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MEASURES FOR ADMINISTRATION OF E-MAIL SERVICE ON INTERNET

Ministry of Information Industry

Decree No.38 of the Ministry of Information Industry of the People’s Republic of China

No.38

Measures for Administration of E-mail Service on Internet have been adopted at the fifteenth Ministerial Conference of the Ministry
of Information Industry on November 7, 2005, and are hereby published and come into effect on March 30, 2006.

Minister, Wang Xudong

February 20, 2006

Measures for Administration of E-mail Service on Internet

Article 1

These Measures are formulated in accordance with the provisions of Telecommunication Regulations of the People’s Republic of China
and Measures for Administration of Internet Information Service and relative laws and administrative laws and regulations for the
purposes of regulating E-mail service on internet, safeguarding the legitimate rights of the users of E-mail service on internet.

Article 2

These Measures apply to providing E-mail service on internet, and providing access service and sending Internet E-mail for E-mail
service on internet in the territory of the People’s Republic of China.

E-mail service on internet in terms of these Measures means the activity to establish servers of Internet E-mail and provide conditions
for internet users to send and receive E-mail on internet.

Article 3

the communication secret of the citizens to use E-mail service on internet shall be under the protection of law. No organization or
individual shall violate citizens’ communication secret with any reasons except that when the public security agency or procuratorial
organ checks up the content of the communication for the needs of national safety or finding out criminal offence according to the
procedures prescribed by law.

Article 4

Providing E-mail service on internet should obtain business license for value added telecommunication service or go through record
formalities for non-operational information service on internet according to law.

No organization or individual should be engaged in E-mail service on internet in the territory of the People’s Republic of China before
obtaining business license for value added telecommunication business or going through record formality for non business information
service on internet.

Article 5

The providers for internet access service and other providers for telecommunication service shall not provide internet access service
for any organizations or individuals that have not obtained business license for value added telecommunication business or have not
gone through the record formality for non-operational internet information service to carry out E-mail service on internet.

Article 6

The state shall register the IP address of E-mail server of the provider for E-mail service on internet for administration. The provider
for E-mail service on internet shall register the IP address used for E-mail server on internet in the Ministry of Information Industry
of the People’s Republic of China (MII) or Telecommunication Administration of the provinces, autonomous regions or municipalities
directly under the Central Government (TA) 20 days before an E-mail server is opened.

The provider for E-mail service on internet shall, if planning to change the IP address of Internet E-mail, go through change formality
30 days in advance.

Article 7

The provider for E-mail service on internet shall, according to the technical standard laid down by the Ministry of Information Industry,
establish the system of E-mail service on internet, close anonymous transmissive function of E-mail server, and improve the administration
of the safety of E-mail service system. Security measures should be taken as soon as any safety loopholes are found.

Article 8

The providers for E-mail service on internet shall, while providing service to the consumers, inform the consumers of the content
of service and rules for use.

Article 9

The providers for E-mail service on internet have the duty to maintain secrecy about the consumers’ personnel registration information
and E-mail address on internet.

The providers for E-mail service on internet and their staffs should not use illegally the consumers’ personnel registration information
and E-mail address on internet, and without the consumers’ permission, should not leak the consumers’ personnel registration information
and E-mail address on internet except for the circumstances stipulated separately by law and administrative law and regulations.

Article 10

The providers for E-mail service on internet shall note down the time of sending or receiving Internet E-mail, E-mail address on internet
and IP address of the persons sending and receiving the E-mail of the Internet E-mail sent or received through their E-mail server.
Above record should be kept for sixty days and should be provided to the relevant agency of the state for the examination according
to law.

Article 11

No organization or individual shall produce, copy, publish or spread the Internet E-mail as prescribed in Article 57 of Telecommunication
Regulations of the People’s Republic of China.

No organization or individual shall be engaged in the activities harming the safety of network and information as prohibited in Article
58 of Telecommunication Regulations of the People’s Republic of China.

Article 12

No organization or individual shall have any of following activities:

1.

Making use of others’ computer system to send internet E-mail without any authorization; or

2.

Sell, share or exchange others’ E-mail address on internet obtained by means of automatically collection on line, willfully combination
of letters or numerals, or send internet E-mails to the internet E-mail address obtained by above means.

Article 13

No organization or individual shall have any of following activities of sending internet E-mail or authorizing others to send Internet
E-mail:

1.

Intentionally suppressing or forging envelope information of Internet E-mail;

2.

Without explicit agreement of the receiver of Internet E-mail, sending Internet E-mail containing the content of business advertisement
thereto; or

3.

Do not give clear indication of the word “advertisement” or “AD” in front of the tile of Internet E-mail when sending internet E-mail
containing the content of business advertisement.

Article 14

Where a receiver of internet E-mail agrees clearly to receive the internet E-mail containing the content of business advertisement,
but refuses to receive it, internet E-mail sender shall stop sending it except that there is an agreement between the both sides.

