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MEASURES FOR THE ADMINISTRATION OF CONSTRUCTING THE EXPORT INNOVATION BASE CONCERNING REVITALIZING TRADE THROUGH SCIENCE AND TECHNOLOGY (FOR TRIAL IMPLEMENTATION)

Circular of the General Office of the Ministry of Commerce concerning Printing and Transmitting Measures for the Administration of
Constructing the Export Innovation Base concerning Revitalizing Trade through Science and Technology(for Trial Implementation)

Shang Chan Zi [2006] No. 73

The competent departments of commerce in all the provinces, autonomous regions, municipalities, cities specifically designated in
the state plan, and Xinjiang Production and Construction Corporations:

In order to implement the spirit of the central economic working conference, the national science and technology conference and the
national commerce working conference, to press ahead the organization and implementation of the program of revitalizing trade through
science and technology, and to substantially strengthen the administration and guide toward the construction of export innovation
base, the Measures for the Administration of Constructing the Export Innovation Base concerning Revitalizing Trade through Science
and Technology(for Trial Implementation) will now be printed and transmitted to you.

The construction of export innovation base, an utterly new task, is an important carrier for deeply implementing the strategy of revitalizing
trade through science and technology and transforming the growth pattern of foreign trade. Adhering to the principle of step by step
and advancing steadily, the construction of export innovation base will be carried out step by step on the basis of trial bases of
this year. All the relevant local authorities shall improve their awareness and take the lead to organize the work in a bid to establish
and perfect the construction mechanism of export innovation work and to push forward this task in the spirit of innovation.

The competent departments of commerce in all the provinces, autonomous regions, municipalities, cities specifically designated in
the state plan, and Xinjiang Production and Construction Corporations shall, in light of the spirit of Measures for the Administration
of Constructing the Export Innovation Base concerning Revitalizing Trade through Science and Technology(for Trial Implementation),
organize the relevant authorities as soon as possible to adjust and perfect the plan concerning the application for export innovation
base and supplement the necessary material or recommend export innovation bases again. The aforesaid recommendation document about
export innovation base shall be submitted to the Ministry of Commerce (Department of Commercial Affairs) before September 15, 2006.

General Office of the Ministry of Commerce

August 31, 2006

Measures for the Administration of Constructing the Export Innovation Base concerning Revitalizing Trade through Science and Technology
(for Trial Implementation)
Chapter I General Principle

Article 1

In the spirit of the Decision of Central Committee of the Communist Party of China and the State Council concerning Implementing
the Plan of Science and Technology and Strengthening Autonomous Innovation(Zhong Fa[2006] No.4) and Several Opinions of the General
Office of the State Council about Transmitting the Strategy of Further Implementing the Plan of Revitalizing Trade through Science
and Technology Made by Such Eight Authorities as the Ministry of Commerce (Guo Ban Fa[2003] No.92), the Ministry of Commerce has
organized “the project of revitalizing trade through science and technology”, and started to establish “the export innovation base
of revitalizing trade through science and technology”(hereinafter referred to as “export innovation base”). The Measures herein is
formulated In order to substantially strengthen the administration, supervision and guidance upon export innovation base, perfect
the construction work mechanism of export innovation base and to guarantee the sound development of export innovation base.

Article 2

The export innovation base refers to the rather perfect industrial conglomeration zone which is endowed with striking industrial
character, some export scale, fairly strong international competitiveness and international exploitation capability, technological
innovation spirit, rather strong model, lead and radiation capability, perfect industrial chain and supplementary system.

Article 3

The export innovation base may be constructed by taking advantage of the preferential industrial park, flagship enterprise or the
prefectural and below administrative regions.

The construction of export innovation base shall not emphasis on constructing infrastructure or expanding new land.

Article 4

The main task of constructing export innovation base shall be to encourage and support industrial technical innovation, cultivate
and building its industrial scale, improve its international competitiveness, optimize the trade environment, strengthen the construction
of public service platform, improve the development quality and efficiency, and to promote the combination of trade, science and
technology and industry.

Article 5

The whole plan of the construction of export innovation base shall be emphasized to reasonably distribute resources, innovate mechanism,
actively explore and construct the multi-channel, multi-levels, multi-means supporting system in a bid to increase the leading role
of the industry and to promote the export restructuring and optimize its upgrade.

Article 6

The Ministry of Commerce as well as the relevant authorities shall take relevant measures to create an environment conducive to the
construction and development of export innovation base and give prior support to the export innovation base items which meet the
relevant commercial policies.

Chapter II Administration Authorities and the Relevant Responsibilities

Article 7

The Ministry of Commerce and the competent provincial departments of commerce in all the provinces, autonomous regions, municipalities
and cities specifically designated in the state plan(hereinafter referred to as “the competent provincial departments of commerce
“) shall be jointly responsible for administering, guiding and supervising the construction of export innovation base.

Article 8

The Ministry of Commerce shall be responsible for administering and guiding the construction of export innovation base, working out
the general plan for export innovation base development and putting it into practice and setting the development objective and task
hereof, working out the policies and measures concerning promoting the development of export innovation base construction, nailing
down the application and conformation time, condition and procedure of export innovation base.

Article 9

The competent provincial departments of commerce shall be responsible for administering and guiding the construction of the local
export innovation base, compiling the development plan hereof, establishing and perfecting the local system hereof, guiding, coordinating
and administering the important export items in the construction hereof, undertaking the statistics, promotion, investigation, study
and publicity hereof.

Article 10

The certified export innovation base unit shall be led by the competent provincial departments of commerce to establish the relevant
leading group hereof to be responsible for coordinating and working out construction plan and to put it into practice.

Article 11

The leading group of export innovation base shall strengthen its communication and coordination with the relevant departments, strive
to win the support of the relevant policy, perfect the policy hereof, put into practice the publicity of revitalizing trade through
science and technology and autonomous innovation, formulate and promulgate the relevant coordinating policies.

Article 12

The leading group of export innovation base shall gradually establish and perfect the system of its dynamic track of the export innovation
base and regular assessment and information submission, paying attention to investigation and study, regularly inform the Ministry
of Commerce of the construction of export innovation base to ensure the substantial and effective advancement hereof.

Chapter III Application and Confirmation of Export Innovation Base

Article 13

The competent provincial departments of commerce shall be responsible for organizing the application and initial assessment of the
local export innovation base and the Ministry of Commerce shall be responsible for the confirmation hereof.

Article 14

The competent provincial departments of commerce shall decide the suitable unit for application in light of the local condition.

The application unit shall in light of the relevant requirements submit the application document to the competent provincial departments
of commerce for summation, which shall submit the final application documents and the initial opinion concerning the local export
innovation base to the Ministry of Commerce.

