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CIRCULAR OF THE MINISTRY OF FINANCE & THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE STANDARD OF THE TAXABLE AMOUNT OF COAL RESOURCE TAX OF SICHUAN PROVINCE

Circular of the Ministry of Finance & the State Administration of Taxation on Adjusting the Standard of the Taxable Amount of
Coal Resource Tax of Sichuan Province

Cai Shui [2006] No.136

The public finance department and the local taxation bureau of Sichuan Province:

It is decided upon deliberation that the standard of the taxable amount of coal resource tax of your province will be increased to
2.5 yuan per ton as of September 1, 2006.

Please abide hereby.

Ministry of Finance

State Administration of Taxation

September 15, 2006



 
Ministry of Finance, State Administration of Taxation
2006-09-15

 







CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON RELEVANT DATA PROCESSING ISSUES CONCERNING RECORD OF EXPORT CONTRACT






Circular of the State Administration of Taxation on Relevant Data Processing Issues Concerning Record of Export Contract

Guo Shui Han[2006] No. 877

The state taxation bureaus of all provinces, autonomous regions, municipalities directly under the central government, and cities
specifically designated in the state plan, According to spirits of the Circular of the Ministry of Finance, the National Development
and Reform Commission, the Ministry of Commerce, the General Administration of Customs, and the State Administration for Taxation
on Adjusting the Tax Rebating Rate of Part of Export Commodities and Subjoining Catalogue of Commodities Banned(Cai Shui [2006]No.139),
and the Circular of the State Administration for Taxation on Relevant Issues Concerning Record of Export Contract(Guo Shui Han[2006]No.847,
for the purpose of preparing well in time the record of export contract and the later relevant tax rebating, and upon study, the
relevant matters are hereby notified as follows:

1.

In accordance with the relevant stipulations in Cai Shui [2006] No.139 and Guo Shui Han [2006] No.847, when the export enterprise
applies to the taxation offices in charge for record of export contract, it shall proceed the contract record data collection via
the relevant module of export contract record in the tax rebating declaring system, and submit to the taxation offices both the e-data
such as Application for Record of Export Contract (see Appendix 1 of Guo Shui Han[2006] No.847, similarly hereafter) and two hardcopies
of Return Receipt of Export Contract Record Acceptance(see Appendix 1 of the present Circular).

2.

When accepting the record of export contract of export enterprises, taxation offices shall compare the hardcopies materials such as
contract to be recorded, forms with the relevant e-data, focusing on check of the number of export contract to be recorded, number
of record, and the total value. Where the hardcopies and e-data are inconsistent with each other, or the contract is found during
the acceptance inconsistent with Article 1 and Article 2 of Guo Shui Han [2006] No.847, taxation offices shall send back the export
contract inconsistent with the stipulations to the export enterprise, cannot accept the record of such contract in the future, and
delete the relevant record of such export contract out of the record table and e-data base. Where the export enterprise’s miss-input
and e-data mistakes resulted from the technique problems found during the acceptance, taxation offices may require the enterprise
to correct and re-submit. After acceptance, taxation offices shall sign and cover seal over the Return Receipt of Export Contract
Record Acceptance, one of which to be sent back to the export enterprise, the other of which to be filed.

After acceptance, taxation offices shall handle the check strictly in accordance with Guo Shui Han[2006] No.847. Where the export
contract is found during the check to be inconsistent with stipulations, taxation offices shall send it back to the enterprise, may
not accept the record of such contract in the future, and delete the relevant record of such export contract out of the record table
and e-data base. Where the export enterprise’s mis-input and e-data mistakes resulted from technique problems found during check,
taxation offices may require the enterprise to correct and re-submit. When the check is finished, taxation offices shall read in
the tax rebating check system the affirmed e-data, as the original e-account for the future tax rebating check. At the same time,
taxation offices shall print two copies of Return Receipt of Export Contract Record Check Result (see Appendix2 of this Circular),
one of which to be sent back to the export enterprise, the other of which to be filed.

3.

Where the export enterprise’s export contract has been recorded before issuing the present circular, if the taxation office has produced
the recorded export contract’s acceptance and check result documents to the export enterprise, the enterprise does not need to make
up the Return Receipt of Export Contract Record Acceptance and Return Receipt of Export Contract Record Check Result. If the taxation
office has not produced, the enterprise shall make up the Return Receipt of Export Contract Record Acceptance and Return Receipt
of Export Contract Record Check Result according to the present circular. In addition, the taxation office shall require the export
enterprise to submit e-data of Application for Record of Export Contract of the recorded export contract affirmed through check made
via the tax rebating declaring system.

4.

Where the enterprise applies to the customs goods of the recorded export contract from Sept.15, 2006 to Dec. 14, 2006, it shall fill
out “HTBA (initial of He Tong Bei An, in Capital letters)”in remark column of Tax Rebating Reporting List when applying for tax rebating
(exempting). Before the current software of goods check in export contract record finishes its upgrading, after accepting the enterprise’s
declaration, taxation offices shall adopt a method of Man-Machine integration to check the exported goods tax rebating (exempting)
of export contract record.

5.

In order to coordinate the e-data administration of export contract record, the State Administration for Taxation upgrades the export
tax rebating declaring and check system. The upgraded manufacture enterprise export tax rebating declaring system (Version 6.2),
Foreign Trade Enterprise export tax rebating declaring system (Version 8.2), and export tax rebating check system (Version 6.0 SP3)
is to be issued together with the present circular. The main content of this system upgrade on export contract record: adding functions
such as relevant parameter configuration of export contract record, data collection, check, reporting, and cancellation of the recorded
contract. The main content of this system upgrade on export tax rebating check: adding relevant functions such as reading, adjusting,
check, re-check, return receipt issuing, data feedback of export contract record. For details, please see Upgrading Design Scheme
of Export Contract Record Declaring and Check System ( see Appendix 3).

