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INTERIM MEASURES FOR THE ADMINISTRATION OF BOND LENDING AND BORROWING BUSINESS IN THE NATIONAL INTER-BANK BOND MARKET

Announcement of the People’s Bank of China

[2006] No.15

For the purpose of regulating the bond lending and borrowing business, safeguarding the legitimate rights and interests of market
participants, enhancing the market liquidity and improving the development of China’s bond market, the Interim Measures for the Administration
of Bond Lending and Borrowing Business in the National Inter-Bank Bond Market, which are formulated by the People’s Bank of China,
are hereby promulgated.

People’s Bank of China

November 2, 2006

Interim Measures for the Administration of Bond Lending and Borrowing Business in the National Inter-Bank Bond Market

Article 1

These Provisions are formulated according to the Law of the People’s Republic of China on the People’s Bank of China and the relevant
laws and administrative regulations for the purpose of regulating the bond lending and borrowing business directly performed among
the participants of national inter-bank bond market (hereinafter referred to as market participants), safeguarding the legitimate
rights and interests of market participants, enhancing market liquidity and improving the further development of bond market.

Article 2

Bond lending and borrowing business hereof referred to in these Measures is an act of bond accommodation that the bond receiver borrows
object bonds from the bond provider with pledge of certain quantity bonds, and simultaneously stipulate that the bond receiver shall
return the borrowed bonds and the bond provider shall return the pledge accordingly on a certain day in the future.

Article 3

All market participants may perform the bond lending and borrowing business.

Market participants shall, when engaging in the bond lending and borrowing business, abide by the principles of fairness, good faith
and undertaking risks by themselves, strengthen the corresponding management on internal authorization and external credit granting,
establish corresponding inner management system and operational procedure, and perfect the risk prevention mechanism.

Article 4

The object bonds in bond lending and borrowing shall be self-owned bonds by the bond provider and may be traded and circulated in
national inter-bank bond market.

Article 5

The term of bond lending and borrowing shall be determined by both parties of the lending and borrowing business through negotiation,
which shall not be more than 365 days at most.

Article 6

If the payment of interest on the object bonds occurred in the term of bond lending and borrowing, the bond receiver shall timely
return the interest of the object bonds to the bond provider.

Article 7

The receiver of bond lending and borrowing business shall pay fees for bond lending and borrowing to the provider, the standard of
charging rates shall be determined by both parties through negotiation.

Article 8

A market participant, when engaging in bond lending and borrowing business, may conclude a deal through the trading system of the
National Inter-Bank Funding Center (hereinafter referred to as Funding Center) or through telephone, fax and other methods. Where
the bond lending and borrowing business is not conducted through the Funding Center, both parties of the lending and borrowing business
shall register and filing at the local branch of the People’s Bank of China on the day when the deal is concluded, and send a copy
to the Funding Center at the same time. China Government Securities Depository Trust & Clearing Co. Ltd. (hereinafter referred
to as CDC) shall be in charge of the settlement of bond lending and borrowing. Both parties of the lending and borrowing business
shall send settlement instruction to the CDC on the day when the deal is concluded.

Article 9

Market participants, when engaging in bond lending and borrowing business, shall sign a lending and borrowing contract in written
form for each deal. The lending and borrowing contract shall stipulate specifically the name and quantity of the object bond, name
and quantity of the pledged bond, term of the bond lending and borrowing business, fees for bond lending and borrowing business,
replacement of pledged bond, payment of interest of the borrowed bonds during the lending and borrowing period and the solution of
dispute, and etc.

Article 10

When market participants engages in bond lending and borrowing business, the bond receiver shall provide full amount bonds to the
bond provider as pledge, and the pledged bonds shall be self-owned bonds that are entrusted to CDC for depository.

Article 11

The delivery of bond lending and borrowing shall be performed with object bonds When the time limit is due, however, it may be performed
with cash upon the negotiation and consent of both parties of the lending and borrowing business.

Article 12

Where the balance received by a single institution from bond lending and borrowing business exceeds 30% (including 30%) of the total
of its self-owned bonds entrusted or since the balance received from a single bond exceeds 15% (including 15%) of the quantity issued
of this bond, if every 5% increases, the said institution shall submit reports in written form to the Funding Center and CDC simultaneously
and explain the reasons.

Article 13

Where there is any breach of contract in a bond lending and borrowing business, both parties of the lending and borrowing business
may apply for arbitration or take legal proceedings at the people’s court in accordance with the stipulations in the contract, and
shall, before 12:00 of the next workday since the receipt of the final result of arbitration or litigation, submit the final result
to the Funding Center and CDC, the Funding Center and CDC shall make an announcement with respect to the result thereon on the day
when the final result is received.

Article 14

The Funding Center and CDC shall, in accordance with the provisions and authorizations of the People’s Bank of China, provide trading
and settling services for market participants engaging in bond lending and borrowing business, formulate corresponding rules about
the trading and settling of bond lending and borrowing business under these Provisions and implement the rules after reporting them
to the People’s Bank of China for filing.

Article 15

The Funding Center and CDC shall, pursuant to the provisions and authorizations of the People’s Bank of China, timely reveal the
relevant information on bond lending and borrowing to market participants, but may not divulge non-public information or mislead
the market participants.

Article 16

The Funding Center and CDC shall establish and perfect the corresponding risk monitoring system and pre-alert indicator system. The
Funding Center shall be in charge of the routine monitoring work on bond lending and borrowing trading, and CDC shall be responsible
for the routine monitoring work on bond lending and borrowing settling, they shall initiate the emergency mechanism where any unusual
circumstance is found and report to the People’s Bank of China.

The Funding Center and CDC shall submit the written report about the analysis of operation situation of bond lending and borrowing
business of the quarter within 10 workdays upon the end of each quarter.

Article 17

All branches of the People’s Bank of China shall enhance the communication with the Funding Center and CDC, and implement the routine
supervision and administration on the bond lending and borrowing business performed by market participants that come under their
jurisdiction.

Article 18

Where a market participant or the Funding Center or CDC violates these Provisions, it shall be penalized by the People’s Bank of
China subject to the provision of Article 46 of the Law of the People’s Republic of China on the People’s Bank of China.

Article 19

These Measures are subject to the interpretation of the People’s Bank of China.

Article 20

These Provisions shall enter into effect as of November 20, 2006.



 
People’s Bank of China
2006-11-02

 






REQUIREMENTS AND PROCEDURES FOR APPLYING FOR THE EXPORT QUOTA OF RARE EARTH IN 2007

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

No.85

For purposes of further strengthening administration on export of rare earth and regulating the order of export operation, the Requirements
and Procedures for Applying the Export Quota of Rare Earth in 2007 is hereby announced in accordance with related regulations of
Foreign Trade Law of the People’s Republic of China and Regulation of the People’s Republic of China on the Administration of the
Import and Export of Goods, and foreign-invested enterprises are excluded.
The Ministry of Commerce

November 10, 2006

Requirements and Procedures for Applying for the Export Quota of Rare Earth in 2007

1.

