Facebook
Home German Laws Page 59

German Laws

ACCOUNTING STANDARDS FOR ENTERPRISES NO. 28 – CHANGES OF ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES AND ERROR CORRECTION

Ministry of Finance

Accounting Standards for Enterprises No. 28 – Changes of Accounting Policies and Accounting Estimates and Error Correction

Cai Kuai [2006] No. 3

February 15, 2006

Chapter I General Provisions

Article 1

These Standards are formulated in accordance with the Accounting Standards for Enterprises – Basis Standards for the purpose of regulating
the application of enterprise accounting policies, the changes of accounting policies and accounting estimates, the recognition and
measurement of the error correction. in the prior periods, as well as the disclosure of relevant information. .

Article 2

The effects on income tax by the changes of accounting policies and the error correction in the prior periods shall be governed by
the Accounting Standards for Enterprises No. 18 – Income Tax.

Chapter II Accounting Policies

Article 3

With regard to identical or similar transactions or events, an enterprise shall adopt the same accounting policies, unless it is otherwise
prescribed by other accounting standards.

The term “accounting policies” refers to the specific principles, basis and accounting treatment methods adopted by an enterprise
for accounting recognition, measurement and reporting.

Article 4

The accounting policies adopted by an enterprise shall be consistent for each accounting period and the prior and subsequent accounting
periods, and shall not be changed randomly. However, if one of the following conditions is satisfied, accounting policy may be changed:

(1)

The requirement by any law, administrative regulation, or national uniform accounting system changes; or

(2)

More reliable and more relevant accounting information shall be provided through changing the accounting policy. .

Article 5

The following items shall not belong to the changes of accounting policies:

(1)

A new accounting policy is adopted for transactions or events occurred in the current period which are different essentially from
those occurred in the prior periods; and

(2)

A new accounting policy is adopted for transactions or events which occur for the first time or are unimportant.

Article 6

Where an enterprise changes an accounting policy according to the requirement of any law, administrative regulation or the national
uniform accounting system, it shall implement it pursuant to the relevant accounting provisions of the state.

If a change in accounting policy can provide more reliable and more relevant accounting information, the retrospective adjustment
method shall be adopted for handling. The amount of cumulative effect by the change in accounting policy shall be adjusted and presented
as the retained earnings at the beginning of the earliest prior period, and the beginning balance of other relevant items as well
as to other comparative data disclosed in the prior period presented shall be adjusted along with, unless the cumulative effect of
a change in accounting policy is not feasible essentially.

The retrospective adjustment method refers to a method whereby, for a change in accounting policy in respect of particular transactions
or events, the changed accounting policy is adopted as if it had been in use from the day when such transactions or events first
occurred, and the relevant items in the financial statements are adjusted accordingly.

The cumulative effect of a change in accounting policy refers to the difference between the adjusted beginning balance of retained
gain of the earliest prior period presented if the adjusted accounting policy had been applied retrospectively for all prior periods
and the present amount of the retained earnings.

Article 7

If it is impracticable to determine the effect of a change in accounting policy for the prior period presented, the new accounting
policy shall be applied from the beginning of the earliest period for which retrospective application is practicable.

If, at the beginning of the current period, it is impracticable to determine the cumulative effect of the change in accounting policy
for all prior periods, the prospective application method shall be adopted.

The term “prospective application method” refers to a method whereby for a change in accounting policy, the new accounting policy
is applied to the transactions or events occurring on the date of change and in subsequent periods; or refers to a method whereby,
for a change in accounting estimate, the effects of the change of the accounting estimate are recognized during the current period
of the change of accounting estimate and in future periods.

Chapter III Changes in Accounting Estimates

Article 8

An enterprise may need to revise its accounting estimates due to a change in the basis for estimates, or due to the obtainment of
new information, accumulation of more experiences as well as the subsequent development and changes. The basis for the changes in
accounting estimates shall be genuine and reliable.

A change in accounting estimate refers to an adjustment to the book value of an asset or liability or to the amount of expense of
an asset during a certain period, resulting from the changes in the current situation of the asset or liability and the expected
economic benefits and obligations.

Article 9

The prospective application method shall be adopted by an enterprise for treating the changes in accounting estimates.

If a change in accounting estimate affects only the current period of the change, the effect of the change shall be recognized in
the period of the change. If any change in an accounting estimate affects both the period of the current change and future periods,
the effects of the change shall be recognized in the period of the change and in future periods.

Article 10

Where it is difficult for an enterprise to determine a change as one in accounting policy or as one in an accounting estimate, it
shall treat it as a change in an accounting estimate.

Chapter IV Corrections of Prior Period Errors

Article 11

Prior period errors refer to the failure to use or misuse of the following two kinds of information and result in the omissions from
or mis-presentation in financial statements for the prior periods :

(1)

The reliable information that was available and could reasonably be expected to be obtained and taken into account when preparing
the financial statements for the prior periods;

(2)

The reliable information that was available when the financial reports of prior periods are authorized for issue;

Generally prior period errors include calculation mistakes, mistakes in applying accounting policies, oversights or misinterpretations
of facts, consequences of fraud, inventory overage, fixed asset overage, etc.

Article 12

An enterprise shall adopt the retrospective restatement method to correct any important errors of prior period, however, unless it
is impractical to recognize the amount of cumulative effects of the prior period error.

The term “retrospective restatement method” refers to a method whereby, when a prior period error is discovered, the relevant items
of the financial statements are corrected as if the prior period error had never occurred.

Article 13

If it is impracticable to recognize the effect of a prior period error, the enterprise may begin to adjust the beginning balance of
the retained earnings of the earliest prior period for which the retrospective restatement is practical, and in the meanwhile, adjust
the beginning balances of other relevant items in the financial statements, or may adopt the prospective application method.

