Facebook
Home German Laws Page 32

German Laws

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

 






ANNOUNCEMENT OF THE GENERAL ADMINISTRATION OF QUALITY SUPERVISION, INSPECTION AND QUARANTINE ON SUSPENDING THE REGISTRATION QUALIFICATIONS AS OVERSEAS WASTE MATERIALS SUPPLIERS OF 3 ENTERPRISES FROM JAPAN AND USA






Announcement of the General Administration of Quality Supervision, Inspection and Quarantine on Suspending the Registration Qualifications
as Overseas Waste Materials Suppliers of 3 Enterprises from Japan and USA

[2006] No.181

Recently, in the on-the-spot inspections of the follow-up supervision and administration implemented on the overseas imported waste
materials suppliers of Japan and USA, the General Administration of Quality Supervision, Inspection and Quarantine found that the
registration materials of 3 enterprises fall short of the actual status, and they need to improve their conditions for the registration
qualifications through rectifications. In order to protect the environment of China, prevent the poisonous and deleterious waste
from transferring from abroad to China, maintain the trading order of imported waste materials, in accordance with the provisions
of Article 53 of the Implementing Regulations for the Law of the People’s Republic of China on Inspection of Import and Export Commodity
and Announcement No.48, 2004 of the General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic
of China, an announcement is hereby made as follows:

I.

As of the date of promulgation of the present Announcement, the registration qualifications as overseas imported waste materials suppliers
of the following enterprises shall be cancelled.



Name of Enterprise Country Regis

￿￿

￿￿

Name of Enterprise

Country

Registration Number

1

NITTO CORPORATION (OVERSEAS)

Japan

A392042373

2

NATIONWIDE MEGAZINE RECYCLING,
INC.

USA

A840041961

3

YING WEI ENTERPRISES USA

USA

A840042971

￿￿￿￿II. Each local inspection and quarantine
institution shall hold the pass strictly, and refuse to accept the applications
for
inspection on the waste materials supplied by the enterprises listed above
whose registration qualifications have been cancelled.

General Administration of Quality
Supervision, Inspection and Quarantine

December 8, 2006



ANNOUNCEMENT NO.93 OF THE MINISTRY OF COMMERCE ON THE FINAL AWARD OF WEAR RESISTANT OVERLAY

Announcement No.93 of the Ministry of Commerce on the Final Award of Wear Resistant Overlay

[2006] No.93

In accordance with the provisions of the Anti-dumping Regulation of the People’s Republic of China, the Ministry of Commerce issued
an announcement on the June 13, 2005 and determined to conduct an anti-dumping investigation on imported wear resistant overlay originated
from USA and EU.

The Ministry of Commerce has investigated the dumping and the margin of dumping, the injury and the injury degree and the causality
between the dumping and the injury. According to the investigation result and provisions of Article 24 of the Anti-dumping Regulation
of the People’s Republic of China, the Ministry of Commerce made an announcement of the preliminary arbitration, in which it is confirmed
that the investigated product made dumping, the Chinese industry was materially injured, and there is causality between the dumping
and the material injury.

After making a preliminary arbitration, the Ministry of Commerce continued the investigation on the dumping and the margin of dumping,
the injury and the injury degree and the causality between the dumping and the injury. Now the investigation is ended. In light of
the investigation result and in accordance with the provisions of Article 25 of the Anti-dumping Regulation of the People’s Republic
of China, the Ministry of Commerce made the final arbitration (see Appendix). The related issues are publicized as follows:

1.

Final arbitration

After investigation, the Ministry of Commerce finally arbitrates that the imported wear resistant overlay originated from USA and
EU made dumping, the Chinese industry was injured actually, and there is causality between the dumping and the material injury.

2.

Levying anti-dumping duty

In accordance with the related provisions of the Anti-dumping Regulation of the People’s Republic of China, the Customs Tariff Commission
of the State Council decided to levy anti-dumping duty on imported wear resistant overlay originated from USA and EU as from December
13, 2006.

The investigated product is listed under Tariff No. 48043900 in the Customs Tariff of Import and Export of the People’s Republic of
China.

The descriptions of the investigated product are as follows:

Product name: wear resistant overlay

English name: wear resistant overlay

Product description: wear resistant overlay is a roll or piece of base paper mixed with resistance material (Al2O3) which becomes
high luster and translucent or semitransparent after being immerged in latex.