Requirements for Applying for the Export Quota of Rare Earth in 2007

Enterprises which meet requirements as follows may apply for the export quota of rare earth in 2007:

(1)

As for manufacturing enterprises:

(a)

to have registered at the competent administrative departments of industry and commerce in accordance with relevant state rules and
regulations, to have obtained the operation qualification of import and export or have gone through the formalities of record keeping
and registration of foreign trade operators, and to have independent legal personality; enterprises which registered after 2005 shall
be approved by the state competent authorities and present relevant certificates;

(b)

to comply with the access standards and relevant policies on the rare earth industry; the export volume in 2005 to have exceeded 2000
tons or the export value to have exceeded 30 millions RMB Yuan;

(c)

the annual average export volume of rare earth for the past three years (2003-2005) to have exceeded 700 tons or the annual average
export value to have exceeded 4 million US dollars (on the basis of the statistics of the customs) if requirements in Item (b) are
not fulfilled;

(d)

the quality of the products to meet the existing national standards and the enterprises to gain registration to ISO9000 Quality Management
System;

(e)

to have environmental protection facilities suited to their production scale, to meet relevant local or national standards for the
discharge of pollutants, to be evaluated and approved by the competent departments of environmental protection above the provincial
level and to issue the environment monitoring report on the discharge up to the standard of the current year;

(f)

to comply with relevant state policies and regulations on land management;

(g)

in accordance with relevant laws and regulations of the country, to purchase various social insurances, such as endowment insurance,
employment insurance, medical insurance, industrial injury insurance and maternity insurance, to pay social insurance premiums on
time and in full, and to present relevant certificates on that issued by local departments of labor and social security; and

(h)

not to break relevant laws or regulations of the country.

(2)

As for circulation enterprises:

(a)

to have registered at the competent administrative departments of industry and commerce according to relevant state rules and regulations
and have obtained the operation qualification of import and export or gone through the formalities of record and registration of
foreign trade operators and to be with independent legal personality;

(b)

the registered capital to exceed 5 million RMB Yuan, and the annual average export volume of rare earth for the past three years (2003-2005)
to have exceeded 700 tons or the annual average export value to have exceeded 4 million US dollars (on the basis of the statistics
of the customs);

(c)

as of the implementation of the aforementioned standards for manufacturing enterprises, the export products to be manufactured by
enterprises which comply with Paragraphs 1, 4, 5, 6, 7, and 8, and the enterprises to present relevant documents on the qualification
of the source enterprises for manufacturing the products, relevant VAT invoices and the certificate of the source of products;

(d)

in accordance with relevant laws and regulations of the country and related provisions of the local government, to purchase various
social insurances in accordance with law, such as endowment insurance, employment insurance, medical insurance, industrial injury
insurance and maternity insurance, to pay social insurance premium on time and in full, and to present relevant certificates on that
issued by local departments of labor and social security; and

(e)

not to break relevant laws or regulations of the country.

(3)

Where the main producing areas of rare earth in western areas of the country without any enterprise qualified for application, the
governments of provinces, autonomous regions or municipalities may recommend no more than 3 manufacturing enterprises which have
considerable export volume in the past 3 years (2003-2005) and shall then be evaluated and confirmed by the competent state departments
and an authorized panel of experts.

(4)

The main producing areas of rare earth in western areas of the country with 3 or more than 3 enterprises which meet the requirements
mentioned in Paragraphs (1) and (2) shall not enjoy the preferential policy as prescribed in Paragraph 3; those with less than 3
such enterprises may recommend more according to Paragraph 3, but the total number (the number of enterprises which meet the aforementioned
requirements plus the number of the recommendations) shall not exceed 3.

(5)

The export of rare earth by foreign-invested enterprises shall be conducted according to the existing regulations.

2.

Procedures for Application and Confirmation

Local rare earth exporting enterprises shall file an application to the competent commerce departments in provinces, autonomous regions,
municipalities directly under the Central Government and Xinjiang Production and Construction Corps (hereinafter referred to as provincial
competent department of commerce). The provincial competent department of commerce shall have a preliminary qualification examination
for them according to the aforementioned requirements, submit the name list of the local qualified exporting enterprises and the
written opinions of the preliminary examination (with the related materials of the enterprise attached) to the Ministry of Commerce
before November 15, 2006, and send a copy to China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters.

Enterprises administrated by the central government submit their applications and relevant materials directly to the Ministry of Commerce,
and send a copy to China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters.

The Ministry of Commerce entrusts China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters with reconfirmation.
China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters shall offer overall suggestions to the reconfirmed
local rare earth exporting enterprises and those administrated by the central government, and submit the suggestions to the Ministry
of Commerce before November 25, 2006.

The Ministry of Commerce shall examine and approve the enterprises applying for export quota of rare earth according to the reconfirmation
opinions of China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters, and make an announcement of the
enterprises which meet the standards.

3.

Documents Needed for Application

Local rare earth exporting enterprises and those administrated by the central government shall, when filing applications to the provincial
competent department of commerce or the Ministry of Commerce, submit documents as follows with the signature of the legal representative
for confirmation:

(1)

A copy of the duplicate of business license for legal entities, Registration Form for Foreign Trade Operators with the seal of registration
or Qualification Certificate of Importing and Exporting Enterprise of People’s Republic of China, and their Customs code and enterprise
code;

(2)

Certificate for Discharge up to the Standard or the examination opinions on the environmental impact report issued by the competent
department of environmental protection above the provincial level, and the evaluation report of the current year on environment monitoring
issued by the provincial competent department of environmental protection;

(3)

Registration to ISO9000 Quality Management System;

(4)

Manufacturing enterprises shall present certificates or documents for 2005 as follows: the certificate of tax exemption & credit
or the original Application Form for Exemption Credit & Refund with a seal of the tax authority, the Export Customs Declaration
(the duplicate) and the Verifying and Writing-off Instrument (the duplicate) for those who export their own goods; the original VAT
invoice issued under the supervision of the state tax bureau, the Export Customs Declaration (the duplicate) and the Verifying and
Writing-off Instrument (the duplicate) for those whose products are purchased and exported by exporting enterprises; the original
exporting invoice, the Export Customs Declaration (the duplicate), the Verifying and Writing-off Instrument (the duplicate) and the
Agent Certificate for Export of Commodities (the duplicate) for those who have exporting enterprises as their export agents.

Circulation enterprises shall present: the original VAT invoice or the original export invoice, the Export Customs Declaration (the
duplicate), the Verifying and Writing-off Instrument (the duplicate) and the Agent Certificate for Export of Commodities (the duplicate)
issued by the tax bureau.

Enterprises which newly apply for export quota of rare earth shall present relevant materials for the past three years (2003-2005),
and those which have obtained the export quota of rare earth for 2006 are only to present relevant materials for 2005.

(5)

Manufacturing enterprises shall present legal certificate issued by the competent department of land management approving the use
of land.

(6)

Certificate of payment for social insurances issued by the local competent department of labor and social security.



