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REPLY OF THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT ISSUES CONCERNING THE TAX REFUND TO FOREIGN-FUNDED ENTERPRISES FOR THEIR PURCHASE OF HOMEMADE EQUIPMENTS

State Administration of Taxation

Reply of the State Administration of Taxation on the Relevant Issues Concerning the Tax Refund to Foreign-funded Enterprises for Their
Purchase of Homemade Equipments

Guo Shui Han [2006] No. 203

February 22, 2006

The State Taxation Bureau of Jiangsu Province:

Your Request for Instructions on Relevant Issues concerning the Tax Refund to Foreign-funded Enterprises for Their Purchase of Homemade
Equipments (Su Guo Shui Fa [2005] No. 287) has been received. After deliberation, a following reply is hereby given as follows:

By referring to the relevant provisions on tax policies for the purchase of imported equipment in the “permitted investment projects
whose products are going to be wholly exported directly” in the Guiding Catalogue of Industries by Foreign Investment promulgated
by Order No. 25 [2002 ] of the General Administration of Taxation and for balancing the tax burden of imported products and homemade
products, the foreign funded enterprises that has enjoyed the tax refund policies for their purchase of homemade equipment in accordance
with the provisions on the “permitted investment projects whose products are going to be wholly exported directly” in Category 13
of the Guiding Catalogue of Industries by Foreign Investment cannot directly export all their products within 5 years of supervisory
period according to the provisions, all the drawback for their purchase of homemade equipment shall be recovered entirely.



 
State Administration of Taxation
2006-02-22

 






PENALTIES FOR ADMINISTRATION OF PUBLIC SECURITY LAW

Law of the People’s Republic of China on Penalties for Administration of Public Security










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

No. 38 

The Law of the People’s Republic of China on Penalties for Administration of Public Security, adopted at the 17th Meeting of the
Standing Committee of the Tenth National People’s Congress of the People’s Republic of China on August 28, 2005, is hereby promulgated
and shall go into effect as of March 1, 2006. 

Hu Jintao 

President of the People’s Republic of China 

August 28, 2005 

 

(Adopted at the 17th Meeting of the Standing Committee of the Tenth National People’s Congress on August 28, 2005) 

Contents 

Chapter I　General Provisions 

Chapter II　Types of Penalties and Their Application 

Chapter III　Acts Against the Administration of Public Security and Penalties 

Section 1　Acts Disturbing Public Order and Penalties 

Section 2　Acts Impairing Public Security and Penalties 

Section 3　Acts Infringing upon Rights of the Person and of Property and Penalties 

Section 4　Acts Impeding Social Administration and Penalties 

Chapter IV　Procedure of Penalties 

Section 1　Investigation 

Section 2　Decision 

Section 3　Execution 

Chapter V　Law Enforcement Supervision 

Chapter VI　Supplementary Provisions 

Chapter I　General Provisions 

Article 1　This Law is formulated in order to maintain the order of public security, safeguard public safety, protect the lawful
rights and interests of citizens, legal persons and other organizations, and regularize and guarantee performance of the duties for
administration of public security by public security organs and people’s police according to law. 

Article 2　A person who disturbs public order, endangers public safety, infringes on the rights of person and property or hampers
social administration, which is harmful to the society and which, according to the provisions of the Criminal Law of the People’s
Republic of China, constitutes a crime, shall be investigated for criminal responsibility according to law; and if such an act is
not serious enough for criminal punishment, the public security organ shall impose on him a penalty for administration of public
security according to this Law. 

Article 3　The provisions of this Law are applicable to the procedure of penalties for administration of public security; and to
cases for which no such provisions are stipulated in this Law, the relevant provisions of the Law of the People’s Republic of China
on Administrative Penalty shall be applicable. 

Article 4　This Law shall be applicable to acts committed against the administration of public security within the territory of
the People’s Republic of China, except where specially provided for by other laws. 

This Law shall be applicable to acts against the administration of public security committed aboard ships or aircrafts of the People’s
Republic of China, except where specially provided for by other laws. 

Article 5　A penalty for administration of public security shall be based on facts and fit the nature and circumstances of the act
committed against the administration of public security and the extent of harm done to the society. 

Penalties for administration of public security shall be imposed openly and impartially, human rights shall be respected and safeguarded,
and the dignity of citizens shall be protected. 

The principle of combining education with penalty shall be upheld in dealing with cases of public security. 

Article 6　People’s governments at various levels shall make comprehensive improvement of public security and take effective measures
to dissolve social contradictions, enhance social harmony and maintain social stability. 

Article 7　The department of public security under the State Council shall be responsible for administration of public security
throughout the country. The public security organs of the local people’s governments at or above the county level shall be responsible
for administration of public security within their respective administrative areas. 

Jurisdiction over the cases of public security shall be determined by the department of public security under the State Council. 

Article 8　Where an act against the administration of public security causes harm to another person, the person committing such
act or his guardian shall bear civil liability according to law. 

Article 9　In respect of acts against the administration of public security, such as brawling and damaging or destroying another
person’s property, which are caused by civil disputes, if the circumstances are relatively minor, the public security organ may
dispose of them through mediation. Where the parties concerned reach an agreement through mediation by the public security organ,
no penalties shall be imposed. Where no agreement is reached through mediation or the agreement, although reached, is not executed,
the public security organ shall, in accordance with the provisions of this Law, impose penalties upon the persons committing the
acts against the administration of public security and notify the parties concerned that they may, according to law, bring a civil
action before a people’s court in respect of the civil disputes. 

Chapter II　Types of Penalties and Their Application 

Article 10　Penalties for acts against the administration of public security are divided into the following types: 

(1) warning; 

(2) fine; 

(3) administrative detention; and 

(4) revocation of licenses issued by public security organs. 

To a foreigner who acts against the administration of public security, leaving the country within a time limit or deportation attached
to a penalty may be applicable. 

Article 11　Contraband seized in dealing with cases of public security such as drugs and pornographic objects, gambling devices,
money for gambling, devices used for ingesting or injecting drugs, and the instruments owned and directly used by the persons in
their acts against the administration of public security shall be taken over, and shall be disposed of according to relevant regulations. 

The money and things of value obtained through acts against the administration of public security shall be recovered and returned
to the victim; and where there is no victim involved, they shall be registered and sold by auction or disposed of according to the
relevant regulations of the State, and all the proceeds therefrom shall be handed over to the State Treasury. 

Article 12　If a person who has attained to the age of 14 but not to the age of 18 commits an act against the administration of
public security, he shall be given a relatively light or mitigated penalty; and if a person who has not attained to the age of 14
commits such an act, he shall not be penalized, but his guardian shall be instructed to subject him to strict discipline. 

Article 13　Where a mentally disordered person commits an act against the administration of public security at the time when he
is unable to recognize or control his own conduct, he shall not be penalized, but his guardian shall be instructed to keep a strict
guard on him and to subject him to medical treatment. Where an intermittently insane person commits an act against the administration
of public security while in normal mental condition, he shall be penalized. 

Article 14　Where a blind or deaf-mute person commits an act against the administration of public security, he may be give a relatively
light or mitigated penalty, or shall not be penalized. 

Article 15　Where an intoxicated person commits an act against the administration of public security, he shall be penalized. 

Where an intoxicated person in a drunken state may cause danger to himself or threatens another person’s personal safety or property
or public safety, protective measures shall be taken to restrain him until he sobers up. 

Article 16　Where a person commits two or more acts against the administration of public security, decisions shall be made separately
but executed concurrently. Where penalties of administrative detention are concurrently executed, the maximum term of such detention
shall not exceed 20 days. 

Article 17　Where an act is committed jointly against the administration of public security, the persons committing such act shall
be penalized separately, depending on the role played by each of them in the act. 

Where a person instigates or coerces another person to act against the administration of public security, or lures the person into
such act, he shall be penalized according to the seriousness of the act committed as a result of his instigation, coercion or luring. 

Article 18　Where a unit commits an act against the administration of public security, the persons directly in charge and the other
persons directly responsible shall be penalized in accordance with the provisions of this Law. Where other laws or administrative
regulations provide that penalty shall be imposed on a unit for the same act, the unit shall be penalized in accordance with the
provisions there. 

Article 19　The penalty to be imposed on a person who commits an act against the administration of public security shall be mitigated,
or no penalty shall be imposed on him, under one of the following circumstances: 

(1) The adverse effects are extremely minor; 

(2) The person takes the initiative to remove or lessen the adverse effects, and gains the victim’s forgiveness; 

(3) The act is committed under the coercion or luring by another person; 

(4) The person surrenders himself to the police and truthfully states his illegal act to the public security organ; or 

(5) The person has performed meritorious service. 

Article 20　Under one of the following circumstances, a heavier penalty shall be imposed on a person who commits an act against
the administration of public security: 

(1) The adverse effects relatively serious; 

(2) The person instigates or coerces another person to commit an act against the administration of public security, or lures the
person into such act; 

(3) The person retaliates against the reporter, accuser, informant or witness; or 

(4) The person has been subjected to penalty for his act against the administration of public security within the past six months. 

Article 21　Under one of the following circumstances, the penalty of administrative detention shall not be executed against the
person who has committed an act against the administration of public security, although such a penalty should be imposed on him/
her according to the provisions of this Law: 

(1) The person has attained to the age of 14 but not to the age of 16; 

(2) The person has attained to the age of 16 but not to the age of 18, and such act is committed for the first time; 

(3) The person is over 70 years old; or 

(4) The person is pregnant or breast-feeds her own baby who is not one year old. 

Article 22　Where an act committed against the administration of public security is not discovered by the public security organ
within six months, the person committing such act shall no longer be penalized. 

The period of time specified in the preceding paragraph shall be counted from the date the act is committed against the administration
of public security; and if such act is continual or continuing, the period of time shall be counted from the date the act ends. 

Chapter III　Acts Against the Administration of Public Security and Penalties 

Section 1　Acts Disturbing Public Order and Penalties 

Article 23　A person who commits one of the following acts shall be given a warning or be fined not more than RMB 200 yuan; and
if the circumstances are relatively serious, he shall be detained for not less than 5 days but not more than 10 days and may, in
addition, be fined not more than 500 yuan: 

(1) disturbing the order of government departments, public organizations, enterprises or institutions, thus making it impossible
for work, production, business operation, medical care, teaching or scientific research to go on normally but not having caused serious
losses; 

(2) disturbing the public order at stations, ports, wharves, airports, department stores, parks, exhibition halls or other public
places; 

(3) disturbing the public order on board of buses, trolleybuses, trains, ships, aircrafts and other means of public transportation; 

(4) illegally intercepting or forcibly boarding or holding on to motor vehicles, ships, aircrafts and other means of public transportation,
thus hampering the normal operation of the means of public transportation; or 

(5) disrupting the order of elections conducted according to law. 