Main usage: mainly used to strengthen the surface layer of such decorated boards as wool floorboard, board fireproofing and so on.

The anti-dumping duty rates levied on the related companies are listed as follows:

American Companies:

MW Custom Paper LLC: 4.1%

All others: 42.8%;

EU Companies:

Papierfabrik Schoeller & Hoesch GmbH & Co. KG: 10.0%

All Others: 42.8%.

3.

Levy measures for anti-dumping duty

Importers, as they import wear resistant overlay originated from USA and EU, shall pay corresponding anti-dumping duties to customs
of the People’s Republic of China as of December 13,2006. Anti-dumping duty shall, on the basis of dutiable value examined by the
customs, be computed and levied ad valorem, and the calculating formula is: anti-dumping duty amount￿￿customs dutiable value ￿￿anti-dumping
duty rate. The value-added tax of import link shall be calculated and levied on the basis of taking dutiable value examined by customs
plus tariff plus anti-dumping duty as the assessable price.

4.

Retroactive levy of anti-dumping duty

Where a sum of deposit is provided to the customs of the People’s Republic of China by related importers in accordance with the Announcement
No.45, 2006 of the Ministry of Commerce during the period from June 16, 2006 to the date of implementation of Announcement No.89,
2006 of the Ministry of Commerce, it shall be handled according to Announcement No.89, 2006 of the Ministry of Commerce. Where a
sum of deposit is provided to the customs of the People’s Republic of China by related importers in accordance with the preliminary
arbitration and the adjusted tariff number during the period from the date of implementation of Announcement No.89, 2006 of the Ministry
of Commerce to the date of implementation of this Announcement, it shall be levied as per the commodity scope and the anti-dumping
duty as determined in the final arbitration and be transformed as the anti-dumping duty, and value-added taxes of import link shall
be levied as per the corresponding value-added tax rate. Where the deposit provided by related importers during this period exceeds
the anti-dumping duty and the corresponding value-added taxes of import link, the exceeding part shall be refunded by the customs;
the short shall be not levied.

No anti-dumping duty shall be imposed retroactively on ware resistant overlay originated from USA and EU imported before the publication
date of the Decision of Implementing a Temporary Anti-dumping Measures

5.

Levy period of anti-dumping duty

The period for levying anti-dumping duties on ware resistant overlay originated from USA and EU shall be 5 years as from December
13, 2006.

6.

Re-examination of new importers

In accordance with provisions of Article 47 of the Anti-dumping Regulation of the People’s Republic of China, any qualified new importer
of the aforementioned countries that did not export investigated products to the People’s Republic of China during the investigating
period, shall apply for re-examination of new importers to the Ministry of Commerce in written form.

7.

Re-examination during the levy period

In accordance with provisions of Article 49 of Anti-dumping Regulation of the People’s Republic of China, any interested party shall
apply for re-examination to the Ministry of Commerce in written during the levy period of anti-dumping duty.

8.

Administrative reconsideration and administrative lawsuit.

If any interested party refuses to accept the final arbitration and the decision of levying anti-dumping duty, it can apply for administrative
reconsideration in accordance with law or lodge an administrative lawsuit to People’s court according to provisions of Article 53
of Anti-dumping Regulation of the People’s Republic of China. .

9.

This Announcement shall come into force as from December 13, 2006.

Appendix: Final Arbitration of the Ministry of Commerce concerning Anti-dumping Investigation on Wear Resistant Overlay Products Originated
from USA and EU

The Ministry of Commerce of the People’s Republic of China (seal)

December 12, 2006

 
The Ministry of Commerce
2006-12-12

 



ANNOUNCEMENT NO.108, 2006 OF THE MINISTRY OF COMMERCE AND THE GENERAL ADMINISTRATION OF CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA ON EMPLOYING THE NEW VERSIONS OF IMPORT AND EXPORT LICENSE IN 2007

Announcement No.108, 2006 of the Ministry of Commerce and the General Administration of Customs of the People’s Republic of China
on Employing the new versions of import and export license in 2007

No.108

In accordance with related regulations on import and export licenses issued by Ministry of Commerce, new versions of import and export
license shall be employed in 2007. Matters of concern are listed as follows:

I.

Difference between the two versions

1.

Import License

The color of the first page of the new Import License shall be changed into rubine. The format, content, number of pages and the color
of the third page remain the same.

