CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING THE COMPETENT DEPARTMENTS OF COMMERCE AT PROVINCIAL LEVEL TO EXAMINE AND MANAGE FOREIGN-FUNDED NON-VESSEL SHIPPING ENTERPRISES

Ministry of Commerce

Circular of the Ministry of Commerce on Entrusting the Competent Departments of Commerce at Provincial Level to Examine and Manage
Foreign-funded Non-vessel Shipping Enterprises

Shang Zi Han [2005] No. 89

January 22, 2006

The competent departments of commerce at all the provinces, autonomous regions, municipalities directly under the Central Government,
and cities specifically designated in the state plan, as well as that of the Xinjiang Production and Construction Corp.,

According to the request of the State Council for simplifying the system of administrative examination and approval, and for the
purpose of simplifying the procedures for the examination of the contracts and articles of association of foreign-funded enterprises,
improving efficiency, and speeding up the work for absorbing foreign investment in service trade fields, we hereby make the following
notice on relevant issues concerning entrusting the competent departments of commerce at all the provinces, autonomous regions, municipalities
directly under the Central Government, and cities under separate state planning, as well as that of the Xinjiang Production and
Construction Corp. (hereinafter referred to as the provincial competent departments of commerce) and the state level management commissions
of economic and technological development zones to make examination and management on some foreign-funded non-vessel shipping enterprises:

The provincial competent departments of commerce and the state level management commissions of economic and technological development
zones shall be entrusted to responsible for the work of examination and management of foreign-funded non-vessel shipping enterprises.

II.

Each entrusted department and institution shall, in accordance with the Provisions on the Administration of Foreign Investment in
International Maritime Transportation (No.1 [2004] of the Ministry of Communications and the Ministry of Commerce) and other laws
and regulations on foreign investment, strictly control the qualifications of foreign-funded non-vessel shipping enterprises, and
make careful examination on the applications of foreign-funded non-vessel shipping enterprises for their establishment and alteration,
and handle the applications after requesting the applicants to make report to the competent departments of communications for approval
in accordance with the procedures and conditions as prescribed in the aforesaid provisions. The entrusted departments and institutions
shall report any problem arising from the examination process to the Ministry of Commerce in a timely manner. If there is any act
of examination and approval that is in violation of regulations during the entrustment period, the Ministry of Commerce shall circulate
a notice on it in light of the circumstances or even takes back the entrustment.

III.

Each entrusted department and institution shall have the conditions for issuing the documents of approval for foreign-funded enterprises
by networking with the Ministry of Commerce and for online joint annual inspection, and do a good job for putting the examination
and approval on archives and making statistics by making use of the network license issuing system for foreign-funded enterprises.
The relevant statistical data shall comply with the requirements, so that it may be convenient for the Ministry of Commerce to know
the information and strengthen supervision. The Ministry of Commerce will carry out training on the local competent departments of
commerce and the state level management commissions of economic and technological development zones, so as to clarify the concrete
issues in the process of examination.

IV.

The entrusted state level management commissions of economic and technological development zones shall, in accordance with the Notice
of the General Office of the State Council on Transferring the Several Opinions of the Ministry of Commerce and Other Departments
concerning Promoting the State Level Economic and Technological Development Zones to Improve Development Level (No.15 [2005] of the
General Office of the State Council), implement the management system of simplification and high efficiency. After the state level
economic and technological development zones have put the management systems on archives, carried out personnel training, and passed
checking and acceptance for networking, the Ministry of Commerce shall handle the corresponding entrustment formalities by batch
separately.

The present entrustment shall take effect as of March 31, 2006.

Ministry of Commerce
2006-01-22

THE MEASURES GOVERNING ELECTRONIC BANKING

China Banking Regulatory Commission

Order of China Banking Regulatory Commission

No. 5

The “Measures Governing Electronic Banking”, which were adopted at the 40th chairman’s meeting of China Banking Regulatory Commission
on November 10, 2005, are hereby promulgated, and shall come into force on March 1, 2006.

Chairman Liu Mingkang

January 26, 2006

The Measures Governing Electronic Banking

Chapter I General Provisions

Article 1

The present Measures are formulated in accordance with the “Banking Supervision Law of the People’s Republic of China”, the “Law of
the People’s Republic of China on Commercial Banks”, the “Regulation of the People’s Republic of China on the Administration of
Foreign- funded Financial Institutions”, as well as other laws and regulations for the purposes of strengthening the risk management
of electronic banking, safeguarding the lawful rights and interests of customers and banks, and promoting the healthy and orderly
development of electronic banking.

Article 2

The term “electronic banking” as mentioned in the present Measures shall refer to the banking services provided to customers by commercial
banks or other financial institutions in the banking sector via the use of communication channels open to the general public or
the open public network, and the special networks built up by banks for certain self-service facilities or customers.

Electronic banking business includes: the banking business via the use of the computer or Internet (hereinafter referred to as online
banking business), the banking business via the use of audio equipment such as telephone or telecommunication network (hereinafter
referred to as telephone banking business), the banking business via the use of the mobile phone or wireless network (hereinafter
referred to as mobile banking business), and other banking business via the use of electronic service equipment and network, in
which customers complete their financial transactions by self-service means.

Article 3

Financial institutions in the banking sector and foreign- funded financial institutions established in accordance with the “Regulation
of the People’s Republic of China on the Administration of Foreign- funded Financial Institutions (hereinafter uniformly referred
to as financial institutions) shall develop the electronic banking business in accordance with the present Measures.

The financial asset management companies, trust and investment companies, finance companies, financial lease companies, which are
established inside the territory of the People’s Republic of China, and other financial institutions established upon approval of
China Banking Regulatory Commission (hereinafter referred to as CBRC) shall, when initiating electronic finance business of the electronic
banking nature, be governed by the relevant provisions on financial institutions to provide electronic banking business in the present
Measures.

Article 4

Upon the approval of CBRC, a financial institution may initiate its electronic banking business inside the territory of the People’s
Republic of China, to provide electronic banking services to enterprises, residents and other customers inside the territory of the
People’s Republic of China, or to develop the trans- territory electronic banking services in accordance with the relevant provisions
of the present Measures.

Article 5

A financial institution shall comply with the principles of rational planning, uniform administration and guaranteeing safe operation
of the system when developing the electronic banking services, and shall guarantee the healthy and orderly development of electronic
banking business.

Article 6

A financial institution shall, according to the feature of electronic banking business, establish and perfect the risk management
system and the internal control system for the electronic banking business, set up corresponding management departments, clarify
the duties of electronic banking business management, and identify, evaluate, monitor and control the risks of the electronic banking
business effectively.

Article 7

CBRC shall take charge of supervising and administering for electronic banking business.

Chapter II Application and Modification

Article 8

A financial institution shall, when initiating electronic banking business inside the territory of the People’s Republic of China,
file an application or make a report to CBRC in accordance with the relevant provisions of the present Measures.

Article 9

A financial institution that intends to initiate electronic banking business shall meet the following conditions:

(1)

Its business operation is in normal state, a sound risk management system and a sound internal control rules has been established,
and its main information management system and business handling system meet with no major breakdown within one year before it applies
for initiating electronic banking business;

(2)

It has constituted the overall development strategy, development planning, and electronic banking safety strategy for its electronic
banking business, and has established the organizational system and institutional system for risk management of the electronic banking
business;

(3)

It has, according to the development planning and safety strategy for electronic banking business, built up the basic facilities and
system for operation of electronic banking business, and has made necessary safety checking and business testing on relevant facilities
and systems;

(4)

It has made safety evaluation which meets the supervisory requirements on circumstance of risk management , work operation facilities
and system, and etc. of the electronic banking business.

(5)

It has set up a specific electronic banking business management department, and has staffed qualified managers and technicians for
it; and

(6)

Other conditions required by CBRC.