Article 14

An enterprise shall, in the financial statements of the current period where it discovers any important prior period error, adjust
the comparative data of the prior period.

Chapter V Disclosure

Article 15

An enterprise shall, in its notes, disclose the following information related to the changes in accounting polices:

(1)

The character, contents and reasons for the changes of accounting policies;

(2)

The names of the affected items and the adjusted amounts in the financial statements for the current period and all the prior periods
presented; and

(3)

If it is unable to make retrospective adjustments, it shall state the facts, reasons, date of beginning of the application of the
new accounting policies as well as the information about the concrete application thereof.

Article 16

An enterprise shall, in its notes, disclose the following information related to the changes in accounting estimates:

(1)

The contents of and reasons for the changes in accounting estimates;

(2)

The effects amount in the current period and future periods by changes in accounting estimates; and

(3)

If it is unable to recognize the effect amount of a change in the accounting estimate, it shall disclose the facts and reasons.

Article 17

An enterprise shall, in its notes, disclose the following information related to the corrections in prior period errors:

(1)

The nature of the prior period errors;

(2)

The names of the affected items and the corrected amounts in the financial statements for all prior periods presented.

(3)

If it is unable to make a retrospective restatement, it shall state the facts, reasons, time point of beginning the correction of
the prior period error, as well as the information about the concrete correction.

Article 18

In the financial statements of subsequent periods, it is not required to repeatedly disclose any information about the changes of
accounting policies and corrections of prior period errors which have been disclosed in the notes of prior periods.



 
Ministry of Finance
2006-02-15

 






LETTER OF CHINA BANKING REGULATORY COMMISSION ON APPROVING THE BANCO NACIONAL ULTRAMARINO, S. A. TO SET UP SHANGHAI REPRESENTATIVE OFFICE

Letter of China Banking Regulatory Commission on Approving the Banco Nacional Ultramarino, S. A. to Set up Shanghai Representative
Office

Banco Nacional Ultramarino, S. A.,

The letter from chairman of the Executive Committee of your bank Mr. Herculano Jorge de Sousato this Commission on August 23, 2005
has been received.

Under the Measures for Administering Foreign-funded Financial Institutions’ Representative Offices in China (Decree No. 8 [2002] of
the People’s Bank of China, hereinafter referred to as the present Measures), you are hereby approved to establish a representative
office in Shanghai. Its Chinese name is “￿￿￿йɷ￿￿޹￿˾￿￿￿￿￿” and English name “Shanghai Representative Office of Banco
Nacional Ultramarino, S. A.”.

Under the related regulations of the present Measures, Kan Cheok Kuan is authorized to assume the position of the chief representative
of this Representative Office.

China Banking Regulatory Commission

February 16, 2006



 
China Banking Regulatory Commission
2006-02-16

 






OFFICIAL REPLY OF CHINA BANKING REGULATORY COMMISSION CONCERNING APPROVING THE ESTABLISHMENT OF NEW YORK BRANCH OF CHINA MERCHANTS BANK

Official Reply of China Banking Regulatory Commission concerning Approving the Establishment of New York Branch of China Merchants
Bank

China Merchants Bank,

The Request for Instructions on the Establishment of New York Branch of China Merchants Bank (Zhao Yin Fa [2005] No. 416) has been
received. Our reply is as follows:

1.

The establishment of New York Branch of your bank is approved.

2.

Please submit an application to the local financial regulatory authority according to the related financial regulations of the United
States of America, and report the progress to China Banking Regulatory Commission in time.

China Banking Regulatory Commission

February 22, 2006



 
China Banking Regulatory Commission
2006-02-22

 






NOTICE ON PRINTING AND DISTRIBUTING THE INTERIM MEASURES FOR THE INSPECTION OF EXPORTATION OF PRODUCTS OF FOREIGN-FUNDED ENTERPRISES OF THE PERMITTED CATEGORY WHOSE PRODUCTS ARE TO BE WHOLLY EXPORTED DIRECTLY

Ministry of Commerce, Ministry of Finance, General Administration of Customs, State Administration of Taxation

Notice on Printing and Distributing the Interim Measures for the Inspection of Exportation of Products of Foreign-funded Enterprises
of the Permitted Category Whose Products Are to Be Wholly Exported Directly

Shang Zi Fa [2006] No.1

To the competent departments of commerce, the public finance offices or bureaus, and the administrations of state taxation of all
the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning,
as well as Xinjiang Production and Construction Corp., Guangdong Branch of the General Administration of Customs, and all customs
offices directly under the General Administration of Customs, and the financial supervisor’s offices of the Ministry of Finance at
all the provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning,

For the purpose of implementing the Notice on Adjusting Some Preferential Policies concerning Import Taxes (No.146 [2002] of the Ministry
of Finance), the Ministry of Commerce, Ministry of Finance, General Administration of Customs, and State Administration of Taxation
have jointly formulated the Interim Measures for the Inspection of Exportation of Products of Foreign-funded Enterprises of the Permitted
Category Whose Products Are to Be Wholly Exported Directly, which are hereby printed and distributed to you, please implement them
accordingly. In case you have any question in the process of implementation, please timely contact the relevant departments.

