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CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE OF TAX REFUND OF FIXED ASSETS INPUT TAX IN NORTHEAST REGION FOR THE YEAR 2006

Circular of the Ministry of Finance and the State Administration of Taxation on the Issue of Tax Refund of Fixed Assets Input Tax
in Northeast Region for the Year 2006

Cai Shui [2006] No. 156

Departments (Bureaus) of Finance of Liaoning province, the city of Dalian, Jilin province and Heilongjiang province and the State
Administration of Taxation:

In order to undertake smoothly the relevant tax refund of extending the scope of VAT deduction in Northeast region in 2006, related
matters are hereby notified as follows:

1.

For taxpayers who are incorporated into extending the scope of VAT deduction of Northeast region, the fixed assets input tax that
occurred from December 1, 2005 to November 30, 2006, shall, upon approval by the local financial department, undertake tax refund
besides the withdrawal from the realized and put-in-warehouse VAT.

2.

As regards fixed assets input tax that occurred after December 1, 2006, the added amount, for the time being, shall be followed to
calculate means of tax refund.

State Administration of Taxation

November 17, 2006



 
Ministry of Finance, State Administration of Taxation
2006-11-17

 






CIRCULAR OF CHINA CHAMBER OF COMMERCE OF IMPORT AND EXPORT OF FOODSTUFFS, NATIVE PRODUCE & ANIMAL BY-PRODUCTS, CHINA NATIONAL VEGETABLE OIL ASSOCIATION AND CHINA ASSOCIATION OF ENTERPRISES WITH FOREIGN INVESTMENT ON TRANSACTION OF QUALIFICATIONS FOR IMPORT OF BEAN OIL, PALM OIL, AND COLZA OIL OF 2007

Circular of China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products, China National
Vegetable Oil Association and China Association of Enterprises with Foreign Investment on Transaction of Qualifications for Import
of Bean Oil, Palm Oil, and Colza Oil of 2007

All the relevant enterprises:

The auditing work on qualifications for import of bean oil, palm oil and colza oil of 2007 shall be started today, and the cooperation
team for import of vegetable oil composed of China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal
By-Products (CFNA), China National Vegetable Oil Association (CNVOA) and China Association of Enterprises with Foreign Investment
(CAEFI) shall continue to be responsible for it. The relevant matters are hereby noticed as follows:

1.

Where an enterprise has acquired the qualification for import of bean oil, palm oil and colza oil in 2006, the qualification thereof
shall continue to be valid in 2007.

2.

The relevant standards in the Circular on Implementation of Enterprises Qualification Standards for Import of Bean Oil, Palm Oil,
and Colza Oil which is promulgated in 2006 shall continue to be applied to the qualifications for import of bean oil, palm oil and
colza oil in 2007. Enterprises which accord with the condition, may apply for the import qualification. An enterprise which put forward
an application shall put on records to the institution authorized by Ministry of Commerce, and meanwhile, report the declaration
materials to the cooperation team for import of vegetable oil, the deadline of which is December 25, 2006 (Postal Address: Room 320,
Xitangzi Bystreet No.21, Dongcheng District, Beijing; Cooperation Team for Import of Vegetable Oil; Postal Code: 100006).

3.

After auditing by the cooperation team for import of vegetable oil, the enterprises, chambers and associations which accord with the
2007 year’s qualification conditions for import of bean oil, palm oil and colza oil shall be promulgated on internet.

Contact Persons:

Jiang Xiansheng, CFNA

Tel.: 010-65598242

Fax: 010-65132570

Wang Junzi, CNVOA

Tel.: 010-66095266

Fax: 010-66038284

Wen Xiaoguang, CAEFI

Tel.: 010-85226278

Fax: 010-85226262

Appendix: Qualification Standards for Import of Bean Oil, Palm Oil, and Colza Oil

China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products

China National Vegetable Oil Association

China Association of Enterprises with Foreign Investment

December 4, 2006
Appendix:
Qualification Standards for Import of Bean Oil, Palm Oil, and Colza Oil and the Declaration Procedure

1.

An import enterprise of bean oil, palm oil and colza oil shall accord with the following conditions:

(1)

It is registered at commercial and industrial administrative department before January 1, 2006. Where it is a foreign-funded enterprise,
it must be approved to be enpost_titled to engaging in import and export business and distribution. Where it is a foreign-funded manufacturing
enterprise, its business scope must include production, utilization and operation of vegetable oil business.

(2)

Where it has acquired the tariff quotas for import of bean oil, palm oil and colza oil of 2005 or it is a trade enterprise,

(a)

its registered capital must be at least 10 million Yuan;

(b)

its annual sales volume must be at least 200 million Yuan; and

(c)

it must have imported at least 30,000 tons of bean oil, palm oil and colza oil in the recent 3 years.

Where it is a manufacturing enterprise,

(a)

its registered capital must be at least 500,000 Yuan;

(b)

its annual sales volume must be at least 100,000,000 Yuan. If it is a food production enterprise, its annual sales volume must be
at least 3,000,000 Yuan;

(c)

it must be an oils processing enterprise producing refined oil with the capacity of processing at least 200 tons of crude oil per
day, or it must be a food production enterprise which uses palm oil as direct raw material and annually consumes at least 3000 tons
of palm oil; and

(d)

it has acquired national Production Permit for Industrial Products. and

(3)

It has had no acts in violation of the relevant laws and regulations in the recent 3 years.