The sender for internet E-mail service shall, while sending internet E-mail containing the content of business advertisement, provide
the contact information to the receiver for refusing to receive it continuously, including the internet E-mail address of the sender,
and guarantee that the contact information is valid within 30 days.

Article 15

The provider for internet E-mail service and the telecommunication provider providing access service for internet E-mail service should
accept and handle the users’ complaints on internet E-mail and provide direct and simple way for the informants.

Article 16

The provider for internet E-mail service and the telecommunication provider providing access service for internet E-mail service shall
handle the consumers’ complaints according to following requirements:

1.

Where an informed internet E-mail containing clearly the content that is prohibited as prescribed in Article 11 , Section 1 of these
Measures is found, it should be reported to relevant agency of the state;

2.

All the informed internet E-mail except for the E-mail prescribed in Section 1 of this Article should be reported to Internet E-mail
Informant Center established by China Internet Association with the authorization of the MII (IEIC); and

3.

Where an informed internet Email referring to this unit, an investigation should be carried out immediately, reasonable and effective
looking-out or treatment measures should be taken, and the result of relevant information and investigation should be reported in
time to the relevant agency of the state or IEIC.

Article 17

IEIC shall, according to the rules and process worked out by the MII, carries out following works:

1.

Accept and handle the complaints on internet E-mail;

2.

Assist MII or TA to confirm whether the informed internet E-mail violates the provisions of related clauses of these Measures, and
assist to find out corresponding responsible persons; and

3.

Assist relative agency of the state to find out corresponding responsible persons violating the provisions of Article 11 of these
Measures.

Article 18

The provider for internet E-mail service and telecommunication business provider providing access service for internet E-mail service
shall cooperate positively with relevant agency of the state and IEIC in relevant investigation.

Article 19

Whoever violates the provisions of Article 4 of these Measures to be engaged in internet E-mail service without the license of value
added telecommunication business or without going through record formalities for non-operational internet information service should
be punished according to the provisions of Article 19 of Measures for Administration of Internet Information Service.

Article 20

Whoever violates the provisions of Article 5 of these Measures should be ordered to make correction by MII or TA according to its
function and power, and a fine of less than 10 thousand Yuan should be imposed.

Article 21

Whoever does not perform the obligations stipulated in Article 6 , 7, 8 and 10 of these Measures should be ordered to make correction
by MII or TA and a fine of more than 5 thousand Yuan and less than 10 thousand Yuan should be imposed.

Article 22

Whoever violates the provisions of Article 9 of these Measures should be ordered to make correction by MII or TA and a fine of less
than 10 thousand Yuan should be imposed. Whoever has obtained illegal income should be imposed a fine of less than 30 thousand Yuan.

Article 23

Whoever violates the provisions of Article 11 of these Measures should be punished according to the provisions of Article 67 of
Telecommunication Regulations of the People’s Republic of China.

Where any providers for internet E-mail service and any other telecommunication providers have the prohibited activities as stipulated
in Article 11 of these Measures, MII or TA shall give them punishment according to the provisions of Article 78 of Telecommunication
Regulations of the People’s Republic of China and Article 20 of Measures for Administration of Internet Information Service.

Article 24

Whoever violates the provisions of Article 12 , 13 and 14 of these Measures should be ordered to make correction by MII or TA and
a fine of less than 10 thousand Yuan should be imposed. Whoever has illegal income should be imposed a fine of less than 30 thousand
Yuan.

Article 25

Whoever violates the provisions of Article 15 , 16 and 18 of these Measures should be given a warning by MII or TA according to its
function and power and a fine of more than 5 thousand Yuan and less than 10 thousand Yuan should be imposed.

Article 26

Internet E-mail address in terms of these measures refers to the only endpoint identifier in the world which is used to send internet
E-mails to the consumers of E-mail on internet.

Envelope information of internet E-mail in terms of these Measures refers to the information that is attached to internet E-mail and
used for identifying sender, receiver and route, showing the source, destination and transmitting process of the E-mail.

The tile information of internet E-mail in terms of these Measures refers to the information attached to internet E-mail used for
identifying the content of internet E-mail.

Article 27

These Measure shall come into effect as of March 30, 2006.



 
Ministry of Information Industry
2006-02-20

 






CIRCULAR OF CHINA INSURANCE REGULATORY COMMISSION CONCERNING RELEVANT ISSUES ON SETTLEMENT AND PAYMENT OF INSURANCE PROTECTION FUND

China Insurance Regulatory Commission

Circular of China Insurance Regulatory Commission concerning Relevant Issues on Settlement and Payment of Insurance Protection Fund

Bao Jian Fa [2006] No.18

All insurance companies,

In order to do a good job for settlement and payment of insurance protection fund, and according to the Measures for the Administration
of Insurance Protection Fund (Bao Jian Hui Ling [2004] No.16) and the Notice on Relevant Issues concerning Payment of Insurance Protection
Fund (Bao Jian Fa [2005] No. 26), we hereby notified the relevant issues as follows:

I.