2.

Export License

The color of the first page of the new Export License shall be changed into warm red. The format, content, number of pages and the
color of the third page remain the same.

II.

Time of commence

As from January 1, 2007, all the license issuance institutions shall start using the 2007 version of Import License and Export License.
The 2003 version of Export License issued in 2006 remains valid before February 28, 2007, the 2003 version of Import License issued
in 2006 remains valid before March 31, 2007.

Appendix:

1.

Fist page of Import License (Sample) of PRC

2.

Fist page of Export License (Sample) of PRC

The Ministry of Commerce

The General Administration of Customs

December 22, 2006



 
The Ministry of Commerce, the General Administration of Customs
2006-12-22

 






DECISION OF THE STANDING COMMITTEE OF THE NPC OF THE PRC ON ACCEDING TO THE WIPO COPYRIGHT TREATY

Decision of the Standing Committee of the NPC of the PRC on Acceding to the WIPO Copyright Treaty

December 29, 2006

(Adopted at the 25th meeting of the Standing Committee of the 10th NPC of the PRC on December 29, 2006)

It is decided at the 25th meeting of the Standing Committee of the 10th NPC to accede to the WIPO Copyright Treaty, which was adopted
at the diplomatic conference on copyrights and neighboring rights in Geneva, Switzerland on December 20, 1996. And a declaration
is simultaneously made that the WIPO Copyright Treaty does not apply to Hong Kong SAR and Macao SAR of the PRC before the government
of the PRC issues a separate notice.



 
The Standing Committee of the NPC of the PRC
2006-12-29

 






SUPPLEMENTARY PROVISIONS NO. 2 TO THE PROVISIONS ON FOREIGN INVESTMENT IN THE CIVIL AVIATION INDUSTRY

Order of the General Administration of Civil Aviation of China, the Ministry of Commerce and the National Commission of Development
and Reform

No. 174

Supplementary Provisions No. 2 to the Provisions on Foreign Investment in the Civil Aviation Industry has been deliberated and adopted
at the executive meeting of the Civil Aviation Administration of China on November 30, 2006 and has been approved by the Ministry
of Commerce and the National Commission of Development and Reform upon examination. It is hereby promulgated and shall enter into
force as of January 4, 2007.
Yang Yuanyuan, Director-General of the Civil Aviation Administration of China

Bo Xilai, Minister of the Ministry of Commerce

Ma Kai, Director-General of the National Development and Reform Commission

January 4, 2007

Supplementary Provisions No. 2 to the Provisions on Foreign Investment in the Civil Aviation Industry

Subject to Supplementary Agreement No.2 on Mainland and Hong Kong Closer Economic Partnership Arrangement, Supplementary Agreement
No. 3 on Mainland/Hong Kong Closer Economic Partnership Arrangement, Supplementary Agreement No.2 on Mainland and Macao Closer Economic
Partnership Arrangement and Supplementary Agreement No 3 to Macao/Mainland Closer Economic Partnership Arrangement as approved by
the State Council, the Supplementary Provisions to the Provisions on Foreign Investment in the Civil Aviation Industry (Decree No.
110 of the Civil Aviation Administration of China, Ministry of Foreign Trade and Economic Cooperation and State Planning Commission)
are hereby given as follows:

1.

A Hong Kong or Macao aviation sales agent meeting the definition of Hong Kong or Macao service provider is permitted to establish
an equity joint, contractual, or solely-funded air transport sales agency in the Mainland. It shall satisfy the same requirement
of registered capital as that for Mainland enterprises.

2.

The General Administration of Civil Aviation of China, Ministry of Commerce of the People’s Republic of China and the National Commission
of Development and Reform are responsible for the interpretation of the present Supplementary Provisions according to their respective
functions.

3.

The present Supplementary Provisions shall enter into force as of January 4, 2007.



 
General Administration of Civil Aviation of China, Ministry of Commerce and the National Commission of Development
and Reform
2007-01-04

 






CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON THE POLICIES AND RELATED MANAGEMENT ISSUES CONCERNING THE PRE-TAX DEDUCTION OF PUBLIC WELFARE RELIEF DONATIONS

Circular of the Ministry of Finance and the State Administration of Taxation on the Policies and Related Management Issues concerning
the Pre-tax Deduction of Public Welfare Relief Donations

Cai Shui Fa [2007] No.6
January 18, 2007

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

For the purpose of further promoting the development of social pubic welfare undertakings, the related policies and related management
issues on the pre-tax deduction of public welfare relief donations are hereby announced as follows:

1.