2.

Declaration Procedure

Where an importing enterprise accords with the aforesaid conditions, it shall put on records at the institution authorized by the
Ministry of Commerce and send the copies of the materials to the cooperation team for import which shall, in accordance with the
aforesaid qualification standards for import enterprises, be responsible for conducting qualification auditing on the enterprises
which submitted the materials.

The Chamber and Association shall notice the enterprises which accord with the import qualification prior to December 31, 2005.



 
China Chamber of Commerce of Import and Export of Foodstuffs, Native Produce & Animal By-Products, China National Vegetable
Oil Association, China Association of Enterprises with Foreign Investment
2006-12-04

 






RULES FOR THE COMPILATION OF INFORMATION DISCLOSURES BY THE COMPANIES OFFERING SECURITIES TO THE PUBLIC (NO. 3) — SPECIAL PROVISIONS ON THE CONTENTS AND FORMATS OF PROSPECTUSES OF INSURANCE COMPANIES (AMENDED IN 2006)

Circular of the China Securities Regulatory Commission concerning the Promulgation of the Rules for the Compilation of Information
Disclosures by the Companies Offering Securities to the Public (No. 3) — Special Provisions on the Contents and Formats of Prospectuses
of Insurance Companies

Zheng Jian Fa Xing Zi [2006] No. 151

Each insurance company and recommendation institution:

The Rules for the Compilation of Information Disclosures by the Companies Offering Securities to the Public (No. 3) — Special Provisions
on the Contents and Formats of Prospectuses of Insurance Companies are hereby promulgated for the purpose of regulating the information
disclosure of the insurance companies offering securities to the public, and shall be implemented as of the promulgation date .

The China Securities Regulatory Commission

December 8, 2006

Rules for the Compilation of Information Disclosures by the Companies Offering Securities to the Public (No. 3) — Special Provisions
on the Contents and Formats of Prospectuses of Insurance Companies (Amended in 2006)

Article 1

In accordance with the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China, the Insurance
Law of the People’s Republic of China, as well as the relevant provisions formulated by the China Securities Regulatory Commission
(hereinafter referred to as the CSRC) and the China Insurance Regulatory Commission (hereinafter referred to as the CIRC), the present
Provisions are formulated to regulate the information disclosure of the insurance companies that offer securities to the public (hereinafter
referred to as “insurance companies”) and protect the legitimate rights and interests of investors

Article 2

When an insurance company formulates the prospectus for the initial public offering it shall follow the requirements as prescribed
in the present Provisions in addition to the general provisions on prospectuses and financial statements as prescribed by the CSRC.

Article 3

An insurance company shall at least disclose the risk factors as follows:

(1)

risks in the change of interest rates;

(2)

risks in the insufficiencies of price fixing and reserves that may be caused by the such premises as preconcerted interest rates,
preconcerted loss ratio, preconcerted additional rates, preconcerted return on investment adopted by the insurance company for determining
the premium rates of insurance products or various reserves;

(3)

operational risks, that is, the risks caused by imperfect or ineffective internal control or uncontrollable external conditions, for
instance: related risks in the loss of insurance agency institutions or marketing staff, risks in the abnormal surrender, risks in
the reputation loss of the insurance company resulted from that its staff or agents damage the interests of the insured, risks in
catastrophes, and risks in the reinsurance business and so on.;

(4)

risks in insurance frauds, that is, the risks resulted from that the policy holders, the insured, insurance agents, brokers or assessors
make false statements or hide important facts to the insurance company without following the principle of utmost good faith and violating
statutory duties;

(5)

risks of investment, that is, the risks resulted because the asset value of the investment portfolio of the insurance company reduces
or its investment portfolio fails to produce the expected profits;

(6)

risks in the non-matching of assets and debts, that are, the risks resulted from unfavorable influences to its solvency caused by
the non-matching of assets and debts of the insurance company ;

(7)

risks in the information system, that is , the losses to the insurance company or the unfavorable influences to its operational performances
owing to the failure of the information system to conduct normal business processing or data loss because the information system
can not operate normally or is not perfect;

(8)

policy risks, that is, the risks from the alteration of national policies, laws or regulations, for instance, the risks resulted from
the alteration of such policies as taxation or government supervision, etc.; and

(9)

other risks, namely, the risks faced by the insurance company besides those mentioned above.

Article 4

As for the disclosure of the basic conditions about the insurance industry of China, an insurance company shall, at least disclose
the following contents:

(1)

the overview about China’s insurance industry;

(2)

the characteristics and trends of developments of the insurance industry; and

(3)

the regulatory system and main laws and regulations of insurance industry.

Article 5

An insurance company shall at least disclose the following contents in accordance with its own conditions:

(1)

the market share of each primary insurance business conducted by the issuer;

(2)

primary advantages and disadvantages of the issuer in the market competition;

(3)

the development system, marketing personnel and network, and insurance agency conditions of the issuer and so on; and

(4)

the conditions on study and development of insurance products, and the main new products lately promoted, etc.

Article 6

An insurance company shall set up and disclose its internal control systems, which includes the control of businesses in sales, underwriting,
compensation granting, and reinsurance and so on; the control of budgets, expenditure management and financial statements and other
financial controls; the control of capital transfer, investment decisions, investment risk management and other capital control,
and the control of information technology and information safety management and other information technology control.