According to the relevant provisions of the Measures for the Administration of Insurance Protection Fund, an insurance company shall,
within four months after the end of each fiscal year, calculate the payable amount of insurance protection fund of the whole year
by itself, and in light of the amount prepaid on quarterly basis, determine the amount of insurance protection fund that shall be
paid up in the year or the amount that may be used for the payable amount of insurance protection fund of the next year , and fill
in the Declaration Form for Settlement and Payment of Insurance Protection Fund (hereinafter refers to as “Declaration Form”), and
declare the annual insurance protection fund to China Insurance Regulatory Commission (CIRC).

II.

According to the Measures for the Administration of Insurance Protection Fund and other relevant provisions, an insurance company
shall compute the amount of insurance protection fund payable strictly and according to the facts, fill in the Declaration Form
accurately to ensure the truthfulness and completeness of the data in the Declaration Form. The legal person of the company, person
who takes the charge of the work of financial affairs, and the tabulator shall sign their names and the common seal shall be affixed
on the Declaration Form.

III.

When declaring the payment of annual insurance protection fund, an insurance company shall submit materials as follows:

1.

Paper text of the Declaration Form (in duplicate);

2.

The Excel file format of Electronic text of the Declaration Form ; and

3.

Other documents that shall be handed in as required by CIRC.

The electronic text of the Declaration Form shall be submitted through emails to (bzjj@circ.gov.cn).

IV.

The Declaration Form shall be examined by CIRC within one month after receiving the Declaration Form, and the Notice of Settlement
and Payment shall be sent to the insurance company according to the examination results, and each company shall be notified of the
amount of insurance protection fund that should be paid up or may be set off for the payable amount of insurance protection fund
of the next year.

V.

If the prepaid amount of insurance protection fund is less than the amount payable of the whole year, the underpaid part (namely the
amount that should be paid up) shall be paid off before June 30 of the next year; if the prepaid insurance protection fund is more
than the amount payable of insurance protection fund of the whole year, the overpaid part (namely the amount that may be set off
for payable) shall be used for setting off the prepaid amount of the second, third, and fourth quarters of the next year.

VI.

The model of Declaration Form may be downloaded from the website of CIRC (www.circ.gov.cn).

VII.

If having problems in the implementation, please reflect to the financial department of CIRC in a timely manner. The contact persons:
Wang Song and Guo Jing, Telephone: ￿￿010￿￿66286637￿￿66286182.

China Insurance Regulatory Commission

February 28, 2006



 
China Insurance Regulatory Commission
2006-02-28

 






LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING THE APPROVAL OF THE ANOD BANK CO., LTD. MONGOLIA TO ESTABLISH BEIJING REPRESENTATIVE OFFICE

Letter of China Banking Regulatory Commission concerning the Approval of the ANOD Bank Co., Ltd. Mongolia to Establish Beijing Representative
Office

ANOD Bank Co., Ltd., Mongolia

The letter which was signed by your president, Nyamaa Davaa, and was addressed to this Commission has been received.

According to the Measures on the Administration of Foreign-funded Financial Institutions’ Representative Offices in China (Order No.
8, 2002 of the People’s Bank of China) (hereinafter referred to as these Measures), you are hereby approved to establish a representative
office in Beijing whose name in Chinese is “￿￿Ű￿ŵ￿￿￿￿￿￿￿￿˾￿￿￿￿￿￿” and whose name in a foreign language is “Beijing
Representative Office of ANOD Bank Co., Ltd.”.

According to the related provisions of these Measures, and upon approval, Saranbaatar Bayarmagnai is granted to have the qualifications
as the chief representative of this Representative Office.

China Banking Regulatory Commission

March 2, 2006



 
China Banking Regulatory Commission
2006-03-02

 






NOTICE OF THE STATE ADMINISTRATION OF TAXATION ON THE RELEVANT ISSUES CONCERNING THE DETERMINATION OF PERMANENT ESTABLISHMENTS IN TAX AGREEMENTS

State Administration of Taxation

Notice of the State Administration of Taxation on the Relevant Issues concerning the Determination of Permanent Establishments in
Tax Agreements

Guo Shui Fa [2006] No. 35

The state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central
Government, cities specifically designated in the state plan, and Institute of Continuing Tax Education of Yangzhou,

It is prescribed that the term “permanent establishment” means a fixed place of business through which the business of an enterprise
is wholly or partly carried out by Paragraph 1 of Article 5 (Permanent Establishment) and the term “permanent establishment” shall
not include the fixed business place established solely for of the enterprise itself to carry out preparatory or auxiliary activities
by Paragraph 4 as in foreign tax agreements signed by our country prescribes that. We hereby give our explanations as follows about
the terms “business” and “preparatory or auxiliary” and other issues concerning permanent establishment as follows in the light of
the explanations of tax agreements sample of the United Nations and the Organization for Economic Co-operation and Development as
well as the practices of most countries in the world:

I.

