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NOTICE ON PRINTING AND DISTRIBUTING THE INTERIM MEASURES FOR THE INSPECTION OF EXPORTATION OF PRODUCTS OF FOREIGN-FUNDED ENTERPRISES OF THE PERMITTED CATEGORY WHOSE PRODUCTS ARE TO BE WHOLLY EXPORTED DIRECTLY

Ministry of Commerce, Ministry of Finance, General Administration of Customs, State Administration of Taxation

Notice on Printing and Distributing the Interim Measures for the Inspection of Exportation of Products of Foreign-funded Enterprises
of the Permitted Category Whose Products Are to Be Wholly Exported Directly

Shang Zi Fa [2006] No.1

To the competent departments of commerce, the public finance offices or bureaus, and the administrations of state taxation of all
the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning,
as well as Xinjiang Production and Construction Corp., Guangdong Branch of the General Administration of Customs, and all customs
offices directly under the General Administration of Customs, and the financial supervisor’s offices of the Ministry of Finance at
all the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning,

For the purpose of implementing the Notice on Adjusting Some Preferential Policies concerning Import Taxes (No.146 [2002] of the Ministry
of Finance), the Ministry of Commerce, Ministry of Finance, General Administration of Customs, and State Administration of Taxation
have jointly formulated the Interim Measures for the Inspection of Exportation of Products of Foreign-funded Enterprises of the Permitted
Category Whose Products Are to Be Wholly Exported Directly, which are hereby printed and distributed to you, please implement them
accordingly. In case you have any question in the process of implementation, please timely contact the relevant departments.

Ministry of Commerce

Ministry of Finance

General Administration of Customs

State Administration of Taxation

March 1, 2006 Annex:Interim Measures for the Inspection of Exportation of Products of Foreign-funded Enterprises of the Permitted Category Whose Products
Are to Be Wholly Exported Directly

Article 1

For the purpose of regulating the business operation activities of “foreign-funded enterprises of the permitted category whose products
are to be wholly exported directly”, the present Measures are formulated in pursuant to the requirements of the Notice on Adjusting
Some Preferential Policies concerning Import Taxes (Cai Shui[2002] No.146) of the Ministry of Finance, the former State Development
and Planning Commission, the former State Economic and Trade Commission, the former Ministry of Foreign Trade and Economic Cooperation,
General Administration of Customs, and the State Administration of Taxation, in accordance with the relevant provisions of the relevant
foreign investment laws and regulations and customs supervisions laws and regulations.

Article 2

The present Measures shall be applicable to the “foreign-funded enterprises of the permitted category whose products are to be wholly
exported directly” (hereinafter referred to as the “enterprises whose products are to be wholly exported”), namely, the foreign-funded
enterprises which are approved by the competent department for ratification and determined as “enterprises whose products are to
be wholly exported”, and enjoy tax reduction and exemption policies for importing equipment therefrom.

The present Measures shall not be applicable to the “enterprises whose products are to be wholly exported” that were established before
October 1, 2002, enterprises with the business scope of their products falling within the fields of other encouragement categories,
or any other foreign-funded enterprises.

Article 3

The inspection on exportation of products as mentioned in the present Measures shall include checking and investigation. Checking
shall refer to the inspection conducted on the exportation of products of the “enterprises whose products are to be wholly exported”
that were established after October 1, 2002 by the competent departments of commerce of all the provinces, autonomous regions, municipalities
directly under the Central Government, cities under separate state planning, and Xinjiang Production and Construction Corp. (hereinafter
referred to as the competent provincial departments of commerce) jointly with the financial supervisors’ offices of the Ministry
of Finance at the local regions, local customs offices, and the departments of state taxation (hereinafter referred to as the relevant
departments). Investigation shall refer to the inspection conducted on the exportation of products of the “enterprises whose products
are to be wholly exported” that were established before October 1, 2002 by the competent provincial departments of commerce jointly
with the relevant departments.

Article 4

The Ministry of Commerce shall be responsible for the administration of the inspection of exportation of products of the “enterprises
whose products are to be wholly exported”, and shall guide the inspection work countrywide jointly with the Ministry of Finance,
General Administration of Customs, and State Administration of Taxation. The competent departments of commerce at the provincial
level shall be responsible for the inspection on the “enterprises whose products are to be wholly exported” within their jurisdictions
jointly with the relevant departments.

Article 5

The time limit for checking shall be five years of the Gregorian Calendar from the day when the “enterprises whose products are to
be wholly exported” commence production. If these enterprises commence production after September 1 of the current year, the time
limit for checking shall be calculated from January 1 of the next year.

Article 6

Any “enterprise whose products are to be wholly exported” under the checking on its exportation of products shall submit the report
on the production, exportation, or sale of its products in the previous year (hereinafter referred to as the “Report”) in duplicate
and the customs declaration documents of import/export concerning the export products to the competent department of commerce at
the provincial level where it is located before January 31 of each year.

The report submitted by any “enterprise whose products are to be wholly exported” shall be signed by the legal representative of the
enterprise and affixed with the seal of the enterprise, and the contents of the report shall include: the name of the enterprise,
time for establishment, time for putting into production, output of the previous year, exportation conditions, whether the products
are to be sold in domestic market, and the tax payment of the enterprise in the current year, etc,. (For the detail, see the annexed
form), and shall be attached with the financial statements of the enterprise.

Article 7

The competent department of commerce at the provincial level shall make examination on the report within 60 days from the date when
it received the report jointly with the relevant departments. If the exportation of products complies with the provisions of Article
11 of the present Measures, the competent department of commerce shall, together with the local financial supervisor’s office, customs
house and department of state taxation, indicate the words of “The exportation of products complies with the facts” in the Report
submitted by the “enterprise whose products are to be wholly exported”, and affix the common seal. The competent departments of commerce
at the provincial level shall, collect the information on the examined exportation of products of the “enterprises whose products
are to be wholly exported” within their jurisdictions and report it to the Ministry of Commerce before April 15 each year,.

Article 8

The “enterprises whose products are to be wholly exported” that were established after October 1, 2002 and have accepted and passed
the annual checking shall apply for going through the relevant formalities for tax refund according to the relevant provisions within
15 days from the date when they have received the Report on the Quantity of Products for Export/Sale, which is sealed with the common
seals of the competent provincial departments of commerce and the local customs offices, administrations of state taxation, and financial
supervisor’s offices.

Article 9

The specific date of starting and ending the investigation shall be:

1.

For the “enterprises whose products are to be wholly exported” which were established and commenced production before October 1, 2002
and need continue importing equipment within the total investment after October 1, 2002, the time limit for investigation shall start
from October 1, 2002 till five years after the enterprises commenced production. If the equipment imported has not been actually
put into production and use at the time when the enterprises commenced production, the time limit for investigation on such equipment
shall be the five years after the day when the equipment imported is actually put into production.

2.

For the “enterprises whose products are to be wholly exported” which were established before October 1, 2002 but had not commenced
production, and need continue importing equipment within the total investment after October 1, 2002, the time limit for investigation
shall be five years of the Gregorian Calendar from the day when the enterprises commenced production. If the enterprises commence
production after September 1 of the current year, the time limit for checking shall be calculated from January 1 of the next year.

3.

For the “enterprises whose products are to be wholly exported” which were established before October 1, 2002 and no longer import
equipment after October 1, 2002, the time limit for investigation shall start from October 1, 2002 till five years after the enterprises
commenced production..

Article 10

The competent departments of commerce and the relevant departments at the provincial level shall make selective investigation on the
exportation of products of the “enterprises whose products are to be wholly exported” that still need investigation before the end
of March of each year. The competent departments of commerce at the provincial level shall send notice to the “enterprises whose
products are to be wholly exported”, and the enterprises that have received the notice shall submit the Report on the Quantity of
Products for Export/Sale of the enterprises in the previous year to the competent departments of commerce at the provincial level
where the enterprises are located within 15 days after receiving the notice. The contents of the report submitted and the ways of
submission shall be consistent with those of the Report on the Quantity of Products for Export/Sale as prescribed in Article 6 of
the present Measures.

The competent departments of commerce at the provincial level shall report the summary of investigation information on the “enterprises
whose products are to be wholly exported” within their jurisdictions to the Ministry of Commerce, and inform the local customs offices
of the name list of the enterprises that have not passed the investigation before May 1 each year.