Ministry of Commerce

Ministry of Finance

General Administration of Customs

State Administration of Taxation

March 1, 2006 Annex:Interim Measures for the Inspection of Exportation of Products of Foreign-funded Enterprises of the Permitted Category Whose Products
Are to Be Wholly Exported Directly

Article 1

For the purpose of regulating the business operation activities of “foreign-funded enterprises of the permitted category whose products
are to be wholly exported directly”, the present Measures are formulated in pursuant to the requirements of the Notice on Adjusting
Some Preferential Policies concerning Import Taxes (Cai Shui[2002] No.146) of the Ministry of Finance, the former State Development
and Planning Commission, the former State Economic and Trade Commission, the former Ministry of Foreign Trade and Economic Cooperation,
General Administration of Customs, and the State Administration of Taxation, in accordance with the relevant provisions of the relevant
foreign investment laws and regulations and customs supervisions laws and regulations.

Article 2

The present Measures shall be applicable to the “foreign-funded enterprises of the permitted category whose products are to be wholly
exported directly” (hereinafter referred to as the “enterprises whose products are to be wholly exported”), namely, the foreign-funded
enterprises which are approved by the competent department for ratification and determined as “enterprises whose products are to
be wholly exported”, and enjoy tax reduction and exemption policies for importing equipment therefrom.

The present Measures shall not be applicable to the “enterprises whose products are to be wholly exported” that were established before
October 1, 2002, enterprises with the business scope of their products falling within the fields of other encouragement categories,
or any other foreign-funded enterprises.

Article 3

The inspection on exportation of products as mentioned in the present Measures shall include checking and investigation. Checking
shall refer to the inspection conducted on the exportation of products of the “enterprises whose products are to be wholly exported”
that were established after October 1, 2002 by the competent departments of commerce of all the provinces, autonomous regions, municipalities
directly under the Central Government, cities under separate state planning, and Xinjiang Production and Construction Corp. (hereinafter
referred to as the competent provincial departments of commerce) jointly with the financial supervisors’ offices of the Ministry
of Finance at the local regions, local customs offices, and the departments of state taxation (hereinafter referred to as the relevant
departments). Investigation shall refer to the inspection conducted on the exportation of products of the “enterprises whose products
are to be wholly exported” that were established before October 1, 2002 by the competent provincial departments of commerce jointly
with the relevant departments.

Article 4

The Ministry of Commerce shall be responsible for the administration of the inspection of exportation of products of the “enterprises
whose products are to be wholly exported”, and shall guide the inspection work countrywide jointly with the Ministry of Finance,
General Administration of Customs, and State Administration of Taxation. The competent departments of commerce at the provincial
level shall be responsible for the inspection on the “enterprises whose products are to be wholly exported” within their jurisdictions
jointly with the relevant departments.

Article 5

The time limit for checking shall be five years of the Gregorian Calendar from the day when the “enterprises whose products are to
be wholly exported” commence production. If these enterprises commence production after September 1 of the current year, the time
limit for checking shall be calculated from January 1 of the next year.

Article 6

Any “enterprise whose products are to be wholly exported” under the checking on its exportation of products shall submit the report
on the production, exportation, or sale of its products in the previous year (hereinafter referred to as the “Report”) in duplicate
and the customs declaration documents of import/export concerning the export products to the competent department of commerce at
the provincial level where it is located before January 31 of each year.

The report submitted by any “enterprise whose products are to be wholly exported” shall be signed by the legal representative of the
enterprise and affixed with the seal of the enterprise, and the contents of the report shall include: the name of the enterprise,
time for establishment, time for putting into production, output of the previous year, exportation conditions, whether the products
are to be sold in domestic market, and the tax payment of the enterprise in the current year, etc,. (For the detail, see the annexed
form), and shall be attached with the financial statements of the enterprise.

Article 7

The competent department of commerce at the provincial level shall make examination on the report within 60 days from the date when
it received the report jointly with the relevant departments. If the exportation of products complies with the provisions of Article
11 of the present Measures, the competent department of commerce shall, together with the local financial supervisor’s office, customs
house and department of state taxation, indicate the words of “The exportation of products complies with the facts” in the Report
submitted by the “enterprise whose products are to be wholly exported”, and affix the common seal. The competent departments of commerce
at the provincial level shall, collect the information on the examined exportation of products of the “enterprises whose products
are to be wholly exported” within their jurisdictions and report it to the Ministry of Commerce before April 15 each year,.

Article 8

The “enterprises whose products are to be wholly exported” that were established after October 1, 2002 and have accepted and passed
the annual checking shall apply for going through the relevant formalities for tax refund according to the relevant provisions within
15 days from the date when they have received the Report on the Quantity of Products for Export/Sale, which is sealed with the common
seals of the competent provincial departments of commerce and the local customs offices, administrations of state taxation, and financial
supervisor’s offices.

Article 9

The specific date of starting and ending the investigation shall be:

1.

For the “enterprises whose products are to be wholly exported” which were established and commenced production before October 1, 2002
and need continue importing equipment within the total investment after October 1, 2002, the time limit for investigation shall start
from October 1, 2002 till five years after the enterprises commenced production. If the equipment imported has not been actually
put into production and use at the time when the enterprises commenced production, the time limit for investigation on such equipment
shall be the five years after the day when the equipment imported is actually put into production.

2.

For the “enterprises whose products are to be wholly exported” which were established before October 1, 2002 but had not commenced
production, and need continue importing equipment within the total investment after October 1, 2002, the time limit for investigation
shall be five years of the Gregorian Calendar from the day when the enterprises commenced production. If the enterprises commence
production after September 1 of the current year, the time limit for checking shall be calculated from January 1 of the next year.

3.

For the “enterprises whose products are to be wholly exported” which were established before October 1, 2002 and no longer import
equipment after October 1, 2002, the time limit for investigation shall start from October 1, 2002 till five years after the enterprises
commenced production..