 
The Ministry of Commerce
2006-11-10

 






URGENT CIRCULAR OF THE MINISTRY OF COMMERCE ON STRENGTHENING THE STATISTICAL WORK OF CHINA’S OUTWARD FOREIGN DIRECT INVESTMENT

Urgent Circular of the Ministry of Commerce on Strengthening the Statistical Work of China’s Outward Foreign Direct Investment

Shang He Han [2006] No. 66

The commerce departments of all provinces, autonomous regions, municipalities directly under the central government, cities specifically
designated in the state plan and Xinjiang Production and Construction Corps, and the relevant enterprises directly under the central
authorities,

Since the implementation of the Statistical System of Direct Overseas Investment in effect as of January 2003, the statistical work
of China’s outward foreign direct investment, under the active cooperation and earnest support of the commerce departments at each
level and relevant enterprises and entities, has been getting along smoothly. The Ministry of Commerce has so far, in conjunction
with the National Bureau of Statistics, promulgated the Statistical Bulletin of China’s Outward Foreign Direct Investment (Non-Finance
Part) of 2003, 2004 and 2005. China’s outward foreign direct investment statistics data have been drawing wide attention from the
government departments, research institutions, experts and scholars throughout the world. For the purpose of further doing well the
statistical work of China’s outward foreign direct investment in the next phase, the following requirements are hereby set forth.

1.

Each entity shall seriously and actively implement the Statistical System of Direct Overseas Investment, attach great importance to
the statistical work of the outward foreign direct investment, intensify the publicity of the statistical system, continuously improve
the quality of the statistical data and strengthen the timeliness and accuracy of data report.

2.

The commerce departments at the provincial level shall communicate with the local foreign exchange departments in an initiative and
active manner and establish the information exchange and contact mechanism therewith so as to guarantee that the outward foreign
direct investment be more comprehensive and complete.

3.

The statistical personnel shall intensify their study of professional knowledge and continuously improve their professional quality
and operational level. The statistical personnel shall start with studying the Statistical System of Direct Overseas Investment,
correctly understand the basic concepts and computation principle therein, and master the application program therein.

4.

The commerce departments at each level and enterprises (groups) directly under the central authorities shall, in serious accordance
with the time and format as provided for in the Statistical System of Direct Overseas Investment, assign the statistical work of
the outward foreign direct investment of 2006 for the enterprises under their jurisdiction and subsidiary enterprises thereof, well
organize and arrange the statistical work of the outward foreign direct investment of 2006 in advance. The comprehensiveness, completeness
and accuracy of the statistical indexes shall be emphasized. Such indexes that can reflect on the contribution of enterprises outside
the territory of China to the host country as the number of employed people in enterprises outside the territory of China, the total
amount of taxpaying overseas by enterprises outside the territory of China shall be emphatically examined. Reinvesting through tax
havens, if any, shall be seriously reported by enterprises concerned.

5.

The Ministry of Commerce will commend and reward those entities and individuals with outstanding performance in the statistical work.
Any act of delaying, falsifying, concealing or refusing the report of statistical data of the outward foreign direct investment shall
be circulated a report of criticism by the Ministry of Commerce and shall be imposed on a punishment by the statistics departments
at the county level or above in accordance with the relevant provisions of the Detailed Rules for the Implementation of the Statistics
Law of the People’s Republic of China. Furthermore, whether reporting statistical documents in accordance with the statistical system
in time, when the Ministry of Commerce formulates financial support policies in conjunction with other relevant departments and commissions,
shall be taken as one of the qualifications and conditions of enjoying the state policy support. Those reporting statistical data
otherwise not in a timely and comprehensive way will not enjoy the state policy suport.

Appendix: Form of Information on Reinvesting through Major Tax Havens by Domestic Investing Entities

The Ministry of Commerce

November 21, 2006



 
The Ministry of Commerce
2006-11-21

 






MEASURES FOR THE ADMINISTRATION OF THE CRUDE OIL MARKET

Order of the Ministry of Commerce

No.24

We hereby promulgate the Measures for the Administration of the Crude Oil Market, which were adopted upon the consensus of the leaders
of the Ministry of Commerce on December 4, 2006which shall enter into force as of January 1, 2007.
Minister of the Minister of Commerce Bo Xilai

December 4, 2006

Measures for the Administration of the Crude Oil Market
Chapter I General Provisions

Article 1

In order to enhance the administration of the crude oil market, regulate the business operation of crude oil, maintain the order
of the crude oil market and safeguard the legitimate rights and interests of the crude oil enterprises and consumers, we hereby formulate
the present Measures under the Decision of the State Council concerning Establishing Administrative License for the Administrative
Examination and Approval Items that Really Need to Be Preserved (Order No.412 of the State Council) and the related laws and administrative
regulations.

Article 2

Those engaging in the crude oil business activities within the territory of the People’s Republic of China shall comply with the
related laws and regulations and the present Measures.

The term “crude oil enterprises” as mentioned in the present Measures refers to the enterprises that engage in the crude oil distribution
or storage.

Article 3

The state applies a licensing system to the crude oil business activities.

The Ministry of Commerce shall take responsibility to draft the laws and regulations for the administration of the crude oil market,
draw up ministerial regulations and organize the implementation thereof, and supervise and administer the nationwide crude oil market
subject to law. The administrative departments of commerce of the people’s governments at each level shall take responsibility to
organize and coordinate the supervision and administration of the crude oil business activities within their respective jurisdictions.

Article 4

The term “crude oil” as mentioned in the present Measures refers to the crude oil exploited and produced at the territory of the
People’s Republic of China or the sea areas under the jurisdiction of the People’s Republic of China and the imported crude oil.

Chapter II Application for Crude Oil Business License and Its Acceptance

Article 5

For the purpose of applying for the qualification for engaging in the distribution or storage of crude oil, an enterprise shall submit
an application to the administrative department of commerce of the provincial people’s government of the place where it is located,
which shall examine and report the preliminary examination opinions along with the application materials to the Ministry of Commerce,
which shall decide whether to grant a license of crude oil distributing or storing or not.

Article 6

For the purpose of applying for the qualification to distribute crude oil, an enterprise shall satisfy the conditions as follows:

(1)

the applicant shall be a Chinese legal person with a registered capital of at least 100 million Yuan;

(2)

it shall have secular and steady channels to provide crude oil;

(a)

it is a crude oil exploitation enterprise that has obtained a Petroleum Mining License upon the approval of the State Council and
has actual output, or;

(b)

it is an import enterprise that has obtained the qualification to import crude oil and its annual import volume is at least 500,000
tons, or;

(c)

it is an enterprise that has signed, with either of the enterprises as stipulated above in a and b, an crude oil supply agreement
for one year or more that matches its business scale.

(3)

it shall have secular and steady and legal channels to distribute crude oil;

(4)

it shall have a crude oil depot whose capacity shall not be smaller than 200,000 steres and whose construction shall comply with the
local municipal planning and oil depot layout planning; the related departments in charge of state land and resources, planning and
construction, safety and supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection,
etc shall have checked and accepted the depot.

Article 7

An enterprise that applies for the qualification to store crude oil shall satisfy the conditions as follows:

(1)

the applicant shall be a Chinese legal person with a registered capital of at least 50 million Yuan;

(2)

it shall have a crude oil depot whose capacity shall not be smaller than 500,000 steres and whose construction shall comply with the
local municipal planning and oil depot layout planning; the related departments in charge of state land and resources, planning and
construction, safety supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection,
etc shall have checked and accepted the depot ;

(3)

it shall be equipped such facilities to unload crude oil as conduit pipes, railway special lines or ports for transporting crude oil
on water and its capacity shall be larger than 50,000 tons.