Article 11

The total volume of products exported directly by the “enterprises whose products are to be wholly exported” in the previous year
shall reach 100% of the product sales revenue of the enterprises in the previous year.

Article 12

The “enterprises whose products are to be wholly exported” shall ensure that the materials submitted to the competent departments
of commerce at the provincial level are authentic and correct.

Article 13

In case any “enterprise whose products are to be wholly exported” that has enjoyed the policies of import tax refund or tax exemption
has the act of selling its products in domestic market in the inspection period afterwards due to the change of management environment
or market, it shall take initiative to apply to the local customs office for making up the import duty that has been refunded or
exempted within one month, and its refundable import duty of the current year and the following year shall not be refunded any longer.
After these procedures are gone through, it may be reduced or exempted from administrative punishment for the act of selling its
products in domestic market.

In case any “enterprise whose products are to be wholly exported” that has act of selling its products in domestic market in the inspection
period fails to apply for making up the tax within the time limit, or purposely disguises the facts or falsely reports that the exportation
of the enterprise has reached the examination standard in the Report on the Quantity of Products for Export/Sale submitted to the
competent department of commerce at the provincial level and is discovered to fail to reach the examination standard afterwards,
its refundable import duty in the current year or the following year shall no longer be refunded, and it shall be mandated to pay
the import duty that has been refunded or exempted in the previous years. The relevant departments shall impose punishment on it
for the aforesaid acts. If the enterprises sell or transfer equipments that are under customs supervision without permission, the
customs shall give them punishment.

Article 14

The competent departments of commerce at all levels and the relevant departments shall be diligent in the work of supervision and
inspection on the exportation of products of the enterprises, and shall hold on to principles and handle the problems discovered
in the checking and investigation according to the law.

Article 15

The Ministry of Commerce shall complete the inspection report of the previous year on the exportation of products of the “enterprises
whose products are wholly exported” before the end of June each year jointly with the Ministry of Finance, General Administration
of Customs, and State Administration of Taxation, and report it to the State Council.

Article 16

The power to interpret the present Measures shall remain with the Ministry of Commerce jointly with the Ministry of Finance, General
Administration of Customs, and State Administration of Taxation. The present Measures shall be come into force as of the date of
promulgation.



 
Ministry of Commerce, Ministry of Finance, General Administration of Customs, State Administration of Taxation
2006-03-01

 







ANNOUNCEMENT NO.16, 2006 OF MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS, PROMULGATING THE FOURTH BATCH OF CATALOGUE OF PROHIBITED EXPORTS






Announcement No.16, 2006 of Ministry of Commerce and General Administration of Customs, Promulgating the Fourth Batch of Catalogue
of Prohibited Exports

[2006] No. 16

In accordance with Foreign Trade Law of the People’s Republic of China and Administrative Regulations on Commodities Import and Export
of the People’s Republic of China, Catalogue of Prohibited Exports (the fourth batch) is now announced and will take effect as from
May 1, 2006.

Appendix: Catalogue of Prohibited Exports (the fourth batch)

the Ministry of Commerce

General Administration of Customs

Mar 13, 2006
Appendix:
Catalogue of Prohibited Exports (the fourth batch)




Serial number

￿￿

Serial
number

Commodity
code

Trade
name

Notes

1

250510000

Silica
sand and Quatrz sand

Commodities
under 2505 are generally called natural sand no matter they are colored up
or not, except metal sand

2

250590000

Other
trade names

 




LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING THE APPROVAL TO JAPAN SHENZHEN BRANCH OF MIZUHO INDUSTRY BANK, LTD. TO DEAL IN RMB BUSINESS FOR NON-FOREIGN-FUNDED ENTERPRISES

Letter of China Banking Regulatory Commission concerning the Approval to Japan Shenzhen Branch of Mizuho Industry Bank, Ltd. to Deal
in RMB Business for Non-foreign-funded Enterprises

Japan Mizuho Corporate Bank, Ltd.,

The letter which was signed by Hiroshi Saito, president of your bank, and was addressed to this Commission has been received.

The following reply are hereby given to you according to the Regulation of the People’s Republic of China on the Administration of
Foreign-funded Financial Institutions (Order No. 340 of the State Council, hereinafter referred to as the Regulation) and the Detailed
Rules for the Implementation of the Regulation of the People’s Republic of China on the Administration of Foreign-funded Financial
Institutions (Order No. 4, 2004 of China Banking Regulatory Commission, hereinafter referred to as the Detailed Rules):

Your Shenzhen Branch is approved to deal in RMB business for non-foreign-funded enterprises under the scope prescribed in Article
17 of the Regulation.

Your Bank is approved to make additional allocations of a sum of foreign exchange working capital in convertible currencies, equivalent
to 100 million Yuan to Shenzhen Branch. After increasing the capital, the working capital of this Branch comes up to 300 million
Yuan, of which the foreign exchange working capital in convertible currencies comes up to 200 million Yuan and the RMB working capital
comes up to 100 million Yuan.

After increasing capital and going through statutory formalities in accordance with the Regulation and the Detailed Rules, your Shenzhen
Branch may, under Article 35 of the Detailed Rules, deal in providing foreign exchange business services to various clients under
the following scope: providing RMB business services to foreign-funded enterprises, China-based foreign institutions, mainland-based
representative offices of the enterprises set up by people from Hong Kong, Macao and Taiwan, and to aliens, compatriots from Hong
Kong, Macao and Taiwan, and non-foreign-funded enterprises, pooling public deposits, granting short-term, medium-term and long-term
loans, transacting acceptance and discount of negotiable instruments, buying and selling government bonds and financial bonds, buying
and selling non-stock negotiable instruments denominated in a foreign currency, providing services on letter of credit and guaranties,
transacting domestic and overseas settlements, buying and selling foreign currencies, buying and selling foreign currencies for itself
or on a commissioned basis, converting foreign currencies, inter-bank funding, bank card business, safety-deposit box, providing
credit-standing investigation and consultation services, as well as other business activities upon the approval of China Banking
Regulatory Commission.

China Banking Regulatory Commission

March 20, 2006

 
China Banking Regulatory Commission
2006-03-20

 




CIRCULAR OF THE MINISTRY OF FINANCE AND STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING CONSUMPTION TAXES IN THE IMPORT LINK






Ministry of Finance, State Administration of Taxation

Circular of the Ministry of Finance and State Administration of Taxation on Relevant Issues concerning Consumption Taxes in the Import
Link

Cai Guan Shui [2006] No.22

The General Administration of Customs,

For the purpose of meeting the requirements for social and economic development and perfecting the consumption tax system, adjustments
are made to the tax items, tax rates and the relevant consumption tax policies upon the approval of the State Council. In light of
the Circular of Ministry of Finance and State Administration of Taxation on Adjusting and Perfecting Consumption Tax Policies (Cai
Shui [2006] No.33), a notice on relevant issues concerning the collection of consumption taxes in the import link is hereby circulated
as follows:

I.

Consumption taxes shall be collected on such new taxable items as golf balls and golf equipments, luxury watches, yachts, disposable
wooden chopsticks, solid wood flooring, naphtha, solvent oil, lubrication oil, fuel oil, aviation kerosene, and so on. Consumption
taxes on skin care and hair care products shall be canceled. And the consumption tax rates on cars, motorcars, automobile tyres and
white spirits shall be adjusted. The tax rates on naphtha, solvent oil, lubrication oil, and fuel oil shall be 30% of the amount
of consumption taxes payable at interim; consumption tax on aviation kerosene shall not be collected at interim; and consumption
tax on radial tyres shall be exempted.

II.

Up to14 categories of commodities are subject to import link consumption tax after the adjustment, and see the Attachment for the
specific tax items and tax rates.

III.

The relevant provisions of the Circular of the Ministry of Finance, the General Administration of Customs, and the State Administration
of Taxation on Printing and Distributing the Provisions on Issues of Tax Policy concerning Collection of Taxes on Imported Goods
by the Customs in the Import Link (Cai Guan Shui [2004] No.7) shall be observed when handling issues concerning the policy on the
import link consumption tax.

IV.

