsidiaries thereof, irrespective of whether there have been transactions between them:

(1)

The names of the parent company and subsidiaries thereof

Where the parent company is not the ultimate controlling party of the enterprise, it shall disclose the name of the ultimate controlling
party.

Where neither the parent company nor the ultimate controlling party provides the financial statements to outsiders, it shall disclose
the name of the parent company which is its closest superior parent company providing financial statements to outsiders.

(2)

The nature of business, name, place of registration, and registered capital (or actually paid-in capital, stock capital) and changes
therein of the parent company and its subsidiaries; and

(3)

The proportion of shares or voting rights held by the parent company in this enterprise or by this enterprise in its subsidiaries.

Article 10

Where there have been transactions between an enterprise and its affiliated parties, it shall disclose the nature of the affiliated
party relationships, the types of transactions and the elements of transaction in the annotations. The elements of transaction shall
at least include:

(1)

the amount of transactions,

(2)

the amounts, terms and conditions of outstanding items, and the information about the guaranties granted to others or obtained,

(3)

the amounts of provisions for non-performing debts under outstanding items, and

(4)

price policies.

Article 11

Affiliated party transactions shall be disclosed on the basis of the affiliated parties and the types of the transactions involved.

The affiliated party transactions of similar types may be disclosed in aggregate in case that it does not affect readers’ correct
understanding of the financial statements.

Article 12

No enterprise may disclose an affiliated party transaction as a fair transaction unless it provides exact proofs.

Ministry of Finance
2006-05-15

REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT THE ISSUE OF COLLECTING THE FEES FOR THE USE OF MINING AREAS FOR THE CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF LAND OIL RESOURCES

Reply of the State Administration of Taxation about the Issue of Collecting the Fees for the Use of Mining Areas for the Chinese-foreign
Cooperative Exploitation of Land Oil Resources

Guo Shui Han [2006] No. 500

The Bureau of Local Taxation of Sichuan Province,

Your Request for the Instructions about the Fee Collecting Organ for the Use of Mining Areas for the Chinese-foreign Cooperative Exploitation
of Land Oil Resources (Chuan Di Shui Fa [2006] No. 37 ) has been received, and upon study, the reply is hereby given as follows:

Both the Chuanzhong Regional Cooperative Oil Field and the Zitong Regional Cooperative Oil Field in Sichuan Basin in your province
are land oil cooperative projects, in accordance with the relevant provisions in the Notice of the Ministry of Finance on the Relevant
Budgetary Management of the Payment of Fees for Use of Mining Areas for the Chinese-foreign Cooperative Exploitation of Land Oil
Resources (Cai Yu Zi [1999] No. 33) and the Notice of the State Administration of Taxation on the Collection Administration of the
Fees for Use of Mining Areas for the Chinese-foreign Cooperative Exploitation of Land Oil Resources (Guo Shui Fa [1999] No. 55),
the fees for using the aforesaid two cooperative oil fields shall be collected by the taxation authority at the locality of the oil
field and the specific measures for the collection administration shall be carried out in accordance with the Notice of the State
Administration of Taxation on Filing and Payment of Fees for Use of Mining Areas for the Chinese-foreign Cooperative Exploitation
of Land Oil Resources (Guo Shui Fa [1995] No. 202 ).

State Administration of Taxation

May 25, 2006

State Administration of Taxation
2006-05-25

CIRCULAR OF THE MINISTRY OF COMMERCE CONCERNING PRINTING AND DISTRIBUTING OF DETAILED RULES ON THE IMPLEMENTATION OF COORDINATION AND MANAGEMENT OF LARGE SCALE COMPLETE SET TELECOMMUNICATION EXPORT ITEMS

Circular of the Ministry of Commerce concerning Printing and Distributing of Detailed Rules on the Implementation of Coordination
and Management of Large Scale Complete Set Telecommunication Export Items

Shang Chan Fa [2006] No. 185

The commerce authorities in charge in all provinces, autonomous regions, municipalities directly under the Central Government, cities
specifically designated in the state plan and Xinjiang Production and Construction Corps the relevant chambers of commerce, the relevant
enterprises, as well as all field commercial authorities:

In accordance with the Measures of the Ministry of Foreign Trade and Economic Cooperation for the Administration and Coordination
of Large Scale Unit Machine and Complete Set Telecommunication Equipment Export Items ([2001] No. 33), the Ministry of Commerce,
through consultation with the relevant authorities, formulated the Detailed Rules on the Implementation of Coordination and Management
of Large Scale Complete Set Telecommunication Export Items. It is hereby printed and distributed to you for observance and implementation.
You shall inform the Ministry of Commerce of any problems in the process of implementation.

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

June 5 2006
Appendix:
Detailed Rules on the Implementation of Coordination and Management of Large Scale Complete Set Telecommunication Export Items
Chapter I General Principles

Article 1

In order to further standardize the market order of Chinese large-scale complete set telecommunication equipment export, strengthen
the coordination and administration upon export items, prevent inappropriate competition activities, promote the sound, sustained
and stable development of the export of large-scale complete set telecommunication equipment and to maintain the overall interest
of China as well as the legitimate interests and rights of the enterprises, the Detailed Rules is hereby formulated in accordance
with the Measures of the Ministry of Foreign Trade and Economic Cooperation for the Administration and Coordination of Large Scale
Single Machine and Complete Set Telecommunication Equipment Export Items ([2001] No. 33).

Article 2

The large-scale complete set telecommunication equipment as mentioned in the Detailed Rules refers to the telecommunication export
item with the contractual sum no less than $10 million, the telecommunication export items valued no less than $ 5 million using
the export credit loan of the People’s Republic of China, the preferential governmental foreign assistance loan or the buyer-side
credit loan for preferential export, as well as the export credit insurance.

Article 3

The Ministry of Commerce and the relevant authorities shall establish the leading group for the coordination of the export items
of large-scale complete set telecommunication equipment to guarantee the smooth implementation of the Detailed Rules. The directorship
of the leading group shall be assumed by the leaders of the Ministry of Commerce and the member units shall include the relevant
authority in charge of the Ministry of Foreign Affairs, the Ministry of Information Industry, the Import and Export Bank of China,
as well as the relevant departments and bureaus of, the regional departments, the mechanic and electrical chambers of commerce, and
the contract of chamber of commerce. The office of the leading group shall be established in the Department of Mechanical, Electronic
and Hi-tech Industry of the Ministry of Commerce. The leading group shall authorize the mechanical and electronic chamber of commerce
and the contract chamber of commerce (hereinafter referred to as “the chamber of commerce”) to be responsible for the detailed coordination
matters.

The responsibilities of the leading group shall include: to be responsible for formulating the whole strategy for standardizing the
market order of large-scale complete-set telecommunication equipment, to strengthen the communication and exchange and coordination
of different sectors, and to be responsible for reporting the relevant issues regularly. The concrete measures for the coordination
mechanism of the leading group shall be otherwise formulated.

Chapter II Business Scope of the Items and the Access Qualification of the Enterprises

Article 4

The large-scale whole complete set telecommunication equipment as mentioned herein includes the following scopes

(1)

Content of the item: supply of equipment, technological design, technology transfer, installation, adjustment and guidance, the supply
of parts of components, after-sale service as well as the corresponding services.

(2)

Means of the public item bidding: international public bidding, biding invitation, tender discussion as well as other means of bidding
invitation.

(3)

Means for the implementation of the item: general contract, subcontract as well as other means.