Article 10

A financial institution that initiates electronic banking business in the form of online banking operation or mobile banking operation,
etc. by using Internet as the medium shall, in addition to meeting the conditions listed in Article 9 , meet the following conditions:

(1)

Its basic facilities and equipment of electronic banking can guarantee the normal operations of electronic banking;

(2)

Its electronic banking system has the necessary business processing capacity, and can satisfy the customer’s demand for business processing
timely;

(3)

It has established an effective external attack detection mechanisms;

(4)

If it is a Chinese- funded financial institution in the banking sector, its electronic banking operation system and business processing
server should be established inside the territory of the People’s Republic of China; or

(5)

If it is a foreign- funded financial institution, its electronic banking operation system and business processing server may be established
either inside or outside the territory of the People’s Republic of China. When they are established outside the territory, the said
institution shall establish facilities and equipment inside the territory of the People’s Republic of China for recording and preserving
the transaction data, be able to meet the requirements of the financial regulatory department on on-site inspection, and be able
to, in case of any legal dispute, meet the requirements of Chinese judicial institutions on investigation and evidence collection.

Article 11

A foreign- funded financial institution that initiates electronic banking business shall, in addition to meeting the conditions as
listed in Article 9 and Article 10 , establish a business office inside the territory of the People’s Republic of China in accordance
with the relevant laws and administrative regulations, while the regulatory authorities of its home country (region) shall have
the legal framework and the supervisory capacity for the supervision of electronic banking business.

Article 12

When a financial institution applies for initiating electronic banking business, the approval system and report system shall be applied
separately on the basis of different types of electronic banking business.

(1)

For the electronic banking business initiated with Internet or other open network or wireless network, including online bank, mobile
bank, and the electronic banking initiated with PDA such as palm computer, the approval system shall be applied ;

(2)

For the electronic banking business initiated with domestic or regional telecommunication network or cable network, etc., the report
system shall be applied ; and

(3)

For the electronic banking business initiated with the special network built up by the bank for certain self-service facilities or
with the customer, the separate provisions in the laws, regulations or administrative rules, if any, shall be complied with, or the
report system shall be applied when there are no such provisions.

After a financial institution initiates electronic banking business, the relevant services it provides through the direct network
connections with its certain customer shall belong to the normal daily electronic banking services, not belong to the type of initiation
application for the electronic banking business.

Article 13

A financial institution shall, before applying for initiating the electronic banking business in need of examination and approval,
communicate with CBRC first regarding the business in application, stating the scheme on the design and construction of the system
and basic facilities, as well as the basic operational mode, etc. of the applied electronic banking business, It shall also, according
to the communication result , adjust the relevant scheme.

After the communication for supervision is conducted, the financial institution shall carry out the electronic banking system construction
according to the adjusted and improved scheme, and shall finish the internal testing work of the relevant system before filing the
application.

The objects of internal testing shall be limited to the insiders of the financial institution, the relevant working staff of the contracted
out institution, and the working staff of the relevant institution, but shall not extend to the ordinary customers.

Article 14

A financial institution may, when applying for initiating electronic banking business, simultaneously apply for different types of
electronic banking services in a same application report, but shall indicate the types of electronic banking business in the application.

Article 15

A financial institution shall, when applying to CBRC or its dispatched office for initiating electronic banking business, submit the
following documents and information (in triplets):

(1)

the application report for initiating electronic banking business, which was signed by the legal representative of the financial institution;

(2)

the type of electronic banking business to be applied for , and the kinds of business to be carried out;

(3)

the development planning on the electronic banking business;

(4)

the introduction on the operation facilities and technical system of the electronic banking business;

(5)

a testing report on the electronic banking business system;

(6)

a safety evaluation report on the electronic banking;

(7)

the operational emergency responding plan and business continuity plan on the electronic banking business;

(8)

the risk management system and corresponding rules on the electronic banking business;

(9)

the management department and management duties of the electronic banking business, as well as the introduction on the principal person-in-charge;

(10)

the name, telephone, fax, and e-mail box, etc. of contact person of the applicant institution, ; and

(11)

other documents and information to be submitted as required by CBRC.

Article 16

CBRC or its dispatched office shall, after receipt of the financial institution’s application materials, inform the financial institution
of the relevant requirements once and for all when requiring a commercial bank to supplement materials in light of the regulatory
requirements.

The financial institution shall work out and bind up the application materials anew in light of the requirements of CBRC or its dispatched
office, and correct the date of submission, as well.

Article 17

CBRC or its dispatched office shall, within 3 months as of receipt of the complete set of application materials for approval by a
financial institution for initiating the electronic banking business, make a written decision on approval or disapproval. If it decides
to disapprove the application, it shall explain the reason therefor.

Article 18

Where a financial institution applies an application report with more than one type of electronic banking business, CBRC or its dispatched
office may approve all or parts of the electronic banking services according to the relevant provisions and requirements.

With respect to the types of electronic banking business which are not approved by CBRC or its dispatched office, the financial institution
may file the application anew in accordance with the relevant provisions.

Article 19

A financial institution does not have to file an application if initiating the electronic banking services are applied by the report
system, but it shall, with reference to the relevant provisions in Article 15 , submit relevant materials to CBRC or its dispatched
office one month before initiating the electronic banking business.

Article 20

A financial institution may, after initiating electronic banking business, make use of the electronic banking platform to advertise
and sell traditional bank products and services, or develop new types of business according to the features of electronic banking
business.

A financial institution shall, when making use of the electronic banking platform to advertise relevant bank products or services,
abide by the relevant laws, regulations and business management rules. It shall, when making use of the electronic banking platform
to sell relevant bank products or services, carefully analyze and choose the products suitable to be sold by way of electronic banking,
instead of making use of electronic banking to sell banking products which may not be sold until the customer has been evaluated
or has confirmed the products face to face, unless there are otherwise different provisions in any law, regulation or administrative
rule.

Article 21

Where a financial institution adds or modifies the types of electronic banking business when required by its business development,
the approval system or report system shall be applied to .

Article 22

Where a financial institution adds or modifies any of the following types of electronic banking services, the approval system shall
be applied to :

(1)

the services as required by any relevant law, regulation or administrative rule to be subject to examination and approval, but which
the financial institution has not applied for, and prepares to initiate by making use of electronic banking;

(2)

the services which may not be carried out until is directly connected with the securities sector or insurance sector, etc. for real-time
data exchange when the financial institution applying the approved business to electronic banking;

(3)

the services to be carried out between financial institutions through the connected electronic banking platform; and

(4)

the services by trans- territory electronic banking .

Article 23

Where a financial institution adds or modifies any type of electronic banking service that is subject to examination and approval,
it shall submit the following documents and information (in triplets) to CBRC or its dispatched office:

(1)

the application for adding or modifying the type of business, which is signed by the legal representative of the financial institution;

(2)

definition and operational flow of the types of business services to be added or modified;

(3)

features of risks of the types of business services to be added or modified, and the prevention measures;

(4)

relevant management rules;

(5)

the name, telephone, fax, and e-mail box, etc. of the entity applicant’s contact person; and

(6)

other documents and information to be submitted as required by CBRC.

Article 24

A financial institution in the banking sector whose business activities are not restricted by region (hereinafter referred to as national
financial institution) shall, when applying for initiating electronic banking business or for adding or modifying any type of electronic
banking service which are subject to examination and approval, file the application via its head office (company) to CBRC.

A financial institution in the banking sector that is required by the relevant provisions to carry out business activities only in
a certain city or region (hereinafter referred to as regional financial institution) shall, when applying for initiating electronic
banking business or for adding or modifying any type of electronic banking services that are subject to examination and approval,
file the application via its legal entity to the local dispatched office of CBRC.

A foreign- funded financial institution shall, when applying for initiating electronic banking business or for adding or modifying
a type of electronic banking in need of examination and approval, file the application via its head office (company) or its principal
reporting bank inside the territory of the People’s Republic of China to CBRC.

Article 25

CBRC or its dispatched office shall, within 3 months as of receipt of a financial institution’s complete set of application materials
for adding or modifying a type of electronic banking business in need of examination and approval, make a written decision on approval
or disapproval. If it decides to disapprove the application, it shall explain the reason therefor.

Article 26

In case of any other type of electronic banking service, the report system shall be applied to , and the financial institution does
not have to file an application when adding or modifying it, but shall, within one month before initiating this type of business,
submit relevant materials to CBRC or its dispatched office with reference to Article 23 of the relevant provisions.