As regards welfare social organizations or foundations which are established upon the approval of civil affairs administrative department
in accordance with the Regulations for the Administration of the Social Groups Registration (Order No. 250 of the State Council)
and the Regulations for the Administration of Foundations (Order No. 400 of the State Council), if the related provisions are met,
and upon confirmation of the public finance and taxation authorities, it may accept the public welfare relief donations granted by
the taxpayers. The pre-tax deduction of the said donations is permitted when calculating and paying the enterprise or individual
income taxes pursuant to current tax laws, regulation and related policies.

As regards any welfare social organization or foundation that is established upon approval of the civil affairs administrative department
under the State Council, the qualification for pre-tax deduction of donations shall be confirmed by the Ministry of Finance and the
State Administration of Taxation, as regards any welfare social organization or foundation that is established upon approval of the
civil affairs administrative department under the provincial people’s government, the qualification for pre-tax deduction of donations
shall be confirmed by the provincial finance and taxation authorities, and be submitted to the Ministry of Finance and the State
Administration of Taxation for archival purpose.

State departments for accepting public welfare relief donations mean the people’s governments at or above the county level and their
departments.

2.

A non-profitable public welfare social organization or foundation that applies for the qualification for pre-tax deduction of donations
shall satisfy the requirements as follows:

(1)

It is devoted to provide services to the general public and does not focus on making profits;

(2)

It has the qualification of a public welfare legal person, and its property management and use is in line with all the laws and administrative
regulations;

(3)

The public welfare legal person possesses the total assets and increments;

(4)

Its earnings and operational surplus are mostly used for the activities conforming to the purposes of its creation;

(5)

The remained estate can not be attributed to any individual or profit-making group when it is terminated or dissolved;

(6)

It can not develop any business irrelevant to the public welfare purpose;

(7)

It has sound financial and accounting systems;

(8)

It has the organizational body that does not intend for making private profits;

(9)

Any donator may be prohibited to participate in the distributions of the assets of this organization by any means, nor may it/he has
ownership to such assets.

3.

A non-profitable public welfare social organization or foundation that applies for qualification for pre-tax deduction of donations
shall file the materials as follows:

(1)

an report concerning the application for the pre-tax deduction of donations;

(2)

the registration approval document as issued by the civil affairs administrative department under the State Council or the provincial
people’s government;

(3)

its articles of association, and the circumstances on capital sources and use for the recent years as well.

4.

Those non-profitable public welfare social organizations and foundations that have the qualification for pre-tax deduction of donations,
and the people’s governments at or above the county level and their departments must use the public welfare relief donations that
it has accepted for the scope of education, civil affairs, and other public welfare business, or for the districts that suffer from
natural disasters or the poverty-stricken districts as prescribed by tax laws or regulations.

5.

Those non-profitable public welfare social organizations and foundations that have the qualification for pre-tax deduction of donations,
and the people’s governments at or above the county level and their departments shall use the vouchers of public welfare relief donations
as uniformly printed under supervision of the central or provincial public finance department respectively subject to the financial
affiliation when accepting donations or transferring donations, and attach their respective special financial seals; and shall issue
receipts for any individual that requests for it for his donations.

6.

A taxpayer shall offer the following materials in addition when declaring the pre-tax deduction of public welfare relief donations:

(1)

certification materials on the qualification for pre-tax deduction of donations of the non-profitable public welfare social organization
or foundation that has accepted or transferred donations;

(2)

the vouchers or receipts of public welfare relief donations as issued by the non-profitable public welfare social organization or
foundation that has the qualification for pre-tax deduction of donations and the people’s governments at or above the county level
or any of it departments; and

(3)

other materials as required to be submitted by the competent taxation authority.

7.

The competent taxation authority shall manage the check of the use of public welfare relief donations by non-profitable public welfare
social organizations or foundations, and if any violation of the articles of association by a non-profitable public welfare social
organization or foundation is found or any non-profitable public welfare social organization or foundation uses any donations for
any purpose other than those prescribed in its own articles of association, the income taxes on the earnings from donations and other
kinds of earnings shall be levied, and the qualification for pre-tax deduction of donations it has confirmed shall be cancelled.