The present Notice shall come into force as of the day of April 1, 2006. In case that any former provision conflict with this Notice,
the present Notice shall prevail.

Attachment: Table of Tax Items and Tax Rates for Taxable Commodities Subject to Import Link Consumption Taxes

Ministry of Finance

State Administration of Taxation

March 30, 2006 Attachment:Table of Tax Items and Tax Rates for Taxable Commodities Subject to Import Link Consumption Taxeshtm/e04852.htmAttachment

￿￿

￿￿






 

Tariff Code

Names of Commodities

Tax Rates

Note

 

21069020

Compound alcoholic preparations used for the manufacture of beverages

5%

 

 

 

Beer made from malt, whose import duty-paid price is USD 370 per ton or more

250 Yuan per ton

1kg= 0.988 liters

 

22030000

Beers made from malt, whose import duty-paid value is less than USD 370 per ton

220 Yuan per ton

 

 

22041000

Grape Sparkling wine

10%

 

 

22042100

Small package wine made from fresh grapes

10%

 

 

22042900

Wine made from fresh grapes in other packages

10%

 

 

22043000

Other grape juices for brewing

10%

 

 

22051000

Small package vermouth and similar wines

10%

 

 

22059000

Vermouth in other packages and similar wines

10%

 

 

 

Yellow rice wine

240 Yuan per ton

1 kg = 0.962 liters

 

22060000

Other fermented beverages

10%

 

 

22071000

Undenatured ethyl alcohol of an alcoholic strength of 80% or more

5%

 

 

22072000

Ethyl alcohol and other spirits, denatured, of any strength

5%

 

 

22082000

Spirits made from distilling wines

20%+1yuan per kilogram

1 liter = 0.912 kg

 

22083000

Whisky

20% + 1 Yuan per kilogram

 

 

22084000

Rum and other spirits distilled from sugar canes

20% + 1 Yuan per kilogram

 

 

22085000

Gin

20% + 1 Yuan per kilogram

 

 

22086000

Vodka

20% + 1 Yuan per kilogram

 

 

22087000

Liqueurs and Cordials

20% + 1 Yuan per kilogram

 

 

22089010

Tequila

20% + 1 Yuan per kilogram

 

 

 

Undenatured ethyl alcohol of an alcoholic strength of less than 80%

5%

 

 

22089090

Liquor made from potatoes

20% + 1 Yuan per kilogram

 

 

 

Other liquors and alcoholic beverages

20% + 1 Yuan per kilogram

 

 

24021000

Cigars made from tobacco

40%

 

 

24022000

Cigarettes made from tobacco with the duty-paid value of each standard carton of imported cigarettes being 50 Yuan
or more

45% + 150 Yuan per standard container

One standard carton of cigarettes = 200 cigarettes;

One standard container of cigarettes = 50,000 cigarettes

 

 

Cigarettes made from tobacco with the duty-paid value of each standard carton of imported cigarettes being less than
50 Yuan

30%+150 Yuan per standard container

 

 

Cigarettes made from tobacco substitutes with the duty-paid value of each standard container of imported cigarettes
being 50 Yuan or more

45% + 150 Yuan per standard container

 

24029000

Cigarettes made from tobacco substitutes with the duty-paid value of each standard container of imported cigarettes
being less than 50 Yuan

30% + 150 Yuan per standard container

 

Cigar made from tobacco substitutes

40%

 

 

24031000

Tobacco for smoking

30%

 

 

24039100

￿￿Homogenized￿￿ or ￿￿reconstituted￿￿ tobacco

30%

 

ex

24039900

Manufactured tobacco and manufactured tobacco substitutes (excluding tobacco extracts and tobacco essences)

30%

 

 

27101110

Motor vehicle gasoline and aviation gasoline

0.2 Yuan per liter

1 kg = 1.388 liters

 

27101921

Light diesel oil

0.1 Yuan per liter

1 kg = 1.176 liters

 

27101911

Aviation kerosene

0.1 Yuan per liter, not collected for the time being

1kg =1.246 liters

 

27101120

Naphtha

0.2 Yuan per liter, and collected at the reduced rate of 0.06 Yuan per liter

1kg = 1.385 liters

 

27101120

Rubber solvent oil, paint solvent oil, and extractive solvent oil

0.2 Yuan per liter, and collected at the reduced rate of 0.06 Yuan per liter

1 kg= 1.282 liters

 

27101991

Lubricant oil

0.2 Yuan per liter, and collected at the reduced rate of 0.06 Yuan per liter

1kg = 1.126 liters

 

27101922

No.5-7 fuel oil

0.1 Yuan per liter, and collected at the reduced rate of 0.03 Yuan per liter

1kg = 1.015 liters

 

27101929

Other fuel oils (excluding wax oil)

0.1 Yuan per liter, and collected at the reduced rate of 0.03 Yuan per liter

Wax oil: the volume percentage of distillage being less than 20% under 350￿￿ and more than 80% under 550￿￿font>

ex

33021090

Mixtures of spices and other substances for drinks and food products of more than 0.5% of alcohol strength
by volume

5%

 

 

33030000

Perfumes &toilet waters

30%

 

 

33041000

Make-ups for lips

30%

 

 

33042000

Make-ups for eyes

30%

 

 

33043000

Make-ups for fingernail and toenail

30%

 

 

33049100

Sachet, whether or not compressed, for cosmetic/toilet use

30%

 

ex

33049900

Other beautification make-ups (excluding skin-care make-ups)

30%

 

 

36041000

Fireworks and fire crackers

15%

 

 

40111000

New pneumatic tires of rubber, of a kind used on motor cars, of radial ply construction

0

Radial tyres shall refer to the tyres whose tyre cords are arranged according to the direction of the radials in the
structure of the tyres, and have belted layers with the steel cord arranged adjacent to the circular that bind the
tyre body tightly

 

New pneumatic tires of rubber used on motor cars, or of non-radial-ply construction

3%

 

40112000

New pneumatic tyres of radial ply construction used on buses or lorries

0

 

New pneumatic tyres of non-radial-ply construction used on buses or lorries

3%

 

40114000

New pneumatic tires of rubber used on motorcycles

3%

 

40116100

Other new pneumatic tires of radial ply construction having a ￿￿herring-bone￿￿ or similar tread

0

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ADJUSTING THE POLICIES CONCERNING THE ADMINISTRATION OF CURRENT FOREIGN EXCHANGE ACCOUNTS

the State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Adjusting the Policies Concerning the Administration of Current Foreign
Exchange Accounts

Hui Fa [2006] No. 19

April 13, 2006

To all branches and foreign exchange administration departments of the State Administration of Foreign Exchange (the SAFE) in all
provinces, autonomous regions, and municipalities directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao,
Xiamen and Ningbo, and all designated Chinese-funded foreign exchange banks:

For the purpose of better satisfying the demands of domestic institutions and individuals for using foreign exchanges and promoting
the trade facilitation, we hereby notify the relevant matters on adjusting the policies concerning the administration of current
foreign exchange accounts as follows according to the Announcement No. 5 [2006] of the People￿￿s Bank of China:

I.

Annulling the beforehand examination and approval for the opening of current accounts of foreign exchange and raising the quota of
current foreign exchange accounts

1.

The foreign exchange bureau shall not conduct advance examination and approval for the opening, alteration and closing of current
foreign exchange accounts of domestic institutions any more. Where a domestic institution that has already opened any current foreign
exchange account needs to open a new current foreign exchange account again, it may directly go through the account opening formalities
at a designated foreign exchange bank (hereinafter referred to as the bank) upon the strength of an account opening application form,
its business license (or registration certificate for social organizations) and its organization code. Where a domestic institution
that has not opened any current foreign exchange account before needs to open a new current foreign exchange account, it shall firstly
register its basic information at the foreign exchange bureau upon the strength of its business license (or registration certificate
for social organizations) and its organization code before going through aforesaid formalities.

2.

The quota of the foreign exchange that can be preserved at the current foreign exchange accounts of a domestic institution shall be
raised and be determined in light of the sum of 80% of the foreign exchange incomes under current accounts and 50% of the foreign
exchange expenditures under the current accounts in the previous year. Where a domestic institution that has no foreign exchange
expenditure under current accounts in the previous year and needs to open an account, the initial quota of its current foreign exchange
account shall be adjusted to the equivalent not more than 500,000 US Dollars.