Article 8

In order to establish a foreign-funded crude oil enterprise, the present Measures, the related state policies and the provisions
of the laws and regulations concerning foreign investment shall be complied with.

Article 9

An enterprise that applies for the qualification of distributing crude oil shall submit the documents as follows:

(1)

an application;

(2)

legal instruments and the related materials concerning its secular and steady crude oil supply;

(3)

legal instruments and the related materials concerning its secular, steady and legal channels for crude oil distribution;

(4)

the property right certificate of its crude oil depot and the supporting facilities; the approval certificates and acceptance documents
concerning the depot and other facilities released by the departments responsible for state land and resources, planning and construction,
safety supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection, etc;

(5)

Business License for Enterprise Legal Person or Circular for Advance Approval of Enterprise Name as released by the department of
industry and commerce;

(6)

Hazardous Chemical Business License as released by the department of safety supervision;

(7)

Approval Certificate of Foreign-funded Enterprise of the People’s Republic of China as for a foreign-funded enterprise;

(8)

Other documents required by the examination and verification organs.

Article 10

An enterprise that applies for the qualification of storing crude oil shall submit the documents as follows:

(1)

application document;

(2)

the property right certificate of its crude oil depot and the supporting facilities; the approval certificates and acceptance documents
concerning the depot and other facilities as released by the departments responsible for state land and resources, planning and construction,
safety supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection, etc;

(3)

certificates the property rights certificates of such facilities to unload crude oil as conduit pipes, railway special lines or ports
for transporting crude oil on water and its capacity shall be larger than 50,000 tons

(4)

Business License for Enterprise Legal Person or Circular for Advance Approval of Enterprise Name as released by the department of
industry and commerce;

(5)

Hazardous Chemical Business License released by the department of safety supervision;

(6)

Approval Certificate of Foreign-funded Enterprise of the People’s Republic of China as for a foreign-funded enterprise;

(7)

Other documents required by the organs of examination and verification.

Article 11

The conditions, procedures, time limit, list of the materials to be submitted, and model of application letter for applying for license
of crude oil distributing or storing at its work place shall be publicized by the administrative department of commerce at or above
the provincial level.

Article 12

In case an administrative department of commerce of the provincial people’s government that accepts an application considers that
the application materials are not accomplish or fail to be in line with the related provisions, it shall notify the applicant, once
and for all, of all the content that needs to be supplemented or corrected within five (5) workdays since receiving the application.
When the time limit expires and if it fails to notify the applicant, the application shall be deemed as having been accepted since
the date when the application materials are received.

Article 13

If the application materials are complete and comply with the stipulated form, or if the applicant has supplemented or corrected
all the application materials as required, the administrative department of commerce of the provincial people’s government shall
accept the application.

In case an administrative department of commerce of the provincial people’s government accepts an application, a written certificate
bearing the special seal of this administrative organ and an indication of the date shall be produced by it. In case it rejects an
application, it shall produce a written certificate, which bears the special seal of this administrative organ, explains the reasons
for the rejection and indicates the date, and shall also inform the applicant of the right to apply for administrative reconsideration
or to file an administrative lawsuit.

Chapter III Procedures and Time Limit of Crude Oil Distribution or Storage Licensing Examination

Article 14

Within twenty (20) workdays since receiving an application for distributing or storing crude oil submitted by an applicant, an administrative
department of commerce of the provincial people’s government shall finish the examination and report the preliminary examination
opinion and application materials to the Ministry of Commerce.

Article 15

The Ministry of Commerce shall, within twenty (20) workdays since receiving the application materials of the crude oil enterprise
reported by the administrative department of commerce of the provincial people’s government, finish the examination and verification.
In case the application meets the conditions prescribed in Article 6 of the present Measures, it shall grant a license for the distribution
of crude oil and release a Certificate of Approval for the Distribution of Crude Oil; in case the application meets the conditions
prescribed in Article 7 of the present Measures, it shall grant a license for the storage of crude oil and release a Certificate
of Approval for the Storage of Crude Oil. In case the application fails to meet the related conditions, it shall inform the applicant
in written form of the decision of disapproval, the reasons and the right to apply for administrative reconsideration or to file
an administrative lawsuit.

Upon the strength of the Certificate of Approval for the Distribution of Crude Oil or the Certificate of Approval for the Storage
of Crude Oil as issued by the Ministry of Commerce An enterprise shall implement the registration procedures at the administrative
organ for industry and commerce and the tax organ.

Article 16

In case a crude oil enterprise newly builds, rebuilds or expands the storage facilities, it shall report to the Ministry of Commerce
for record after implementing the acceptance procedures at the departments responsible for state land and resources, planning and
construction, safety and supervision, public security and fire-fighting, environmental protection, meteorology and quality inspection,
etc.

Article 17

In case the establishment of a foreign-funded enterprise or changing its business scope, or the M&A of domestic enterprise by
a foreign businessman engages in any crude oil business, it is necessary to send an application to the administrative department
of commerce of the provincial people’s government, which shall accomplish the examination within one month since the date of receiving
a complete set of application materials, and shall report the preliminary examination opinion and the application materials to the
Ministry of Commerce, which shall make a decision concerning whether to approve it or not within three months since the date of receiving
all the application documents.

Chapter IV Issuance and Change of the Approval Certificate for the Distribution or Storage of Crude Oil

Article 18

The Approval Certificate for the Distribution of Crude Oil and the Approval Certificate for the Storage of Crude Oil shall be uniformly
printed and released by the Ministry of Commerce.

Article 19

In case a crude oil enterprise intends to amend any item of the Approval Certificate for the Distribution of Crude Oil or the Certificate
of Approval for the Storage of Crude Oil, it shall send an application to the administrative department of commerce of the provincial
people’s government, which shall implement a preliminary examination and report the preliminary examination opinions and the application
materials to the Ministry of Commerce.

In case it meets the conditions to continue engaging in the crude oil business, the Ministry of Commerce shall released a new Approval
Certificate for the Distribution of Crude Oil or Certificate of Approval for the Storage of Crude Oil.

Article 20

In case a crude oil enterprise intends to change any item of the Approval Certificate for the Distribution of Crude Oil or the Approval
Certificate for the Storage of Crude Oil, it shall hand in the documents as follows:

(1)

as regards the change of enterprise name, the Circular for Advance Approval of Enterprise Name produced by the administrative department
for industry and commerce;

(2)

as regards the change of legal representative, employment certificate and identity certificate of the new legal representative;

(3)

as regards the change of business place that does not relate to the move of the warehousing and transportation facilities, certificate
concerning legal right of using the business place;

(4)

as regards the change of investment subject of the business entity, the original business entity shall implement the related procedures
for deregistering its business qualification, while the new business entity shall apply for the related qualification over again.