Article 5

The enterprises participating in the export items of large-scale complete set telecommunication equipments shall have the following
conditions:

(1)

Having the business license of the enterprise legal person verified and issued by the industrial and commercial administrative authority;

(2)

Having sound capital credit and business operation;

(3)

Having the necessary technical staff for carrying out large-scale complete set telecommunication equipment, complete and sound organs,
perfect rules and regulations;

(4)

According with other conditions prescribed in the relevant national laws, rules and regulations.

Chapter III Coordination Principle and Procedure

Article 6

The coordination for the export of large-scale complete set telecommunication equipment shall abide by the following principles:

(1)

Openness, fairness, equity, good faith, and high efficiency;

(2)

To stop inappropriate competition and guarantee the legitimate rights and interests of the enterprises;

(3)

To maintain the normal export order and the whole national interest;

(4)

To protect the interest of the market developers, and ” the developers shall benefit from it”;

(5)

To fully respect the opinion of the embassies and consulates(the economic and commercial counselor’s office )

(6)

To encourage the alliance of enterprises to cope with the competition of foreign ones and to realize advantageous complementation;

(7)

Helpful to the improvement of the rate of bidding of Chinese enterprises;

(8)

Helpful to the promotion of the economic efficiency of the enterprises.

Article 7

The chamber of commerce shall be responsible for the early period of coordination of the export items of large-scale complete set
telecommunication equipment. Such enterprises as are scheduled to attend the items of large-scale complete set telecommunication
equipment shall submit to the chamber of commerce its application for the bid-invitation within 25 days prior to the tender closing
date and the tender-discussion items within 20 days as of the conclusion of the summary of conference report and the cooperation
agreement respectively. The enterprises shall promptly and initiatively report the progress of the items to the Chinese embassies
and consulates in foreign countries (the economic and commercial counselor’s office) and shall be subject to the guidance hereof.

The chamber of commerce shall otherwise prescribe the disciplines and rules for standardizing the acts of the enterprises.

Article 8

The export enterprises of large-scale complete set telecommunication equipment enterprises shall present the following documents
while applying for the items herein:

(1)

The item application report;

(2)

The Declaration of Export Items of Large-scale Single Machine and Complete Set Equipment;

(3)

The explanation about the negotiation with the clients and the technical requirement of the items;

(4)

Such documents as letter of intent, summary of conference and memorandums concluded with the clients;

(5)

The opinions of the Chinese embassy and the consulate in written form about the access of the enterprise;

(6)

Where the item is involved in the export technology limited by the national government, the Approval Intent Letter of the Technology
of the People’s Republic of China shall be submitted;

(7)

Other relevant documents necessary for the item.

Article 9

The chamber of commerce shall, within 20 working days after the expiration date of the item application, strictly examine the declaration
documents of the enterprises and raise the coordination opinion and inform the relevant enterprises in written in accordance with
the principle of coordination on the basis of soliciting the opinions of all parties such as the embassy, consulate in foreign countries(
the economic and commercial counselor’s office) and experts, and submit the copy one to the leading groups office, the relevant departments
and bureaus, the relevant Chinese embassy and consulate in foreign countrythe economic and commercial counselor’s officefor record.

In accordance with the concrete situation, the chamber of commerce may, by means of convening item coordination conference and expert
panel discussion, invite the leading group office and the relevant departments, bureaus, experts, banks and the insurance institution
to attend and coordinate it after having verified the item, fully heard the opinions of all parties. The important coordination items
shall be determined after the chamber of commerce has raised the relevant opinion and reported it to the leading group for study.

Article 10

The chamber of commerce shall submit to the relevant banks and insurance institutions the copy of the coordination opinion about
the items which require the submission of export credit loan, preferential governmental foreign assistance loan or the preferential
buyer-side export credit loan. The relevant banks and insurance institutions shall undertake independent assessment in accordance
with the coordination opinion hereof and the relevant provisions of export credit loan and export insurance administration, and issue
the letter of intents of loan acceptance and insurance for those items meeting the export requirement.

Article 11

The large-scale complete set telecommunication equipment export enterprises shall, after having received the coordination opinion
of the chamber of commerce, abide by and fulfill it and inform the chamber of commerce of the progress of the items. The enterprises
hereof shall, after having concluded contract with foreign businessman, submit to the chamber of commerce the major contents of the
contract as well as the relevant issues in written form.

Article 12

Where the large-scale complete set equipment export enterprise has objection to the coordination opinion hereof, it shall, within
15 days after its receipt of the cooperation opinion, lodge a complaint to the leading group office, which shall, within 10 days
as of its receipt of the application, make a rule hereupon, and submit the important proceedings to be decided by the leading group.
The rule shall, once received, come into effect and be abided by the complainant. The enterprises shall, during the period of complaint,
fulfill the coordination opinion of the chamber of commerce.

Article 13

Where the large-scale complete set telecommunication equipment export enterprise disagrees with the rule made by the leading group
(office), it may lodge administration reconsideration or administrative suit.

Article 14

The leading group shall encourage and actively promote the establishment of middle and high-level consultation mechanism among the
large-scale complete set telecommunication equipment export enterprises and the chamber of commerce shall take the lead in conducting
market coordination, information exchange and jointly concluding various discipline agreements among enterprises.

Article 15

When the large-scale complete set telecommunication export enterprises apply for the for the access of the items concerning the signature
ceremony of high level visit during the period of abroad visit of national leaders and the visit of foreign leaders, they shall meet
the following conditions:

(1)

the items which are necessary for the diplomacy of the People’s Republic of China and win the express support of the embassy and
consulate hereof(the economic and commercial counselor’s office);

(2)

the items which have been applied to and been recommended by the chamber of commerce;

(3)

the items which require the financial institutions of the People’s Republic of China to provide finance and export insurance acceptance
items and have the letter of intent concerning loan and insurance acceptance;

(4)

the items which are mature and meet the relevant agreement concluded during the period of high-level visit;

(5)

the item owner and the authorities in charge of that country agree to sign the relevant agreement.

Whether the items shall be included in the signature ceremony of high-level visit shall be determined by the authority in charge with
the consultation of the relevant departments of the Ministry of Commerce after the suggestion hereof has been raised by the chamber
of commerce, submitted to the leading group and been jointly studied and approved by the leading group and the relevant authorities.

Where the large-scale complete set telecommunication equipment export enterprise apply to donate equipment to a foreign side during
the period of the abroad visit of the national leader hereof and the visit of the foreign leader, the chamber of commerce shall raise
the suggestion by the chamber of commerce in accordance with the actual situation, submitted to and determined by the leading group.

Article 16

The large-scale complete set telecommunication equipment export item using preferential export credit loan of the buyer’s side shall
be administered in accordance with such documents as the Circular of the Ministry of Finance, the Ministry of Foreign Affairs, the
Ministry of Commerce and the People’s Bank of China on Printing and Distributing the Interim Measures for the Administration of Preferential
Export Credit from the Buyer’s Side(Cai Jin[2004] No.46) and the coordination shall be enforced by referring to the Detailed Rules
hereof.

The export items of large-scale complete set telecommunication equipment using preferential governmental foreign assistance loan shall
be administered in accordance with such documents as the Circular of the Ministry of Foreign Trade and Economic Cooperation, the
Ministry of Finance, the People’s Bank of China, China Import and Export Bank concerning the promulgation of the Measures about the
Supply of Preferential Loan Assistance to Foreign Countries( Wai Jing Mao Yuan Fa [2001] No. 122) and the cooperation shall be enforced
by referring to the Detailed Rules hereof.

Chapter IV the Coordination Rules and the Penalty Discipline

Article 17

The relevant personnel involved in the coordination of the items shall strictly abide by the industrial morality and the coordination
discipline and impartially undertake the coordination in accordance with the rules. Where the abuse of power, favoritism, negligence
and the revelation of commercial credentials occur in the process of the coordination of the items, the relevant authority shall
give the corresponding administrative treatment. Where they constitute crime, the judicial authority shall trace the legal liability
in accordance with the relevant law.