The Chinese term “yingye” is a literal translation of the English word “business”, which includes not only business operations but
also common business operations conducted by non-profit institutions. Therefore, if any non-profit institution of the other contracting
party in a tax agreement carries out business operations, excluding the preparatory or auxiliary activities for the aforesaid institution,
at a fixed base or place within China, it shall be regarded as “permanent establishment” in China.

II.

The principles as follows shall be observed when determining “preparatory or auxiliary” activities:

1.

Whether the fixed base or place only provides services to its head office or whether it has business relation with other entity;

2.

Whether the business nature of the fixed base or place is identical to that of its head office; and

3.

Whether the business operations of the fixed base or place are an important part of those of its head office.

If the fixed base or place not only provides services to its head office but also has business relation with other entity, or its
business nature is identical to that of its head office and its business operations are an important part of those of its head office,
the activities of such fixed base or place shall not be considered as preparatory or auxiliary activities.

III.

The individual income tax on the salaries and wages obtained by residents of the other signatory country for working at the permanent
establishment shall be collected in accordance with the provisions on “non-independent personal services” (or “remunerations from
employment”) in the tax agreement and other relevant tax law of the State. The tax on the services provided for the government of
a signatory country shall be collected or exempted in accordance with the provisions on “government services” in the tax agreement.

IV.

Where a taxpayer argues that its agency or place within the territory of China only provides preparatory or auxiliary services to
its head office and is not a permanent establishment, it shall provide the relevant certification materials to the competent department
of taxation and be followed to determination of the competent department of taxation.

State Administration of Taxation

March 14, 2006



 
State Administration of Taxation
2006-03-14

 






MINISTRY OF COMMERCE ANNOUNCEMENT NO.15 2006 ON PRELIMINARY ARBITRATION ON POLYBUTYLENE TEREPHTHALATE RESIN (PBT)

Ministry of Commerce

Ministry of Commerce Announcement No.15 2006 on Preliminary Arbitration on Polybutylene Terephthalate Resin (PBT)

[2006] No. 15

Ministry of Commerce issued an announcement on June 6, 2005 to start an anti-dumping investigation on the imported Polybutylene Terephthalate
Resin (PBT, PBTP or PTMP for short) originating from Japan and Taiwan region (hereinafter referred to as the investigated products).

In accordance with Article 24 of Anti-dumping Regulations of People’s Republic of China, Ministry of Commerce made the preliminary
arbitration that dumping of the investigated products had taken place, which had caused material injury to China’s industry and there
was a casual relationship between the dumping and the injury.

The Polybutylene Terephthalate Resin (PBT, PBTP or PTMP for short) is listed under No. 39079900 in Import and Export Tariffs of General
Administration of Customs of PRC. Reinforced or modified PBT under the item is not included.

In accordance with Article 28 and 29 of Anti-dumping Regulations of People’s Republic of China, Ministry of Commerce decided to take
anti-dumping measures by deposit in security as of March 22, 2006.

Deposit in security rates are as follows:

Companies of Taiwan Region:

1.

Chang Chun Plastics Co.,Ltd: 12.78%

2.

All others: 17.31%

Companies of Japan: 17.31%

The relevant interested parities could apply written comments, with related evidence, to Ministry of Commerce for consideration within
20 days as of the date this announcement is issued.

Appendix: Ministry of Commerce Preliminary Arbitration on Anti-dumping Investigation on Imported Polybutylene Terephthalate Resin
(PBT, PBTP or PTMP for short) Originating from Japan and Taiwan region (omitted)

Ministry of Commerce

March 22, 2006



 
Ministry of Commerce
2006-03-22

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON PRINTING AND DISTRIBUTING THE PROTOCOL II ON THE AGREEMENT BETWEEN THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE REPUBLIC OF KOREA ON THE AVOIDANCE OF DOUBLE TAXATION AND GETTING PREPARED FOR ITS IMPLEMENTATION

The State Administration of Taxation

Circular of the State Administration of Taxation on Printing and Distributing the Protocol II on the Agreement between the Government
of the People’s Republic of China and the Government of the Republic of Korea on the Avoidance of Double Taxation and Getting Prepared
for Its Implementation

Guo Shui Fa [2006] No. 52

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

The Protocol II to the Agreement between the Government of the People’s Republic of China and the Government of the Republic of Korea
on the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income was formally concluded in Beijing
on March 23, 2006. This Protocol shall come into force after both contracting states have completed their respective legal procedures.
The text of this Protocol is hereby printed and distributed to you. Please make good preparations for its implementation.