6.

System release and technical support:

The upgraded software of export tax rebating declaring and check system are placed on “Technical Support Website of the State Administration
for Taxation Application System” and “Server of Import& Export Department, the State Administration of Taxation Program Release
Export Tax Rebating Networks Administration System”. After downloading the patch for export tax rebating check system, taxation
offices in all regions may install and upgrade directly. After downloading the patch for export tax rebating check system, taxation
offices in all regions shall confirm that the software can be installed normally, and grant the software to export enterprise, or
notify the enterprise to log on www.taxrefund.com.cn and download the software for free.

Currently, the technical support service for export tax rebating system has been brought into Administrative Information System Call
Center of State Administration of Taxation. When the staff in taxation system needs support service, please ask for the service
via hot line (4008112366) or support website (internal website130.9.1.248) in accordance with the Administrative Measures for the
Function and Maintenance of Taxation Administrative Information System(for Trial Implementation)(Guo Shui Fa [2005] No.128) and Circular
of the State Administration of Taxation on Establishment of Administrative Information System Calling Center of State Administration
for Taxation(Guo Shui Han[2005]No.833).

Taxation offices in various regions shall collect the problems in software function, and give feedback to the State Administration
of Taxation (Import & Export Taxation Administration Department) in time. The method for feedback: upload the e-document to the
catalogue of “upload from various regions/ reporting” of the FPT communication server of the Import & Export Taxation Administration
Department (IP of the internal website: 100.16.125.25).

7.

Taxation offices in various regions shall immediately publicize and assist export enterprises to ensure the launch of e-data processing
of export contract record in time.

Appendixes:

1.

Return Receipt of Export Contract Record Acceptance

2.

Return Receipt of Export Contract Record Check Result

3.

Upgrading Design Scheme of Export Contract Record Declaring Check System

State Administration of Taxation

Sept. 25, 2006




Appendix 1

￿￿

Appendix 1:

Return
Receipt of Export Contract Record Acceptance

￿￿

Code
of the Export Enterprise:              
 

Name
of the Export Enterprise:               

Identity
No. of Taxpayer:                    

Export
Enterprise Application

No. of Export Contracts to be
recorded

Copy

No.
of Item in Export Contract Record

Item

Value
of Export Contract to be Recorded

USD

Remark

 

Responsible
Person:                  

Principal:                       

(Official
Seal)

￿￿￿￿Year￿￿￿￿Month￿￿￿￿Day

Taxation
Office Acceptance

Acceptance
Opinion

Acceptor:              

(Seal)

￿￿￿￿Year￿￿￿￿Month￿￿￿￿Day

Annotate:

1.
Code of the
Export Enterprise is the Customs Code of the export enterprise

2.
This writ
is to be printed by the export enterprise and submit to the taxation office.
After taxation office’s acceptance
and record, the writ shall be signed by the
acceptor and covered seal of the taxation office, and sent back to the export
enterprise.

￿￿

Appendix 2:

Return
Receipt of Export Contract Record Check Result

￿￿

Code
of the Export Enterprise:                       

Name
of the Export Enterprise:           
, SN:            

Identity
No. of Taxpayer:                                 

Item

No. of
Export Contracts to be recorded

No. of
Export Contract Records

Value of
Export Contract to be Recorded(USD)

Enterprise
Application

 

 

 

Record
Approval

 

 

 

Record Not
Granted

 

 

 

Detailed
Explanation for not Granting Record

 

1st
Check Person:                     

Re-Check
Person:                     

(Seal)

￿￿￿￿Year￿￿￿￿Month￿￿￿￿Day

Annotate:

1.Code of the
Export Enterprise is the Customs Code of the export enterprise

2. This writ
shall be produced by the taxation offices to the export enterprise after the 1st
check and re-check of export contract
are recorded

3.The SN is
created automatically by the export tax rebating check system

￿￿

Appendix 3:

Upgrading Design Scheme of Export Contract Record Declaring Check System

￿￿

1.
General Introduction:

(1) System designed and developed in accordance with that:

a.
the Circular of the Ministry of
Finance, the National Development and Reform Commission, the Ministry of
Commerce,  the
General
Administration of Customs, and the State Administration for Taxation on
Adjusting the Tax Rebating Rate of Part of Export
Commodities and Subjoining
Catalogue of Commodities Banned(Cai Shui [2006]
No.139);

b.
the Circular of the State Administration
of Taxation on Relevant Issues Concerning Record of Export Contract(Guo
Shui Han[2006]No.847).

(2)
System designed and developed with the thoughts that:

a. More than 1,500 commodity codes are adjusted this time, 1/10 of
commodity code base of export tax rebating;

b. For most enterprises and most export businesses,
“Normal” commodity
export declared at the customs is adopted. Therefore, to
regulate enterprise’s
prophase action can effectively decrease the later administrative cost and
improve the work efficiency.

c. This system adjustment is strongly updated.

d. Since the arrangement involved in the system adjustment is so wide, in
order to lessen the instability, the adjustment shall
be limited only to ensure
the functions. During the tax rebating declaration, as to the export of the
recorded contract, the
attached form of the export tax rebating declaration
form, i.e. the application form of the export tax rebating declaration of
the
recorded contract shall be adopted. This method may effectively decrease the
influence of the operation adjustment on its
relevant operations.

e. Administration of recorded contract shall be brought into the system and
handled as the document registration business and the
data checked shall be
deemed as the e-ledger, and wholly integrate with the tax rebating daily
administration.

