CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE LEVY OF STAMP TAX ON AMWAY (CHINA) CO., LTD.

Circular of the State Administration of Taxation concerning the Levy of Stamp Tax on Amway (China) Co., Ltd.

Guo Shui Han [2006] No. 749

The local taxation bureaus in each province, autonomous region, municipality directly under the Central Government and city specifically
under separate state planning:

Whereas the policy implementations of different places on the levy of stamp tax on Amway (China) Co., Ltd (hereinafter referred to
as “Amway Corporation”) are inconsistent with each other, we hereby define the relevant matters on the levy of stamp tax on Amway
Company as follows according to the Interim Regulations of the People’s Republic of China on Stamp Tax and the detailed rules for
implementation thereof:

Since no marketing business happens in the supply chain of transfer products from the production base (Guangzhou Headquarter) of
Amway Corporation to its boutique shops, the stamp tax shall be exempted.

For the sales forms that the distributors of Amway Corporation purchase products from the company and then sell to customers, as
the distributors make unique purchase of the products of Amway Corporation and then sell to customers by themselves, and they invoice
directly to customers, there forms a marketing relationship between Amway Corporation and the distributors. Amway Corporation and
its distributors shall, according to the purchase and sales contract concluded between Amway Corporation and the distributor or contractual
nature of the documents with contractual nature, calculate and pay the stamp tax at the localities of boutique shops and the distributors.

The distributors and sales agents to provide distribution services on behalf of Amway Corporation, because there only exists a relationship
of agency service not a relationship of marketing between Amway Corporation on one hand and its distributors and sales agents on
the other hand, the stamp tax shall not be levied according to any purchase and sales contract.

As all the monopoly shops specializing in directly selling products to customers, it is unnecessary to sign any purchase and sales
contract, and no taxable act of stamp tax happens, so the stamp tax shall not be levied in light of the amount of purchase and sales
or regarding the transaction documents as a purchase and sales contract.

State Administration of Taxation

August 7, 2006

State Administration of Taxation
2006-08-07

MEASURES FOR THE ADMINISTRATION ON WORK SAFETY OF COMPLETE FOREIGN AID PROJECTS (FOR TRIAL IMPLEMENTATION)

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

No. 15

The Measures for the Administration on Work Safety of Complete Foreign Aid Projects (For Trial Implementation) have been adopted upon
deliberation at the 5th executive meeting of the Ministry of Commerce of the People’s Republic of China on May 17, 2006. They are
hereby promulgated and shall enter into force as of October 1, 2006.
Minister of the Ministry of Commerce: Bo Xilai

August 16, 2006

Measures for the Administration on Work Safety of Complete Foreign Aid Projects (For Trial Implementation)
Chapter I General Rules

Article 1

For the purpose of strengthening the administration on work safety of complete foreign aid projects and safeguarding the life safety
of technicians and related persons for foreign aid projects and the property safety of foreign aid projects, the present Measures
are constituted under the related laws and administrative regulations.

Article 2

The supervision over and administration on work safety during the survey, design, construction and supervision of complete foreign
aid projects shall be subject to the present Measures.

The term “complete foreign aid projects (hereinafter referred to as foreign aid projects)” as mentioned in the present Measures refers
to the various kinds of projects under which the government of our country provides gratuitous assistance, interest-free loans, low-interest
loans or any other financial assistance funds to the government of the aid recipient, chooses the undertaking enterprises for survey
and design, provides construction machines, equipments and materials, assigns engineering technical staff, and undertakes or guides
the whole process or some stages of construction, installation or trial production within the territory of the recipient.

Article 3

The administration on work safety of foreign aid projects shall be subject to the policies of “safety first and precaution as the
key”.

Article 4

The Ministry of Commerce shall be responsible for constituting rules for the work safety of foreign aid projects and supervising
over the implementation of the aforesaid rules.

Article 5

Survey and design enterprises, design supervision enterprises, construction enterprises and construction supervision enterprises
which undertake the foreign aid projects (hereinafter referred to as the enterprises undertaking foreign aid projects), shall observe
all the provisions in the present Measures and the local laws and regulations on work safety constituted by the related aid recipient,
ensure the safety of foreign aid projects, bear the safety liability for foreign aid projects, and may not contract out or illegally
subcontract foreign aid projects.

If the subcontracting of a project is approved by the Ministry of Commerce, the enterprise undertaking the foreign aid project and
the subcontracting enterprise shall bear joint and several liabilities for the work safety of the subcontracted project.

Chapter II Safety Responsibilities of a Survey and Design Enterprise

Article 6

Survey and design enterprises of foreign aid projects shall, in accordance with laws, administrative regulations and compulsory standards
of the State on the survey of projects, survey the foreign aid projects. And the project survey documents they provide shall be true
and accurate, and shall meet the requirements for the work safety of foreign aid projects.

The survey and design enterprise of a foreign aid project shall, when it conducts a survey, strictly accord with the operational rules
for the survey, and take measures to ensure the safety of various pipelines, facilities and surrounding buildings and structures.

Article 7

When designing a foreign aid project, the survey and design enterprise of a foreign aid project shall undertake the project design
under the stipulations in the project establishment agreement, project survey documents and the design contract for the foreign aid
project signed between the governments. Unless it is otherwise specially stipulated with the aid recipient, the survey and design
enterprise of a foreign aid project shall strictly accord with the laws, administrative regulations, design rules and compulsory
standards of the State on engineering construction projects to avoid the occurrence of work safety accidents by virtue of unreasonable
design.

As regards a hidden project, main structure or any other key part of a significant foreign aid project or the structural design scheme
for a special foreign aid project, the survey and design enterprise of the foreign aid project shall conduct a model safety test.

As regards the maintenance, rebuilding or expanding (including the dismantlement) of a project, the survey and design enterprise of
the foreign aid project shall make out appraisal documents on the structural safety of the original building or structure.

If a new technology, new technique or new material is adopted for the deign of a foreign aid project, the survey and design enterprise
of the foreign aid project shall ensure the reliability and safety of the technology, technique or material involved, and bring forward
suggestions on the measures for safeguarding the safety of construction workers and defending the occurrence of work safety accidents
in the design.

Article 8

The survey and design enterprise of a foreign aid project must constitute a special safety chapter in the preliminary deign or the
design instruction of the construction drawings for the foreign aid project.

The following items shall be included in the special safety chapter:

(1)

the safety protection measures for the constructions, structures, underground pipelines and facilities adjacent to the construction
site;

(2)

the protection articles and appliances, construction machine and tools, fire control facilities and equipments necessary for safe
construction, and the necessary specific technical requirements; and

(3)

the safety technical measures for the part of project or the sub-project that is fairly dangerous or the part or link of construction
site at which a work safety accident is likely to occur.

Chapter III Safety Responsibilities of a Design Supervision Enterprise

Article 9

In accordance with the laws, administrative regulations and compulsory standards of the State on the supervision over projects, the
design supervision enterprise of a foreign aid project and the supervisors it assigns shall examine the project survey documents
submitted by the survey and design enterprise of the foreign aid project, and affirm whether they can satisfy the requirements for
work safety of the foreign aid project.

The project survey documents, which have not been examined or are found to be unqualified upon examination, may not be the basis for
the design of the foreign aid project.

Article 10

In accordance with the laws, administrative regulations, design rules and compulsory standards of the State on the engineering construction
projects, the design supervision enterprise of a foreign aid project and the supervisors it assigns shall strictly control the safety
guarantee degree and design quality of the design documents on the foreign aid project through step-by-step design inspection and
process supervision.

Article 11

The design supervision enterprise of a foreign aid project and the supervisors it assigns shall, during the process of step-by-step
design inspection, undertake special safety inspection on the design documents for the foreign aid project.