Annex: Protocol II to the Agreement between the Government of the People’s Republic of China and the Government of the Republic of
Korea on the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income

The State Administration of Taxation

April 5, 2006 Annex:Protocol II to the Agreement between the Government of the People’s Republic of China and the Government of the Republic of Korea
on the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income

As for the Agreement between the Government of the People’s Republic of China and the Government of the Republic of Korea on the Avoidance
of Double Taxation and Prevention of Tax Evasion with respect to Taxes on Income which was signed in Beijing on March 28, 1994 (hereinafter
referred to as the Agreement), the Government of the People’s Republic of China and the Government of the Republic of Korea agree
to regard the following provisions as an integral part of the Agreement:

Article 1

As for Article 1 of this Agreement, both the contracting states agree that this Agreement does not apply to such a company, trust
or any other entity, if a company or trust or any other entity is a resident of a contracting state, if it is owned or controlled
by one or more direct or indirect beneficiaries who are not residents of this contracting state, and if the tax imposed by this contracting
state on the income of this company, trust or any other entity (after considering the tax amount to be reduced or offset by any means,
including the tax refund, reimbursement, donation, offset, deduction or exemption), the revenue of this contracting state has reduced
substantially in comparison with all shares of the capital stock of the company or all equities of the trust or any other entity
(depending on the corresponding circumstances) which benefit and are owned by one or more residents of this contracting state. However,
if 90% or more of the income completely comes from active trade or business operation other than investment, the aforesaid provisions
shall not apply.

Article 2

The “Korea taxes” as mentioned in Article 2 of the Agreement shall be deemed as including the special tax for rural development which
is a surtax directly or indirectly collected by Korea on the tax base of the income tax or corporation tax.

Article 3

Paragraph 7 of Article 11 of the Agreement shall be deleted and replaced by the following paragraph:

“7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person,
the amount of the interest payment exceeds the amount of what would have been agreed upon by the payer and the beneficial owner in
the absence of such special relationship, the provisions of this Article shall apply only to the last-mentioned amount. Under this
circumstance, the excessive part of the payment shall remain taxable according to the laws of each contracting state, with due attention
being given to the other provisions of the Agreement.”

Article 4

Paragraph 1 of Article 23 in the Korea text of the Agreement and paragraph 2 of Article 23 in the Chinese text shall be deleted
and replaced by the following paragraphs:

“In the event of a resident of Korea, double taxation shall be avoided as follows:

According to the provisions of Korean tax law which regulates that any tax payable in any country other than Korea is allowed to be
credited against the taxes payable in Korea (on condition that it shall not affect the general principle of the Agreement):

(a)

The Chinese taxes payable (excluding, in the case of dividend, tax payable in respect of profits out of which the dividend is paid),
whether directly paid or withheld, in respect of the income sourced within China shall be allowed to credit against Korean taxes
payable in respect of that income according to the laws of China and the provisions of the Agreement. However, the credit shall not
exceed the proportion of Korean taxes payable for the income sourced within China against the entire income subject to Korean tax.

(b)

With regard to a dividend paid by a Chinese resident company to a resident company of Korea, if the Korea company owns not less than
10 percent of the shares of the Chinese company that pays the dividend, the credit shall take into account the Chinese taxes paid
by the company that pays the dividend in respect of its income (except for the circumstance that any Chinese tax is allowed to be
credited in accordance with Item (a) of this paragraph. “

Article 5

1.

Paragraph 3 of Article 23 of the Agreement shall be deleted and replaced by the following Paragraph, which shall cover a 10-year
period as of January 1, 2005:

“3. The taxes payable in a contracting state as mentioned in paragraph 1 (a) and paragraph 2 of this Article shall be deemed to include
the tax which would have been payable but is not paid as a result of tax reduction, exemption or other tax incentives as stipulated
by the provisions of the contracting state for promoting economic development. For the purpose of this paragraph, the amount of tax
shall be deemed to be 10 per cent of the total amount of the dividends, interest and royalties respectively according to paragraph
2 of Article 10 , paragraph 2 of Article 11 and paragraph 2 of Article 12 .”

2.

Paragraph 4 of Article 23 shall be deleted.

Article 6

In despite of the provisions of paragraph 3 of Article 23 , if the income that a resident of a contracting state obtains from the
other contracting state falls within the scope of income as mentioned in this paragraph, and if the competent authorities of a contracting
state considers that this resident shall not enjoy the benefits as described in paragraph 3 of Article 23 after consulting with
the other contracting state and taking the following provisions into consideration, this resident shall be deemed to have paid the
tax on the aforesaid income:

(a)

Whether or not a person makes any arrangement by making use of paragraph 3 of Article 23 of the Agreement for the benefits of his
own or any other person; or

(b)

Whether or not any benefit falls or may possibly fall on a person who is neither a resident of a contracting state nor of the other
contracting state;

(c)

The prevention of tax evasion and cheating of taxes to which the Agreement applies.

Article 7

Both contracting states shall, through the diplomatic channel, notify each other of the completion of legal procedures to be completed
for the entry into force of Protocol II. The Protocol II shall come into force as of the date of the last notice issued by any of
the contracting states.

In witness whereof the undersigned, duly authorized thereto by their respective governments, have signed this Agreement.

The Protocol II is signed in duplicate in Beijing on March 23, 2006 in Chinese, Korean and English, with all texts being equally authentic.
In case of any divergence of interpretation, the English text shall prevail.