2. Relevant design for declaration system of export contract record:

(1)
System designed with the thoughts that:

a. Generally, the goods enterprise exported shall be relatively stable. So,
the enterprise shall record according to the accurate
commodity, and shall
declare with the commodity code in the recorded contract when declaring export
tax rebating.

b. Where one contract involving several export commodities, the export
contract record application form in the system adds a field
of “No.
of Item in Contract” to distinguish the different export commodities and
each commodity has one “No. of Item” in the
same contract.

c. The enterprise shall convert according to the customs corresponding
measurement unit of the export commodity when going through
the contract record
application form, and input the converted volume as record.

d. The enterprise shall convert the settlement currency of the export
commodity to USD in the contract record application form,
and shall input USD
value after conversion.

e. Export contract record application form is to be administered in the
export tax rebating administrative system. Before Sept.
30, 2006, enterprise may
multi-declare its export contract record application form. However, each
declaration cannot involve
repeated declaration of contract number.

(2) System function adjustment:

Export contract record application form is involved in the export tax
rebating declaration system, and is to be administered in
the export tax
rebating document record catalogue.

The export tax rebating declaration system includes functions of export
contract record application form collection, export contract
record application
form declaring, and export contract record application form canceling, etc.

a. Export contract record application form collection

“Export contract record application
form” collection function is added
in the export tax rebating declaration system. Enterprise
user shall collect
export contract record application form data through such function.

In collecting the export contract record application form, the data
declared may be corrected and adjusted.

Explanation of field to be collected:

Over-considered that the accurate export commodity code of the exact export
goods may not be got in export contract record, the
“No. of Item in Contract” is added in design, which prepares well for the later recorded
contract export tax rebating declaration
and check. The system makes judgment of
whether the contract is to declare tax rebating through whether “HTBA” is
included in
remark of the export list. The system builds a relation between the
export list and recorded contract by inputting “Export Keyword,
No. of
Contract, SN of Contract” in a form in middle.  “Export Keyword” for manufacturing enterprise is
“Declaration
Year/Month
+ SN”, and for foreign trade enterprise is “Declaration
Year/Month + Relating No. + SN”.

“No. of Export
Contract” must be inputted for the export contract
signed between the enterprise and foreign company. Otherwise,
the application
form is not accepted.

“Export Agent Agreement
No.”: for the export agent operation, the
commission enterprise shall input the export agent agreement
number, and “Export Contract
No.” must be inputted at the same time.

“Export Contract Item
No.”: the export contract may involve several
export commodities, and the enterprise shall declare in classes
according to the
rule.

“Date of Contract
Conclusion”: to judge, according to
the date the enterprise inputs, whether the contract is signed before Sept.14,

2006.

“Contract
Term”: from export contract conclusion to it
is fully performed.

“Export Commodity
Code”: the enterprise cannot get the exact export
commodity code before the actual export, but most export commodities
are usually
daily business that can be controlled. The rate of export strange commodity is
rare. So, the enterprise shall try
its best to input the accurate commodity
code.

“Commodity Name in Code
Base”: by inputting the export commodity code,
system gives the name automatically according to export
commodity tax rebating
rate base, as a clue field.

“Export Commodity
Name”: the system shows the name automatically
according to the export commodity tax rebating rate base by inputting
export
commodity code, and the enterprise may adjust according the exact export
situation.

“Tax Rebating
Rate”: the system shows the rate automatically according
to the export commodity tax rebating rate base by inputting
export commodity
code, and the enterprise may adjust according the exact export situation.

“Measurement
Unit”: the system shows the unit automatically according
to the export commodity tax rebating rate base by inputting
export commodity
code, an

REPLY OF CHINA INSURANCE REGULATORY COMMISSION ABOUT THE LEGAL STATUS OF INDIVIDUAL INSURANCE AGENTS

Reply of China Insurance Regulatory Commission about the Legal Status of Individual Insurance Agents

October 9, 2006

Insurance Regulatory Bureau of Guizhou Province:

We have received your Request for Instructions about the Legal Status of Individual Insurance Agents in Insurance Companies. Upon
deliberation, we hereby render a reply as follows:

1.

In accordance with Articles 125 and 128 of the Insurance Law of the People’s Republic of China (hereinafter referred to as the Insurance
Law), individual insurance agents are a kind of insurance agents. They have a principal-agent relationship with insurance companies.

2.

In specific cases, whether an operator of an insurance company is an individual insurance agent as well as whether the operator has
a principal-agent relationship with the insurance company shall be determined according to the legal nature of the specific agreement
concluded between them.

3.

In accordance with Article 136 of the Insurance Law, an insurance company shall be responsible for training and managing its individual
insurance agents so as to ensure the professional ethics and quality of its individual insurance agents.

 
China Insurance Regulatory Commission
2006-10-09

 




NOTICE OF THE INDUSTRIAL DEPARTMENT OF THE MINISTRY OF COMMERCE ON HOLDING A TRAINING CONFERENCE OF THE EXPORT CONTROL FOR THE OPERATIONAL ENTITY OF PRODUCTS RELATED TO GRAPHITE

Notice of the Industrial Department of the Ministry of Commerce on Holding a Training Conference of the Export Control for the Operational
Entity of Products Related to Graphite

Each operational entity and enterprise of products related to graphite, the Foreign Trade and Economic Office in Liaoning, the Bureau
of Commerce in Dalian:

With a view to implementing the state policies and regulations of the export control, reinforcing the work of export control on products
related to graphite, the Industrial Department of the Ministry of Commerce plans to hold a Training Conference of the Export Control
for the Operational Entity of Products Related to Graphite in Dalian from 15 to 17 of November, 2006. The Training Conference will
be hosted by the Industrial Department of the Ministry of Commerce and undertaken by the China Carbon Association, and some special
lectures will be addressed by persons from the Military Control Department of the Ministry of Foreign Affairs and the Department
of Administrative Law of the General Administration of Customs which will be invited at the appointed time. We hereby notify the
details as follows.