Article 7

An insurance company shall disclose its main insurance business categories and its development plans, and the principles and methods
for determining premium rates in accordance with the characteristics of its own business. For the individual insurance business,
the quantity of policyholders shall also be disclosed.

An insurance company shall disclose the composition of its premium incomes for the recent three years and the latest period in light
of different regions and main insurance business categories, and analyze the increase or decrease of premium incomes for different
regions and main insurance business categories, and the reasons for such changes.

An insurance company shall disclose the composition of compensations and commissions in light of main insurance business categories
and analyze the increase and decrease thereof and the reasons for such changes.

Article 8

By considering the characteristics of its own business, an insurance company shall disclose the types of reserves, principles and
methods for calculation of reserves, and shall, disclose the balance of various reserves for the recent three years and the latest
period in light of main insurance business categories, and analyze the changes thereof and the reasons for such changes. An insurance
company shall explain whether the reserves are sufficient by considering the characteristics of various reserves.

Article 9

In accordance with the relevant provisions of the CIRC, an insurance company shall, disclose the conditions about the solvency at
the end of each period for the recent three years and the latest period. The conditions about the solvency shall include but not
be limited to the actual amount of solvency, minimum amount of solvency and adequacy ratio of solvency.

In case the solvency amount and the monitoring indices of an insurance company for the recent three years and the latest period exceed
the normal scope, and for which any objection has been put forward by the insurance regulatory organ, the insurance company shall
disclose them and make corresponding explanations.

Article 10

An insurance company shall disclose related policies and its main business partners about the reinsurance business.

An insurance company shall disclose the amount of outward and inward payment of premiums, reinsurance reserves, and the reasons for
their changes for the recent three years and the latest period in light of main reinsurance companies, and disclose related conditions
about the major reinsurance matters still within the valid term And a separate disclosure shall be made in the case of any non-proportional
reinsurance contract including reinsurance of an excess of loss.

A reinsurance company shall disclose the reinsurance premium incomes and the ceded insurance premiums in light of main insurance business
categories.

A property insurance company shall disclose the policies for which it undertakes the major insurance liability at the end of the latest
period, and its reinsurance plans.

Article 11

An insurance company shall make disclosure of the main contents and accounting methods of financial reinsurance contracts for the
recent three years and the latest period, and their influences on the profits of the current period.

Article 12

By considering the provisions of the insurance regulatory organ, an insurance company shall disclose its investment policies, strategies,
portfolio composition and return on investment for the recent three years and the latest period, and their changes and trends shall
be analyzed.

In light of investment targets and investment purposes, an insurance company shall separately disclose its investment portfolio composition
for the recent three years and the latest period. The investments can be divided into bank deposits, government bonds, financial
bonds, corporate bonds, funds, stocks and other methods for using the capital if sorted according to the types of targets; and the
investments can be divided into financial assets, held-to-maturity investments, and financial assets available for sale, etc which
are measured at their fair value and of which the changes are recorded in the profits and losses of the current period if sorted
according to the types of purposes..

Article 13

For the initial public offering of securities, a life insurance company, health insurance company or pension insurance company shall
disclose the information about embedded value; and a financial or insurance group company that possesses any life insurance company,
health insurance company or pension insurance company shall disclose the information about embedded value for the related business.

An insurance company shall employ an external actuarial agency or actuaries to compile a report on embedded value in accordance with
the related provisions of the CIRC, and take the said report as the archival documents of the prospectus. The following statement
shall be made by the external actuarial agency or actuaries after the full text of the prospectus:

“This agency and our actuaries for signature have read the prospectus and its summery, and make sure that there is no conflict between
the prospectus and its summery and the report on embedded value issued by this agency. This agency and our actuaries for signature
have no objection to the contents of the report on embedded value quoted in the prospectus and its digest by the issuer, and guaranteed
that no false record, misleading statement or major omission may be resulted from the aforesaid contents in the prospectus, and shall
bear corresponding legal liabilities for the authenticity, accuracy and integrity of such contents.” The said statement shall be
affixed with the signatures of the actuaries for signature and the person in-charge of the actuarial agency and the seal of the actuarial
agency.

When disclosing the relevant information about the embedded value in the prospectus, an insurance company shall state that: “the embedded
value is the economic value based on a group of assumptions of future experiences and estimated in accordance with actuarial methods,
however, various assumptions as the basis of embedded value are uncertain, so the investors, when making investment decisions, shall
prudently use them. The information about embedded value shall include but not be limited to the following contents:

(1)

the embedded value at the end of the latest year and the results of the new businesses’ value of one year;

(2)

return ratio and risk discount ratio for calculation of embedded value and other main assumptions at the end of the latest year;

(3)

sensitive analysis results on the embedded value at the end of the latest year and the new businesses’ value of one year; and

(4)

the analysis of the change of embedded value at the end of the latest year.

Article 14

An insurance company shall disclose main accounting policies and accounting estimates as adopted within the reporting period by considering
the characteristics of insurance business, of which, the matters with direct relation to the insurance business shall at least include
the contents as follows:

(1)

detailed methods for confirming and calculating the premium incomes (reinsurance premium incomes are included) for main insurance
business categories;

(2)

accounting methods for outstanding loss reserves;

(3)

accounting methods for the undue insurance liabilities reserves;

(4)

accounting methods for the life insurance liabilities reserves;

(5)

accounting methods for the reserves for long-term health insurance liabilities; and

(6)

accounting methods for the whole reserves.