The following items shall be included in the special safety inspection:

(1)

examining the safety of structure design: if a model safety test has been conducted, it is necessary to examine and affirm the safety
test result; if the structure design scheme is not reliable or the model safety test has not been conducted according to the provisions,
it is necessary to supplement the model safety test and to examine and affirm the safety test result; and as regards the maintenance,
rebuilding or expanding (including the dismantlement) of a project, it is necessary to go through the inspection and affirmation
procedure for structure safety appraisal documents on the original building or structure;

(2)

examining whether or not all the professional design contents comply with the compulsory standards for engineering construction project;
and

(3)

examining the reliability and effectiveness of the safety technical measures for the part of project or the sub-project that is fairly
dangerous.

Article 12

As regards a foreign aid project for which such two design stages as the preliminary design and the project drawing design are implemented,
the design supervision enterprise of the foreign aid project shall undertake a special safety inspection at the inspection stage
for preliminary design. And if the preliminary design fails to pass the special safety inspection or is found to be unqualified upon
special safety inspection, the project drawing design may not be started.

The design supervision enterprise of the foreign aid project shall, after the project drawing design is completed, undertake a corresponding
review of the special safety inspection contents at the stage for reviewing the project drawing. Any project drawing design document
that fails to be reviewed or is found unqualified upon review may not be used for the construction of the foreign aid project.

Article 13

As regards a foreign aid project for which the one-step project drawing design is implemented, the design supervision enterprise
of the foreign aid project shall conduct a special safety inspection after the project drawing design is finished. Any project drawing
design document that fails to be submitted for a special safety inspection or is found unqualified upon special safety inspection
may not be used for the construction of the foreign aid project.

Article 14

As regards a foreign aid project for which the design supervision system has not been implemented, the consultancy enterprise entrusted
to undertake the step-by-step survey and design consultancy task shall conduct the special safety inspection into the survey and
design documents on the foreign aid project by referring to the present Chapter, and bear the safety responsibilities in accordance
with the present Measures.

Chapter IV Safety Responsibilities of a Construction Enterprise

Article 15

If an enterprise has obtained the qualification of a foreign aid construction enterprise through verification of the Ministry of
Commerce in accordance with the measures for the verification of qualifications of the enterprises undertaking the construction task
for complete foreign aid projects, it shall undertake the construction task of foreign aid projects within the licensing scope of
its qualification degree, be equipped with necessary professional technical staff and technical equipments, constitute the bylaws
and operational rules on work safety, organize education and training on work safety and ensure the work safety of foreign aid projects.

Article 16

The construction enterprise of a foreign aid project shall establish a work safety responsibility system, and its legal representative
shall be comprehensively responsible for the work safety of the foreign aid project.

The construction technical group leader assigned by the construction enterprise of a foreign aid project shall have the corresponding
qualification of a project manger, and take charge of the safe construction at the construction site of the foreign aid project.

Article 17

The construction enterprise of a foreign aid project shall establish a work safety management organ in the construction technical
group, establish a work safety leading group with the construction technical group leader as the leader of the group, constitute
bylaws and operation rules on work safety and the emergency tackling scheme for safety accidents, and shall be comprehensively responsible
for the safe construction at the construction site.

Article 18

At least one safety director shall be equipped in a construction technical group. In case a construction technical group has 15 or
less members, it may have a part-time safety director; and in case a construction technical group has more than 15 members, it must
have a full-time safety director.

A safety director shall assume the following functions and duties:

(1)

supervising over the implementation of bylaws and operation rules on work safety;

(2)

organizing the implementation of emergency rescuing schemes on work safety accidents;

(3)

organizing the education and training on work safety;

(4)

managing and guiding the use of safety protection tools;

(5)

setting and managing safety warning signs and fire control safety signs at the construction site; and

(6)

conducting regular and special safety inspections. In case he finds any act against the bylaws or operation rules on work safety,
he shall deter or correct it on the spot, and immediately report it to the construction technical group leader, take related rectification
measures, and simultaneously do a good job in making records of the safety inspection.

A safety director shall, before he takes his post, accept special trainings on the administrative rules for foreign aid and the standards
for implementing the national professional health and safety management system.

Article 19

Under the guidance of the construction organization and design for the foreign aid project, the construction enterprise of a foreign
aid project shall undertake construction strictly according to the laws and administrative regulations of the State on the engineering
construction projects, the rules and the compulsory standards for construction inspection and acceptance.

Article 20

The construction enterprise of a foreign aid project and its construction technical group shall, in light of the characteristics
of the project, constitute a temporary electricity-using scheme for the construction site during the construction organization and
design; as regards the following part of project or sub-project that is fairly dangerous or the part or link at which a work safety
accident is likely to occur, a special safe construction schedule shall be constituted before the construction and be attached with
the safety assessment result. and the construction enterprise of the foreign aid project shall organize experts to make demonstration
and inspection when necessary:

(1)

pit support and dewatering engineering;

(2)

earth excavation engineering;

(3)

formwork engineering;

(4)

hoisting engineering;

(5)

scaffolding engineering;

(6)

dismantling and blasting engineering; and

(7)

any other special engineering that is fairly dangerous.

The aforesaid temporary electricity-using scheme and special safe construction scheme shall be examined by the construction technical
group leader and then be reported to the construction supervisors for examination and approval. Any temporary electricity-using scheme
or special safe construction scheme that has not been examined and approved may not be used for the construction of the foreign aid
project.

Article 21

Before the construction, the construction enterprise of a foreign aid project and its construction technical group shall organize
the transfer of safe construction technological details, explicitly explain the technical requirements for safe construction to the
operation staff, and initiatively well record the transfer of technological details; as regards the part of project or sub-project
that is fairly dangerous or the part or link at which a work safety accident is likely to occur, the construction enterprise of a
foreign aid project and its construction technical group shall transfer the safe construction technological details together with
the design representatives and construction supervisors, and jointly record the related matters into the summary on transfer of technological
details.

Article 22

The construction enterprise of a foreign aid project and its construction technical group shall establish a qualification management
system for special operators. The construction enterprise and its construction technical group shall strictly examine the special
qualification certificates of the special operators that engage in the operation of vertical transportation machines, installation
and dismantlement, blasting, hoisting informing and high-rise frameworks and etc., and establish management archrivals for corresponding
special operators.

A special operator may not take on his post for operations until the construction supervisor verifies his technical qualification.

Article 23

The construction enterprise of a foreign aid project and its construction technical group shall establish the following special management
system for special equipments such as vertical transportation machines, hoisting machines and self-erecting facilities:

(1)

before purchasing or leasing any special equipment, an inspection and testing institution with the corresponding qualification shall
be entrusted to make safety inspection or testing and issue an inspection and testing conformity certificate, which shall be submitted
to the construction supervisors for inspection and reference when the special equipment enters into the construction site;

(2)

the special equipment may not, after it has been installed and debugged, be used until it is inspected and accepted and is found to
be qualified by the construction supervisors, and a conformity sign upon inspection and acceptance shall be placed at or attached
to an eye-catching site of the aforesaid equipment;

(3)

the special equipment shall be managed by special persons, be regularly inspected and maintained, and a maintenance managing archive
shall be established therefor during the process of construction;

(4)

if the special equipment needs to be used continuously after the conformity period upon inspection and acceptance expires, the records
of operation and maintenance of the aforesaid equipment shall be provided to the construction supervisors for applying for a supplementary
inspection and acceptance. And the aforesaid equipment may not be continuously used until it is found to be qualified upon the supplementary
inspection and acceptance by the construction supervisors.