1.

Conference Time

Registration on November 15 and the conference to be held from 16 to 17 in November

2.

Conference Place

Dalian Bohai Pearl Hotel (to the east of the Dalian Railway Station and telephone: 0411-88828333)

3.

Entities to be Present

Operational entities of products related to graphite, competent departments of the export control under the government, the specialist
entities of export control

4.

Training Contents

The situation of international anti-diffusing and the current hot topics; the state’s general position, policies and regulations,
managerial practice and handling licenses of the import and export control on the subject and technology of dual use; and the supervision
policy of the customs on the subject and technology of dual use and the product related to graphite.

5.

Miscellaneous issues

(1)

In view of the importance and sensitivity of the conference, each related entity shall appoint leaders and principles to attend the
conference on time.

(2)

The attendants shall bear the board and lodging expenses by themselves. If they entrust China Carbon Association to arrange board
and lodging affairs, RMB 1,100 Yuan shall be charged per person ( including board and lodging with standards of Four Stars), and
fees generated from the conference place and materials shall be born by the Industrial Department of the Ministry of Commerce.

(3)

The Form of Return Receipt (see the appendix)shall be well filled in and faxed to the China Carbon Association by November 6.

Contact person￿￿Mr. Sun, Mr. Chen, Mrs. Ning, or Mrs. Chang

Telephone/Fax￿￿010-65131966

Email￿￿ccia010@sina.com

(4)

During the registration time, where reception in airport is needed ( the reception bus will depart the airport to the Restaurant at
11,13,15,17,19,21 o’clock) , please contact Zhang Tao (Telephone￿￿0411-82900110, 13084150110, 13998560110￿￿

(5)

If any other question, please call the No.2 Export Control Office of the Electromechanical and Technical Industry Department of the
Ministry of Commerce.

Contact person￿￿Wu Xi (the No.2 Export Control Office of the Electromechanical and Technical Industry Department of the Ministry of
Commerce)

Telephone￿￿010-65197323

Fax￿￿010-65197559

The Electromechanical and Technical Industry Department of the Ministry of Commerce

October 23, 2006



 
The Ministry of Commerce
2006-10-23

 







DECISION OF THE STANDING COMMITTEE OF THE NPC CONCERNING THE MODIFICATION OF THE BANKING SUPERVISION LAW OF THE PEOPLE’S REPUBLIC OF CHINA

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

No. 58

The Decision of the Standing Committee of the NPC concerning the Modification of the Banking Supervision Law of the People’s Republic
of China, which was adopted at the 24th meeting of the Standing Committee of the 10th NPC of the People’s Republic of China on October
31, 2006, is hereby announced and shall enter into force as from January 1, 2007.
President of the People’s Republic of China Hu Jintao

October 31, 2006

Decision of the Standing Committee of the NPC concerning the Modification of the Banking Supervision Law of the People’s Republic
of China

(Adopted at the 24th meeting of the Standing Committee of the 10th NPC of the People’s Republic of China on October 31, 2006)

The decision is made at the 24th meeting of the Standing Committee of the 10th NPC of the People’s Republic of China to modify the
Banking Supervision Law of the People’s Republic of China as follows:

1.

A new article shall be added as Article 42 : “When implementing any inspection of banking financial institutions, the banking regulatory
organ may, pursuant to approval of the person in charge of the banking regulatory organ at or above the level of districted city,
take the following steps against any entity or individual under the suspicion of being involved in illegal acts:

(1)

Inquiring about the related entity or individual, and requiring it/him to explain the related issues;

(2)

Inspecting and copying related financial accounting, property registration and other documents and materials;

(3)

Implementing advanced registration and preservation of documents and materials which may be transferred, concealed, destroyed or falsified.”

“When the banking regulatory organ takes the steps prescribed in the previous Paragraph, there shall be no less than two functionaries
with showing lawful certificates and investigation notices. In case there are less than two investigation functionaries or they fail
to show lawful certificates or investigation notices, the related entity or individual shall have the right to refuse the investigation.
If the steps are adopted in according to law, the related entity or individual shall give coordination, faithfully explain the related
conditions and provide related documents and materials, and shall not refuse to do so, or hamper or hide anything.”

2.

Article 42 shall be modified into Article 43 , and a new item shall be added to paragraph 1 as Item 6: “Investigating the related
entity or individual against Article 42 of the present Law”.

Paragraph 2 shall be modified as: “In case any functionary for supervision and administration in the banking regulatory organ embezzles
public funds, accepts bribes, divulges state secrets, commercial secrets or personal privacy, if any crime is committed, he shall
be prosecuted for criminal liabilities; and if no crime is committed, he shall be given an administrative sanction in accordance
with law.”

3.

A new article shall be added as Article 49 : “If anyone hampers any inspection or investigation legally carried out by the functionaries
of the banking regulatory organ, he shall be given a public security administrative penalty; and if any crime is committed, he shall
be prosecuted for criminal liabilities.”

The present Decision shall enter into force as from January 1, 2007.

The Banking Supervision Law of the People’s Republic of China shall be re-announced after the Modifications have been made and the
sequential numbers of the articles are accordingly adjusted subject to the present Decision.



 
the Standing Committee of the NPC
2006-10-31

 







REPLY OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE CONCERNING THE APPROVAL OF THE QFII INVESTMENT QUOTA OF STANFORD UNIVERSITY AND ITS OPENING OF A FOREIGN EXCHANGE ACCOUNT AND A SPECIAL RMB ACCOUNT

Reply of the State Administration of Foreign Exchange concerning the Approval of the QFII Investment Quota of Stanford University
and Its Opening of a Foreign Exchange Account and a Special RMB Account

Hui Fu [2006] No.339

Shanghai Branch of HSBC:

We have received the materials on applying for the QFII investment quota of Stanford University and its opening of a foreign exchange
account and a special RMB account, which were submitted by you on behalf of Stanford University. After negotiation with the China
Securities Regulatory Committee, we hereby give the following reply:

1.