A reinsurance company shall pay more attention to the disclosure of the accounting methods for various reinsurance reserves.

Article 15

An insurance company shall disclose the information about its branches in accordance with the provisions.

If any branch is established abroad, an insurance company shall separately disclose the business operation situation of the overseas
branch.

Article 16

An insurance company shall disclose the composition of premiums receivable at the end of the latest year and the latest period in
light of the age of accounts. In case there are the arrears of any shareholder holding more than 5%(including5%) the shares of the
issuer in the premiums receivable, the explanations therefor shall be made.

Article 17

An insurance company shall disclose the amount of reinsurance debts receivable and payable at the end of the latest year and the
latest period in light of the classification of main reinsurance companies. In case there are the arrears of any shareholder holding
more than 5%(including5%) the shares of the issuer in the reinsurance debts receivable, the explanations therefor shall be made

Article 18

An insurance company shall separately disclose the long-term equity investment at the end of the latest year and the latest period
in light of the cost method and the equity method, and as for an important investment project, it shall disclose such information
as the starting date of investment, amount of initial investment, amount of final investment, proportion of its equity investment
to the equity of the invested party, and so on.

Article 19

An insurance company shall analyze and explain the alterations of commissions payable within the reporting period.

Article 20

An insurance company shall disclose the amount and interest rate of policy-pledged loans at the end of the latest year and the latest
period.

Article 21

An insurance company shall disclose the book balance of and the depreciation reserves for pending materials insolvent at the end
of the latest year and the latest period, and the recyclability thereof shall be analyzed.

Article 22

An insurance company shall disclose the calculating basis and amount of the reserves for capital bonds and insurance protection funds.

Article 23

An insurance company shall disclose such financial indices of the recent three years and the latest period as liquidity ratio, debt-to-asset
ratio, return on net assets, earnings per share, growth rate of retained premium, ratio of composite costs (for property insurance),
loss rate (for property insurance), and surrender rate (for life insurance).

An insurance company shall make explanations for the changes of the indices mentioned above for the recent three years and the latest
period, reasons for such changes and other related information.

Article 24

An insurance company shall, if it plans to use the raised capital for the establishment of a branch, disclose the amount of capital
required and the proposed location, etc. for the branch; and the specific investment direction may not be explained in case the raised
capital is used only to increase the principal; and the specific investment direction of the raised capital shall be disclosed in
detail in case the raised capital is used to upgrade the equipment, merger, acquisition or for any other purpose.

Article 25

An accounting firm that has professional actuaries, the experiences for audit of insurance companies, and the qualification to engage
in the securities and futures-related business shall be hired by an insurance company to audit its statutory financial statements
formulated pursuant to the rules and system of China for accounts and information disclosure in accordance with independent auditing
standers; and contents for audit shall also be added, and an international accounting firm that is specially accredited by the CSRC
and the Ministry of Finance shall be hired to audit its supplementary financial statements under the internationally universal rules
for accounts and information disclosure.

The main contents that need attention to be paid for supplementary audit include: the reserves for losses, and disposition of non-performing
assets significant off-balance-sheet items and their influences to the financial status and operational results; the asset quality,
profitability and operating risks of different clients, operating projects and operating areas; and the main differences between
statutory and supplementary financial statements.

The financial materials in the formal text of the prospectus shall be digested from statutory financial statements. Supplementary
financial statements shall be disclosed as the appendix of the prospectus so that the investors can refer to them for their judgment
of the financial status and investment risks of the insurance company.

Article 26

The present Provisions shall come into effect as of the promulgation date. The Rules for the Compilation of Information Disclosures
by the Companies Offering Securities to the Public (No. 3 and No. 4) – Special Provisions on the Contents and Formats of Prospectuses
of Insurance Companies (Zheng Jian Fa [2000] No. 76) and the Special Provisions on the Annotations to the Financial Statements of
Insurance Companies (Zheng Jian Fa [2000]No. 76) shall be abolished at the same time.



 
The China Securities Regulatory Commission
2006-12-08

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE CLARIFICATION OF THE STANDARDS FOR SELF-DECLARATIONS TO BE MADE BY THE TAXPAYERS WITH AN ANNUAL INCOME OF 120,000 YUAN OR MORE

Circular of the State Administration of Taxation Concerning the Clarification of the Standards for Self-declarations to Be Made by
the Taxpayers with an Annual Income of 120,000 Yuan or More

Guo Shui Han [2006] No.1200

The local taxation bureaus of each province, autonomous region, municipality directly under the Central Government and city specifically
designated in the state plan, and the state taxation bureaus of Xizang Autonomous Region and Ningxia Autonomous Region:

After the Circular of the State Administration of Taxation concerning Printing and Distributing the Measures for the Self-declaration
of Individual Income Tax (for Trial Implementation) (Guo Shui Fa [2006] No. 162, hereinafter referred to as Measures) was issued,
some regions have requested us to further definite the standards for calculating the annual income of 120,000 Yuan or more. We hereby
inform the following related matters:

1.

As regards a taxpayer with an annual income of 120,000 Yuan or more, in addition to his/her annual income acquired according to the
provisions of Articles 6through 8 in the Measures, the amount of his/her annual income shall also be simultaneously included according
to the following provisions:

(1)

as regards the income from remuneration for labor and the income from franchise royalties, the related expenses of taxation paid by
the taxpayer in the course of providing labor services or alienating franchise use right may not be deducted.