For the Government of the People’s Republic of China￿￿￿￿￿￿￿￿￿￿￿￿ For the Government of the Republic of Korea



 
The State Administration of Taxation
2006-04-05

 






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE INTELLECTUAL PROPERTY OFFICE ABOUT THE RELEVANT ISSUES ON STRENGTHENING THE ADMINISTRATION OF INTELLECTUAL PROPERTY ASSET ASSESSMENT

Ministry of Finance, State Intellectual Property Office

Circular of the Ministry of Finance and the State Intellectual Property Office about the Relevant Issues on Strengthening the Administration
of Intellectual Property Asset Assessment

Cai Qi [2006] No. 109

April 19, 2006

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

For the purpose of strengthening the administration of intellectual property asset assessment, regulating the intellectual property
assessment and making the intellectual property assessment better serve the innovation economic construction and the intellectual
property protection of the State, in accordance with the Company Law of the People’s Republic of China, the Patent Law of the People’s
Republic of China, the Trademark Law of the People’s Republic of China, the Copyright Law of the People’s Republic of China, the
Guarantee Law of the People’s Republic of China, the Measures for the Administration of State-owned Assets Assessment and other relevant
provisions, the notice on the relevant issues about the administration of intellectual property assessment is hereby circulated as
follows:

I.

If an entity having the intellectual property meets any of the circumstances as follows, it shall implement the asset assessment:

(1)

In the light of Article 27 of the Company Law, where the intellectual property is contributed for establishing a limited liability
company or joint stock company;

(2)

Where the intellectual property is pledged, there is no reference price in the market and the pledgee requires the assessment;

(3)

Where an administrative entity auctions off, transfers or replaces the intellectual property;

(4)

Where a public institution implements the restructuring, merger, split-up, liquidation, investment, transfer, replacement or auction,
which involves the intellectual property;

(5)

Where a state-owned enterprise implements the restructuring, merger, split-up, liquidation, investment, transfer, replacement, auction
or debt repayment which involves the intellectual property;

(6)

Where a state-owned enterprise purchases or obtains by replacement the intellectual property of non-state-owned entity, or accepts
the capital contributions of non-state-owned entity in the form of intellectual property;

(7)

Where a state-owned enterprise approves the foreign company, enterprise or other economic organizations or individuals to use its
intellectual property, and there is no reference price in the market;

(8)

Where the people’s court, the arbitral body or the party requires the assessment when the lawsuit value of the intellectual property
involved is determined; or

(9)

Other matters prescribed by the laws and administrative regulations, for which the asset assessment is needed.

Where a non-state-owned enterprise implements the merger, split-up, liquidation, investment, transfer, replacement, debt repayment
or any other economic act refers to the intellectual property, the asset assessment may be implemented by referring to the state-owned
enterprises.

II.

An asset assessment institution established based on approval of the department of public finance shall be entrusted for the intellectual
property assessment.

An asset assessment institution shall implement the intellectual property assessment strictly according to the relevant rules and
standards for asset assessment, and shall take into account the peculiarities of the intellectual property and scientifically and
objectively analyze the feasibility and rationality of the anticipatory proceeds of the intellectual property during the course of
assessment.

When carrying out the intellectual property assessment, an asset assessment institution may employ the experts in the aspects of patent,
trademark, copyright and etc. to assist in the work, but the legal liabilities of the asset assessment institution and its certified
asset assessors can not thus be mitigated or exempted.

III.

The Ministry of Finance and the State Intellectual Property Office will jointly organize the professional trainings on intellectual
property assessment, implement the examination and issue the certificates of training, establish and strictly enforce the system
of continuous education and training examination, for ensuring the quality of trainings and continuously enhancing the professional
intellectual property assessment capacity and level of certified asset assessors and other professionals.

IV.

China Appraisal Society shall strengthen the industrial self-discipline and the professional guidance, may establish a database of
intellectual property assessment experts and other relevant professional committees, establish and improve the intellectual property
database, and create a necessary platform for intellectual property assessment, so as to enhance the practicing quality of asset
assessment, industrial credibility and influences.

V.

An asset assessment institution shall insist on the principles of independence, objectiveness and fairness, and shall not undertake
the business of intellectual property assessment by overestimating or underestimating the intellectual property, giving “kickbacks”,
maliciously forcing down the price or any other unjustifiable means so as to cater to the entrusting party.

Supervision and examination on the practicing quality of asset assessment institutions that engage in the business of intellectual
property assessment shall be regularly organized by the Ministry of Finance and the State Intellectual Property Office.

VI.

Any of entities or individuals may not intervene in the business of intellectual property assessment or the assessment conclusion
illegally.

VII.

In case a state-owned entity having the intellectual property or an asset assessment institution engaging in the business of intellectual
property assessment violates the aforesaid provisions, it shall be punished in accordance with the relevant provisions of the State.

If there is any former relevant provision conflicting with the provisions in this Notice, the latter shall prevail after this Notice
is promulgated.