Article 18

The enterprises involved in large-scale complete set telecommunication equipment export items shall strictly abide by the relevant
laws, rules and operation it in accordance with the relevant laws, shall not harm the national interest and the legitimate interest
of the enterprises of the same profession. The following acts of the enterprises shall be deemed as unfair competition:

(1)

Harming the interest of the nation and the other domestic enterprises;

(2)

Interfering the items which have won the bid and concluded contract by means of donation and low price;

(3)

Maliciously defaming other domestic enterprises by any means;

(4)

Hunting the staff of other enterprises by unfair means;

(5)

Not applying the items in accordance with the relevant laws and rules or participating the items without accepting the coordination;

(6)

Not implementing the coordination opinion, participating the items without lodging complaint within the prescribed time limit and
fulfilling the rule;

(7)

Revealing the coordination and other relevant situation outside;

(8)

Violating the coordination procedure;

(9)

Having falsification in the application, registration or bid tender(invitation);

(10)

Offering price outside about the domestic financial items without the authorization of the relevant domestic financial institution;

(11)

Not abiding by the laws, rules and customs of the local nation or region;

(12)

Other acts in violating of the relevant laws and rules.

Article 19

Where the large-scale complete set telecommunication export equipment violates the relevant laws, the chamber of commerce shall investigate,
verify and submit the information hereof to the leading group, which shall render warning, grave warning or notice of criticism and
give such punishments as the temporary suspension of the item participation qualification, and the exclusion these items of the promotion
and support in the bilateral governmental mechanism, the preferential governmental loan or the preferential export credit from the
buyer’s side.

Article 20

The leading group shall inform the relevant banks and insurance institutions of the relevant situation about the large-scale complete
set telecommunication equipment export enterprises of which violate the relevant rules and the banks and financial institutions herein
shall not issue the letter of intents of item loan acceptance and item insurance acceptance.

Chapter V Supplementary Provisions

Article 21

The Ministry of Commerce shall be responsible for interpreting the Detailed Rules herein.

Article 22

The Detailed Rules shall be implemented as of 30 days after the promulgation of the Detailed Rules.

Ministry of Commerce
2006-06-05

ANNOUNCEMENT NO. 43, 2006 OF MINISTRY OF COMMERCE ON STARTING ANTI-DUMPING INVESTIGATION ON IMPORTED SULFAMETHOXAZOLE

Announcement No. 43, 2006 of Ministry of Commerce on Starting Anti-dumping Investigation on Imported Sulfamethoxazole

[2006] No. 43

Ministry of Commerce announced an anti-dumping investigation on imported Sulfamethoxazole originating in India (hereinafter referred
to as “investigated product “) on June 16, 2006.

In respond to an appeal from domestic industry on April 21, 2006, Ministry of Commerce examined related issues and evidence. Since
the examination shows the appeal is in line with Article 11 , 13 and 17 and includes related contents and evidence of Article 14
and 15 of Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce decided to start an anti-dumping investigation
on the investigated product as of June 16, 2006.

The period of dumping investigation is from January 1, 2005 to December 31, 2005. The period of industry injury investigation is
from January 1, 2002 to December 31, 2005.

The investigated product is classified under Tariff No. 29350030 in Customs Tariff of Import and Export of the People’s Republic
of China.

Interested parties can apply to Bureau of Fair Trade for Imports and Exports or Bureau of Industry Injury Investigation of Ministry
of Commerce for responding to the charges within 20 days as of the date the Announcement is issued.

At the same time, the related exporters and producers should provide the quantity and amount of the product exported to mainland China
during January, 2005 to December, 2005. Registration Form on Dumping Investigation can be downloaded from

https://gpj.mofcom.gov.cn.

Besides, the interested parties should provide explanation materials on production capacity, output, storage, construction plans,
and quantity and amount of the product exported to mainland China during the period of investigation on injury to domestic industry.
Registration form on Industry Injury Investigation can be downloaded from https://www.cacs.gov.cn.

If the interested parties are not registered responding to charges within the fixed time limit, Ministry of Commerce shall have the
right to refuse their materials and make adjudication according to the available materials.

Interested parties can submit their written opinions to Ministry of Commerce in 20 days as of the date when the Announcement is issued
if they have objections to the qualifications of the applicants, the investigated products, investigation range and other issues.

Interested parties can look up the unclassified version of the application handed in by the applicants at Open Information Look-up
Office of Ministry of Commerce during the above-mentioned period.

Investigation measures can be conducted by questionnaire, sampling, hearing and examination on the spot.

The investigation begins on June 16, 2006 and last 1 year normally. In case of special situation, it could be extended to December
16, 2007.

Address of Ministry of Commerce:

Address: No. 2, DongChangAn St., Beijing

Postcode: 100731

Bureau of Fair Trade for Imports and Exports:

Tel: 86-10-65197354, 65198497, 65198740

Fax: 86-10-65198172, 65198164

Bureau of Industry Injury Investigation:

Tel: 86-10-65198184, 65198190, 65198070

Fax: 86-10-65197583

Ministry of Commerce

June 16, 2006

Ministry of Commerce
2006-06-16

ANNOUNCEMENT NO. 44, 2006 OF MINISTRY OF COMMERCE ON ARBITRATION OF EPICHLOROHYDRIN ECHANTI-DUMPING INVESTIGATION

Announcement No. 44, 2006 of Ministry of Commerce on Arbitration of Epichlorohydrin ECHAnti-dumping Investigation

[2006]No.44

In accordance with Anti-dumping Regulations of the People’s Republic of China, Ministry of Commerce released announcement on Dec 28,
2004, deciding to carry out anti-dumping investigation on ECH originating from Russia, the Republic of Korea, Japan and the United
States.

Ministry of Commerce carried out in investigation on dumping and dumping profit margin as well as injury and injury extent on investigated
commodities. In line with investigation result and Article No. 24 of the Anti-dumping Regulations of the People’s Republic of China,
Ministry of Commerce released preliminary arbitration on Sept 21, 2005, confirming dumping of the investigated commodity as well
as the causality between dumping of the investigated commodity and the injury of domestic industries.

After issuance of the preliminary arbitration, Ministry of Commerce continued to carry out investigation on dumping and dumping profit
margin as well as injury and injury extent, and issued the final arbitration (please refer to appendix) in line with investigation
result and Article No. 25 of the Anti-dumping Regulations of the People’s Republic of China. Related matters are now announced as
follows:

Final Arbitration

In line with investigation, Ministry of Commerce finally verdicts dumping of the investigated commodity, injures the domestic ECH
industries, and the existence of causality between dumping of the investigated commodity and the injury of domestic industries.

II.

Imposing Anti-dumping Duties

In accordance with Anti-dumping Regulations of the People’s Republic of China, Tariff Committee of the State Council decides to impose
anti-dumping duties on ECH originating from Russia, the Republic of Korea, Japan and the United States as from Jun 28, 2006.

The tariff code of the investigated commodity is 29103000.