8.

This Circular shall come into force as of the date of issuance.



 
The Ministry of Finance, the State Administration of Taxation
2007-01-18

 






SEVERAL DIRECTING OPINIONS OF THE MINISTRY OF FINANCE AND THE STATE DEVELOPMENT AND REFORM COMMISSION ON EXPERIMENTING THE USE OF INDUSTRIAL TECHNOLOGY RESEARCH AND DEVELOPMENT FUNDS AS VENTURE CAPITAL

Several Directing Opinions of the Ministry of Finance and the State Development and Reform Commission on Experimenting the Use of
Industrial Technology Research and Development Funds as Venture Capital

Cai Jian [2007] No. 8

The public finance departments (bureaus) as well as the development and reform commissions of each province, autonomous region, municipality
directly under the Central Government, and city specifically designated in the state plan:

In order to implement the scientific development view, construct an innovative country, support the development of commonweal industries
and national strategic industries, as well as promote the rapid and healthy development of the venture capital undertaking in China,
the Ministry of Finance and the State Development and Reform Commission, according to the Law of the People’s Republic of China Concerning
the Promotion of the Transformation of Scientific and Technological Achievements, Some Opinions of the Ministry of Finance and the
Ministry of Science and Technology Forwarded by the General Office of the State Council on Improving and Reinforcing the Administration
of Scientific and Technological Funds Allotted by the Treasury of the Central Government (Guo Ban Fa [2006] No. 56), other related
laws and regulations, as well as the tenets of other documents,, have decided to use partial funds for research and development of
national industrial technologies as venture capital. The following opinions concerning related issues are hereby given:

I.

Principles for Venture Capital

(I)

Market-oriented operations. We shall face the market and give full play to the directing function of government funds so as to fully
drive public capitals to invest in hi-tech industries; the venture capital project shall be conducted on the basis of market, that
is, to independently operate the business and solely assume responsibility for its profits or losses; the government departments
may not interfere in the project undertaker’s operation, while the management institutions shall, upon authorization by the government,
exercise investors’ rights and bear corresponding liabilities on the basis of the investment amount.

(II)

Encouraging innovations. In experimenting the venture capital among industrial technology research and development funds, they shall
be mainly invested into commonweal or public projects of scientific and technological research and development as well as achievement
transformation thereof at the seed or start-up stage in hi-tech industries. Such projects, which are characterized by original innovations,
integrative innovations or digestible and absorbable re-innovations, differs from general commercial risk capital projects and do
not aim at the maximization of benefits are.

(III)

Focusing on guidance. The purposes of experimenting venture capital among industrial technology research and development funds are
to direct public capital to invest in hi-tech industries, to settle the short of funds in hi-tech industries at the seed or start-up
stage, and to mobilize the project undertakers’ initiative, and apportion risks on the condition that the venture capital may not
occupy majority shares or exercise the dominant management.

(IV)

Normative Management. A normative consecutive project selection mechanism shall be established. We shall, through various methods,
reinforce the capability cultivation of management institutions, to strength the responsibilities thereof, and establish an effective
risk prevention system and incentive mechanism. The funds shall, in accordance with public finance principles, be withdrawn from
the venture capital in time when it becomes mature, and the recovered funds shall be turned over to the treasury of the Central Government.

II.

Entrusted Management Institutions for Venture Capital

(I)

Determination of Entrusted Management Institutions for Venture Capital.

A professional management institution shall be entrusted to manage venture capital, and the Ministry of Finance shall, by way of invitation
to bid, determine the professional management institutions jointly with the State Development and Reform Commission, and enter into
entrustment agreements with such professional management institutions.

(II)

Qualifications of entrusted management institutions:

1.

to possess the status of an enterprise legal person;

2.

to possess registered capital of no less than 100 million Yuan;

3.

to have been engaged in venture capital management for more than 5 years;

4.

to have at least 5 practitioners with 3-year or more work experience in venture capital business;

5.

to have sound venture capital management system; and

6.

to have successful experiences in operating venture capital projects.