The QFII investment quota of Stanford University of USD 50 million is approved. Within 6 months as of the issuance date of this Reply,
Stanford University shall remit the principal.

2.

We approve that a foreign exchange account and a special RMB account are opened respectively by Stanford University at your Branch.
The revenue scope of the foreign exchange account shall be: the capital remitted by QFII from overseas, interests of small-sum current
deposits of the entities, and other revenues provisioned by the State Administration of Foreign Exchange; while the expenditure scope
shall be: the capital remitted into the special RMB account of QFII through exchange settlement, the capital repatriated via the
original channel and other expenditures as provisioned by the State Administration of Foreign Exchange.

3.

Stanford University may not conduct securities investment before the principal remitted by it reaches USD 20 million (or equivalent
RMB). Stanford University may, through exchange settlement, transfer the required capital of foreign exchange into the special RMB
account within 10 workdays prior to it conducts investment.

4.

You shall, during the period of providing QFII custody services, strictly comply with the Measures for Administration of Securities
Investment within the Territory of China by QFII (Decree No.36 of the China Securities Regulatory Commission, People’s Bank of China
and the State Administration of Foreign Exchange) and other related provisions, perform all duties of a trustee effectively, and
guarantee that Stanford University abide by the stipulations as mentioned above.

5.

You shall, within 5 workdays since you receive this Reply, come to the State Administration of Foreign Exchange to obtain a certificate
of QFII foreign exchange registration on behalf of Stanford University.

6.

You shall, within 5 workdays after you open the foreign exchange account and special RMB account for Stanford University, report the
related information concerning the opening of accounts to the State Administration of Foreign Exchange for the archival purpose.

The State Administration of Foreign Exchange

November 8, 2006



 
The State Administration of Foreign Exchange
2006-11-08

 







NOTIFICATION NO.30, 2006 OF THE TENDERING BOARD FOR FOREIGN ASSISTANCE PROJECTS OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA

Notification No.30, 2006 of the Tendering Board for Foreign Assistance Projects of the Ministry of Commerce of the People’s Republic
of China

Tong Gao [2006] No.30

Tendering Board of Foreign Assistance Projects of the Ministry of Commerce held the 30th regular meeting of 2006 on Nov 10, 2006.
Relevant matters and decisions are now announced as follows:

1.

The tendering board worked over the result of bid negotiation and contract price of the sports stadium construction in aid of Guinea
with head office of Shanghai Construction Group.

2.

The tendering board worked over the result of bid negotiation and contract price of parts supplying project under the 12th technical
cooperation of Tanzania-Zambia railway construction with China Civil Engineering Construction Corporation.

3.

The tendering board examined and approved enterprises winning the bid of project of computer and medical entrustment in aid of White
Russia.

4.

The tendering board examined and approved enterprises winning the bid of project of 30 fire engines in aid of Cambodia.

5.

The tendering board worked over the bidding means of the material project in aid of office of the president of Palestine.

The Tendering Board of Foreign Assistance Projects of the Ministry of Commerce

November 15, 2006



 
The Tendering Board for Foreign Assistance Projects of the Ministry of Commerce
2006-11-15

 







ANNOUNCEMENT NO. 70, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS ON PROMULGATING THE 2006 EDITION OF TABLE OF THE CRITERIA OF ORIGIN FOR THE GOODS OF HONG KONG ENpost_titleD TO PREFERENTIAL TREATMENT FOR TRADE IN GOODS AND TABLE OF THE CRITERIA OF ORIGIN FOR THE GOODS OF MACAO ENpost_titleD TO PREFERENTIAL TREATMENT FOR TRADE IN GOODS

Announcement No. 70, 2006 of the General Administration of Customs on Promulgating the 2006 Edition of Table of the Criteria of Origin
for the Goods of Hong Kong Enpost_titled to Preferential Treatment for Trade in Goods and Table of the Criteria of Origin for the Goods
of Macao Enpost_titled to Preferential Treatment for Trade in Goods

[2006] No. 70

According to Closer Economic Partnership Arrangement between Mainland and Hong Kong and Closer Economic Partnership Arrangement between
Mainland and Macao and their supplementary agreements, the Table of the Criteria of Origin for the Goods of Hong Kong Enpost_titled to
Zero-tariff for Trade in Goods Newly Increased from January 1, 2007 (hereafter referred to as Hong Kong Table of the Criteria, see
Appendix 1) and the Table of the Criteria of Origin for the Goods of Macao Enpost_titled to Zero-tariff for Trade in Goods Newly Increased
from January 1, 2007 (hereafter referred to as Macao Table of the Criteria, see Appendix 2) are hereby promulgated and shall enter
into force as of January 1 2007.

Simplified names of goods are used in Hong Kong Table of the Criteria Table and Macao Table of the Criteria, the scope of which are
consistent with the goods under corresponding tax codes in Customs Import and Export Tariff of the People’s Republic of China.