Rate of Anti-dumping Duties on Different Companies:

Companies in Russia

The Joint Stock Company Kaustik 17.9%

Limited Liability Company “Usoliekhimprom” 5.4%

All Others 71.5%

Companies in the Republic of Korea

HAN WHA CHEMICAL CORPORATION 4.0%

Samsung Fine Chemicals Co., LTD 3.8%

All Others 71.5%

Companies in Japan

Kashima Chemical Co., Ltd. 4.7%

All Others 71.5%

DAISO CO., LTD. 0%

Companies in the United States

The Dow Chemical Company 4.3%

All Others 71.5%

Appendix: Ministry of Commerce’s Final Arbitration on Anti-dumping Investigation on Epichlorohydrin (ECH) originating from Russia,
the Republic of Korea, Japan and the United States

Ministry of Commerce

June 28, 2006

The Ministry of Commerce
2006-06-28

REGULATIONS FOR THE SUPERVISION AND ADMINISTRATION OVER COTTON QUALITY

Regulations for the Supervision and Administration over Cotton Quality

July 4, 2006

(Promulgated by Order No. 314 of the State Council of the People’s Republic of China on August 3, 2001, and amended in light of the
Decision of the State Council on Amending the Regulations on the Supervision and Administration over Cotton Quality promulgated on
July 4, 2006)

Chapter I General Provisions

Article 1

With a view to strengthening the supervision and administration over cotton quality, maintaining the order of cotton market, and
protecting the lawful rights and interests of each party to cotton trading, the present Regulations are formulated.

Article 2

When cotton business operators (including cotton purchasers, processors, sellers and storage undertakers, the same hereafter) engage
in cotton business activities, the undertaking of supervision and administration over cotton quality by cotton quality supervision
institutions shall accord with the present Regulations.

Article 3

When a cotton business operator intends to engage in cotton processing business, it shall obtain its qualification certification
according to the relevant provisions of the state.

The cotton business operator shall establish an internal cotton quality management rules and improve them, strictly carry out position-based
quality norms, quality responsibilities and corresponding assessment measures.

Article 4

The competent department of quality supervision, inspection and quarantine of the State Council shall be responsible for the national
cotton quality supervision work, and its subordinate China Fiber Inspection Institute shall take charge of organizing and implementing
such work.

The quality supervision department of the people’s government of a province, autonomous region, or municipality directly under the
Central Government shall be responsible for the cotton quality supervision work within its own jurisdiction. At a place where a professional
fiber inspection institution is set up, the professional fiber inspection institution shall undertake supervision over cotton quality
within its jurisdictional division; at a place where no professional fiber inspection institution is set up, the quality supervision
department shall undertake supervision over cotton quality within its jurisdictional division (when a professional fiber inspection
institution and a local quality supervision department are coordinately used, they shall be uniformly referred to as cotton quality
supervision institutions).

Article 5

The local people’s governments at each level and the functionaries thereof may not enshield or connive the illegal acts related to
cotton quality within their respective regions, or obstruct or interfere with the cotton quality supervision institution’s lawful
investigation and shall punish the violations of the present Regulations in cotton purchase, processing, sale or storage undertaking.

Article 6

Any entity or individual shall have the right to impeach any illegal act concerning cotton quality.

Chapter II Obligations Concerning Cotton Quality

Article 7

Cotton business operators shall, when intending to purchase cotton, establish and perfect the quality inspection and acceptance rules
for the purchase of cotton, and shall have the physical standards for cotton grades and the indispensable equipment and instruments
for cotton quality inspection.

Cotton business operators shall, when purchasing cotton, determine the category, grade and quantity of the cotton purchased in light
of the national standards and technical norms after excluding the foreign fibers and other noxious materials; if the purchased cotton
goes beyond the national moisture standard, it shall be subject to technical treatment such as airing in the sun or drying with machine
and etc., so as to guarantee the cotton quality.

Cotton business operators shall place purchased cotton by category or by grade.

Article 8

Cotton business operators shall, when processing cotton, satisfy the following requirements:

(1)

It shall, in light of national standards, select and exclude the foreign fibers and other noxious substances in the cotton for processing;

(2)

It shall, in light of national standards, grade and process cotton, pack the processed cotton and attach marks compatible to the cotton
quality;

(3)

It shall, in light of national standards, pack the processed cotton and place it in batches.

Cotton business operators may not process cotton by using leather rollers, cotton ginning machine, packaging machine or other cotton
processing equipment, which are prohibited by the state through public proclamation.

Article 9

Cotton business operators shall, when selling cotton, satisfy the following requirements:

(1)

Each batch of cotton shall be attached with a quality voucher;

(2)

The cotton packages or marks shall meet national standards;

(3)

The category, grade and weight of the cotton shall be consistent with the quality voucher or mark; and

(4)

The cotton having passed the notarization inspection shall be attached with an accredited inspection certificate, or shall, if it
is state-reserved cotton, be affixed with an accredited inspection mark.

Article 10

Cotton business operators shall, when undertaking storage of state-reserved cotton, establish and perfect quality inspection and
acceptance rules on the entry of cotton into or exit from warehouse, and guarantee that the category, grade and quantity of the state-reserved
cotton entering into or exiting from the warehouse are consistent with the accredited inspection certificate and the accredited inspection
mark.

Cotton business operators shall, when undertaking storage of state-reserved cotton, maintain and repair the undertaking facilities
according to the relevant provisions of the state, so that the quality of the state-reserved cotton can be guaranteed to exempt from
any quality variance caused by human elements.

Cotton business operators may not put any cotton without passing accredited quality inspection into the warehouse as state-reserved
cotton or take it out of the warehouse as state-reserved cotton.

Government authorities or the functionaries thereof may not compel any cotton business operator to put any cotton without passing
accredited quality inspection into the warehouse as state-reserved cotton or take it out of the warehouse as state-reserved cotton.

Article 11

Cotton business operators may not, when purchasing, processing, selling or undertaking storage of cotton, forge, alter or pretend
to use any cotton quality voucher or mark, or any accredited inspection certificate or accredited inspection mark.

Article 12

Cotton business operators shall be strictly prohibited from, during their business activities such as purchase, processing, sale
or storage undertaking of cotton, adulterating any cotton, substituting any qualified cotton with inferior one or using any fake
cotton as genuine one.

Chapter III Cotton Quality Supervision

Article 13

The state shall adopt the accredited cotton quality inspection system.

The term “accredited cotton quality inspection” as mentioned in the preceding paragraph shall refer to the activities through which
a professional fiber inspection institution inspects the quality and quantity of cotton in light of national standards and technical
norms, and issues an accredited inspection certificate.

Article 14

Cotton business operators that sell cotton to cotton consuming enterprises may, before either party to the transaction makes cotton
transaction settlement, entrust a professional fiber inspection institution to make an accredited inspection of the cotton in bargain.
After the accredited inspection, the professional fiber inspection institution shall issue an accredited cotton quality inspection
certificate, which may be used as the basis of the cotton quality or quantity.

Article 15

The entry of state-reserved cotton into or the exit thereof from the warehouse shall be subject to accredited cotton quality inspection;
upon the accredited inspection, the professional fiber inspection institution shall issue an accredited cotton quality inspection
certificate, which shall be used as the basis for the state treasury to pay the expenses needed in storing the state-reserved cotton.

The state-reserved cotton having passed the accredited inspection shall be affixed by the professional fiber inspection institution
with an accredited inspection mark that is unanimously prescribed by the China Fiber Inspection Institute.

Article 16

The professional fiber inspection institution shall, when undertaking an accredited cotton quality inspection, implement the national
standards as well as its inspection methods, technical norms and time requirements, so as to guarantee the inspection to be objective,
impartial and timely. The accredited cotton quality inspection certificate issued by the professional fiber inspection institution
shall reflect the quality and quantity of the cotton truthfully and objectively.

The content of the accredited cotton quality inspection certificate shall contain the product name, the (entrusting) entity under
inspection, the batch number, the number of packages, the inspection basis, the inspection result, the inspecting entity, the inspectors
and etc.

The format of the accredited cotton quality inspection certificate shall be prescribed by the department for quality supervision,
inspection and quarantine of the State Council.

