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DECISION OF THE STANDING COMMITTEE OF THE NATIONAL PEOPLE’S CONGRESS ON AMENDING THE AUDIT LAW OF THE PEOPLE’S REPUBLIC OF CHINA

Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No. 48

The Decision of the Standing Committee of the National People’s Congress on Amending the Audit Law of the People’s Republic of China,
which was adopted at the 20th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of
China on February 28, 2006, is hereby promulgated and shall come into force as of June 1, 2006.

President of the People’s Republic of China, Hu Jintao

February 28, 2006

Decision of the Standing Committee of the National People’s Congress on Amending the Audit Law of the People’s Republic of China

(Adopted at the 20th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China on
February 28, 2006)

It is decided at the 20th meeting of the Standing Committee of the 10th National People’s Congress of the People’s Republic of China
to amend the Audit Law of the People’s Republic of China as follows:

1.

Article 1 shall be amended as: “This Law is formulated in accordance with the Constitution for the purpose of strengthening the
audit supervision of the State, maintaining the fiscal and economic order of the State, enhancing the efficiency in using fiscal
capital, promoting the building of a clean government and ensuring the sound development of national economy and society.”

2.

A new paragraph shall be added to Article 3 as Paragraph 2: “An auditing organ shall carry out audit evaluation according to the
laws and regulations on fiscal revenues and expenditures and financial revenues and expenditures as well as other relevant provisions
of the State, and shall make an audit decision within the scope of its statutory authorities.”

3.

Article 4 shall be amended as: “The State Council and the local people’s government at or above the county level shall annually present
to the standing committee of the people’s congress at the corresponding level with an audit work report of the auditing organ on
budget implementation and other fiscal revenues and expenditures. An audit work report shall give emphasis to the audit of budget
implementation. When necessary, the standing committee of the people’s congress may make a resolution on the audit work report.

“The State Council and the local people’s government at or above the county level shall report the conditions on the correction circumstance
of the problems pointed out in the audit work report and the handling results to the standing committee of the people’s congress
at the same level.”

4.

Article 10 shall be amended as: “An auditing organ may, according to the requirements for the work and upon approval of the people’s
government at the same level, establish dispatched offices within its audit jurisdiction.

“The dispatched offices shall carry out the audit work according to law based on the strength of the authorization by the auditing
organ.”

5.

A new paragraph shall be added to Article 15 as Paragraph 4: “For the appointment and dismissal of the person in-charge of the local
auditing organ at any level, it is necessary to seek the opinions of the auditing organ at the next higher level in advance.”

6.

Article 16 shall be amended as: “The auditing organ shall exercise audit supervision over the budget implementation, final settlement
of accounts as well as other fiscal revenues and expenditures of all the other departments (including subordinate organs) at the
corresponding level and the governments at lower levels.”

7.

Article 17 shall be amended as: “The National Audit Office shall, under the leadership of the Premier of the State Council, exercise
audit supervision over the implementation of central budget and other fiscal revenues and expenditures, and submit reports on audit
results to the Premier of the State Council.

“The local auditing organ at any level shall, under the respective leadership of the governor of the province, chairmen of the autonomous
region, mayor, prefect, head of the county and head of the district as well as the leadership of the auditing organ at the next higher
level, exercise audit supervision over the budget implementation and other fiscal revenues and expenditures of the corresponding
level, and submit reports on audit results to the people’s government at the corresponding level and the auditing organ at the next
higher level.”

8.

Article 19 shall be amended as: “The auditing organ shall exercise audit supervision over the financial revenues and expenditures
to the public institutions and organizations of the State and other public institutions and organizations that use fiscal capital.”

9.

Article 21 shall be deleted.

10.

Article 22 shall be changed into Article 21 and amended as: “The audit supervision over the enterprises and financial institutions
in which the State-owned capital play a controlling or leading role shall be prescribed by the State Council.”

11.

Article 23 shall be changed into Article 22 and amended as: “The auditing organ shall exercise audit supervision over the budget
implementation and final settlement of accounts relating to the construction projects that are invested or mainly invested by the
government.”

12.

Article 24 shall be changed into Article 23 and amended as: “An auditing organ shall exercise audit supervision over the financial
revenues and expenditures of the social security funds, funds from public donations and other relevant funds and capital managed
by the government department or by any other entity commissioned by government “

13.

A new article shall be added as Article 25 : “An auditing organ shall, according to the relevant provision of the State, exercise
audit supervision over the main principals of state organs and other entities belonging to the audit supervision object of the auditing
organ according to law for their fulfillment of economic liabilities of fiscal revenues and expenditures, financial revenues and
expenditures and other economic activities for their respective regions, departments or entities during the course of holding posts.”

14.

Article 29 shall be amended as: “The entities subject to audit supervision object of the auditing organ according to law shall establish
and improve their internal auditing systems in accordance with the relevant provisions of the State, and their internal auditing
work shall be subject to the professional guidance and supervision of the auditing organ.”

15.

Article 30 shall be amended as: “If an entity under audit by a social audit institution is an object of audit supervision of the
auditing organ according to law, the auditing organ shall be enpost_titled to check the relevant audit report as issued by the aforesaid
social audit institution in the light of the provisions of the State Council.”

16.

Article 31 shall be amended as: “The auditing organ shall be enpost_titled to require an entity under audit to submit, in accordance with
the provisions of the auditing organ, the budget or plan on financial revenues and expenditures, budget implementation, final settlement
of accounts, financial accounting reports, electronic data on fiscal or financial revenues and expenditures stored and disposed
by computers and necessary computer technical documents, the conditions about the account opening at the financial institution, the
audit report issued by the social audit institution as well as other materials about fiscal or financial revenues and expenditures.
And the entity under audit shall not refuse or delay the submission or give a false report.

“The person in-charge of an entity under audit shall be responsible for the authenticity and integrity of the financial accounting
materials provided by his own entity.”

17.

Article 32 shall be amended as: “The auditing organ shall, during the course of audit, be enpost_titled to examine accounting vouchers,
accounting books, financial accounting reports, the electronic data system of fiscal or financial revenues and expenditures operated
and managed by computers as well as other materials and assets related to fiscal or financial revenues and expenditures. And the
entity under audit shall not refuse to submit them.”

18.

A new paragraph shall be added to Article 33 as Paragraph 2: “The auditing organ shall be enpost_titled to inquiry the account of an entity
under audit at the financial institution upon approval of the person in-charge of the auditing organ of the people’s government at
or above the county level.”

And a new paragraph shall be added as Paragraph 3: “If the auditing organ can prove that an entity under audit deposits public money
in the name of individuals, it shall be enpost_titled to inquire about the deposits of the entity under audit in the name of individuals
at the financial institution upon approval of the person in-charge of the auditing organ of the people’s government at or above the
county level.”

19.

Paragraph 1 of Article 34 shall be amended as: “When an auditing organ carries out an audit, the entity under audit shall not transfer,
conceal, alter or destroy its accounting vouchers, accounting books, financial accounting reports and other materials about fiscal
or financial revenues and expenditures, nor may it transfer or conceal the assets it obtained in violation of the provisions of the
State.”

A new paragraph shall be added as Paragraph 2: “Where an entity under audit has the action to violates the preceding Paragraph, the
auditing organ shall be enpost_titled to deter it, and when necessary and upon approval of the person in-charge of the auditing organ
of the people’s government at or above the county level, the auditing organ may have the right to seal up the relevant materials
and the assets obtained in violation of the provisions of the State. If the auditing organ needs to freeze the relevant deposits
at the financial institution, it shall file an application to the people’s court.”

Paragraph 2 shall be changed into two paragraphs as Paragraphs 3 and 4 and be amended as: “Where an entity under audit is carrying
out any act relating to fiscal or financial revenues and expenditures in violation of the provisions of the State, the auditing
organ shall be enpost_titled to deter it. If the determent fails, the auditing organ shall, upon approval of the person-in-charge of the
auditing organ of the people’s government at or above the county level, notify the fiscal department and the relevant competent authorities
to suspend the allotment of money directly related to the act of fiscal or financial revenues and expenditures in violation of the
provisions of the State; if the aforesaid money has been allotted, the use thereof shall be suspended.

“The measures adopted by auditing organ as prescribed by the preceding two paragraphs shall not affect the lawful business operations
or production and management activities of the entity under audit.”

20.

A new article shall be added as Article 37 : “The auditing organ may, when performing the duty of audit supervision, request the administrative
department of public security, supervision, public finance, taxation, customs, price or industry and commerce to offer assistance.”

21.

Article 37 shall be changed into Article 38 , and Paragraph 1 shall be amended as: “The auditing organ shall form an audit team in
light of the audit matters as determined in the plan on the audit, and shall, within 3 days before the audit implementation, serve
an audit notice to the entity under audit. In the case of any special circumstance, the auditing organ may, upon approval of the
people’s government at the same level, directly carry out the audit with the audit notice.”