Article 10

The competent departments of commerce and the relevant departments at the provincial level shall make selective investigation on the
exportation of products of the “enterprises whose products are to be wholly exported” that still need investigation before the end
of March of each year. The competent departments of commerce at the provincial level shall send notice to the “enterprises whose
products are to be wholly exported”, and the enterprises that have received the notice shall submit the Report on the Quantity of
Products for Export/Sale of the enterprises in the previous year to the competent departments of commerce at the provincial level
where the enterprises are located within 15 days after receiving the notice. The contents of the report submitted and the ways of
submission shall be consistent with those of the Report on the Quantity of Products for Export/Sale as prescribed in Article 6 of
the present Measures.

The competent departments of commerce at the provincial level shall report the summary of investigation information on the “enterprises
whose products are to be wholly exported” within their jurisdictions to the Ministry of Commerce, and inform the local customs offices
of the name list of the enterprises that have not passed the investigation before May 1 each year.

Article 11

The total volume of products exported directly by the “enterprises whose products are to be wholly exported” in the previous year
shall reach 100% of the product sales revenue of the enterprises in the previous year.

Article 12

The “enterprises whose products are to be wholly exported” shall ensure that the materials submitted to the competent departments
of commerce at the provincial level are authentic and correct.

Article 13

In case any “enterprise whose products are to be wholly exported” that has enjoyed the policies of import tax refund or tax exemption
has the act of selling its products in domestic market in the inspection period afterwards due to the change of management environment
or market, it shall take initiative to apply to the local customs office for making up the import duty that has been refunded or
exempted within one month, and its refundable import duty of the current year and the following year shall not be refunded any longer.
After these procedures are gone through, it may be reduced or exempted from administrative punishment for the act of selling its
products in domestic market.

In case any “enterprise whose products are to be wholly exported” that has act of selling its products in domestic market in the inspection
period fails to apply for making up the tax within the time limit, or purposely disguises the facts or falsely reports that the exportation
of the enterprise has reached the examination standard in the Report on the Quantity of Products for Export/Sale submitted to the
competent department of commerce at the provincial level and is discovered to fail to reach the examination standard afterwards,
its refundable import duty in the current year or the following year shall no longer be refunded, and it shall be mandated to pay
the import duty that has been refunded or exempted in the previous years. The relevant departments shall impose punishment on it
for the aforesaid acts. If the enterprises sell or transfer equipments that are under customs supervision without permission, the
customs shall give them punishment.

Article 14

The competent departments of commerce at all levels and the relevant departments shall be diligent in the work of supervision and
inspection on the exportation of products of the enterprises, and shall hold on to principles and handle the problems discovered
in the checking and investigation according to the law.

Article 15

The Ministry of Commerce shall complete the inspection report of the previous year on the exportation of products of the “enterprises
whose products are wholly exported” before the end of June each year jointly with the Ministry of Finance, General Administration
of Customs, and State Administration of Taxation, and report it to the State Council.

Article 16

The power to interpret the present Measures shall remain with the Ministry of Commerce jointly with the Ministry of Finance, General
Administration of Customs, and State Administration of Taxation. The present Measures shall be come into force as of the date of
promulgation.



 
Ministry of Commerce, Ministry of Finance, General Administration of Customs, State Administration of Taxation
2006-03-01

 






ANNOUNCEMENT NO.16, 2006 OF MINISTRY OF COMMERCE AND GENERAL ADMINISTRATION OF CUSTOMS, PROMULGATING THE FOURTH BATCH OF CATALOGUE OF PROHIBITED EXPORTS






Announcement No.16, 2006 of Ministry of Commerce and General Administration of Customs, Promulgating the Fourth Batch of Catalogue
of Prohibited Exports

[2006] No. 16

In accordance with Foreign Trade Law of the People’s Republic of China and Administrative Regulations on Commodities Import and Export
of the People’s Republic of China, Catalogue of Prohibited Exports (the fourth batch) is now announced and will take effect as from
May 1, 2006.

Appendix: Catalogue of Prohibited Exports (the fourth batch)

the Ministry of Commerce

General Administration of Customs

Mar 13, 2006
Appendix:
Catalogue of Prohibited Exports (the fourth batch)




Serial number

￿￿

Serial
number

Commodity
code

Trade
name

Notes

1

250510000

Silica
sand and Quatrz sand

Commodities
under 2505 are generally called natural sand no matter they are colored up
or not, except metal sand

2

250590000

Other
trade names

 



LETTER OF CHINA BANKING REGULATORY COMMISSION CONCERNING THE APPROVAL TO JAPAN SHENZHEN BRANCH OF MIZUHO INDUSTRY BANK, LTD. TO DEAL IN RMB BUSINESS FOR NON-FOREIGN-FUNDED ENTERPRISES

Letter of China Banking Regulatory Commission concerning the Approval to Japan Shenzhen Branch of Mizuho Industry Bank, Ltd. to Deal
in RMB Business for Non-foreign-funded Enterprises

Japan Mizuho Corporate Bank, Ltd.,

The letter which was signed by Hiroshi Saito, president of your bank, and was addressed to this Commission has been received.

The following reply are hereby given to you according to the Regulation of the People’s Republic of China on the Administration of
Foreign-funded Financial Institutions (Order No. 340 of the State Council, hereinafter referred to as the Regulation) and the Detailed
Rules for the Implementation of the Regulation of the People’s Republic of China on the Administration of Foreign-funded Financial
Institutions (Order No. 4, 2004 of China Banking Regulatory Commission, hereinafter referred to as the Detailed Rules):

Your Shenzhen Branch is approved to deal in RMB business for non-foreign-funded enterprises under the scope prescribed in Article
17 of the Regulation.