Article 15

The Ministry of Commerce shall, in light of the principle of openness, equity and transparency, establish the assessment expert committee
of export innovation base on the merit of the confirmation condition and organize the experts to assess the implementation application
plan after having received application documents from the local authorities, to undertake strict assessment upon the application
documents submitted by local authorities and to confirm the export innovation base.

Article 16

Basic conditions for confirming export innovation base:

(1)

to compile the development plan of export innovation base and to nail down the development direction and objectives in accordance
with the 11th Five-year Plan for National Economic Development and the 11th Five-year Plan for Revitalizing Trade through Science
and Technology;

(2)

striking industrial character, fairly strong industrial base, the export of more than $30 million of relevant products and about stable
growth of nearly three years;

(3)

striking industrial and technical advantages, the production scale of main products shall take the lead in domestic market and take
some proportion in domestic and foreign market, the investment in research and development shall reach or exceed 3% of the total
income;

(4)

it has established rather perfect industrial coordinating system and public service system with sound industrial development environment;

(5)

the industry shall have strong autonomous innovation capability and international competitiveness, establish rather perfect autonomous
innovation and intellectual property management system and the main export products has gained the relevant certification of the
main export nations and regions.

Region pattern and industrial division shall be fully taken into consideration in the process of export innovation base, the aforesaid
standard may be appropriately lowered for the application units in northeast old industrial base and the middle and western region.

Article 17

The application unit for export innovation base shall submit the application hereof. The application shall include the following:

(1)

the development of the main industries of the application unit and its export condition;

(2)

the development plan and implementation plan of export innovation base;

(3)

the supporting policy of revitalizing trade through science and technology put forward by the local government;

(4)

the production scale of the main products of the enterprises in the base and the explanation for the lead of its technology in China;

(5)

technological innovation of the enterprises in the base and its own intellectual property;

(6)

the certificate of export of the previous year issued by local authority in responsible for commerce and the authorities of customs;
and

(7)

other documents.

Article 18

The award of “export innovation base of revitalizing trade through science and technology” will be conferred to the confirmed unit
hereof by the Ministry of Commerce.

Article 19

The professional name shall be conferred to the export innovation base in light of the preferential high-tech industrial regions.

Chapter IV Assessment, Supervision and Administration

Article 20

The Ministry of Commerce as well as other authorities shall carry out comprehensive assessment regularly upon the construction of
export innovation base and its operation and undertake dynamic administration thereon.

Article 21

The Ministry of Commerce as well as other authorities shall summarize and publicize typical experience for the soundly developed
export innovation base and strengthen its support hereto, demand the inefficient export innovation base to rectify and reform itself
within the tine limit until the qualification of export innovation base is canceled.

Article 22

All the statistics about the construction and development of export innovation base shall be precise, scientific and may not be concealed
or falsely reported, otherwise, upon verification, a warning or announcement of criticism will be given, or even its qualification
of export innovation base will be canceled.

Chapter V Appendix

Article 23

The competent provincial departments of commerce may formulate detailed rules in respect of export innovation of the local region
under the Measure herein.

Article 24

The Ministry of Commerce shall be responsible for interpreting the Measure herein.

Article 25

The Measures herein shall come into force as of the date when they are printed and distributed.



 
The General Office of the Ministry of Commerce
2006-08-31

 







REPLY OF THE STATE COUNCIL ON THE DECISION THAT THE CONVENTION OF UNIFYING SEVERAL RULES ON INTERNATIONAL AIR TRANSPORT APPLIES TO HONG KONG SPECIAL ADMINISTRATIVE REGION

Reply of the State Council on the Decision That the Convention of Unifying Several Rules on International Air Transport Applies to
Hong Kong Special Administrative Region

Guo Han [2006] No.92

Civil Aviation Administration of China and Ministry of Foreign Affairs,

The State Council agrees on the decision made on February 28, 2005 by the Standing Committee of the National People’s Congress of
the People’s Republic of China on approving that the Convention of Unifying Several Rules on International Air Transport applies
to Hong Kong Special Administrative Region, and the specific formalities shall be conducted by the Ministry of Foreign Affairs.

The State Council

September 7, 2006



 
State Council
2006-09-07

 







CIRCULAR OF THE MINISTRY OF FINANCE & THE STATE ADMINISTRATION OF TAXATION ON ADJUSTING THE STANDARD OF THE TAXABLE AMOUNT OF COAL RESOURCE TAX OF JILIN PROVINCE

Circular of the Ministry of Finance & the State Administration of Taxation on Adjusting the Standard of the Taxable Amount of
Coal Resource Tax of Jilin Province

Cai Shui [2006] NO.131

The public finance department and the local taxation bureau of Jilin Province:

It is decided upon deliberation that the standard of the taxable amount of coal resource tax of your province will be increased to
2.5 yuan per ton as of September 1, 2006.

Please abide hereby.

Ministry of Finance

State Administration of Taxation

September 15, 2006



 
Ministry of Finance, State Administration of Taxation
2006-09-15

 







CATALOGUE OF PRIORITY INDUSTRIES FOR FOREIGN INVESTMENT IN LIAONING PROVINCE

Decree No. 47, 2006 of the National Development and Reform Commission and the Ministry of Commerce, Catalogue of Priority Industries
for Foreign Investment in Liaoning Province

No. 47

The Catalogue of Priority Industries for Foreign Investment in Liaoning Province has been approved by the State Council. As part of
the Catalogue of Priority Industries for Foreign Investment in the Central-Western Region, it is hereby promulgated and shall go
into effect as of the promulgation day.

In accordance with the Opinions of the General Office of the State Council on Promoting the Opening-up of the Old Industrial Base
in Northeast China (Guo Ban Fa [2005] No. 36), Liaoning Province is added into the Catalogue of Priority Industries for Foreign Investment
in the Central-Western Region. All foreign-funded projects falling within the present Catalogue may enjoy the preferential policies
for foreign-funded projects under the encouraged category. All foreign-funded projects under construction in line with the provisions
of the present Category could be implemented in light of the related policies herein.

Ma Kai, Director of the National Development and Reform Commission

Bo Xilai, Minister of the Ministry of Commerce

September 25, 2006

Catalogue of Priority Industries for Foreign Investment in Liaoning Province

1.

Development and production of the seeds (seedlings) of grain, oil plants, vegetables and fruits (excluding transgenic seeds) (China
party holding);

2.

Feeding and product deep- processing of meat chickens, live pigs, beef cattle, meat sheep, cows, deer and cashmere goats;

3.

Follow-up industrial development of state key ecological projects including the project of restoring farmland to forest or pasture;

4.

Processing and comprehensive utilization of oil shale, magnesium, zircon, etc. (China party relatively holding);

5.

Spinning, knitting and garment processing of high-grade cotton, fir, hemp, silk (tussah silk) and chemical fiber;

6.