A new paragraph shall be added as Paragraph 3: “The auditing organ shall enhance the efficiency of audit work.”

22.

Article 38 shall be changed into Article 39 , and Paragraph 1 shall be amended as: “The auditors shall carry out their audit and
obtain the prove materials through the way of examining accounting vouchers, accounting books and financial accounting reports, consulting
the documents and materials about audit matters, inspecting the cash, physical objects and securities and making investigations
to the relevant entities or individuals.”

23.

Article 39 shall be changed into Article 40 and be amended as: “An audit team shall, after carrying out the audit of matters, submit
an audit report to the auditing organ. However, the audit team shall, prior to the submission of the audit report to the auditing
organ, solicit the opinions of the entity under audit. The entity under audit shall, within ten days upon receipt of the audit report
of the audit team, submit its written opinions to the audit team. The audit team shall submit the aforesaid written opinions together
with the audit report to the auditing organ.”

24.

Article 40 shall be changed into Article 41 and be amended as: “The auditing organ shall deliberate the audit report submitted by
the audit team according to the procedures as set down by the National Audit Office, and present an audit report of its own after
concurrently studying the opinions of the entity under audit about the audit report delivered by the audit team. It shall, within
the scope of its statutory authorities, make an audit decision or put forward the opinions for disposition and punishment to the
competent authorities in case the disposition or punishment should be imposed according to law on an act of fiscal or financial revenues
and expenditures in violation of the provisions of the State.

“The auditing organ shall serve the audit report and audit decision of its own to the entity under audit and the relevant competent
organ or entity. The audit decision shall enter into force as of the date of service.”

25.

A new article shall be added as Article 42 : “If the auditing organ at the higher level considers that an audit decision made by an
auditing organ at the lower level has violated the relevant provisions of the State, it may order the auditing organ at the lower
level to alter or cancel the aforesaid decision, and may directly make a decision on alteration or cancellation when necessary.”

26.

Article 41 shall be changed into Article 43 and be amended as: “If an entity under audit violates any provisions in this Law by
refusing or delaying to provide the materials about audit matters, or providing untrue or incomplete materials, or refusing or impeding
the inspection, the auditing organ may order it to make corrections, and may circulate a notice of criticism and give a warning.
If the entity under audit refuses to make corrections, it shall be subject to liabilities according to law.”

27.

Articles 42 and 43 shall be incorporated into one article as Article 44 and be amended as: “Where an entity under audit violates
the provisions in this Law by transferring, concealing, altering or destroying accounting vouchers, accounting accounts, financial
accounting reports or other materials related to fiscal or financial revenues and expenditures, or transferring or concealing the
assets obtained by violation of the provisions of the State, and if the auditing organ considers that the principal and other persons
held to be directly responsible should be given sanctions according to law, the auditing organ shall put forward the suggestions
for punishment, and the entity under audit or the organ at the higher level and the supervisory organ shall make a timely decision
according to law, and notify the result to the auditing organ in written form; and if a crime is constituted, the entity under audit
shall be subject to criminal liabilities according to law.”

28.

Article 44 shall be changed into Article 45 and be amended as: “Where any other department (including subordinate entities) at the
corresponding level or the government at the lower level commits the acts against the budget or other acts of fiscal revenues and
expenditures against the provisions of the State, the auditing organ, the people’s government or the competent authorities shall,
within the scope of its statutory authorities and in accordance with the laws and administrative regulations, take the following
measures in light of the specific situation:

(1)

Ordering it to pay the money that should be turned over within the time limit;

(2)

Ordering it to return the occupied state-owned assets within the time limit;

(3)

Ordering it to refund the unlawful proceeds within the time limit;

(4)

Ordering to dispose the matter in accordance with the relevant provisions on the unified national accounting system; and

(5)

Other disposal measures.

29.

Article 45 shall be changed into Article 46 and be amended as: “Where an entity under audit commits the acts of financial revenues
and expenditures in violation of the provisions of the State, the auditing organ, the people’s government or the competent authorities
shall, within the scope of its statutory authorities and in accordance with the laws and administrative regulations, take measures
as prescribed in the preceding Article in light of the specific situation, and may impose punishments on the entity under audit according
to law.”

30.

A new article shall be added as Article 47 : “The auditing organ shall make an audit decision within the scope of its statutory authorities,
and the entity under audit shall implement the aforesaid decision.

“Where the auditing organ orders an entity under audit to turn over a sum of money that should be turned over according to law, but
the entity under audit refuses to do so, the auditing organ shall circulate a notice to the competent authorities, and the competent
authorities shall, according to the laws and administrative regulations, withhold the aforesaid money or take other disposal measures,
and notify the results to the auditing organ in written form.”

31.

A new article shall be added as Article 48 : “Where an entity under audit holds objection to an audit decision on financial revenues
and expenditures made by the auditing organ, it may file an application for administrative reconsideration or lodge an administrative
lawsuit according to law.

“Where an entity under audit holds objection to an audit decision on fiscal revenues and expenditures made by the auditing organ,
it may request the people’s government at the same level with the auditing organ for ruling, and the ruling made by the people’s
government at the same level shall be the final decision.”

32.

Article 46 shall be changed into Article 49 and be amended as: “Where the fiscal or financial revenues and expenditures of an entity
under audit break the provisions of the State and the auditing organ considers it necessary to punish the principal and other persons
held to be directly responsible, it shall put forward the suggestions for punishment, and the entity under audit, the organ at the
higher level or the supervisory organ shall timely make a decision according to law and notify the results to the auditing organ
in written form.

33.

Article 48 shall be changed into Article 51 and be amended as: “Anyone who retaliates or makes a false charge against the auditor
shall be given sanctions according to law; and shall be subject to criminal liabilities according to law if any crime is constituted
.”

34.

Article 49 shall be changed into Article 52 and be amended as: “Where an auditor abuses his authorities, resorts to frauds for personal
ends, neglects his duties or divulges national secrets or business secrets he has learnt about, he shall be punished according to
law; and if a crime is constituted, he shall be subject to criminal liabilities according to law.”

This Decision shall come into force as of June 1, 2006.

The Audit Law of the People’s Republic of China shall be re-promulgated after the amendments have been made and the sequential numbers
of the articles are correspondingly adjusted according to this Decision.



 
Standing Committee of the National People’s Congress
2006-02-28

 







NOTIFICATION NO.3, 2006 OF FOREIGN ASSISTANCE PROJECT BID BOARD OF THE MINISTRY OF COMMERCE

Notification No.3, 2006 of Foreign Assistance Project Bid Board of the Ministry of Commerce

Tong Gao [2006] No.3

Foreign Assistance Project Bid Board of the Ministry of Commerce held the 3rd regular meeting on February 24, 2006. Matters of concern
and resolution are notified as follows:

1.

The bid-winning enterprise of three projects including Dormitory for President’s Armed Escort in Guinea-Bissau assistance project
was discussed. The Bid Board opened sealed tenders on February 20, 2006. In all, 12 tender enterprises including Jiangsu Construction
Engineering Corp., Guangsha Chongqing Construction (Group) Co., Ltd., Weihai International Economic & Technical Cooperative Co.,
Ltd., Hainan Construction Engineering General Co., China Railway 23BG Group Corporation Co., Ltd., China Jiangsu International Economic
Technical Cooperation Corp., Gansu Foreign Engineering Corporation, China Shandong Foreign Economic Technical Cooperation Corp.,
China Chongqing International Corporation For Econ. & Tech. Cooperation, Guangdong Xinguang International Group Co., Ltd., China
Railway Wuju Group Corporation and Xinjiang International Economic Technical Cooperation Corp. submitted the tender documents on
time. China SFECO Group Co., Ltd. and Hubei Construction Engineering Group Corporation gave up. The Bid Board, in accordance with
“the Measures for Tender Assessment of Undertaking Foreign Assistance Complete Plant Projects” which was revised in 2005 by the Ministry
of Commerce of the People’ Republic of China, for Trial Implementation and the principles of “competing with no minimum bid ” and
“biding with reasonable lower price “,, determined to confer bid to Hainan Construction Engineering General Corporation after two
steps of tender review with technical measures and integrated quantity measures.

2.

The tender mode of Bahamas Stadium assistance project was discussed. Bid Board adopted limited invitation tender mode, and 19 enterprises
including Anhui Foreign Economic Construction Corporation (group) Co., Ltd., Qilu Construction Group Corporation, Shanxi Construction
Engineering (group) Co., Shanghai Construction Group General Co., Beijing Construction Engineering Group Co., Ltd., Qingdao Construction
Group Corporation, Hunan Construction Engineering Group Corporation, Fujian Construction Engineering Group General Co., China State
Construction Engineering Corp., Yanjian Group Co., Ltd., China Civil Engineering Construction Corporation, China National Overseas
Engineering Corporation, Guangdong Xinguang International Group Co.Ltd., Guangdong Construction Engineering Group Co., Ltd., Jiangsu
Construction Group Corp., China Ershisanye Construction Group Co., Ltd., Chongqing Foreign Construction Corporation Beijing Urban
Construction Group Co., Ltd. and Zhejiang Electric Power Construction Corp. will be invited to participate in the bid. Specific matters
of concern shall be notified later.