Your Bank is approved to make additional allocations of a sum of foreign exchange working capital in convertible currencies, equivalent
to 100 million Yuan to Shenzhen Branch. After increasing the capital, the working capital of this Branch comes up to 300 million
Yuan, of which the foreign exchange working capital in convertible currencies comes up to 200 million Yuan and the RMB working capital
comes up to 100 million Yuan.

After increasing capital and going through statutory formalities in accordance with the Regulation and the Detailed Rules, your Shenzhen
Branch may, under Article 35 of the Detailed Rules, deal in providing foreign exchange business services to various clients under
the following scope: providing RMB business services to foreign-funded enterprises, China-based foreign institutions, mainland-based
representative offices of the enterprises set up by people from Hong Kong, Macao and Taiwan, and to aliens, compatriots from Hong
Kong, Macao and Taiwan, and non-foreign-funded enterprises, pooling public deposits, granting short-term, medium-term and long-term
loans, transacting acceptance and discount of negotiable instruments, buying and selling government bonds and financial bonds, buying
and selling non-stock negotiable instruments denominated in a foreign currency, providing services on letter of credit and guaranties,
transacting domestic and overseas settlements, buying and selling foreign currencies, buying and selling foreign currencies for itself
or on a commissioned basis, converting foreign currencies, inter-bank funding, bank card business, safety-deposit box, providing
credit-standing investigation and consultation services, as well as other business activities upon the approval of China Banking
Regulatory Commission.

China Banking Regulatory Commission

March 20, 2006

 
China Banking Regulatory Commission
2006-03-20

 



CIRCULAR OF THE MINISTRY OF FINANCE AND STATE ADMINISTRATION OF TAXATION ON RELEVANT ISSUES CONCERNING CONSUMPTION TAXES IN THE IMPORT LINK






Ministry of Finance, State Administration of Taxation

Circular of the Ministry of Finance and State Administration of Taxation on Relevant Issues concerning Consumption Taxes in the Import
Link

Cai Guan Shui [2006] No.22

The General Administration of Customs,

For the purpose of meeting the requirements for social and economic development and perfecting the consumption tax system, adjustments
are made to the tax items, tax rates and the relevant consumption tax policies upon the approval of the State Council. In light of
the Circular of Ministry of Finance and State Administration of Taxation on Adjusting and Perfecting Consumption Tax Policies (Cai
Shui [2006] No.33), a notice on relevant issues concerning the collection of consumption taxes in the import link is hereby circulated
as follows:

I.

Consumption taxes shall be collected on such new taxable items as golf balls and golf equipments, luxury watches, yachts, disposable
wooden chopsticks, solid wood flooring, naphtha, solvent oil, lubrication oil, fuel oil, aviation kerosene, and so on. Consumption
taxes on skin care and hair care products shall be canceled. And the consumption tax rates on cars, motorcars, automobile tyres and
white spirits shall be adjusted. The tax rates on naphtha, solvent oil, lubrication oil, and fuel oil shall be 30% of the amount
of consumption taxes payable at interim; consumption tax on aviation kerosene shall not be collected at interim; and consumption
tax on radial tyres shall be exempted.

II.

Up to14 categories of commodities are subject to import link consumption tax after the adjustment, and see the Attachment for the
specific tax items and tax rates.

III.

The relevant provisions of the Circular of the Ministry of Finance, the General Administration of Customs, and the State Administration
of Taxation on Printing and Distributing the Provisions on Issues of Tax Policy concerning Collection of Taxes on Imported Goods
by the Customs in the Import Link (Cai Guan Shui [2004] No.7) shall be observed when handling issues concerning the policy on the
import link consumption tax.

IV.

The present Notice shall come into force as of the day of April 1, 2006. In case that any former provision conflict with this Notice,
the present Notice shall prevail.

Attachment: Table of Tax Items and Tax Rates for Taxable Commodities Subject to Import Link Consumption Taxes

Ministry of Finance

State Administration of Taxation

March 30, 2006 Attachment:Table of Tax Items and Tax Rates for Taxable Commodities Subject to Import Link Consumption Taxeshtm/e04852.htmAttachment

￿￿

￿￿






 

Tariff Code

Names of Commodities

Tax Rates

Note

 

21069020

Compound alcoholic preparations used for the manufacture of beverages

5%

 

 

 

Beer made from malt, whose import duty-paid price is USD 370 per ton or more

250 Yuan per ton

1kg= 0.988 liters

 

22030000

Beers made from malt, whose import duty-paid value is less than USD 370 per ton

220 Yuan per ton

 

 

22041000

Grape Sparkling wine

10%

 

 

22042100

Small package wine made from fresh grapes

10%

 

 

22042900

Wine made from fresh grapes in other packages

10%

 

 

22043000

Other grape juices for brewing

10%

 

 

22051000

Small package vermouth and similar wines

10%

 

 

22059000

Vermouth in other packages and similar wines

10%

 

 

 

Yellow rice wine

240 Yuan per ton

1 kg = 0.962 liters

 

22060000

Other fermented beverages

10%

 

 

22071000

Undenatured ethyl alcohol of an alcoholic strength of 80% or more

5%

 

 

22072000

Ethyl alcohol and other spirits, denatured, of any strength

5%

 

 

22082000

Spirits made from distilling wines

20%+1yuan per kilogram

1 liter = 0.912 kg

 

22083000

Whisky

20% + 1 Yuan per kilogram

 

 

22084000

Rum and other spirits distilled from sugar canes

20% + 1 Yuan per kilogram

 

 

22085000

Gin

20% + 1 Yuan per kilogram

 

 

22086000

Vodka

20% + 1 Yuan per kilogram

 

 