Where the acts mentioned in the preceding paragraphs are committed by a crowd, the ringleader shall be detained for not less than
10 days but not more than 15 days and may, in addition, be fined not more than 1,000 yuan. 

Article 24　A person who commits one of the following acts, thus disturbing the order of such large-scale activities of a mass character
as cultural and sports activities, shall be given a warning or be fined not more than 200 yuan; and if the circumstances are serious,
he shall be detained for not less than 5 days but not more than 10 days and may, in addition, be fined not more than 500 yuan: 

(1) forcibly entering the arena; 

(2) setting off fireworks, firecrackers or other articles in the arena in violation of regulations; 

(3) displaying such articles as humiliating slogans and streamers; 

(4) joining with other persons in attacking a referee, player or any other worker; 

(5) throwing odds and ends into the arena and turning a deaf ear to the order to stop; or 

(6) other acts disturbing the order of large-scale mass activities. 

A person on whom the penalty of detention is imposed because he disturbs the order of a sports competition may, at the same time,
be ordered not to enter a stadium or gymnasium to watch a competition of the same sport within 12 months; if he enters a stadium
or gymnasium in violation of the order, he shall be forcibly brought out of the spot. 

Article 25　A person who commits one of the following acts shall be detained for not less than 5 days but not more than 10 days
and may, in addition, be fined not more than 500 yuan; and if the circumstances are relatively minor, he shall be detained for not
more than 5 days or be fined not more than 500 yuan: 

(1) intentionally disturbing public order by spreading rumors, making false reports of dangerous situations and epidemic situations
or raising false alarms or by other means; 

(2) disturbing public order by putting in fake hazardous substances such as explosive, toxic, radioactive and corrosive substances
or pathogens of infectious diseases; or 

(3) disturbing public order by threatening to set fire, set off explosions, or put in hazardous substances. 

Article 26　A person who commits one of the following acts shall be detained for not less than 5 days but not more than 10 days
and may, in addition, be fined not more than 500 yuan; and if the circumstances are relatively serious, he shall be detained for
not less 10 than days but not more than 15 days and may, in addition, be fined not more than 1,000 yuan: 

(1) gang-fighting; 

(2) chasing or intercepting another person; 

(3) forcibly taking and obstinately seizing, or willfully damaging and occupying public or private property; or 

(4) other provocative acts. 

Article 27　A person who commits one of the following acts shall be detained for not less than 10 days but not more than 15 days
and may, in addition, be fined not more than 1,000 yuan; and if the circumstances are relatively minor, he shall be detained for
not less than 5 days but not more than 10 days and may, in addition, be fined not more than 500 yuan: 

(1) organizing, instigating, coercing, inducing or inciting another person to engage in activities of cults, superstitious sects,
or secret societies, or making use of cults, superstitious sects, secret societies, or superstitious activities to disturb social
order and harm the health of another people; or 

(2) disturbing social order and harming the health of another person by masquerading under the name of religion or qigong. 

Article 28　A person who, in violation of State regulations, intentionally interferes with the normal operation of the radio business,
or brings about harmful interference with the normal operation of radio stations and refuses to take effective measures to eliminate
such interference after the competent department points out the fact, shall be detained for not less than 5 days but not more than
10 days; and if the circumstances are serious, he shall be detained for not less than 10 days but not more than 15 days. 

Article 29　A person who commits one of the following acts shall be detained for not more than five days; and if the circumstances
are relatively serious, he shall be detained for not less than 5 days but not more than 10 days: 

(1) in violation of State regulations, invading a computer information system, which causes harm to the system; 

(2) in violation of State regulations, deleting, changing, increasing or interfering with the functions of a computer information
system, which makes it impossible for the system to operate normally; 

(3) in violation of State regulations, deleting, changing or increasing the stored, processed or transmitted data and the application
program of a computer information system; or 

(4) intentionally making up or transmitting such destructive programs as computer virus, which adversely affects the normal operation
of a computer information system. 

Section 2　Acts Impairing Public Security and Penalties 

Article 30　A person who, in violation of State regulations, manufactures, buys, sells, stores, transports, mails, carries, uses,
provides or disposes of hazardous substances such as explosive, toxic, radioactive and corrosive substances or pathogens of infectious
diseases shall be detained for not less than 10 days but not more than 15 days; and if the circumstances are relatively minor, he
shall be detained for not less than 5 days but not more than 10 days. 

Article 31　A person who fails to report, as required by relevant regulations, when such hazardous substances as explosive, toxic,
radioactive and corrosive substances or pathogens of infectious diseases are stolen, robbed or lost shall be detained for not more
than five days; and if he intentionally conceals the fact, he shall be detained for not less than 5 days but not more than 10 days. 

Article 32 A person who illegally carries such implements under control according to State regulations as firearms and ammunition,
or crossbows and daggers shall be detained for not more that five days and may, in addition, be fined not more than 500 yuan; and
if the circumstances are relatively minor, he shall be given a warning or be fined not more than 200 yuan. 

A person who illegally carries such implements under control according to State regulations as firearms and ammunition, or crossbows
and daggers to a public place or aboard a public transportation means shall be detained for not less than 5 days but not more than
10 days and may, in addition, be fined not more than 500 yuan. 

Article 33　A person who commits one of the following acts shall be detained for not less than 10 days but not more than 15 days: 

(1) stealing or destroying oil or gas pipe-line installations, electric power and telecommunications facilities, radio and TV facilities,
and water-conservancy and flood-control engineering facilities, or such public utilities as ones for hydrological monitoring, hydrographic
survey, meteorological monitoring and weather forecast, environmental monitoring, geological monitoring and seismologic monitoring; 

(2) moving to another place or destroying boundary tablets and markers of the national border and other boundary markers and installations,
or marking installations of territorial land and waters; or 

(3) conducting illegal activities affecting the alignment of the national border (frontier) line, or constructing installations which
hampers national border (frontier) administration. 

Article 34　A person who steals, damages or moves to another place without permission aviation facilities in use, or forcibly enters
the control cabin of an aircraft shall be detained for not less than 10 days but not more than 15 days. 

A person who uses implements or tools aboard an aircraft in use, which may impair the normal function of the navigation system, and
turns a deaf ear to dissuasions shall be detained for not more than 5 days or be fined not more than 500 yuan. 

Article 35　A person who commits one of the following acts shall be detained for not less than five days but not more than 10 days
and may, in addition, be fined not more than 500 yuan; and if the circumstances are relatively minor, he shall be detained for not
more than 5 days or be fined not more than 500 yuan: 

(1) stealing, destroying or moving to another place without permission railway facilities, equipment, rolling stock appendages or
safety markers; 

(2) placing obstacles on railway lines, or intentionally throwing things to trains; 

(3) digging holes or quarrying and taking sand along railway lines, on bridges or in culverts; or 

(4) privately setting up road junctions or level crossings on railway lines. 

Article 36　A person who enters railway shelter networks without permission or walks, sits or lies down on railway lines, or rushes
across railway lines when a train is approaching, which endangers traffic safety, shall be given a warning or be fined not more than
200 yuan. 

Article 37　A person who commits one of the following acts shall be detained for not more than five days or be fined not more than
500 yuan; and if the circumstances are serious, he shall be detained for not less than 5 days but not more than 10 days and may,
in addition, be fined not more than 500 yuan: 

(1) installing or using electrified wire-nettings without permission, or installing or using them at variance with the regulations
on safety; 

(2) failing to place covers, fences or warning signs for ditches, wells, ridges and holes when engaging in construction at places
where vehicles and pedestrians pass, or intentionally destroying or moving to another place the covers, fences or warning signs;
or 

(3) stealing or destroying such public utilities as well covers on road surfaces and lighting facilities. 

Article 38　Where an accident endangering safety may occur during such large-scale mass activities as cultural and sports activities
held in violation of relevant regulations, such activities shall be ordered to stop, and the participants shall be immediately evacuated;
the organizer shall be detained for not less than 5 days but not more than 10 days and shall, in addition, be fined not less than
200 yuan but not more than 500 yuan; and if the circumstances are relatively minor, he shall be detained for not more than five days
or be fined not more than 500 yuan. 

Article 39　Where the manager of a hotel, restaurant, cinema, theater, entertainment center, sports ground, exhibition hall or other
places for public activities violates regulations on safety, so that an accident endangering safety may occur at such a place, and
refuses to rectify after a public security organ orders him to do so, he shall be detained for not more than five days. 

Section 3　Acts Infringing upon Rights of the Person and of Property and Penalties 

Article 40　If a person commits one of the following acts, he shall be detained for not less than 10 days but not more than 15 days
and shall, in addition, be fined not less than 500 yuan but not more than 1,000 yuan; and if the circumstances are relatively minor,
he shall be detained for not less than 5 days but not more than 10 days and shall, in addition, be fined not less than 200 yuan but
not more than 500 yuan: 

(1) organizing or coercing persons who have not attained to the age of 16 or who are disabled to give terrifying or inhumane performances,
or luring such persons into giving such performances; 

(2) forcing another person to work by means of violence or threat or other means; or 

(3) illegally restricting another person’s freedom of the person, illegally breaking into another person’s house or illegally
making a body search of another person. 

Article 41　A person who coerces another person to go begging, lures such person into begging or uses the person in begging shall
be detained for not less than 10 days but not more than 15 days and may, in addition, be fined not more than 1,000 yuan. 

A person who continually pesters or forcibly begs from another person or begs by other irritating means shall be detained for not
more than five days or be given a warning. 

Article 42　A person who commits one of the following acts shall be detained for not more than five days or be fined not more than
500 yuan; and if the circumstances are relatively serious, he shall be detained for not less than 5 days but not more than 10 days
and may, in addition, be fined not more than 500 yuan: 

(1) writing letters of intimidation or threatening the personal safety of another person by other means; 

(2) openly humiliating another person or slandering another person by fabricating stories; 

(3) framing-up another person by fabricating stories in an attempt to make the person subject to criminal investigation or to penalty
for administration of public security; 

(4) threatening, humiliating or beating up a witness or his close relative or retaliating against either of them; 

(5) repeatedly dispatching pornographic, humiliating, intimidating or other information to disturb the normal life of another person;
or 

(6) peeping, secretly taking photos, eavesdropping, or spreading the privacy of another person. 

Article 43　A person who beats up another person, or intentionally hurts the body of another person shall be detained for not less
than 5 days but not more than 10 days and shall, in addition, be fined not less than 200 yuan but not more than 500 yuan; and if
the circumstances are relatively minor, he shall be detained for not more than five days or be fined not more than 500 yuan. 

A person who commits one of the following acts shall be detained for not less than 10 days but not more than 15 days and shall, in
addition, be fined not less than 500 yuan but not more than 1,000 yuan: 

(1) gang-fighting and hurting another person; 

(2) beating up and hurting a disabled person, pregnant woman, or a person who has not attained to the age of 14 or who is over 60
years old; or 

(3) beating up and hurting another person for more than two times, or beating up and hurting more than two persons once. 