3.

The tender mode of Container Inspection Equipment of Ecuador assistance project was discussed. The Bid Board determined to have
tender discussion with NUCTECH Company Limited about the project. Specific matters of concern shall be notified later.

4.

The tender mode of an area in Madagascar about 1￿￿50000 geochemistry measure assistance project. The Bid Board determined to have
tender discussion with China Seismological Bureau about the project. Specific matters of concern shall be notified later.

Foreign Assistance Project Bid Board of the Ministry of Commerce

March 2, 2006



 
Foreign Assistance Project Bid Board of the Ministry of Commerce
2006-03-02

 







DECISION OF THE STATE COUNCIL ON THE COLLECTION OF SPECIAL PETROLEUM INCOMES

The State Council

Decision of the State Council on the Collection of Special Petroleum Incomes

Guo Fa [2006] No. 13

The people’s governments of all provinces, autonomous regions, and municipalities directly under the Central Government, all the ministries
and commissions of the State Council, and the institutions directly under the State Council:

Petroleum is an important strategic resource in the national economic and social development. Since 2004, the profits of the crude
oil exploitation industry in China have increased a lot as a result of the continuous and significant rise of the oil price in the
international market, which has increased the costs of other industries and the society for using the oil, caused the unbalance of
the distribution of benefits among various industries, and affected the smooth running of the economy. For the purpose of properly
balancing the interests of different sides, promoting the reform of oil price forming mechanism, reinforcing the state adjustment
and control, and promoting the national economy to develop in a continuous, sound and coordinative way, the State Council has decided
to collect special incomes of petroleum on the excessive incomes obtained by petroleum exploitation enterprises from selling domestically
produced crude oil as a result of the rise of oil price.

The special petroleum proceeds are non-tax incomes of the central treasury and shall be included into the budget management of the
central treasury. The specific measures on the collection administration shall be formulated and promulgated for implementation by
the Ministry of Finance.

The State Council

March 15, 2006



 
The State Council
2006-03-15

 







MEASURES FOR THE ADMINISTRATION OF ADMINISTRATIVE LAW ENFORCEMENT IN CULTURAL MARKET

Ministry of Culture

Decree of the Ministry of Culture

No.36

The Measures for the Administration of Administrative Law Enforcement in Cultural Market adopted through deliberation at the executive
meeting of the Ministry of Culture on June 16, 2005, are hereby promulgated, and shall enter into effect as of the day of July 1,
2006.

Ministry of Culture

March 24, 2006

Measures for the Administration of Administrative Law Enforcement in Cultural Market

Chapter I General Provisions

Article 1

In order to regulate acts of administrative law enforcement in cultural market, strengthen administration on cultural market, maintain
the order of cultural market administration, and protect the lawful rights and interests of citizens, legal persons, and other organizations,
as well as promote the healthy development of cultural market, these Measures are formulated according to the relevant state laws
and regulations .

Article 2

The administrative law enforcement in cultural market as mentioned in these Measures shall refer to the administrative departments
of culture of the people’s governments at all levels or other law enforcement organizations authorized by the laws or regulations
(hereinafter referred to as the law enforcement organizations), the operational activities of culture of citizens, legal persons,
or other organizations shall be supervised and inspected, and their illegal acts shall be punished according to the provisions of
relevant state laws, regulations, and rules.

Article 3

The range of administrative law enforcement in cultural market mentioned in these Measures shall include:

1.

Business performance activities;

2.

Importation, wholesale, retail, lease, and projection of audio-video products;

3.

Operational activities in places of entertainment;

4.

Operational activities of artwork;

5.

Operational activities of issuance and projection of films;

6.

Operational activities of culture of the business places for internet access services and internet; and

7.

Other operational activities of culture under the control of the administration of the administrative departments of culture.

Article 4

The principle of fairness, justness, and openness shall be followed for the administrative law enforcement in cultural market, and
an administrative law enforcement system of well defined power and responsibility, standardized behaviors, effective supervision,
and strong safeguards shall be established.

Article 5

According to the division of work of responsibility, the Ministry of Culture shall guide the work of law enforcement in cultural market
countrywide, formulate bylaw on administrative law enforcement and the plan for training of administrative law enforcement personnel
in cultural market, and guide and harmonize the local law enforcement organizations to investigate the major and serious cases,
and supervise the administrative law enforcement of the local law enforcement organizations.

The local law enforcement organizations in or above the county level shall take charge of the work of administrative law enforcement
in cultural market within their own administrative regions according to their divisions of work of responsibility.

Article 6

According to the provisions of state laws and regulations and the procedures determined by these Measures, the law enforcement organizations
and the administrative law enforcement personnel in cultural market (hereinafter referred to as the law enforcers) shall enforce
laws and accept the law enforcement supervision of the relevant departments.

Article 7

The law enforcement organizations and the law enforcers that have remarkable performances in their work shall be given honors and
encouragements by the administrative departments of culture.

Chapter II Law Enforcement Organizations and Law Enforcers

Article 8

The construction of law enforcement contingent shall be strengthened, the various regulations shall be improved, and law enforcement
mechanisms shall be perfected by the administrative departments of culture.

Article 9

The functions of a law enforcement organization shall be:

1.

Publicizing and carrying out the policies and laws and regulations on the management of cultural market;

2.

In light of the law, within their own administrative regions, making supervision and inspection on operational activities of culture
of citizens, legal persons, and other organizations, and punishing their illegal acts;

3.

Organizing the training and examination of law enforcers;

4.

Supervising and guiding the work of the law enforcement organizations of the lower level; and

5.

Bringing forward advices to the legislatures and the administrative organizations on improving the relevant laws, regulations, and
rules about cultural market management.

Article 10

The law enforcement organizations shall perfect the tip off system about cultural market, publicize the tip off telephone and e-mails,
and improve tip off networks, accept and deal with the tip offs in time according to the law.

Article 11

The routine inspection and regular inspection system of cultural market shall be established and improved by the law enforcement organizations.

Article 12

The system of archival filing and the system of sending a copy of major punishment decisions shall be used to administrative law enforcement
in cultural market.

If the law enforcement organization makes the decision of administrative punishments which is ordering to stop business operations
for rectification, suspending license or giving a larger amount of fines, and so on, it shall report to the admission organization
and the law enforcement organization of the upper level for archival filing within 15 days from the day of making the decision on
administrative punishment.

If the law enforcement organization makes the decision of administrative punishments , which is ordering to stop business operations
for rectification, or suspending licenses, it shall send a copy of the punishment decision to the departments of public security
and industry and commerce, and other relevant departments in time.

Article 13

The system of reporting major cases shall be carried out for administrative law enforcement in cultural market.

The local law enforcement organization shall report the information of the case to the law enforcement organization of the upper level
within 24 hours if a major case occurs.

Article 14

The system of regular report on law enforcement data shall be carried out in the administrative law enforcement in cultural market.

Article 15

The law enforcement organizations shall be equipped with establishments and equipments like vehicles, communications, testing, and
evidence obtaining, which are necessary for administrative law enforcement.

Article 16

When enrolling law enforcers, the law enforcement organizations shall make recruitment and examination openly and enroll the best
by selection in light of the state provisions.

Article 17

The law enforcers shall meet the requirements as follows:

1.

Having firm political standpoint and a fine style of work, submitting disciplines, and being physically healthy;

2.

Before undertaking the work of administrative law enforcement in cultural market, having no criminal records; and

3.

Knowing well the laws, regulations, and rules on the administration of cultural market, and mastering the professional knowledge and
skill, which are necessary for the administration of cultural market.

Article 18

After having passed on-the-job training and the examination, the law enforcers shall obtain the certificate of administrative law
enforcement in cultural market . The contents of training to law enforcers and the examination standard shall be determined uniformly
by the Ministry of Culture, and shall be organized and carried out by the administrative departments of culture at the provincial
level.

Article 19

The law enforcement organizations shall examine professional competence of law enforcers each year, and after the assessment the law
enforcers who are not qualified shall not continue to take charge of administrative law enforcement work.

Article 20

The law enforcers shall take part in the training of professional knowledge and skill in cultural market no less than 40 hours each
year. The law enforcers shall be encouraged and supported by the law enforcement organizations to take part in the various in-service
further study activities.

Article 21

The system of regular post-shift on law enforcers shall be carried out, and in general, a law enforcer shall not take one job position
for more than five years.

Chapter III Law Enforcement Procedures

Article 22

The illegal administrative cases in cultural market shall be under the control of the law enforcement organizations at or above the
level of the counties at the places where the illegal acts occur. Unless there are different provisions by the law or administrative
regulation, such provisions shall be followed.