22087000

Liqueurs and Cordials

20% + 1 Yuan per kilogram

 

 

22089010

Tequila

20% + 1 Yuan per kilogram

 

 

 

Undenatured ethyl alcohol of an alcoholic strength of less than 80%

5%

 

 

22089090

Liquor made from potatoes

20% + 1 Yuan per kilogram

 

 

 

Other liquors and alcoholic beverages

20% + 1 Yuan per kilogram

 

 

24021000

Cigars made from tobacco

40%

 

 

24022000

Cigarettes made from tobacco with the duty-paid value of each standard carton of imported cigarettes being 50 Yuan
or more

45% + 150 Yuan per standard container

One standard carton of cigarettes = 200 cigarettes;

One standard container of cigarettes = 50,000 cigarettes

 

 

Cigarettes made from tobacco with the duty-paid value of each standard carton of imported cigarettes being less than
50 Yuan

30%+150 Yuan per standard container

 

 

Cigarettes made from tobacco substitutes with the duty-paid value of each standard container of imported cigarettes
being 50 Yuan or more

45% + 150 Yuan per standard container

 

24029000

Cigarettes made from tobacco substitutes with the duty-paid value of each standard container of imported cigarettes
being less than 50 Yuan

30% + 150 Yuan per standard container

 

Cigar made from tobacco substitutes

40%

 

 

24031000

Tobacco for smoking

30%

 

 

24039100

￿￿Homogenized￿￿ or ￿￿reconstituted￿￿ tobacco

30%

 

ex

24039900

Manufactured tobacco and manufactured tobacco substitutes (excluding tobacco extracts and tobacco essences)

30%

 

 

27101110

Motor vehicle gasoline and aviation gasoline

0.2 Yuan per liter

1 kg = 1.388 liters

 

27101921

Light diesel oil

0.1 Yuan per liter

1 kg = 1.176 liters

 

27101911

Aviation kerosene

0.1 Yuan per liter, not collected for the time being

1kg =1.246 liters

 

27101120

Naphtha

0.2 Yuan per liter, and collected at the reduced rate of 0.06 Yuan per liter

1kg = 1.385 liters

 

27101120

Rubber solvent oil, paint solvent oil, and extractive solvent oil

0.2 Yuan per liter, and collected at the reduced rate of 0.06 Yuan per liter

1 kg= 1.282 liters

 

27101991

Lubricant oil

0.2 Yuan per liter, and collected at the reduced rate of 0.06 Yuan per liter

1kg = 1.126 liters

 

27101922

No.5-7 fuel oil

0.1 Yuan per liter, and collected at the reduced rate of 0.03 Yuan per liter

1kg = 1.015 liters

 

27101929

Other fuel oils (excluding wax oil)

0.1 Yuan per liter, and collected at the reduced rate of 0.03 Yuan per liter

Wax oil: the volume percentage of distillage being less than 20% under 350￿￿ and more than 80% under 550￿￿font>

ex

33021090

Mixtures of spices and other substances for drinks and food products of more than 0.5% of alcohol strength
by volume

5%

 

 

33030000

Perfumes &toilet waters

30%

 

 

33041000

Make-ups for lips

30%

 

 

33042000

Make-ups for eyes

30%

 

 

33043000

Make-ups for fingernail and toenail

30%

 

 

33049100

Sachet, whether or not compressed, for cosmetic/toilet use

30%

 

ex

33049900

Other beautification make-ups (excluding skin-care make-ups)

30%

 

 

36041000

Fireworks and fire crackers

15%

 

 

40111000

New pneumatic tires of rubber, of a kind used on motor cars, of radial ply construction

0

Radial tyres shall refer to the tyres whose tyre cords are arranged according to the direction of the radials in the
structure of the tyres, and have belted layers with the steel cord arranged adjacent to the circular that bind the
tyre body tightly

 

New pneumatic tires of rubber used on motor cars, or of non-radial-ply construction

3%

 

40112000

New pneumatic tyres of radial ply construction used on buses or lorries

0

 

New pneumatic tyres of non-radial-ply construction used on buses or lorries

3%

 

40114000

New pneumatic tires of rubber used on motorcycles

3%

 

40116100

Other new pneumatic tires of radial ply construction having a ￿￿herring-bone￿￿ or similar tread

0

CIRCULAR OF THE STATE ADMINISTRATION OF FOREIGN EXCHANGE ON ADJUSTING THE POLICIES CONCERNING THE ADMINISTRATION OF CURRENT FOREIGN EXCHANGE ACCOUNTS

the State Administration of Foreign Exchange

Circular of the State Administration of Foreign Exchange on Adjusting the Policies Concerning the Administration of Current Foreign
Exchange Accounts

Hui Fa [2006] No. 19

April 13, 2006

To all branches and foreign exchange administration departments of the State Administration of Foreign Exchange (the SAFE) in all
provinces, autonomous regions, and municipalities directly under the Central Government, the branches in Shenzhen, Dalian, Qingdao,
Xiamen and Ningbo, and all designated Chinese-funded foreign exchange banks:

For the purpose of better satisfying the demands of domestic institutions and individuals for using foreign exchanges and promoting
the trade facilitation, we hereby notify the relevant matters on adjusting the policies concerning the administration of current
foreign exchange accounts as follows according to the Announcement No. 5 [2006] of the People￿￿s Bank of China:

I.

Annulling the beforehand examination and approval for the opening of current accounts of foreign exchange and raising the quota of
current foreign exchange accounts

1.