Chapter V Supervision and Administration

Article 21

The administrative departments of commerce of the people’s governments of each level shall enhance their supervision and inspection
of the crude oil market within their respective jurisdictions and investigate and punish the disobediences committed by crude oil
enterprises.

Article 22

The administrative departments of commerce of the provincial people’s governments shall, subject to the present Measures, organize
the inspection concerning the enterprises qualified to engage in the crude oil business every year and report the inspection results
to the Ministry of Commerce.

In case a crude oil enterprise that is found unqualified in the annual inspection, the Ministry of Commerce shall order it to rectify
within a certain time limit; in case it is still unqualified after the rectification, its qualification for engaging in crude oil
business shall be revoked.

Article 23

The major content of the annual inspection concerning an enterprise that distributes crude oil is as follows:

(1)

the crude oil operation of the enterprise in the previous year;

(2)

the conclusion and conduction of crude oil supply and distribution agreements;

(3)

whether the crude oil enterprise and its supporting facilities comply with the present Measures and the related technical specifications
and requirements;

(4)

the status quo of the enterprise concerning fire-fighting, security and environmental protection, etc.

Article 24

The major content of the annual inspection concerning an enterprise that stores crude oil is as follows:

(1)

the storage of crude oil of the enterprise in the previous year;

(2)

whether the crude oil storage enterprise and its supporting facilities comply with the present Measures and the related technical
specifications and requirements;

(3)

the status quo of the enterprise regarding fire-fighting, security and environmental protection, etc.

Article 25

A crude oil enterprise that is to suspend or stop its business shall implement the suspension or cancellation procedures with the
Ministry of Commerce. In case an enterprise that fails to implement the suspension or cancellation procedures without reason for
18 month or more, the Ministry of Commerce shall revoke its crude oil business license, cancel the Certificate of Approval for the
Distribution of Crude Oil or the Certificate of Approval for the Storage of Crude Oil and notify the related departments.

Article 26

The administrative departments of commerce of each level shall supervise and manage the crude oil business license and crude oil
market without collecting any fee.

Article 27

The Ministry of Commerce shall publicize the list of enterprises that have obtained a crude oil business license and the information
concerning the change or cancellation of any enterprise.

Article 28

The Approval Certificate for the Distribution of Crude Oil or the Approval Certificate for the Storage of Crude Oil must not be forged,
changed, traded, leased, lent or transferred in any other form. Any changed or cancelled Approval Certificate for the Distribution
of Crude Oil or Certificate of Approval for the Storage of Crude Oil shall be submitted to the Ministry of Commerce, any other entity
or individual must not remain it privately.

Article 29

A crude oil enterprise shall operate subject to law, any of the following acts is forbidden:

(1)

doing business without a certificate or license or with a certificate and license which are not coincident with each other or beyond
its authorized business scope;

(2)

mixing impurities or imitations, passing a fake product off as a genuine one or passing a defective product off as a high-quality
one;

(3)

distributing or storing the crude oil obtained through illegal channels;

(4)

distributing crude oil to the refining enterprises or distributing enterprises that have not been approved by the state or supplying
them with storage service ;

(5)

driving up oil prices or dumping oil at low prices by infringing the laws and regulations concerning price;

(6)

other business activities as forbidden by any law or regulation of the state.

Article 30

In case it is under any of the following circumstances, the Ministry of Commerce shall revoke the crude oil business license:

(1)

granting any license to an applicant that is unqualified or fails to satisfy the statutory requirements;

(2)

granting any license by exceeding the legal authority;

(3)

granting any license by infringing the statutory procedure;

(4)

a crude oil distributing enterprise failing to meet the conditions stipulated in Article 6 of the present Measures any more;

(5)

a crude oil storing enterprise failing to meet the conditions stipulated in Article 7 of the present Measures any more;

(6)

failing to take part in or pass the annual inspection;

(7)

the licensee having obtained the business license by such illegal ways as fraud or bribery;

(8)

hiding the related information, supplying false materials or refusing to supply the real materials that reflect its business activities;

(9)

other circumstances under which the administrative license shall be revoked under law.

Chapter VI Legal Liabilities

Article 31

In case any administrative department of commerce or any of its staff commits any of the following acts by infringing the present
Measures, the administrative department or supervisory department at a higher level shall order it/him to correct; as for serious
situation, the person in charge who is held directly responsible and other personnel directly responsible shall be given an administrative
punishment:

(1)

failing to accept an application that satisfies the statutory requirements;

(2)

failing to explain to an applicant the reasons of refusing to accept its application or to grant a license;

(3)

granting a license to an applicant not satisfying the statutory requirements or by exceeding the legal authority;

(4)

refusing to make an approval decision or failing to make, without justifiable reasons, such a decision within the statutory time limit
for an applicant satisfying the statutory requirements; and

(5)

failing to perform or effectively perform its supervision duty, which has resulted in serious consequences.

Article 32

In case any administrative department of commerce unlawfully charges fees in the process of granting crude oil business license,
it shall be ordered to refund the fees illegally charged and impose administrative punishment on the personnel in charge and the
personnel held directly responsible by the administrative department or supervisory department at a higher level.

Article 33

Where any crude oil enterprise commits any of the following acts, if there are specific provisions in any law or regulation, they
shall be followed; where there is no provision in the laws and regulations, the Ministry of Commerce shall give it an admonition
under law subject to the specific situation, order it to correct within a certain time limit, and impose a fine of at most three
times the illegal gains or 30,000 Yuan:

(1)

changing, reselling, leasing, lending or illegally transferring its certificate of approval for crude oil business in any other form;

(2)

newly building, rebuilding or expanding any crude oil depot without authorization by infringing the conditions and procedure stipulated
in the present Measures;

(3)

selling crude oil by mixing impurities or imitations, using a fake product as a genuine one, using a defective product as high-quality
one or passing an inferior product off as a standard one;

(4)

distributing or storing the crude oil obtained through illegal channels;

(5)

distributing crude oil to the refining enterprises or distributing enterprises that have not been approved by the state or supplying
them with storage service

(6)

distributing crude oil in violation of the laws and regulations concerning price of the state;

(7)

other illegal acts as stipulated in any law or regulation.

Article 34

In case any of the following acts are committed by an enterprise applying for the qualification of engaging in the crude oil business,
the Ministry of Commerce shall make a decision of rejecting its application or not granting a license and shall give it an admonition;
and the applicant may not apply for a crude oil business license again within one year.

(1)

hiding the real situation;

(2)

supplying any false materials;

(3)

infringing the related policies and application procedure, and the situation is serious.

Chapter VII Supplementary Provisions

Article 35

The foreign contractors that engage in Chinese-foreign cooperative exploitation of continental or offshore petroleum resources within
the territory of the People’s Republic of China shall comply with the related provisions in the Regulations of the People’s Republic
of China concerning Sino-foreign Cooperation in the Continental Petroleum Resources Exploitation and the Regulations of the People’s
Republic of China concerning the Offshore Petroleum Resources Exploitation in Cooperation with Foreign Enterprises.

Before the present Measures are released, the crude oil producing enterprises that have already been approved subject to law and conform
to the state policies shall apply for and obtain a Certificate of Approval for Crude Oil Business under the present Measures.