Article 27

A financial institution in the banking sector that has realized the centralized data processing and system integration (hereinafter
referred to as centralized data processing) may, after being approved to initiate electronic banking business, authorize its branch
to provide partial or all electronic banking services. Its branch shall, before initiating relevant business, report to the local
dispatched office of CBRC.

For a financial institution in the banking sector that has not realized centralized data processing, if the electronic banking processing
system of its branch is independent from that of the headquarters, and the branch is managed as a regional financial institution
when initiating electronic banking business, such a branch shall bring the head office’s authorization document to apply or report
to the local dispatched office of CBRC in accordance with the relevant provisions. Any other branch that does not fall under the
foregoing circumstance needs only to bring the head office’s authorization document to report to the local dispatched office of CBRC
before initiating the relevant business.

After a foreign- funded financial institution is approved to initiate electronic banking business, its branch inside the territory
shall, if intending to initiate electronic banking business, bring the head office’s (company’s) authorization document to report
to the local dispatched office of CBRC.

Article 28

A financial institution that has initiated electronic banking business shall, if deciding to terminate all the electronic banking
services or some types of electronic banking services according to the plan, report to CBRC 3 months in advance regarding the reason
for terminating the electronic banking services and the solution to relevant problems, etc., and meanwhile make an announcement.

A financial institution shall, if deciding to terminate part of the electronic banking service according to the plan, report to CBRC
in advance of one month before terminating the business, and make an announcement.

A financial institution must, if terminating its electronic banking services or part of business types, take effective measures to
protect the lawful rights and interests of customers, and make an effective solution regarding the problems that may arise.

Article 29

A financial institution shall, when need to initiate electronic banking business anew or carry out the terminated types of business
anew after terminating its electronic banking services or part of services types, file the application or go through the procedures
anew in accordance with the relevant provisions.

Article 30

Where a financial institution needs to pause its electronic banking services according to the plan due to upgrading or adjustment,
etc. of the electronic banking system, it shall choose a proper time to do so, try to minimize the impacts to the customers, and
make an announcement on its web site 3 days in advance.

Where a financial institution pause the work of electronic banking services unplanned for more than 4 hours within normal working
hours or for more than 8 hours beyond normal working hours caused by any emergency or any incidental factor, it shall, within 24
hours after pause of the services, report the relevant information to CBRC, and shall, within 3 days after the accident has been
basically settled, report the causes, influences, remedial measures and settlement, etc. of the accident to CBRC.

Chapter III Risk Management

Article 31

A financial institution shall include the risk management of the electronic banking services into its overall framework of risk management,
and shall, according to the operational features of the electronic banking services, establish and improve its risk management system
for electronic banking, and the internal control system for the safety and stable operation of electronic banking.

Article 32

A financial institution’s risk management system and internal control system for electronic banking shall include clear management
framework, sound rules and strict internal authorization control mechanism, and shall be able to effectively identify, evaluate,
monitor and control the strategic risks, operational risks, legal risks, prestigious risks, credit risks, and market risks, etc.
that the electronic banking business faces.

Article 33

The prudential risk management principles and measures, etc. made by a financial institution regarding traditional business risks
shall be also applicable to electronic banking business, nevertheless, the financial institution shall make necessary and proper
amendments of the original risk management rules and procedures according to the changes of the environment and the operational
method of the electronic banking business.

Article 34

A financial institution’s board of directors and senior management team shall, according to its overall development strategy and actual
management situation, make the development strategy and feasible management and investment strategy for electronic banking, make
continuous comprehensive benefit analysis on the management of electronic banking, and scientifically evaluate the influences of
electronic banking business to its overall risks.

Article 35

A financial institution shall, when formulating a development strategy of electronic banking, strengthen the protection of intellectual
property rights on electronic banking business.

Article 36

A financial institution shall conduct the evaluation and classification to the importance of the different systems, risk facilities,
information and other resources of electronic banking and their influences to the safety of electronic banking business, formulate
a proper safety strategy, establish and improve the risk control procedures and safe operation rules, and take corresponding safe
management measures.

A financial institution shall check and test various safety control measures at regular intervals, adjust them at proper times when
required by the actual situation, and guarantee the sustainable, effective and timely updating of the safety measures.

Article 37

A financial institution shall guarantee the safety of the operational facilities , equipment, and the safety control facilities and
equipment for electronic banking. With respect to the important facilities, equipment and data of electronic banking, it shall take
proper protective measures.

(1)

The physical safety control of a tangible site must meet the requirements in the relevant laws, regulations and safety standards of
the state, and for the safety control of a tangible site without uniform safety standards, the financial institution shall guarantee
that the safety rules it has formulated could effectively cover the possible main risks it shall face;

(2)

An electronic banking system with an open network as the medium shall reasonably establish and use firewall, anti-virus software and
other safe products and technologies to guarantee the electronic banking to have enough anti-attack capacity, anti-virus capacity,
and intrusion prevention capacity;

(3)

For the access to, check of, maintenance of, and emergency response to important facilities and equipment, the financial institution
shall have a clear delimitation of powers, division of duties and operation flow, establish log file management rules, and truthfully
record and keep appropriate custody of relevant records;

(4)

The financial institution shall strictly control the power to access important technical parameters, establish a corresponding technical
parameter adjustment and modification mechanism, and guarantee that the mechanism can effectively prevent divulgence of relevant
technical parameters after the key staff members are replaced;

(5)

With respect to the key positions and staff members to manage the electronic banking, the financial institution shall adopt the post-shifting
and compulsory holiday rules, as well as establish strict internal supervision and management rules.

Article 38

A financial institution shall adopt proper encryption technologies and measures to guarantee the safety and confidentiality of transmission
of electronic transaction data, as well as the entirety, authenticity and undeniability of the transmitted transaction data.

The data encryption technology adopted by a financial institution shall conform to the relevant provisions of the state. The financial
institution shall, when required by the safety of electronic banking and on the basis of the development of scientific information
technology, check and evaluate the intensity of the adopted encryption technology and algorithm at regular intervals, and adjust
the encryption method at proper times, as well.

Article 39

A financial institution shall conclude an electronic banking service agreement or contract with customer, specifying the rights and
obligations of both parties.

In the electronic banking service agreement, a financial institution shall fully disclose to customer the risks it might face when
using electronic banking to make transactions, the risk control measures the financial institution has taken, the risk control measures
that the customer ought to take, and the assumption of liabilities for relevant risks.

Article 40

A financial institution shall adopt proper measures and technologies to identify and verify the authentic and effective identities
of the customers of electronic banking services, and shall, pursuant to the relevant agreement concluded with each certain customer,
effectively manage the customer’s working powers, fund transfer or transaction amount limit, etc.

Article 41

A financial institution shall establish a corresponding mechanism, search, monitor and settle the activities of defrauding customer’s
information by imitating or intentionally establishing telephone, web site, short message number, etc. similar to those of the financial
institution.

A financial institution shall, after finding any illegal activity of imitating electronic banking, report the offence to the public
security department, and report to CBRC. Meanwhile, the financial institution shall timely remind its customers through its web site,
telephone voice prompt system or short message platform.

Article 42

A financial institution shall use uniform telephone numbers, domain names and short message numbers, etc. of electronic banking services
as much as possible, and shall specify the lawful avenues for the customer to start up electronic banking, the way of responding
to unexpected incidents, and the method of contact, etc. in the agreement with the customer

When a financial institution in the banking sector that has realized centralized data processing carries out online bank business,
its head office (company) and the branches shall use a uniform domain name; when a financial institution in the banking sector that
has not realized centralized data processing carries out online bank business, its head office (company) shall establish a uniform
access website, and establish links to its branches’ web sites on its homepage.

Article 43

A financial institution shall establish an intrusion detection system and an intrusion protection system for electronic banking, monitor
and control the operation of electronic banking in real time, scan loopholes of the electronic banking system at regular intervals,
and establish a mechanism of distinguishing, handling and reporting illegal intrusions.

Article 44

A financial institution shall, when using the electronic signature or electronic certification, on customer information or transaction
information for its electronic banking, comply with the relevant laws and regulations of the state.

A financial institution shall, when using a third party certification system, evaluate the third party certification institution at
regular intervals, guarantee the safety, reliability and public credibility of the relevant certification.