The foreign exchange bureau shall not conduct advance examination and approval for the opening, alteration and closing of current
foreign exchange accounts of domestic institutions any more. Where a domestic institution that has already opened any current foreign
exchange account needs to open a new current foreign exchange account again, it may directly go through the account opening formalities
at a designated foreign exchange bank (hereinafter referred to as the bank) upon the strength of an account opening application form,
its business license (or registration certificate for social organizations) and its organization code. Where a domestic institution
that has not opened any current foreign exchange account before needs to open a new current foreign exchange account, it shall firstly
register its basic information at the foreign exchange bureau upon the strength of its business license (or registration certificate
for social organizations) and its organization code before going through aforesaid formalities.

2.

The quota of the foreign exchange that can be preserved at the current foreign exchange accounts of a domestic institution shall be
raised and be determined in light of the sum of 80% of the foreign exchange incomes under current accounts and 50% of the foreign
exchange expenditures under the current accounts in the previous year. Where a domestic institution that has no foreign exchange
expenditure under current accounts in the previous year and needs to open an account, the initial quota of its current foreign exchange
account shall be adjusted to the equivalent not more than 500,000 US Dollars.

3.

Where a domestic institution that has carried out transactions before needs to pay foreign exchange for external payment, it may purchase
foreign exchange in advance at the account-opening bank upon the strength of valid vouchers and business documents as prescribed
by the Provisions concerning the Control of Settlement, Sale and Payment of Foreign Exchange and other relevant provisions on the
administration of foreign exchange, and deposit the foreign exchange into its current account of foreign exchange.

II.

Simplifying the vouchers for the sales and payments of foreign exchange in the service trade and adjusting the quotas for the examination
and approval of sales and payments of foreign exchange in the service trade

1.

Where a domestic institution or individual pays the equivalent of 50,000 US Dollars or less to an overseas institution or pays the
equivalent of 5,000 US Dollars or less to an overseas individual for the expenses under the item of service trade, the domestic institution
or individual shall, upon the strength of the contract (agreement) or the invoices (letter of payment), go through the formalities
for purchasing foreign exchange; where a domestic institution or individual purchases foreign exchange exceeding the aforesaid quota,
the original provisions shall prevail.

2.

Where a domestic institution or individual pays foreign exchange under the item of service trade through the internet or by any other
method of electronic commerce, it or he may go through the formalities for purchasing foreign exchange upon the strength of the relevant
contract (agreement), the notice on payment that are downloaded from the network and affixed with signature or seal.

3.

As to the sales or payment of foreign exchange under the item of service trade, for which the examination and approval of documents
are not clearly prescribed by any law, it shall be subject to the examination and approval of the bank if the foreign exchange is
the equivalent of 100,000 US Dollars or less and, or shall be subject to the examination and approval of the local foreign exchange
bureau if the foreign exchange is the equivalent of more than 100,000 US Dollars.

4.

Where an international ocean shipping enterprise (including the international shipping transportation, non-vessel shipping, shipping
agency and freight forwarding enterprises) pays the freight and relevant expenses under the item of international ocean shipping,
it may, directly purchase the foreign exchange at the bank; and a consignor may, in light of the business requirements, directly
pay the freight and the relevant expenses under the item of international ocean shipping to overseas shipping enterprises.

III.

Loosening the policies concerning the purchase of foreign exchange by domestic residents and implementing the administration of total
annual amounts

1.

The purchase of foreign exchange by domestic residents shall be subject to the administration of total annual amounts, and the total
annual amount shall be the equivalent of 20,000 US Dollars for each person per year. Where a domestic resident purchases foreign
exchange within the total annual amount, he shall handle it after declaring the purposes to the bank upon the strength of his real
identity certification; where he purchases foreign exchange that exceeds the total annual amount, he shall handle it after the bank
examines the voucher on real demands as prescribed in the provisions on the administration of foreign exchange.

2.

The foreign exchange purchased by a domestic resident within the total annual amount can be deposited into his domestic foreign exchange
account or used for the payment of foreign exchange under current accounts. Where he remits the foreign exchange abroad, withdraws
foreign currencies or carries them abroad, he shall handle it according to the prior provisions on the administration of foreign
exchange.

3.

The purchase of foreign exchange within the total annual amount by a domestic resident shall be conducted by himself or his lineal
relative he entrusts. Where the purchase is conducted by a lineal relative of the resident, the identity certifications of both the
trustor and the agent, the certification on the kindred and the letter of authorization issued by the trustor shall be provided.

4.

The foreign exchange bureau shall not undertake the cancellation administration of the purchase of foreign exchange by domestic residents.

IV.

Regulating the administration of operations and strengthening the monitoring and warning

1.

The foreign exchange bureau shall exercise the supervision over the foreign exchange incomes and expenses of domestic institutions
and individuals through the information system, and adjust the quota for the current foreign exchange accounts and the total annual
amounts of domestic residents for purchasing foreign exchange in light of the real requirements of the development of foreign-related
economy and the situation of balance of payment in the world market.

2.

A bank shall strengthen the examination and approval of the authenticity of foreign exchange inflows and settlements of domestic institutions
and individuals, and report the information on the opening and closing of foreign exchange accounts as well as the purchase of foreign
exchange by individuals to the foreign exchange bureau according to relevant provisions.

3.

The foreign exchange bureau shall investigate and deal with any violation of the provisions in the present Notice according to the
regulations on the administration of foreign exchange.

The present Notice shall come into force as of May 1, 2006. The matters as prescribed by the present Notice shall still be subject
to the current provisions. Where any provision promulgated earlier conflicts with the provisions in the present Notice, the latter
shall prevail.