Deep processing of natural medicine, raw material medicine, and traditional Chinese medicine, and production of their derivatives
(not including raw material production of vitamin C and penicillin, and all items under the prohibited category of the Catalogue
of Industries for Guiding Foreign Investment);

7.

Production of new type dry processing cement by using cement clinker with a daily production capacity of over 4, 000 tons;

8.

Production of such products as methanol with coal as raw materials by using large-size equipments and techniques (over 0.6 million
tons per year);

9.

Production of million-ton ethylene and its downstream deep-processing products;

10.

Radial tire production;

11.

Manufacture of metal packing, automatic & three-dimensional storage and logistic warehousing equipments;

12.

Manufacture of automobile spare parts and accessories;

13.

Manufacture of vessel diesel engine, auxiliary engine, accessories and spare parts;

14.

Development and production of digital medical fixtures and key components;

15.

Deep-processing of copper plate and strip with high precision;

16.

Manufacture of steel lines and ultra-thin steel ropes;

17.

Medical institutions, upon approval, allow foreign- controlled;

18.

Construction and operation of urban centralized supply of heat, gas and drainpipe network, upon approval, allow foreign-controlled;

19.

Development and protection of scenic spots, and construction and operation of supporting facilities thereof;

20.

Projects of deep-processing and continuous industry in resource-exhausted cities, upon approval, may enjoy the policies for the encouraged
category.



 
The National Development and Reform Commission, the Ministry of Commerce
2006-09-25

 







NOTICE OF THE GENERAL OFFICE OF THE NATIONAL DEVELOPMENT AND REFORM COMMISSION AND THE GENERAL OFFICE OF THE MINISTRY OF FINANCE ON THE PRINT AND DISTRIBUTION OF THE WORK RULES FOR THE PRELIMINARY ADMINISTRATION OF LOAN PROJECTS OF FOREIGN GOVERNMENTS (FOR TRIAL IMPLEMENTATION)

Notice of the General Office of the National Development and Reform Commission and the General Office of the Ministry of Finance on
the Print and Distribution of the Work Rules for the Preliminary Administration of Loan Projects of Foreign Governments (for Trial
Implementation)

The development and reform commissions and the public finance departments (bureaus) of each province, autonomous region, municipality
directly under the Central Government, city specifically designated in the state plan and Xinjiang Production and Construction Group,
each relevant department of the General Office of the State Council, each relevant enterprise directly under the central authorities
and each enterprise group specifically designated in the state plan:

For the purpose of intensifying the administration of loan projects of foreign governments (except for the loan projects of the Japanese
Government) and regulating the relevant management work procedures, the Work Rules for the Preliminary Administration of Loan Projects
of Foreign Governments (for Trial Implementation) are formulated jointly by the National Development and Reform Commission and the
Ministry of Finance and are hereby printed and distributed to you for implementation.

Appendix: Work Rules for the Preliminary Administration of Foreign Government Loan Projects (for Trial Implementation)

General Office of the State Development and Reform Office of the State Council

General Office of the Ministry of Finance

October 9, 2006
Appendix:
Work Rules for the Preliminary Administration of Foreign Government Loan Projects (for Trial Implementation)

Article 1

For the purpose of further regulating the administration of loan projects of foreign governments and elevating the benefits from
the utilization of loans of foreign governments, and in accordance with the related rules and bylaws of the National Development
and Reform Commission and the Ministry of Finance on the administration of loans of foreign governments and in combination of the
related policies for foreign governments to offer the related aids for development, these Work Rules are formulated.

Article 2

The related preliminary administration of loan projects of foreign governments (except for the loan projects of the Japanese Government)
shall be governed by these Rules.

Article 3

The Ministry of Finance shall be responsible for timely announcing the information about loans of foreign governments, publicizing
such information as the scale, field, loan conditions, procurement conditions of the official loans for development provided to China
by foreign governments. As to any particular requirement of a foreign party, the Ministry of Finance shall timely inform the related
department.

Article 4

A project entity that plans to use any loan of the foreign government shall apply for being incorporated into the project planning
prepared for loans of foreign governments to the provincial department of development and reform through the local department of
development and reform where the project is located, and a copy shall be reported to the local department of public finance as well.
The related departments of the State Council, enterprises directly under the central authorities and enterprise groups specifically
designated in the state plan (hereinafter referred to as the “central project entities”) may directly apply to the National development
and Reform Commission for the incorporation into the project planning prepared for loans of foreign governments, and a copy shall
be made to the Ministry of Finance as well.

Article 5

Where the provincial administrative department of development and reform receives a project entity’s application, it shall solicit
for the opinion of the provincial administrative department of public finance. After the application passes the preliminary examination
conducted by both of the above-mentioned departments on the basis of their respective functions and duties, the provincial administrative
department of development and reform shall apply for the incorporation into the project planning prepared for foreign governments’
loans to the National Development and Reform Commission, and a copy shall be made and submitted to the provincial administrative
department of finance as well.

Article 6

The National Development and Reform Commission shall carry out an examination on the project planning s prepared for loans of foreign
governments reported by the provincial administrative department of development and reform and central project entities, distribute,
on a quarterly basis, the project planning prepared for loans of foreign governments to the provincial administrative department
of development and reform and related central project entities, set the external debt scale and make a copy for the Ministry of Finance.
The provincial administrative department of development and reform shall inform the project entities and the related provincial administrative
department of finance of the project planning prepared for loans of foreign governments. The valid term of the projects that have
been included in the project planning prepared for loans of foreign governments’ is 1 year as of the day of distribution. In case
any project fails to get the incorporation into a checklist of projects prepared for loans of foreign governments (hereinafter referred
to as the “checklist of prepared projects”), the project shall be deleted from the project planning prepared for loans of foreign
governments automatically.

Article 7

where a project has been incorporated into the prepared project planning, the local project entity shall apply for the utilization
of loans of foreign governments through the local administrative department of public finance, and a copy shall be made and submitted
to the local administrative department of development and reform as well. The provincial administrative department of public finance
shall carry out an appraisal on the project application. If a project has passed the appraisal, the provincial administrative department
of public finance shall report the application for the utilization of loans of foreign governments to the Ministry of Finance, which
shall be simultaneously submitted to the administrative department of development and reform as well. A central project entity may
directly file an application with the Ministry of Finance for the utilization of loans of foreign governments to the Ministry of
Finance, which shall be submitted to the National Development and Reform Commission concurrently as well.

Article 8

After receiving an application from the provincial administrative department of finance and a central project entity, the Ministry
of Finance shall carry out an examination on the basis of the requirements for the project field of the loan country as well as applicable
quota of the loan, and incorporate the projects that meet all the requirements into the checklist of prepared projects. The Ministry
of Finance shall, on a quarterly basis, distribute a checklist of prepared projects to the provincial administrative departments
of finance, central project entities and re-loaning banks, and submit the checklist of prepared projects to the National Development
and Reform Commission The provincial administrative department of public finance shall, at the same time, submit the checklist of
prepared projects to the provincial administrative department of development. The valid term of any project that has been incorporated
into the checklist of prepared projects, is 1 year as of the day of distribution. The project shall be deleted from the checklist
of prepared projects automatically if the formalities for examination and approval, verification or archival filing of any project
fail to be concluded within 1 year.