Article 44　A person who molests another person or intentionally exposes his/her body in a public place, if the circumstances are
abominable, shall be detained for not less than 5 days but not more than 10 days; if a person molests a mentally disabled person,
or a person suffering mental disorder, or a person who has not attained to the age of 14, or commits such act with other serious
circumstances, he shall be detained for not less than 10 days but not more than 15 days. 

Article 45　A person who commits one of the following acts shall be detained for not more than five days or be given a warning: 

(1) maltreating a family member, who demands handling of the matter; or 

(2) abandoning a supported person who can not look after himself. 

Article 46　A person who forcibly buys or sells commodities, forces another person to provide services or to accept services shall
be detained for not less than 5 days but not more than 10 days and shall, in addition, be fined not less than 200 yuan but not more
than 500 yuan; and if the circumstances are relatively minor, he shall be detained for not more than five days or be fined not more
than 500 yuan. 

Article 47　A person who incites national hatred or national discrimination, or publishes contents about national discrimination
or humiliation in publications or computer information networks shall be detained for not less than 10 days but not more than 15
days and may, in addition, be fined not more than 1,000 yuan. 

Article 48　A person who claims under false pretences, hides, destroys, discards, stealthily opens or illegally examines the mail
of another person shall be detained for not more than five days or be fined not more than 500 yuan. 

Article 49　A person who steals, defrauds, forcibly seizes, openly robs, racketeers or intentionally destroys public or private
property shall be detained for not less than 5 days but not more than 10 days and may, in addition, be fined not more than 500 yuan;
and if the circumstances are relatively serious, he shall be detained for not less than 10 days but not more than 15 days and may,
in addition, be fined not more than 1,000 yuan. 

Section 4　Acts Impeding Social Administration and Penalties 

Article 50　A person who commits one of the following acts shall be given a warning or be fined not more than 200 yuan; and if the
circumstances are serious, he shall be detained for not less than 5 days but not more than 10 days, and may, in addition, be fined
not more than 500 yuan: 

(1) refusing to carry out the decision or order issued according to law by the people’s government in a state of emergency; 

(2) obstructing the staff member of a government department from performing his duties according to law; 

(3) obstructing the passage of such vehicles as fire engines, ambulances, engineering emergency trucks and patrol wagons on emergency
duties; or 

(4) forcibly breaking through a warning belt or area set up by a public security organ. 

A person who obstructs the people’s police from performing their duties according to law shall be given a heavier penalty. 

Article 51　A person who pretends to be a staff member of a government department or uses another false identity to practice fraud
shall be detained for not less than 5 days but not more than 10 days and may, in addition, be fined not more than 500 yuan; and

LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING DBS BANK (HONG KONG) LIMITED TO ESTABLISH SUZHOU BRANCH

Letter of China Banking Regulatory Commission concerning Approving DBS Bank (Hong Kong) Limited to Establish Suzhou Branch

DBS Bank (Hong Kong) Limited,

The letter which was signed by Wang Xipei, the person-in-charge of the preparatory establishment team of Suzhou Branch, and the related
documents concerning the establishment of Suzhou Branch have been received.

Your bank is hereby approved to establish Suzhou Branch whose name is DBS Bank (Hong Kong) Limited Suzhou Branch and whose address
is Rooms 1b, 2, 3, 5 of the 7th floor of International Tower, No. 2 of Suhua Lu, Suzhou Industrial Park, Suzhou City according to
the Regulation of the People’s Republic of China on the Administration of Foreign-funded Financial Institutions (Order No. 340 of
the State Council, hereinafter referred to as the Regulation) and the Detailed Rules for the Implementation of the Regulation of
the People’s Republic of China on the Administration of Foreign-funded Financial Institutions (Order No. 4,2004 of China Banking
Regulatory Commission, hereinafter referred to as the Detailed Rules). Ang Mob Chuan is approved to have the qualifications as the
president of this Branch. The working capital of this Branch is in convertible currencies which is equivalent to 200 million Yuan.
According to Article 32 of the Detailed Rules, this Branch may trade in the foreign exchange business to various clients under the
following the scope: pooling public deposits, granting short term, medium-term and long-term loans, transacting acceptance and discount
of negotiable instruments, buying and selling government bonds and financial bonds, buying and selling non-stock negotiable instruments
denominated in a foreign currency, providing services on letter of credit and guaranties, transacting domestic and overseas settlements,
buying and selling foreign currencies, buying and selling foreign currencies on a commissioned basis, converting foreign currencies,
inter-bank funding, bank card business, safety-deposit box, providing credit-standing investigation and consultation services, as
well as other business upon the approval of China Banking Regulatory Commission.

Before going into the business by Suzhou Branch, your bank shall go through the related formalities according to this Regulation and
the Detailed Rules.

China Banking Regulatory Commission

March 13, 2006

 
China Banking Regulatory Commission
2006-03-13

 



SUPPLEMENTARY CIRCULAR OF THE MINISTRY OF FINANCE ON PRINTING AND DISTRIBUTING THE MEASURES FOR THE PAYMENT OF FEES FOR TAX-FREE COMMODITY FRANCHISES

the Ministry of Finance

Supplementary Circular of the Ministry of Finance on Printing and Distributing the Measures for the Payment of Fees for Tax-free Commodity
Franchises

Cai Qi [2006] No. 70

To the Ministry of Foreign Affairs, the General Administration of Civil Aviation, the Ministry of Communications, the Ministry of
Railways, China International Travel Service Head Office, China National Service Corporation for Chinese Personnel Working Abroad,
China Travel Service (Group) Corporation, Shenzhen State-owned Duty Free (Group) Limited Corporation, Zhuhai Duty Free (Group) Limited
Corporation, Beijing Capital International Airport and the tax-free stores thereof, Shanghai Pudong International Airport and the
tax-free stores thereof, China Ocean Shipping Company Group and other entities engaged in the business of tax-free commodities, the
financial supervision commissioners’ offices of the Ministry of Finance of all provinces, autonomous regions, municipalities directly
under the Central Government and cities under separate state planning,

After the Notice of the Ministry of Finance on Printing and Distributing the Measures for the Payment of Fees for Tax-free Commodity
Franchises (Cai Qi [2004] No. 241, hereinafter referred to as the Measures) was promulgated, the provisions on the payment to the
treasury have been altered. We hereby circulate a supplementary notice on the collection and payment of fees for tax-free commodity
franchises as follows:

I.

The provisions of in the former Measures – “An enterprise which undertakes the business of tax-free commodities shall pay to the State
a franchise fee of 1% of its annual sales incomes (volumes) as generated from its business operations of tax-free commodities” –
shall be revised as “An enterprise which undertakes the business of tax-free commodities shall pay to the State a franchise fee of
1% of its annual sales incomes as generated from its business operations of tax-free commodities”.

II.

The fees for tax-free commodity franchises shall be paid to and collected by the financial supervision commissioners’ office of the
Ministry of Finance dispatched at the locality of the enterprise. The enterprise that engages in the business of tax-free commodities
shall submit annual report to the local financial supervision commissioners’ office.

III.

As the Notice of the Ministry of Finance on the Relevant Issues about the Income Collection Management System of Financial Supervision
Commissioners’ Offices (No. 365 [2005] of the Ministry of Finance) and the relevant provisions prescribe, the fees for tax-free commodity
franchises shall be directly paid to the treasury, and the financial supervision commissioners’ offices in all regions shall issue
the Common Forms for the Payment of Non-tax Incomes, and directly turn over the fees paid by the payers to the special payment account
of the central treasury. The budgetary item of the fees for tax-free commodity franchises shall be the “Item 7140 of other incomes”.

It is hereby notified.

Ministry of Finance

March 20, 2006

 
the Ministry of Finance
2006-03-20

 



ADMINISTRATIVE MEASURES FOR THE EXAMINATION AND APPROVAL OF PERMANENT REPRESENTATIVE OFFICES OF FOREIGN AIR TRANSPORT ENTERPRISES

General Administration of Civil Aviation of China

Order of the General Administration of Civil Aviation of China

No.165

The Administrative Measures for the Examination and Approval of Permanent Representative Offices of Foreign Air Transport Enterprises,
adopted at the executive meeting of the General Administration of Civil Aviation of China on March 31, 2006, are hereby promulgated,
and shall go into effect as of May 3, 2006.

Director General, Yang Yuanyuan

April 3, 2006

Administrative Measures for the Examination and Approval of Permanent Representative Offices of Foreign Air Transport Enterprises

Chapter I General Provisions

Article 1

In order to regulate the administration of permanent representative offices of foreign air transport enterprises (hereinafter referred
to as representative offices) and their staff members, these Administrative Measures are formulated in accordance with the Interim
Provisions of the State Council on the Administration of Permanent Representative Offices of Foreign Enterprises.

Article 2

The “representative offices” as mentioned in these Administrative Measures refers to the agencies that are set up upon approval by
foreign air transport enterprises within the territory of China and engage in the business operations.

The “chief representatives” as mentioned in these Administrative Measures refers to the principal responsible persons of the agencies;
and the “representatives” as mentioned in these Administrative Measures refers to other main staff members of the agencies.

Article 3

To apply for setting up a representative office within the territory of the People’s Republic of China, a foreign air transport enterprise
shall be approved by the General Administration of Civil Aviation of the People’s Republic of China (hereinafter referred to as the
CAAC), and go through the registration formalities at the State Administration for Industry and Commerce of the People’s Republic
of China or the authorized administrative bureau for industry and commerce of each province, autonomous region, municipality directly
under the Central Government or city under separate state planning (hereinafter referred to as the registration organ).

Article 4

A foreign air transport enterprise may not set up a representative office within the territory of the People’s Republic of China without
approval and registration, nor may it carry out any business operation concerning air transport.

Article 5

The representative offices and their staff members shall comply with the laws, regulations and rules for civil aviation of the People’s
Republic of China, and shall not damage the security of the People’s Republic of China or the social and public interests. The lawful
rights and interests of the representative offices and their staff members shall be under the protection of the laws of China.

Article 6

The CAAC shall, in accordance with the laws of the People’s Republic of China and the authorization of the State Council, implement
the administrative functions for the representative offices under its own jurisdiction.

Chapter II Establishment, Extension, Alteration and Termination of Representative Offices

Article 7

For the purpose of setting up a representative office, a foreign air transport enterprise shall comply with the basic conditions as
follows:

(1)

In accordance with the air transport treaty or the relative agreement signed between the government of the country where the foreign
air transport enterprise is located and the government of the People’s Republic of China, the foreign air transport enterprise has
obtained the designated qualification for providing air transport services between two countries;

The setting up of any representative office by a foreign air transport enterprise that has not obtained the designated qualification
for providing air transport services between two countries shall be specially approved by the CAAC; and

(2)

The foreign air transport enterprise shall go through the approval formalities in accordance with these Administrative Measures.