Article 36

The Ministry of Commerce is the authoritative interpreter of the present Measures.

Article 37

The present Measures shall enter into force as of January 1, 2007.



 
The Ministry of Commerce
2006-12-04

 






ANNOUNCEMENT NO. 107, 2006 OF THE MINISTRY OF COMMERCE ON PROMULGATING THE LIST OF THE STATE-OWNED TRADE EXPORT ENTERPRISES OF TUNGSTEN PRODUCTS, STIBIUM PRODUCTS AND SILVER IN 2007 AND LIST OF THE EXPORT SUPPLY ENTERPRISES OF TUNGSTEN PRODUCTS AND STIBIUM PRODUCTS IN 2007

Announcement No. 107, 2006 of the Ministry of Commerce on Promulgating the List of the State-owned Trade Export Enterprises of Tungsten
Products, Stibium Products and Silver in 2007 and List of the Export Supply Enterprises of Tungsten Products and Stibium Products
in 2007

[2006] No. 107

In accordance with Qualification Standards on State-owned Trade Export Enterprises of Tungsten Products, Stibium Products and Silver
and Qualification Standards on Export and Supply Enterprises of Tungsten Products and Stibium Products(Announcement No. 86, 2006
of the Ministry of Commerce), the list of the state-owned trade export enterprises of tungsten products, stibium products and silver
in 2007 and the list of the export supply enterprises of tungsten products and stibium products are hereby promulgated.

The Ministry of Commerce

December 11, 2006

List of the State-owned Trade Export Enterprises of Tungsten Products, Stibium Products and Silver in 2007 and List of the Export
Supply Enterprises of Tungsten Products and Stibium Products in 2007 (Omitted)



 
The Ministry of Commerce
2006-12-11

 






ANNOUNCEMENT NO.90, 2006 OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.90, 2006 of the National Development and Reform Commission of the People’s Republic of China

No.90, 2006

The National Development and Reform Commission of the People’s Republic of China has approved 107 industrial standards such as Spirulina
Iodine Salt (please refer to appendix for code, name and effective period of the standards, n), including 44 light industrial standards,
4 ferrous metallurgy industrial standards, 51 electric power industrial standards and 8 automobile industrial standards, which are
now announced.

The Light Industry Press House is responsible for publish of light industrial standards, Metallurgy Industry Press House responsible
for publish of ferrous metallurgy industrial standards, China Electric Power Press is in charge of electric power industrial standards
and China Planning Press in charge of publish of automobile industrial standards.

Appendix: 1. Code, name and effective date of 107 standards of light industry, ferrous metallurgy, electric power industry and automobile
industry.

The National Development and Reform Commission

Dec 17, 2006



 
The National Development and Reform Commission
2006-12-17

 






REPLY OF THE MINISTRY OF COMMERCE CONCERNING THE CONSENT ON THE CHANGE OF OVERSEAS ENTERPRISE NAMES

Reply of the Ministry of Commerce Concerning the Consent on the Change of Overseas Enterprise Names

Shang He Pi [2006] No.994

China Sinochem Corporation:

We have received Sinochem’s Request for Instructions on Altering the Names of Four Offshore Companies in Cayman Islands (Zhong Hua
Gui [2006] No.97) Upon study, we hereby render a reply as follows:

1.

The name of the company established by your company in Cayman Islands is approved to change from “Sinochem Petroleum ApS” to “Sinochem
Petroleum Limited”. Other issues shall remain unchanged.

2.

The names of the three enterprises established by Sinochem Petroleum ApS in Cayman Islands through reinvestment are approved to change
from Atlantis Holding Norway AS, Atlantis Technology Services (Tunisia) AS and Atlantis (Ras A1 khmaiah) AS to “Atlantis (UAQ) Limited”,
“Atlantis (Tunisia) Limited” and Atlantis (RAK) Limited”. Other issues shall remain unchanged.

3.

After receiving this Reply, your Company shall obtain a new Approval Certificate for the Overseas Investment by Chinese Enterprises
at the Ministry of Commerce (the Cooperation Department), and handle the related formalities upon the strength of such Approval Certificate
within one year.

4.

Your Company shall handle the related registration formalities at the foreign exchange department within 60 days after obtaining the
Approval Certificate.

5.

According to the related provisions of the state, the shares of Chinese party in an overseas enterprise shall not be held in the name
of any individual. The entrustment agreement shall be notarized at home and abroad in accordance with the related provisions if it
is really necessary to hold the shares in the name of an individual. Please implement this reply accordingly.

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

December 22, 2006



 
The Ministry of Commerce
2006-12-22

 






ANNOUNCEMENT NO. 120 OF THE STATE INTELLECTUAL PROPERTY OFFICE – ANNOUNCEMENT CONCERNING THE REGISTER OF PATENT RIGHT PLEDGE CONTRACTS

Announcement No. 120 of the State Intellectual Property Office – Announcement concerning the Register of Patent Right Pledge Contracts

[2006] No. 120

Upon deliberation, the register of patent right pledge contract shall be undertaken by the Preliminary Examination and Operating Procedure
Administration Department of the State Intellectual Property Office as of February 1, 2007. The address of the office and correspondence,
zip code, telephone number and fax number are hereby publicized as follows:

The handling department: The Commissioned Service Administration Office of the Preliminary Examination and Operating Procedure Administration
Department

Office address: Rm. 601D, Gengfang International Plaza, A-13 Huayuan Road, Haidian District, Beijing

Correspondence address: The Commissioned Service Administration Office Preliminary Examination and Operating Procedure Administration
Department, No. 6 Xitucheng Road, Haidian District, Beijing

The Commissioned Service Administration Office

Zip code: 100088

Tel: 010-62088207 010-62088211

Fax: 010-62088206

The State Intellectual Property Office

December 30, 2006



 
The State Intellectual Property Office
2006-12-30

 






RULES AND REGULATORY DOCUMENTS TO BE ANNULLED (37 DOCUMENTS IN ALL)

Announcement of the People’s Bank of China

No. 4

The Interim Measures for Administering Online Banking Business and other 36 rules and regulatory documents (see annex) promulgated
by the People’s Bank of China shall be annulled as of the date of promulgation.
People’s Bank of China

January 5, 2007

Rules and Regulatory Documents to Be Annulled (37 documents in all)

1.

Circular of the People’s Bank of China on the Business Entry of Foreign-funded Banks and Relevant Procedures (Yin Fa [2002] No.323)

2.

Circular on Printing and Distributing the Provisions on Examination and Approval of Internal Account Transfer and Settlement Business
of Financial Companies of Enterprise Groups (Yin Fa [2000] No.341)

3.

Circular on Promulgating the Measures for Administering Loans for Auto Consumption (Yin Fa [1998] No.429)

4.

Circular on Improving Administering Special Loans (Yin Fa [1999] No.228)

5.

Circular on Printing and Distributing the Administrative Measures for Stock-pledged Loans of Securities Companies (Yin Fa [2000] No.40)

6.

Circular on Printing and Distributing the Interim Provisions on the Administrative Penalties Imposed on the Financial Employees Involved
in the Cases of Financial Swindling (Yin Fa [1995] No.43)

7.