Article 24

The construction enterprise of a foreign aid project and its construction technical group shall take the following safety protection
measures for the operational staff at the construction site:

(1)

constituting and implementing the operation rules for dangerous posts;

(2)

conducting regular education and training on work safety to the operation staff at the construction site;

(3)

purchasing, leasing and using the safety protection appliances and articles, construction machines and tools that are produced by
a qualified manufacturer and have product conformity certificates, in light of the compulsory standards of the State and the special
requirements of project design documents, and conducting necessary inspections before putting the aforesaid safety protecting appliances
into use at the construction site;

(4)

arranging special persons for the management of safety protection appliances, and establishing a ledger for the distribution of safety
protection appliances;

(5)

setting up an inspection and maintenance responsibility system for construction machines and tools, and arranging special persons-in-charge;
and

(6)

setting eye-catching safety warning signs at the entrances and exits of the construction site and at the sites for placing construction
cranes, interim electricity-using facilities, scaffolding, explosives, harmful and dangerous gas and other dangerous sites. The safety
warning signs shall be written both in Chinese and in the official language of the recipient, and accord with the standards of China
and the recipient unless it is otherwise specially stipulated with the aid recipient.

Article 25

The construction enterprise of a foreign aid project and its construction technical group shall set up a fire control responsibility
system for the construction site, determine the person-in-charge of fire control, and constitute the fire control management rules
and operation rules for using the fire, electricity and flammable and explosive materials. The construction enterprise of a foreign
aid project and its construction technical group shall build channels and water sources for fire control, have fire control facilities
and extinguishing apparatus the operation area at the construction site, offices and living areas, and establish fire control safety
signs at the entrances to all the areas. The fire control safety signs shall be written both in Chinese and the official language
of the recipient, and accord with the standards of China and the recipient unless it is otherwise specially stipulated with the aid
recipient,.

The construction enterprise of a foreign aid project and its construction technical group shall undertake regular and specific fire
control inspections, and well record the fire control inspections.

Article 26

The construction enterprise of a foreign aid project and its construction technical group shall rationally choose the site and establish
temporary production and living facilities in light of the safety requirements. The offices, living area and operation area at the
construction site shall be established separately and keep a safe distance from each other. It shall be strictly forbidden to establish
any collective staff dormitories within the building that has not been completed; the places for the operation staff to have meals,
drink water and have a rest shall accord with the health standards; and the fabricated movable houses used at the construction site
shall have product conformity certificates.

Article 27

During the construction and management of the foreign aid project, the construction enterprise of a foreign aid project and its construction
technical group shall strictly accord with the national professional health safety management system and standards, constitute and
implement the professional health safety guarantee scheme, continuously adopt the identification, risk assessment and risk control
measures for the sources of safety dangers to the professional health, and voluntarily be subject to the monitoring, step-by-step
inspection and supervision by the Ministry of Commerce over its implementation of the standards.

Chapter V Safety Responsibilities of a Construction Supervision Enterprise

Article 28

The construction supervision enterprise of a foreign aid project shall accord with the laws, administrative regulations and compulsory
standards of the State on the related engineering construction projects, fulfill the construction supervisory duties, and supervise
over the construction enterprise of the foreign aid project to intensify the work safety management, put into effect the work safety
measures and regulate the work safety order.

If the construction supervision enterprise of a foreign aid project finds any hidden trouble of safety accident during the process
of construction supervision, it shall require the construction enterprise of the foreign aid project to make corrections; it shall
order the construction enterprise of the foreign aid project to suspend the construction and report it to the Ministry of Commerce
in a timely manner in case the circumstances are serious. If the construction enterprise of the foreign aid project refuses to make
corrections or suspend the construction, the construction supervision enterprise shall report it to the Ministry of Commerce in a
timely manner.

Article 29

The construction supervision enterprise of a foreign aid project shall constitute and carry out the Construction Supervision Outline
in light of the project design documents and the rules for construction inspection and acceptance.

A special charter on the safety supervision plan for the foreign aid project shall be made in the Construction Supervision Outline,
so that the safety prevention and monitoring measures may be constituted in advance for the part of project or sub-project that is
fairly dangerous or the part or link at which a work safety accident is likely to occur.

Article 30

In accordance with the prescribed procedures, the construction supervision enterprise of a foreign aid project and the construction
supervisors it assigns shall supervise over the construction enterprise of the foreign aid project to constitute, amend, report for
approval and carry out all the bylaws constituted by the construction organization, and strictly examine the interim electricity-using
scheme and special safe construction scheme as submitted by the construction enterprise of the foreign aid project.

Article 31

The construction supervision enterprise of a foreign aid project and the construction supervisors it assigns shall strictly observe
the rules for construction supervision, conduct standby supervision over the part of project or sub-project that is fairly dangerous
or the part or link at which a work safety accident is likely to occur, find hidden troubles of safety and guide to make corrections
in a timely manner.

Article 32

The construction supervision enterprise of a foreign aid project and the construction supervisors it assigns shall strictly examine
the qualification certificates of special operation staff for engaging in the mechanical vertical transportation, installation and
dismantlement, blasting, hoisting signaling, high-rise frameworks and etc., and supervise over the construction enterprise to carry
out the qualification management system for special operation staff.

Article 33

The construction supervision enterprise of a foreign aid project and the construction supervisors it assigns shall examine the inspection
and testing conformity certificates of such special equipments as vertical transportation machines, hoisting machines and self-erecting
facilities and etc., be responsible for the inspection and acceptance before putting them into use, and supervise over the construction
enterprise to carry out the management system for special equipments.

Article 34

The construction supervision enterprise of a foreign aid project and the construction supervisors it assigns shall regularly conduct
special inspections on the safety protection measures and fire control safety measures for the construction site, and well make records
of inspections.

Chapter VI Personal Accident Injury Insurance

Article 35

In accordance with the related provisions, the construction enterprise of a foreign aid project shall purchase the personal accident
injury insurance for those Chinese it assigns abroad to undertake the construction of foreign aid projects. And the fees necessary
for the aforesaid insurances shall be borne by the construction enterprise of the related foreign aid project.

Article 36

The construction enterprise of a foreign aid project shall purchase personal accident injury insurance for the engineering technical
personnel of the aid recipient it hires for entering into the construction site to engage in dangerous work. The accident injury
insurance liabilities and the insurance conditions shall be determined in accordance with the related laws and regulations of the
recipient, and the fees necessary for the aforesaid insurances shall be borne by the construction enterprise of the related foreign
aid project.

Chapter VII Work Safety Supervision and Inspection

Article 37

An appraisal entity that is entrusted by the Ministry of Commerce and has the corresponding qualification shall, when undertaking
the mid-term quality inspection and completion-based inspection and acceptance, conduct special assessment on the work safety situation
of the foreign aid project.

(1)

where any common work safety accident as prescribed in the present Measures has occurred during the construction of the foreign aid
project, the single engineering involved in the work safety accident may not be appraised as the grade of “excellence”;

(2)

Where two or more work safety accidents have occurred during the construction of the foreign aid project, the completion-based inspection
and acceptance of the foreign aid project may not be appraised as the grade of “excellence”; and

(3)

Where any severe or more severe work safety accident as prescribed in the present Measures has occurred during the construction of
the foreign aid project, the single engineering involved in the work safety accident may not be appraised as the grade of “excellence”,
and the completion-based inspection and acceptance of the foreign aid project may not be appraised as the grade of “excellence”.

Article 38

As regards significant foreign aid projects, the Ministry of Commerce shall assign a supervision and inspection team containing related
experts to supervise and inspect the fulfillment of work safety management responsibilities on the spot by the construction enterprise,
the survey and design enterprise, the construction supervision enterprise and their detached agencies.

As regards important projects and other especially sensitive projects, the Ministry of Commerce may undertake the work safety supervision
and inspection in combination with other inspection teams of the project when necessary.

The supervision and inspection team shall be enpost_titled to take the following measures:

(1)

consulting all the documents and materials on the work safety of the entity being inspected;

(2)

entering the construction site to inspect all the production and living places and facilities;

(3)

correcting all the acts violating the work safety requirements on the spot; and

(4)

ordering the removal of the hidden troubles of safety accidents on the spot, and ordering the construction suspension and temporary
removal of the operation staff before the hidden trouble of safety is removed or the safety can not be ensured during the process
of removal.