Article 8

For the purpose of setting up a representative office, a foreign air transport enterprise shall hand in the application materials
to the CAAC in accordance with different situations:

(1)

For the purpose of setting up a representative office, a designated foreign air transport enterprise shall hand in the application
materials as follows to the CAAC:

1.

A photocopy of the business license or any other approval document issued by the CAAC;

2.

An application form signed by the legal representative of the foreign air transport enterprise, which shall indicate: the purposes
of setting up the representative office, the name of the representative office, the persons to be assigned to the representative
office (chief representative and representatives), range of business, business address, and the contact information, etc.;

3.

Letter of attorney issued by the legal representative of the foreign air transport enterprise for entrusting the chief representative
and representatives of the representative office, and the photocopies of the valid travel certificates of the chief representative
and representatives; and

4.

Registration Forms for the Staff Members of Representative Offices of Foreign Air Transport Enterprises in duplicate filled by the
chief representative and representatives.

(2)

For the purpose of setting up a representative office, a non-designated foreign air transport enterprise shall hand in the application
materials as follows to the CAAC:

1.

A photocopy of the relative agreement signed between the authorities of the country where the foreign air transport enterprise is
located or the foreign air transport enterprise and the CAAC;

2.

An application form signed by the legal representative of the foreign air transport enterprise, consisting of: the brief information
about the enterprise, the purposes for setting up the representative office, the name of the representative office, the persons to
be assigned to the representative office (chief representative and representatives), range of business, business address, and the
contact information, etc.;

3.

The certificate (duplicate) on lawful business initiation issued by the authorities of the country where the foreign air transport
enterprise is located;

4.

Letter of attorney issued by the legal representative of the foreign air transport enterprise for entrusting the chief representative
and representatives of the representative office, and the photocopies of the valid travel certificates of the chief representative
and representatives; and

5.

Registration Forms for the Staff Members of Representative Offices of Foreign Air Transport Enterprises in duplicate filled by the
chief representative and representatives.

Article 9

The CAAC shall conduct the applications put forward by the applicants in accordance with the conditions as follows:

(1)

If there is any error in the application materials that can be corrected on the spot, the CAAC shall allow the applicant to make corrections
on the spot;

(2)

If the application materials are incomplete or inconsistent with statutory forms, all the contents that need to be corrected once
and for all shall be informed of the applicants by the CAAC within 5 days, . If the CAAC fails to do so within the aforesaid time
limit, it shall be considered to have accepted the application materials as of the day when it receives them; and

(3)

The CAAC shall accept the application, in case the application materials are complete and consistent with statutory forms, or all
the corrected application materials have been handed in by the applicant as required.

Article 10

The CAAC shall, within 20 days as of the date of acceptance, make a decision to approve or disapprove the setting up of a representative
office. If it fails to make a decision within 20 days, the time limit may be extended to another 10 days upon approval of its principal,
and it shall inform the applicant of the reasons for the extension .

If the CAAC makes a decision on approval of the setting up of the representative office, it shall issue an approval certificate to
the applicant within 10 days as of the day when the decision is made; if it makes a decision on disapproval of the setting up of
the representative office, it shall inform the applicant of this and make an explanation on the reasons for the disapproval.

Article 11

After an application of a foreign air transport enterprise for setting up a representative office is approved, this representative
office shall go through the registration formalities at the registration organ in accordance with the relative provisions. If it
fails to do so within the aforesaid time limit, the approval certificate shall be invalidated automatically.

Article 12

The valid time limit of the approval document on the representative office of a designated foreign air transport enterprise shall
accord with that of the business license issued by the CAAC. The valid time limit of the representative office of a non-designated
foreign air transport enterprise shall generally be 3 years calculated as of the day when the CAAC issues the approval certificate.
If the valid time limit expires and needs to be extended, the foreign air transport enterprise shall, 45 days in advance, submit
an application to the examination and approval organ, and go through the formalities for the extension.

Article 13

For the purpose of applying for an extension, a representative office shall submit the application materials in accordance with different
situations as follows:

(1)

A designated foreign air transport enterprise shall hand in the materials as follows:

1.

A photocopy of the valid business license or any other approval document issued by the CAAC;

2.

An application form for extension signed by the legal representative of the enterprise; and

3.

The photocopies of the approval certificate and the registration certificate of the permanent representative office of the enterprise.

(2)

A non-designated foreign air transport enterprise shall submit the following materials:

1.

A photocopy of the relative agreement signed between the authorities of the country where the foreign air transport enterprise is
located or the foreign air transport enterprise and the CAAC;

2.

An application form for extension signed by the legal representative of the enterprise; and

3.

A photocopy of the approval document and the registration certificate of the permanent representative office of the enterprise.

Article 14

The valid extension time limit of an approval document on the representative office of a designated foreign air transport enterprise
shall accord with that of the business license issued by the CAAC. The valid extension time limit of an approval document for the
representative office of a non-designated foreign air transport enterprise shall generally be 3 years. After an application for extension
handed in by a representative office is approved, the CAAC shall issue a certificate on approval of the extension, and the representative
office shall go through the registration formalities for the extension in accordance with the relative provisions.

Article 15

If a foreign air transport enterprise applies for changing the name of its representative office, replacing or adding the chief representative
or representatives, altering the business range or business address of its representative office, it shall hand in an application
form signed by the legal representative of the enterprise and the relative materials about the matter to be altered to the CAAC.

An application form for changing the business address within the same city may be signed by the chief representative of the representative
office.

Article 16

After an application for alteration is approved, the CAAC shall issue a certificate on approval of the alteration, and the representative
office shall go through the registration formalities in accordance with the relative provisions.

Article 17

If a representative office does not hand in an application for extension after the expiration of the term of dispatch, its original
approval certificate shall be cancelled by the CAAC.

If a foreign air transport enterprise cancels a representative office before the expiration of the valid time limit, the legal representative
of this air transport enterprise shall sign a notification on cancellation of the representative office 30 days before the termination,
and a photocopy of the original approval document shall be handed in to the CAAC for an archive.

Article 18

The name of a representative office shall be ascertained in the pattern of “country + name of the enterprise + name of the city +
representative office”.

Article 19

An application form for establishing, extending, altering or canceling a representative office or a letter of attorney for the chief
representative or any representative shall be written in Chinese; and if it is written in any other language, an enclosure of Chinese
translation thereof shall be followed. If any other application material is written in the language other than Chinese, an enclosure
of Chinese translation thereof shall be followed. For the legal force of the relative documents or materials, the Chinese version
thereof shall prevail

Chapter III Administration of Chief Representatives and Representatives

Article 20

A chief representative or representative of a representative office shall have the qualifications as follows:

(1)

A foreign citizen with a valid passport (excluding foreign students in China);

(2)

A Chinese citizen who is qualified for long-term residence abroad;

(3)

A citizen from Hong Kong, Macao or Taiwan holding a valid certificate; and

(4)

In case a foreign air transport enterprise employs a Chinese citizen to be the chief representative or representative of its representative
office (excluding the Chinese citizens mentioned in Paragraph 2 of this Article), it shall go through the approval formalities in
accordance with the relative laws and regulations of the People’s Republic of China.

Article 21

A foreign chief representative or representative of a representative office shall, after entering into the territory of China, acquire
an employment permit on the basis of the strength of his/her occupation visa and other relative certificates; if he/she has no occupation
visa, he shall acquire an occupation visa and an employment permit on the basis of the strength of a Registration Certificate for
the Permanent Representative Offices of Foreign Air Transport Enterprises and a Work Certificate for the Permanent Representative
Offices of Foreign Air Transport Enterprises. If the country where the foreign air transport enterprise is located has reached an
agreement on mutual exemption of visas with China, he/she shall go through the formalities in accordance with the agreement.

Article 22

For the purpose of applying for changing the chief representative of a representative office, the foreign air transport enterprise
shall hand in the materials as follows to the CAAC:

(1)

An application form signed by the legal representative of the foreign air transport enterprise;

(2)

A letter of attorney signed by the legal representative of the foreign air transport enterprise;

(3)

A Registration Form for the Staff Members of Representative Offices of Foreign Air Transport Enterprises in duplicate filled by the
person who is to be appointed; and

(4)

A photocopy of the valid travel certificate of the person who is to be appointed.

For the purpose of applying for changing a representative, the representative office of a foreign air transport enterprise shall hand
in the materials as follows to the CAAC:

(1)

An application form signed by the chief representative of the representative office of the foreign air transport enterprise;

(2)

A letter of attorney signed by the legal representative of the foreign air transport enterprise;

(3)

A Registration Form on the Staff Members of Representative Offices of Foreign Air Transport Enterprises in duplicate filled by the
person who is to be appointed; and

(4)

A photocopy of the valid travel certificate of the person who is to be appointed.

Chapter IV Supervision and Administration of Representative Offices

Article 23

In accordance with the Interim Provisions on the Administration of Permanent Representative Offices of Foreign Enterprises, these
Administrative Measures and other relative laws and regulations, the CAAC shall administer, supervise and inspect the business operations
of the representative offices of foreign air transport enterprises jointly with the relevant departments.

Article 24

A foreign air transport enterprise shall undertake the legal liabilities for all the business operations that are implemented by its
representative offices within the territory of the People’s Republic of China.

Article 25

If a representative office violates the laws or regulations of the People’s Republic of China or these Administrative Measures, the
CAAC shall impose administrative punishment on it under its jurisdiction and in accordance with the severity of the circumstances.

Chapter V Supplementary Provisions

Article 26

These Administrative Measures by analogy shall apply to the applications of foreign air transport enterprises for assigning permanent
representatives to the People’s Republic of China .

The applications of foreign air transport services security enterprises for setting up representative offices within or assigning
permanent representatives to the People’s Republic of China shall be governed by these Administrative Measures by analogy.

Article 27

The time limits prescribed in these Administrative Measures shall be calculated with the working days, excluding official holidays.

Article 28

These Administrative Measures shall go into effect 30 days after the date of promulgation. The Circular on Implementing the Interim
Provisions on the Administration of Permanent Representative Offices of Foreign Enterprises (Min Hang Ji [80] No. 399) prevailed
on December 4, 1980 shall be abolished at the same time.