If law enforcement organization discovers that the case under investigating is not under its jurisdiction, it shall be transferred
to the administrative department of culture that has jurisdiction or other administrative organizations in time. If the illegal act
has constituted a crime, it shall be transferred to the judicial department subject to criminal liabilities according to the law.

Article 23

Administrative law enforcement activities shall be implemented strictly according to the procedures prescribed in laws, regulations
and these Measures, and law enforcement documents shall be made in the light of the law.

Article 24

When executing public affairs, the law enforcers shall show the law enforcement certificates to the parties or the relevant personnel
according to law.

Article 25

As any act of any citizen, legal person, or other organization breaks the regulations on the management of cultural market, which
shall be given administrative punishment in the light of the law, the law enforcement organizations shall make the facts clearly;
if the illegal facts are not clear, the administrative punishment shall not be given by the law enforcement organizations.

Article 26

Before making an administrative punishment, the parties shall be notified the facts, the reasons and the basis of the administrative
punishment decision and the rights they shall enjoy thereof.

Article 27

The parties shall have the right to make statements and averments. The opinions of the parties shall be sufficiently heard and written
records shall be made by the law enforcers, and review the facts, reasons, and evidence brought forward by the parties, and if they
can be proved, adopt them after review.

Article 28

If the illegal facts are authentic and have legal basis, a decision may be made on the spot on giving an administrative punishment
of a fine of less than 50 Yuan to a citizen or a fine of less than 1,000 Yuan to legal person or other organization or a warning,
and the law enforcers shall fill in the decision on administrative punishment with the predetermined format and compiled with numbers,
and deliver it to the parties on the spot.

The decisions shall be reported to the subordinate law enforcement organizations and put them on archives within 3 days from the day
when they have made on-site punishment decisions.

Article 29

If the law enforcement organization discovers that any citizen, legal person, or other organization has any act that shall be given
administrative punishment except the administrative punishment that may be made on spot in the light of the law, it shall make registration
on it and put it on records, and make investigation in time, overall, objective, and fair manner, and collect the relevant evidence,
and may make inspection according to the relevant provisions of the laws or regulations if it is necessary.

The evidence shall be included documentary evidence, material evidence, testimony of witnesses, audio-video materials, statements
of the parties, expert conclusions, records of inquests and records made on the scene, or other relevant evidence. After it has been
ascertained to be truthful, the evidence can be taken as the basis for determining facts.

Article 30

When making investigation or inspection, there shall be no less than two enforcers. The parties and the relevant personnel shall answer
the inquiries in the light of the facts, and assist in the investigation or inspection, and shall not obstruct it. The law enforcers
shall make written records on the inquiry or the inspection, and hand them to the parties or the relevant personnel for checking,
the parties or the relevant personnel shall sign their names or seals if there is no fault after checking. The two or more law enforcers
shall indicate the conditions in the written records and sign their names if the parties or the relevant personnel refuse to sign
their names or seals.

Article 31

When collecting evidence, the law enforcers may use the method of sampling to obtain evidence; if the evidence may be lost or difficult
to obtain afterwards, after the approval of the person who takes charge of the law enforcement organization, such measures as preservation
through prior registration may be taken .

The parties shall be at present when obtaining evidence by sampling or preserving it through registration,; if the parties are not
at present or refuse to be at present, other personnel on the scene may be asked to give witness and indicated it.

A list of the evidence obtained by sampling or articles preserved through registration shall be made, and in the light of the circumstances,
credence of obtaining evidence through sampling or list of preservation through registration shall be made, and the name, quantity,
and unit price of the articles, and other matters concerned shall be indicated. The law enforcers and the parties shall sign their
names or seals on it, and the law enforcers shall hand it to the parties. If the parties refuse to sign their names seal, or accept
it, the two or more law enforcers shall indicate the conditions on the credence or the list and sign their names.

When preserving articles through registration, they may be preserved at a different place if it may disturb public order or public
security to preserve them at the original place.

Article 32

The handling decisions shall be made as follows within 7 days on the evidence preserved through prior registration:

1.

If it is necessity to make technical inspection or authentication, it shall be submitted for inspection or authentication;

2.

If the articles need not to be confiscated according to the law, they shall be returned to the parties;

3.

If the articles shall be devolved on the relevant departments for disposal, they shall be devolved on the relevant departments; and

If there are different provisions in other law or regulation, such provisions shall be followed.

Article 33

After the conclusion of an investigation, the person in charge of a law enforcement organization shall examine the investigation results,
and in the light of the circumstances, make a decision of giving administrative punishment, not giving administrative punishment,
or transferring to the judicial department for disposal .

Before making an administrative punishment decision, a law enforcement organization shall make a notice on the administrative punishment
and serve it on the parties, informing them of the contents, facts, the reasons and the basis of the administrative punishment to
be made thereof. If administrative punishment decisions such as ordering to stop business operations for rectification, suspending
license, or giving a large amount of fine, and etc. will be made, it shall indicate in the notice on the administrative punishment
that the parties shall have the right to request holding a hearing within 3 days after receiving the notice; if the parties request
a hearing, the hearing shall be organized by the law enforcement organization which will make the administrative punishment decision.

Article 34

A hearing shall be carried out in light of the procedures as follows:

1.

The chairperson announces the beginning of the hearing, the reason of the case and the hearing disciplines, rights and obligations
of the parties, and announces and checks the name list of the participants in the hearing;

2.

The illegal facts of the parties, the evidence, basis for punishment, and the reasons for the administrative punishment shall be brought
forward by the investigators;

3.

The parties may put forward evidence, make statements and averments, and make cross-examinations on the evidence brought forward by
the investigators;

4.

The chairperson inquires to the parties, investigators, witnesses, and the relevant personnel;

5.

The parties make final statements; and

6.

The chairperson announces the end of the hearing.

Article 35

Written records about the hearing shall be made , and be handed to the parties for checking, if there is no fault therein, the parties
shall sign their names or seals.

The chairperson shall make a written report in the light of the hearing, and submit it to the law enforcement organizations along
with the written records.

The following contents shall be included in the report: reason of the case, time and place for the hearing, name or post_title of the participants
in the hearing, matters of averment and cross-examination, authentication on the evidence, and cognizance of facts.

Article 36

After it is announced, the letter of decision on administrative punishment shall be handed to the parties on the spot. The parties
shall indicate the date of acceptance in the proof of service, sign their names or seals.

If the parties are not present, according to the relevant provisions of the Civil Procedure Law, the law enforcement organization
shall serve the letter of decision on administrative punishment on the party within 7 days.

Article 37

The confiscated properties in the light of the law shall be auctioned openly or dealt with in light of the relevant provisions of
the state.

Goods that shall be destroyed in the light of the law shall be destroyed under the supervision of two or more law enforcers after
the approval of the person in charge of the law enforcement organization, and a destruction record shall be made thereof.

Article 38

The law enforcement documents and the relevant materials shall be compiled and bound, and be put on archives according to the provisions
of relevant laws and regulations.

Chapter IV Supervision over Law Enforcement and Prosecution of Liabilities

Article 39

The law enforcement acts of the law enforcement organizations at the lower level and the law enforcers shall be supervised by the
law enforcement organizations at the upper level thereof.

Article 40

The following contents shall be included in the law enforcement supervision:

1.

Subjects of law enforcement;

2.

Procedures for law enforcement;

3.

Application of laws, regulations, and rules;

4.

The situations of performance of legal obligations;

5.

Internal management system of law enforcement organizations;

6.

Disposal of the confiscated properties and goods; and

7.

Other contents need to be supervised.

Article 41

The ways of law enforcement supervision shall be as follows:

1.

Accepting and hearing appeals, accusations, and complaints on illegal administrative acts, and directly dealing with them or ordering
the relevant departments to deal with;

2.

Inspecting the law enforcement work;

3.

Consulting administrative law enforcement files and other materials; and

4.

Other ways adopted within the range of power.

Article 42

If the law enforcement organizations at the upper level find out that the law enforcement organizations at the lower level and their
law enforcers have any of the circumstances as follows in law enforcement process, the administrative punishment shall be rectified
or revoked, if the administrative punishment damages the lawful rights and interests of the parties, compensation shall be given
in the light of the law:

1.

The subjects of law enforcement are not lawful;

2.

The procedures for law enforcement are illegal;

3.

Application of laws, regulations, and rules in the concrete administrative acts in a way erroneous; or

4.

The confiscated properties are dealt with illegally.

Article 43

Due to the circumstances as listed in Article 42 , an administrative punishment results in the following consequences, the direct
principal and the main principal shall be conducted to liabilities in accordance with law, and may be suspended of or taken back
of the law enforcement certificates in light of the circumstances:

1.

The decision on cultural administrative punishment shall be revoked or altered by the people’s court; or

2.