Article 45

A financial institution shall, at regular intervals, evaluate the sufficiency of electronic banking resources that customers may use,
and take necessary measures to guarantee smooth connection of circuits, and the usability of the electronic banking services to customers.

Article 46

A financial institution shall make a plan on continuity of electronic banking, and guarantee the continuous normal operation of electronic
banking business.

The financial institution shall, when making the continuity plan of electronic banking business, fully consider the influences of
the third party service provider to the continuity of the business, and shall take proper precautionary measures.

NOTICE OF THE MINISTRY OF COMMERCE ON ISSUES CONCERNING ENTRUSTING STATE-LEVEL ECONOMIC AND TECHNOLOGICAL DEVELOPMENT TO EXAMINE AND APPROVE FOREIGN INVESTMENT COMMERCIAL ENTERPRISES AND AGENT ENTERPRISES OF INTERNATIONAL FREIGHT FORWARDING

The Ministry of Commerce

Notice of the Ministry of Commerce on Issues concerning Entrusting State-level Economic and Technological Development to Examine and
Approve Foreign Investment Commercial Enterprises and Agent Enterprises of International Freight Forwarding

Shang Zi Han [2005] No.102

February 9, 2006

To the departments responsible for commerce of all provinces, autonomous region, municipalities under the central government, cities
directly under State planning and Xinjiang Production and Construction Corps, all state-level economic and technological development
zones, Xiamen Haicang Taiwanese Investment. Zone, Shanghai Jinqiao Export Processing Zone, Hainan Yangpu Economic Development Zone,
Ningbo Daxie Development Zone, Suzhou Industrial Park:

In order to implement Notice of the General Office of the State Council on Forwarding the Opinions on Promoting the Further Development
of State-level Economic and Development Zones (Guo Ban Fa [2005] No.15), to further promote the effective absorption of foreign capital
by state-level economic and technological development zone, to further streamline the approval procedure and improve its efficiency
in line with the requirement of the State Council on streamlining executive approval, in accordance with the relevant spirit of Circular
of the Ministry of Commerce of the People’s Republic of China, on Issues of Relegating the Department Concerned Examining and Approving
of Foreign-funded Commercial Enterprises to Local Government(Shang Zi Han[2005]No.94) and Decree No. 19, 2005 of the Ministry of
Commerce of the People’s Republic of China, Promulgating the Revised Measures for Administration of Foreign-funded International
Forwarding Agent, the notice concerning Entrusting State-level Economic and Technological Development to Examine and Approve Foreign
Investment Commercial Enterprises and Agent Enterprises of International Freight Forwarding is, after research and decision, hereby
given as follows:

First, the management committee state-level economic and technological development zone shall, in accordance with the requirement
in Circular of the Ministry of Commerce of the People’s Republic of China, on Issues of Relegating the Department Concerned Examining
and Approving of Foreign-funded Commercial Enterprises to Local Government as well as relevant laws, regulations, and rules concerning
foreign investment, be entrusted to examine and approve the establishment and alteration of foreign enterprises, issue approval certificates
and submit them the Ministry of Commerce for record and submit the copies hereof to provincial commercial departments for record.
The management committee of state-level economic and technological development zone shall, as for the commercial enterprise website
beyond its examination and approval, solicit the relevant commercial departments where the website locates for their opinion upon
the examination and approval of the website programming.

Second, the international agent enterprises of international express delivery operated by foreign investors shall be subject to the
examination, approval and administration of the Ministry of Commerce. The establishment, alteration, issuing of approval certificate
of otherwise international freight agent enterprises operated by foreign investors shall be entrusted to the management committee
of state-level economic and technological development zone to be responsible for its examination, approval and submit to the Ministry
of Commerce for record in accordance with the relevant requirement of Decree No. 19, 2005 of the Ministry of Commerce of the People’s
Republic of China, Promulgating the Revised Measures for Administration of Foreign-funded International Forwarding Agent, as well
as laws, regulations and rules concerning foreign investment.

Third, the other businesses of aforesaid industries shall, except those subject to entrustment of the Ministry of Commerce for examination
and approval, be conducted in accordance with Measures for the Administration on Foreign Investment in Commercial Fields, and Measures
for the Administration of Foreign-funded International Freight Forwarding Enterprises.

Fourth, the management committee of state-level economic and technological development zone shall, entrusted by the Ministry of Commerce
to be engaged in foreign investment commerce, international freight forwarding agent enterprises, meet the following conditions:

(1)

It shall implement streamlined and efficient administrative system in accordance with Notice of the General Office of the State Council
on Forwarding the Opinions on Promoting the Further Development of State-level Economic and Development Zones (Guo Ban Fa [2005]
No.15).

(2)

It shall link its website with that of the Ministry of Commerce to issue approval certificate for foreign-funded enterprises via foreign
investment statistics system and inform promptly the Ministry of Commerce its implementation of examination and approval of foreign
investment commerce, international freight forwarding agent enterprise via Internet.

Fifth, after state-level economic and technological development zone has completed management system record, personnel training and
approved its qualification after acceptance via internet, the Ministry of Commerce shall separately undertake the corresponding entrustment
procedures in batches

The Ministry of Commerce
2006-02-09

ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES NO.1 – INVENTORIES

Ministry of Finance

Accounting Standards for Business Enterprises No.1 – Inventories

Cai Kuai [2006] No.3

February 15, 2006

Chapter I General Provisions

Article 1

These Standards are formulated in accordance with the Accounting Standards for Enterprises – Basic Standards for the purpose of regulating
the recognition of the inventories, measurement and disclosure of related information. .

Article 2

Other relevant accounting standards shall apply to such items as follows:

(1)

The Accounting Standard for Business Enterprises No. 5 – Biological Assets shall apply to the consumptive biological assets.

(2)

The Accounting Standard for Business Enterprises No. 15 – Construction Contracts shall apply to the costs of the inventories together
through construction contracts.

Chapter II Recognition

Article 3

The term “inventories” refers to finished products or merchandise possessed by an enterprise for sale in the daily of business, or
work in progress in the process of production, or materials and supplies to be consumed in the process of production or offering
labor service.

Article 4

The inventories shall not be recognized unless they satisfy such conditions simultaneously as follows:

(1)

The economic benefits pertinent to the inventories are likely to flow into the enterprise; and

(2)

The cost of the inventories can be measured reliably.

Chapter III Measurement

Article 5

The inventories shall be initially measured in light of their cost. The cost of inventory consists of purchase costs, processing costs
and other costs.

Article 6

The purchase costs of inventories consists of the purchase price, relevant taxes, transport fees, loading and unloading fees, insurance
premiums and other expenses that may be relegated to the purchase costs of inventories.

Article 7

The processing costs of inventories consist of the direct labor and production overheads allocated according to a particular method.

The “production overheads” refers to all indirect expenses happened in the process of manufacturing products and providing labor services
by an enterprise. An enterprise shall, according to the nature of the production overheads, choose the reasonable method for the
allocation of production overheads.

If two or more kinds of products are manufactured in the same production process, and the processing cost for each product is unable
to be separated from that of others directly, the processing costs shall be allocated among the products in a reasonable way.

Article 8

“Other costs of inventories” refers to those costs, other than purchase costs and processing costs, happened in bringing the inventories
to their present location and condition.

Article 9

The following expenses shall be recognized as current profits and losses as they are happened, which shall not be included in the
cost of inventories:

(1)

The direct materials, direct labor and production overheads that are abnormally consumed;

(2)

The storage expenses (excluding the expenses which are necessary in the production process for reach the next production stage); and

(3)

Other expenses that cannot be included in the costs happened in bringing the inventories to their present location and condition.

Article 10

The borrowing costs, which shall be included in the cost of inventories, shall be disposed in accordance with the Accounting Standard
for Enterprises No. 17 – Borrowing costs.

Article 11

The cost of inventories invested by an investor shall be ascertained in accordance with the value as stipulated in the investment
contract or agreement, unless it is not stipulated fair in the contract or agreement.

Article 12

The cost of agricultural products in the harvest, and the cost of inventories obtained by the exchange of non-monetary assets, recombination
of liabilities and merger of enterprises shall be ascertained in accordance with the Accounting Standard for Business Enterprises
No. 5 – Biological Assets, Accounting Standard for Business Enterprises No. 7 – Exchange of Non-monetary Assets, Accounting Standard
for Business Enterprises No. 12 – Debt Restructurings and Accounting Standard for Business Enterprises No. 20 -Business Combinations,
respectively.