(III)

Duties of an entrusted management institution:

1.

recommending investment projects as required by these Opinions and other related provisions;

2.

exercising investor’s rights to the invested enterprise upon entrustment within the limit of the investment amount, including appointing
directors and supervisors thereto, and lawfully exercising rights via the shareholders’ meeting, the board of directors, and the
board of supervisors;

3.

providing the invested enterprise with various value-added services by making full use of its own resources and its experiences in
the venture capital business, assisting the enterprise to establish lawful management system, and promoting the development of the
enterprise;

4.

regularly reporting the project progress, stock capital changes and other major issues of the invested enterprise to the Ministry
of Finance and the State Development and Reform Commission; and

5.

organizing the withdrawal of venture capital as required, and turning over the recovered funds to the treasury of the Central Government
in a timely manner.

III.

Selection of Venture Capital Projects

(I)

A venture capital project shall satisfy the conditions as follows:

1.

It possesses the nature of technology for commonweal and public interests, and may obviously enhance the independent industrial innovation
capacity and the enterprise’s core competitive strength;

2.

It possesses independent intellectual properties with high technical contents; and

3.

In case it is weak recently to raise funds, it has promising market prospects and a strong anticipated profitability.

(II)

Venture capital project may be selected and determined in the two ways as follows:

1.

The State Development and Reform Commission may, according to the national economic, scientific and technological development strategies
and planning, etc, promulgate the Guidance for Applying for Venture Capital Projects jointly with the Ministry of Finance. The development
and reform commission at each locality may, in accordance with these Opinions, organize related projects and recommend them to the
State Development and Reform Commission and the Ministry of Finance jointly with the public finance department (bureau), while the
State Development and Reform Commission joint with the Ministry of Finance shall, after organizing experts to make an appraisal,
decide whether to approve the investment projects and investment amounts on the basis of the conclusion of an investment agreement
between each entrusted management institution and its invested entity through negotiations.

2.

The entrusted management institution may recommend investment projects. The entrusted management institution may, within the key venture
capital-supported areas determined by the State Development and Reform Commission and the Ministry of Finance, evaluate and select
a project it has invested in accordance with the principles and requirements as provided for in these Opinions, and report it to
the State Development and Reform Commission and the Ministry of Finance. The State Development and Reform Commission shall, on the
basis of the expert appraisal, decide whether to approve the investment projects and investment amounts jointly with the Ministry
of Finance.

(III)

Materials to be reported for applying for a venture capital project:

1.

the project feasibility study report and the preliminary argument opinions of experts;

2.

accounting reports and credit standing materials of the project declarer in the latest two years which have been audited by intermediary
institutions;

3.

the current stock right structure of the project declarer;

4.

the project declarer’s resolution on consenting to the shares held in the form of fiscal investments; and

5.

other related materials.

IV.

Fund Allotment

The Ministry of Finance shall, according to relevant provisions, allot funds to the special fiduciary accounts of the entrusted management
institutions on the basis of the directory and amounts of the approved investment projects, as well as the investment agreements
entered into between the entrusted management institutions and their respective invested entities, and the entrusted management institutions
shall then allot the said funds to their respective invested entities.

The special fiduciary account of an entrusted management institution shall be opened in an agency bank designated by the Ministry
of Finance. And the Ministry of Finance, the entrusted management institution and the bank of deposit shall enter into an agreement
to stipulate that the trusteeship institution may notice the bank to allot the funds only after it has received the allotment notice
from the Ministry of Finance.

In case the allotment cannot be conducted continuously by virtue of any particular reason, the entrusted management institution shall
recover and turn over the investment funds to the treasury of the Central Government in a timely manner.

V.

Withdrawal of Venture Capital

The withdrawal of venture capital in a project may be realized through merger or acquisition of enterprises, buy-back of stock rights
and listing on the stock market, etc.

An entrusted management institution shall be responsible for observing the opportunities for the withdrawal of an investment project,
and shall conduct the withdrawal when the opportunity comes. It shall also submit the withdrawal opportunity, the withdrawal method,
etc. to the Ministry of Finance and the State Development and Reform Commission in a timely manner.

The withdrawn funds (containing the recovered interests and dividends) shall be directly recovered to the special fiduciary account,
and be turned in to the treasury of the Central Government by the entrusted management institution in a timely manner.

VI.

Entrustment Expenses

For entrusting a management institution to manage venture capital, certain fees shall be paid. The fees consists of two parts: one
part is for daily management expenditures, which shall not exceed 3% of the investment balance; and the other part is for rewarding
performance, which shall not exceed a certain proportion of the total investment proceeds (net proceeds after offsetting the losses).
The specific arrangements on the entrustment expenses shall be stipulated in the entrustment agreement.