 
Ministry of Finance, State Intellectual Property Office
2006-04-19

 






PROVISIONS OF THE SUPREME PEOPLE’S COURT ABOUT SEVERAL ISSUES ON THE APPLICATION OF THE COMPANY LAW OF THE PEOPLE’S REPUBLIC OF CHINA (I)

the Supreme People’s Court

Announcement of the Supreme People’s Court of the People’s Republic of China

Provisions of the Supreme People’s Court about Several Issues on the Application of the Company Law of the People’s Republic of China
(I) adopted at the 1382nd meeting of the Adjudication Committee of the Supreme People’s Court on March 27, 2006, are hereby promulgated
and shall enter into effect as of the day of May 9, 2006.

the Supreme People’s Court of the People’s Republic of China

April 28, 2006

Provisions of the Supreme People’s Court about Several Issues on the Application of the Company Law of the People’s Republic of China
(I)

(Adopted at the 1382nd meeting of the Adjudication Committee of the Supreme People’s Court on March 27, 2006 Fa Shi [2006] No. 3)

In order to correctly apply the Company Law of the People’s Republic of China amended at the 18th session of the Standing Committee
of the Tenth National People’s Congress on October 27, 2005, the concrete application of the Company Law by the people’s courts in
the hearing of relevant civil disputes are formulated as follows:

Article 1

If the civil act or event involved in a undecided case of the people’s court or a case newly accepted by the people’s court but which
occurred prior to the implementation of the Company Law, after the Company Law is brought into effect, the laws, regulations and
judicial interpretations effective at that time shall apply to the case.

Article 2

Where a lawsuit is brought to the people’s court prior to the implementation of the Company Law because of the disputes over any civil
act or event, if there is no clear provision in the effective laws, regulations or judicial interpretations at that time, such case
shall be dealt with in the light of the relevant provisions of the Company Law.

Article 3

When a lawsuit is lodged to the people’s court by the plaintiff for either of the reasons mentioned in Paragraph 2 of Article 22
and Paragraph 2 of Article 75 of the Company Law and if it exceeds the time limit as prescribed in the Company Law, the people’s
court shall reject it.

Article 4

The expression “180 consecutive days or more” mentioned in Article 152 of the Company Law shall be a full share-holding period when
the shareholder(s) initiate(s) a lawsuit to the people’s court. The expression “aggregately holding 1% or more of the total shares
of the company” means the aggregate of the shares, which is held by two or more shareholders.

Article 5

The Company Law shall not apply to the review of a case, which a final judgment has been made by the people’s court before the implementation
of the Company Law.

Article 6

These Provisions shall enter into effect as of the day of the promulgation.



 
the Supreme People’s Court
2006-04-28

 






ACCOUNTING STANDARDS FOR ENTERPRISES NO. 36 – DISCLOSURE OF AFFILIATED PARTIES

Accounting Standards for Enterprises No. 36 – Disclosure of Affiliated Parties

Cai Kuai [2006] No. 3
February 15, 2006
Chapter I General Provisions

Article 1

With a view to regulating the disclosure of information about affiliated parties and transactions among them, these Standards are
formulated in accordance with Accounting Standards for Enterprises – Basic Standards.

Article 2

An enterprise shall, in its financial statements, disclose the related information about all affiliated party relationships and the
transactions among them. If it offers consolidated financial statements to outsiders, it is not required to disclose the transactions
among the enterprises that have been included in the scope consolidation, but it shall disclose the affiliated party relationships
and transactions beyond the scope of consolidation.

Chapter II Affiliated Parties

Article 3

When a party controls, jointly controls or exercises significant influence over another party, or when two or more parties are under
the control, joint control or significant influence of the same party, the affiliated party relationships are constituted.

The term “control” means having the power to decide an enterprise’s financial and operating policy and obtains benefits from its business
activities.

The term “joint control” means control over an economic activity as specified by contract, which exists only when the investing parties
that need to share the power of control in important financial and operating decision-making agree unanimously.

The term “significant influence” means having the power to participate in the formulation of financial and operating policies of an
enterprise, but not the power to control or jointly control the formulation of these policies together with other parties.

Article 4

The following parties constitute the affiliated parties of an enterprise:

(1)

The parent company thereof;

(2)

The subsidiaries thereof;

(3)

Other enterprises under the control of the same parent company thereof;

(4)

The investors having joint control over the enterprise;

(5)

The investors having significant influence thereon;

(6)

The joint ventures thereof;

(7)

The associated enterprises thereof;

(8)

The main individual investors and the close family members thereof. A main individual investor refers to an individual investor who
can control or jointly control an enterprise, or has significant influence thereon; and

(9)

Key managerial personnel of the enterprise or of its parent company and the close family members thereof. Key managerial personnel
refer to those who have the power of and responsibility for planning, directing and controlling the activities of the enterprise.
The close family members of a main individual investor or of a key managerial person refer to the family members who may influence
or be influenced by that individual in handling transactions with the enterprise.