Article 13

Where an enterprise provides labor service, the direct labor expenses, other direct expenses as well as the indirect expenses included
thereto shall be included in the cost of inventories.

Article 14

An enterprise shall confirm the actual cost of sending out inventories by employing the first-in-first-out method, the weighted average
method or the specific identification method.

The cost of sending out inventories of items with similar nature and purpose shall be confirmed by employing the same cost calculation
method.

Generally, the cost of non-substitutable inventories, and goods purchased and produced as well as the labor services offered for specific
projects, the cost of sending out shall be confirmed by employing the specific identification method.

As to the inventories, which have been already sold, their costs shall be carried forward as the current profits and losses and the
relevant provision for the loss on decline in value of inventories shall also be carried forward.

Article 15

On the date of balance sheet, the inventories shall be measured whichever is lower in accordance with the cost and the net realizable
value.

If the cost of inventories is higher than the net realizable value, the provision for the loss on decline in value of inventories
shall be made and be included in the current profits and losses.

The net realizable value refers to in the daily business activity the amount after deducting the estimated cost of completion, estimated
sale expense and relevant taxes from the estimated sale price of inventories.

Article 16

An enterprise shall confirm the net realizable value of inventories on the ground of reliable evidence obtained, taking into consideration
of the purpose for holding inventories and the effects of events occurring after the date of the balance sheet.

The materials held for production shall be measured at cost if the net realizable value of the finished products is higher than the
cost. If a decline of the value of materials shows that the net realizable value of the finished products is lower than the cost,
the materials shall be measured at the net realizable value.

Article 17

The net realizable value of inventories held for the execution of sales contracts or labor contracts shall be calculated on the ground
of the contract price.

If an enterprise holds more inventories than the quantities subscribed in the sales contract, the net realizable value of the excessive
part of the inventories shall be calculated on the ground of the general sales price.

Article 18

Ordinarily an enterprise shall make provision for loss on decline in value of inventories on the ground of each item of inventories.

For inventories with large quantity and relatively low unit prices, the provision for loss on decline in value of inventories shall
be made on the ground of the categories of inventories.

For the inventories related to the series of products manufactured and sold in the same area, and of which the final use or purpose
is identical or similar thereto, and if it is difficult to measure them by separating them from other items, the provision for loss
on decline in value of inventories shall be made on a combination basis.

Article 19

An enterprise shall confirm the net realizable value of inventories on the balance sheet date. If the factors causing any write-down
of the inventories have disappeared, the amount of write-down shall be resumed and be reversed from the provision for the loss on
decline in value of inventories that has been made. The reversed amount shall be included in the current profits and losses.

Article 20

An enterprise shall amortize the easily consumed products of low value and packing articles and supplies by employing the one-off
write-off method or equal-split amortization method and bring it in the cost of the relevant assets or in the current profits and
losses.

Article 21

For any damage to the inventories of an enterprise, the enterprise shall include the amount after deducting the book value and relevant
taxes from the disposal income in the current profits and losses. The book value of inventories shall refer to the amount after deducting
the accumulative provision for loss on decline in value of inventories from the cost of inventories.

The loss of inventories shall be included in the current profits and losses.

Chapter IV Disclosure

Article 22

An enterprise shall, in the notes, disclose the information concerning to inventories as follows:

(1)

The book value of all inventories at the beginning and end of the period;

(2)

The methods to confirm the cost of sending out inventories;

(3)

The basis for confirming the net realizable value of inventories, the methods to make provision for the loss on decline in value of
inventories, the amount of the provision for loss on decline in value of inventories to be reversed in the current period, as well
as the relevant information about the making and reversion of the provision for loss on decline in value of inventories.

(4)

The book value of inventories used for a guaranty.

Ministry of Finance
2006-02-15

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 25 – ORIGINAL INSURANCE CONTRACTS

the Ministry of Finance

Accounting Standards for Enterprises No. 25 – Original Insurance Contracts

No. [2006] of the Ministry of Finance

February 15, 2006

Chapter I General Provisions

Article 1

With a view to regulating the recognition, measurement of the original insurance contracts concluded by insurants and the presentation
of relevant information, the present Standards are formulated according to the Accounting Standards for Enterprises – Basic Standards.

Article 2

The term “insurance contract” refers to an agreement under which the insurer and the insured stipulate the insurance rights and obligations
and the insurer undertakes the insurance risks sourced from the insured. Insurance contracts are classified into original insurance
contracts and re-insurance contracts.

The term “original insurance contract” refers to an insurance contract under which the insurer charges the insurance premium and undertakes
the liability to pay the insurance money for the property losses resulted from the prescribed possible accident(s), or undertakes
the liability to pay the insurance money when the insured dies, or is injured, disabled or sick, or attains to the stipulated age
or time period.

Article 3

The following items shall be subject to other relevant accounting standards:

(1)

The impairment of assets such as the post-loss goods produced by an original insurance contract issued by an insurer shall be subject
to the Accounting Standards for Enterprises No. 1- Inventories.

(2)

A contract issued by an insurer to the insured on a risk other than the insurance risks shall be subject to the Accounting Standards
for Enterprises No. 22 – Recognition and Measurement of Financial Instruments and the Accounting Standards for Enterprises No. 37
– Presentation of Financial Instruments.

(3)

A reinsurance contract issued or held by an insurer shall be subject to the Accounting Standard for Enterprises – Reinsurance Contracts.

Chapter II Determination of Original Insurance Contracts

Article 4

No matter whether a contract concluded by an insurer and an insured is an original insurance contract or not, that whether or not
the insurer has undertaken the insurance risks shall, on the basis of a single-item contract, be judged according to the contract
terms.

Where the occurrence of an insurance accident is likely to cause the insurer to undertake the liability to pay the insurance money,
it shall be determined that the insurer has undertaken the insurance risks.

The term “insurance accident” refers to accidents which are prescribed in an insurance contract and fall within the scope of insurance
liabilities.

Article 5

Where a contract concluded by an insurer and an insured puts the insurer in a position of not only undertaking the insurance risks
but also other risks, it shall be respectively treated according to the following circumstances:

(1)

Where the insurance risks can be distinguished from other risks and can be measured separately, the insurance risks may be separated
from other risks. The part of insurance risks shall be determined as an original insurance contract. And the part of other risks
may not be determined as an original insurance contract.

(2)

Where the insurance risks cannot be distinguished from other risks, or where the insurance risks can be distinguished from other risks
but can not be measured separately, the entire contract shall be determined as an original insurance contract.

Article 6

The insurer shall, in light of whether or not it undertakes the liability to pay the insurance money during the extension period of
the original insurance contracts, classify the original insurance contracts into original life insurance contracts and original non-life
insurance contracts.

Where the insurer undertakes the liability to pay the insurance money during the extension period of an original insurance contract,
it shall determine it as an original life insurance contract. Where it does not undertake the liability to pay insurance money during
the extension period of an original insurance contract, it shall determine it as an original non-life insurance contract.

The “extension period of an original insurance contract” refers to the period during which the insured does not pay premium from the
maturity date of the previous period, but the insurer still undertake the liability to pay the insurance money.

Chapter III The Income from Original Insurance Contracts

Article 7

The premium income, which can meet the following requirements simultaneously, may be recognized:

(1)

An original insurance contract has been established and corresponding insurance liabilities have been undertaken;

(2)

The economic benefits related to the original insurance contract are highly probable to flow in;

(3)

The income related to the original insurance contract can be measured reliably.

Article 8

An insurer shall, according to the following provisions, calculate and determine the amount of insurance income:

(1)

As for an original non-life insurance contract, the amount of insurance income shall be determined according to the total premium
as stipulated in the original insurance contract.

(2)

As for an original life insurance contract, if the insurance premium as charged by installments, the amount of insurance income shall
be the premium charged in the current period. If the premium is charged in a lump sum, the insurance income shall be determined according
to the premium which shall be charged in a lump sum.

Article 9

Where an original insurance is cancelled prior to the expiration date, the insurer shall, according to the stipulations of the original
insurance contract, calculate and determine the refund to the insured as the refund premium, and record it in the profits and losses
of the current period.