The decision on cultural administrative punishment shall be revoked or altered by the reconsideration organization.

Article 44

If he or she has any of the circumstances as follows, which do not constitute a crime, the law enforcer shall be given administrative
punishment in the light of law, and his or her law enforcement certificate shall be taken back; if the circumstances are serious,
and a crime is constituted, he or she shall be investigated for criminal liabilities:

1.

Misusing of authority to encroach on the lawful rights and interests of citizens, legal persons, or other organizations;

2.

Seeking for or taking and accepting the properties of others by using of his power or availing of the convenience of his job, or supporting,
conniving at or harboring illegal operational activities in cultural market;

3.

Failing to accept and hear or handle tip-offs of the public, or delaying or passing the buck;

4.

Divulging contents of tip-offs and the arrangements for law enforcement acts;

5.

Forging, tampering with, concealing, or destroying evidence;

6.

Asleep at the switch and resulting in serious consequences;

7.

Taking part in operational activities of culture in any form; or

8.

Other acts that seriously break laws, regulations, and rules.

Article 45

The law enforcers shall not engage in administrative law enforcement activities during the period of being suspended of the law enforcement
certificates; if the law enforcement certificates are taken back, the law enforcers shall be transferred from their administrative
law enforcement posts, and shall not engage in administrative law enforcement work any longer.

Chapter V Supplementary Articles

Article 46

The Cultural Market Inspection Certificate of the People’s Republic of China, which is the lawful certificate for the law enforcers
to perform duties, shall be supervised by the Ministry of Culture uniformly, and examined and issued by the administrative departments
of culture at or above the provincial level.

The formant of the law enforcement documents shall be uniformly formulated by the Ministry of Culture, and supervised by the provincial
administrative departments of culture.

Article 47

The right of interpreting these Measures shall remain with the Ministry of Culture.

Article 48

These Measures shall come into force as of the day of July 1, 2006. The Interim Measures for Cultural Market Inspection promulgated
by the Ministry of Culture on November 14, 1994, and the Regulations concerning the Procedures for Cultural Administrative Punishment
of the Ministry of Culture promulgated on December 31, 1997 by the Ministry of Culture, and the Interim Measures for the Prosecution
of Liabilities for Faulty Administrative Law Enforcement Cases in Cultural Market promulgated on May 15, 2000 by the Ministry of
Culture shall cease to be in force on the same day.



 
Ministry of Culture
2006-03-24

 







OFFICIAL REPLY OF MINISTRY OF COMMERCE ON RELATED ISSUES OF TRANSACTING CONFIRMATION LETTER OF EXEMPTION OF FOREIGN-FUNDED ENTERPRISES OF ENCOURAGED CATEGORIES

Ministry of Commerce

Official Reply of Ministry of Commerce on Related Issues of Transacting Confirmation Letter of Exemption of Foreign-funded Enterprises
of Encouraged Categories

Ministry of Commerce

April 6, 2006

Departments of commercial administration of all provinces, autonomous regions, municipalities, separately listed cities in plan and
Xinjiang Production and Construction Corps:

1.

Since no adjustment has been made to regulations of “confirmation letter” and “import certification” and the formality procedures,
all departments should continue to implement the current regulations strictly.

2.

In accordance with above formality procedures and specific operating measures, functions, authorities and related requirements of
commercial departments of transacting “confirmation letter” and “import certification” remain unchanged. Please all commercial departments
continue to well accomplish tasks strictly in line with related regulations.

3.

All departments of commercial administration should strictly follow related regulations, go thorough formalities of exemption for
imported facilities of qualified foreign-funded enterprises and enhance overseas cooperation, reporting situations of transaction
to Ministry of Commerce for registration timely.

Ministry of Commerce will strengthen supervision and instruction on formalities of “confirmation letter” and “import certification”
below limitation, those unregistered or falling short of related regulations will be corrected or canceled. For cases of gross violation,
Ministry of Commerce will suspend releasing qualification of “confirmation letter” and “import certification”, and inform related
customs of suspending formalities of export exemption together with General Administration of Customs.

If encountering any problem, please report to Ministry of Commerce (Department of Foreign Investment Administration).

Ministry of Commerce

Apr 6, 2006



 
Ministry of Commerce
2006-04-06

 







NOTIFICATION NO.8, 2006 OF FOREIGN ASSISTANCE PROJECT BID BOARD OF THE MINISTRY OF COMMERCE

Notification No.8, 2006 of Foreign Assistance Project Bid Board of the Ministry of Commerce

Tong Gao [2006] No.8

Foreign Assistance Project Bid Board of the Ministry of Commerce held the 8th regular meeting on April 13, 2006. Matters of concern
and resolution are notified as follows:

1.

The internal total contract price for the follow-up tasks for Indonesia Movable House assistance project was examined and approved

2.

The implementation mode of Turkmenistan Velour Factory assistance project was discussed. Because the silk velvet technical is un-normative;
the equipments are un-standard and the workers are finite, it is difficult to determine the implementation enterprise by tender mode
owing to specific reasons Because of the urgency of the project, the Bid Board decided to have tender discussion with Shanxi Zhongxu
International Trade and Industry Co., Ltd. which has been in Turkmenistan for a long time and has good performance in the country.

3.

The tender mode of Mongolia Tractor and Irrigation Quipment assistance project was discussed. The Bid Board adopted limited invitation
tender mode, and 9 enterprises Suntime International Techno-Economic Cooperation (Group) Co., Ltd., Tianjin Machinery Import &
Export Corporation, China Machine Building International Corporation, Suzhou Hengrun Import & Export Corp., Ltd., China National
Machinery Imp. & Exp. Corp., China National Pharmaceutical Foreign Trade Corporation, China Xinjiang Tacheng Sanbao Import &
Export Company, Northern International Group Co., Ltd. and China National Automotive Industry Imp. & Exp. Corporation will be
invited to participate in the bid. Specific matters of concern shall be notified later.

4.

The follow-up implementation mode of The Republic of Congo Bouenza Hydropower Station Maintenance assistance Project was discussed.
Because of the continuity and urgency of the project, the Bid Board decided that:

(1)

The materials supply, equipment installation and follow-up civil engineering construction tasks, which are not qualified with tender
conditions, of the project shall be determined by tender discussion with NUCTECH Company Limited.

(2)

The supplier of equipments and materials, which are qualified with tender conditions, shall be determined by tender mode.

Foreign Assistance Project Bid Board of the Ministry of Commerce

April 19, 2006



 
Foreign Assistance Project Bid Board of the Ministry of Commerce
2006-04-19

 







LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON AGRICULTURAL PRODUCT QUALITY SAFETY

the Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No. 49

The “Law of the People’s Republic of China on Agricultural Product Quality Safety”, adopted at the 21st session of the Standing Committee
of the Tenth National People’s Congress of the People’s Republic of China on April 29, 2006, is hereby promulgated, and shall go
into effect as of November 1, 2006.

Hu Jintao, President of the People’s Republic of China

April 29, 2006

Law of the People’s Republic of China on Agricultural Product Quality Safety ContentsChapter I General Provisions

Chapter II Agricultural Product Quality Safety Criteria

Chapter III Places of Origin of Agricultural Products

Chapter IV Production of Agricultural Products

Chapter V Packages and Marks of Agricultural Products

Chapter VI Supervision and Inspection

Chapter VII Legal Liabilities

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

In order to guarantee the quality safety of agricultural products, maintain the health of the general public, and promote the development
of agriculture and rural economy, the present Law is formulated.

Article 2

The term “agricultural products” as mentioned in the present Law refers to primary products sourced from agriculture, that is to say,
the plants, animals, microorganisms and their products, which are obtained from agricultural activities.

The term “agricultural product quality safety” as mentioned in the present Law means that the quality of an agricultural product meets
the requirements for ensuring human health and safety.

Article 3

The administrative department of agriculture of the people’s government at the county level or above shall be responsible for the
supervision and inspection of agricultural product quality safety; while the relevant departments of the people’s government at the
county level or above shall, in accordance with the clear assignment of responsibility, be responsible for the relevant work on agricultural
product quality safety respectively.

Article 4

The agricultural product quality safety administration shall be included into the national economic and social development planning
at the present level by the people’s government at the county level or above, and offered funds of agricultural product quality safety
for carrying out the work of agricultural product quality safety.

Article 5

The local people’s government at the county level or above shall exercise the unified leadership over and coordinate the work of agricultural
product quality safety under its own jurisdiction, take measures to set up and perfect an agricultural product quality safety service
system, and improve the level of agricultural product quality safety.

Article 6

The administrative department of agriculture of the State Council shall set up an agricultural product quality safety risk evaluation
experts’ committee consisting of experts in relevant areas, in order to analyze the risk and evaluate the potential harms which might
affect the agricultural product quality safety.

The administrative department of agriculture of the State Council shall take relevant administrative measures in accordance with the
results of agricultural product quality safety risk evaluation, and inform the relevant departments of the State Council of the results
of agricultural product quality safety risk evaluation in a timely manner.