(2)

as regards the income from leasing property, the related expenses of taxation paid by the taxpayer in the course of leasing property
may not be deducted; all the income from leasing property, which covers more than one year but is acquired once and for all, shall
be considered as the income of the year when such income is actually acquired.

(3)

as regards the income from individual transfer of premise, if the individual income tax is levied upon verification, the annual income
shall be computed by respectively changing the actual collecting rates (1%, 2%, 3%) into the taxable rates (5%, 10%, 15%).

(4)

as regards the income from interest of individual savings deposit and the income from enterprise bond interest, such incomes shall
be considered as the income of the year when they are actually acquired by the taxpayer.

(5)

as regards an industrial and commercial household or the investor of a sole proprietorship, in case the individual income tax is verified
on the basis of a levying rate, the taxable amount shall be computed by changing the levying rate into the corresponding rate of
taxable income.

With respect to the investors of a partnership enterprise, after the taxable amount is decided according to the methods mentioned
above, the copartners shall decide their respective taxable amount on the basis of the proportion of distribution as stipulated in
the partnership agreement; if the proportion is not stipulated in the partnership agreement, their respective taxable amount shall
be decided by distributing the total amount equally to all copartners. If a copartner invests in two or more enterprises, his/her
annual income shall be the total amount of all the taxable amounts of income from all the enterprises he/she invests in.

(6)

as regards the income from the assignment of stocks, the amount of income to be declared in a tax year shall be the positive number
acquired by offsetting the loss with the income from the assignment of personal stocks; if the result is negative, “Zero” shall be
filled in this item.

2.

The standards for computing annual incomes mentioned above are proposed mainly to facilitate the taxpayers in their performance of
their obligation of self-declaration, they may only be applicable to the self-declarations to be made by the taxpayers with individual
annual income of 120,000 Yuan or more, and shall not apply to the calculation of individual tax payment. The tax authorities of each
level shall extensively disseminate and interpret the calculating standards for self-declaration to be made by the taxpayers with
an annual income of 120,000 Yuan or more to the general public.

3.

In accordance with provisions of Article 24 in the Measures, which stipulates that: “A taxpayer may authorize an intermediary institution
which is qualified to be the tax agency or someone else to make tax declaration.” When voluntarily entrusting an intermediary institution
with the tax agency qualification (hereinafter referred to as intermediary institution), withholding agent or any other individual
to handle self-declaration on his/her behalf, a taxpayer with the annual income of 120,000 Yuan or more shall conclude an agreement
(contract) on entrusting the self-declaration of individual income tax. Meanwhile, the taxpayer shall inform the agent all the taxable
items, amount of income and amount of the tax to be paid within the tax year, and the agent shall declare after amalgamating all
the incomes acquired by the taxpayer and attach the agreement (contract) on entrustment.

When accepting the self-declaration made by an intermediary institution, withholding agent or any other individual on behalf of a
taxpayer, the tax authority shall examine and verify the agreement (contract) on entrusting declaration concluded between the taxpayer
and the assignee, and if such agreement (contract) is not presented, the self-declaration may not be accepted.

The State Administration of Taxation

December 15, 2006



 
The State Administration of Taxation
2006-12-15

 






MEASURES FOR ADMINISTERING CURRENCY TYPES AND CONVERSION RATES FOR THE STATISTICS OF INSURANCE-RELATED FOREIGN CURRENCIES

Circular of China Insurance Regulatory Commission concerning Printing and Distributing the Measures for Administering Currency Types
and Conversion Rates for the Statistics of Insurance-related Foreign Currencies

Bao Jian Fa [2006] No. 126

All insurance regulatory bureaus, insurance companies and insurance asset management companies,

This Commission instituted the Measures on the Administration of Currencies and Conversion Rates for the Statistics of Insurance-related
Foreign Currencies in order to intensify the statistical management of foreign exchange businesses of insurance institutions and
improve the quality and comparability of the statistical information concerning foreign exchange businesses. They are hereby printed
and distributed to you. Please abide hereby.

China Insurance Regulatory Commission

December 22, 2006

Measures for Administering Currency Types and Conversion Rates for the Statistics of Insurance-related Foreign Currencies
Chapter I General Rules

Article 1

Under the Interim Provisions on the Management of Insurance Statistics and other related rules and regulations, the present Measures
are instituted in order to intensify the statistical management of foreign exchange businesses of insurance institutions and improve
the quality and comparability of the statistical information about foreign exchange businesses.

Article 2

China Insurance Regulatory Commission (hereinafter referred to the CIRC) and its dispatched institutions shall carry out a currency-type-based
statistical system for the foreign currency businesses of insurance institutions.

Article 3

The present Measures shall be applicable to such insurance institutions as insurance companies and insurance asset management companies.

Article 4

The present Measures shall only be applicable to the information of insurance statistics the insurance institutions reported to the
CIRC and its dispatched Institutions

Chapter II Currency Types for Statistics of Foreign Currencies

Article 5

The currencies, the CIRC and its dispatched institutions used in the statistics of foreign exchange businesses of insurance institutions,
are as follow, the USD, EUR, YEN, HKD and GBP.

Article 6

An insurance institution shall report to the CIRC and its dispatched institutions the statistical information of foreign currencies
as follows:

(1)

The statistical information regarding the original currency of USD, EUR, YEN, HKD and GBP;

(2)

The conversion of the statistical information regarding all foreign currencies into USD; and

(3)

The conversion of the statistical information regarding all foreign currencies into RMB.