Chapter IV Reserves for Original Insurance Contracts

Article 10

The reserves for original insurance contracts shall include unearned premium reserves, reserves for outstanding claims, reserves for
life insurance liabilities and reserves for long-term health insurance liabilities.

The term “unearned premium reserves” refers to the reserves drawn by an insurer for unexpired non-life insurance liabilities.

The term “reserve for outstanding claims” refers the reserves drawn by an insurer for the non-life insurance accidents which have
already occurred but have not been settled.

The term “reserves for life insurance liabilities” refers to the reserves drawn by an insurer for unexpired life insurance liabilities.

The term “reserves for long-term health insurance liabilities” refers to the reserves calculated and drawn by an insurer for unexpired
long-term health insurance liabilities.

Article 11

An insurer shall, in the current period of recognition of the income from non-life insurances, calculate and draw unearned premium
reserve as an adjustment to the premium income of the current period in light of the actuarial amount, and recognize the unearned
premium reserves as a liability.

An insurer shall, on the balance sheet date, recalculate the balance between the recognized amount of the unearned premium reserves
and the drawn amount of the unearned premium reserves in light of the actuarial amount, and shall make an adjustment to the unearned
premium reserves.

Article 12

An insurer shall, in the current period when the non-life insurance accident happens, draw the reserve for outstanding claims in light
of the actuarial amount, and shall recognize the reserve for outstanding claims as a liability.

The reserve for outstanding claims includes the reserve for outstanding claims that are incurred and reported, the reserve for outstanding
claims that are incurred but not reported as well as the reserve for the expenses of settlement of claims.

The “reserve for outstanding claims that are incurred and reported” refers to the reserve made by an insurer for the compensation
cases, in which non-life insurance accidents have occurred and claims are made to the insurer, but are not settled yet.

The “reserve for outstanding claims that are incurred but not reported” refers to the reserve made by an insurer for the compensation
cases, in which non-life insurance accidents have occurred but no claim is made to the insurer yet.

The “reserve for the expenses of settlement of claims” refers to the reserve made by an insurer for the attorney fees, litigation
fees, loss inspection fees, wages and salaries of the personnel for the settlement of claims and other expenses which are likely
to incur in compensation cases, in which non-life insurance accidents have occurred but which have not been settled yet.

Article 13

An insurer shall, in the current period of recognition of life insurance premiums, draw reserves for life insurance liabilities and
long-term health insurance liabilities in light of the actuarial amounts, and shall recognize the reserves for life insurance liabilities
and those for long-term health insurance liabilities as liabilities.

Article 14

An insurer shall, at least by the end of each year, test the abundance of the reserves for outstanding claims, life insurance liabilities,
and long-term health insurance liabilities.

Where the amount of relevant reserves which are recalculated and determined by the insurer in light of the actuarial amount exceeds
the drawn amount of the relevant reserves on the abundance test date, the relevant reserves shall be replenished on the basis of
the difference. If the amount of relevant reserves which are recalculated and determined by the insurer in light of the actuarial
amount is less than the residual amount of the relevant reserves on the abundance test date, no adjustment shall be made to the relevant
reserves.

Article 15

Where an original insurance contract is cancelled prior to its expiration date, the insurer shall write off the residue amounts of
the relevant reserves for unearned premiums, life insurance liabilities and long-term health insurance liabilities, and recorded
them into the profits and losses of the current period.

Chapter V Cost of Original Insurance Contracts

Article 16

The cost of an original insurance contract refers to the total outflow of economic benefits, which is incurred by the original insurance
contract, will result in the decrease of the owners equities and is irrelevant to the distribution of profits to the owners.

The cost of an original insurance contract mainly includes the handling charges or commission, compensation cost, as well as the reserves
for outstanding claims, life insurance liabilities and long-term health insurance liabilities.

The compensation cost includes the indemnity or payment made by the insurer, and the expenses for the attorney fees, litigation fees,
loss inspection fees, wages and salaries of the personnel for the settlement of claims which are incurred during the settlement of
the claims.

Article 17

The handling fees and commissions, which are incurred to the insurer during the course of obtaining the original insurance contracts,
shall be recorded into the profits and losses of the current period.

Article 18

The reserves for outstanding claims, life insurance liabilities, and long-term health insurance liabilities, which are drawn by an
insurer in light of the actuarial amounts shall be recorded into the profits and losses of the current period.

An insurer shall, in the current period of determination of the amount of compensation, record into the profits and losses of the
current period the amount of compensation determined to make. Meanwhile, it shall offset the residual amount of the corresponding
reserves for outstanding claims, reserves for life insurance liabilities or for long-term health insurance liabilities.

Article 19

The reserves for outstanding claims, life insurance liabilities or long-term health insurance liabilities, which are replenished by
an insurer according to the abundance test, shall be recorded into the profits and losses of the current period.

Article 20

Any post-loss goods obtained by an insurer due to undertaking the liability to pay the insurance money shall be recognized as an asset
calculated at the market price of the same class of or similar asset, and shall be used to offset the compensation cost of the current
period.

When disposing of any post-loss goods, the insurer shall adjust the compensation cost of the current period according to the balance
between the amount received and the carrying amount of the post-loss goods.

Article 21

Where the subrogation recourse fee to be charged by an insurer for undertaking the liability to pay the insurance money meets the
following requirements simultaneously, it shall be recognized as the receivable subrogation recourse fee and shall be used to offset
the compensation cost of the current period:

(1)

The economic benefits related to this subrogation recourse fee is likely to flow in; and

(2)

The amount of the subrogation recourse fee can be measured reliably.

When an insurer receives the receivable subrogation recourse fee, it shall, pursuant to the balance between the received amount and
the carrying amount of the relevant receivable subrogation recourse fee, adjust the compensation cot of the current period.

Chapter VI Presentation

Article 22

An insurer shall, in the balance sheet, separately present the following items related to the original insurance contract:

(1)

the unearned premium reserve;

(2)

the reserve for outstanding claims;

(3)

the reserve for life insurance liabilities; and

(4)

the reserve for long-term health insurance liabilities.

Article 23

An insurer shall, in the profit statement, present separately the following items related to the original insurance contract:

(1)

the income from premiums;

(2)

the refunded premiums;

(3)

the drawing of unearned premium reserve;

(4)

the premiums earned;

(5)

the disbursement of handling fee;

(6)

the compensation cost;

(7)

the reserve for outstanding claims;

(8)

the reserve for life insurance liabilities; and

(9)

the reserve for long-term health insurance liabilities.

Article 24

An insurer shall, in its annotations, disclose the following information related to the original insurance contract:

(1)

the relevant information on the subrogation recourse fee;

(2)

the relevant information on the post-loss goods;

(3)

the increase and decrease of each reserve; and

(4)

the main actuarial assumptions and methods for drawing these reserves and testing the abundance of the reserves.

the Ministry of Finance
2006-02-15

ANNOUNCEMENT NO.9, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

General Administration of Customs

Announcement No.9, 2006 of the General Administration of Customs of the People’s Republic of China

[2006] No.9

In accordance with Tariff Committee of State Council’s decision on cease anti-dumping duties to the imported unbleached Kraft liner/linerboard
originated from the U.S, Thailand, the Republic of Korea and Taiwan region, Ministry of Commerce released Announcement No.8, 2006
(hereinafter referred to as Ministry of Commerce Announcement No.8, 2006, please refer to Appendix for details). Related matters
are now announced as follows:

In accordance with Ministry of Commerce Announcement No.8, 2006, Customs ceased General Administration of Customs Announcement No.50,
2005 and anti-dumping duties on unbleached Kraft liner/linerboard originated from the U.S, Thailand, the Republic of Korea and Taiwan
region. The imposed anti-dumping duties on unbleached Kraft liner/linerboard originated from the said counties and regions before
release of this announcement will be returned. Related units may apply for refund of the said anti-dumping duties to Customs within
6 months as from release of this announcement, and go through related formalities.