VII.

Assessment and Supervision

(I)

An entrusted management institution shall, according to these Opinions and the issues agreed upon in the entrustment agreement, carefully
perform corresponding management duties. And it shall formulate corresponding venture capital management systems and work flows and
risk prevention systems, and shall establish corresponding work departments.

(II)

The entrusted management institutions shall be subject to the assessment and supervision of the Ministry of Finance and the State
Development and Reform Commission, who have the right to check the entrusted management institutions at irregular intervals and to
monitor the funds in special fiduciary accounts. Each entrusted management institution shall report its accounting reports and venture
capital management reports to the Ministry of Finance and the State Development and Reform Commission at regular intervals at least
once every year. The reports shall mainly contain:

1.

the entrusted management institution’s assets, liabilities and owners’ equities;

2.

the entrusted management institution’s operation;

3.

the scale and completion of the investment contribution of venture capital;

4.

the invested enterprise’s operation;

5.

the venture capital’s withdrawal and proceeds; and

6.

other issues as stipulated in the entrustment agreement.

(III)

In case an entrusted management institution falls under any of the following circumstances, the Ministry of Finance and the State
Development and Reform Commission are enpost_titled to cancel or replace it, and may resort to legal means when necessary:

1.

It dose not satisfy the qualifications as provided for in these Opinions any longer;

2.

It has grossly violated any law or rule;

3.

It is revoked, dissolved or declared as bankrupt according to law; or

4.

Other circumstances stipulated in the entrustment agreement.

As regards the experiment of venture capital among industrial technology research and development funds, it is a new and helpful exploration
of the way of supporting hi-tech industries with fiscal funds. However, venture capital is characterized by long investment period
and high risk, so importance shall be attached to the prevention of risks so as to develop the experiment in an orderly manner in
accordance with law. We shall pay attention to giving full play to the functions of the market mechanisms and the seed functions
of fiscal funds so as to promote the development of the venture capital in an active and steady way.

The Ministry of Finance

The State Development and Reform Commission

January 30, 2007



 
The Ministry of Finance, The State Development and Reform Commission
2007-01-30

 






CIRCULAR OF THE MINISTRY OF COMMERCE ON ENTRUSTING DALIAN ECONOMIC-TECHNOLOGICAL AREA TO EXAMINE, APPROVE AND ADMINISTER THE RELEVANT WORK ON FOREIGN-INVESTED ENTERPRISES IN SOME SERVICE TRADE SECTORS

Circular of the Ministry of Commerce on Entrusting Dalian Economic-Technological Area to Examine, Approve and Administer the Relevant
Work on Foreign-invested Enterprises in Some Service Trade Sectors

Shang Zi Han [2007] No. 12

Dalian Municipal People’s Government and Dalian Economic-Technological Area,

Pursuant to Some Opinions on Further Promoting the Development Level of National Economic and Technical Development Zones (Guo Ban
Fa [2005] No. 15) as forwarded by the General Office of the State Council to the Ministry of Commerce, the Ministry of Land and Resources
and the Ministry of Construction as well as the provisions of the Ministry of Commerce on the authorized examination, approval and
administration of foreign-funded enterprises, the Ministry of Commerce has finished the archival filing, examination and approval
of the management systems of all the national economic and technological development zones and the connected network for examination
and approval of foreign capital. The related matters are hereby notified as follows:

1.

Upon research, we hereby authorize the Management Committee of Dalian Economic-Technological Area to be responsible for examining,
approving and administrating the foreign-funded enterprises in related service trade sectors set up inside its zone for the purpose
of encouraging and supporting the national economic and technological development zones to vigorously develop the high value-added
service industries.

2.

The Management Committee of Dalian Economic-Technological Area shall, in strict accordance with the laws and regulations on foreign
investments as well as the related provisions on foreign-funded enterprises of non-vessel shipping, construction, printing, construction
engineering design, road transport, commerce and international freight forwarding (see appendix), carefully examine and approve the
related foreign-funded enterprises set up within its zone, and report the related problems found in the work to the Ministry of Commerce
in a timely manner. The Ministry of Commerce shall implement the inspection of the aforesaid examination, approval and administration,
and cancel the authorization to a national economic and technological development zone which commits illegal examination and approval
during the course of authorization.

3.