Article 7

The administrative department of agriculture of the State Council and the administrative department of agriculture of the people’s
government of each province, autonomous region, or municipality directly under the Central Government shall publish relative information
on the situation of agricultural product quality safety under their own jurisdiction.

Article 8

The state guides and popularizes standardized production of agricultural products, encourages and supports the production of high-quality
agricultural products, and prohibits the production and sale of agricultural products which do not meet the agricultural product
quality safety criteria prescribed by the state.

Article 9

The state supports the scientific and technological research on agricultural product quality safety, implements scientific quality
safety administration methods, and popularize advanced and safe production technologies.

Article 10

The people’s government at any level and the relevant departments shall strengthen the propaganda of the knowledge on agricultural
product quality safety, improve the consciousness on agricultural product quality safety of the general public, guide producers or
sellers of agricultural products to intensify quality safety management, and guarantee the safety of agricultural product consumption.

Chapter II Agricultural Product Quality Safety Criteria

Article 11

The state establishes and improves the system of agricultural product quality safety criteria. The agricultural product quality safety
criteria shall be compulsory technical regulations.

The agricultural product quality safety criteria shall be formulated and promulgated in the light of relative laws and administrative
regulations.

Article 12

When formulating the agricultural product quality safety criteria, the relevant departments shall take into full consideration the
results of agricultural product quality safety risk evaluation, and give audience to the opinions of producers, sellers and consumers
of agricultural products, in order to guarantee the consumption safety.

Article 13

The agricultural product quality safety criteria shall be revised in a timely manner based on the scientific and technological development
level and the requirements of agricultural product quality safety.

Article 14

The agricultural product quality safety criteria shall be organized to implement by the administrative department of agriculture together
with other relevant departments.

Chapter III Places of Origin of Agricultural Products

Article 15

The administrative department of agriculture of a local people’s government at the county level or above shall, as per the requirements
of agricultural product quality safety, as well as in accordance with the factors such as variety characters of the agricultural
products, and the poisonous and harmful substances in the atmosphere, soil and water body of the production area, propose areas banned
from production which it considers unsuitable for production of certain agricultural products, and promulgate such areas upon approval
of the people’s government at the same level. The specific measures shall be formulated by the administrative department of agriculture
of the State Council together with the administrative department of environmental protection of the State Council.

The adjustment of areas banned from production of agricultural products shall be made in the light of the procedures prescribed in
the preceding paragraph.

Article 16

The people’s government at the county level or above shall take measures to enhance the construction of the base of agricultural product,
and make improvement in the conditions for production of agricultural products.

The relevant measures shall be taken by the administrative departments of agriculture of the people’s government at the county level
or above to propel the construction of comprehensive demonstration areas for standardized production, demonstration farms, breeding
areas, and areas without prescribed epidemic animal or plant diseases, so as to guarantee the agricultural products quality safety.

Article 17

It is prohibited to produce, fish or collect edible agricultural products or to establish production bases of agricultural products
in the areas where the poisonous and harmful substances are in excess of the prescribed standards.

Article 18

It is prohibited to discharge or dump waste water, waste gas, solid wastes or other poisonous and harmful substances to a place of
origin of agricultural products in the violation of any law or regulation.

The water used for agricultural production and the solid wastes used as fertilizers shall meet the criteria of the state provisions.

Article 19

Such chemical products as chemical fertilizers, pesticides, veterinary drugs and agricultural films, shall be used in a reasonable
way by producers of agricultural products, to prevent such chemical products from polluting the producing areas of agricultural products.

Chapter IV Production of Agricultural Products

Article 20

The requirements on production technologies and operational rules shall be constituted by the administrative department of agriculture
of the State Council and the administrative department of agriculture of the people’s government of each province, autonomous region,
or municipality directly under the Central Government so as to guarantee the agricultural product quality safety. The administrative
department of agriculture of each people’s government at the county level or above shall strengthen its guidance to the production
of agricultural products.

Article 21

For the pesticides, veterinary drugs, feeds and feed additives, fertilizers, and veterinary devices, which might affect the agricultural
product quality safety, a licensing system shall be carried out in the light of relative laws and administrative regulations.

The administrative department of agriculture of the State Council and the administrative department of agriculture of the people’s
government of each province, autonomous region, or municipality directly under the Central Government shall, at a regular time schedule
, make a random inspection on such agricultural input products as pesticides, veterinary drugs, feeds and feed additives, and fertilizers,
which might endanger the agricultural product quality safety, and shall make public the results.

Article 22

The administrative department of agriculture of the people’s government at the county level or above shall enhance to make administration
and guidance on the use of agricultural input products, as well as set up and improve a system for safe use of agricultural input
products.

Article 23

Agricultural research and education institutions, and agricultural technology extension institutions shall strengthen the trainings
on quality safety knowledge and skills for producers of agricultural products.

Article 24

An enterprise engaging in agricultural production or a professional peasant cooperative economic organization shall set up records
on production of agricultural products, and the particulars as follows shall be included:

(1)

The name, source, usage, dosage of the agricultural input product in use, the date of using it, and the date disusing it;

(2)

The information on occurrence, prevention and control of animal epidemic diseases, plant diseases, pests and disasters; and

(3)

The date of harvest, slaughter or fishing.

The records on agricultural production shall be preserved for two years. Any fabrication of records on agricultural production is
prohibited The state encourages other producers engaging in agricultural production to set up records on agricultural production.

Article 25

A producer engaging in agricultural production shall, in the light of the laws, administrative regulations, and provisions of the
administrative department of agriculture of the State Council, make use of the agricultural input products in a reasonable way, strictly
carry out the provisions on safe intervals or withdrawal period for using agricultural input products, so as to stop the agricultural
input products endangering the agricultural product quality safety.

Any agricultural input product prohibited by explicit order of the state shall be forbidden using in the process of producing agricultural
products.

Article 26

An enterprise engaging in agricultural production or a professional peasant cooperative economic organization shall check the agricultural
product quality safety either by itself or by entrusting a test institution. It is prohibited to sell any agricultural product found
from the test to fail to comply with the agricultural product quality safety criteria .

Article 27

A professional peasant cooperative economic organization or an agricultural products industry association shall offer its members
production technology services in a timely manner, set up agricultural product quality safety management system, perfect the agricultural
product quality safety control system, and strengthen self-disciplinary management.

Chapter V Packages and Marks of Agricultural Products

Article 28

Where the agricultural products sold by an enterprise engaging in production of agricultural products, by a professional peasant cooperative
economic organization, by an entity engaging in purchase of agricultural products or by an individual are required in accordance
with relevant provisions to be packed or be attached with marks, they may not be sold until they have been packed or attached with
marks. Such contents as the product name, place of origin, producer, date of production, quality guaranty period, product quality
grade, shall be indicated on the packages or identification, in accordance with the provisions; if any additive is used, the name
of the additive shall also be indicated in accordance with the provisions. The specific measures shall be instituted by the administrative
department of agriculture of the State Council.

Article 29

The materials used in package, preservation, storage and transport of agricultural products, such as preservatives, antiseptics and
additives, etc. shall comply with the relevant compulsory technical norms of the state.

Article 30

The agricultural products belonging to agricultural genetically modified organisms shall be marked in the light of the relative provisions
on the administration of the safety of agricultural genetically modified organisms.

Article 31

The animals and plants required to be quarantined in accordance with the law, as well as their products, shall be attached with quarantine
marks of conformity and quarantine certificates of conformity.

Article 32

The on-sale agricultural products must comply for the agricultural product quality safety criteria, and the producer may submit an
application for using nuisance-free marks on agricultural products. If the quality of the agricultural products complies with the
criteria prescribed by the state for relevant high-quality agricultural products, the producer may submit an application for using
commensurate quality marks on agricultural products.

It is prohibited to imitate the quality marks on agricultural products as prescribed in the preceding paragraph.

Chapter VI Supervision and Inspection

Article 33

An agricultural product under any of the circumstances as follows shall not be sold:

(1)

It contains any pesticide, veterinary drug or other chemical substance prohibited by the state from being used;

(2)

The poisonous and harmful substance such as the remnant of the pesticide, veterinary drug or other chemical substance, or the contained
heavy metal, etc. does not comply with the agricultural product quality safety criteria;

(3)

The contained pathogenic parasites, microorganisms or biological toxin does not comply with the agricultural product quality safety
criteria;

(4)

The material in use such as the preservative, antiseptic or additive, etc. does not comply with the relative compulsory technical
regulations of the state; or

(5)

Other circumstances under which it does not comply with the agricultural product quality safety criteria.