3.

Where a domestic institution that has carried out transactions before needs to pay foreign exchange for external payment, it may purchase
foreign exchange in advance at the account-opening bank upon the strength of valid vouchers and business documents as prescribed
by the Provisions concerning the Control of Settlement, Sale and Payment of Foreign Exchange and other relevant provisions on the
administration of foreign exchange, and deposit the foreign exchange into its current account of foreign exchange.

II.

Simplifying the vouchers for the sales and payments of foreign exchange in the service trade and adjusting the quotas for the examination
and approval of sales and payments of foreign exchange in the service trade

1.

Where a domestic institution or individual pays the equivalent of 50,000 US Dollars or less to an overseas institution or pays the
equivalent of 5,000 US Dollars or less to an overseas individual for the expenses under the item of service trade, the domestic institution
or individual shall, upon the strength of the contract (agreement) or the invoices (letter of payment), go through the formalities
for purchasing foreign exchange; where a domestic institution or individual purchases foreign exchange exceeding the aforesaid quota,
the original provisions shall prevail.

2.

Where a domestic institution or individual pays foreign exchange under the item of service trade through the internet or by any other
method of electronic commerce, it or he may go through the formalities for purchasing foreign exchange upon the strength of the relevant
contract (agreement), the notice on payment that are downloaded from the network and affixed with signature or seal.

3.

As to the sales or payment of foreign exchange under the item of service trade, for which the examination and approval of documents
are not clearly prescribed by any law, it shall be subject to the examination and approval of the bank if the foreign exchange is
the equivalent of 100,000 US Dollars or less and, or shall be subject to the examination and approval of the local foreign exchange
bureau if the foreign exchange is the equivalent of more than 100,000 US Dollars.

4.

Where an international ocean shipping enterprise (including the international shipping transportation, non-vessel shipping, shipping
agency and freight forwarding enterprises) pays the freight and relevant expenses under the item of international ocean shipping,
it may, directly purchase the foreign exchange at the bank; and a consignor may, in light of the business requirements, directly
pay the freight and the relevant expenses under the item of international ocean shipping to overseas shipping enterprises.

III.

Loosening the policies concerning the purchase of foreign exchange by domestic residents and implementing the administration of total
annual amounts

1.

The purchase of foreign exchange by domestic residents shall be subject to the administration of total annual amounts, and the total
annual amount shall be the equivalent of 20,000 US Dollars for each person per year. Where a domestic resident purchases foreign
exchange within the total annual amount, he shall handle it after declaring the purposes to the bank upon the strength of his real
identity certification; where he purchases foreign exchange that exceeds the total annual amount, he shall handle it after the bank
examines the voucher on real demands as prescribed in the provisions on the administration of foreign exchange.

2.

The foreign exchange purchased by a domestic resident within the total annual amount can be deposited into his domestic foreign exchange
account or used for the payment of foreign exchange under current accounts. Where he remits the foreign exchange abroad, withdraws
foreign currencies or carries them abroad, he shall handle it according to the prior provisions on the administration of foreign
exchange.

3.

The purchase of foreign exchange within the total annual amount by a domestic resident shall be conducted by himself or his lineal
relative he entrusts. Where the purchase is conducted by a lineal relative of the resident, the identity certifications of both the
trustor and the agent, the certification on the kindred and the letter of authorization issued by the trustor shall be provided.

4.

The foreign exchange bureau shall not undertake the cancellation administration of the purchase of foreign exchange by domestic residents.

IV.

Regulating the administration of operations and strengthening the monitoring and warning

1.

The foreign exchange bureau shall exercise the supervision over the foreign exchange incomes and expenses of domestic institutions
and individuals through the information system, and adjust the quota for the current foreign exchange accounts and the total annual
amounts of domestic residents for purchasing foreign exchange in light of the real requirements of the development of foreign-related
economy and the situation of balance of payment in the world market.

2.

A bank shall strengthen the examination and approval of the authenticity of foreign exchange inflows and settlements of domestic institutions
and individuals, and report the information on the opening and closing of foreign exchange accounts as well as the purchase of foreign
exchange by individuals to the foreign exchange bureau according to relevant provisions.

3.

The foreign exchange bureau shall investigate and deal with any violation of the provisions in the present Notice according to the
regulations on the administration of foreign exchange.

The present Notice shall come into force as of May 1, 2006. The matters as prescribed by the present Notice shall still be subject
to the current provisions. Where any provision promulgated earlier conflicts with the provisions in the present Notice, the latter
shall prevail.

All branches of the SAFE shall forward it to the sub-branches, foreign-funded banks, city commercial banks and rural credit cooperative
banks in their respective jurisdictions upon receipt of the present Notice; and all designated Chinese-funded foreign exchange banks
shall forward it to the branches in their respective jurisdictions upon receipt of the present Notice as soon as possible. In case
of any problem encountered in the implementation of the present Notice, please timely report it to the SAFE.

 
the State Administration of Foreign Exchange
2006-04-13

 




CIRCULAR OF THE PEOPLE’S BANK OF CHINA CONCERNING THE ADJUSTMENT OF THE RMB LOAN INTEREST RATES OF FINANCIAL INSTITUTIONS

Circular of the People’s Bank of China concerning the Adjustment of the RMB Loan Interest Rates of Financial Institutions

Yin Fa [2006] No. 134

Shanghai Headquarters, all branches and business management departments of the People’s Bank of China, all central sub-branches in
all provincial cities (capitals) and the Central Sub-branch in Shenzhen Municipality of the People’s Bank of China, all policy banks,
state-owned commercial banks, joint stock commercial banks, and the China Postal Savings and Remittance Bureau,

The People’s Bank of China decides to increase the benchmark interest rates for the loans granted by financial institutions as of
April 28, 2006. The relevant matters are hereby notified to you as follows,

I.

The interest rates for the loans granted by financial institutions shall be increased, among which the one-year loan interest rate
shall be increased by 0.27 %, from the present 5.58% to 5.85%. The loan interest rates for other loans shall also be adjusted accordingly
(For the details, please see Attachment 1). The floating methods for the loan interest rates shall remain unchanged.

II.

The interest rates for the loans of the individuals’ house accumulation funds shall be increased properly (For the details, please
see Attachment 1).

III.

The interest rates for the saving deposits in financial institutions shall remain unchanged. And the interest rates for the loans
granted by the People’s Bank of China to the financial institutions, the deposit reserve interest rates and the excessive reserve
deposit interest rates of financial institutions shall also remain unchanged.

IV.

The interest rates for the preferential loans (For the details, please see Attachment 2) increases correspondingly. The criterions
on the subsidies for the interest differences of preferential loans and the subsidizing methods shall remain unchanged.

Shanghai Headquarter and all branches (business management departments) of the People’s Bank of China, the central sub-branches of
the People’s Bank of China in all provincial cities (capitals), and the Central Sub-branch in Shenzhen Municipality of the People’s
Bank shall timely forward this Circular to the urban (rural) commercial banks, urban and rural credit cooperatives, foreign-funded
banks conducting RMB loan business, and other financial institutions within their respective jurisdictions, and urge them to timely
execute it. Meanwhile, they shall investigate into and research the responses and problems posed by all sides after the adjustment
of the interest rates, and report them to the Monetary Policy Department of the Headquarter of People’s Bank of China in a timely
manner.

(Fax: 010-66012765)

Attachments:

1.

Form of Adjustments of the Loan Interest Rates of Financial Institutions

2.

Form of Adjustments of the Interest Rates for Preferential Loans

The People’s Bank of China

April 27, 2006

 
The People’s Bank of China
2006-04-27

 




ANNOUNCEMENT NO.37, 2006 OF THE MINISTRY OF COMMERCE, THE STATE ENVIRONMENTAL PROTECTION ADMINISTRATION OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.37, 2006 of the Ministry of Commerce, the State Environmental Protection Administration of the People’s Republic of
China

In accordance with related regulations of Administrative Measures on Import and Export of Ozone-Depleting Substances (ODSs, No.278,
2003) jointly released by State Environmental Protection Administration, the former Ministry of Foreign Trade and Economic Cooperation
and General Administration of Customs, the gross volume of import quotas of controlled chlorofluorocarbons (CFCs) and the detergent
TCA in 2006 and related matters are now announced as follows for purposes of making good to the international conventions, phasing
out the production and consumption of ODSs and encouraging the use of ODSs substitutes.