Article 9

After receiving the checklist of prepared projects from the Ministry of Finance, the provincial administrative department of finance
and central project entities shall organize, guide or supervise the borrower in its designating the related purchasing agent company,
and re-loaning bank to carry out the preliminary re-loaning work. in light with the relevant provisions of the Ministry of Finance
on the bidding of procurement proxy companies of loan projects of foreign governments

Article 10

In case a project has been incorporated into the checklist of prepared projects, the related project entity shall handle the formalities
for examination and approval, verification and archival files with the state or provincial administrative department of development
and reform in light of the related procedures. The provincial administrative department of development and reform shall, submit the
project approval documents to the Financial Department of the Ministry of Finance and the provincial administrative department of
public finance. The National Development and Reform Commission shall submit the project approval documents to the Ministry of Finance.

Article 11

In case a project has been incorporated into the checklist of prepared projects and has concluded the formalities for examination
and approval, verification and archival filing with the department of development and reform, the Ministry of Finance shall submit
it to the related foreign government and loaning institution at an appropriate time and shall inform the provincial administrative
department of public finance and the related central project entity of the feedback opinions of examination or appraisal on the related
project, which shall be simultaneously submitted to the National Development and Reform Commission as well. The provincial administrative
department of public finance shall submit the related opinions to the provincial administrative department of development and reform
at the same time.

Article 12

In case a project that the Ministry of Finance has raised to a foreign government and if the foreign government has no different
opinion, the local project entity shall report to the National Development and Reform Commission about the application for project
funds through the provincial administrative department of development and reform. An application report on project funds shall be
submitted to the National Development and Reform Commission by a central project entity.

Where the State Council or the National Development and Reform Commission carries out examination and approval on the feasibility
report of projects, the related application for project funds need not be examined and approved separately.

Article 13

After an application report on project funds has been examined and approved, The National Development and Reform Commission shall
make a reply to it and submit it to the Ministry of Finance, for which the provincial administrative department of development and
reform shall circulate it to the provincial administrative department of public finance. The valid term of an application report
of project funds shall be 2 years as of the day of approval. The approval document shall be invalidated automatically if no re-loaning
agreement is signed within 2 years.

Article 14

After the approval of an application report on project funds or any feasibility research report that has been examined and approved
by the State Council or the National Development and Reform Commission, the project entity or purchasing agent company shall, in
accordance with the approval contents as well as the specific requirements put forward by the foreign government in the project appraisal,
carry out related bidding and purchase procurement in accordance with the related rules, bylaws and work procedures of loans of foreign
governments. The re-loaning bank shall conclude the loan agreement and sign a re-loaning agreement with the borrower in accordance
with the related provisions. In case any project for which the provincial administrative department of public finance makes repayment
or offers a guaranty, the related formalities for the re-loaning agreement shall be handled upon the confirmation of the debts or
guaranty liabilities by the provincial administrative department of public finance.

Article 15

Before a re-loaning agreement enters into force, in the case of any project alteration, the relevant formalities shall be handled
respectively under the following circumstances:

(1)

In case a project entity is split up, merged or acquired or the project is carried out by any other entity, the reply documents related
to the project that has been listed into the project planning prepared for loans of foreign governments shall be invalidated automatically.
The project entity shall, upon alteration and under the provisions of these Work Rules, handle the related formalities again.

(2)

In case a project has been listed into the project planning prepared for loans of foreign governments, the adjustment plan shall be
reported to the National Development and Reform Commission for approval where the scale of external debts is expanded or the purpose
of use of capital is adjusted. As to any project that has been listed into the project planning prepared for loans of foreign governments,
where the project category , the loaning country, re-loaning bank or the loan amount is adjusted, it shall be examined and approved
by the provincial administrative department of public finance and thereafter, the adjustment plan shall be submitted to the Ministry
of Finance for approval;

(3)

In case an application report of project funds is approved yet if the loaning country is changed, any expansion of the external debt
or any alteration of the purpose of capital use, the adjustment plan shall be reported to the National Development and Reform Commission
for approval under the procedures as prescribed herein and shall be reported to the Ministry of Finance through the provincial administrative
department of finance and the related formalities shall be handled after being approved by the Ministry of Finance.

In case a central project entity goes through any of the above-mentioned alteration, it shall file an application with the National
Development and Reform Commission and the Ministry of Finance for handling the related formalities.

Article 16

These Work Rules shall be carried out as of November 9, 2006.



 
General Office of the National Development and Reform Commission, the General Office of the Ministry of Finance
2006-10-09

 







ANNOUNCEMENT OF THE STATE FOOD AND DRUG ADMINISTRATION ON MODIFICATION OF THE CATALOGUE OF IMPORTED DRUGS

Announcement of the State Food and Drug Administration on Modification of the Catalogue of Imported Drugs

Guo Shi Yao Jian Zhu [2006] No.544

The State Food and Drug Administration and the General Administration of Customs issued the Announcement No. 9 on Formulation of the
Catalogue of Imported Drugs on December 30, 2003; the State Food and Drug Administration issued the Announcement on the Registration
of the Imported Drugs and Other Issues(Guo Shi Yao Jian Zhu[2006]No.655) to add codes to some of the goods. On the basis of the current
administration of the imported drugs, modifications are made after research to the Catalogue of Imported Drugs as follows:

I.

Frankincense, myrrh, dragon’s blood and aloe (see the appendix for their codes) are added to the catalogue. As of November 1, 2006,
the customs shall go through the procedures of declaration and examination by the Customs Clearance Form for Imported Drugs, endorsed
by departments authorized by the State Food and Drug Administration and with an official seal of ￿￿ Drug Administration for drug
registration, and other related documents.

II.

Griffonia seed, Asiatic plantain seed and Yohimbe bark are isolated from “Other Fresh or Dried Herbs Used as Medicinal Materials”
(Code: 12119039 99) with 12119039 92 as their code. As of November 1, 2006, the customs shall not examine the Customs Clearance Form
for Imported Drugs for the above-mentioned three medicinal materials.