Appendix 1: Table of the Criteria of Origin for the Goods of Hong Kong Enpost_titled to Zero-tariff for Trade in Goods Newly Increased
from January 1, 2007

Appendix 2: Table of the Criteria of Origin for the Goods of Macao Enpost_titled to Zero-tariff for Trade in Goods Newly Increased from
January 1, 2007

The General Administration of Customs

November 30, 2006



 
The General Administration of Customs
2006-11-30

 







ANNOUNCEMENT ON THE FIRST NEGOTIATED BIDDING FOR EXPORT QUOTAS OF RUSH FAMILY AND ITS PRODUCTS OF 2007

Announcement on the First Negotiated Bidding for export quotas of Rush family and its products of 2007

The first negotiated bidding for export quotas of Rush family and its products of 2007 shall start on December 14, 2006. In accordance
with the relevant provisions of Measures for the Invitation of Bid for Export Commodity Quotas and the Rules for the Implementation
of Invitation for Bids for Agricultural Product Export Quotas (Wai Jin Mao Mao Fa [2001] No.670), the relevant matters are hereby
promulgated as follows:

I.

Names of the Commodities under the Invitation for Bids and Their Coding (hereafter the tariff serial numbers affirmed by the adjustment
in 2007 are to be treated as final)

1.

Rush (cleaned, bleached or dyed)

14019030.10￿￿temporarily not arranged for a invitation for bid

2.

Rush Products

46012021.11￿￿Rush-made Jacquard mat, double-sided mats and pads;

Mats (with unit area above one square meter, whether binding or not);

46012021.12, Other Rush-made mats of (with unit area above one square meter whether binding or not);

94042100.10, Rush-covered mats of (with unit area above one square meter whether binding or not).

II.

Amount of Biding: 6,660,000 kg

III.

Qualification for Bid

1.

Possessing the right to operate imports and exports, being registered at the administrative department for industry and commerce,
and having acceded to China Chamber of Commerce for I/E of Light Industrial Products & Arts-Crafts (where it is a foreign-funded
enterprise, it must be on China Association of Enterprises with Foreign Investment);

2.

The registered capital amounting to 500,000 Yuan and sales income (including exports and domestic sale) in 2005 amounting to 3,000,000
Yuan; and

3.

It is an export enterprise whose average annual performance of Rush-made products export from 2004 to 2006 (form January to October)
amounts to 50,000 kg; or it is a production enterprise whose average annual performance of export goods supply from 2004 to 2006
(form January to October) amount to 400,000 kg and who possess the right to operate foreign trade; or it is an foreign-funded enterprise
whose exporting scale is approved by Ministry of Commerce.

IV.

Time for Bid

Time for Biding: December 14 and 15, 2006

Time for Ending the Invitation for Bidding: 11￿￿0, December 15, 2006

Time for Opening Bid: 14￿￿0, December 15, 2006

V.

Means of Bid

Bids will be conducted via www.ec.com.cn. An enterprise may send only one electronic bid document before the time point for ending
the invitation for bidding. When an enterprise successfully sent more than two (including two) electronic bid documents, the bid
documents, shall be regarded as invalid. In case an enterprise fails to send an electronic bid document prior to the provided time
limit, it shall be regard as an automatic abandon of its qualification for bid.

China International Electronic Commerce Center (EDI) shall be responsible for the technical guarantee work for the electronic bids.
Problems on concrete operation shall be interpreted by EDI, the telephone and fax of which are 010-67870108and 010-67800343 respectively.

V.I

Amount of Bid

The Bidding office shall determined the maximum amount of bid of an enterprise according to its average annual performance of export
goods supply from 2004 to 2006 (from January to October) (Amount of Export Goods Supply = Amount of Export + Amount of Export Goods
Supply ￿￿0%, note that the Amount of Export Goods Supply herein does not include the amount of self-operated exports). Where it
is a foreign-funded enterprise, the amount of bid thereof shall be determined in terms of the exporting scale as approved by Ministry
of Commerce. China International Electronic Commerce Center of the Ministry of Commerce shall, after approval of the Committee for
Invitation for Bid for Export Commodity Quotas, determine the maximum amount of bid for an enterprise by means of the electronic
bid document. An enterprise may incept its maximum amount of bid in its electronic bid document. Any bid document with an amount
of bid above its maximum amount of bid shall be treated as an invalid bid.

VII.

Base Price for Bid

All the enterprises whose bid price is not lower than the level of the base price for bid as provided for by the Committee for Invitation
for Bid are bid winners.

A bidding enterprise may directly incept e base price for bid as provided for by the Committee for Invitation for Bid in its own electronic
bid document.

VIII.

Price of Winning Bid and Amount of Winning Bid

The price of winning bid of a bid winner is its price of bid.

The amount of winning bid of an enterprise shall be calculated according to the following formula (the all-year total amount of winning
bid by a foreign-funded enterprise shall not exceed the scale approved by Ministry of Commerce):

The Amount of Winning Bid of an Enterprise=the Amount of Invitation for Bid ￿￿he Bidding Sum of the Enterprise (the Price of Bid
Quota ￿￿he Amount of Bid)/ Summation of the Bidding Sum of each Bid Winner (the Price of Bid Quota ￿￿he Amount of Bid)

IX.

Inquiry of the Result of Winning Bid

This public bidding shall be opened on December 15 2006, and the preliminary result of winning bid will be promulgated on www.ec.com.cn
on December 18. In case an enterprise which has any question, it may submit to the Bidding office before 16￿￿00 of December 19. Any
bidding enterprise may inquire about its status of winning bid via www.ec.com.cn after 9￿￿00 of December 29. The Public Bidding Administration
will not issue a written Notice for Winning Bid.

X.

Deposit for Winning Bid

The deposit for winning bid for this invitation for bid is 20% of the award amount for the bid winner. Any enterprise which won the
bid shall remit the deposit for winning bid(price of winning bid ￿￿mount of winning bid￿￿0%) into an appointed bank account(Name
of the Entity: China Chamber of Commerce for I/E of Light Industrial Products & Arts-Crafts; Bank for Opening the Account; Beijing
Wanda Square Branch of China CITIC Bank; Account Number: 7112410182600001628) before January 20, 2007.Any enterprise which fails
to do so shall be punished in accordance with the relevant provisions of Measures for Invitation of Bid.