Chapter VIII Investigation and Disposal of Work Safety Accidents

Article 39

The work safety accidents of foreign aid projects can be classified into the following 4 grades in light of the conditions on the
death of operation staff and the property loss of the foreign aid project:

(1)

Common work safety accidents, which refers to the death of 2 or less persons, or the property loss of 100,000 Yuan up to 300,000 Yuan;

(2)

Severe work safety accidents, which refers to the death of 3 up to 9 persons, or the property loss of 300,000 Yuan up to one

PROVISIONS OF THE MINISTRY OF COMMERCE ON ANNOUNCING AND QUESTIONING THE BID EVALUATION RESULTS OF FOREIGN-AID PROJECTS

Notice of the Ministry of Commerce on Printing and Distributing the Provisions of the Ministry of Commerce on the Announcing and Questioning
of the Bid Evaluation Results of Foreign-aid Projects (for Trial Implementation)

Shang Yuan Fa [2006] No. 413

The competent departments of commerce of all provinces, autonomous regions and municipalities directly under the Central Government,
all the enterprises that undertake the implementation, exploration and design, construction supervision and counseling of foreign-aid
projects,

For the purpose of strengthening the administrative supervision and administration on bidding for foreign aid projects and effectively
implement the principles of “fairness, impartiality and openness”, the Ministry of Commerce has constituted the Provisions of the
Ministry of Commerce on Announcing and Questioning the Bid Evaluation Results of Foreign-aid Projects (for Trial Implementation),
which is hereby printed and distributed to you and shall go into effect as of September 1, 2006.

The department of this Ministry that uniformly accepts the questions over announced bid evaluation results of foreign aid projects
and the contact ways thereof are as follows,

The accepting department: Foreign Aid Department of the Ministry of Commerce

Address: No. 82 Dong’anmen Street, Beijing

Floor 6th, Dong’anmen Office District, the Ministry of Commerce

Contact Number: 010-85226617, 85226649

Fax: 010-65129350

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

August 22, 2006

Provisions of the Ministry of Commerce on Announcing and Questioning the Bid Evaluation Results of Foreign-aid Projects

For the purpose of strengthening the administrative supervision and administration on bidding for foreign aid projects, effectively
implementing the principles of “fairness, impartiality, openness and optimum selection” and strengthening the credibility of bid
evaluation results, the Ministry of Commerce has decided to try out the announcing and questioning of bid evaluation results of foreign
aid projects, which goes as follows:

The foreign aid projects, whose implementation entities are selected by way of competitive bidding, shall all be listed into the announcing
scope of bid evaluation results, which concretely includes the construction, exploration and design and the construction supervision
of whole sets of foreign aid projects as well as foreign aid material projects (including single equipment projects).

In case the scope of publicity shall be expanded as required by business development, the Ministry of Commerce shall make supplementary
provisions thereon and publish them.

The bid evaluation result of a foreign aid project shall be announced after the related bid opening is conducted and before a notice
on bid awarding is officially distributed. The period for the announcement shall be 5 workdays in general and may be 3 workdays upon
approval under special circumstances, which shall be clearly indicated in the circular on bid opening by the Ministry of Commerce.

Where there is no question or all questions are settled upon expiration of the period for announcement, the Ministry of Commerce shall
distribute a notice on bid awarding to the bid winner.

The Ministry of Commerce shall announce the following items to the bidding enterprises through the “Exclusive Network for Foreign
Aid Bidding”,

(1)

main contents of the bid evaluation report, including the validation of the effectiveness of bids that have been effectively served,
qualitative judgment, quantified scoring and major reasons for deducting scores.

(2)

result of bid opening;

(3)

contact persons and contact information for consulting the contents of the bid evaluation report, which have been designated for explanation;
and

(4)

how to raise questions and the question accepting organ.

Bidding enterprises shall, within the period of announcement, consult by themselves the published bid evaluation results through the
exclusive bidding network. In case any bidding enterprise has any question about the contents of a bid evaluation report, it may
request the contact person as designated by the Ministry of Commerce to make technical explanations and descriptions at first.

Bidding enterprises, which have any different opinion on any bid evaluation result (hereinafter referred to as the question raiser)
may raise question over the following problems within the period of announcement,

(1)

any law-breaking or rule-breaking act in the bidding procedures;

(2)

any law-breaking or rule-breaking act during the organization of bid evaluation; or

(3)

any law-breaking or rule-breaking act concerning bid evaluation results.

The question raiser shall fill in a Questioning Form of Bid Evaluation Results (see the appendix for details) to raise questions,
which shall be affixed with the seal of its legal representative or the authorized representative thereof and thereafter be served,
with the related certification materials, on the question accepting organ. And then it may be deemed as effective. In case any Questioning
Form of Bid Evaluation Results fails to be served within the period of announcement, the related question raiser shall, within the
period of announcement, serve the Questioning Form of Bidding Evaluation Results and related certification materials in written form
by fax to the question accepting organ, of which the originals shall be made up within 2 workdays thereafter so as to validate the
question.

The question raiser shall guarantee the authenticity and lawfulness of the source of its questioned contents and related certification
materials, and shall assume the related legal liabilities.

Where, upon verification, the question raiser brings forward any false questions, yet if it is not out of any subjective deliberate
intent and no serious consequence has been incurred, the Ministry of Commerce shall give a written criticism and warning to it. In
case any question raiser has any subjective deliberate intent to make any false question or where any false question has any negative
impact on or incurs economic losses to the normal implementation of a project subject to bidding, the Ministry of Commerce shall,
depending on circumstances, stop inviting the enterprises to join the bidding of the foreign aid project within 1-2 years.

The Ministry of Commerce (to be specific, Foreign Trade Department) shall uniformly be responsible for accepting the questions posed
by question raisers concerning the announced bid evaluation results of foreign aid projects and opening the exclusive telephone and
fax.

Questions may not be accepted under any of the following circumstances:

(1)

where it fails to be effectively served in accordance with these provisions;

(2)

where it is brought forward by a non-bidder;

(3)

where no legal seal is affixed to the Questioning Form of Bid Evaluation Results as well as the related letters;

(4)

where there is no clear content, clue or related evidence; or

(5)

where any different opinion is raised merely against the bid evaluation result in the absence of any related evidence.

10.

The Ministry of Commerce shall inform the question raiser of the result of question treatment within 10 workdays as of the day when
a question is accepted.

The results of question treatment are classified into three types: maintaining the bid evaluation result, altering the bid winner
and announcing the invalidity of the bidding. In particular, where a bid winner is altered, the new winner shall be announced via
the “Exclusive Network for Foreign Aid Bidding” within the period of announcement as prescribed herein. In case any bidding is announced
invalid, a new bidding shall be organized or the way of bidding shall be separately decided.

11.

In case a question raiser has any different opinion on the treatment of its question, an administrative review or lawsuit may be raised
under law.

12.

The Ministry of Commerce is responsible for interpreting such matters as are not prescribed herein.

These Provisions shall go into effect as of September 1, 2006.

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

August 1, 2006

The Ministry of Commerce
2006-08-22

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE INTERPRETATION OF RELATED ISSUES CONCERNING DEED TAX POLICIES FOR ENTERPRISE REORGANIZATION AND RESTRUCTURING

Circular of the State Administration of Taxation on the Interpretation of Related Issues concerning Deed Tax Policies for Enterprise
Reorganization and Restructuring

Guo Shui Han [2006] No.844

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

The Circular of the Ministry of Finance and the State Administration of Taxation on Extending the Execution Period for the Several
Deed Tax Policies concerning Enterprise Reorganization and Restructuring (Cai Shui [2006] No.41) provides for that the execution
period of the Circular of the Ministry of Finance and the State Administration of Taxation on Several Deed Tax Policies concerning
Enterprise Reorganization and Restructuring (Cai Shui [2003] No.184, hereinafter referred to as the No. 184 Document) shall be extended
up to December 31, 2008. The related issues are hereby specified as follows in light of the conditions as reflected by all the regions
during their implementation:

The term “overall restructuring” as stipulated in Paragraph 1 of Article 1 of the No. 184 Document means such a restructuring under
which the restructured enterprise succeeds to all the rights and obligations of the original enterprise.