State Food and Drug Administration

October 23, 2006



 
State Food and Drug Administration
2006-10-23

 







DECISION OF THE STANDING COMMITTEE OF THE NPC CONCERNING THE AUTHORIZATION OF THE HONG KONG SAR TO EXERCISE JURISDICTION OVER ITS PORT ZONE WITHIN SHENZHEN BAY PORT

Decision of the Standing Committee of the NPC Concerning the Authorization of the Hong Kong SAR to Exercise Jurisdiction over Its
Port Zone within Shenzhen Bay Port

October 31, 2006

(Adopted at the 24th session of the Standing Committee of the 10th NPC of the People’s Republic of China on October 31, 2006)

At the 23rd session of the Standing Committee of the 10th NPC of the People’s Republic of China, the proposal of the State Council
concerning the authorization of the Hong Kong SAR to exercise jurisdiction over its port zone within Shenzhen Bay Port is deliberated,
and at the 24th session of the Standing Committee of the 10th NPC of the People’s Republic of China, the draft decision concerning
the authorization of the Hong Kong SAR to exercise jurisdiction over its port zone within Shenzhen Bay Port is deliberated. The aforesaid
24th session holds that: for the purpose of easing the land customs clearance pressure which is brought about by the increasing exchanges
between the Mainland and the Hong Kong SAR, adapting to the objective requirement for facilitating transportation and customs clearance
between Shenzhen Municipality and the Hong Kong SAR, promoting the personnel exchanges as well as economic and trade exchanges between
the Mainland and the Hong Kong SAR, and promoting mutual economic development of both the Mainland and the Hong Kong SAR, it is necessary
to establish the Hong Kong port zone within Shenzhen Bay Port reserved for the use of customs clearance and inspection of persons,
transport vehicles and goods. The Standing Committee of the 10th NPC hereby decides that:

1.

As from the day when the Shenzhen Bay Port is opened for use, the Hong Kong SAR is authorized to exercise jurisdiction over its port
zone within Shenzhen Bay Port in accordance with the laws of the Hong Kong SAR.

The Hong Kong SAR shall exercise the FCA (Frontier Closed Area) administration over the Hong Kong port zone within Shenzhen Bay Port.

2.

The scope of the Hong Kong port zone within Shenzhen Bay Port shall be stipulated by the State Council.

3.

The land use term of the Hong Kong port zone within Shenzhen Bay Port shall, in accordance with the relevant laws, be determined by
the State Council.



 
the Standing Committee of the NPC
2006-10-31

 







NOTICE OF THE FOREIGN TRADE DEPARTMENT OF THE MINISTRY OF COMMERCE ON HOLDING THE INFORMATION RELEASE CONFERENCE OF THE AGRICULTURE PRODUCT EXPORT AND THE PROSEMINAR OF THE POLICY FOR FAVORING PEASANTS

Notice of the Foreign Trade Department of the Ministry of Commerce on Holding the Information Release Conference of the Agriculture
Product Export and the Proseminar of the Policy for Favoring Peasants

Shang Mao Nong Chu Han [2006] No.114

The competent administration of commerce of each province, autonomous region, municipality directly under the Central Government,
and city specifically designated in the state plan:

For the purpose of implementing the spirit of constructing new socialist villages, further improving the information service for the
export of agriculture products, and help the enterprise for agriculture products export to acquaint with and master the policy for
favoring peasants in all around, the Ministry of Commerce is to hold a Information Release Conference of the Agriculture Product
Export and the Proseminar of the Policy for Favoring Peasants in the People’s Hall, Beijing on September 11 and the leaders of the
competent departments of the Ministry of Commerce will present and give speeches. We hereby notify the related matters as follows.

1.

Main content of the conference

(1)

Releasing the market guidance, product guidance and related statistic reports of the agriculture product, starting using the website
of information service for the agriculture product export. Releasing and presenting the Market Guidance for the Export of the Chinese
Agriculture Product of 6 markets including that of EU, ASEAN, Canada, India, South Africa and United Arab Emirates, the Product Guidance
for the Export of the Chinese Agriculture Product of tea, garlic, canned mushroom￿￿ chicken products, the Monthly Statistic Report
for the Export of the Important Agriculture Product and the Monthly Report for the Agriculture Product Trade of 30 Countries of rice,
cotton and other 13 products and holding the Starting Using Ceremony of the Special Website of Information Service for the Agriculture
Product Export (https://agro-trade.mofcom.gov.cn).

(2)

Inviting principals of related departments to explain the policies and measures of promoting the agriculture product export. The office
of the Central Leading Group for the Rural Work will explain new developments and the policies and measures of promoting the construction
of the new villages; the Ministry of Agriculture will interpret the new policies and measures of accelerating the development of
industrialization of the agriculture; the State Administration of Quality Supervision, Inspection and Quarantine will present the
policy of enforcing exemption from inspection of the agriculture product export for the pilot and the measures for decreasing the
export cost; the National Certification and Accreditation Administration will interpret the policy and measures for promoting the
agriculture product enterprise to develop the Good Agriculture Processing (GAP) and Certification Procedures ; the China Export &
Credit Insurance Corporation will present the creative products of credit insurance, such as insurance of pre-transport risk, which
are conducted in the field of the agriculture product export for the pilot; the Foreign Trade Department of the Ministry of Commerce
will release the analyses of the position of the 2007 agriculture product export and the market anticipation report; the International
Department of the Ministry of Commerce will illustrate how to enlarge export to the ASEAN by taking advantage of preferential arrangements
such as Obtaining at an Early Stage in the ASEAN Free Trade Area; the Fair Trade Department of the Ministry of Commerce will explain
how to respond to the international trade dispute to protect the interests of itself; the Computerized Processing Department of the
Ministry of Commerce will tell how to enlarge export by using the information resources from the Ministry of Commerce; and the China
Chamber of Commerce of Import and Export of Foodstuffs, Produce & Animal by Products will evaluate the impact of the implementation
of the System of the Japan Affirmation List and give the next coping suggestion .

2.

Objectivs of Being Present

Comrades at the division level in charge of the agriculture product export of the competent administrations of commerce shall take
part in the conference and the principals of one or two local important enterprises for agriculture products export shall be organized
to take part in the conference.

3.

Time and Place of the Conference

Time: 9￿￿0-17￿￿0 on November 29, 2006

Place: Henan Office of the People’s Hall

4.

The Preliminary Schedule

09￿￿0-10￿￿0 Trade Information Release Conference of the Agriculture Product

10￿￿0-12￿￿0 Proseminar of the Policy for Favoring Peasants

12￿￿0-13￿￿0 Lunch (in Macro Office of the People’Hall )

13￿￿0-17￿￿0 Proseminar of the Policy for Favoring Peasants

5.

Concrete Arrangements

(1)

Registration Time and Place for

The registration will be conducted at 13￿￿0-22￿￿0, November 28, 2006 in the Taiwan Restaurant, Beijing (No.5 Jinyu Hutong, Wangfujing
Street, Beijing; telephone: 65136618) (Annotated: the People’s Hall is accessible on the strength of the invitation. The delegates
shall go through the registration formalities in advance to obtain the invitation and the conference materials. The conference group
will arrange vehicles uniformly to head for the People’s Hall from Taiwan Restaurant at 8:00 on 29th. The delegates in Beijing region
who plan to go up to the conference place by themselves shall contact with the conference group for the invitation and the parking
license.