Article 17

The professional fiber inspection institution may not charge any fee when making an accredited cotton quality inspection, and the
expenses needed in the inspection shall be listed as expenditures in accordance with the related provisions of the state.

Article 18

The department for quality supervision, inspection and quarantine of the State Council shall, throughout China, arrange for the sample
supervisory inspection on the cotton having passed accredited cotton quality inspection, and the quality supervision department of
the people’s government of a province, autonomous region, or municipality directly under the Central Government shall arrange for
the sample supervisory inspection on the cotton having passed accredited cotton quality inspection within its respective jurisdiction.

The content of a sample supervisory inspection shall be: whether the accredited cotton quality inspection certificate and the accredited
inspection mark are consistent with the physical product or not; and whether the accredited cotton quality inspection made by the
professional fiber inspection institution is objective, impartial and timely or not.

The samples needed in a sample supervisory inspection shall be drawn from the reserved samples have passing the accredited inspection
at random, and an inspection conclusion shall be made within 10 days as of the day when the sample is drawn.

Article 19

The cotton quality supervision institution may, with regard to the cotton beyond the accredited cotton quality inspection, undertake
supervisory inspection of cotton purchase, processing, sale or storage undertaking on the spot.

The content of a supervisory inspection shall be: whether the quality, quantity and package of the cotton meet the national standards
or not; and whether the mark and quality voucher of the cotton accord with the physical product or not.

Article 20

The cotton quality supervision institution may, during the process of cotton quality supervisory inspection, exercise the following
powers, when investigating an act suspected to violate the present Regulations on the basis of the evidence or tip-off on any suspected
illegal act:

(1)

making an on-site inspection on the place where any business activity suspected to violate the present Regulations is conducted;

(2)

investigating the related persons of the cotton business entity to obtain information about the business activity suspected to violate
the present Regulations;

(3)

consulting and photocopying the contracts, documents, account books and other materials on the cotton business operation; and

(4)

sealing up or distraining the suspected adulterated cotton, inferior cotton used to substitute qualified one, fake cotton used as
genuine one, or any other cotton with serious quality problems, and the equipment and instruments specially used to produce the aforesaid
cotton.

Article 21

When required by a supervisory inspection, the cotton quality supervision institution may inspect the cotton quality. The samples
needed in the inspection shall be randomly drawn from the purchased, processed, for-sale or reserved cotton in light of the related
national standards. And an inspection conclusion shall be made within 3 days as of the drawing of sample for inspection.

No fee may be charged for the inspection in accordance with the preceding paragraph, and the necessary inspection expenses shall be
listed as expenditures in accordance with the related provisions of the state.

Article 22

Where a cotton business operator or a cotton consuming enterprise has any objection to the result of an accredited cotton quality
inspection or a cotton quality supervisory inspection made according to the present Regulations, it may, within 5 days as of receipt
of the inspection result, apply to the cotton quality supervision institution of the province, autonomous region, or municipality
directly under the Central Government or China Fiber Inspection Institute for re-inspection, which shall, within 7 days as of receiving
the application, make a re-inspection conclusion and notify the applicant. If the cotton business operator or the cotton consuming
enterprise still has any objection to the re-inspection conclusion, it may bring a lawsuit to the people’s court under law.

Article 23

Other fiber inspection institutions recognized by the department for quality supervision, inspection and quarantine of the State
Council may be entrusted to conduct cotton quality inspection. The specific measures shall be formulated by the department for quality
supervision, inspection and quarantine of the State Council in conjunction with other related departments of the State Council.

Chapter IV Penalty Provisions

Article 24

Where a cotton business operator, when purchasing cotton, violates Paragraph 2 or 3 of Article 7 of the present Regulations by failing
to meet the national standards or technical norms to exclude foreign fibers and other noxious substances before determining the category,
grade and quantity of the purchased cotton, or by failing to conduct technical treatment on the purchased cotton which goes beyond
the national moisture standard, or by failing to classify and grade the purchased cotton for placement, it shall be ordered by the
cotton quality supervision institution to make corrections, and imposed upon a fine up to RMB 30,000 Yuan.

Article 25

Where a cotton business operator, when processing cotton, violates Paragraph 1 of Article 8 of the present Regulations by failing
to meet the national standards to select and exclude foreign fibers and other noxious substances, or by failing to meet the national
standards to process the cotton by grade, to pack and mark the cotton, or by failing to meet the national standards to place the
cotton by batches, it shall be ordered by the cotton quality supervision institution to make corrections, and may, in light of the
severity of the circumstance, be imposed upon a fine of RMB100,000 Yuan. If the circumstances are serious, its cotton processing
qualification shall be revoked by the original accreditation organ.

Where a cotton business operator, when processing cotton, violates Paragraph 2 of Article 8 of the present Regulations by using any
cotton processing equipment of express prohibition of the state, the aforesaid prohibited cotton processing equipment shall be confiscated
by the cotton quality supervision institution and be destroyed under supervision thereof, and the operator shall be imposed upon
a fine twice up to ten times of the actual value of the illegal equipment. If the circumstances are serious, its cotton processing
qualification shall be revoked by the original accreditation organ.

Article 26

Where a cotton business operator, when selling cotton, violates Article 9 of the present Regulations due to the fact that the for-sale
cotton has no quality voucher or no package or mark meeting the national standards, the quality voucher or the mark does not accord
with the physical product, the cotton having passed the accredited inspection has no accredited inspection certificate or the state-reserved
cotton is not affixed with an accredited inspection mark, it shall be ordered by the cotton quality supervision institution to make
corrections, and may, in light of the severity of the circumstance, be imposed upon a fine up to RMB 100,000 Yuan.

Article 27

Where a cotton business operator, when undertaking the storage of state-reserved cotton, violates Paragraph 1, 2 or 3 of Article
10 of the present Regulations by failing to establish quality inspection and acceptance rules for entry of cotton into or exit thereof
from the warehouse, or due to the fact that its physical state-reserved cotton entering into or exiting from the warehouse is inconsistent
with the accredited inspection certificate or mark, or that it fails to comply with the provisions of the state to maintain or repair
the storage undertaking facilities and thus results in variance of the quality of the state-reserved cotton, or that it uses any
cotton having not passed the accredited inspection as state-reserved cotton for entry into or exit from the warehouse, it shall be
ordered by the cotton quality supervision institution to make corrections, and may be imposed upon a fine up to RMB 100,000 Yuan;
if any heavy loss is caused, the person-in-charge and other persons directly liable shall be demoted or be given a severer disciplinary
sanction; if any crime is constituted, he shall undertake criminal liabilities under law.

Article 28

Where a cotton business operator conceals, transfers or damages any article sealed up or sequestered by the cotton quality supervision
institution, it shall be fined by the cotton quality supervision institution twice up to five times of the value of the concealed,
transferred or damaged cotton; if any crime is constituted, he shall be subject to criminal liabilities under law.

Article 29

Where a cotton business operator violates Article 11 of the present Regulations by forging, altering or imitating any cotton quality
voucher or mark, any accredited inspection certificate or any accredited inspection mark, it shall be fined by the cotton quality
supervision institution at the amount of RMB 50,000 Yuan up to RMB 100,000 Yuan. If the circumstances are serious, the case shall
be transferred to the administrative department for industry and commerce for revocation of its business license; if any crime is
constituted, he shall be subject to criminal liabilities under law.

Article 30

Where a cotton business operator, when undertaking cotton business activities, violates Article 12 of the present Regulations by
adulterating cotton, substituting any qualified cotton with inferior one or using any fake cotton as genuine one, if any crime is
constituted, he shall be subject to criminal liabilities under law; if no crime is constituted, the adulterated cotton, the inferior
cotton used to substitute the qualified one, or the fake cotton used as genuine one and the illegal proceeds shall be confiscated
by the cotton quality supervision institution, a fine twice up to five times of the value of the illegal cotton shall be imposed
upon, and the case shall be transferred to the administrative department for industry and commerce for revocation of the business
license under law.