Interim Measures for Administering Online Banking Business (Decree No. 6, 2001of the President of the People’s Bank of China)

8.

Circular on Printing and Distributing the Provisions on the Administrative Penalties Imposed on the Persons Held to Be Responsible
for Illegal and Irregular Business Operations of Financial Institutions (Yin Fa [1998] No.221)

9.

Circular on Promulgating the Measures for Commercial Bills (Yin Fa [1993] No.140)

10.

Circular on Administering Large-amount Cash Payments (Yin Fa [1997] No. 339)

11.

Circular of the People’s Bank of China on Further Enhancing Administering Large-amount Cash Payments (Yin Fa [2001] No. 430)

12.

Circular on Printing and Distributing the Measures for the Implementation of Administering Special Accounts of Marketing Funds for
Main Agricultural and Sideline Products (Yin Fa [1993] No. 148)

13.

Circular on Printing and Distributing the Provisions on the Disposal of Violations of the Reporting Systems (Yin Fa [1997] No. 510)

14.

Circular on Strengthening the Work of Non-bank Financial Institutions Regarding the Submission of Statements (Yin Fa [1998] No. 505)

15.

Circular on Strengthening Administering the Examination and Approval of Savings Outlets (Yin Fa [1994] No. 239)

16.

Circular on Resuming the Examination and Approval of the Foreign Exchange Business of Wholly State-owned Commercial Banks’ Subsidiaries
(Yin Fa [2000] No. 227)

17.

Measures for Administering the Entrustment of Certified Accountants for the Audit of Foreign-funded Financial Institutions (Yin Fa
[1996] No. 153)

18.

Circular on Revising Paragraph 1 of Article 3 of the Provisional Measures for the Establishment of Branches in China by the Foreign-funded
Banks (Yin Fa [1996] No. 62)

19.

Circular on the Financial Management of Trust Business (Yin Fa [1983] No.207)

20.

Circular on Launching the Capital Borrowing Business by Trust and Investment Companies (Yin Fa [1989] No.57)

21.

Circular on Properly Dealing With the Complaint Letters and Visits of the Staff Members in Urban Credit Cooperatives and Rural Credit
Cooperatives (Yin Fa [1997] No.122 )

22.

Circular on the Issue of Mortgage Loan Assets of Rural Credit Cooperatives (Yin Fa [1998] No.196)

23.

Circular on Specifying the Standards for Verifying the Non-performing Loans of Rural Credit Cooperatives (Yin Fa [2000] No.848)

24.

Circular on Printing and Distributing the Interim Measures of the People’s Bank of China for Administering Loans of Rural Credit Cooperatives
(Yin Fa [1999] No.169 )

25.

Circular of the People’s Bank of China on Printing and Distributing the Interim Measures of the People’s Bank of China for Administering
Loans of Rural Credit Cooperatives (Yin Fa [2001] No.119)

26.

Circular of the People’s Bank of China on the Purchase of Foreign Exchanges by Chinese-funded Commercial Banks for Supplementing the
Foreign Exchange Capital (Yin Fa [2002] No.106)

27.

Opinions of Dealing with the Personnel That Should Be Kicked Out of the Financial Sector (Yin Fa [1993] No.47)

28.

Circular on Printing and Distributing the Guidelines for Enhancing the Internal Control of Financial Institutions (Yin Fa [1997] No.199)

29.

Circular on Printing and Distributing Several Opinions of the People’s Bank of China concerning Further Improving and Strengthening
the Internal Control Construction of Financial Institutions (Yin Fa [1997] No. 565)

30.

Circular on the Application of the Circular on Inquiry about, Freeze or Deduction of Deposits of Enterprises, Public Institutions,
Organs and Organizations to the Inquiry about and Freeze of Criminal Suspects’ Deposits by the Smuggling Investigation Organs (Yin
Fa [1999] No. 139 )

31.

Circular on the Pilot Implementation of Texts of Loan Contracts in Some Provinces (Districts and Cities) (Yin Fa [1994] No. 46)

32.

Circular on Printing and Distributing the Measures for Administering Loan Certificates (Yin Fa [1995] No. 322)

33.

Circular on Printing and Distributing the Guidelines for the Classification of Loan Risks (for Trial Implementation) (Yin Fa [1998]
No. 151)

34.

Circular on Comprehensively Promoting the Classification of Loans into Five Grades (Yin Fa [1999] No. 263)

35.

Circular on Strictly Prohibiting the Use of Credit Cards, Bank Cards and Payment Cards for Unlawfully Procuring Cash (Yin Fa [1998]
No. 136)

36.

Measures for Administering the Establishment of China’s Industrial Investment Funds Abroad (Decree No. 1, 1995 of the President of
the People’s Bank of China)

37.

Circular on Printing and Distributing the Measures for the Trust Repurchase of Special Financial Bonds (Yin Fa [1997] No. 280)



 
the People’s Bank of China
2007-01-05

 






REGULATIONS ON ADMINISTRATION OF FOREIGN-INVESTED CONSTRUCTION AND ENGINEERING SERVICE ENTERPRISES

Decree of the Ministry of Construction and the Ministry of Commerce

No. 155

Regulations on Administration of Foreign-Invested Construction and Engineering Service Enterprises, which were adopted after deliberation
at the 103rd executive meeting of the Ministry of Construction on December 20th 2006, and were adopted after deliberation at the
10th ministerial meeting of the Ministry of Commerce on December 20th 2006, are hereby promulgated and shall enter into force on
26 March 2007
Minister of Construction: Wang Guangtao

Minister of Commerce: Bo Xilai

January 22, 2007

Regulations on Administration of Foreign-Invested Construction and Engineering Service Enterprises

Article 1

These Regulations are formulated in order to further the opening up to the outside and standardizing the administration of foreign-invested
construction and engineering service enterprises in accordance with such laws and regulations as the Construction Law of the People’s
Republic of China, Invitation and Submission of Bids Law of the People’s Republic of China, Law of the People’s Republic of China
on Chinese-foreign Equity Joint Ventures, Law of the People’s Republic of China on Chinese-Foreign Contractual Joint Ventures, Law
of the People’s Republic of China on Foreign-capital Enterprises, Regulation on the Quality Management of Construction Engineering.

Article 2

These Regulations shall apply to the establishment of foreign-invested construction and engineering service enterprises within the
territory of the People’s Republic of China, the application for construction and engineering service enterprise qualifications and
the administration and supervision of the foreign-invested construction and engineering service enterprises.

Article 3

The term “foreign-invested construction and engineering service enterprise” as mentioned in these Regulations refers to a Chinese-foreign
construction and engineering service equity joint venture, or a Chinese-foreign construction and engineering service contractual
joint venture, or a wholly foreign-owned construction and engineering service enterprise established within the territory of the
People’s Republic of China in accordance with Chinese laws and regulations.

The term “construction and engineering service” as mentioned in theses Regulations refers to supervision of construction engineering,
tendering agency for engineering and engineering cost consultancy.

Article 4

A foreign investor, which intends to establish a foreign-invested construction and engineering service enterprise within the territory
of the People’s Republic of China and carry out construction and engineering service business shall, in accordance with laws, obtain
the foreign-invested enterprise approval certificate from the commerce administration department and register with the Administration
for Industry and Commerce, and also obtain the qualification certificate of construction and engineering service enterprise from
the construction administration department.