 
General Administration of Civil Aviation of China
2006-04-03

 






CIRCULAR OF PBC, CBRC AND SAFE ON PROMULGATING THE INTERIM MEASURES FOR THE ADMINISTRATION OF COMMERCIAL BANKS PROVIDING OVERSEAS FINANCIAL MANAGEMENT SERVICES

People’s Bank of China, China Banking Regulatory Commission, State Administration of Foreign Exchange

Circular of PBC, CBRC and SAFE on Promulgating the Interim Measures for the Administration of Commercial Banks Providing Overseas
Financial Management Services

Yin Fa [2006] No. 121

April 17, 2006

To Shanghai Head Office of the People’s Bank of China, all branches and business management departments and the central sub-branches
of the provincial capital cities, the central sub-branches of Dalian, Qingdao, Ningbo, Xiamen and Shenzhen, the banking regulatory
bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated
in the state plan, the branches and foreign exchange departments of the State Administration of Foreign Exchange of all provinces,
autonomous regions and municipalities directly under the Central Government, the branches of the State Administration of Foreign
Exchange of Shenzhen, Dalian, Qingdao, Xiamen and Ningbo, all wholly state-owned commercial banks and joint-stock commercial banks,

For the purpose of advancing the convertibility of Renminbi capital accounts in an orderly and controllable way, meeting the reasonable
demands of domestic institutions and individuals for financial investments and asset management abroad, and promoting the balance
of international payments, the People’s Bank of China, China Banking Regulatory Commission and State Administration of Foreign Exchange
have jointly formulated the Interim Measures for the Administration of Commercial Banks Providing Overseas Financial Management Services,
which are hereby promulgated. Please implement them accordingly.

All branches and business management departments of the People’s Bank of China shall transmit it to the commercial banks and foreign
capital banks in the cities within their respective jurisdictions immediately after receipt of the present Notice.

Appendix: The Interim Measures for the Administration of Commercial Banks Providing Overseas Financial Management Services Appendix:Interim Measures for the Administration of Commercial Banks Providing Overseas Financial Management Services

Chapter I General Provisions

Article 1

For the purpose of regulating commercial banks’ provision of overseas financial management services, the present Measures are formulated
in light of the relevant laws and administrative regulations.

Article 2

The term “overseas financial management services ” as mentioned in the present Measures shall refer to the business activities carried
out by commercial banks that are qualified for overseas financial management services and are entrusted by domestic institutions
and individual residents (except non-domestic residents, hereinafter referred to as “investors”) to make stipulated financial product
investments with the investors’ funds pursuant to the relevant requirements of the present Measures.

Article 3

The China Banking Regulatory Commission (hereinafter referred to as “the CBRC”) shall take charge of the access administration and
business administration of commercial banks’ overseas financial management services.

Article 4

The State Administration of Foreign Exchange (hereinafter referred to as “the SAFE”) shall take charge of the foreign exchange quota
administration of commercial banks’ overseas financial management services.

Article 5

The commercial bank shall accord with the laws and regulations of the state, the provisions of the state on foreign exchange administration
and industry administration when making overseas financial management investments service, and shall carry out investment activities
in accordance with the laws and regulations at the locality of the investments.

Article 6

Where a commercial bank is entrusted by a domestic individual resident to provide overseas financial management services, it shall
accord with the relevant provisions on the administration of commercial banks’ provision of personal financial management services;
where a commercial bank is entrusted by a domestic institution to provide overseas financial management services, it shall perform
the activities with reference to the relevant requirements on building up internal control rules and risk management systems as in
the administration of commercial banks’ provision of personal financial management services as well as other prudential requirements.

Article 7

A commercial bank shall take practical and effective measures to strengthen the management of relevant risks when providing overseas
financial management services.

Chapter II Management of Business Access

Article 8

The commercial bank shall apply to the CBRC for approval when intending to provide overseas financial management services.

Article 9

The commercial bank that provides overseas financial management services shall be a designated foreign exchange bank, which shall
meet the following requirements:

(1)

It has established an effective market risk management system and has improved it;

(2)

It has sound internal control rules;

(3)

It has the capacities for and experiences in overseas investment management;

(4)

It has not been penalized by the CBRC within one year before applying for the financial management activities; and

(5)

Other prudential conditions as required by the CBRC.

Article 10

The commercial bank shall submit the following materials (in triplets) when applying to the CBRC for the qualification for providing
overseas financial management services:

(1)

A letter of application;

(2)

Relevant rules on internal control and risk management;

(3)

Draft of the custody agreement; and

(4)

Other documents as required by the CBRC.

Article 11

The CBRC shall examine and approve the commercial banks’ qualifications for overseas financial management services in accordance with
the relevant procedures and provisions on administrative license.

Article 12

Where a commercial bank sells personal financial management products within the territory of China after obtaining the qualification
for overseas financial management services, the activities shall be governed by the relevant provisions of the Interim Measures for
the Administration of Commercial Banks’ Personal Financial Management Services.

Where a commercial bank sells financial management products or provides integrated financial management services to domestic institutions
after obtaining the qualification for overseas financial management services, the access administration shall be subject to the reporting
system, and the issues concerning the reporting procedures and requirements as well as management of relevant risks shall be handled
in light of the relevant provisions on the administration of personal financial management services.

Chapter III Quota of Foreign Exchange Purchased for Investment and Conversion Administration

Article 13

Where a commercial bank is entrusted by an investor to purchase foreign exchange with Renminbi to provide overseas financial management
services, it shall apply to the SAFE for the quota of foreign exchanges purchased for overseas financial management services.

Where a commercial bank is entrusted by an investor to invest in overseas financial management with the investor’s own foreign exchange,
the amount of funds under entrustment shall not be counted into the quota of foreign exchange purchased for investment as approved
by the SAFE.

Article 14

The commercial bank shall submit the following documents to the SAFE when applying for the quota of foreign exchange purchased for
overseas financial management:

(1)

A letter of application (including but not limited to the basic information on the applicant, the requested quota of foreign exchange
purchased for investment, the investment plan, etc.);

(2)

Approval document on the business qualification issued by the CBRC;

(3)

Draft of the custody agreement;

(4)

Sample of the agreement of entrustment (in standard form) to be concluded with the certain investor, which shall include the rights
and obligations of both parties, the assumption of proceeds and risks and other relevant contents; and

(5)

Other documents required by the SAFE.

The SAFE shall make a reply on approval or disapproval, and notify the applicant in written form and send a copy to the CBRC, within
20 working days as of receipt of the entire application documents.

Article 15

The commercial bank may issue to investors the overseas financial management products whose prices are marked in Renminbi within the
approved quota of purchased foreign exchange, and shall uniformly go through the formalities for the purchase of foreign exchange
for raising Renminbi funds.

Article 16

The commercial bank shall pay the investment principals and proceeds to the investors after the overseas financial management funds
are remitted to China. Where an investor purchases foreign exchange with Renminbi for investment, the commercial bank shall pay the
foreign exchange to the investor after the settlement of exchange; where an investor makes investments with foreign exchange, the
commercial bank shall transfer the foreign exchange into the investor’s original account, or may transfer the foreign exchange into
the account designated by the investor in case that the original account has been closed up.

Article 17

The quota of net foreign exchange purchased by a commercial bank for providing overseas financial management services shall not exceed
the quota of purchased foreign exchange as approved by the SAFE.

Article 18

The commercial bank shall take effective measures to hedge and cope with the foreign exchange rate risks of overseas financial management
services by making use of forward foreign exchange settlement and other business.

Chapter IV Administration of Inward and Outward Funds

Article 19

The commercial bank shall entrust another domestic commercial bank approved by the CBRC for custody business as the custodian to keep
custody of all the assets used for overseas investments when making overseas financial management investments.

Article 20

Besides the duties as prescribed by the CBRC, the custodian shall perform the following ones:

(1)

Opening the domestic custody account, the settlement account on use of overseas foreign exchange funds, and the securities custody
account on behalf of the commercial bank according to the financial management plan;

(2)

Supervising the commercial bank’s investment operation, and in case any of the commercial bank’s investment instructions violates
any law or rule, timely reporting it to the SAFE;

(3)

Preserving the relevant information such as the records on the remittance and conversion of the commercial bank’s funds, collection
and payment of foreign exchange, and flow of funds and etc. for not less than 15 years;

(4)

Making statistical reports on the balance of international payments according to the provisions;

(5)

Assisting the SAFE in inspecting the use of the commercial bank’s funds abroad; and

(6)

Other duties as prescribed by the SAFE in light of the principle of prudential supervision.

Article 21

The custodian shall submit the relevant reports according to the following requirements:

(1)

Reporting the fact to the CBRC and the SAFE within 5 working days as of opening domestic custody account, the settlement account on
use of oversea foreign exchange funds, and the securities custody account on behalf of the commercial bank;

(2)

Reporting the remittance of funds to the SAFE within 5 working days as of the day when the commercial bank remits the principal or
proceeds out or back;

(3)

Reporting the income and expenditures of the commercial bank’s domestic custody account to the SAFE within 5 working days as of the
end of each month;

(4)

Submitting the commercial bank’s statement on using foreign exchange funds abroad in the last year to the SAFE within 1 month as of
the end of each accounting year;

(5)

In case any of the commercial bank’s investment instructions violates any law or rule, timely reporting it to the CBRC and the SAFE;
and

(6)

Other reporting matters as prescribed by the CBRC and the SAFE.

Article 22

The commercial bank shall bring the approval document to conclude a custody agreement with the domestic custodian, and open a domestic
custody account after receipt of the SAFE’s approval document on the quota of purchased foreign exchange. The commercial bank shall
submit the formal custody agreement to the SAFE within 5 working days as of opening the domestic custody account.

Article 23

The scope of income of a commercial bank’s domestic custody account shall include the foreign exchange funds transferred by the commercial
bank into the said account, the investment principal and proceeds remitted from abroad and other income as prescribed by the SAFE.

The scope of expenditure of a commercial bank’s domestic custody account shall include the funds transferred into the settlement account
on use of overseas foreign exchange funds, the funds remitted back to the commercial bank, the currency conversion fee, the custody
fee, the asset management fee, various commissions and other expenditure as prescribed by the SAFE.

Article 24

In light of the principle of prudence, the domestic custodian shall select an overseas financial institution as its overseas custody
agent according to the risk management requirements and commercial practices.

The domestic custodian shall open the settlement account for the use of the commercial bank’s foreign exchange funds and the securities
custody account at the overseas custody agent, and use the said accounts for the funds settlement business and securities custody
business with overseas securities registration and settlement institutions.

Article 25

The domestic custodian and its overseas custody agent shall separately set up custody accounts for different commercial banks.

Chapter V Disclosure of Information and the Supervision and Administration

Article 26

The commercial bank shall conform to the relevant risk management provisions of the CBRC when buying overseas financial products.

The CBRC shall supervise the risks in commercial banks’ overseas financial management services in accordance with the relevant laws
and regulations.

Article 27

The commercial bank that provides overseas financial management services shall inform the investors in details and in an all-round
way of the investment plans, product features and relevant risks when selling its products, so that the investors may make their
choices independently.

Article 28

The commercial bank that provides overseas financial management services shall disclose the information on investment conditions,
investment behaviors, risk conditions and etc. to investors at regular intervals.