1.

In line with principle of gradually cutting down the consumption of ODSs year by year and actual status of domestic productions and
consumption of ODSs, the gross volume of import quotas of the dispersant of MDI CFC-11 (trichlorofluoromethane) and the detergent
TCA in 2006 are 380 and 2,200 ton (please refer to Appendix for details).

2.

For the time being, 70 percent of the gross volume of import quotas of the dispersant of MDI CFC-11 (trichlorofluoromethane) and
the detergent TCA will be distributed, and the other 30 percent will be distributed in accordance with actual demands of both domestic
and overseas markets in September of 2006.

3.

Enhancing administration on quotas licensing of CFCs and controlling the gross volume of exports of CFC￿￿11, CFC￿￿12 and Halon 1301.
Enterprises shall submit the declaration forms of export and the duplicates to National Office of Import and Export Administration
of Ozone-Depleting Substances for registration immediately after finishing the contracts.

4.

In accordance with Administrative Measures on Import and Export of Ozone-Depleting Substances and Regulations on Strengthening Administration
on Import and Export of Ozone-Depleting Substances (No.85, 2000), enterprises applying for import quotas of CFCs and the detergent
TCA shall put forward applications to National Office of Import and Export Administration of Ozone-Depleting Substances and then
applying for import and export license to license-releasing organs authorized by Ministry of Commerce with Notice of Examination
and Approval of Import and Export of Controlled Ozone-Depleting Substances released by Office of Import and Export Administration.

Appendix: Form of Gross Volume of Import Quotas of Controlled Ozone-Depleting Substances in 2006 (omitted)

Ministry of Commerce

State Environmental Protection Administration

May 9, 2006



 
Ministry of Commerce, State Environmental Protection Administration
2006-05-09

 







CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON RELEVANT ISSUES ABOUT THE ADJUSTMENT OF FOREIGN EXCHANGE POLICIES ON PART OF THE INSURANCE BUSINESSES

Circular of the State Administration of Foreign Exchange on Relevant Issues about the Adjustment of Foreign Exchange Policies on Part
of the Insurance Businesses

Hui Fa [2006] No. 23
May 23, 2006

The branches and foreign exchange management departments under the State Administration of Foreign Exchange (SAFE) in all provinces,
autonomous regions, and municipalities directly under the Central Government, the branches in the cities of Shenzhen, Dalian, Qingdao,
Xiamen and Ningbo; all designated Chinese-funded foreign exchange banks, and all insurance companies,

For the purpose of facilitating the operation of insurance companies, and promoting the development of the insurance industry, the
SAFE determines to adjust the provisions on foreign exchange management on part of the insurance businesses, and makes the following
circular on relevant issues:

I.

The domestic insurance company that operates foreign exchange insurance business upon approval (including Chinese-funded insurance
companies, Sino-foreign joint venture insurance companies, solely foreign-funded insurance companies and the branches of foreign
insurance companies) and its branches (hereinafter referred to as the “insurance operation institutions”) shall make the following
adjustment on the foreign exchange policy for the insurance contracts which comply with the conditions prescribed in Articles 33
and 34 of the Interim Provisions on Foreign Exchange Management of Insurance Business (Hui Fa [2002] No.95), and are valued and
compensated with foreign exchange:

1.

The provisions that insurance operation institutions shall collect insurance premiums in foreign exchange shall be adjusted as: the
insurance operation institutions may choose Renminbi or foreign exchange in collection of insurance premiums, but shall not collect
foreign currency cash.

2.

The provisions that insurance operation institutions may pay compensations or reimburse insurance money with their self-owned foreign
exchange shall be adjusted as: the insurance operation institutions may pay insurance money from their foreign exchange accounts
or pay it by purchasing foreign exchange at the designated foreign exchange banks on the strength of the relevant insurance contracts
and claims computation letters.

II.

The domestic insurance operation institutions or insurance assets management companies may, upon the need of operation, make conversion
between foreign currencies at designated foreign exchange banks to adjust the kinds of their foreign exchange currencies.

III.

The restrictions on the purchase of foreign exchange by domestic insurance companies for handling overseas reinsurance ceding business
shall be cancelled. When dealing with overseas reinsurance ceding business of domestic insurance according to the relevant provisions
of the China Insurance Regulatory Commission, the domestic insurance operation institution that undertakes foreign exchange reinsurance
business upon the approval of SAFE or its branch administrations may make the payment of foreign exchange directly or through purchasing
foreign exchange at the designated foreign exchange banks in accordance with the actual need of operation and upon the strength of
the reinsurance contract, reinsurance policies or reinsurance lists of payment and other effective credences.

IV.

In accordance with the Notice of the State Administration of Foreign Exchange on Relevant Issues concerning the Submission of Foreign
Exchange Regulatory Statements on Insurance Business (Hui Fa [2003] No.27), the domestic insurance operation institutions shall
fill in the Statistical Forms for Foreign Exchange Insurance Business of Insurance Companies, and shall, in the column of “remarks”,
specify the information on the payment of foreign exchange for overseas reinsurance business of the last quarter. If they make the
payment by purchasing foreign exchange, they shall list the relevant amount of foreign exchange purchased, time of purchase, and
other contents.

V.

The present Notice shall enter into effect as of June 1, 2006. If there is any conflict in the previous provisions with this Circular,
the latter shall prevail. The Notice of the State Administration of Foreign Exchange and the China Insurance Regulatory Commission
on Relevant Issues concerning the Sale and Payment of Foreign Exchange for Overseas Reinsurance Ceding Business (Hui Fa [2003] No.75)
shall be abolished simultaneously.

After this Circular is received, each branch administration shall forward it to the insurance companies and foreign-funded banks within
its jurisdiction as soon as possible. Each Chinese-funded designated foreign exchange bank shall forward it to its subordinated branches
and subsidiaries as soon as possible. If any problem is encountered in the implementation, please feed back to the State Administration
of Foreign Exchange in time.

Contact Telephone: 010-68402381

Fax: 010-68402272



 
State Administration of Foreign Exchange
2006-05-23

 







CRITERIA ON THE REMISING OF STATE-OWNED LAND USE RIGHT ON THE BASIS OF AGREEMENT (FOR TRIAL IMPLEMENTATION)






Criteria on the Remising of State-owned Land Use Right on the basis of Agreement (For Trial Implementation)

Guo Tu Zi Fa [2006] No. 114
May 31, 2006

(Promulgated by Guo Tu Zi Fa [2006] No. 114 on May 31,2006 and shall enter into force as of August 1, 2006)

Catalogue
Foreword

1. Scope of Application

2. Quotative Criteria and Documents

3. Basis

4. General Rules

5. Selling Agreement in the Link of Land Supply

6. Application of a User of Allocated or Leased Land for on the basis of Agreement Selling

7. On the basis of Agreement Selling of the Use Right of Allocated Land

8. Dealing with the Conditions for Land Use, Such as Alteration of the Purpose of Use of the Assigned Land

Annex A Model Text Formatting for “Letter of Intent on the Selling State-owned Land Use right”

Annex B Model Text Formatting for “Notice on Granting to Transfer of the Use right of Allocated Land”
Foreword

For the purpose of perfecting the remising system of state-owned land use right, regulating the selling state-owned land use right
on the basis of agreement, unifying the relevant procedures and standards, strengthening the management of state-owned land assets
and promoting the construction of the land market, the current Criteria is formulated according to the Law of the People’s Republic
of China on Land Administration, the Law of the People’s Republic of China on the Administration of Urban Real Estate, the Interim
Regulation of the People’s Republic of China on the Assigning and Transferring Urban State-owned Land Use Right, and the Provisions
on the Remising on the Basis of Agreement of State-owned Land Use Right.

Annexes A and B herein are the model text formats which are required in the remising on the basis of agreement.

The current Criteria has been formulated and put under charge of the Ministry of Land and Resources.