Chapter III Foreign Exchange Conversion Rates for the Statistics

Article 7

Reporting the statistical information regarding all businesses related to the conversion of foreign exchanges into USD, an insurance
institution shall adopt the USD-based exchange rates for all kinds of currencies announced by the State Administration of Foreign
Exchange each month.

Doing statistics for any currency that the State Administration of Foreign Exchange fails to announce the USD-based conversion rate,
an insurance institution shall adopt the USD-based exchange rate for this currency reported by a universally acknowledged overseas
financial market on the last day by the end of the reporting period.

Article 8

Reporting the statistical information for all businesses related to the conversion of foreign currencies into RMB, an insurance institution
shall adopt the central parity of RMB against foreign currencies reported by the People’s Bank of China on the last day by the end
of the reporting period.

Doing statistics for any foreign currency that the People’s Bank of China fails to announce the RMB-based exchange rate, an insurance
institution shall convert it into USD, that is to say, it shall first convert it into USD in accordance with the method prescribed
in Article 7 , then convert it into RMB in accordance with the central parity of RMB against USD reported by the People’s Bank of
China on the last day by the end of reporting period.

Article 9

Reporting any financial statistical information regarding the conversion of foreign currencies into RMB, an insurance institution
shall make the exchange rate translation in accordance with the Accounting Standards for Enterprises No. 19 – Translation of Foreign
Currencies and the related Application Guide, and ensure that the data reported shall be in consistence with the data regarding the
financial statements of the company.

Article 10

A conversion rate shall be at least 4-digit decimal figures (round).

Chapter IV Supplementary Provisions

Article 11

The CIRC shall be responsible for the interpretation of the present Measures.

Article 12

The present Measures shall go into effect as of January 1, 2007.



 
China Insurance Regulatory Commission
2006-12-22

 






INTERIM RULES OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING VEHICLE AND VESSEL TAX






Order of the State Council

No.482

The Interim Regulations of the People’s Republic of China Concerning Vehicle and Vessel Tax, have been adopted at the 162nd executive
meeting of the State Council on December 27, 2006. They are hereby promulgated and shall go into effect as of January 1, 2007.
Premier of the State Council Wen Jiabao

December 29, 2006

Interim Rules of the People’s Republic of China Concerning Vehicle and Vessel Tax

Article 1

Within the territory of the People’s Republic of China, the owners or managers of vehicles and vessels shall be the taxpayers of
vehicle and vessel tax and shall pay vehicle and vessel tax according to the provisions of the present Rules.

The term “vehicle and vessel” as mentioned in the present Rules means the vehicles and vessels that shall be registered at the administrative
departments of vehicle and vessel in accordance with law.

Article 2

The tax amount applicable to vessel and vehicle shall be decided in light of the Schedule of the Tax Items and Tax Amount of Vehicle
and Vessel Tax attached hereto.

The finance department and the taxation department under the State Council shall divide sub-items in light of the actualities and
determine the tax amount range of each vehicle sub-item and the specific tax amount applicable to vessels within the tax item scope
and tax amount range as specified in the Schedule of the Tax Items and Tax Amount of Vehicle and Vessel Tax. The specific tax amount
applicable to vehicles shall be decided by the people’s governments of the provinces, autonomous regions or municipalities directly
under the Central Government within the specified tax amount under each sub-item.

Article 3

The vehicle and vessel tax shall be exempted from the following vehicles and vessels:

(1)

non-motor vehicles and vessels (exclusive of non-motor barges);

(2)

tractors;

(3)

fishing vessels for fishery and cultivation;

(4)

special vehicles and vessels for army and armed police;

(5)

vehicles and vessels used by police;

(6)

vessels whose tonnage duties have been paid according to the related provisions; and

(7)

vehicles and vessels of the embassies and consulates of foreign countries in China, institutions of international organizations in
China and their related personnel, which shall be exempted from tax as prescribed in the related laws of China or the international
treaties concluded or acceded to by China

Article 4

The people’s governments of the provinces, autonomous regions, or municipalities directly under the Central Government may regularly
grant tax deduction or exemption to urban and rural vehicles and vessels used for public traffic in light of the actualities.

Article 5

Vehicle and vessel tax shall be levied by local tax authorities.

Article 6

The payment place for vehicle and vessel tax shall be decided by the people’s governments of the provinces, autonomous regions, or
municipalities directly under the Central Government in accordance with the actualities.

In case a vehicle or vessel is used in more than one province, autonomous region, or municipality directly under the Central Government,
the payment place shall be the register place of such vehicle or vessel.

Article 7

The time when the obligation arises for a taxpayer to pay vehicle and vessel tax shall be the month as recorded in the registration
certificate for vehicle or vessel or driving license as issued by the administrative department of vehicle and vessel.

Article 8

Vehicle and vessel tax shall be declared and paid on an annual basis. The specific declaration period shall be decided by the people’s
governments of all provinces, autonomous regions, or municipalities directly under the Central Government.

Article 9

In case the owner or manager of a vehicle or vessel fails to pay vehicle and vessel tax, the user shall pay vehicle and vessel tax
in stead.

Article 10

An insurance institution, which undertakes the business of compulsory traffic accident liability insurance for motor vehicles, shall
be the withholding agent of the tax on motor vehicles and vessels, and shall withhold vehicle and vessel tax in accordance with law.