Article 31

Where a professional fiber inspection institution violates Article 16 of the present Regulation by refusing to execute the national
standards or its inspection methods, technical norms or time requirements, or by issuing an untrue accredited cotton quality inspection
certificate, it shall be ordered by the administrative department of quality supervision, inspection and quarantine of the State
Council or the local quality supervision administrative department to make corrections; the responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of demotion or dismissal from post under law.

Article 32

Where a professional fiber inspection institution violates Article 17 of the present Regulations by charging any fee for accredited
inspection, it shall be ordered by the administrative department of quality supervision, inspection and quarantine of the State Council
or the local quality supervision administrative department to refund the charged fee; the responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of heavy demerit record or demotion under law.

Article 33

In case a professional fiber inspection institution practices fraud by way of fabricating or issuing an accredited inspection certificate
or by affixing any accredited inspection mark before making an accredited inspection, its responsible person-in-charge and other
persons directly liable shall be imposed upon the administrative sanction of demotion or dismissal from post by the administrative
department of quality supervision, inspection and quarantine of the State Council or the local quality supervision administrative
department under law. If any crime is constituted, he shall be subject to criminal liabilities under law.

Article 34

Where a governmental office or any of its functionaries violates Paragraph 4 of Article 10 of the present Regulations by compelling
any cotton business operator to put any cotton having failed the accredited quality inspection into or take it out of the warehouse
as state-reserved cotton, the responsible person-in-charge and other persons directly liable shall be imposed upon the administrative
sanction of demotion or removal from post under law.

Article 35

Where a governmental office or any of its functionaries covers up or connives any local illegal act related to cotton quality, or
obstructs or interferes with any cotton quality supervision institution from investigating under law the acts in violation of the
present Regulations, it/he shall be imposed upon the administrative sanction of demotion or removal from post under law. If any crime
is constituted, it/he shall be subject to criminal liabilities under law.

Article 36

The value of cotton as prescribed in Article 28 and Article 30 of the present Regulations shall be computed at the listed price
of the illegally purchased, processed or sold cotton or on the basis of the settlement note; if there is no such listed price or
settlement note, the value shall be computed at the market price of the cotton of the same category.

Article 37

As to the administrative penalty of fine given according to the present Regulations, the decision on the fine shall be separated
from the collection thereof according to the related laws and administrative regulations, and the collected fines shall be fully
turned in to the state treasury.

Chapter V Supplementary Provisions

Article 38

The supervision and administration on the qualities of wool, fine hair, cocoon silk and hemp fibers shall be conducted by referring
to the present Regulations.

Article 39

The present Regulations shall enter into effect as of the date of the promulgation thereof.

The State Council
2006-07-04

ANNOUNCEMENT NO. 53,2006 OF THE PEOPLE’S BANK OF CHINA

Announcement No. 53,2006 of the People’s Bank of China

[2006] No. 53

The People’s Bank issued the bill of the Central Bank to some first-grade trading businessmen that engage in the open market business
on Thursday of this week (July 13) in light of the requirement for money control. The specific conditions are as follows:

The issuance of the Instrument of the Central Bank

Name

Name	Issuance Volume	Term	Bidding Price	Referential Yield Rate
The Instrument of the Central Bank (50th, 2006)	50 billion Yuan	1 year	97. 73 Yuan	2. 1138%

The Operating Office of the Open Market Business of the People's Bank of China

July 13, 2006

TRIAL MEASURES FOR TAX REFUND ADMINISTRATION OF THE PURCHASE OF CHINESE-MADE EQUIPMENT FOR FOREIGN-FUNDED PROJECTS

Circular of the State Administration of Taxation and the National Development and Reform Commission concerning Printing and Issuing
Trial Measures for Tax Refund Administration of the Purchase of Chinese-made Equipment for Foreign-funded Projects

Guo Shui Fa [2006] No. 111

The bureaus of state taxes and the development and reform commissions of all provinces, autonomous regions, municipalities directly
under the Central Government, and cities specially designed in the state plan, the Development and Reform Commission of Xinjiang
Production and Construction Corps:

According to the relevant provisions of the State Council, the State Administration of Taxation and the National Development and Reform
Commission jointly formulated the Trial Measures for Tax Refund Administration of the Purchase of Chinese-made Equipment for Foreign-funded
Projects, which are hereby printed and issued to you for earnest implementation.

Appendixes:

Confirmation Letter of the Foreign-funded Project Conforming to State Industrial Policies

List of Chinese-made Equipment Purchased for Projects

Application Form for Tax Refund due to the Purchase of Chinese-made Equipment for Foreign-funded Projects

State Administration of Taxation

National Development and Reform Commission

July 24, 2006

Trial Measures for Tax Refund Administration of the Purchase of Chinese-made Equipment for Foreign-funded Projects
Chapter I General Provisions

Article 1

In order to encourage the use of Chinese-made equipment in foreign-funded projects, clarify the duties and working procedures, regulate
and strengthen the administration of examination and approval of tax refund for Chinese-made equipment purchased by foreign-funded
enterprises, these Measures have been formulated on the basis of the relevant provisions of the State Council

Article 2

Each development and reform commission (including the National Development and Reform Commission and a provincial one, the same hereinafter)
shall be responsible for handling the Confirmation Letter of Foreign-funded Project Conforming to State Industrial Policies (see
Appendixes 1, hereinafter referred to as project confirmation letter) and the List of Chinese-made Equipment Purchased for Projects
as the necessary attachment to the project confirmation letter (see Appendixes 2, hereinafter referred to as “equipment list”); each
bureau of state taxes (including the bureaus at the provincial level and at the prefecture or city level, similarly hereinafter)
shall be responsible for ratifying, examining and approving the tax refund for the Chinese-made equipment purchased by foreign-funded
enterprises.

Chapter II Scope of Tax Refund

Article 3

The enterprises enjoying tax refund for Chinese-made equipment refer to the foreign-funded enterprises approved as the ordinary value-added
tax payers, foreign-funded enterprises engaging in transport or common dwelling houses development, as well as the Chineseforeign
contractual joint ventures engaging in marine petroleum exploration and exploitation. Foreign-funded enterprises shall include Chinese-foreign
equity joint ventures, Chineseforeign contractual joint ventures and wholly foreign-owned enterprises.

A foreign-funded enterprise which has purchased any Chinese-made equipment for self-use in the name of any of its branch offices (branch
factory) shall use its branch office (branch factory) to apply to the local taxation authority for tax refund.

As to the Chinese-foreign cooperative oil and gas projects for marine petroleum exploration and exploitation, the tax refund shall
be applied by the operator, or operating institution or operating branch of the oil and gas field.

The VAT refund policies shall not be applied to the Chinese-made equipment purchased by the foreign-funded enterprises the scope of
VAT deduction of which is enlarged within their total investment amount.

Article 4

Scope of Projects Enjoying Tax Refund

The VAT refund policies shall be applied to the Chinese-made equipment purchased for the foreign-funded projects (hereinafter referred
to as encouraged foreign-funded projects) falling within the Catalogue for Foreign Investment Priority Industries in Mid-West Region
of China and the encouraged category of the Catalogue for the Guidance of Foreign Investment Industries (the two aforesaid catalogues
shall be referred to as the encouraged foreign investment catalogue hereinafter. If the encouraged foreign investment catalogue is
adjusted, the tax refund polices which have applied to the Chinese-made equipment purchased for projects shall be subject to the
encouraged foreign investment catalogue implemented when the project is approved.