XI.

The Address of the Bidding office of Export Quotas of Rush family and its Products: 10/F, Building 12, Panjiayuan Nanli, Chaoyang
District, Beijing

Contact Tel.: 010-67732681￿￿87789545

Fax: 010-67700374

XII.

List of the Enterprises Participating in this Negotiated Bidding

1.

Ningbo Arts & Crafts I/E Corp.

2.

Zhejiang Arts & Crafts I/E Co., Ltd

3.

Jiangsu Holly Corporation

4.

China Plaited Products Co., Ltd.

5.

Ningbo Zhonglin Foreign Trade Co., Ltd

6.

Shanghai Arts & Crafts & Daily Necessities I/E Co., Ltd

7.

Xia Men Hua He Co., Ltd.

8.

Ningbo Xinyi Rush Products Co., Ltd.

9.

Sichuan Arts & Crafts I/E Corp.

10.

Ningbo Haifeng Arts & Crafts & Knitting Co., Ltd

11.

Ningbo Kaicheng Arts & Crafts Co., Ltd

12.

Sichuan Eyebrow Mountain Xinda Arts & Crafts Co., Ltd

13.

Ningbo Hengtai Straw Products Co., Ltd

14.

Ningbo Xinxing Arts & Crafts Co., Ltd

15.

Ningbo Sentian Decoration Products Co., Ltd

16.

Ningbo Xingning Arts & Crafts Industrial Corp.

17.

Ningbo Reyda International Economic & Trade…Co., Ltd.

18.

Anhui Arts&Crafts Imp.&Exp. Co., Ltd.

19.

Ningbo Tianyun Straw Art Co., Ltd.

20.

Shanghai Xingri Mats Products Co., Ltd.

21.

Shanghai Jingmao Industrial Co., Ltd

22.

Ningbo Huijia Knitting Co., Ltd

23.

China Arts & Crafts Nanjing I/E Corp.

24.

Ningbo Huabei Knitting Co., Ltd

25.

Taizhou Dubian Arts & Crafts Co., Ltd.

26.

Anhui Chuzhou Foreign-trade Straw Arts & Crafts Products General Factory

27.

Yuyao Jinteng Agricultural Products Development Co. Ltd.

28.

Taizhou Taifeng Straw Products Co., Ltd.

29.

Zhejiang Yiwei Arts & Crafts Co., Ltd.

30.

Ningbo Meihu Straw Products Co., Ltd.

31.

Ningbo Yinzhou Xingming Arts & Crafts & Knitting Co., Ltd.

32.

China Tea Co. Ltd.

33.

Hubei Beige Arts & Crafts Co., Ltd.

34.

Hefei Yiyuan Straw Products Co., Ltd.

35.

Ningbo Yingzhou Lanbao Arts & Crafts Factory

36.

Ningbo Haitian International Trade Co., Ltd.

37.

Ningbo United Group Imp and Exp Co., Ltd.

38.

Ningbo Yinzhou Hengye Industry and Trade Co., Ltd.

39.

Anhui Huaying Straw Arts & Crafts Co., Ltd.

40.

Zhejiang Dida Imp. and Exp Co., Ltd.

41.

Ningbo Jiayuan Knitting Factory

42.

Silvertime Holding Co., Ltd.

43.

Zhejiang Huiling Foreign Trade Co., Ltd.

44.

Ningbo CNACC Import & Export Co., Ltd.

45.

Zhejiang Orient Holdings Co., Ltd.

Committee for Invitation for Bid for Export Commodity Quotas

December 8, 2006



 
Committee for the Invitation for Bid for Export Commodity Quotas
2006-12-08

 







CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING SOME MATTER ON SEVERELY CRACKING DOWN ON ILLEGAL ISSUANCE OF STOCKS AND ILLEGAL OPERATION OF SECURITIES BUSINESS

Circular of the General Office of the State Council Concerning Some Matter on Severely Cracking Down on Illegal Issuance of Stocks
and Illegal Operation of Securities Business

Guo Ban Fa [2006] No.99

The people’s governments of each province, autonomous region and municipality directly under the Central Government, each ministry
and commission of and department directly under the State Council:

In recent years, illegal issuance of stocks and illegal operation of securities business (hereinafter referred to as illegal securities
activities) arise now and then in some regions of China, in one or two regions, this tide even trends to spread, which severely harms
social stability and financial security. With a view to implementing the related provisions of the laws concerning company and securities,
preserving the normal order of securities market and protecting the lawful rights and interests of the vast number of investors,
we hereby inform the following related matters on severely cracking down on illegal securities activities upon the consent of the
State Council:

1.

Improving the awareness, unifying the thoughts and controlling the spreading trend of illegal securities activities with a firm hand

Illegal securities activities possess such identities as hidden means, deep fraudulence, fast spreading, easy re-occurrence and so
on, in addition to which, they involve massive people with most investors as retirees, off-duty employees and other mass with trebles,
so it is prone to cause massive incident. At present, illegal securities activities are mainly conducted in the forms as follows:
firstly, drawing up such false information as that a company is under establishment domestically or overseas or that the issuance
of stocks has been approved by the related departments under the government in order to inveigle the general public to purchase the
so-called “original issue stock”; secondly, illegal intermediate organs, without approval of statutory authorities, illegally purchase/sell
the stocks of unlisted companies from/to the general public directly or upon agency in the name of investment consultant institution,
property right brokerage company or representative office of foreign-funded company or foreign investment company located in China;
lastly, lawbreakers defraud money and properties from the mass by luring them with large amount of return in the name of securities
investment.