Article 29

The commercial bank that provides overseas financial management services shall perform the obligations of making statistical reports
on settlement and sale of foreign exchange according to the provisions.

Article 30

The SAFE may adjust the quota of commercial banks that provide overseas financial management services for purchasing foreign exchange
for investment in light of the requirements of the balance of international payments.

Article 31

The CBRC and the SAFE may require a commercial bank, a domestic custodian or an overseas custody agent to provide the relevant information
on the commercial bank’s overseas investment activities, and may make on-site inspections on the commercial bank with their supervisory
duties when necessary.

Article 32

In case a commercial bank is under any of the following circumstances, it shall report the circumstance to the CBRC and the SAFE for
archival filing within 5 working days as of the occurrence:

(1)

The custodian or the custody agent is changed;

(2)

The registered capital of the company or the structure of shareholders is changed greatly;

(3)

It has been involved in any lawsuit or severely penalized; or

(4)

Other circumstances as prescribed by the CBRC and the SAFE.

Article 33

In case a commercial bank’s domestic custodian is under any of the following circumstances, it shall report the circumstance to the
SAFE within 5 working days as of the occurrence:

(1)

Its registered capital or stock right structure is changed greatly;

(2)

It has been involved in any major lawsuit or severely penalized; or

(3)

Other matters as prescribed by the SAFE.

Article 34

Where a commercial bank or its domestic custodian violates the present Measures, it shall be given administrative penalties by the
SAFE. Where the circumstance is serious, the CBRC and the SAFE shall have the power to require the commercial bank to replace the
domestic custodian, or to revoke the commercial bank’s quota of foreign exchange for overseas financial management services. Where
an overseas custody agent refuses to provide relevant information, the CBRC and the SAFE shall have the power to demand replacement
of the overseas custody agent.

Chapter VI Supplementary Provisions

Article 35

Where a commercial bank invests in the financial products in Hong Kong Special Administrative Region or Macao Special Administrative
Region, it shall take the relevant clauses of the present Measures as reference.

Article 36

The power to interpret the present Measures shall remain with the People’s Bank of China and the CBRC.

Article 37

The present Measures shall come into force as of the date of promulgation.



 
People’s Bank of China, China Banking Regulatory Commission, State Administration of Foreign Exchange
2006-04-17

 






NOTICE OF CHINA INSURANCE REGULATORY COMMISSION ON CLARIFYING THE COMPOSITION OF COMMISSIONS OF INSURANCE SALESMEN

Notice of China Insurance Regulatory Commission on Clarifying the Composition of Commissions of Insurance Salesmen

Bao Jian Fa [2006] No. 48

All insurance regulatory bureaus and insurance companies:

After the promulgation of the Provisions on the Administration of Insurance Salesmen, some insurance companies have required this
Commission to clarity the composition of insurance salesmen’s commissions. We hereby clarify it upon deliberation that the insurance
salesmen’s commissions shall be composed of business costs and labor remuneration.

It is hereby notified.

China Insurance Regulatory Commission

April 27, 2006



 
China Insurance Regulatory Commission
2006-04-27

 






MEASURES FOR THE ISSUANCE EXAMINATION COMMITTEE OF CHINA SECURITIES REGULATORY COMMISSION

Order of China Securities Regulatory Commission

No. 31

The Measures for the Issuance Examination Committee of China Securities Regulatory Commission, which were deliberated and adopted
at the 179th executive meeting of the chairmen of China Securities Regulatory Commission on May 8, 2006, are hereby promulgated and
shall come into force as of May 9, 2006.
Shang Fulin,Chairman of China Securities Regulatory Commission

May 9, 2006

Measures for the Issuance Examination Committee of China Securities Regulatory Commission
Chapter I General Provisions

Article 1

With a view to ensuring to follow out the principles of openness, fairness and impartiality in the stock issuance examination and
improving the quality and transparency of the stock issuance examination, the present measures are formulated according to the relevant
provisions of the Securities Law of the People’s Republic of China.

Article 2

The China Securities Regulatory Commission (hereinafter referred to as the “CSRC”) establishes the Issuance Examination Committee
(hereinafter referred to as the “IEC”) which shall be subject to the present measures when examining the applications of the issuers
for stock issuance as well as the applications for the issuance of convertible company bonds and other securities as admissive by
the CSRC (hereinafter referred to as the applications for stock issuance).

Article 3

The IEC shall, according to the Company Law of the People’s Republic of China, the Securities Law of the People’s Republic of China
and other laws and administrative regulations as well as the provisions of the CSRC, conduct examination on the application documents
of the issuers for stock issuance and the preliminary examination reports of the relevant functionary departments of the CSRC.

The IEC shall vote on the applications for stock issuance by balloting, and advance examination opinions.

The CSRC shall, in light of the statutory conditions and procedures, make decisions on approving or disapproving the applications
for stock issuance.

Article 4

The IEC shall fulfill its duties through the work meeting of the IEC (hereinafter referred to as the IEC meeting).

Article 5

The CSRC shall be responsible for the routine management of the affairs of IEC and the examination and supervision over the members
of the IEC.

Chapter II Composition of the IEC

Article 6

The IEC shall comprise the professionals of the CSRC and the relevant experts outside the CSRC, who shall be appointed by the CSRC.

The number of IEC members shall be 25, among whom some may be full-time staff members. Thereto, five IEC members shall be from the
CSRC and the other 20 shall come from outside the CSRC.

The IEC shall have 5 conveners.

Article 7

The tenure of an IEC member shall be one year. The IEC member may be reappointed upon the expiration of the term for lower than 3
terms.

Article 8

An IEC member shall meet the following qualifications:

(1)

Persisting in the principles, being impartial and clean, devoting to his duties and posts, and strictly complying with the laws,
administrative regulations and rules;

(2)

Knowing well the securities and accounting business as well as the relevant laws, administrative regulations and rules;

(3)

Being proficient in the special knowledge of his profession, and enjoying a higher reputation in his practicing field;

(4)

With no records of violation of any law or discipline; and

(5)

Other requirements as considered necessarily by the CSRC.

Article 9

Under any of the following circumstances, an IEC member shall be dismissed by the CSRC:

(1)

Violating any law, administrative regulation, rule or discipline related to the work of issuance examination;

(2)

Failing to be diligent and fulfill his duties according to relevant provisions of the CSRC;

(3)

Filing an application for resignation by himself;

(4)

Failing to attend the IEC meetings without reasons for twice or more; or

(5)

Other circumstances under which, after examination, the CSRC considered that he is unsuitable for assuming the post as an IEC member.

Whether an IEC member is dismissed or not shall be not restricted by the expiration of the tenure. And after an IEC member is dismissed,
the CSRC shall elect and appoint a new IEC member in time.

Chapter III Responsibilities of the IEC

Article 10

Responsibilities of the IEC are as follows:, according to the relevant laws, administrative regulations and the provisions of the
CSRC, examining whether the applications for stock issuance meet the relevant requirements or not,; examining the relevant materials
and position papers as issued by the recommendation institutions, accounting firms, law firms, assets valuation institutions and
other securities intermediary institutions as well as the relevant personnel thereof for the stock issuance; examining the preliminary
examination reports issued by the relevant functionary departments of the CSRC and putting forward the examination opinions on the
applications for stock issuance.

Article 11

The IEC member shall attend the IEC meeting in his own name, fulfill his duties according to laws, and issue examination opinions
and exercise his voting right independently.

Article 12

The IEC member may, through the relevant functionary departments of the CSRC, consult the relevant documents in relation to the issuers,
which are necessary for fulfilling his duties.

Article 13

The IEC member shall abide by the following provisions:

(1)

Attending the IEC meetings as required, and keeping diligent and fulfilling his duties in the examination work;

(2)

Keeping the secrets of the state and the business secrets of the issuers;

(3)

Being prohibited from disclosing any content discussed in the IEC meetings, the voting condition and any other relevant information;

(4)

Being prohibited from taking advantage of the status as an IEC member or the non-public information he has accessed to when performing
his duties to seek interests for himself or any other people directly or indirectly;

(5)

Being prohibited from having any interest with any applicant, from directly or indirectly accepting any gift such as money, goods
or any other benefits offered by the issuer or any other related entity or individual, from holding stocks whose issuance applications
are subject to his examination, and from privately contacting any of the issuers or other related entities or individuals;

(6)

Being prohibited from colluding with any other IEC member to cast votes or inducing any other IEC member to cast votes; or

(7)

Other relevant provisions of the CSRC.

Article 14

The IEC member is in duty bound to report to the CSRC any issuer or any other related entity or individual that imposes influence
on him by illicit means.

Article 15

Under any of the following circumstances when examining the application documents for stock issuance, the IEC member shall offer
to withdraw in time:

(1)

The IEC member or any of his relatives is the director (including the independent director, the same hereinafter), supervisor, manager
or any other senior management member of the issuer or the recommendation institution;

(2)

The IEC member, any of his relatives or the entity where he works holds the shares of the issuer, which may influence his fair fulfillment
of the duties;

(3)

The IEC member or the entity where he works has provided services such as recommendation, underwriting, auditing, evaluation, legal
services, consultation and etc to the issuer, during the past two years, which may hamper his fair fulfillment of his duties;

(4)

The company in which the IEC member or any of his relatives is a director, supervisor, manager, or other senior management member
has any trade competition with the issuer or the recommendation institution, which may affect his fair fulfillment of the duties
after verification;

(5)

Before convening an IEC meeting, the IEC member has met with the issuer being examined for this time or any other related entity
or individual, which may affect his fair fulfillment of the duties; and

(6)

Other circumstances as determined by the CSRC, which may lead to conflicts of interests, or as regarded by the IEC member that may
affect his fair fulfillment of the duties.

The “relatives” as mentioned in the preceding paragraph refer to the spouse, parents, sons or daughters, brothers or sisters of the
IEC member, the parents of his spouse, spouses of his sons or daughters, and the spouses of his brothers or sisters.

Article 16

Where an issuer and other related entities or individuals think that any IEC member has any conflict of interests or potential conflict
of interests with them, which may affect the fair fulfillment of the duties of the IEC member, they may file a written application
with the CSRC for demanding the withdrawal of the relevant IEC member and give relevant explanations, when they submit the application
documents on stock issuance to the IEC for examination.

The CSRC shall, in light of the written application filed by the issuer and other related entities or individuals, decide whether
the relevant IEC member shall withdraw.

Article 17

After an IEC member accepts an appointment, he shall promise to observe the relevant provisions and disciplinary requirements of
the CSRC on IEC members, fulfill his duties earnestly, and be subject to the examination and supervision of the CSRC.

Chapter IV IEC Meetings

Section 1 General Prescriptions

Article 18

The IEC shall conduct examination through convening IEC meetings.

Article 19

The way of open ballots shall be adopted for voting at the IEC meetings. And the votes shall include the consentient votes and negative
votes. No IEC member may waive his voting right. And the IEC members shall explain their reasons on the votes at the time of voting.