The sketching-out entities of the current Criteria are: the Administrative Department of Land Utilization of the Ministry of Land
and Resources, the Land Sort-out Center of the Ministry of Land and Resources, the Administrative Department of Land and Resources
of Liaoning Province, the Administrative Department of Land and Resources of Heilongjiang Province and the Administrative Department
of Land and Resources of Jiangsu Province.

The chief sketching-out personnel of the current Criteria are: Liao Yonglin, Leng Hongzhi, Yue Xiaowu, Lei Aixian, Gao Yong, Xie Liangxiong,
Wu Di, Song Yubo, Mou Aofeng, Ye Weidong, Zhong Songyi, Lin Lisen, Shen Liang, Chen Meiying, Zhou Xu, Shen Fei and Zhang Fang. The
sketch out participants (arranged in a sequence with regard to the number of strokes of their surnames): Yu Shizhuan, Ma Shang, Wang
Wei, Che Changzhi, Deng Yuefang, Ye Yuanpeng, Ye dong, Ren Zhaohong, Guan Wenrong, Liu Xianqi, Liu Xiangyuan, Liu Ruiping, Zhu Yude,
Wen Hongxi, Yan Zheng, Wu Yonggao, Wu Haiyang, Zhang Wanzhong, Zhang Yingqi, Li Yanrong, Li Xiaojuan, Li Xiaobin, Shu Kexin, Yang
Yufang, Yang Jiangzheng, Xiao Jianjun, Chen Yongzhen, Chen Guoqing, Lin Junheng, Luo Yanguang, Zhu Jun, Hu Libing, Hu Hongbing, Zhao
Chunhua, Hao Jihu, Gao Zhiyun, Xu Jianshe, Tu Gaokun, Qin Shuilong, Qian Yougen, Liang Hong, Huang Wenbo, Han Jianguo, Han Hongwei,
Jin Wei, Pan Honggao, Wei Cheng, Wei Lihua

The Ministry of Land and Resources is responsible for interpreting the current Criteria.

1.

Scope of Application

The remising on the basis of agreement of state-owned land use right within the People’s Republic of China shall be governed by the
current Criteria. The base of agreement lease and remising of other state-owned land rights shall be directed according to the current
Criteria.

2.

Quotative Criteria and Documents

The clauses included in the following Criteria and documents constitute an integral part of the articles of the current Criteria because
of their quotation. All the versions included herein shall be of effect with promulgation of the current Criteria. All the parties
that apply the current Criteria shall use the latest versions of the standards and documents followed:

Regulations on the Urban Land Evaluation (GB/T 18508-2001)

Model Text of “Contract on the Remising of State-owned Land Use Right” (Guo Tu Zi Fa [2000] No. 303)

Classification of the National Land (Guo Tu Zi Fa [2001] No. 255)

Guidepost of the Land Used for Industrial Construction Projects (Guo Tu Zi Fa [2004] No. 232)

3.

Basis

(1)

Land Administration Law of the People’s Republic of China

(2)

Urban Real Estate Administration Law of the People’s Republic of China

(3)

City Planning Law of the People’s Republic of China

(4)

Administrative License Law of the People’s Republic of China

(5)

Contract Law of the People￿￿s Republic of China

(6)

Interim Regulations of the People￿￿s Republic of Chin Concerning the Assignment and Transfer of the Right to the Use of the State-owned
Land in the Urban Areas

(7)

The Implementation Program of Setting up and Perfecting the System of Education, Bylaws and Supervision to Improve the Measures Against
Corruption(Zhong Fa [2005] No. 3)

(8)

Order No. 15 of the State Council on Reinforcing the Administration of State-owned Land Assets (Guo Fa [2001] No. 15)

(9)

The State Council’s Decision Concerning Intensifying Reform and Strengthening Land Administration (Guo Fa [2004] No. 28)

(10)

Provisions on the Remising on the basis of Agreement of State-owned Land Use Right (Decree No. 21 of the Ministry of Land and Resources)

4.

General Rules

4.1

Connotation of Remising on the basis of Agreement of State-owned Land Use Right

The term “remising on the basis of agreement of state-owned land use right” herein means an act whereby the administrative department
of land and resources at the municipal or county level transfers state-owned land use right to land users for a fixed number of years,
and the land users shall pay fees for the remising of state-owned land use right.

4.2

Principles of Remising of State-owned Land Use Right on the basis of Agreement

(1)

Being open, fair and impartial; and

(2)

Being Honest and Credible.

4.3

The Range of Remising of State-owned Land Use Right on the basis of Agreement

The situations are as follows where an remising of state-owned land use right may be directed by bringing an agreement to an end unless
it is set down by any law, regulation or rule that the ways of bid tendering, auction or hanging out a shingle shall be used:

(1)

Any land, excluding those used for commerce, tourism, entertainment and commercial residence, is only one intended land user after
a plan of land supply is released;

(2)

If an original user of any allocated or leased land applies for remising on the basis of agreement, it may use the means of ending
an agreement upon getting an approval according to law, unless it is defined clearly in the Decision on the Allocation of State-owned
Land, the Contract on the Lease of State-owned Land, or any law, provision or administrative regulation that the land use right shall
be return to new public remising again;

(3)

If an application for remising on the basis of agreement is filed for assigning the use right of allocated land, after an approval
is gotten according to law, the means of bringing an agreement to an end may be adopted unless it is defined clearly in the Decision
on the Allocation of State-owned Land, the Contract on the Lease of State-owned Land, any law, provision or administrative regulation
that the land use right shall be return to new public remising again;

(4)

The ways of bringing an agreement to an end may be adopted where a user of any assigned land applies for renewal of the land use right
and if the application is approved through examination; and

(5)

Under any other circumstance where it is defined clearly in any law, regulation or administrative provision that an remising on the
basis of agreement may be directed.

4.4

Organizations Management that Take upon the Remising of State-owned Land Use Right on the basis of Agreement

The remising on the basis of agreement of state-owned land use right shall be organized and carried out by the administrative department
of land and resources at the municipal or county level.

The way of collective decision-making shall be used for the remising of state-owned land use right. The administrative department
of land and resources at the municipal or county level may establish an institution responsible for the coordination and decision-making
of the remising of state-owned land use right in order to see to coordinate and cope with the relevant problems in the process of
remising and determine the relevant matters in a collective manner according to the real situation.

4.5

Arbitrament about Dispute on Prices of Remising on the basis of Agreement

As far as any land that is exclusively used for business infrastructure or mining is concerning, a ruling system for any dispute on
prices of remising on the basis of agreement shall be set up. In the process of remising on the basis of agreement of any land under
the aforesaid category and if an intended user cannot accord with the assignor with regard to the assigning price because the intended
user thinks that the assigning price presented by the assignor is higher evidently than the market price of land, it may apply to
the administrative department of land and resources at the next higher level over the assignor for a ruling on the dispute on assigning
price.

4.6

Local Supplementary Provisions

A region may make supplementary provisions or detailed rules for the implementation of the present rules and present them to the administrative
department of land and resources at the next higher level for archival filing.

5.

Remising on the basis of Agreement in the Link of Land Supply

5.1

The General Processes for Remising on the basis of Agreement of State-owned Land Use Right in the Link of Land Supply

(1)

Disclosing remising information, accepting applications for land use and determining the way of land supply;

(2)

Formulating a plan of remising on the basis of agreement;

(3)

Evaluating the land price and determining the base price;

(4)

Reporting for approval the plan of remising on the basis of agreement and the base price;

(5)

Negotiating and concluding a Letter of Intent;

(6)

Publication;

(7)

Bringing an agreement to an end on remising and publicizing the result of remising;

(8)

Verifying an Approval for Construction Land and delivering the land;

(9)

Delivering the land for land registration.

5.2

Publishing the Information on Remising, Accepting Applications for Land Use and Determining the Way of Land Supply

5.2.1

The administrative department of land and resources at the municipal or county level shall publicize to the general public the approved
remising plan of state-owned land use right, a region with mature conditions may detail the remising plan of state-owned land use
right by stages to the specific location and plots and publicize the relevant information to the general public in a timely manner
according to the progress of land supply. The information on a remising plan of state-owned land use right as well as the detailed
location and plots shall be publicized via www.landchina.com simultaneously.