The tax refund policies shall not be applied to the Chinese-made equipment purchased for the encouraged foreign-funded projects within
China which falls within the Catalogue for Imported Commodities of Foreign-funded Projects Not Exempted from Tax (hereinafter referred
to as the Catalogue of Projects Not Exempted from Tax). If the state adjusts the Catalogue of Projects Not Exempted from Tax, whether
the equipment falls within the Catalogue of Projects Not Exempted from Tax shall be subject to the Catalogue of Projects Not Exempted
from Tax which is implemented when the VAT special invoices for the purchase of Chinese-made equipment are issued.

As to the engineering projects in the encouraged foreign-funded projects, if a foreign-funded enterprise entrusts any other enterprise
to undertake these projects in the form of contracting for labor and materials, the foreign-funded enterprise may sign a contract
with the undertaking enterprise on entrusting to purchase the Chinese-made equipment, while the undertaking enterprise shall purchase
the Chinese-made equipment and acquire the VAT special invoices and submit them to the foreign-funded enterprise so as to apply for
tax refund in accordance with the relevant provisions.

Article 5

“Chinese-made equipment” referred to in these Measures means the equipment which is produced within the territory of the People’s
Republic of China and under the management of fixed assets as purchased for the encouraged foreign-funded projects, and includes
the supporting parts and spare parts, etc. purchased together with the equipment in light of the purchasing contract.

Chapter III Handling of the Project Confirmation Letter and the Equipment List

Article 6

A development and reform commission shall issue a project confirmation letter upon the prescribed scope of powers. The project confirmation
letter of an encouraged foreign-funded project the investment of which totals $ 30 million or more shall be issued by the National
Development and Reform Commission and the project confirmation letter of an encouraged foreign-funded project the investment amount
of which is less than $ 30 million shall be issued by the development and reform commission of the province, autonomous regions,
municipalities directly under the Central Government, cities specially designed in the state plan or Xinjiang Production and Construction
Corps (hereinafter referred to as “the development and reform commission at the provincial level”). Projects here are meant to include:

(1)

Chinese-foreign equity joint projects, Chinese-foreign contractual projects, and wholly foreign-owned projects;

(2)

capital increase projects which Chinese-foreign equity joint ventures, Chinese-foreign contractual joint ventures or wholly foreign-owned
enterprises increase the project investment amount by increasing the foreign proportion of registered capital; and

(3)

Chinese-foreign cooperative marine petroleum exploration, exploitation and production projects.

Article 7

The application of a project confirmation letter shall be submitted, after the project ratification under the relevant provisions
and the confirmation of the Chinese-made equipment purchasing list, to the development and reform commission at the provincial level
by the project owner in light of the procedures within one month after the project is ratified, attached with the following documents.

(1)

a copy of the duplicate of the project ratification document;

(2)

a list of Chinese-made equipment purchased for the project affixed with the seal of the project owner and of the preliminary examination
department in quintuplicate (see Appendixes 2) ;

(3)

a project application report including the Chinese-made equipment purchasing list; and

(4)

other documents to be specified or provided.

As to a project beyond quota, the development and reform commission at the provincial level shall, after preliminary examination of
the project owner, the total investment amount, the total amount of the purchased Chinese-made equipment, the equipment list, the
duration of the project, and the articles of the applicable industrial policies, submit a formal application in written form to the
National Development and Reform Commission.

Article 8

The project confirmation letter (attached with an equipment list) shall be issued to the projects meeting all of the following conditions
by the Foreign Investment Department of the National Development and Reform Commission or the development and reform commission at
the provincial level in quadruple (one copy shall be kept in archives, and three copies shall be distributed) upon the scope of its
powers.

(1)

The project falls within the industrial policies encouraged category of foreign investments;

(2)

The project ratification in accordance with these provisions of the state on the administration of foreign-funded projects;

(3)

The application contents meet the requirements of the project ratification documents; and

(4)

The project meets the requirements of other relevant laws and regulations on foreign investments.

Article 9

The equipment list shall be generally obtained while applying for the project confirmation letter.

Article 10

As to a project for which a project confirmation letter has been issued, if the project owner, the total investment amount, the amount
of purchased Chinese-made equipment, the duration of the project, the Chinese-made equipment purchasing list, or any other major
particular really needs to be modified in the implementation, it shall be examined and approved by the original issuing department
and then a modification proof of the project confirmation letter and (or) the equipment list shall be issued.

Chapter IV Administration of Registration and Filing

Article 11

A foreign-funded enterprise which enjoys tax refund policies for the purchase of Chinese-made equipment shall, according to Article
12 and Article 13 of these Measures, apply to the local competent tax refund authority for making the registration and filing of
the tax refund and then may apply for the tax refund for the purchased Chinese-made equipment. If the affirmation of tax refund for
export has been approved, the registration and filing of tax refund for the purchase of Chinese-made equipment shall not be made
separately.

Article 12

A foreign-funded enterprise shall, after obtaining the project confirmation letter as issued by the development and reform commission
within 30 days, take the following documents to the local competent tax refund authority to apply for the registration and filing
of tax refund for the purchase of Chinese-made equipment.

(1)

a copy of the duplicate of its business license;

(2)

a copy of the duplicate of its tax registration certificate;

(3)

an original copy of the Confirmation Letter of the Foreign-funded Project Conforming to State Industrial Policies; and

(4)

other documents as required by the taxation authority.

Article 13

If a foreign-funded enterprise is canceled, merged or modified, it must, within 30 days as of the approval of the cancellation, merger
or modification by the relevant administrative authority, apply to the local competent tax refund authority for canceling or modifying
the affirmation of tax refund for the purchase of Chinese-made equipment.

Chapter V Application and Examination of Tax Refund

Article 14

After a foreign-funded enterprise which is a general value-added tax payer has purchased Chinese-made equipments, it shall, within
30 days as of the day when the special VAT invoices for the equipment purchasing are issued, obtain the certification by its competent
tax authority. If the special VAT invoices are not certified, or they do not pass the certification, the tax shall not be refunded.

Article 15

A foreign-funded enterprise shall, within 90 days as of the day when the special VAT invoices for the purchased equipments are issued,
fill out the “Application Form about Tax Refund for the Purchase of Chinese-made Equipment for Foreign-funded Project” (see Appendixes
3), and shall be accompanied by all of the following documents to apply to the local competent tax refund authority for the tax refund
for the Chinese-made equipment.

(1)

the special VAT invoices (deduction copies) or “Uniform Invoice for Motor Vehicle Sale” (limited to motor vehicles for special uses)
;

(2)

the “Confirmation Letter of the Foreign-funded Project Conforming to State Industrial Policies” issued by the development and reform
commission;

(3)

the “List of Chinese-made Equipment Purchased for Project” issued by the development and reform commission; and

(4)

other documents required by the taxation authority.

Article 16

A competent tax refund authority must, after receiving the application for tax refund for the Chinese-made equipment purchased by
a foreign-funded enterprise, examine the “Confirmation Letter of the Foreign-funded Project Conforming to State Industrial Policies”
with encouraged foreign-funded projects in the encouraged foreign investment catalogue and the catalogue of no exemption of taxes,
verify the relevant vouchers, make field investigations on the purchased equipment , and then handle the tax refund performance in
the tax amount indicated on the special VAT invoices if there is no mistake in the verification. If the Confirmation Letter of the
Foreign-funded Project Conforming to State Industrial Policies does not agree with the encouraged foreign-funded projects in the
encouraged foreign investment catalogue or the catalogue of no exemption of taxes, the competent tax refund authority shall refuse
the tax refund, and shall report the relevant information to the State Administration of Taxation level by level.