The standards for the withholding commission charge paid to a withholding agent by the tax authorities shall be determined by the
finance department and the taxation department under the State Council.

Article 11

When a withholding agent of the tax on motor vehicles and vessels withholds the vehicle and vessel tax in accordance with law, the
taxpayer may not reject.

Article 12

The administrative departments of vehicle and vessel of each level shall, in terms of the providing of relevant information on vehicle
and vessel administration, assist local tax authorities to intensify the administration of vehicle and vessel tax collection.

Article 13

The administration of collection of vehicle and vessel tax shall be conducted according to the Law of the People’s Republic of China
on the Administration of Tax Collection and the provisions in the present Regulations.

Article 14

The present Regulations shall go into effect as of January 1, 2007. The Interim Regulations on Vehicle and Vessel License Plate Tax
promulgated by the former Administrative Council on September 13, 1951 and the Interim Regulations of the People’s Republic of China
on Vehicle and Vessel Usage Tax as promulgated by the State Council on September 15, 1986 shall be concurrently repealed.


Annex

￿￿

Annex:

Schedule of the Tax Items and Tax Amount of Vehicle and Vessel Tax

￿￿

Tax Item

Tax Unit

Annual Tax Amount

Note

Passenger Automobile

Per Vehicle

60 Yuan to 660 Yuan

Including trolley

Cargo Automobile

Per Ton of Its Dead Weight

16 Yuan to 120 Yuan

Including tractor-truck and trailer

Three-wheeled and Low-speed Truck

Per Ton of Its Dead Weight

24 Yuan to 120 Yuan

￿￿

Motor Vehicle

Per Vehicle

36 Yuan to 180 Yuan

￿￿

Vessel

Per ton of Its Net Tonnage

3 Yuan to 6 Yuan

The tax amount of tugboat or non-motor barge shall be paid at 50% of that of vessel.

￿￿￿￿Footnote: The tax unit and annual tax amount of special working vehicles and special terrain vehicles of wheeled model shall be decided by the finance department and taxation department under the State Council in light of this Schedule by analogy.

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

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

Jian Shi [2007] No.18

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

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

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

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

January 5, 2007

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

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

1.

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

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

2.

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

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

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

3.

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

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

(1)

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

(a)

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

(b)

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

(2)

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

(a)

valid academic certificate;

(b)

registered certificate of certified architect or certified engineer;

(c)

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

(d)

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

4.

Miscellaneous

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

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

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

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

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

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

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

 



GUIDELINES FOR EXAMINATION AND APPROVAL OF THE ESTABLISHMENT OF LOAN COMPANIES

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

Yin Jian Fa [2007] No. 9

Each banking regulatory bureau:

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

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

China Banking Regulatory Commissio

January 22, 2007

Guidelines for Examination and Approval of the Establishment of Loan Companies

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

1.

Major Points for the Work of Establishment

(1)

Main work on applying for preparatory establishment

(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

(2)

Main work on applying for business commencement

(a)

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

(b)

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

(c)

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

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

(3)

Submission procedures and formats requirements

(a)

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

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

(b)

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

(c)

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

2.

Establishment Requirements

(1)

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

(2)

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

(3)

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

(4)

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

3.

Essential Examining Points

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

(1)

Application materials for preparatory establishment

(a)

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

(b)

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

(c)

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

(d)

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

(2)

Application materials for business commencement

(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

(f)

Whether any senior management personnel have bad records.

(g)

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

(h)

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

4.

Related Requirement for the Pilot Period

(1)

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

(2)

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

(3)

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

Affix:
Catalogue of Application Materials for Establishing Loan Companies

1.

Application Materials for Preparatory Establishment

(1)

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

(2)

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

(3)

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

(4)

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

(5)

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

(6)

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

(7)

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

(8)

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

(9)

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

2.

Application Materials for Business commencement

(1)

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

(2)

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

(3)

Draft of the articles of association.

(4)

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

(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

(5)

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

(a)

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

(b)

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

(c)

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

(d)

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

(6)

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

(7)

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

(8)

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

(9)

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

(10)

Chart of organizational structure.

(11)

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

(12)

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

(13)

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

(14)

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



 
China Banking Regulatory Commission
2007-01-22

 






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

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

The Provisions Concerning the Exemption of Import Duties from the Articles Used for Scientific Research and Teaching have been deliberated
and adopted by the Ministry of Finance, the General Administration of Customs and the State Administration of Taxation. They are
hereby promulgated and shall go into effect as of February 1, 2007. The Interim Provisions Concerning the Exemption of Import Duties
on the Articles Used for Scientific Research and Teaching as approved by the State Council on January 22, 1997 and promulgated by
Decree No. 61 of the General Administration of Customs on April 10, 1997 have been abolished simultaneously upon approval of the
State Council.
Minister Jin Renqing

Director Mou Xinsheng

Director Xie Xuren

January 31, 2007

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

Article 1

For the purpose of promoting the development of scientific research and education, pushing the implementation of the strategy of
invigorating the country through science, technology and education, and regulating the duty-free import of articles used for scientific
research and teaching, the present Provisions are formulated in accordance with the decision of the State Council on approving the
implementation of tax preferential policies for the import of articles used for scientific research and teaching.

Article 2

The customs import duties, value-added taxes of the import link and consumption taxes shall be exempted, in case any scientific research
institute or school, for the purpose of scientific research and teaching and within reasonable quantities, imports the articles used
for scientific research and teaching and can not be made in China and uses these articles directly for scientific research or teaching.