(2)

Fees

The delegates shall be free of fees for the Conference and bare the board and lodging expenses themselves. 200 Yuan shall be charged
for the lunch in the People’s Hall for present day from each delegate.

(3)

Contact Means

The conference group (in the China Chamber of Commerce of Import and Export of Foodstuffs, Produce & Animal by Products): Zhang
Xun, Chen Xiaoru

Registration Telephone: 010-65132376, 65235595, 010-65132307(Fax)

The Foreign Trade Department of the Ministry of Commerce: Luan Ming, Xun Sen

Consulting Telephone: 010-65197133￿￿65197445

The delegate shall fill in the Return Receipt for the Conference and fax it to the conference group in the China Chamber of Commerce
of Import and Export of Foodstuffs, Produce & Animal by Products

Annex: Return Receipt for the Conference

The Foreign Trade Department of the Ministry of Commerce

November 8, 2006



 
The Ministry of Commerce
2006-11-08

 







CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION CONCERNING THE RELATED PREFERENTIAL POLICIES OF ENTERPRISE INCOME TAX FOR SUPPORTING THE DEVELOPMENT AND OPENNESS OF BINHAI NEW AREA OF TIANJIN

Circular of the Ministry of Finance and the State Administration of Taxation concerning the Related Preferential Policies of Enterprise
Income Tax for Supporting the Development and Openness of Binhai New Area of Tianjin

Cai Shui [2006] No. 130

The Finance Department (bureau), State Taxation Bureau and Local Taxation Bureau of Tianjin Municipality:

For the purpose of implementing the Opinions of the State Council on the Rated Issues about Promoting the Development and Openness
of Binhai New Area of Tianjin (Guo Fa [2006] No. 20), the related preferential policies of enterprise income tax for Binhai New Area
of Tianjin (BNAT) are hereby notified as follows:

1.

As for the preferential tax policies for new and hi-tech enterprises

The enterprise income tax shall be levied at a reduced tax rate of 15% for Chinese-funded or foreign-funded newand hi-tech enterprises,
which are established within the BNAT and recognized by the science and technology administrative department of Tianjin Municipality
in accordance with the relevant provisions of the State.

The current preferential tax policies can be applicable to those enterprises within Tianjin Economic and Technological Development
Zone, Tianjin Port Bonded Area, Tianjin Export Processing Zone or Tianjin New Technology Industrial Park continuously; and if any
of the aforesaid enterprises simultaneously satisfies the provisions in the preceding Paragraph, a reduced enterprise income tax
rate of 15% can be levied on it . In case that preferential tax policies overlap, an enterprise has the right to choose to apply
one policy and may not enjoy two or more preferential policies simultaneously.

2.

As for increasing the depreciation rate of fixed assets

The depreciation period for the fixed assets (excluding houses and buildings) of an enterprise within the BNAT may be shortened at
40% or lower on the basis of the current provisions. The specific dimensions for implementation are shown as follows:

(1)

The “fixed assets for which the depreciation period is shortened at 40%” means the fixed assets that are newly bought by the enterprises
after July 1, 2006 and those bought before July 1, 2006 and have not completed the depreciation yet, of which, the depreciation period
of the fixed assets (excluding houses and buildings) that are bought by the enterprises prior to July 1, 2006 shall be shortened
at 40% or lower on the basis of the period that the depreciation has not been conducted.

(2)

The “current provisions” about depreciation period means the financial rules for different industries promulgated by the Ministry
of Finance and other related State provisions that are currently carried out by the enterprises. Where any enterprise has adopted
the balance declining method or the method of total number of years for its fixed assets as prescribed in the Notice of the State
Administration of Taxation concerning the Follow-up Administrative Work on Transferring the Power of Examination and Approval for
the Accelerated Depreciation of Fixed Assets to Lower Levels (Guo Shui Fa [2003] No. 113) prior to July 1, 2006, it shall be deprived
of changing to use the method of shortening the depreciation period.

(3)

With regard to the fixed assets (excluding houses and buildings) that are purchased after July 1, 2006, an enterprise can choose one
from the three methods: the method of shortening the depreciation period, the balance declining method, and the total number of years
method, and may not implement two or more of the said methods at the same time. After the method is determined, the enterprise may
not make change at random.

(4)

An enterprise may freely choose the proportion for shortening the depreciation period of fixed assets no more than 40%. After the
proportion is determined, it may not change the proportion at random in the following years. And an enterprise may also choose a
certain part of fixed assets for accelerated depreciation according to the requirements for its production and business operation,
and may not change the scope at will in the following years since the scope is determined.

3.

As for shortening the amortization year for intangible assets

With respect to the intangible assets as accepted or invested in by the enterprises in the BNAT, the depreciation period may be shortened
at 40% or lower on the basis of that currently prescribed. Where the agreement or contract stipulates the use life for the intangible
assets, the amortization shall be conducted in accordance with the use life as stipulated in the agreement or contract.

The specific dimensions for amortization of intangible assets of enterprises shall be carried out by reference to the provisions in
Item 1 of Article 2 of the present Circular.

4.

With regard to the shortening of depreciation (amortization) period of fixed assets and intangible assets of enterprises, the taxation
authority shall employ the follow-up archival filing management method or require taxpayers to attach explanations in tax returns,
and no examination and approval shall be implemented; and shall carry out the dynamic administration of the ledgers on depreciation
(amortization) of fixed and intangible assets.

5.

The present Circular shall only apply to such three ecological urban areas as Tanggu, Hangu and Dagang and such seven functional areas
as Advanced Manufacturing Zone, Binhai Hi-Tech Industry Park, Binhai Chemical Zone, Airport-based Industrial Zone, Seaport Logistics
Zone, Binhai CBD and Binhai Coastal Leisure and Tourism Zone.

6.

The present Circular shall come into effect as of July 1, 2006. If the State reforms the tax system in the future, the related new
tax provisions shall be implemented.

Please carry out the present Circular accordingly.