The term “enterprises” as mentioned in Articles 2, 3 and 4 of the No. 184 Document means legal person enterprises.

The term “equity transfer” as stipulated in Paragraph 1 of Article 2 of the No. 184 Document means such an act whereby the entity
or individual not only succeeds to the equities of the original enterprise but also changes the legal representative, investor, business
scope and other items of the original enterprise. The equity transfer may, during the process of implementation, be verified according
to the enterprise registration of the administrative department for industry and commerce, that is to say, where an enterprise conducts
the modification registration, such paragraph shall apply; where an enterprise conducts a new establishment registration, such paragraph
may not apply. Where the newly established enterprise succeeds to the land or house property of the original enterprise, the deed
tax shall be collected.

The term “division of enterprises” as stipulated in Article 4 of the No. 184 Document only means such an act under which the investors
of the newly established enterprise, the derivative enterprise and the enterprise being divided are the same ones.

The phrase “relationship between the enterprises affiliated to a same investor” as stipulated in Article 7 of the No. 184 Document
means the relationship between a parent company and any of its wholly owned subsidiary companies, between any two wholly owned subsidiaries
affiliated to a same parent company, between any two sole proprietorship enterprises set up by a same natural person, or between
a sole proprietorship enterprise and a one-person company set up by a same natural person.

The acceptance of the allotted land of the original restructuring enterprise in the form of assignment dose not fall within the scope
of the No. 184 Document. And the deed tax shall be collected on the succeeding party.

The present Circular shall come into force as of the issuance date.

The State Administration of Taxation

August 28, 2006

The State Administration of Taxation
2006-08-28

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING RELATED SPECIFIC ISSUES IN RESPECT OF THE IMPLEMENTATION OF THE POLICIES ON ADJUSTING THE WAGES SUBJECT TO ENTERPRISE INCOME TAX

Circular of the State Administration of Taxation concerning Related Specific Issues in respect of the Implementation of the Policies
on Adjusting the Wages Subject to Enterprise Income Tax

Guo Shui Fa [2006] No. 137

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

Upon approval of the State Council, the quota of taxable wages to be deducted before the levy of enterprise income tax shall be uniformly
adjusted into RMB 1,600 per person per month as of July 1, 2006, and the policy of upward floating at 20 percent shall be halted
from implementation simultaneously. For the purpose of guaranteeing the smooth implementation of this policy from the second half
of this year, the relevant issues in the specific implementation are hereby announced as follows in accordance with the spirit of
the Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting the Policies on the Deduction of Wage
Expenditures Prior to the Levy of Enterprise Income Taxes (Cai Shui [2006]) No. 126):

Adjusting the rate for deduction of taxable wages before the levy of tax is a specific measure for the effective implementation of
the spirit of the Central Economic Working Conference, and an important policy adjustment before the reform of combination of the
two laws concerning enterprise income tax as well, which is advantageous for reducing the tax burden gap between Chinese-funded enterprises
and foreign-funded enterprises, and achieving impartial competition gradually. This policy adjustment is of great significance, and
affects the interests of the taxpayers. Consequently, the taxation organs at each level shall attach great importance to the effective
implementation of the policies, publicize the new policies on taxable wages in a timely, comprehensive and deep manner, ensure that
the taxpayers understand the spirit of the new policies as soon as possible and then file returns of prepayable enterprise income
tax under the new policies.

The taxation organs at each level, especially the grass-roots taxation organs, shall promptly devote into the policy adjustment, ensure
the effective implementation of the new policies on taxable wages within this year, in order that the taxpayers may enjoy the preferences
from the policy adjustment on taxable wages by the end of December.

(1)

All grass-roots taxation organs shall assess the amounts of reduced enterprise income taxes carefully as a result of policy adjustment
on taxable wages, and shall adjust prepayable amounts declared by the taxpayers in each month (quarter) from July to December of
this year based on the assessment.

(2)

The issues on the enterprises that prepay taxes at the actual amount for the term of tax payment shall be handled separately according
to such two circumstances:

(a)

In case an enterprise prepays enterprise income tax on a monthly basis, it shall calculate and deduct the prepaid amount at the deduction
proportion as assessed under the aforesaid requirements when filing returns of the prepayable taxes in each month from September
to December of this year. And the enterprise shall file returns of prepayable taxes of September together with calculating the reduced
amounts of July and August, which shall be used to offset the prepayable taxes of September, while the insufficient part shall be
offset by the prepayable taxes of the subsequent months in this year until it is fully offset. The enterprise shall file returns
of prepayable taxes of November in December together with calculating the reduced amount of December, which shall be used to offset
the prepayable taxes of November, while the tax refund procedures for the insufficient part shall be completed by the end of December.

(b)

In case an enterprise prepays enterprise income tax on a quarterly basis, it shall calculate the reduced amount of the fourth quarter
in addition to calculating the reduced prepayable amount of the third quarter at the assessed proportion of reduction when filing
returns of the prepayable enterprise income tax of the third quarter. The reduced prepayable amount shall be used to offset the prepayable
taxes of the third quarter, while the tax refund procedures for the insufficient part shall be completed by the end of December.

(3)

The issues on the enterprises that prepay taxes at a certain proportion of the amount of taxable income in the last year shall be
handled separately according to such two circumstances:

(a)

In case an enterprise prepays enterprise income tax on a monthly basis at 1/12 of the amount of taxable income of the last year, it
shall reduce the prepayable amount in each month at the same proportion of reduction as assessed in light of the aforesaid requirements,
and the reduced amount of prepayable taxes of July and August shall be calculated and reduced simultaneously in September. If the
reduced amount as calculated is negative, the part excessive to the amount of prepayable taxes of September shall be reduced continuously
when the returns of prepayable taxes in the subsequent months are filed, until the said amounts are completely offset. The enterprise
shall file returns of prepayable taxes of November in December together with calculating the reduced amount of December, and use
the said amount to offset the prepayable taxes of November.

(b)

The matter concerning an enterprise that prepays enterprise income tax on a quarterly basis at 1/4 of the amount of taxable income
of the last year shall be handled in the way subject to Subparagraph 2 of Paragraph (2) in this Article.

(4)

The issues on the enterprises, the taxes of which are levied based on verification, shall be handled separately according to such
two circumstances:

(a)

As for the approved rate of taxable income, the rate shall be lowered accordingly at the proportion of reduction as assessed under
the aforesaid requirements, the reduced amount after the rate of taxable income is lowered shall be calculated, and the issue shall
be handled in the way subject to Paragraph (2) of this Article.

(b)

As for the approved amount of payable income taxes, the quota of each month shall be reduced accordingly at the proportion of reduction
as assessed under the aforesaid requirements, and the issue shall be handled in the way subject to Paragraph (2) of this Article.

The amount of tax reduction of the taxpayers occurring due to the policy adjustment on taxable wages shall be incorporated into the
range of final settlement and payment after the end of this year, and be subject to final settlement and payment together with others.

The taxation organs at each level shall rigidly carry out these policies, and may not illegally raise the rate of taxable wages or
provision the floating proportion for the certain regions under any excuses or in any form after the new policies on taxable wages
come into force. If the taxable wage rates are higher than the uniformly prescribed rate of the state in practical implementation,
it shall be remedied promptly. You shall strictly implement the applicable scope of the policies on taxable wages by connection of
wages with performance. No enterprise may adopt the method of connecting wages with performance except for the state-owned and state-holding
industrial and commercial enterprises, and financial and insurance enterprises that implement the policies on taxable wages by connecting
wages with performance and are restructured or reformed into joint stock enterprises upon examination and approval of the Ministry
of Finance and the State Administration of Taxation.