Article 34

The state sets up an agricultural product quality safety monitoring system. The administrative department of agriculture of the people’s
government at the county level or above shall, in accordance with the requirements for guaranteeing the agricultural product quality
safety, make the plan of monitoring the agricultural product quality safety and organize the implementation thereof, and supervise
to make a random inspection on the agricultural products under production or on sale in the market. The administrative department
of agriculture of the State Council or the administrative department of agriculture of the people’s government of each province,
autonomous region, or municipality directly under the Central Government shall make public the results under its jurisdiction.

For a supervisory test on a random inspection, the department concerned shall entrust an agricultural product quality safety test
institution that meets the conditions in Article 35 of the present Law, but shall not charge any fee from the party to be tested,
and the number of the samples shall not exceed the quantity prescribed by the administrative department of agriculture of the State
Council. For the agricultural products which are subject to supervision of the administrative department of agriculture at the higher
level by sampling, the administrative department of agriculture at the lower level shall not make the sampling repetitively.

Article 35

For the sake of an agricultural product quality safety test, the existing qualified test institutions shall be given full consideration
of.

An institution engaging in agricultural product quality safety test must possess commensurate conditions and capacities for test,
and shall be qualified and pass the assessment of the administrative department of agriculture of the people’s government at the
provincial level or above or its authorized department. The specific measures shall be instituted by the administrative department
of agriculture of the State Council.

An agricultural product quality safety test institution shall be found qualified from metrological certification in accordance with
law.

Article 36

Where a producer or seller of agricultural products has any objection to the result of a supervisory test on a random inspection,
it may, within 5 days as of the receipt of the test result, submit an application to the administrative department of agriculture
that organizes the implementation of the agricultural product quality safety supervision on a random inspection or to the administrative
department of agriculture at the higher level for a re-test.

When the speedy test method ascertained by the administrative department of agriculture of the State Council together with the relevant
department is adopted for supervisory test by a random inspection of the agricultural product quality safety by sampling, if the
party to be tested has any objection to the test result, it may, within four hours as of the receipt of the test result, submit an
application for a re-test. The re-test shall not be carried out in a speedy method.

If the testing entity causes any damage to a party concerned as a result of a wrong test result, it shall undertake liabilities for
compensation in the light of the law.

Article 37

An agricultural product wholesale market shall establish or entrust an agricultural product quality safety test institution to test
the quality safety of the inward agricultural products for sale by a random inspection; when found any inconformity with the agricultural
product quality safety criteria, the seller shall be required to immediately stop the sale, and report to the administrative department
of agriculture.

An enterprise engaging in sale of agricultural products shall, for the agricultural products it sells, set up and improve the rules
on inspection and acceptance of purchased goods; any agricultural product that is found from the inspection to fail to comply with
the quality safety criteria shall not be sold.

Article 38

The state encourages entities and individuals to carry out public supervision over the agricultural product quality safety. Any entity
or individual shall have rights to accuse, expose or charge any act violating the present Law. After receipt of relevant accusation,
exposure or charge, the relevant department shall deal with the matter in a timely manner.

Article 39

The administrative department of agriculture of the people’s government at the county level or above may, in its agricultural product
quality safety supervision and inspection, make on-site inspections on the agricultural products under production or on-sale, investigate
and know about the relative information on agricultural product quality safety, consult and photocopy the records and other information
concerning agricultural product quality safety; and shall have the right to seal up or distrain the agricultural products which are
found from test to fail to comply with the agricultural product quality safety criteria.

Article 40

When an agricultural product quality safety accident occurs, the concerned entities and individuals shall take control measures, and
report to the local people’s government at the township level and the administrative department of agriculture of the people’s government
at the county level in a timely manner. The organ receiving the report shall conduct the accident in a timely manner and report to
the people’s government at the higher level and other relative departments. When a major agricultural product quality safety accident
occurs, the administrative department of agriculture shall inform the food and drug administrative department at the same level of
it in a timely manner.

Article 41

In the agricultural product quality safety supervision and administration, if the administrative department of agriculture of a people’s
government at the county level or above finds that an agricultural product is under any of the circumstances listed in Article 33
of the present Law, it shall, on the basis of the requirements of the system for investigation of liabilities concerning agricultural
product quality safety, find out the liable person, and punish him in the light of the law or propose punishment suggestions.

Article 42

An imported agricultural product must be inspected in accordance with the agricultural product quality safety criteria prescribed
by the state. If the relevant agricultural product quality safety criteria have not been formulated, the department concerned shall
formulate them in the light of the law in a timely manner, and may, before finishing formulating such criteria, inspect the imported
agricultural product by referring to the relevant foreign criteria designated by the relevant department of the state.

Chapter VII Legal Liabilities

Article 43

If any agricultural product quality safety supervisory and administrative staff member does not carry out his supervisory duties in
the light of the law, or abuses his powers, he/she shall be given administrative sanctions in the light of the law.

Article 44

If an agricultural product quality safety test institution forges a test result, it shall be ordered to make a correction, its illegal
proceeds shall be confiscated, and in addition, it shall be charged a fine not less than 50,000 Yuan and not more than 100,000 Yuan.
The person-in-charge directly responsible and other persons held directly liable shall be charged a fine not less than 10,000 Yuan
and not more than 50,000 Yuan respectively. If the circumstances are serious, its test qualification shall be revoked. If it causes
any damage, it shall undertake liabilities for compensation in the light of the law.

If an agricultural product quality safety test institution issues an untrue test result, and causes any damage, it shall undertake
liabilities for compensation in the light of the law; if it causes any heavy damage, its test qualification shall be revoked, in
addition.

Article 45

Whoever violates any law or regulation by discharging or dumping waste water, waste gas, solid wastes or other poisonous and harmful
substances to a place of origin of agricultural products shall be penalized in the light of the relative environmental protection
laws and regulations; if it/he causes any damage, it/he shall undertake liabilities for compensation in the light of the law.

Article 46

Whoever violates any law or administrative regulation or any provision of the administrative department of agriculture of the State
Council in using agricultural input products, shall be penalized in the light of the relative laws and administrative regulations.

Article 47

If an enterprise engaging in agricultural production or a professional peasant cooperative economic organization fails to establish
or fails to carry out the provisions to preserve records on agricultural production, or forges records on agricultural production,
it shall be ordered to make a correction within the time limit; if it fails to make a correction within the time limit, it may be
fined not more than 2,000 Yuan.

Article 48

Whoever violates the provisions prescribed in Article 28 of the present Law by failing to follow the provisions to pack or mark the
agricultural products for sale, shall be ordered to make a correction within a time limit; if it/he fails to make a correction within
the time limit, it/he may be fined not more than 2,000 Yuan.

Article 49

If the circumstances under Item (4) of Article 33 of the present Law arises, and the material in use such as the preservative, antiseptic
or additive, etc. does not comply with the relevant compulsory technical regulations of the state, the party concerned shall be ordered
to stop selling the said material, and shall make innocuous treatment of the polluted agricultural products, or supervise the destruction
of the material if no innocuous treatment can be made; at the same time, its/his illegal incomes shall be confiscated, and it/he
shall be fined not less than 2,000 Yuan and not more than 20,000 Yuan, in addition.

Article 50

If an agricultural product sold by an enterprise engaging in agricultural production or a professional peasant cooperative economic
organization is under any of the circumstances listed in Items (1) through (3) or Item (5) of Article 33 of the present Law, the
said entity shall be ordered to stop selling the products, replevy the sold agricultural products, and make innocuous treatment of
or supervise the destruction of the illegally sold agricultural products; at the same time, its illegal incomes shall be confiscated,
and it shall be fined not less than 2,000 Yuan and not more than 20,000 Yuan, in addition.

If an agricultural product sold by an enterprise engaging in sale of agricultural products is under any of the circumstances enumerated
in the preceding paragraph, the said enterprise shall be punished or penalized in the light of the preceding paragraph.

If any on-sale agricultural products in an agricultural product wholesale market are under any of the circumstances listed in Paragraph
1, the agricultural products on illegal sale shall be conducted in the light of Paragraph 1, and the seller of the agricultural products
shall be penalized in the light of Paragraph 1.

If an agricultural product wholesale market violates Paragraph 1 of Article 37 of the present Law, it shall be ordered to make a
correction, and be fined not less than 2,000 Yuan and not more than 20,000 Yuan.

Article 51

Whoever violates Article 32 of the present Law by falsely making use of the quality marks on an agricultural product shall be ordered
to make a correction, its/his illegal proceeds shall be confiscated, and it/he shall be fined not less than 2,000 Yuan and not more
than 20,000 Yuan.

Article 52

The punishments and penalties prescribed in Article 44 , Articles 47 through 49, Paragraphs 1 and 4 of Article 50 , and Article 51
of the present Law shall be decided on by the administrative department of agriculture of the people’s government at the county
level or above; while the punishments and penalties prescribed in Paragraph 2 and Paragraph 3 of Article 50 shall be decided on
by the administrative department for industry and commerce.

If any law has otherwise different provisions on an administrative penalty or the penalizing organ, such provisions shall prevail,
but the same illegal act shall not be penalized for twice or more.