The tax refund application of a foreign-funded enterprise which is a general value-added tax payer shall be accepted if there is no
mistake in the verification of the information on the special VAT invoices.; as to the tax refund application of a foreign-funded
enterprise engaging in transportation or common dwelling house development, or a Chinese-foreign contractual joint venture engaging
in marine petroleum exploration and exploitation, the competent tax refund authority shall send letters to investigate their special
VAT invoices, and shall not refund the tax until it has confirmed that the invoices are true and the tax returns for the goods listed
on the invoices have been filed according to provisions.

Chapter VI Tax Refund Supervision

Article 17

A competent tax refund authority shall, after the tax refund affirmation of a foreign-funded enterprise has been approved, set up
accounts on the basis of the relevant contents of the Confirmation Letter of the Foreign-funded Project Conforming to State Industrial
Policies, and make a register book of the foreign-funded enterprise’s project confirmation letter, equipment list, total amount of
purchased Chinese-made equipment, name, quantity, capital amount and other relevant information of the purchased Chinese-made equipment.

Article 18

The Chinese-made equipment purchased by a foreign-funded enterprise shall be supervised by the taxation authority in charge of tax
refund, with the supervision period of 5 years. If there are any changes of the equipment ownership such as assignment, gift, or
other means of lease, re-investment, and etc. within the supervision period, the foreign-funded enterprise must pay retroactively
the refunded tax to the competent tax refund authority in light of the following calculation formula.

Amount of taxes to be retroactively paid = the amount indicated on the special VAT invoices (equipment remaining valueequipment
original value) applicable value-added tax rate

Equipment remaining value = equipment original value C accumulative depreciations

The equipment original value and the depreciations shall be calculated according to the enterprise’s accounting data.

Chapter VII Supplementary Provisions

Article 19

A development and reform commission shall issue project confirmation letters and equipment lists in strict accordance with the relevant
scope of powers and policies. The taxation authority shall, in strict accordance with the project confirmation letter as issued by
the development and reform commission and the scope of Chinese-made equipment listed in the list of equipment, handle tax refund
when the special VAT invoices for the purchased Chinese-made equipment are found inerrable after examination.

Article 20

The bureau of state taxes of each province, autonomous region, municipality directly under the Central Government, or city specially
designed in the state plan shall, before July 15 of each year and January 15 of the next year, report the relevant information about
tax refund for the purchase of Chinese-made equipment by foreign-funded projects in the first half of these year and the second half
of the last year to the State Administration of Taxation.

Article 21

Where a foreign-funded enterprise cheats for any tax refund for Chinese-made equipment by forging or altering the project confirmation
letter or the equipment list or other means, the competent tax refund authority may punish the violators according to Article 63
of the Law of the People’s Republic of China on the Administration of Tax Collection or other relevant provisions.

Article 22

These Measures shall enter into force as of July 1, 2006. As regards the projects approved in accordance with Article 3 or Article
4 of these Measures heretofore, if the tax refund has not been paid, the relevant enterprises shall, in light of the provisions
of these Measures, apply to the development and reform commission for making up the project confirmation letter and the Chinese-made
equipment purchasing list, and shall go through the tax refund procedures in accordance with other provisions of these Measures.
In the event of discrepancies between the previous provisions and these Measures, these Measures shall prevail.

State Administration of Taxation National Development and Reform Commission
2006-07-24

CIRCULAR OF THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE OF THE PEOPLE’S REPUBLIC OF CHINA, ON PRINTING AND ISSUING THE WORKING CRITERIONS FOR ADMINISTRATION OF ASCENT INVESTIGATION ON RETURNED COMMODITIES OF EXPORTED INDUSTRIAL PRODUCTS

Circular of the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China, on Printing
and Issuing the Working Criterions for Administration of Ascent Investigation on Returned Commodities of Exported Industrial Products

Guo Zhi Jian Jian Han [2006] No. 603

All bureaus of quality supervision, inspection and quarantine directly under administration of General Administration of Quality Supervision,
Inspection and Quarantine:

With the rapid development of foreign trade, the international community pays more attention to quality of Chinese exported commodities.
Return of exported commodities because of all kind of causes occurs occasionally, which causes bad effects on reputation of Chinese
exported commodity and immense economic loses to enterprises.

For purposes of strengthening administration of ascent investigation on returned commodities of exported industrial products, promoting
quality of commodities of exported industrial products, and safeguarding international reputation of Chinese commodity, General Administration
of Quality Supervision, Inspection and Quarantine formulated Working Criterions for Administration of Ascent Investigation on Returned
Commodities of Exported Industrial Products (referred to as “Working Criterions of Returned Commodities Investigation”), which is
now printed and issued to you all.

All bureaus shall enhance leadership, formulate specific operating procedures in accordance with Working Criterions of Returned Commodities
Investigation, and report status of implementation to General Administration of Quality Supervision, Inspection and Quarantine.

All bureaus shall enhance communication during the returned commodities investigation, the port bureaus shall particularly inform
bureau of origin of information of returned exported commodities in time. With receipt of information from port bureau, bureau of
origin shall carry out investigation in time and keep in touch with port bureaus to provide necessary assistance.

All bureaus shall summarize and analyze the investigation of returned exported commodities every quarter and report investigation
result and measures to General Administration of Quality Supervision, Inspection and Quarantine in 10 days. Great event of return
shall be reported immediately.

If encounter any problem or have any suggestion in implementation of Working Criterions of Returned Commodities Investigation, please
report to General Administration of Quality Supervision, Inspection and Quarantine in time.

Appendix: Working Criterions for Administration of Ascent Investigation on Returned Commodities of Exported Industrial Products

General Administration of Quality Supervision, Inspection and Quarantine

August 2, 2006

General Administration of Quality Supervision, Inspection and Quarantine
2006-08-02

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German Laws

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

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

PROVISIONS OF THE SUPREME PEOPLE’S COURT ABOUT SEVERAL ISSUES ON THE APPLICATION OF THE COMPANY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (I)

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 36 – DISCLOSURE OF AFFILIATED PARTIES

REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT THE ISSUE OF COLLECTING THE FEES FOR THE USE OF MINING AREAS FOR THE CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF LAND OIL RESOURCES

CIRCULAR OF THE MINISTRY OF COMMERCE CONCERNING PRINTING AND DISTRIBUTING OF DETAILED RULES ON THE IMPLEMENTATION OF COORDINATION AND MANAGEMENT OF LARGE SCALE COMPLETE SET TELECOMMUNICATION EXPORT ITEMS

ANNOUNCEMENT NO. 43, 2006 OF MINISTRY OF COMMERCE ON STARTING ANTI-DUMPING INVESTIGATION ON IMPORTED SULFAMETHOXAZOLE

ANNOUNCEMENT NO. 44, 2006 OF MINISTRY OF COMMERCE ON ARBITRATION OF EPICHLOROHYDRIN ECHANTI-DUMPING INVESTIGATION

REGULATIONS FOR THE SUPERVISION AND ADMINISTRATION OVER COTTON QUALITY

ANNOUNCEMENT NO. 53,2006 OF THE PEOPLE’S BANK OF CHINA

TRIAL MEASURES FOR TAX REFUND ADMINISTRATION OF THE PURCHASE OF CHINESE-MADE EQUIPMENT FOR FOREIGN-FUNDED PROJECTS

CIRCULAR OF THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE OF THE PEOPLE’S REPUBLIC OF CHINA, ON PRINTING AND ISSUING THE WORKING CRITERIONS FOR ADMINISTRATION OF ASCENT INVESTIGATION ON RETURNED COMMODITIES OF EXPORTED INDUSTRIAL PRODUCTS

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

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