Article 3

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

(1)

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

(2)

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

(3)

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

Article 4

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

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

Article 5

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

Article 6

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

Article 7

In case any institution violates legal provisions by illegally transferring, misappropriating or disposing in other forms the articles
imported for scientific research and teaching with the duties exempted, it shall be punished in accordance with the related provisions,
and may not enjoy this tax preferential policy for one year; and if any crime is committed, the institution concerned may not enjoy
this tax preferential policy for three years.

Article 8

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

Article 9

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

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

(1)

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

(2)

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

(3)

computer work stations and computers of medium or large scale;

(4)

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

(5)

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

(6)

specimens and models;

(7)

slide shows used for teaching purposes;

(8)

materials used for experiments;

(9)

animals used for experiments;

(10)

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

(11)

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

(12)

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

(13)

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

(14)

trainer airplanes (limited to flight colleges);

(15)

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

(16)

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



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

 






CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING HAERBIN ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

Circular of the Ministry of Commerce on Entrusting Haerbin Economic-Technological Area to Examine, Approve and Administer the Relevant
Work on Foreign-invested Enterprises in Some Service Trade Sectors

Shang Zi Han [2007] No. 8

Haerbin Municipal People’s Government and Haerbin Economic-Technological Area,

Pursuant to Some Opinions on Further Promoting the Development Level of National Economic and Technical Development Zones (Guo Ban
Fa [2005] No. 15) as forwarded by the General Office of the State Council to the Ministry of Commerce, the Ministry of Land and Resources
and the Ministry of Construction as well as the provisions of the Ministry of Commerce on the authorized examination, approval and
administration of foreign-funded enterprises, the Ministry of Commerce has finished the archival filing, examination and approval
of the management systems of all the national economic and technological development zones and the connected network for examination
and approval of foreign capital. The related matters are hereby notified as follows:

1.

Upon research, we hereby authorize the Management Committee of Haerbin Economic-Technological Area to be responsible for examining,
approving and administrating the foreign-funded enterprises in related service trade sectors set up inside its zone for the purpose
of encouraging and supporting the national economic and technological development zones to vigorously develop the high value-added
service industries.

2.

The Management Committee of Haerbin Economic-Technological Area shall, in strict accordance with the laws and regulations on foreign
investments as well as the related provisions on foreign-funded enterprises of non-vessel shipping, construction, printing, construction
engineering design, road transport, commerce and international freight forwarding (see appendix), carefully examine and approve the
related foreign-funded enterprises set up within its zone, and report the related problems found in the work to the Ministry of Commerce
in a timely manner. The Ministry of Commerce shall implement the inspection of the aforesaid examination, approval and administration,
and cancel the authorization to a national economic and technological development zone which commits illegal examination and approval
during the course of authorization.

3.

The Management Committee of Haerbin Economic-Technological Area shall conduct a good job in examination and approval, archival filing
and statistical work in strict accordance with the requirements of the Ministry of Commerce for networking and online joint annual
inspection and by taking advantage of the networking certification system for foreign-funded enterprises. The related statistical
data shall be in line with the requirements so that the Ministry of Commerce can keep informed of the situation and strengthen supervision.

4.

Haerbin Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance department
yet. Haerbin Economic-Technological Area shall keep a close eye on and further resolve the problems in the management system, keep
a concise and efficient management system, and improve the level for examining, approving and administrating the foreign-funded enterprises.
Where any management system problem that may affect the work on examining, approving and administrating the foreign-funded enterprises
is found, this Ministry will withdraw the authorized power of examination, approval and administration immediately.

5.

This circular shall enter into force as of the promulgation date.

Ministry of Commerce

February 12, 2007
Appendix:
Related documents on entrusting the competent provincial departments of commerce to examine, approve and Administer foreign-funded
service trade Enterprises

1.

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Foreign-funded
Non-vessel Shipping Enterprises (Shang Zi Han [2005] No. 89)

2.

Circular of the Ministry of Commerce on Entrusting the Provincial Administrative Departments of Commerce to Examine, Approve and Administer
the foreign-funded Construction Enterprises (Shang Zi Han [2005] No. 90)

3.

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Printing Enterprises (Shang Zi Han [2005] No. 91)

4.

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Designing Enterprises for Engineering Projects (Shang Zi Han [2005] No. 92)

5.

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Some Foreign-funded
Road Transport Enterprises (Shang Zi Han [2005] No. 93)

6.

Circular of the Ministry of Commerce on Entrusting Local Departments to Check Foreign-funded Commercial Enterprises (Shang Zi Han
[2005] No. 94)

7.

Circular of the Ministry of Commerce about the related Issues on Entrusting National Economic and Technical Development Zones to Examine
and Approve foreign-funded Commercial Enterprises and International Freight Forwarding Enterprises (Shang Zi Han [2005] No. 102)

8.

Measures for the Administration of Foreign-funded International Freight Forwarding Enterprises (Decree No. 19, 2005 of the Ministry
of Commerce)



 
Ministry of Commerce
2007-02-12

 






1...202122...83Page 21 of 83

CONSTITUTION ACT, 1982 – page 22

NOTES (1) The enacting clause was repealed by the Statute Law Revision Act, 1893, 56-57 Vict., c. 14 (U.K.). It read as...

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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