(10)

Other enterprises the main individual investors, key managerial personnel, or close family members of such individuals control, jointly
control or have significant influence over .

Article 5

Where one party has the following relationship with one enterprise, it is not an affiliated party thereof.

(1)

The capital providers, public utility units, government departments and organs which have normal dealings therewith;

(2)

A single customer, supplier, franchiser, distributor or agent with whom an enterprise transacts a significant volume of business
by virtue only of the resulting economic dependence; and

(3)

The joint venture operators which jointly control a joint venture therewith.

Article 6

Enterprises shall not be regarded as affiliated parties simply because they are all under the control of the state.

Chapter III Affiliated Party Transaction

Article 7

The term “affiliated party transaction” refers to an event whereby a transfer of resources, labor services or obligations takes place
between affiliated parties, irrespective of whether money is charged.

Article 8

The types of affiliated party transaction usually include as follows:

(1)

Purchases or sales of goods;

(2)

Purchasing or selling assets other than goods;

(3)

Rendering or receiving labor services;

(4)

Guarantying;

(5)

Providing capital (including loans or equity contributions);

(6)

Leasing;

(7)

Agency;

(8)

Transfer of research and development projects;

(9)

License agreements;

(10)

Settling debts on behalf of an enterprise or by this enterprise that represents another party; and; and

(11)

The emoluments for key managerial personnel.

Chapter IV Disclosure

Article 9

An enterprise shall, in the annotations to the financial statements, disclose the following information about the parent company
and subsidiaries thereof, irrespective of whether there have been transactions between them:

(1)

The names of the parent company and subsidiaries thereof

Where the parent company is not the ultimate controlling party of the enterprise, it shall disclose the name of the ultimate controlling
party.

Where neither the parent company nor the ultimate controlling party provides the financial statements to outsiders, it shall disclose
the name of the parent company which is its closest superior parent company providing financial statements to outsiders.

(2)

The nature of business, name, place of registration, and registered capital (or actually paid-in capital, stock capital) and changes
therein of the parent company and its subsidiaries; and

(3)

The proportion of shares or voting rights held by the parent company in this enterprise or by this enterprise in its subsidiaries.

Article 10

Where there have been transactions between an enterprise and its affiliated parties, it shall disclose the nature of the affiliated
party relationships, the types of transactions and the elements of transaction in the annotations. The elements of transaction shall
at least include:

(1)

the amount of transactions,

(2)

the amounts, terms and conditions of outstanding items, and the information about the guaranties granted to others or obtained,

(3)

the amounts of provisions for non-performing debts under outstanding items, and

(4)

price policies.

Article 11

Affiliated party transactions shall be disclosed on the basis of the affiliated parties and the types of the transactions involved.

The affiliated party transactions of similar types may be disclosed in aggregate in case that it does not affect readers’ correct
understanding of the financial statements.

Article 12

No enterprise may disclose an affiliated party transaction as a fair transaction unless it provides exact proofs.



 
Ministry of Finance
2006-05-15

 






REPLY OF THE STATE ADMINISTRATION OF TAXATION ABOUT THE ISSUE OF COLLECTING THE FEES FOR THE USE OF MINING AREAS FOR THE CHINESE-FOREIGN COOPERATIVE EXPLOITATION OF LAND OIL RESOURCES

Reply of the State Administration of Taxation about the Issue of Collecting the Fees for the Use of Mining Areas for the Chinese-foreign
Cooperative Exploitation of Land Oil Resources

Guo Shui Han [2006] No. 500

The Bureau of Local Taxation of Sichuan Province,

Your Request for the Instructions about the Fee Collecting Organ for the Use of Mining Areas for the Chinese-foreign Cooperative Exploitation
of Land Oil Resources (Chuan Di Shui Fa [2006] No. 37 ) has been received, and upon study, the reply is hereby given as follows:

Both the Chuanzhong Regional Cooperative Oil Field and the Zitong Regional Cooperative Oil Field in Sichuan Basin in your province
are land oil cooperative projects, in accordance with the relevant provisions in the Notice of the Ministry of Finance on the Relevant
Budgetary Management of the Payment of Fees for Use of Mining Areas for the Chinese-foreign Cooperative Exploitation of Land Oil
Resources (Cai Yu Zi [1999] No. 33) and the Notice of the State Administration of Taxation on the Collection Administration of the
Fees for Use of Mining Areas for the Chinese-foreign Cooperative Exploitation of Land Oil Resources (Guo Shui Fa [1999] No. 55),
the fees for using the aforesaid two cooperative oil fields shall be collected by the taxation authority at the locality of the oil
field and the specific measures for the collection administration shall be carried out in accordance with the Notice of the State
Administration of Taxation on Filing and Payment of Fees for Use of Mining Areas for the Chinese-foreign Cooperative Exploitation
of Land Oil Resources (Guo Shui Fa [1995] No. 202 ).

State Administration of Taxation

May 25, 2006



 
State Administration of Taxation
2006-05-25

 






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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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