5.2.2

The administrative department of land and resources at the municipal or county level shall publicize the information on a remising
plan and detailed location and plots of state-owned land use right, and shall make clear simultaneously the way and method for one
to apply for land use, and publicly accept applications for land use.

5.2.3

An entity or individual that requests for land use (hereinafter referred to as an intended land user) shall submit an application
for land use to the administrative department of land and resources at the municipal or county level according to an remising plan
of state-owned land use right and the information on detailed location and plots that have been publicized as well as based on the
demand of self-use land.

5.2.4

Within the prescribed time limit, the administrative department of land and resources at the municipal or county level may adopt the
means of remising on the basis of agreement if only one intended user applies for a plot, except for the operational land used for
commerce, tourism, entertainment and commercial residence. Where it cannot be determined whether a land falls within the scope of
remising on the basis of agreement remising or not, it may be determined by the institution responsible for the coordination and
decision-making of remising on the basis of agreement of state-owned land use right.

5.3

Formulating a Plan of Remising on the basis of Agreement

The administrative department of land and resources at the municipal or county level shall formulate an remising plan of state-owned
land use right in collaboration with such departments as planning department and according to its remising plan of state-owned land
use right, urban planning and the type and scale of the land that an intended applicant has applied for.

A plan of remising on the basis of agreement shall include: location of the to-be-assigned plot, boundary, purpose of use, area, fixed
number of year, demands for land use, time of land supply and way of land supply, etc..

5.4

Evaluating the Land Price and Determining the Base Price

5.4.1

Evaluating the Land Price

The administrative department of land and resources at the municipal or county level shall organized an evaluation on the normal market
price of the to-be-assigned plot based on the status of the to-be-assigned plot and according to the Regulations on the Urban Land
Price Evaluation.

The land price evaluation shall be directed by the administrative department of land and resources at the municipal or county level
or by the affiliated public institutions thereunder or may, be entrusted to evaluation institutions of land or real estate with the
qualification of land evaluation according to the actual demands.

5.4.2

Determination of the Base Price

The administrative department of land and resources at the municipal or county level or the institution in charge of the coordination
and decision-making of state-owned land use right shall make a collective decision so as to determine the base price of remising
on the basis of agreement according to the result of land evaluation, industrial policies and the land market.

The base price of remising on the basis of agreement shall not be any lower than the minimum price of remising on the basis of agreement
within the region where the plot is located.

Any base price of remising shall, once determined, be kept confidential before a remising is signed and no entity or individual may
divulge it.

5.5

Reporting Plan of Remising on the basis of Agreement and the Base Price for Approval

The administrative department of land and resources at the municipal or county level shall, according to the relevant provisions,
report the plan of remising on the basis of agreement and the base price to the competent people’s government for approval.

5.6

Negotiation and Conclusion of Letter of Intent

The administrative department of land and resources at the municipal or county level shall direct negotiate with the intended land
user on the price of land remising in light of the approved plan of remising on the basis of agreement and the base price. The negotiation
representatives of the administrative department of land and resources shall be over 2 persons in the process of negotiations.

Upon the consensus of both parties concerned through negotiation, the administrative department of land and resources at the municipal
or county level shall sign with the intended land user a Letter of Intent on the Remising of State-owned Land Use Right if it is
agreed that the assigning price shall be no less than the base price.

5.7

Publication

5.7.1

The administrative department of land and resources at the municipal or county level shall, after a Letter of Intent on the Remising
of State-owned Land Use Right is concluded, publicize such contents as the location, function of use, area, term for remising, demands
for land use, intended land users and the sketching-out price of remising in such designated places as the local tangible land market
as well as on the website www.landchina.com, wherein the method and way of feedback shall be given indications. The publication shall
be over 5 days.

5.7.2

During the period of publication, under the condition of any dissidence and if the administrative department of land and resources
at the municipal or county level does find any violation of the relevant laws and regulations in the process of examination, the
procedures for remising on the basis of agreement shall be ended.

5.8

Conclusion of Contract on Remising and Publication of Remising Results

Upon expiration of the publication period, under the condition of no dissidence or under the condition of any dissidence yet if the
administrative department of land and resources at the municipal or county level does not find any violation of any law or regulation
in the process of examination, the administrative department of land and resources at the municipal or county level shall sign with
the intended land user a Contract on the Remising of State-owned Land Use Right according to the commitments of the Letter of Intent
on the Remising of State-owned Land Use Right.

The administrative department of land and resources at the municipal or county level shall publicize the results of remising on the
basis of agreement to the general public on the website www.landchina.com as well as in such designated places as the tangible land
market within 7 days as of the day when a Contract on the Remising of State-owned Land Use Right is signed, in order to accept social
supervision.

The remising results to be publicized shall cover the location of land, area, purpose of use, development, grade of land, capacity,
term for remising, way of supply, assignee, trading price and trading time.

5.9

Verification and Issuance of the Land Using Permit for Construction and Delivery of Land

The administrative department of land and resources at the municipal or county level shall verify and issue the Land Using Permit
for Construction and give the land to the relevant assignee according to the schedule and term as specified in the Contract on the
Remising of State-owned Land Use Right and the Land Using Permit for Construction.

5.10

Coping with of Land Registration

An assignee shall, according to the provisions of the Contract on the Remising of State-owned Land Use Right, apply for dealing with
the formalities for land registration, collect the License for State-owned Land Use in order to get the land use right.

5.11

Archival Filing of Materials

After all the formalities for remising on the basis of agreement are gone through, the administrative department of land and resources
at the municipal or county level shall, according to the relevant provisions, put in order and place on archives the relevant materials
and documents in such links as the publication of remising information, application for land use, examination and approval, negotiation,
publicity and conclusion of agreement in the process of land remising. The materials of land remising that shall be placed on archives
include:

(1)

Application materials for land use;

(2)

Conditions of the land plot and the demands of the planning indicators for the land plot;

(3)

Evaluation Report on Land;

(4)

The base price of land remising and records of collective decision-making;

(5)

Scheme of remising on the basis of agreement;

(6)

Reply to a scheme of remising;

(7)

Notes of negotiations;

(8)

Letter of Intent on Remising on the basis of Agreement

(9)

Publication materials of remising on the basis of agreement;

(10)

Contract on the Remising of State-owned Land Use Right;

(11)

Announcement Materials on the Results of Remising on the basis of Agreement;

(12)

Verification and Issuance of the Land Using Permit for Construction as well as the relevant materials of land delivery; and

(13)

Other materials that shall be placed on archives.

6.

Application of Original User of any Allocated or Leased Land for Remising on the basis of Agreement

6.1

Where an original user of any allocated or leased land applies for remising on the basis of agreement, it shall be coped with according
to the following circumstances:

(1)

Where such demands for land use as the purpose of land use are not required to be altered and if the demands for planning are satisfied,
it shall be reported to the people’s government at the municipal or county level for approval and may be settled by means of remising
on the basis of agreement

(2)

Where such 7 demands for use as the purpose of land use can be altered upon approval of the administrative department of planning,
the relevant formalities for remising on the basis of agreement may be coped with upon approval of the people’s government at the
municipal or county level, unless it is defined clearly in the Decision on the Allocation of State-owned Land, the Contract on the
Lease of State-owned Land, any relevant law, regulation or administrative regulation that the use right of allocated land shall be
return to new public remising again.

6.2

Application and Acceptance

6.2.1

It or he shall apply to the administrative department of land and resources at the municipal or county level upon the following relevant
materials if the original user of any allocated or leased land applies for dealing with the formalities for remising:

(1)

An Application;

(2)

A License for State-owned Land Use, a Decision on the Allocation of State-owned Land or a Contract of the Lease of State-owned Land;

(3)

Certification of the property right of above-ground structures, constructional work as well as other attaching;

(4)

Effective identity supporting documents of the original user to the land use right;

(5)

Approval documents issued by the administrative department of planning on changing the purpose of land use; and

(6)

Any other relevant material as defined clearly by any law, regulation or administrative regulation to be presented.

6.2.2

It shall implement a preliminary examination on the application materials and decide whether to accept it or not after the administrative
department of land and resources at the municipal or county level accepts an application.