Article 20

An IEC member shall, according to the laws, administrative regulations and the provisions of the CSRC and based upon his own professional
knowledge, conduct independent, objective and fair examinations on the applications for stock issuance.

An IEC member shall, in a prudent and responsible manner, roundly examine the application documents of the issuers for stock issuance
and the preliminary examination reports issued by the relevant functionary departments of the CSRC, and shall fill in the working
paper with his personal examination opinions:

(1)

Where an IEC member has any objection to any issue that calls for the attention of IEC members in the preliminary examination report
or the examination opinions, he shall bring forward well-grounded and clear examination opinions on the relevant contents in the
working paper;

(2)

Where an IEC member thinks that the issuer has other problems than those that call for attention in the preliminary examination report,
he shall bring forward well-grounded and clear examination opinions in the working paper; and

(3)

Where an IEC member thinks that an issuer has any serious problem to be investigated and verified, which may affect his impartial
judgment, he shall bring forward well-grounded and clear examination opinions in the working paper.

An IEC member shall deliver his own examination opinions at the IEC meeting on the basis of his own working paper. Meanwhile, he shall
improve his own examination opinions according to the discussion of the meeting, and record them down in the working paper.

The IEC meeting shall, after sufficient discussion, form the examination opinion of the meeting on the application of the issuer for
stock issuance, and vote on whether or not the application of the issuer for stock issuance meets the relevant requirements.

Article 21

The convener of the IEC meeting shall, according to the relevant provisions of the CSRC, be responsible for convening the IEC meetings,
organize the IEC members to deliver their opinions or make discussions, summarize the examination opinion of the IEC, and organize
the voting and other relevant matters concerned.

After the IEC meeting is over, the IEC members attending the meeting shall sign their names for confirmation on the documents of the
meeting, including the records of the meeting, the examination opinions, the voting results and etc., and submit the working paper
at the same time.

Article 22

Before the formation of the examination opinion on the application of the issuer for stock issuance, the IEC meeting may invite the
representatives of the issuer and the recommendation representatives to the meeting to answer the inquiries of the IEC members.

Article 23

The IEC meeting shall only conduct one examination on the application of an issuer for stock issuance.

In case there is obvious disagreement between the examination opinion of the IEC meeting and the voting result, or the voting result
of the IEC meeting is apparently unjust, the CSRC may make investigation into it, and make a decision on whether or not to approve
it.

Article 24

The relevant functionary departments of the CSRC shall be responsible for organizing the IEC meeting, serving relevant examination
documents, recording down the discussions of the IEC meeting, drafting the summary of the IEC meeting, keeping the archives and other
concrete work.

Article 25

The IEC meeting may, in pursuance of the requirements of the examination work, invite other professional experts other than the IEC
members to attend the meeting and provide special consultation opinions. These experts outside the IEC have no voting rights.

Article 26

The IEC shall convene the plenary session at least once a year to summarize the examination work.

Section 2 Common Procedures

Article 27

The examinations of the IEC meeting on applications of the issuers for the public stock issuance and the applications for other securities
issuance as approved by the CSRC such as convertible company bonds shall be subject to the provisions of this section.

Article 28

The relevant functionary departments of the CSRC shall, 5 days before the IEC meeting is convened, serve the notice of the meeting,
the application documents for stock issuance and the preliminary examination report of the relevant functional departments of the
CSRC to the IEC members attending the meeting, and publicize on the website of the CSRC the name list of the issuers being examined
by the IEC, the time for the meeting, the commitment letter of the issuers as well as the name list of the IEC members attending
the meeting.

Article 29

The number of IEC members attending each IEC meeting shall be 7. If the consentient votes achieve 5, it may be deemed as a pass,
while if the consentient votes are less than 5, it will be deemed as a failure.

Article 30

Where any of the IEC members finds that there are still serious problems needed to be investigated and verified, which may affect
the impartial judgment, they may propose to suspend the voting in written form before the IEC meeting is held.

The IEC meeting shall first vote on whether or not to suspend the application for stock issuance. If there are 5 consentient votes,
the application for suspending the aforesaid stock issuance may be voted; otherwise, the IEC meeting shall examine the application
for the aforesaid stock issuance in accordance with the normal procedures.

When the application for issuance being suspended is submitted to the IEC meeting for examination once again, it shall be subject
to the examination of the original IEC in principle.

The IEC meeting can suspend the voting for the application of an issuer for stock issuance for only once.

Article 31

After the IEC meeting votes for the application of an issuer for stock issuance, the CSRC shall publicize the voting result on its
website.

The relevant functionary departments of the CSRC shall make written feedbacks to the recommenders as employed by the issuer the voting
result and the examination opinion as brought forward by the IEC meeting on the application of the issuer for stock issuance.

Article 32

Where an issuer has any major event inconsistent with the reported application documents for stock issuance after it passes the voting
of the IEC meeting on the application of the issuer for stock issuance and before the approval of the CSRC is obtained, the relevant
functionary departments of the CSRC may propose the IEC to convene an after-the-meeting IEC meeting to examine the application documents
of the issuer for stock issuance once again. The IEC members attending the after-the-meeting IEC meeting are not restricted by whether
or not they have conducted examination on the application of the issuer for stock issuance.

Section 3 Special Procedures

Article 33

The examinations of the IEC on the applications of listed companies for non-public stock issuance and the applications for other
non-public securities issuance as prescribed by the CSRC shall be subject to the provisions in this section.

Article 34

The relevant functionary departments of the CSRC shall, before an IEC meeting is convened, serve a notice of the meeting, the application
documents for stock issuance and the preliminary examination report of the relevant functionary departments of the CSRC to the IEC
members attending the meeting.

Article 35

The number of IEC members attending in each IEC meeting shall be 5. If the consentient votes achieve 3, it may be deemed as a pass,
while if the consentient votes are less than 3, it will be deemed as a failure.

Article 36

The IEC members shall not propose to suspend the voting on the applications of the listed companies for non-public stock issuance
or the applications for other non-public securities issuance as prescribed by the CSRC.

Article 37

The CSRC shall not publicize the name list of the issuers being examined at the IEC meeting, the time for the meeting, the commitment
letter of the issuers the name list of the IEC members attending the meeting or the voting result.

Chapter V Supervision over the Examination Work of the IEC

Article 38

The CSRC shall adopt an accountability system on the IEC. In case there is any obvious disagreement between the examination opinion
of the IEC meeting and the voting result, the CSRC may require all the IEC members attending the meeting to make explanations respectively.

Article 39

In case any IEC member commits any act violating the provisions of Article 13 of the present measures, or any other act in violation
of the working disciplines of the IEC such as failing to withdraw from attending the IEC meeting where he ought to do so and etc.,
the CSRC shall, in light of the severity of the circumstances, make conversation and reminding, criticize, dismiss or impose other
punishment on the member.

Article 40

The CSRC shall establish a reporting and supervising mechanism for the acts of the IEC members in violation of any law or discipline.

Where there is any clew or tip-off on an IEC member’s violation of any law or discipline, the CSRC shall make investigation into it,
and on the basis of the investigation conclusion, make conversation and reminding, criticize, dismiss or impose other punishments
on the member; in case the member is suspected of any crime, he shall be transferred to the department of justice for punishments.

Article 41

The CSRC may publicize its criticism on the IEC member through the news media.

Article 42

Where, before an IEC meeting is convened, there are evidences showing that the issuers or other relevant entities or individuals
have influenced directly or indirectly the judgment of the IEC members on the application of the issuer for stock issuance by illicit
means or disturbed the examination of the IEC members in any other form, the CSRC may suspend the examination of the IEC meeting
on the relevant issuers.

Where, after the application of an issuer for stock issuance is passed by the IEC meeting, there are evidences showing that the issuer
or other relevant entities or individuals have influenced directly or indirectly the judgment of the members of the IEC on the application
of the issuer for stock issuance by illicit means, or disturbed the examination of the IEC in any other form, the CSRC may suspend
the approval; in case the circumstances are serious, the CSRC shall not approve it.

Article 43

The recommendation institution of an issuer has the duty to urge the issuer to observe the relevant provisions of the present measures.
If the recommendation institution suborns, assists or participates in disturbing the work of the IEC, the CSRC shall not accept the
recommendation of the recommendation institution within 3 months in accordance with the relevant provisions.

Chapter VI Supplementary Provisions

Article 44

The present measures shall be implemented as of May 9, 2005. The Interim Measures for the Issuance Examination Committee of China
Securities Regulatory Commission (Order No. 16 of the CSRC) shall be abolished simultaneously.



 
China Securities Regulatory Commission
2006-05-09

 






NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT ISSUES CONCERNING TAX REFUND FOR THE EXPORT OF GOLD-CONTAINED PRODUCTS

Notice of the State Administration of Taxation on the relevant issues concerning Tax Refund for the Export of Gold-Contained Products

Guo Shui Han [2006] No. 481

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

After the distribution of the Supplementary Notice of the State Administration of Taxation on the relevant issues concerning Implementing
the Tax Exemption Policies for the Export of Gold-Contained Products (No. 10 [2006] of the State Administration of Taxation), some
regions reflect that some export products with the customs commodity code 3824909090 do not contain any gold or platinum gold and
request continuative implementation of the tax refunding (exemption) policies for the export of these products. Upon investigation,
we hereby notice of the relevant issues as follows:

I.

As for the export of the following goods fallen under the customs commodity code 3824909090, the tax refunding (exemption) policies
for export shall be continuously executed..

colored particles, diatomite, mixed refrigerant, octadecenoic acid, o/p toluene sulphonic acid, UV powder, ichthammol, sucrose fatty
acid ester, shoe curing agent, non-hexavalent chromium acid involucra passivation solution, C18-16 mellow wine, azeotrope, coating
powder, aluminum polychlorid, synthetic hectorite layer clay, lufennoron cream, vegetal polysaccharides, and chemical anchoring bolt.

II.

The present Notice shall come into force as of May 1, 2005.

The State Administration of Taxation

May 23, 2006



 
State Administration of Taxation
2006-05-23

 






MEASURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA FOR ADMINISTRATION OF THE ORIGIN OF IMPORT GOODS UNDER THE SPECIAL PREFERENTIAL TARIFF TREATMENTS

Decree of the General Administration of Customs of the People’s Republic of China

No. 149

The Measures of the Customs of the People’s Republic of China for Administration of the Origin of Import Goods under the Special Preferential
Tariff Treatments were deliberated and adopted at the Executive Meeting of the General Administration of Customs on May 30, 2006
and are hereby promulgated, and shall come into force as of July 1, 2006. Provisions of the Customs of the People’s Republic of China
on the Implementation of the Rules of Origin of Goods under Special Preferential Tariff Treatments Given by the People’s Republic
of China to the Least-developed African Countries as promulgated as Decree No. 123 by the General Administration of Customs on December
30, 2004 shall be abolished simultaneously.