All branches of the SAFE shall forward it to the sub-branches, foreign-funded banks, city commercial banks and rural credit cooperative
banks in their respective jurisdictions upon receipt of the present Notice; and all designated Chinese-funded foreign exchange banks
shall forward it to the branches in their respective jurisdictions upon receipt of the present Notice as soon as possible. In case
of any problem encountered in the implementation of the present Notice, please timely report it to the SAFE.

 
the State Administration of Foreign Exchange
2006-04-13

 



CIRCULAR OF THE PEOPLE’S BANK OF CHINA CONCERNING THE ADJUSTMENT OF THE RMB LOAN INTEREST RATES OF FINANCIAL INSTITUTIONS

Circular of the People’s Bank of China concerning the Adjustment of the RMB Loan Interest Rates of Financial Institutions

Yin Fa [2006] No. 134

Shanghai Headquarters, all branches and business management departments of the People’s Bank of China, all central sub-branches in
all provincial cities (capitals) and the Central Sub-branch in Shenzhen Municipality of the People’s Bank of China, all policy banks,
state-owned commercial banks, joint stock commercial banks, and the China Postal Savings and Remittance Bureau,

The People’s Bank of China decides to increase the benchmark interest rates for the loans granted by financial institutions as of
April 28, 2006. The relevant matters are hereby notified to you as follows,

I.

The interest rates for the loans granted by financial institutions shall be increased, among which the one-year loan interest rate
shall be increased by 0.27 %, from the present 5.58% to 5.85%. The loan interest rates for other loans shall also be adjusted accordingly
(For the details, please see Attachment 1). The floating methods for the loan interest rates shall remain unchanged.

II.

The interest rates for the loans of the individuals’ house accumulation funds shall be increased properly (For the details, please
see Attachment 1).

III.

The interest rates for the saving deposits in financial institutions shall remain unchanged. And the interest rates for the loans
granted by the People’s Bank of China to the financial institutions, the deposit reserve interest rates and the excessive reserve
deposit interest rates of financial institutions shall also remain unchanged.

IV.

The interest rates for the preferential loans (For the details, please see Attachment 2) increases correspondingly. The criterions
on the subsidies for the interest differences of preferential loans and the subsidizing methods shall remain unchanged.

Shanghai Headquarter and all branches (business management departments) of the People’s Bank of China, the central sub-branches of
the People’s Bank of China in all provincial cities (capitals), and the Central Sub-branch in Shenzhen Municipality of the People’s
Bank shall timely forward this Circular to the urban (rural) commercial banks, urban and rural credit cooperatives, foreign-funded
banks conducting RMB loan business, and other financial institutions within their respective jurisdictions, and urge them to timely
execute it. Meanwhile, they shall investigate into and research the responses and problems posed by all sides after the adjustment
of the interest rates, and report them to the Monetary Policy Department of the Headquarter of People’s Bank of China in a timely
manner.

(Fax: 010-66012765)

Attachments:

1.

Form of Adjustments of the Loan Interest Rates of Financial Institutions

2.

Form of Adjustments of the Interest Rates for Preferential Loans

The People’s Bank of China

April 27, 2006

 
The People’s Bank of China
2006-04-27

 



ANNOUNCEMENT NO.37, 2006 OF THE MINISTRY OF COMMERCE, THE STATE ENVIRONMENTAL PROTECTION ADMINISTRATION OF THE PEOPLE’S REPUBLIC OF CHINA

Announcement No.37, 2006 of the Ministry of Commerce, the State Environmental Protection Administration of the People’s Republic of
China

In accordance with related regulations of Administrative Measures on Import and Export of Ozone-Depleting Substances (ODSs, No.278,
2003) jointly released by State Environmental Protection Administration, the former Ministry of Foreign Trade and Economic Cooperation
and General Administration of Customs, the gross volume of import quotas of controlled chlorofluorocarbons (CFCs) and the detergent
TCA in 2006 and related matters are now announced as follows for purposes of making good to the international conventions, phasing
out the production and consumption of ODSs and encouraging the use of ODSs substitutes.

1.

In line with principle of gradually cutting down the consumption of ODSs year by year and actual status of domestic productions and
consumption of ODSs, the gross volume of import quotas of the dispersant of MDI CFC-11 (trichlorofluoromethane) and the detergent
TCA in 2006 are 380 and 2,200 ton (please refer to Appendix for details).

2.

For the time being, 70 percent of the gross volume of import quotas of the dispersant of MDI CFC-11 (trichlorofluoromethane) and
the detergent TCA will be distributed, and the other 30 percent will be distributed in accordance with actual demands of both domestic
and overseas markets in September of 2006.

3.

Enhancing administration on quotas licensing of CFCs and controlling the gross volume of exports of CFC￿￿11, CFC￿￿12 and Halon 1301.
Enterprises shall submit the declaration forms of export and the duplicates to National Office of Import and Export Administration
of Ozone-Depleting Substances for registration immediately after finishing the contracts.

4.

In accordance with Administrative Measures on Import and Export of Ozone-Depleting Substances and Regulations on Strengthening Administration
on Import and Export of Ozone-Depleting Substances (No.85, 2000), enterprises applying for import quotas of CFCs and the detergent
TCA shall put forward applications to National Office of Import and Export Administration of Ozone-Depleting Substances and then
applying for import and export license to license-releasing organs authorized by Ministry of Commerce with Notice of Examination
and Approval of Import and Export of Controlled Ozone-Depleting Substances released by Office of Import and Export Administration.

Appendix: Form of Gross Volume of Import Quotas of Controlled Ozone-Depleting Substances in 2006 (omitted)

Ministry of Commerce

State Environmental Protection Administration

May 9, 2006



 
Ministry of Commerce, State Environmental Protection Administration
2006-05-09

 






1...585960...83Page 59 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