The Ministry of Finance

The State Administration of Taxation

November 15, 2006



 
The Ministry of Finance, the State Administration of Taxation
2006-11-15

 







CIRCULAR OF THE MINISTRY OF SCIENCE AND TECHNOLOGY ON THE PRINTING AND DISTRIBUTION OF THE INTERIM PROVISIONS ON ADMINISTERING INTELLECTUAL PROPERTY RIGHT IN RELATION TO INTERNATIONAL COOPERATION PROJECTS IN SCIENCE AND TECHNOLOGY

Circular of the Ministry of Science and Technology on the Printing and Distribution of the Interim Provisions on Administering Intellectual
Property Right in Relation to International Cooperation Projects in Science and Technology

Guo Ke Fa Wai Zi [2006] No. 479

The departments (commissions or bureaus) of each province, autonomous region, municipality directly under the Central Government,
city specifically designated in the State plan, sub-provincial city, Science and Technology Bureau of Xinjiang Production and Construction
Corps, each ministry and commission under the State Council, and each science and technology administrative department of the institutions
directly under the Ministry of Science and Technology,

In order to improve the awareness of protecting intellectual property right and reinforcing the management of intellectual property
right in the international cooperation in science and technology is an important task to protect the interests of the state, enhance
the ability of independent innovation and safeguard the creative achievements of the Chinese party. For the purpose of delimiting
the principles and measures for the settlement and management of intellectual property right problems in relation to the international
cooperation projects in science and technology, properly solving the problems in relation to intellectual property right, safeguarding
the lawful rights and interests of all parties concerned to the cooperation, promoting the development of international cooperation
and exchange in science and technology and accelerating the construction of the national innovative system, the Ministry of Science
and Technology constituted the Interim Provisions on Administering Intellectual Property Right in Relation to International Cooperation
Projects in Science and Technology. They are hereby printed and distributed to you, please earnestly comply with and implement them.

Affix: Interim Provisions on Administering Intellectual Property Right in Relation to International Cooperation Projects in Science
and Technology

The Ministry of Science and Technology

November 29, 2006
Affix:
Interim Provisions on Administering Intellectual Property Right in Relation to International Cooperation Projects in Science and Technology

With a view to earnestly implementing the Decision of the CCCPC and the State Council on Implementing the Outline of the Scientific
and Technological Plan and Strengthening the Independent Innovation Capacity (Zhong Fa [2006] No. 4 ) and the National Guideline
for Medium and Long-term Plan for Science and Technology Development (2006-2020), further reinforcing the management and protection
of intellectual property right in the international cooperation in science and technology and safeguarding the rights and interests
in relation to the intellectual property right of all parties concerned to the cooperation, the present Provisions are constituted.

1.

To strengthen the management and protection of intellectual property right in the negotiations and talks for the protocols and agreements
on international cooperation projects in science and technology, and the acceptance and execution of applications for, evaluation,
check, supervision and inspection of international cooperation projects in science and technology.

The related entities and individuals, in charge of or participating in the negotiations, management and execution of international
science and technology cooperation protocols and agreements as well as international science and technology cooperation projects,
shall, according to the present Provisions, earnestly perform the work duties in relation to intellectual property right and do a
good job in managing and protecting intellectual property rights in the international cooperation projects in science and technology.

2.

The present Provisions shall apply to the following international cooperation projects in science and technology:

(1)

The international inter-governmental cooperation projects in science and technology under the international science and technology
cooperation protocols as entered into between the Ministry of Science and Technology, on behalf of the Chinese Government, and foreign
governments or international organizations;

(2)

The international cooperation projects in science and technology under the international science and technology cooperation protocols
as entered into between the related departments under the State Council and the departments of foreign governments, and those under
the international cooperation projects in science and technology as entered into between the provincial people’s governments and
the state governments of foreign countries; and

(3)

The international cooperation projects in science and technology initiated under the national scientific research plan and other international
cooperation projects in science and technology funded by the state treasury.

3.

The Ministry of Science and Technology shall take charge of managing and protecting intellectual property right in relation to the
international cooperation in science and technology. Other related departments under the State Council and all provincial people’s
governments shall take charge of managing and protecting intellectual property right in relation to the international cooperation
projects in science and technology organized and executed by the present departments or regions, respectively.

4.

All related departments of the State Council, all provincial people’s governments and the institutions in charge of executing and
managing the projects upon their authorization or entrustment (hereinafter referred to as the project management departments) shall
adopt effective measures to direct the enterprises, scientific research institutes, colleges and universities to do a good job in
protecting and managing intellectual property rights in relation to the international cooperation projects in science and technology,
reasonably arrange the intellectual property right relationship with other cooperators, properly solve the intellectual property
right problems occurring during the cooperation process, and accelerate the process to make scientific research achievements with
independent intellectual property right.

5.

An entity to undertake any international cooperation project in science and technology (hereinafter referred to as the “entity to
undertake the project”) shall set up and perfect the rules on managing intellectual property right, input more funds for the work
of intellectual property right, set up a special institution for the work of intellectual property right, equip with full-time personnel
or entrust an intermediary service institution of intellectual property right to be responsible for the management and protection
of intellectual property rights and enhance the ability and level to solve the matters of intellectual property right in relation
to the international cooperation projects in science and technology so as to effectively protect the legitimate rights and interests
of the Chinese party.

6.

To handle any intellectual property right problem occurring in the international science and technology cooperation, the Chinese party
shall abide by the principle of equality and reciprocity, observing the agreement and keeping commitments and shall comply with the
laws and regulations of China on intellectual property right, as well as the international conventions or bilateral treaties concerning
the protection of intellectual property right, to which China acceded or which were entered into between China and other cooperative
countries.

7.

The related entities in charge of the talks in relation to the international inter-governmental science and technology cooperation
agreements, international science and technology cooperation agreements between the provincial people’s governments and the state
governments of foreign countries, as well as the international cooperation projects in science and technology shall, in accordance
with the specific information about the fields and projects to conduct international science and technology cooperation, advance
the principle and specific plan on the talks about the intellectual property right by themselves or entrusting an intermediary institution
of intellectual property right or experts to do so, and take such principle and specific plan as a basis for the talks and for the
determination of intellectual property right problems in relation to the international science and technology cooperation.

8.

When entering into an international inter-governmental science and technology agreement, international science and technology cooperation
treaty between a related department under the State Council and a department of a foreign country or between a provincial people’s
government and a foreign state, the Chinese party shall arrange in advance the intellectual property right problems in relation to
the international science and technology cooperation, shall negotiate with the foreign cooperator and stipulate an intellectual property
right clause or conclude a separate intellectual property right treaty, which shall definite the basic principles for the ownership
and utilization of intellectual property rights in relation to the research achievements, so as to guarantee that our country can
effectively grasp and reasonably share the cooperative research achievements as well as the rights and interests of the relevant
intellectual property rights.

9.

In respect to an international cooperation project in science and technology whereby the Chinese party is asked to obtain the independent
intellectual property rights or to satisfy the technological indicators, the entity applying for the international science and technology
cooperation shall, in the project proposal, explicitly specify the specific aim of intellectual property right, details of the cooperation
with the foreign party, as well as the plan on sharing and utilizing the intellectual property right, which shall include the type,
quantity and stage of the intellectual property right to be obtained through research and development, and the basis for searching
and analyzing the intellectual property right.

10.