6.3

Examination and Making Sure of a Plan of Remising on the basis of Agreement

6.3.1

Examination

It shall direct an examination on the application materials according to the relevant provisions, and consult the opinions of the
administrative department of planning regarding the purpose of use of the plot after the administrative department of land and resources
at the municipal or county level accepts an application. Where, upon examination, an application for plot use abides by the planning
and meets the demands for dealing with the formalities for remising on the basis of agreement the administrative department of land
and resources at the municipal or county level shall carry out a land price evaluation, ascertain the sum of land remising and sketch
out a plan of remising on the basis of agreement.

6.3.2

Land Price Evaluation

The administrative department of land and resources at the municipal or county level shall carry out an evaluation on the market price
of remising of the applied plot as well as the price of rights and interests of the use right of allocated land or the market price
of the use right of the leased land. The base date of evaluation shall be regarded as the time of the remising. Where such demands
for land use as the purpose of land use are altered, the price of the land use right shall be evaluated according to the new terms
of demands for land use.

6.3.3

Verification of the Remising Sum and Sketching-out of the Remising Plan

The administrative department of land and resources at the municipal or county level or the institution in charge of coordination
and decision-making of state-owned land use right shall, according to the result of land price evaluation, industrial policies and
the current land market, make a collective decision, determine the sum of remising on the basis of agreement of land in a collective
manner and sketch out a plan of remising on the basis of agreement.

6.3.3.1

An applicant shall pay the price of remising on the basis of agreement of the land use right according to the following formulas:

(1)

Where such demands for land use as the purpose of use have not been changed

Payable Sum for the Remising of Land Use Right =Market Price of Remising of the Use Right of the to-be-assigned Land ￿C Price of Rights
and Interests of the Use Right of Allocated Land or the Market Price of the Use Right of Leased Land

(2)

Where such demands for land use as the purpose of use have been changed

Payable Sum for the Remising of Land Use Right = Market Price for Remising of the Use Right of the to-be-assigned Land on the New
Terms of Demands for Land Use – Price of Rights and Interests of the Use Right of Allocated Land or the Market Price of the Use Right
of Leased Land on the Original Terms of Demands for Land Use

6.3.3.2

A plan of remising on the basis of agreement shall cover the location, boundary, purpose of use, area, term, time of remising as well
as the payable sum for the remising of the plot subject to the dealing with of formalities for remising.

6.4

Report of Remising Plan for Approval

The administrative department of land and resources at the municipal or county level shall report the plan of remising on the basis
of agreement to the people’s government at the municipal or county level for examination and approval according to the relevant provisions.

6.5

Conclusion of Remising Contract and Publication of Remising Results

After the people’s government at the municipal or county level approves the plan of remising on the basis of agreement, the relevant
administrative department of land and resources shall recede the Decision on the Allocation of State-owned Land from the land user
or relieve the Contract on the Lease of State-owned Land, nullify the registration of land, take back the original land certificate
and sign with the applicant a Contract on the Remising of State-owned Land Use Right according to the approved plan.

After a Contract on the Remising of State-owned Land Use Right is signed, the administrative department of land and resources at the
municipal or county level shall publicize the results of remising according to Provision 5.8.

6.6

Dealing with of Land Registration according to Provision 5.10

6.7

Archival Filing of Materials

After all the formalities for remising on the basis of agreement are gone through, the relevant bureau of land and resources at the
municipal or county level shall arrange the relevant materials and documents in such links as the application for land use, examination
and approval and conclusion of contract in the process of land remising and place them on archives according to the relevant provisions.
The materials of land remising that shall be placed on archives include:

(1)

Application materials of an applicant;

(2)

Land conditions and the relevant materials;

(3)

Materials of land price evaluation;

(4)

Ascertaining materials of the sum of remising;

(5)

Plan of remising on the basis of agreement;

(6)

Reply to the remising plan;

(7)

Contract on the Remising of State-owned Land Use Right;

(8)

Announcement materials of remising on the basis of agreement; and

(9)

Other materials that shall be placed on archives.

7.

Remising on the basis of Agreement for the Transfer of the Use Right of Allocated Land

7.1

For an application for the transfer of the use right of allocated land, it shall be subject to the approval of the people’s government
at the municipal or county level and the relevant assignee may, upon getting approval, direct an remising on the basis of agreement,
unless it is defined clearly in the Decision on the Allocation of State-owned Land, or any law, regulation or administrative regulation
that the use right of allocated land shall be receded for new public remising.

7.2

Application and Acceptance

7.2.1

An original land user shall apply to the administrative department of land and resources at the municipal or county level for transfer
of the use right of allocated land with the following relevant materials:

(1)

An Application;

(2)

Certificate of State-owned Land Use Right and Decision on the Allocation of State-owned Land;

(3)

Certification on the property rights of above-ground structures, constructional work as well as other attaching;

(4)

Effective identity supporting documents of the original land user;

(5)

Written opinions of co-owners, in case any real estate is co-owned; and

(6)

Any other relevant material as defined clearly by any law, provision or administrative regulation to be presented.

7.2.2

After receiving an application, the administrative department of land and resources at the municipal or county level shall direct
a preliminary examination on the application materials which an applicant has presented and decide whether to accept it.

7.3

Examination and Determination of a Plan of Remising on the basis of Agreement

7.3.1

Examination

After accepting an application, the administrative department of land and resources at the municipal or county level shall direct
an examination on the application materials as presented by the applicant according to the relevant provisions and consult the opinions
of the administrative department of planning in term of

INTERNATIONAL TAXATION DEPARTMENT OF THE STATE ADMINISTRATION OF TAXATION ON THE EXAMINATION AND APPROVAL OF ANTI-TAX-AVOIDANCE CASES

International Taxation Department of the State Administration of Taxation on the Examination and Approval of Anti-tax-avoidance Cases

Ji Bian Han [2006] No. 76
June 14, 2006

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

For the purpose of strengthening the management of auditing on cases of transfer pricing as well as arrangements of advance pricing
and improving the work efficiency, the State Administration of Taxation determined to elevate the measures and procedures for the
examination and approval of anti-tax-avoidance cases, we hereby inform the relevant issues as follows:

1.

As from June 19, 2006, a case involving the auditing on transfer pricing or arrangement of advance pricing which is reported to the
State Administration of Taxation for examination and approval shall not be made in written form any more and shall be subject to
the administration system of anti-tax-avoidance examination and approval or the management system of advance pricing without any
exception.

2.

The management system of anti-tax-avoidance examination and approval and the management system of advance pricing are located on the
supportive website of anti-tax-avoidance work on the internal network of tax authorities in the whole country, which is http￿￿//100.16.139.3.
A region can start the former website by inputting the web address into the address line of IE browser on computers that are linked
to the internal network of the tax authorities throughout the country. Before performing any report of cases for examination and
approval, a region shall read earnestly through the relevant instructions on the management system of anti-tax-avoidance examination
and approval, the management system of advance pricing as well as the operating instructions for provincial clients.

3.

In order to confirm a stable transition of the relevant work after the system is put into operation, the transfer of relevant data
shall be arranged as follows:

(1)

With regard to the data of a case which has been filed and settled upon examination and approval before June 19, 2006, the State Administration
of Taxation shall be responsible for uploading it into the system so that the relevant regions can log in the system for inquiry
and operation.

(2)

With regard to any application for filing or settling a case after June 19, 2006, the tax authority of the relevant province, autonomous
region, and municipality directly under the Central Government or city specifically designated in the state plan shall appoint special
personnel to answer for the log-in.

(3)

With regard to any case that has been filed upon examination and approval of the State Administration of Taxation before June 19,
2006 and has not yet been settled, the relevant region which wants to have it settled shall direct the settlement through the relevant
system.

(4)

With regard to a case of the previous year that was filed without being examined by the State Administration of Taxation, if it is
required to be settled after June 19, 2006, the relevant materials of case filing shall be completed in the system before any case
settlement is made.

4.

In case a region meets any problem in operation, it shall timely feed it back to the State Administration of Taxation for deliberation
and settlement.

Contact Person:

Xia Guangyu, Telephone: 010-63417922

Huang Xiaoli, Telephone: 010-63417964

Qian Yalin, Telephone: 0838-2511188-8322

 
The State Administration of Taxation
2006-06-14

 




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...