Each local people’s government and related department of the state council shall further unify the thoughts, pay more attention to
and be sufficiently aware of the hazardness of illegal securities activities as well as enhance political responsibility. They shall
consummate the policies and regulations about cracking down on illegal securities activities and the mechanism of joint execution
of law , check and punish a batch of major and main cases, investigate the responsibilities of the relevant personnel in accordance
with law, establish and improve mechanism with a long-term effectiveness to prevent and crack down on illegal securities activities
so as to end the spreading trend of illegal securities activities radically.

2.

Clearly dividing the duty, intensifying cooperation and shaping a joint force of law execution to crack down on illegal securities
activities

For the purpose of intensifying the organization and direction, with China Securities Regulatory Commission as the leading and the
Ministry of Public Security, the State Administration for Industry and Commerce and China Banking Regulatory Commission as the assistants
as well as by inviting the Supreme People’s Court and the Supreme People’s Procuratorate to take part in, , a coordinating group
for cracking down on illegal securities activities shall be set up to take charge of organizing and coordinating work on cracking
down on illegal securities activities, interpreting the related policies as well as determining the nature. The office of the coordinating
group shall be set in China Securities Regulatory Commission, which shall organize special organs and right-hand personnel with clearly
divided duties and well communication, together with the related departments and the provincial people’s governments, set up a working
mechanism that may provide fast and effective response and close cooperation.

The people’s governments of each province, autonomous region, municipality directly under the Central Government and the city specifically
designated in the state plan shall take charge of investigating, punishing illegal securities activities and handling the follow-up
work thereof according to the principle of territory. Once any illegal securities activity is determined by China Securities Regulatory
Commission or any dispatched office thereof, the provincial people’s government shall take charge of investigating, punishing such
illegal securities activity and handling the follow-up work thereof within its jurisdiction. Where several provinces (regions, cities)
are involved, the provincial people’s government at the locality of the registration of the company involved shall act as the leading
role, and the related provinces (regions, cities) shall actively assist and coordinate. If a crime is suspected, the case shall be
transferred to the public security organ in a timely manner, which shall record the case and investigate the criminal liabilities
in accordance with law. In case no crime is constituted, the securities regulatory department and the administrative department of
industry and commerce shall impose administrative punishment in accordance with law and their respective duties.

The local people’s governments of each level shall pay more attention, make overall arrangement, deploy in a comprehensive way, set
up a pre-warning mechanism that combines the tip-offs by the mass, media surveillance and daily surveillance and administration with
timely investigation and punishment to prevent illegal securities activities, and set down a preplan for disposing risk. With respect
to regions where such cases arise frequently in recent years, the local people’s governments concerned shall conduct the investigation,
punishment and banning work immediately after a case arises, decisively handle, investigate and punish a batch of typical cases in
a centralized way and report them publicly so as to awe the criminals, educate the mass and preserve social stability.

3.

Defining policy limits and monitoring and administering in accordance with law

(1)

Severely prohibiting the issuance of stocks to the public without authorization. Public issuance, that is an act of issuing stocks
to unspecified objects or that the accumulated number of the shareholders is more than 200 in terms of issuing stocks to specified
objects, shall be reported to China Securities Regulatory Commission for examination and approval in advance, and it is illegal to
issue stocks publicly without approval of China Securities Regulatory Commission.

(2)

Severely forbidding the public issuance of stocks in any disguised form. It belongs to non-public issuance of stocks that the accumulated
number of the shareholders is not more than 200 after issuing stocks to specified objects. The stocks of non-public issuance and
stock equity thereof may not be issued and transferred in such public ways either direct disguised as advertisement, public announcement,
broadcasting, telephone, fax, letter, recommendation fair, explanation meeting, network, short message, public inducement and so
on. It is strictly prohibited that any corporate shareholder transfers stocks to the social public in a public way, either by themselves
or by entrusting other persons. With regard to transferring stocks to specified objects, the accumulated number of the shareholders
after the transfer may not exceed 200 if it is not reported to China Securities Regulatory Commission for examination and approval.

(3)

Strictly prohibiting the illegal operation of securities business. Such securities businesses as stock underwriting, brokering (buying
and selling upon agency), securities investment consultation and so on shall be operated by the securities institutions set up upon
the approval of China Securities Regulatory Commission in accordance with law, and no other institution or individual may operate
any securities business without approval of China Securities Regulatory Commission.

Any entity or individual that violates any of the three provisions mentioned above shall be clamped down firmly, and the legal responsibilities
shall be investigated in accordance with law.

China Securities Regulatory Commission shall, according to the provisions of the laws on company and securities, study and set down
the provisions on the administration of the limited liability companies that publicly issue stocks but are not listed in securities
exchanges (hereinafter referred to as unlisted public companies), which shall clarify the conditions for the establishment and issuance
of stocks of unlisted public companies, procedure of examination and approval for issuance and rules for registration, custody and
transfer, etc, so as to integrate the supervision and administration of unlisted public companies into the track of legal system.

4.

Intensifying the efforts in guiding public opinions and the education toward investors

In order to improve the consciousness and capability of the vast number of investors in identifying and preventing the risks of illegal
securities activities and prevent the occurrence of such activities as well as nip them in the bud, China Securities Regulatory Commission,
the Ministry of Public Security and other related departments shall lead the local people’s governments of each level to disseminate
the forms, characteristics, typical cases and severe harms of illegal securities activities in an all-round and multi-angle way by
comprehensively utilizing such media as newspaper, television, broadcast, internet, etc.

The General Office of the State Council

December 12, 2006



 
The General Office of the State Council
2006-12-12

 







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...