The Management Committee of Dalian Economic-Technological Area shall conduct a good job in examination and approval, archival filing
and statistical work in strict accordance with the requirements of the Ministry of Commerce for networking and online joint annual
inspection and by taking advantage of the networking certification system for foreign-funded enterprises. The related statistical
data shall be in line with the requirements so that the Ministry of Commerce can keep informed of the situation and strengthen supervision.

4.

Dalian Economic-Technological Area, the management system of which needs to be improved, has not set up an independent finance department
yet. Dalian Economic-Technological Area shall keep a close eye on and further resolve the problems in the management system, keep
a concise and efficient management system, and improve the level for examining, approving and administrating the foreign-funded enterprises.
Where any management system problem that may affect the work on examining, approving and administrating the foreign-funded enterprises
is found, this Ministry will withdraw the authorized power of examination, approval and administration immediately.

5.

This circular shall enter into force as of the promulgation date.

Ministry of Commerce

February 12, 2007
Appendix:
Related documents on entrusting the competent provincial departments of commerce to examine, approve and Administer foreign-funded
service trade Enterprises

1.

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Foreign-funded
Non-vessel Shipping Enterprises (Shang Zi Han [2005] No. 89)

2.

Circular of the Ministry of Commerce on Entrusting the Provincial Administrative Departments of Commerce to Examine, Approve and Administer
the foreign-funded Construction Enterprises (Shang Zi Han [2005] No. 90)

3.

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Printing Enterprises (Shang Zi Han [2005] No. 91)

4.

Circular of the Ministry of Commerce on Entrusting the Administrative Departments of Commerce at the Provincial Level to Examine and
Administer the Foreign-funded Designing Enterprises for Engineering Projects (Shang Zi Han [2005] No. 92)

5.

Circular of the Ministry of Commerce on Entrusting the Competent Provincial Departments of Commerce to Examine and Manage Some Foreign-funded
Road Transport Enterprises (Shang Zi Han [2005] No. 93)

6.

Circular of the Ministry of Commerce on Entrusting Local Departments to Check Foreign-funded Commercial Enterprises (Shang Zi Han
[2005] No. 94)

7.

Circular of the Ministry of Commerce about the related Issues on Entrusting National Economic and Technical Development Zones to Examine
and Approve foreign-funded Commercial Enterprises and International Freight Forwarding Enterprises (Shang Zi Han [2005] No. 102)

8.

Measures for the Administration of Foreign-funded International Freight Forwarding Enterprises (Decree No. 19, 2005 of the Ministry
of Commerce)



 
Ministry of Commerce
2007-02-12

 






CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON CONFIRMING FOREIGN-FUNDED CARGO TRANSPORT ENTERPRISES AS INVOICE ISSUING TAXPAYERS

Circular of the State Administration of Taxation on Confirming Foreign-funded Cargo Transport Enterprises as Invoice Issuing Taxpayers

Guo Shui Han[2007] No.223

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

It has been clarified in the Reply of the State Administration of Taxation on Exempting the City Maintenance and Construction tax
as well as Educational Surcharge from Foreign-funded Cargo Transport Enterprises (Guo Shui Han [2005] No.881) that the city maintenance
and construction tax as well as educational surcharge does not apply to foreign-funded cargo transport enterprises.

Whereas the tax control system on cargo transport invoices shall be promoted to be wholly used in cargo transport enterprises from
the present year on, it is determined after investigation to uniformly cognize cargo transport enterprises as invoice issuing taxpayers
as from January 1, 2007. And other items on tax levy shall be conducted in accordance with the related provisions in the Notice of
the State Administration of Taxation on Intensifying the Tax Collection Administration Concerning the Cargo Transport Industry (Guo
Shui Fa [2003] No. 121) and the Notice of the State Administration of Taxation about Several Tax Issues Concerning Cargo Transport
Industry (Guo Shui Fa [2004] No.88).

The State Administration of Taxation

February 15, 2007



 
The State Administration of Taxation
2007-02-15

 






1...313233...83Page 32 of 83

CONSTITUTION ACT, 1982 – page 22

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

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

Disclaimer: There is no confidential attorney-client relationship formed by using Laws.com website and information provided on this site is not legal advice. For legal advice, please contact your attorney. Attorneys listed on this website are not referred or endorsed by this website. By using Laws.com you agree to Laws.com Terms Of Use.
Facebook
© LAWS.COM NETWORK 2023-2024