Mu Xinsheng, Director of the General Administration of Customs

May 31, 2006

Measures of the Customs of the People’s Republic of China for Administration of the Origin of Import Goods under the Special Preferential
Tariff Treatments

Article 1

The present Measures are formulated in accordance with the Customs Law of the People’s Republic of China, the Regulations of the
Origin of Imports and Exports of the People’s Republic of China, rules of origin of goods under the special preferential tariff treatments
of China as well as provisions of relevant laws and administrative regulations for the purposes of correctly determining the origin
of import goods under the special preferential tariff treatments and promoting the economic and trade contacts between China and
relevant countries.

Article 2

The present Measures shall apply to the goods which are imported from the beneficiary countries (see the name list in Appendix 1)
under special preferential tariff treatments. But goods imported in bond and for home use by means of processing trade shall be excluded.
Any change in the name list of beneficiary countries shall be otherwise promulgated by the General Administration of Customs.

Article 3

If the goods are directly imported from a beneficiary country and in accordance with one of the conditions as follows, their place
of origin shall be the said beneficiary country and the corresponding special preferential tariff rates provided in the Import and
Export Tariff Regulations of the People’s Republic of China (hereinafter referred to as Tariff Regulations) shall be applied.

(1)

entirely obtained from or manufactured in the beneficiary country; or

(2)

incompletely obtained from or manufactured in the beneficiary country but where the final substantial transformation is completed.

Article 4

Goods “entirely obtained from or manufactured in the beneficiary country” as mentioned in Item (1) of Article 3 of the present Measures
refer to:

(1)

The mineral products exploited and excavated from this country;

(2)

The plants or their products harvested from this country;

(3)

The live animals borne and raised in this country;

(4)

The products obtained from the animals of this country as mentioned in Item (3) of this Article;

(5)

The products obtained from hunting or fishing in this country;

(6)

The fish and other marine products obtained from the high seas by vessels registered in this country or lawfully flying the flag of
this country;

(7)

The products obtained from processing the articles as listed in Item (6) of this Article on the processing vessels registered in this
country or lawfully flying the flag of this country;

(8)

The waste and old articles that are gathered in the course of consumption in this country and that can only be suited to recycling
of raw materials;

(9)

The waste and piecemeal materials that are generated in the course of production in this country and that can only be suited to recycling
of raw materials; or

(10)

The products obtained from processing the articles as listed in Items (1) to (9) of this Article within this country.

Article 5

Any of the following types of minor processing or treatment, no matter whetherer it is completed independently or together with the
others, may not affect the determination on whether the products are entirely obtained from or produced in a country or not:

(1)

The processing or treating carried out in order to preserve the goods during transportation or storage;

(2)

The processing or treating carried out to facilitate the loading and unloading of the goods; or

(3)

The packing, exhibiting and other types of processing or treating carried out in order to sell the goods.

Article 6

The criteria on the determination of “substantial transformation” specified in Item (2) of Article 3 of the present Measures shall
be the criterion of “the change in tariff item classification” or the criterion of “ad valorem percentage”.

(1)

The criterion of “the change in tariff item classification” means that, the tariff code in the Tariff Regulations of the raw materials
which do not originate from the beneficiary country used during the production or processing of goods in the said country is any
code other than the 4-digit tariff code of the aforesaid goods.

(2)

The criterion of “ad valorem percentage” means that, following the manufacturing and processing in the beneficiary country using materials
which do not originate from the said country, the value added portion may not be less than 40% of the resulting goods. The calculating
formula shall be:

Price of Goods * Price of Materials Not Originating from the Beneficiary Country

￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿￿ ￿￿100%￿￿0%

Price of Goods

“Price of Goods” refers to the price of FOB which, no matter what way the goods shall be transported, shall always be the price at
the final port of shipment or site.

“Price of Materials Not Originating from the Beneficiary Country” refers to the price of the materials used by the manufacturers which
do not originate from the beneficiary country, including the import costs as well as the insurance and freight for transporting them
to the port of destination or site.

The calculation of the above-mentioned “ad valorem percentage” shall comply with the universally acknowledged accounting rules as
well as the Customs Evaluation Agreement.

Article 7

The simple dilution, mix, packing, bottling, drying, assembly, classification or decoration may not be deemed as substantial transformation.
Any production or pricing measures, made by enterprises for the purpose of circumventing the present Measures, may not be deemed
as substantial transformation.

Article 8

In the determination of the origin of goods, the origin of the energy, workshops, equipment, machines and tools employed during the
production course of goods, as well as the origin of the materials that are employed during the production course but do not constitute
any component or constituent part of the goods, may not affect the determination of the origin of goods.

Article 9

The origin of the packages, packing materials and containers that are declared and uniformly classified into the same category of
the goods under the Tariff Regulations together with that of the accessories, spare parts, tools and introductory materials with
which the said goods are regularly accompanied, may not affect the determination of the origin of the goods.

Article 10

The imported goods that are to declare the special preferential tariff treatments shall be transported directly from the beneficiary
country into the territories of China without transiting a third country (region) apart from China and the beneficiary country (hereafter
referred to as a third country (region)).

As regards goods which transit a third country (region) into the territories of China, if the following conditions are satisfied,
it will be deemed as direct transportation:

(1)

merely for the geographical reason or for the need of transportation;

(2)

except for loading, unloading and other necessary work to keep the goods in good condition or for transportation, the goods haven’t
undergone any other type of processing when transiting a third country (region), and

(3)

the goods don’t enter a third country (region) for trade or consumption.

Article 11

When declaring goods under the special preferential tariff treatments, the consignee of imports shall offer the following documents
to the entry Customs:

(1)

A certificate of origin issued by an issuance institution of a beneficiary country bearing the seal of the Customs of the country
when exporting the goods (see the format in Appendix 2);

(2)

Through Bill of Lading issued by the beneficiary country or that issued by other countries (regions) as the departure station of international
through transport; and

(3)

The original invoice of the goods issued by the beneficiary country.

As regards imported goods transiting a third country (region), relevant documents that, according to the Customs of China, are necessary
to certify that the provisions specified in Item (2) of Article 10 are satisfied shall be offered.

Article 12

The certificate of origin offered by the consignee of imports to the Customs, shall be issued by an official institution of a beneficiary
country and shall be valid for a period of 180 days as of the date of issuance.

The certificate of origin shall be printed on A4 paper, and the words on the face shall be in English. A certificate of origin shall
consist of 1 original and 3 duplicates: color of the original shall be apricot cream and that of the duplicates light green. The
duplicates include the second duplicate, the third duplicate and the fourth. The second duplicate shall be prepared for the verification
where the Customs of the People’s Republic of China considers necessary, the third duplicate shall be kept by the issuance institution
of the export country and the fourth duplicate shall be kept by the exporter. When declaring the goods, the consignee of imports
shall offer the original certificate of origin and the second duplicate to the entry Customs.

The name and address of the issuance institution of the certificate of origin as well as the seal and the pattern hereof shall be
kept for record by the General Administration of Customs of the People’s Republic of China.

Article 13

When declaring the import goods, the consignee of import goods shall, on its own initiative, declare to the Customs that the relevant
goods are under the special preferential tariff and shall submit the certificate of origin bearing the seal of the Customs of the
export country. The entry Customs shall in line with files on record by the beneficiary country, verify the certificate of origin
of relevant goods, and permit the import goods to enjoy the special preferential tariff upon the strength of the valid certificate
of origin and relevant documents.

Article 14

When having any doubt about the authenticity of the certificate of origin, the General Administration of Customs of the People’s
Republic of China or its authorized institution may, via the economic and commercial counselor’s office of the embassy or consulate
of China based in the corresponding beneficiary country, require the Customs of the beneficiary country or the original issuance
institution of the certificate of origin to conduct verification, and to offer a reply within 90 days as from the day when it receives
the verification request. If the Customs of the beneficiary country or the original issuance institution of the certificate of origin
fails to offer a reply within 90 days, the goods may not enjoy the special preferential tariff treatments.

During the period of waiting for the result of verification of the certificate of origin of the beneficiary country, the entry Customs
may, at the request of the consignee of imports, release the goods after it charges a sum of security deposit equivalent to the amount
of tariff calculated under the most favored nation tariff rate applicable to the goods, and it shall handle the import procedures
in accordance with the relevant provisions and complete the corresponding statistical work of the Customs. After the Customs of the
export country or the issuance institution of the certificate of origin completes the verification, the entry Customs shall, in accordance
with the verification result, promptly handle the formalities for refunding the security deposit or converting the security deposit
to the import Customs tariff, and make correct the relevant statistic data. As for import goods on which the State place restrictions
or those suspected of being against the law, the Customs may not release the goods before the verification of the certificate of
origin comes to an end.

Article 15

The Customs shall have the obligation to maintain in confidence the trade secrets they obtained on the condition of being in compliance
with the provisions of the present Measures. Without the coonsignee’s consent, the Customs may not reveal or put these secrets into
other use, except as otherwise provided by law, administrative regulations and relevant judicial interpretation.

Article 16

Anyone who violates the present Measures shall be punished in accordance with the Customs Law of the People’s Republic of China,
and the Regulations on the Implementation of the Administrative Punishments of the Customs of People’s Republic of China and other
relevant laws and administrative regulations. If any crime is constituted, he shall be subject to the criminal liabilities according
to law.

Article 17

Definitions of the following terms as mentioned in the present Measures:

The “beneficiary country” refers to the country or region with whom China has signed exchange of notes concerning special preferential
tariff treatments.

“Customs Evaluation Agreement” refers to the Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade
1994, which serves as part of Marrakech Agreement Establishing the World Trade Organization.

The “materials” refer to components, spare parts, constituent parts, semi-assembly, etc. that have actually constituted part of another
product or has been used in the production course of another product.

The “production” refers to the ways of obtaining products, including planting, exploiting, harvesting, fishing, entrapping, hunting,
manufacturing, producing, processing or assembling of the products.

Article 18

The power to interpret the present Measures shall remain with the General Administration of Customs of the People’s Republic of China.

Article 19

The present Measures shall be implemented as of July 1, 2006. Provisions of the Customs of the People’s Republic of China on the
Implementation of the Rules of Origin of Goods under Special Preferential Tariff Treatments Given by the People’s Republic of China
to the Least-developed African Countries as promulgated as Decree No. 123 by the General Administration of Customs on December 30,
2004 shall be abolished simultaneously.

Appendix:

1. Name List of the Beneficiary Countries (Omitted)

2. Format of Certificates of Origin (Omitted)



 
The General Administration of Customs
2006-05-31

 






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

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CONSTITUTION ACT, 1982 – page 20

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CONSTITUTION ACT, 1982 – page 18

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