Where there is any question arising from the implementation of the new policies on taxable wages, it shall be timely reported to the
State Administration of Taxation.

The State Administration of Taxation

September 1, 2006

The State Administration of Taxation
2006-09-01

NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE PREFERENTIAL POLICIES FOR ENTERPRISE INCOME TAXES OF TECHNICAL INNOVATION ENTERPRISES

Notice of the Ministry of Finance and the State Administration of Taxation on the Preferential Policies for Enterprise Income Taxes
of Technical Innovation Enterprises

Cai Shui [2006] No. 88

Public finance departments (bureaus), state taxation bureaus and local taxation bureaus of all provinces, autonomous regions and municipalities
under the Central Government and cities specifically designated in state plan, and the Public Finance Bureau of Xinjiang Production
and Construction Corps.

With a view to implementing the Outline for the State Mid/Long-term Scientific and Technical Development (2006-2020) (Guo Fa [2005]
No. 44), we hereby notify the related preferential policies for enterprise income taxes of technical innovation enterprises as follows
under the Notice of the State Council on Printing, Distributing and Implementing Several Supporting Policies for the Outline for
the State Mid/Long-term Scientific and Technical Development (2006-2020) (Guo Fa [2006] No. 6),

With regard to the Expenditure for Technical Development

As regards the Chinese-funded and foreign-funded enterprises, scientific research institutions and universities and colleges with
perfect financial verification system and tax collection by checking accounts (hereinafter referred to as the enterprises), the expenditure
for technical development occurring for the research and development of new products, new technologies and work techniques shall
be deducted before tax collection under the related provisions.

The following items of expenditure for technical development that actually occur within the tax year of any of the aforesaid enterprises
is allowed, on the basis of 100% offset under the related provisions, to be re-deducted at the rate of 50% of the amount that actually
occurs before the enterprise income tax is collected, which shall include the expenditure for new product designs, expenditure for
formulating technical procedures, expenditure for equipment adjustments, expenditure for trial production of raw materials and semi-products,
expenditure for technical books and materials, expenditure for intermediate experiments that have not been included into the state
plan, wages of researchers, depreciation of instruments and equipments for research and development, expenditure for commissioning
any other entity or individual to make scientific research and trial production and other expenditure directly related to scientific
research and trial production.

The part that fails to be offset with the expense for technical development that actually occurs in an enterprise’s annual year may
be offset with the taxable income of the enterprise in the next following year, for which the time limit for offset may not be longer
than 5 years.

With Regard to the Fund for the Education of Staff

With regard to the fund for the education of staff that an enterprise collects and actually uses in the very year, the part within
2.5% of the aggregate taxable wage may be deducted before the enterprise income tax is collected.

With regard to the Accelerated Depreciation

Where the unit value of any of the enterprise’s instruments and equipments for research and development is less than 0.3 million Yuan,
the expenditure may be calculated into the cost in one or several installments and shall be deducted before the enterprise income
tax is collected. Any instrument or equipment that meets the standards for fixed assets shall be subject to separate administration,
and no depreciation shall be made any more.

Where the unit value of any of the enterprise’s instruments and equipments for research and development is more than 0.3 million Yuan,
accelerated depreciation may be based on either the double-declining balance method or the sum of the year digits method. Once a
specific method for depreciation is determined, it may not be modified at will.

The instruments and equipments as provided for in the aforesaid two paragraphs refer to those that an enterprise has newly purchased
for research and development after January 1, 2006.

With regard to the Tax Preferential Policies for High Tech Enterprises

Any high tech enterprise established within the state high-tech industrial development park as of January 1, 2006 shall be exempted
from enterprise income taxes within 2 years as of the year when it starts to make profits. After the expiration of the time limit
for tax exemption, the enterprise income tax shall be collected at a reduced tax rate of 15%.

After the aforesaid enterprise starts its business operation, its profit-making year shall be the first tax year when it starts to
make profits. In case the enterprise is run at a loss at the beginning, the balance may be made up on a year basis under the provisions
of taxation laws. Its first profit-making year shall be the tax year when it can offset the losses and begins to make profits.

As for any Chinese-funded enterprise that enjoys the tax preferential policy for two-year exemption of enterprise income tax as of
the year when it begins business operation, it can enjoy the preferential policy till the expiration and may not enjoy any preferential
policy for the exemption of enterprise income tax any more within 2 years as of its profit-making year.

The present Notice shall go into effect as of January 1, 2006. Where any related provision conflicts with the present Notice, the
present Notice shall prevail. Where the state makes any further reform on the tax collection system, the related tax preferential
policies shall be implemented under the updated provisions on tax collection.

Please carry them out accordingly.

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

The State Administration of Taxation

September 8, 2006

The Ministry of Finance, the State Administration of Taxation
2006-09-08

THE QUANTITY, THE APPLICATION CONDITIONS AND THE PRINCIPLE OF THE DISTRIBUTION OF THE IMPORT TARIFF QUOTAS OF GRAIN AND COTTON OF 2007

Announcement of National Development and Reform Commission

No. 64

“The Quantity, Application Conditions and Principle of the Distribution of the Import Tariff Quotas of Grain and Cotton” of 2007 is
formulated in accordance with the “Interim Measures for Administration of Tariff Quota of Import of Agricultural Products” and is
hereby promulgated.

Appendix: The Quantity, Application Conditions and Principle of the Distribution of the Import Tariff Quotas of Grain and Cotton in
2007

National Development and Reform Commission of PR. China

September 18, 2006

The Quantity, the Application Conditions and the Principle of the Distribution of the Import Tariff Quotas of Grain and Cotton of
2007

According to the “Interim Measures for the Administration of the Import Tariff Quotas of Agricultural Products” (Decree No.4 of the
Ministry of Commerce and the National Development and Reform Commission of 2003), issues concerning the quantity, the application
conditions and the principle of the distribution of the import tariff quotas of grain and cotton of 2007 are hereby promulgated as
follows:

The quantity of the import tariff quotas of grain and cotton of 2007 is: 9.636 million tons of wheat, of which the state-run trade
reaches 90%; 7.2 million tons of corn, of which the state-run trade reaches 60%; 5.32 million tons of rice (among which: 2.66 million
tons of long-grain rice, 2.66 million tons of medium-and-short-grain rice), of which the state-run trade reaches 50%; 8.94 tons of
cotton, of which the state-run trade reaches 33%.

Any enterprise that imports the aforesaid agricultural products in such trade forms as general trade, processing trade, barter trade,
small amount of border trade, assistance, donation, shall apply for the import tariff quotas of agricultural products, and handle
the formalities of Customs clearance by virtue of the certificate of the import tariff quotas of agricultural products. The products
entering bonded warehouses, bonded areas and export-oriented processing areas from abroad, shall be exempted from applying for the
certificate of the import tariff quotas of agricultural products.

The fundamental conditions of the applicant who applies for the import tariff quotas of agricultural products are: Having registered
with the administration for industry and commerce of the state (a copy of the business license of the enterprise as a legal person
is required); Having good financial situation and tax payment record (it is necessary to provide relevant materials of 2005and 2006);
having no violation record in the field of the customs, industry and commerce, taxation, as well as inspections and quarantines from
2004 to 2006; having passed the annual examination of enterprises of 2005; committing no violation of the “Interim Measures for the
Administration of the Import Tariff Quota of Agricultural Products”.

On the premise of the above-mentioned conditions, the applicant of import tariff quotas shall also conform to one of the following
conditions:

(1)

. Wheat

(a)

State-run trade enterprise

(b)

Enterprise directly under the Central Government that has the function of national reserves;

(c)

Enterprise with actual achievements in import in 2006;

(d)

Manufacturing enterprise processing more than 400 tons of wheat every day; or

(e)

Enterprise which is engaged in processing trade in which wheat is taken as raw materials, and which has no actual achievements in
import in 2006, but is enpost_titled to operate the import and export business and has obtained the certificate of the productive capacity
of processing trade issued by the local competent department of foreign trade and economic cooperation.