Article 53

If someone violates the present Law and has committed a crime, investigations shall be conducted to determine his/her criminal liabilities
in the light of the law.

Article 54

If anyone producing or selling the agricultural products enumerated in Article 33 of the present Law causes any damage to a consumer,
it shall undertake liabilities for compensation in the light of the law.

If any on-sale agricultural product in an agricultural product wholesale market is under the circumstance prescribed in the preceding
paragraph, the consumer may claim against the agricultural product wholesale market for compensation; if the producer or seller is
held liable, the agricultural product wholesale market shall have the right to make recourse. The consumer concerned may also directly
claim against the producer or seller of the agricultural products for compensation.

Chapter VIII Supplementary Provisions

Article 55

The administration on pig slaughtering shall be carried out in the light of the relevant provisions of the state.

Article 56

The present Law shall go into effect as of November 1, 2006.



 
the Standing Committee of the National People’s Congress
2006-04-29

 







REPLY OF THE CHINA SECURITIES REGULATORY COMMISSION ON REPLACING THE CHIEF REPRESENTATIVE OF BEIJING REPRESENTATIVE OFFICE OF MERRILL LYNCH INTERNATIONAL LIMITED COMPANY

Reply of the China Securities Regulatory Commission on Replacing the Chief Representative of Beijing Representative Office of Merrill
Lynch International Limited Company

Zheng Jian Ji Gou Zi [2006] No. 86

Merrill Lynch International Limited Company,

We have received your application and related materials on replacing the chief representative of Beijing representative office. We
have decided upon examination to approve Xue Haiqing to replace Wang Zhonghe and take the post of the chief representative of your
Beijing Representative Office.

The China Securities Regulatory Commission

May 15, 2006



 
The China Securities Regulatory Commission
2006-05-15

 







SUPPLEMENTARY PROVISIONS TO THE PROVISIONS ON THE ESTABLISHMENT OF INVESTMENT COMPANIES BY FOREIGN INVESTORS

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

No. 3

Supplementary Provisions to the Provisions on the Establishment of Investment Companies by Foreign Investors were adopted at the 5th
executive meeting of the Ministry of Commerce of the People’s Republic of China on May 17, 2006. The supplementary provisions are
hereby promulgated and shall be implemented as of July 1, 2006.

Bo Xilai, Minister of the Ministry of Commerce

May 26, 2006

Supplementary Provisions to the Provisions on the Establishment of Investment Companies by Foreign Investors

With a view to further encouraging transnational corporations to invest in China and perfecting the functions of investment companies,
the supplementary provisions to the Provisions on the Establishment of Investment Companies by Foreign Investors issued by the Ministry
of Commerce in Nov. 17, 2004 (Order of the Ministry of Commerce, [2004] No. 22, hereinafter referred to as the Order No. 22) are
prescribed as follows:

I.

Article 7 of the No. 22 Order shall be modified as: “A foreign investor shall use a convertible currency or the Renminbi profits
it obtains within the territory of China or the lawful Renminbi proceeds it obtains due to share transfer or liquidation, etc. as
the registered capital it contributes to the investment company. A Chinese investor may invest in Renminbi. If a foreign investor
uses its lawful Renminbi proceeds as the registered capital and contributes to the investment company, it shall submit the Certificate
of Verification issued by foreign exchange departments on the Renminbi proceeds within the territory of China and foreign exchange
businesses under the capital account based on the re-investment of other lawful Renminbi proceeds and other relevant evidential documents
and tax payment receipts. At least 30,000,000 US dollars of the investment shall be contributed within two years from the day when
the business license is issued. And the rest of registered capital shall be fully contributed in five years as of the day the business
license is issued.”

II.

An investment company is allowed to undertake the share business outsourcing of companies outside the territory of China.

III.

Article 11 of the No. 22 Order shall be modified as: “The investment company undertaking goods import & export or technology
import & export shall conform to Measures for the Record-keeping and Registration of Foreign Trade Operators; an investment company
can handle the formalities of export refund in accordance with relevant provisions.

Investment companies may sell goods imported abroad by themselves and purchased at home by means of commission agency (with the exception
of auction) or by wholesale. Sales of goods that are special or sold in the way of retailing or franchising shall be done in accordance
with relevant provisions.”

IV.

An investment company shall be allowed to make strategic investment in listed companies in light of relevant provisions, and shall
be considered as stockholders outside the territory of China of joint stock limited companies.

V.

For the purpose of developing the product market, the investment companies satisfying the requirements as prescribed in the Order
No. 22 may sell relevant products on trial before the enterprises they have invested start producing or new products thereof go into
production.

VI.

Article 16 of the Order No. 22 shall be deleted.

VII.

Where a foreign investor contributes (or increases) capitals to an investment company with Renminbi profits it obtains within the
territory of China or the lawful Renminbi proceeds it obtains due to share transfer or liquidation, etc., it may invest the whole
or part of the registered capital to establish enterprises within the territory of China. An enterprise established with the aforesaid
registered capital may apply for handling the formalities of foreign exchange registration of foreign enterprises and confirmation
of registered capital verification to local foreign exchange administrations on the strength of the documents of approval issued
by the examination and approval organ, by which an enterprise is set up with the above registered capital, and the documents of examination
and approval on foreign exchange businesses under the capital account issued by foreign exchange administrations, by which a foreign
investor contributes or increases the capital with the Renminbi proceeds and other lawful Renminbi proceeds, and the documents of
written explanation issued by the investment company that the Renminbi investment is from the aforesaid registered capital. And it
is unnecessary for the enterprise to handle the formalities of getting the document of examination and approval on foreign exchange
businesses under the capital account once more.

Where an investment company of Chinese-foreign equity joint venture establishes an enterprise in China with the registered capital
contributed by the Chinese investor in terms of Renminbi, it is unnecessary to conduct the formalities of foreign exchange registration
of foreign-funded enterprises, foreign exchange registration of foreign investment in the form of foreign exchange upon transfer
of stock rights, confirmation request for capital verification, foreign exchange registration of foreign investment, and other formalities
related to foreign exchange control; it may normally conduct the procedures for confirmation of registered capital verification in
light of relevant provisions on ordinary enterprises within the territory of China.

VIII.

Subparagraph (1) of Paragraph (2) of Article 22 in the Order No. 22 shall be modified as: “The business as prescribed in Articles
10, Article 11 and Article 15 of these Provisions.”

IX.

Upon approval of the Ministry of Commerce, the investment company determined as the regional headquarter is allowed to engage in
services of operative lease and financial lease.

X.

The investment company determined as the regional headquarter is allowed to entrust other domestic company with producing or processing
its products and selling them at home and abroad, and engage in processing trade of selling all products abroad.

XI.

With approval of foreign exchange administrations, the investment company functioning as the financial center or capital management
center and determined as the regional headquarter may have central management on the foreign exchange capital of its associated companies
within the territory of China, and may open an offshore account at banks within the territory of China and have central management
on the foreign exchange capital of its associated companies outside the territory of China and the foreign exchange capital of its
associated companies within the territory of China approved by foreign exchange administrations to lend loans abroad. Businesses
between offshore accounts and other accounts shall be managed as transactional capital.

XII.

An investment company shall report the information on investment and operation of the last year to the Ministry of Commerce for archival
purposes in compliance with the prescribed contents, format and means. And it shall report relevant information to the Ministry of
Commerce in a timely manner. The Ministry of Commerce shall undertake the obligation to keep confidential as to the information reported
by investment companies.

XIII.

Where an investment company fails to report the relevant information as requested in Article 12 , the Ministry of Commerce shall
handle it in accordance with the relevant provisions.

XIV.

These Provisions shall come into force as of July 1, 2006. In case any discrepancy exists between the Order No. 22 and these Provisions,
the latter shall prevail.



 
Ministry of Commerce
2006-05-26

 







NOTICE OF THE SUPREME PEOPLE’S COURT ON THE THIRD CIVIL DIVISION OF THIS COURT SHALL BE OFFICIALLY ADDRESSED AS “INTELLECTUAL PROPERTY DIVISION”

Notice of the Supreme People’s Court on the Third Civil Division of This Court shall be Officially Addressed as “Intellectual Property
Division”

Fa Fa [2006] No. 14

The higher people’s Courts of all provinces, autonomous regions, and municipalities directly under the Central Government, the military
courts of the P LA, the Production and Construction Army Corps Branch of the Higher People’s Court of Xinjiang Uygur Autonomous Region:

The Third Civil Division of the Supreme People’s Court shall be officially addressed as “Intellectual Property Division of the Supreme
People’s Court”, according to the requirements of adjudicative work and upon the approval of the General Office of the Central Organization
& Staffing Committee. The people’s courts at various local levels which have established an intellectual property adjudicative
organ shall regard it as reference.

The Supreme People’s Court

June 5, 2006



 
Supreme People’s Court
2006-06-05

 







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...