A project management department shall take the situation about the establishment of rules on managing intellectual property right,
set-up of working institution of intellectual property right, fit-out of funds for the work of intellectual property right, etc.
as one of the important indicators for selecting and determining any international cooperation project in science and technology
and entity to undertake the project, and shall, in the task document or project contract as entered into between it and the undertaking
entity, explicitly stipulate such items as the specific aims of intellectual property right in relation to the project, protection
form, ownership and sharing of rights to be enjoyed by the Chinese party and the foreign cooperator, the management duties of the
entity to undertake the project and so on.

11.

When a project cooperation agreement is concluded between the entity to undertake the project and the foreign cooperator, they shall
constitute a specific clause on the intellectual property right or both parties shall agree separately on the intellectual property
right so as to definite the ownership of the intellectual property rights in relation to or arising during the cooperation, distribution
of the related rights and interests, liabilities for breach of contract, settlement of disputes, etc., and shall report it to the
project management department for archival filling through the original project application channel.

In case any foreign export is hired by way of wage payments during the course of execution of the project, it shall be stipulated
that the intellectual property rights in relation to the intellectual labor achievements made by this export during his working in
China belong to the employing entity and that the person who makes the achievements has the right of identity and the right of honor.
If it is necessary for the entity undertaking the project to assign any employee to do research in the foreign cooperator, a confidentiality
agreement shall be signed with him to guarantee that the secrets of the state and the technical secrets of this entity will not be
released.

12.

During the course of executing the international cooperation project in science and technology, the entity undertaking the project
shall, in accordance with the present Provisions and the requirements of the task document or project contract it concludes, perform
the intellectual property right management duties, adopt necessary measures for managing intellectual property right, go through
the application, registration and other formalities for protecting intellectual property rights in a timely manner so as to protect
the various research achievements made in different stages in the execution of the project in a timely, precise and effective way.

13.

When organizing the check and acceptance of the project, the project management department shall, in accordance with the needs, employ
some intellectual property right experts or entrust an intermediary institution of intellectual property right to assess the management
and protection of the intellectual property rights in relation to the project.

14.

The ownership of the intellectual property right in any research achievement as achieved in an international science and technology
cooperation shall be determined in accordance with the stipulations in the cooperation agreement as entered into between the cooperating
parties. The right to apply for a patent and other rights in relation to the intellectual property right usually belong to cooperating
parties in common and may be handled by following the principles as follows:

(1)

If any cooperating party applies for a patent within its own country on behalf of all cooperating parties and allows others to use
the patent after the patent is obtained, the economic benefits that are derived therefrom shall be distributed in accordance with
the proportions as stipulated in the agreement.

(2)

When applying for a patent, the sequential order of the persons making the achievement shall be arranged in accordance with their
respective share of contribution. Where it is difficult to clarify their respective share of contribution, when a cooperating party
applies for a patent within its own country, it may grant the first position to the person of its party, who has made the achievement;
when applying for a patent in a third country, both parties shall decide through negotiation, or the grant the first position to
the person who has made achievement and who works for the party that assumes the patent application fee and maintenance fee.

(3)

If any of the cooperating parties waives the right to apply for a patent, the other party may apply independently, or the other parties
may jointly apply. After a patent is granted, the party that waives the right to apply for the patent may execute the patent right
without paying any loyalty.

(4)

In case either or any of the cooperating parties does not agree to apply for a patent with adequate reasons, the other party or other
parties should not apply for the patent.

(5)

In case either or any of the cooperating parties transfers the jointly owned right to apply for patent or the jointly owned patent,
it shall inform the other cooperating party or parties, and the other cooperating party or parties has or have the priority to acquire
it.

(6)

In case any of the cooperating parties signs a patent licensing contract with a third party, it shall obtain the consent of the other
parties in advance and shall determine the loyalties jointly with the other cooperative parties,. All cooperating parties shall,
in accordance with their agreement, rationally share the economic benefits derived therefrom.

(7)

When determining their respective proportion of share of the patent loyalties, the human resources, funds, apparatus, equipment and
information materials that are provided by each cooperating party shall be taken into consideration.

15.

As regards any research achievement as made in an international cooperation project in science and technology and the intellectual
property right formed therefrom, the part belonging to the Chinese party shall be granted to the entity undertaking the project according
to the Several Provisions on Administering Research Achievements and Intellectual Property Rights Formed in Projects under the State
Scientific Research Plan (Guo Ban Fa [2002] No. 30), unless it involves in the state security, state interests or significant social
public benefit or unless it is otherwise stipulated in the task document, project contract or cooperation agreement. The state has
the right to gratuitously use, exploit, efficiently utilize the intellectual property rights of research achievements and obtain
gains therefrom under a special circumstance.

An entity undertaking a project may independently decide to execute, permit others to execute, transfer the research achievement or
intellectual property, ascertain a price for it and convert the price into shares, and obtain corresponding gains. However, where
it is necessary to transfer abroad the research achievements or intellectual property, an application shall be filed to the project
management department through the original project application channel to obtain its consent.

16.

An entity undertaking an international cooperation project in science and technology may apply for paying the expenses for the affairs
in relation to intellectual property right including the fees which the Chinese party needs to pay for the patent application and
other affairs in relation to intellectual property right during the course of project research and development with the project fund
budget.

17.

After the entity undertaking a project obtains the intellectual property rights in the research achievements as made in an international
cooperation project in science and technology, it shall, within 1 month as of its receipt of the patent certificate, registration
certificate of new species of plant, software registration certificate, trademark registration certificate and other definite right
certification documents, submit a written report of the intellectual property rights it obtains to the project management department.

18.

As regards any intellectual property right dispute occurring during the execution of an international cooperation project in science
and technology, the entity undertaking a project shall, within 1 month as of the settlement of the dispute, submit a written report
of the relevant information to the project management department.

19.

A project management department shall take charge of supervising and inspecting the entities undertaking international cooperation
projects in science and technology in terms of management and protection of intellectual property rights.

Where the entity undertaking the project disobeys the present Provisions, the project management department shall, in accordance with
the statutory power and by considering different circumstances, order it to make corrections, give it a warning, criticize it by
circulating a notice, terminate the project contract, ask for repayment of the fund allocated, or refuse to accept its applications
for undertaking international cooperation projects in science and technology within a certain time limit. In case it goes against
any discipline, it may suggest the department concerned to give it a disciplinary sanction. Where any crime is constituted, it shall
transfer it to the judicial organ for criminal liabilities.

20.

The related departments under the State Council and the people’s governments of each province shall constitute some necessary detailed
implementation rules or specific management measures according to the present Provisions.

21.

With regard to any project that is excluded out of the international cooperation projects in science and technology or projects under
the national science and research plan, where it is necessary to carry out international science and technology cooperation and exchange,
the management and protection of intellectual property rights therein shall be reinforced in accordance with the present Provisions.

22.

The present Provisions shall go into effect as of the promulgation date.



 
The Ministry of Science and Technology
2006-11-29

 







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...