(2)

. Corn

(a)

State-run trade enterprise;

(b)

Enterprise directly under the Central Government that has the function of national reserves;

(c)

Enterprise with actual achievements in import in 2006;

(d)

Mixed fodder manufacturing enterprise that takes corn as raw materials and has an annual demand of more than 50 thousand tons of
corn;

(e)

Other manufacturing enterprise that takes corn as raw materials and has an annual demand of more than 100 thousand tons of corn;
or

(f)

Enterprise which is engaged in processing trade in which wheat is taken as raw materials, and which has no actual achievements in
import in 2006, but is enpost_titled to operate in the import and export business and has obtained the certificate of the productive capacity
of processing trade issued by the local competent department of foreign trade and economic cooperation.

(3)

. Paddy and rice (respective application for long-grain rice and medium-and-short-grain rice is required)

(a)

State-run trade enterprise;

(b)

Enterprise directly under the Central Government that has the function of national reserves;

(c)

Enterprise with actual achievements in import in 2006;

(d)

Enterprise which has grain wholesale and retail qualifications and whose annual sale amount is more than 100 million RMB;

(e)

Trade enterprise whose annual amount of import and export grain is more than 25 million US dollars; or

(f)

Enterprise which is engaged in processing trade in which paddy and rice are taken as raw materials, and which has no actual achievements
in import in 2006, but is enpost_titled to operate in the import and export business and has obtained the certificate of the productive
capacity of processing trade issued by the local competent department of foreign trade and economic cooperation.

(4)

. Cotton

(a)

State-run trade enterprise;

(b)

Enterprise with actual achievements in import in 2006; or

(c)

Cotton and textile enterprise with more than 50 thousand ingots of weaving equipments;

The import tariff quotas of the above-mentioned agricultural products will be distributed in accordance with the applicant’s application
quantities, historic actual achievements in import, productive capacity, and other relevant commercial standards.

(1)

. If the quantity of the import tariff quotas may satisfy the overall application quantity of the eligible applicants, the quantity
of the import tariff quotas shall be distributed according to the applicant’s application quantity.

(2)

. If the quantity of the import tariff quotas can not satisfy the overall application quantity of the eligible applicants, the applicants
with actual achievements in import may have priority in obtaining quotas, while the applicants without actual achievements in import,
mainly based on their processing capacity or operation quantity, shall be distributed the import tariff quotas in proportion. If
the application quantity is less than the quantity distributed in proportion, the distribution shall accord with the application
quantity.

The date of application of the import tariff quotas of grain and cotton in 2007 shall be from October 15 to October 30, 2006. The
applicants may obtain the “application form of the import tariff quotas of agricultural products” (See the appendix) from the institution
entrusted by the National Development and Reform Commission or download it in the website of the National Development and Reform
Commission (https://www.ndrc.gov.cn), and shall fill it in truthfully.

The institution entrusted by the National Development and Reform Commission shall be responsible for accepting enterprises’ applications
within its territory, and submit the applications that conform to the publicly announced conditions to the National Development and
Reform Commission prior to November 30, 2006. At the same time, a copy of aforesaid application shall be submitted to the Ministry
of Commerce.

The National Development and Reform Commission shall distribute the import tariff quotas of agricultural products to the final users
via the entrusted institutions prior to January 1, 2007.

Appendix: the Application Form of the Import Tariff Quotas of Agricultural Products

National Development and Reform Commission
2006-09-18

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE PILOT WORK CONCERNING THE TRANSFER OF THE EXAMINATION AND APPROVAL POWER ABOUT THE TAX REFUND (EXEMPTION) FOR EXPORTED GOODS TO THE LOWER LEVELS

Circular of the State Administration of Taxation on the Pilot Work Concerning the Transfer of the Examination and Approval Power about
the Tax Refund (Exemption) for Exported Goods to the Lower Levels

Guo Shui Han [2006] No.891

The state tax bureau of each province, autonomous region, municipality directly under the Central Government and each city specifically
designated in the state plan,

After the Circular of the State Administration of Taxation on Conducting the Pilot Work concerning the Transfer of the Examination
and Approval Power about the Tax Refund (Exemption) for Exported Goods to the Lower Levels (Guo Shui Han [2006] No.502) has been
delivered to the lower levels, the pilot reform entities of examination and approval power about the tax refund (exemption) for exported
goods are determined in all regions. The relevant matters about the export tax refund (exemption) administration in the pilot work
of all the regions are herby notified as follows:

After the examination and approval power about the tax refund (exemption) for exported goods reaches the taxation authority at the
level of pilot county (district, banner and county-level city, similarly hereinafter), the taxation authority at the level of districted
city or autonomous prefecture or above (hereinafter referred to as the municipal taxation authority) shall highlight its administrative
functions, and gradually shift its work emphasis to the export tax refund administration. Meanwhile, the municipal taxation authority
shall regularly conduct random inspections to examination and approval of tax refund (exemption) for exported goods by the county-level
taxation authority.

If there are some matters about the examination and approval of tax refund (exemption) for exported goods such as the postpone of
the declaration of tax refund (exemption) for exported goods or the postpone of the issuance of a certificate on entrusted export
of an export enterprise in a pilot area and so on, it shall, unless otherwise stipulated, still be examined and approved by the taxation
authority at the municipal level or above.

A pilot county-level taxation authority shall, by guaranteeing the quantity and quality of full-time management staffs for export
tax refund, ensure the requirements for the pilot work be met, and keep the full-time management staffs for export tax refund relatively
stable.

The provincial or municipal taxation authority shall strengthen the training of management staffs for export tax refund of the county-level
taxation authority, try to enhance their comprehensive quality and working ability, and shall, within one or two years, conduct a
comprehensive training to all the management staffs for export tax refund of the county-level taxation authority.

Each taxation authority at the provincial level shall closely watch the conditions on the pilot reform of examination and approval
power about tax refund (exemption) for exported goods, grasp the pilot entities’ conditions of examination and approval, summarize
the experiences for the pilot work regularly, and make a report about the problems encountered in the pilot work to (the Department
of Import and Export Tariffs of) the General Administration of Taxation in a timely manner.

The State Administration of Taxation

September 28, 2006

The State Administration of Taxation
2006-09-28

ANNOUNCEMENT NO.83, 2006 OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.83, 2006 of the Ministry of Commerce of the People’s Republic of China

[2006] No.83

According to the requirement of the Announcement 69, 2006 of National Development and Reform Commission, Ministry of Commerce and
Ministry of Finance, part of national reserved sugar will be launched by means of Competitive Bidding. The details are now notified
as follows:

The Organization and Management of Competitive Bidding

(1)

Ministry of Commerce shall be in charge of the management of Competitive Bidding

(2)

China Merchandise Reserve Management Center shall be in charge of the specific implementation of Competitive Bidding.

(3)

Competitive Bidding shall be publicly conducted by electronic network system of China Merchandise Reserve Management Center

Amount, Time and Location of Competitive Bidding

(1)

Total amount is 80,000 tons. Competitive Bidding shall be conducted at the time from 9am-17pm on October 13, 2006.

The specific situations shall be notified later.

(2)

Location: Sugar Exchange of China Merchandise Reserve Management Center, Beijing

Bottom price of Competitive Bidding

Bottom Price is 3400 yuan per ton.

Processing Requirements:

All the raw sugar in the competitive bidding shall be processed into national-standard product sugar before November 15, 2006.

Exchange Mode of Competitive Bidding

(1)

The exchange shall be conducted in accordance with exchange regulations for Competitive Bidding of National Reserve of Sugar. Each
share of Competitive Bidding of raw sugar is 5000 tones. If the overplus in stock is less than 10,000 tons, it shall be considered
as one share.