Article 5

Foreign-invested construction and engineering service enterprises shall abide by the laws, regulations and rules of the People’s
Republic of China when carrying out construction and engineering service activities within the territory of the People’s Republic
of China.

The lawful operation of foreign-invested construction and engineering service enterprises and their legal rights and interests within
the territory of the People’s Republic of China shall be protected by Chinese laws, regulations and rules.

Article 6

The commerce administration department of the State Council and its authorized commerce administration departments of the people’s
government of provinces, autonomous regions or municipalities directly under the central government shall be responsible for the
administration of establishing foreign-invested construction and engineering service enterprises.

The construction administration department of the State Council shall be responsible for the administration of the qualifications
of foreign-invested construction and engineering service enterprises.

The construction administration departments of the people’s government of provinces, autonomous regions or municipalities directly
under the central government shall, in accordance with these Regulations, be responsible for the administration of qualifications
of foreign-invested construction and engineering service enterprises within their authorized jurisdiction.

Article 7

The establishment of foreign-invested construction and engineering service enterprises shall be examined and approved by the commerce
administration departments of the people’s government of provinces, autonomous regions or municipalities directly under the central
government authorized by the commerce administration department of the State Council.

Where an applicant is to apply for Grade A qualifications for construction and engineering service enterprise, it shall be examined
and approved by the construction administration departments of the State Council; Where an applicant is to apply for Grade B qualifications
or below for construction and engineering service enterprise, it shall be examined and approved by the construction administration
departments of the people’s government of provinces, autonomous regions or municipalities directly under the central government.

Article 8

The procedures for the establishment of a foreign-invested construction and engineering service enterprise and the application for
construction and engineering service qualifications shall be as follows:

(1)

The applicant shall submit an application to the commerce administration department of the people’s government of the province, the
autonomous region or municipality directly under the central government where the proposed foreign-invested construction and engineering
service enterprise is to be established;

(2)

The commerce administration department of the people’s government of the province, or the autonomous region or municipality directly
under the central government shall, within five days as of receiving the application, submit the application to the construction
administration department of the people’s government of the province, the autonomous region or municipality directly under the central
government for opinions;

(3)

The construction administration department of the people’s government of the province, or the autonomous region or municipality directly
under the central government shall provide its opinion in writing within ten days as of receiving the request. Within 30 days as
of receiving the response, the commerce administration department of the people’s government of the province, or the autonomous region
or municipality directly under the central government shall decide whether or not to approve the application and express such a decision
in written form. If the application is approved, a foreign-invested enterprise certificate shall be granted; if the application is
not approved, reasons for the disapproval shall be given in written form;

(4)

Within 30 days as of receiving the approval certificate, the applicant shall carry out enterprise registration with the relevant registration
department;

(5)

After obtaining business license for the legal entity, if the foreign-invested construction and engineering service enterprise is
to apply for the construction and engineering service enterprise qualifications, the application shall be carried out in accordance
with the relevant provisions in respect of qualification administration.

Article 9

Examination and approval of the qualifications of foreign-invested construction and engineering service enterprises by the construction
administration departments of the People’s government of provinces, autonomous regions or municipalities directly under the central
government shall be put on file with the construction administration department of the State Council within 30 days after the approval
is given.

Article 10

An applicant who intends to establish a foreign-invested construction and engineering service enterprise shall submit the following
documents to the commerce administration department of the People’s government of the province, the autonomous region or municipality
directly under the central government:

(1)

Application forms to establish a foreign-invested construction and engineering service enterprise;

(2)

The contract for establishment of foreign-invested construction and engineering service enterprise and the articles of association
(only the articles of association are required for the establishment of a wholly foreign-owned construction and engineering service
enterprise);

(3)

The notification of pre-verification of the name of the enterprise;

(4)

Documentary evidence of the investor and its bank credential letter;

(5)

Appointment letters and documentary evidence of the investor’s designated chairperson and members of the board of directors, managers
and technical managers etc.; and

(6)

Balance sheets and profit and loss accounts of the investor over the past three years audited by a certified accountant or an accounting
firm; where the establishment of the investor is less than three years, balance sheets and profit and loss accounts for the years
since its establishment shall be provided.

Article 11

The applicant applying for foreign-invested construction and engineering service enterprise qualifications shall submit the following
documents to the construction administration department:

(1)

Application forms for the qualifications for a foreign-invested construction and engineering service enterprise;

(2)

The approval certificate for the establishment of the foreign-invested construction and engineering service enterprise;

(3)

The business license for enterprise as legal person;

(4)

Documentary evidence of registration of the investor in its home country or region, document of business performance and its bank
credential letter;

(5)

Balance sheets and profit and loss accounts of the investor over the past three years audited by a certified accountant or an accounting
firm, where the establishment of the investor is less than three years, balance sheets and profit and loss accounts for the years
since its establishment shall be provided; and

(6)

Other documents as required by the regulations on the administration of enterprises’ qualifications for supervision of construction
engineering, tendering agency for engineering and engineering cost consultancy

Article 12

All materials required to be submitted by an applicant under these Regulations shall be in Chinese. If the original documentary evidence
is in a foreign language, a Chinese translation shall be provided.

Article 13

The foreign investor applying to establish foreign-invested construction and engineering service enterprise shall be an enterprise
engaging in relevant engineering service, other economic organization or a certified technician in his or her home country.

Article 14

Where an applicant who intends to apply for qualifications for foreign-invested construction and engineering enterprises, the enterprise
shall meet the conditions as required in the standards for the qualifications for enterprises of supervision of construction engineering,
tendering agency for engineering, and the engineering cost consultancy.

Article 15

The application by a foreign-invested construction and engineering service enterprise to upgrade its qualifications or to add additional
engineering qualifications shall be made to the construction administration department in accordance with relevant regulations.

Article 16

Where a foreign-invested construction and engineering enterprise alters its contract or articles of association, it shall handle
relevant procedures in the commerce administration department of the people’s government of the province, autonomous region, or municipality
directly under the central government.

Article 17

Where a foreign-invested construction and engineering service enterprise carrying out construction and engineering service activities
within the territory of the People’s Republic of China violates the Construction Law of the People’s Republic of China, Invitation
and Submission of Bids Law of the People’s Republic of China, Regulations on Administration of Construction Engineering Quality,
and other regulations, rules and relevant regulation on the administration of qualifications, it shall be imposed on a punishment
in accordance with relevant provisions.

Article 18

For investors from Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan Region, who establish
construction and engineering service enterprises and carry out businesses in other provinces, autonomous regions or municipalities
directly under the central government, these Regulations shall be applied by analogy unless it is otherwise provided by laws, regulations
or the State Council.

Article 19

The construction administration department of the State Council and the commerce administration department of the State Council shall
be responsible for interpreting these Regulations.

Article 20

These Regulations shall enter into force as of 26 March 2007.



 
The Ministry of Construction, the Ministry of Commerce
2007-01-22

 






1...252627...83Page 26 of 83

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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