Appendix: Ministry of Commerce Announcement No.8, 2006 (please refer to China Foreign Trade and Economic Cooperation Gazette [Issue
No.14 2006]) (Omitted)

General Administration of Customs

Feb 16, 2006

General Administration of Customs
2006-02-16

NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON THE EFFECTIVENESS AND IMPLEMENTATION OF THE AGREEMENT ON AVOIDING DOUBLE TAXATION BETWEEN CHINA AND AZERBAIJAN

the State Administration of Taxation

Notice of the State Administration of Taxation on the Effectiveness and Implementation of the Agreement on Avoiding Double Taxation
between China and Azerbaijan

Guo Shui Fa [2006] No. 27

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government and cities under separate state planning, Yangzhou Institute of Taxation, and all entities within the taxation departments:

As to the agreement concluded between China and Azerbaijan on avoiding double taxation and preventing tax evasion on March 17, 2005
in Beijing, the foreign affairs departments of China and Azerbaijian have exchanged notes respectively on July 25, 2005 and August
17, 2005, to confirm that relevant statutory legal procedures have been concluded for its effectiveness. In accordance with the provisions
of Article 27 of the Agreement, it shall go into effect as of August 17, 2005 and shall be implemented as of January 1, 2006. The
State Administration of Taxation has printed and issued to you the text of the aforesaid Agreement by No. 282 [2005] on April 4,
2005. Please carry it out accordingly.

the State Administration of Taxation

February 21, 2006

the State Administration of Taxation
2006-02-21

NOTICE OF CHINA BANKING REGULATORY COMMISSION ON FURTHER STRENGTHENING FOREIGN EXCHANGE RISKS MANAGEMENT

China Banking Regulatory Commission

Notice of China Banking Regulatory Commission on Further Strengthening Foreign Exchange Risks Management

To all the banking regulatory bureaus, policy banks, state-owned commercial banks and joint-stock commercial banks,

Recently, some relevant departments have promulgated a series of reform measures regarding Renminbi exchange rate formation mechanism
and the inter-bank foreign exchange market of our country. In particular, the over-the-counter transactions and the system of market
makers were introduced into the inter-bank spot foreign exchange market on January 4, 2006, which pose new requirements and challenges
for the business operations and risk management of the banking industry. For the purpose of effectively controlling foreign exchange
risks of the banking industry and ensuring the safe and stable operation of the banking industry, a notice on the relevant matters
is made hereby as follows:

Attach much importance to and comprehensively evaluate the possible effects of the reform of Renminbi exchange rate formation mechanism
and the development of inter-bank foreign exchange market on foreign exchange businesses and foreign exchange risks of your own bank.
The board of directors and senior managerial staff of each bank (including urban and rural credit cooperatives, the same hereinafter)
shall initiatively study and actively formulate various counter-measures in order to ensure that the development strategies of foreign
exchange businesses conform to its risk management level and level of capital adequacy. All the banks shall further improve the
foreign exchange risk management system, initiatively establish foreign exchange risk management departments or functions independent
of operational foreign exchange business departments and implement the risk management in the whole process of foreign exchange businesses
in light of the new Renminbi exchange rate formation mechanism and trading mode.

II.

Accurately calculate foreign exchange risk open positions, including the single currency open positions and overall open positions
in the bank accounts and trading accounts, and effectively control the overall foreign exchange risks of banks. At the same time,
special attention shall be paid to monitoring and management of foreign exchange risks of the clients that get loans from banks.
The effects of the alteration of the level of foreign exchange risks of such clients to their ability of debt payment shall be timely
evaluated.

III.

Strengthen the quota management of foreign exchange transactions, including the position limits and stop-loss limits of transactions,
etc. All the banks shall formulate monitoring and handling procedures and establish pre-warning mechanism for predicting quota excess,
and timely handle the unapproved transactions which exceed limits according to the policies and procedures for the quota management.
A market-maker bank shall strictly control comprehensive positions of market makers.

IV.

Enhance the price management level and quotation capacity for foreign exchange transactions. All the relevant banking institutions
shall realize an effective link-up of foreign exchange prices between the banks and foreign exchange trading markets, between the
banks and the clients and between head offices and branches, and realize a uniform quotation and dynamic management within their
respective whole bank. All the banks shall give reasonable quotation of foreign exchange transactions based on costs, proceeds and
risks analysis in order to avoid malicious price-related competition in the intra-trade competition or the sales promotion to clients.

Continuously strengthen the system construction. A market-maker bank shall strengthen the construction of trading system, information
system and risk management system, and timely collect and incorporate the foreign exchange transactions of branches into the management
of the head office, and try to collectively balance transactions at the head office in light of the actual situation, and continuously
enhance the computerization level of foreign exchange transactions and foreign exchange risk management.

VI.

Formulate and improve the credit risk management mechanism of trading opponents. With the manner of over-the-counter transactions,
all the banks shall effectively manage the credit risks of trading opponents by strengthening the credit-granting management of trading
opponents, etc., and re-evaluate the credit risks of trading opponents on terms. All the banks shall incorporate the credit risks
of clients involved in foreign exchange transactions into the management system of uniform credit-granting of enterprise legal persons.

VII.

Effectively prevent operational risks in foreign exchange transactions. All the banks shall strictly distinguish and control the operational
risks in foreign exchange transactions by following such procedures as the preparations before transactions, realization and confirmation
of transactions, capital settlement, verification of current accounts and accounting and financial control. The responsibilities
for front, middle and back offices in foreign exchange transactions shall be strictly separated. The staff for transactions shall
carry out transactions in strict accordance with the business operational authorization; the staff in back offices shall carefully
and timely confirm transactions, carry out capital settlement and verification of current accounts, which exhibit their independent
and effective risk monitoring role; and independent middle offices may be set up for monitoring the risks relating to foreign exchange
transactions when necessary. All the banks shall practically strengthen the implementation of various rules and systems and effectively
control the regulation compliance risks.

VIII.

Strengthen the internal audit of foreign exchange risks. The auditing departments shall have professionals that are familiar with
foreign exchange transactions and capable of auditing foreign exchange risks; the auditing departments shall strengthen the examination
of internal audit of foreign exchange risks, timely evaluate the shortcomings of their respective banks with respect to foreign exchange
risks control and ensure the effective implementation of various risk management policies and procedures.

IX.

Strictly control the risks of foreign exchange derivatives. The banks engaging in the derivative-related transactions from the conversion
of Renminbi into foreign currencies shall establish an effective risk management system in line with their transactions of derivatives
in strict accordance with the requirements as prescribed in the Interim Measures for the Management of the Transactions of Derivatives
of Financial Institutions; and they shall actively support and cooperate the exploration and development of new derivatives with
respect to system development and accounting assessment.

Provide qualified staff for foreign exchange transactions and foreign exchange risk management. All the banks shall fully adopt market
means when hiring and selecting the staff for foreign exchange transactions and risk management, establish effective and proper incentive
mechanism and performances assessment system and retain and absorb talents with proper treatments.

All the banks shall seriously implement such supervisory regulations as the Guidelines for the Market Risk Management of Commercial
Banks, the Interim Measures for the Management of the Transactions of Derivatives of Financial Institutions, establish and improve
the risk management system, actively enhance the market risk management level including foreign exchange risks management, and prevent
the occurrence of significant losses of foreign exchange transactions. As to the further innovations in the inter-bank foreign exchange
market, all the banks shall actively communicate and coordinate with relevant departments, formulate the pre-schemes as well as possible,
and be well prepared in all aspects in advance, and shall timely report to the supervisory department in case of any significant
matter.

All the banking regulatory bureaus are required to forward this Notice to all the city commercial banks, urban credit cooperatives,
rural commercial banks, rural cooperative banks, rural credit cooperatives and foreign-funded banks within their respective jurisdiction.