(2)

Member of the Competitive Bidding shall have the identity confirmed. Members shall sign up before 12: 00 October 12, 2006 so as to
participate in the Competitive Bidding.

For more related information, please check www.scyxs.mofcom.gov.cn.

Ministry of Commerce

October 11, 2006

The Ministry of Commerce
2006-10-11

CIRCULAR OF MINISTRY OF FINANCE, GENERAL ADMINISTRATION OF CUSTOMS AND STATE ADMINISTRATION OF CUSTOMS ON DISTRIBUTING THE REGULATIONS OF EXEMPTING THE IMPORT TARIFFS OF MATERIALS FOR THE COALBED METHANE PROSPECTING AND EXPLOITING

Circular of Ministry of Finance, General Administration of Customs and State Administration of Customs on Distributing the Regulations
of Exempting the Import Tariffs of Materials for the Coalbed Methane Prospecting and Exploiting

Cai Guan Shui [2006] No. 13

China United Coalbed Methane Co., Ltd.:

The Regulations of Exempting the Import Tariffs of Materials for the Coalbed Methane Prospecting and Exploiting is hereby distributed
and please follow it.

Appendix: Regulations of Exempting the Import Tariffs of Materials for the Coalbed Methane Prospecting and Exploiting

Ministry of Finance

General Administration of Customs

State Administration of Customs

October 25, 2006
Appendix:
Regulations of Exempting the Import Tariffs of Materials for the Coalbed Methane Prospecting and Exploiting

The current regulations are formulated in accordance with the spirits of the State Council of reserving and adjusting the tariff and
import-stage value-added tax exemption policy on imported materials for coalbed methane prospecting and exploiting programme of the
Eleventh Five-Year Period, and of moderately enlarging the scope of enterprises which enjoy the exemption.

II.

China United Coalbed Methane Co., Ltd. and its collaborators at home and abroad (hereinafter referred to as China United Coalbed Methane
Co., Ltd.) will, in case of conducting any coalbed methane prospecting and exploiting programme within China, be exempted from the
import tariffs and import-stage value-added tax for the imported equipment, apparatus, parts and accessories and special instruments
directly used in prospecting and exploiting which have not be produced in China or whose domestic counterparts fail to meet the requirements
(see the list of the materials involved at the end).

Other entities engaged in coalbed methane prospecting and exploiting shall file an application to the Ministry of Finance before the
import takes place. They will only enjoy the preferential policies of import tariffs with the confirmation of Ministry of Finance,
General Administration of Customs and State Administration of Customs.

III.

China United Coalbed Methane Co., Ltd. and other confirmed coalbed methane prospecting and exploiting entities shall report all the
coalbed methane prospecting and exploiting programmes to the Ministry of Finance. Only after the examination of Ministry of Finance,
General Administration of Customs and State Administration of Customs may these entities go through the necessary procedures of import
in the local customs.

IV.

The importing entities shall, when going through the exemption procedures, show the list of materials examined by China United Coalbed
Methane Co., Ltd. and other confirmed entities to the customs and report the corresponding programmes that have been examined. The
specific procedures of operation and supervision will be formulated by the General Administration of Customs separately.

The attached List of Tariff-Exempted Materials Imported for Coalbed Methane Prospecting and Exploiting (hereinafter referred to as
the List of Tariff-Exempted Materials) include the tariff codes, name of goods and technical index and the latter two shall be in
line with the actual uses. The List of Tariff-Exempted Materials can be adjusted by Ministry of Finance, General Administration of
Customs and State Administration of Customs. The customs will, when examining the exemption of imported goods, take the name and
technical index of the goods on the List of Tariff-Exempted Materials as the standard should any inconsistency occurs.

VI.

The equipment, apparatus, parts and accessories and special instruments unlisted in the List of Tariff-Exempted Materials while imperative
for the coalbed methane prospecting and exploiting shall be examined and confirmed by General Administration of Customs together
with the Ministry of Finance and State Administration of Customs.

VII.

China United Coalbed Methane Co., Ltd. and other coalbed methane prospecting and exploiting entities will be exempted from the import
tariffs for importing materials on the List of Tariff-Exempted Materials. The customs will put the materials under the procedures
of temporarily admitted goods when processing them. Should the time for temporarily admitted goods has expired but the goods are
still needed, the customs may approve the extension of use and the tariffs will be exempted within the time limits of temporarily
admitted goods (including the extended goods).

VIII.

The materials that have been imported in the form of lease may be exempted from the import tariffs according to the present regulations
should they fall into the scope of the List of Tariff-Exempted Materials; otherwise import tariffs shall be paid.

IX.

With the approval of the customs, tariff-exempted materials imported according to the present regulations may be devolved or transferred
between different confirmed coalbed methane prospecting and exploiting programmes, or used for the disposal of colliery gas or for
emergency dealing and disaster relief. The specific procedures of operation and supervision will be formulated by the General Administration
of Customs separately.

Tariff-exempted materials imported for coalbed methane prospecting and exploiting shall not be mortgaged, impawned, transferred, made
other use of or disposed otherwise. Any violation will lead to due penalties according to the relevant laws and regulation of the
state.

XI.

China United Coalbed Methane Co., Ltd. and other coalbed methane prospecting and exploiting entities shall report to the Ministry
of Finance the list of actually imported materials as well as their value and the amount of exempted tariffs and send a copy to the
General Administration of Customs and State Administration of Customs.

XII.

The present regulations shall be interpreted by Ministry of Finance, General Administration of Customs and State Administration of
Customs.

XIII.

The present regulations shall be practiced from January 1, 2006 to December 31, 2010.

Appendix: List of Tariff-Exempted Materials Imported for Coalbed Methane Prospecting and Exploiting (omitted)

Ministry of Finance, General Administration of Customs, State Administration of Customs
2006-10-25

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German Laws

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

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

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE LEVY OF STAMP TAX ON AMWAY (CHINA) CO., LTD.

MEASURES FOR THE ADMINISTRATION ON WORK SAFETY OF COMPLETE FOREIGN AID PROJECTS (FOR TRIAL IMPLEMENTATION)

PROVISIONS OF THE MINISTRY OF COMMERCE ON ANNOUNCING AND QUESTIONING THE BID EVALUATION RESULTS OF FOREIGN-AID PROJECTS

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE INTERPRETATION OF RELATED ISSUES CONCERNING DEED TAX POLICIES FOR ENTERPRISE REORGANIZATION AND RESTRUCTURING

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING RELATED SPECIFIC ISSUES IN RESPECT OF THE IMPLEMENTATION OF THE POLICIES ON ADJUSTING THE WAGES SUBJECT TO ENTERPRISE INCOME TAX

NOTICE OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE PREFERENTIAL POLICIES FOR ENTERPRISE INCOME TAXES OF TECHNICAL INNOVATION ENTERPRISES

THE QUANTITY, THE APPLICATION CONDITIONS AND THE PRINCIPLE OF THE DISTRIBUTION OF THE IMPORT TARIFF QUOTAS OF GRAIN AND COTTON OF 2007

CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE PILOT WORK CONCERNING THE TRANSFER OF THE EXAMINATION AND APPROVAL POWER ABOUT THE TAX REFUND (EXEMPTION) FOR EXPORTED GOODS TO THE LOWER LEVELS

ANNOUNCEMENT NO.83, 2006 OF THE MINISTRY OF COMMERCE OF THE PEOPLE’S REPUBLIC OF CHINA

CIRCULAR OF MINISTRY OF FINANCE, GENERAL ADMINISTRATION OF CUSTOMS AND STATE ADMINISTRATION OF CUSTOMS ON DISTRIBUTING THE REGULATIONS OF EXEMPTING THE IMPORT TARIFFS OF MATERIALS FOR THE COALBED METHANE PROSPECTING AND EXPLOITING

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