China Banking Regulatory Commission

February 28, 2006

China Banking Regulatory Commission
2006-02-28

NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON REBATE OF NEWLY-BUILT ENTERPRISE BUSINESS INCOME TAX IN CARGO TRANSPORT INDUSTRY

The State Administration of Taxation

Notice of the State Administration of Taxation on Rebate of Newly-built Enterprise Business Income Tax in Cargo Transport Industry

Guo Shui Han [2006] No. 249

To states tax bureaus, local tax bureaus of all provinces, autonomous region, municipalities directly under the Central Government,
cities specifically designated in the state plan:

After the distribution of Notice of the State Administration of Taxation on Strengthening Tax Imposition in Cargo Transport Industry
(Guo Shui Fa [2003] No.121) and Notice of the State Administration of Taxation about Several Tax Issues Concerning Cargo Transport
Industry (Guo Shui Fa [2004] No. 88) , all levels of local tax authorities reflected that the state tax bureau shall be responsible
for the administration of imposition of newly-built enterprise business corporate tax in cargo transport industry whereas local tax
bureaus be responsible for issuing cargo transport invoice and that the provisions on rebate of business income tax in accordance
with laws, regulation and rules were not clear whether the state tax bureau or local tax bureau should be responsible for its handling.
After research, the notice is hereby given as follows:

where the due rebate of business income tax of the taxpayer in carrying industry, which is charged by state tax bureaus for its imposition
and administration and charged by local tax bureaus for issuing cargo transport invoice and universal invoice tax imposition, needs
to be handled by the state tax bureaus in responsible in accordance with related laws, regulations and rules, the due rebate hereof
may either setoff the next-year business income tax payable of the taxpayer or be handled after clearing settlement, provided that
the rebate amount shall be not more than the amount of business income tax imposed by the state tax bureau in responsible of the
tax year, or the exceeded part shall be rebated by the local tax bureau responsible for issuing cargo transport invoice.

II.

the rebate particulars of the aforesaid taxpayer shall be settled promptly on occasion of settlement clearance.

III.

in accordance with the relevant provisions in Notice of the State Administration of Taxation on Printing and Distributing Interim
Measures on Checking and Verifying the Imposition of Business Income Tax (Guo Shui Fa [2000] No. 38), the tax authorities in responsible
shall not reimburse the tax paid by the taxpayer who is subject to the imposition of business income tax and subsequently pays the
tax for the issued cargo transport invoice.

IV.

the local tax authority in responsible shall, when turning over the imposed tax to the state taxes, shall apply the uniformed invoice
of local tax system with the local tax bureau responsible for the checking, verifying and summarizing submitting to the upper tax
authority of the account.

all levels of state tax authorities and local tax authorities shall implement and strengthen the information switching system. The
local tax authority in responsible shall convey to the state tax bureau the statistics about the business income tax turned over
to state treasury; on occasion that the due business income tax exceeds the imposed part by the state tax bureau in responsible shall
be handled by local tax bureau for its rebate particulars, the state tax bureau in responsible shall fill Confirmation Letter of
Rebate (Tax-deductible) and delivers the statistics hereof to local tax bureau in responsible.

VI.

the detailed measures shall be made by all provincial state tax bureaus and local tax bureaus.

VII.

for the unsettled rebate of the previous years, provisions in the present Notice shall prevail.

The State Administration of Taxation

March 8, 2006

The State Administration of Taxation
2006-03-08

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE CONCERNING THE PAYMENT OF ENTERPRISE INCOME TAXES BY LOGISTIC ENTERPRISES

State Administration of Taxation

Circular of the State Administration of Taxation on the Issue concerning the Payment of Enterprise Income Taxes by Logistic Enterprises

Guo Shui Han [2006] No.270

To the state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government, and cities under separate state planning,

In light of the relevant spirit of the Notice on Printing and Distributing the Opinions on Promoting the Development of Modern Logistic
Industry of China (Fa Gai Yun Xing[2004] No.1617) by the National Development and Reform Commission jointly with other eight departments,
and in pursuant to the relevant provisions of the Interim Regulation on Enterprise Income Tax of the People’s Republic of China and
its detailed implementation rules, we hereby issue the following notice on relevant issues concerning the payment of enterprise income
taxes by logistic enterprises in order to promote the development of the modern logistic industry, and enhance the competitiveness
of the logistic enterprises,:

With respect to the trans-regional institutions (including sites and networks) established by a logistic enterprise within the same
province, autonomous region, or municipality directly under the Central Government, if they are enterprises under uniform operation
and accounting system under the leadership of their headquarters without establishing bank settlement accounts or compiling financial
statements and account book, and are interlinked with the headquarters and implement standardized management, their enterprise income
taxes shall be paid uniformly by their headquarters, and the trans-regional institutions shall not pay enterprise income taxes at
their own localities. Those trans-regional institutions that do not comply with any one of the aforesaid conditions shall not be
included into the scope of unified tax payment, and shall pay their enterprise income taxes at their own localities.

II.

The aforesaid logistic enterprises shall refer to the economic organizations that meet the following requirements: registered at the
administrative departments of industry and commerce; have or rent the necessary means of transport and storage facilities; have
at least two or more scopes of business of undertaking transportation (or freight forwarding) and storage, and etc.; are able to
provide such all-in-one services as transportation, agency, storage, loading and unloading, processing, cleanup, distribution, and
etc.; have the information management system applicable to their own businesses, implement independent business accounting; are liable
for their own profit and losses; and undertake civil liabilities independently.

III.

When the logistic enterprises pay their enterprise income taxes uniformly, their headquarters (head office) shall file an application
to the competent taxation authority at the provincial level where it is located, and the competent provincial taxation authority
shall notify the relevant competent tax authorities to implement it accordingly after making examination and confirmation.

IV.

When the logistic enterprises apply for paying enterprise income taxes uniformly, they shall file an application for unified tax payment
to the competent taxation authority at the provincial level where it is located before March 31 of the year, and attach the business
licenses and taxation registration certificates (in photocopy) of the headquarters and the trans-regional institutions, Articles
of Association of the enterprises, the financial business accounting system of the enterprises, certificate of assets relationship
between the headquarters and the trans-regional institutions, financial statements and tax returns of the headquarters in the previous
year, name list of the trans-regional institutions and their localities, and other materials if necessary.

The competent tax authorities at the localities of the logistic enterprises (including headquarters and trans-regional institutions)
which pay enterprise income taxes uniformly shall strengthen the administration of tax collection on the headquarters and the trans-regional
institutions and the supervisions thereof in light of the spirits of the documents and regulations of the State Administration of
Taxation on the management of the enterprises that collective or unified pay taxes.

State Administration of Taxation

March 18, 2006

State Administration of Taxation
2006-03-18

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German Laws

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

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

CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING THE COMPETENT DEPARTMENTS OF COMMERCE AT PROVINCIAL LEVEL TO EXAMINE AND MANAGE FOREIGN-FUNDED NON-VESSEL SHIPPING ENTERPRISES

THE MEASURES GOVERNING ELECTRONIC BANKING

NOTICE OF THE MINISTRY OF COMMERCE ON ISSUES CONCERNING ENTRUSTING STATE-LEVEL ECONOMIC AND TECHNOLOGICAL DEVELOPMENT TO EXAMINE AND APPROVE FOREIGN INVESTMENT COMMERCIAL ENTERPRISES AND AGENT ENTERPRISES OF INTERNATIONAL FREIGHT FORWARDING

ACCOUNTING STANDARDS FOR BUSINESS ENTERPRISES NO.1 – INVENTORIES

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 25 – ORIGINAL INSURANCE CONTRACTS

ANNOUNCEMENT NO.9, 2006 OF THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA

NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON THE EFFECTIVENESS AND IMPLEMENTATION OF THE AGREEMENT ON AVOIDING DOUBLE TAXATION BETWEEN CHINA AND AZERBAIJAN

NOTICE OF CHINA BANKING REGULATORY COMMISSION ON FURTHER STRENGTHENING FOREIGN EXCHANGE RISKS MANAGEMENT

NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON REBATE OF NEWLY-BUILT ENTERPRISE BUSINESS INCOME TAX IN CARGO TRANSPORT INDUSTRY

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE CONCERNING THE PAYMENT OF ENTERPRISE INCOME TAXES BY LOGISTIC ENTERPRISES

CONSTITUTION ACT, 1982 – page 22

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

CONSTITUTION ACT, 1982 – page 17

CONSTITUTION ACT, 1982 – page 16

CONSTITUTION ACT, 1982 – page 12

CONSTITUTION ACT, 1982 – page 11

CONSTITUTION ACT, 1982 – page 10

CONSTITUTION ACT, 1982 – page 9

CONSTITUTION ACT, 1982 – page 8

CONSTITUTION ACT, 1982 – page 7